Avoided cost utilized in solar pricing after decades of impacting conservation

This summer, Minnesota became the first state in the nation to adopt a value of solar (VOS) tariff. This methodology, in contrast with net metering for solar generation, has a 25-year bill credit schedule rather than simply mirroring the retail rate as it fluctuates over time. While factoring in avoided cost may be a new idea for solar, factoring in the value of avoided cost has been used to analyze energy efficiency programs for over 40 years.