Freeing The Grid Resource for better solar policy
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1 Freeing The Grid Resource for better solar policy
2 Who is Vote Solar» Founded in 2001» Non-Profit Grassroots Organization» Focused on Bringing Solar to Scale 2
3 Perspective of Change 3» 2014 a year in review With a staff of 16» 21 State Level Campaigns» 31 Regulatory Interventions» 10 Legislative Campaigns» 11 Rate Cases» Members delivered 108K Pro Solar Letters» 2,575 Participants in Group Purchase
4 Vote Solar was founded on a simple strategy: we build scale by making solar cheaper and more accessible. And it s working. 4
5 FreeingTheGrid.org» Trusted Resource» State Scoring» Net Metering» Interconnection 5
6 Powered By 6
7 Recognized by Freeing the Grid s grading methodology was also adopted for use in the U.S. Department of Energy s SunShot Initiative, which aims to reduce the cost of going solar by 75 percent before the end of the decade.
8 8
9 Purpose for Scoring» Provides a trusted way to Identify Changes in growing solar markets 9» As states consider adopting or revising programs, these models provide an easy way to emulate effective policies and avoid wasteful mistakes.
10 Efficiency & Waste» Nearly 64% of the cost of residential solar is comprised of soft costs, defined as a project s non hardware costs 1 0» Reduce Permit Fee» Streamline Permit Related» Lower Customer Acquisition» Systemize Installation Labor» Eliminate Unnecessary Hardware
11 Near Term Pricing 1 1» Reported pricing for PV system installations completed in 2013, based in part on data reported to PV incentive programs:» Residential and small commercial ( 10 kw) was $4.69 /W (median)» Large commercial (>100 kw) was $3.89/W (median)» Utility-scale ( 5 MW, ground-mounted) was $3.00/W (capacity weighted average).
12 Opportunity for Impact» A 25% Reduction in Overall Soft Costs» Residential - $3.50/Watt» Large Commercial - $2.91/Watt» Utility Scale $2.25/watt» Without Incentives 1 2
13 Potential Impact» Residential 8kW system» Financed via 30yr 4.99%» Eligible for 30% Tax Credit» Monthly Payment of $105 / $81 Int Only» $0.12/kWh - $0.09/kWh 1 3
14 NEM Guiding Principals» Right to self-generate and connect to the grid» Right to reduce electricity use» Properly valuing solar electricity, and adequately compensating solar customers» Non-discriminatory practices within cost of service recovery» Statewide application» Transparency, access to data 1 4
15 Customers Understand and 1 Trust Net Metering 5
16 Florida s NEM Score» Previous A Grade» Slight Drop» Still Very Good» Tie for 25th 1 6
17 Why the Drop?» Detailed provisions exist only in the regulations established by the Florida Public Service Commission (PSC), as opposed to within the statute» Deduction (-1) for treatment of retail PPAs FL is 1 of 5 States to specifically disallow PPA s from NEM
18 How to Improve» Extend standard NEM Rules to All Utilities Statewide» Allow customers financing through PPA to Net Meter» Provide specific protection against discriminatory charges for Net Metered customers» Meter Aggregation» Virtual Net Metering and Community Solar
19 Best Practices 1 9» Reasonable, punctual procedural timelines should be adopted and enforced» A standard form agreement» Clear, transparent technical screens should be established» Utilities should not be permitted to require an external disconnect switch for smaller, inverter-based systems» Utilities should not be permitted to require customers to purchase additional liability insurance» Interconnection to area networks should generally be permitted, with reasonable limitations where appropriate» There should be a dispute resolution process
20 Best Practices» All utilities (including municipal utilities and electric cooperatives) should be subject to the state policy.» All customer classes should be eligible.» three or four separate levels of review» no individual system capacity limit» Application costs should be kept to a minimum, especially for smaller systems. 2 0
21 Emerging Best Practices» Many Interconnection improvements incorporate high adoption rates Florida (other than Gainesville) has not seen adoption rates like other states. NJ, CA, HI & AZ 2 1
22 Interconnection Score 2 2» Improved in 2009 After improvements to statewide rules» Improved in 2010 As more principals implemented» Stagnate and Dropping since
23 Areas for Improvement 2 3» Increase covered capacity from 2 MW to 20 MW» Remove requirements for redundant external disconnect switch on larger systems» Remove requirements for additional insurance on larger systems» Provide clear standards or definitions for municipal utilities and electric cooperatives (PSC does not rule over them)
24 Apply SGIP & LGIP 2 4» Statewide Adoption of FERC Small Generator Interconnection Procedures Statewide Adoption of FERC Large Generator Interconnection Procedures
25 Continue to Evolve» Seek out resources to evolve standards regardless of demand» Stay ahead of the curve» FreeingTheGrid.org is a resource to help regulators make decisions. 2 5
26 Resources» FREEINGTHEGRID.ORG» MODEL NET METERING RULES» MODEL INTERCONNECTION STANDARDS» CONNECTING TO THE GRID GUIDE» CALCULATING THE BENEFITS AND COSTS OF DISTRIBUTED SOLAR GENERATION 2 6
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