NH Solar Update April 2016

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Elfreda Simmons
5 years ago
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1 NH Solar Update April 2016 Installation Summary The Net Metering Debate Pending Legislation NHPUC Docket preview 1

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4 Solar Installations in ESNH Territory (MW AC) 4

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6 Solar Projects in the Queue 6

7 Solar across the Eversource system (12/31/15) CL&P NSTAR PSNH WMECO Total

8 Solar Subsidies in NH Typical Residential Customer (7,500 kwh per year) needs 6 kw PV 6 kw PV Installed Cost = $21,000 ($3.50 per Watt) True Value of Power = ISO-NE Wholesale (6 cents/kwh) = $450/yr Payback Period (no subsidy) = 47 years 30% Federal ITC = 32 years $2500 NHPUC rebate = 27 years REC Revenue ($375/yr) = 15 years Net Metering ($788/yr) = 7 years 8

9 The Net Metering Debate 9

10 The Net Metering Debate Net kwh Bi-Directional Meter Purchases Purchases Sales 10

11 The Net Metering Debate 7,500 kwh Customer that nets to zero kwh over the year will Receive bills that total $153 ($12.75 customer charge per month) Avoid paying: $750 in Energy Service (ISO-NE value = $450) $312 in Distribution charges $147 in Transmission charges $25 in Stranded Cost Recovery and System Benefits charges The net subsidy ($784) or lost revenues must be recovered by raising rates 11

12 Legislative Activity HB-1116 will increase cap from 50MW to 100 MW Passed Senate (19-4 vote) on April 7, 2016 Extra 50MW to be split 80% Small, 20% Large projects Eversource share: 31 MW (Small), 7.8 MW (Large) NHPUC given directive to create replacement tariffs within 10 months 12

13 Directions to the NHPUC The commission shall consider: costs and benefits of customer-generator facilities rate effects on all customers alternative rate structures, including time-based tariffs limitations on the amount of generating capacity eligible for such tariffs the size of facilities eligible to receive such tariffs timely recovery of lost revenue by the utility using an automatic rate adjustment mechanism distribution utilities' administrative processes required to implement such tariffs 13

14 Utility Cost of Service vs Value of Solar Utility Perspective Solar should be valued like any other source of generation Solar customers still require the delivery system, but do not pay their fair share Cross subsidy must be eliminated or reduced by alternative rate structures (e.g. higher customer charge, backup demand charge, or minimum bill) The Cost to Serve a typical residential customers is not reduced by the addition of solar High penetration of solar on the distribution system creates additional costs 14

15 Utility Cost of Service vs Value of Solar Solar Industry Position Solar provides customers with choice Jobs, Jobs, Jobs Zero emission source of power Utility Rebuttal At the expense of non-solar customers; non-sustainable rate design Higher electric rates will reduce economic growth Already reflected in REC compensation PV can eliminate or defer T & D capital PV can eliminate Generation Capacity costs Requires the perfect project location or collaborative execution ISO-NE values solar capacity at a small fraction of the nameplate (30%) PV reduces line losses OK, maybe worth 2%- 3% Voltage control and other services Very difficult to implement; net increase in utility revenue requirements 15

SOLAR DISTRIBUTED GENERATION PROGRAM UPDATE

SOLAR DISTRIBUTED GENERATION PROGRAM UPDATE PRESENTED BY: CRIS EUGSTER ACTION: APPROVAL DATE: MAY 19, 2014 EXECUTIVE SUMMARY CPS Energy proposes to significantly expand its Solar Distributed Generation