Everything About Solar A Strategic Training Session for Local Governments Part II. October 6th, 2014

Transcription

1 Everything About Solar A Strategic Training Session for Local Governments Part II October 6th, 2014

2 Agenda 09:30 09:45 09:45 10:00 10:00 10:30 10:30 11:15 11:15 12:15 12:15 1:00 1:00 1:20 1:20 2:00 2:00 3:00 Pu2ng Solar Energy on the Local Policy Agenda State of the Local Solar Market Federal, State, and UClity Policy Drivers Solar in Development RegulaCons (then Break) Local Speaker on Permi2ng and Q&A Lunch Break Installing Solar on Municipal FaciliCes Solar Financing Local Speakers on Solar Financing and Q&A

3 Solar Market: Trends Stage 1 Stage 2 Stage 3 Cost of Electricity Solar Price Retail Price Wholesale Price Today Time Source: Solar Electric Power Association

4 Solar Market: Trends Stage 1 Stage 2 Cost of Electricity A policy driven market designed to Solar mitigate Price Retail Price costs and increase the value of solar production Wholesale Price Today Time Source: Solar Electric Power Association

5 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

6 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

7 Investment Tax Credit Type: Tax Credit Eligibility: For- Profit OrganizaCon Value: 30% of the installacon cost Availability: Through 2016

8 Accelerated DepreciaCon 100% Modified Accelerated Cost-Recovery System (MACRS) 80% Project Value 60% 40% 20% Straight Line MACRS 0% Year

9 Qualified Energy Conservation Bond Qualified Energy Conservation Bond QECB QECB $ US Treasury Local Gov Project $ Bond Holders

10 Qualified Energy Conservation Bond + 3.7% + 2.3% $ US Treasury Local Gov Project QECB Bond Holders

11 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

12 What is your community s uclity? Select all that apply 80% A. Southern California Edison B. LADWP C. Other 8% 12% Southern)California)Edison LADWP Other

13 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

14 Renewable Portfolio Standard Retail Electricity Sales Renewable Energy Any electricity source

15 Renewable Portfolio Standard Retail Electricity Sales Solar carve-out Renewable Energy Any electricity source

16 Renewable Portfolio Standard / August states,+ Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals).

17 RPS Impacts: Solar Deployment RPS and Solar/DG Status of Top Ten Solar States by CumulaJve Installed Capacity (as of Q4 2013) Ranks State RPS? Solar/DG Provision? 1 California Y N 2 Arizona Y Y 3 New Jersey Y Y 4 North Carolina Y Y 5 Nevada Y Y 6 Massachuseas Y Y 7 Hawaii Y N 8 Colorado Y Y 9 New York Y Y 10 New Mexico Y Y Source: DSIRE Solar ( ); Solar Energy Industries Association/ GTM Research Solar Market Insight 2013 Year-in-Review

18 RPS in California CA RPS 33% Category 1 33% renewables by % of this to be from directly delivered electricity (Category 1) No solar carve- out Applies to both private and public uclices Source: DSIRE

19 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

20 Feed- in Tariff Feed- in Tariff Customer e - $ REC $ $ $ UJlity

21 Feed- in Tariff Feed- in Tariff Customer Fixed price payment Long term contract Guaranteed purchase Above- market price UJlity

22 Feed-in Tariff River Falls, WI Sacramento, CA Long Island Power Authority, NY Los Angeles, CA States with Feed- in Tariffs San Antonio, TX AusJn, TX Gainesville, FL UClity Feed- in Tariffs MunicipaliCes with Feed- in Tariffs Source: Meister Consultants Group

23 Feed-in Tariff in California IOU Renewable Market Adjusting Tariff SCE to procure 126 MW through FiT, 43 MW of which is solar. Released in bimonthly increments, 31 MW of solar still available Maximum project size of 3 MW Price adjusts to market response, now at $0.081/kWh

24 Feed-in Tariff in California LADWP Feed-in Tariff Targeting 100 MW of renewable capacity, 20 MW released every 6 months with declining price Projects between 30 kw and 3 MW eligible, 20 MW reserved for projects under 150 kw Currently on 4 th of 5 stages with a price of $0.14/MWh

25 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

26 Net Metering Net metering allows customers to export power to the grid during Cmes of excess generacon, and receive credits that can be applied to later electricity usage.

