What is the difference between utility-scale solar and distributed-generation solar?

This blog describes the differences between utility-scale solar and distributed-generation solar. A utility-scale solar project sells the power directly into the electric grid. The leading solar PV consultants in India also name it as being ‘in front of the meter’. This is the opposite of distributed generation, which is termed ‘behind the meter’. Distributed generation is paired with the energy load of a facility that supplies the facility directly with power.

The distributed solar system can be installed on the house's rooftop. Also, the surplus energy produced can be sold to other companies. But this is not so in the case of utility solar. Community solar is a good example of utility-scale solar services. It connects ‘in front of the meter’ and has a large system than a distributed generation.

Another major difference is that the electricity generated from utility-scale generation is distributed among wholesale buyers, whereas distributed generations serve end customers.

Market design is another key factor in defining utility-scale solar services. Regulated and deregulated markets are two types of wholesale electricity markets.

Utilities own and operate all the generators, transmission lines, and distribution networks in regulated markets. Often, utilities buy power directly from renewable energy projects. Here the utilities, and Public Service Commission, set the parameters for utility-scale and non-utility-scale solar.

Deregulated power markets are more competitive. Here power is traded like any other commodity. The electricity grids are interconnected and allow energy trading across borders.

Utility-scale solar services require contracts to get the necessary financing for construction. These services should enter into a renewable energy contract with utility, commercial, industrial, and institutional customers.

Most of the contracts are in the form of Virtual Power Purchase Agreements (VPPA). Here The energy purchaser enters into a contract for differences based on the project's solar energy. Then the energy is sold at market price.

According to leading solar PV consultants in India, Retail Power Purchase Agreement (RPPA) is another contract suitable for deregulated markets. Here the buyers can choose their energy plans from the retailers. And can enter into an agreement with their retail supplier.

Owing to declining solar prices and the spread of additional storage, utility-scale solar services are predicted to see an upward graph in the coming years.

Ref

https://www.cleanenergymba.com/post/utility-scale-vs-distributed-generation-where-should-you-focus

https://www.urbangridsolar.com/what-is-utility-scale-solar-an-overview/

https://www.mahindrasusten.com/blog/what-is-a-distributed-solar-power-generation/

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