Karl Rábago could be called the grandfather of the value-of-solar tariff, but the concept is so new that “young parent” might be a more apt moniker.
The basic idea is that instead of paying customers with solar panels the retail electricity rate for their surplus power, utilities should pay a price that reflects the true value of solar to the grid. That could include added value for reducing congestion or generating during peak hours when power is most expensive.
Rábago helped develop the first value-of-solar tariff during his tenure as a municipal utility executive in Austin, Texas, which implemented the scheme just last year. Today, as an independent consultant, he travels around the country promoting and explaining the concept to others considering it.