27 Net Metering ConsumpCon and GeneraCon in a Solar Home 1.5 kwh/hour AM 4 AM 8 AM 12 PM 4 PM 8 PM Household ConsumpCon Solar GeneraCon

28 Net Metering: Market Share More than 93% of distributed PV Installations are net-metered Source: IREC (

29 Net Metering Source: DSIRE (July 2013) 43 states,+ Washington DC and 4 territories,have Net Metering Policies

30 Net Metering: Resources Resource Freeing the Grid Provides a report card for state policy on net metering and interconnection

31 Net Metering: California A A B A A A A A A 2014 Net Excess Credit Value Retail Rate Settled Annually (excess paid at avoided cost) Capacity Limit 1 MW 5% of aggregate peak demand ü Applicable Utilities All Utilities (some differences for LADWP) Meter Aggregation Allowed Source: Freeing the Grid

32 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

33 Interconnection Standardized interconnection rules require utilities to provide a fair and transparent pathway for customer-generators and other developers of distributed energy resources to interconnect with the utility s grid.

34 Interconnection: California A C B B B B A A A 2014 Applicable Technologies All DG technologies Applicable Utilities IOUs Capacity Limit None ü Bonus Electronic Application Standardized Process Source: Freeing the Grid

35 Interconnection: California Two InterconnecJon JurisdicJons Regulator CPUC FERC Tariff Rule 21 WDAT Projects NEM projects Non-Export facilities IOU PPA Projects Projects selling on wholesale market

36 Interconnection: California Small Project Simplified InterconnecJon Available for NEM projects under 10 KW Rule 21 Fast- Track EvaluaJon Process Available for non- export and NEM projects PPA projects < 3 MW as well Only 38% of SCE PPA projects pass without need for detailed study Fast- track interconneccon for qualified projects $800 base fee, more fees if supplemental review is required

37 Net Metering & Interconnection Resource Southern California Rooftop Solar Challenge Best Practices for Interconnection Standards Overview of Net Metering and Interconnection practices in Southern California.

38 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

39 Solar Access Eden Roc Hotel Fontainebleau Hotel A landowner does not have any legal right to the free flow of light and air across the adjoining land of his neighbor. Source: Google Earth

40 Solar Access Laws: Solar Access 1. Increase the likelihood that properces will receive sunlight 2. Protect the rights of property owners to install solar 3. Reduce the risk that systems will be shaded amer installacon

41 Solar Access DC Solar Easements Provision Solar Rights Provision Solar Easements and Solar Rights Provisions Local opcon to create solar rights provision U.S. Virgin Islands Source: Database of State Incentives for Renewables & Efficiency (

42 Solar Access in California Solar Rights Act MunicipaliCes and HOAs can t prohibit solar AestheCc restriccons not causing unreasonable cost increases are allowed Residents can negocate Solar Easements Solar Shade Control Act New trees can t grow to shade exiscng solar systems

43 Solar Access Resource Solar America Board for Codes & Standards A comprehensive review of solar access law in the US Suggested standards for a model ordinance

44 Solar & Homeowner Associations Resource A Beautiful Day in the Neighborhood Resources for community associations in considering solar in their neighborhoods.

45 A Policy Driven Market Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Interconnection Feed-in Tariff Solar Access Net Metering Tax Exemptions & Rebates

46 California Solar Tax Exemptions Property Tax Exclusion Added value of solar excluded from property tax 100% of value of dedicated solar systems, 75% of value of dual systems Expires at the end of 2016 ParJal Sales Tax ExempJon for Agricultural Solar Systems Extension of parcal exempcon for farm equipment and machinery

47 Direct Rebates California Solar IniJaJve Has offered direct rebates for solar since 2006 SCE reached its program limit for residencal solar in MW scll available for non- residencal projects, with rebates of: $0.20/W for commercial customers $0.70/W for governmental/non- profit customers

48 Direct Rebates LADWP Solar IncenJve Program Modeled amer California Solar IniCaCve LADWP reached its non- residencal funding limit, $28 million scll available for residencal projects Current incencve is $0.40/W, will decline to $0.30/W soon

49 Solaroutreach.org Solar-