  Ongoing reductions in the cost of solar photovoltaic (PV) systems are driving
their increased installations by residential households. Various incentive
programs such as feed-in tariff, net metering, net purchase and sale that allow
the prosumers to sell their generated electricity to the grid are also powering
this trend. In this paper, we investigate sharing of PV systems among a
community of households, who can also benefit further by pooling their
production. Using cooperative game theory, we find conditions under which such
sharing decreases their net total cost. We also develop allocation rules such
that the joint net electricity consumption cost is allocated to the
participants. These cost allocations are based on the cost causation principle.
The allocations also satisfy the standalone cost principle and promote PV solar
aggregation. We also perform a comparative analytical study on the benefit of
sharing under the mechanisms favorable for sharing, namely net metering, and
net purchase and sale. The results are illustrated in a case study using real
consumption data from a residential community in Austin, Texas.
