SE Engr. Solar Policy, Economics, and Sustainability 4

Question 1

How does a California NEM 3.0 (Net Billing Tariff) customer's export compensation compare to NEM 2.0?

Accepted Answer

Exports are credited at lower avoided-cost-based rates instead of near-retail rates

Answer

The Net Billing Tariff pays exports based on the Avoided Cost Calculator, which is well below retail rates on average.

Question 2

Under the NEM 3.0 Net Billing Tariff, which addition most improves the economics of a residential system?

Accepted Answer

Battery storage to self-consume solar and shift exports to high-value hours

Answer

Low export values make self-consumption and evening dispatch from storage more valuable.

Question 3

A commercial customer has high monthly demand charges driven by a short 4 PM peak. Why might PV alone fail to reduce those charges reliably?

Accepted Answer

Clouds or late-afternoon sun angles can leave the peak interval with little PV output

Answer

Demand charges are set by the highest interval, so one cloudy interval at peak can wipe out the savings without storage.

Question 4

A PV system costs $24,000 after incentives and saves $3,000 per year. Ignoring degradation and rate escalation, what is the simple payback?

Accepted Answer

8 years

Answer

$24,000 divided by $3,000 per year is 8 years.

Question 5

Which effect makes LCOE higher when everything else is held constant?

Accepted Answer

A higher discount rate

Answer

A higher discount rate raises the cost of capital and shrinks the present value of future energy, so LCOE rises.

SE Engr. - Solar Energy Engineering Certification Practice Test