Solar Powering Your Community Addressing Soft Costs and Barriers

Transcription

1 Solar Powering Your Community Addressing Soft Costs and Barriers

2 Jim Kennerly North Carolina Solar Center Alex Winn The Solar Foundation (919) (202)

3 About the SunShot Solar Outreach Partnership The SunShot Solar Outreach Partnership (SolarOPs) is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the US.

4 About the SunShot Solar Outreach Partnership Increase installed capacity of solar electricity in U.S. communities Streamline and standardize permitting and interconnection processes Improve planning and zoning codes/regulations for solar electric technologies Increase access to solar financing options

5 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

6 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

7 About the SunShot Solar Outreach Partnership Resource Solar Powering Your Community Guide A comprehensive resource to assist local governments and stakeholders in building local solar markets.

8 About the SunShot Solar Outreach Partnership Resource Sunshot Resource Center Case Studies Fact Sheets How-To Guides Model Ordinances Technical Reports Sample Government Docs www4.eere.energy.gov/solar/sunshot/resource_center

9 About the SunShot Solar Outreach Partnership Technical Support Ask an Expert Live Web Forums Ask an Expert Web Portal Peer Exchange Facilitation In-Depth Consultations Customized Trainings

10 Poll Who s in the room?

11 Poll What is your experience with solar?

12 Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 12

13 Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 13

14 Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 14

15 Some Basic Terminology Cell Panel / Module

16 Some Basic Terminology Array

17 Some Basic Terminology e - e - e - Capacity / Power kilowatt (kw) Production Kilowatt-hour (kwh)

18 Some Basic Terminology Residence 5 kw Factory 1 MW+ Office kw Utility 2 MW+

19 Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 19

20 Oklahoma Regional Solar Market Installed Capacity of Solar PV Kilowatts Oklahoma Kansas Arkansas Texas Colorado Source: IREC

21 Installed Capacity Top 5 Countries Solar Operating Capacity (2012) Germany 32% Germany Italy USA China Japan Rest of World

22 Installed Capacity Total installed solar capacity in the US 7.7 GW Capacity installed in Germany in 2012 alone 7.6 GW Source: (1) GTM Research/ Solar Energy Industries Association. U.S. Solar Market Insight Report 2012 Year-in-Review; (2) PDFs_/ _hgp_e_ppt_2012_fin_bf.pdf

23 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $ per Watt $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Total Installed Cost $- US Solar Cost German Solar Cost Source: NREL ( ( (

24 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $6.00 $ per Watt $5.00 $4.00 $3.00 $2.00 Non-Hardware Cost Hardware Cost $1.00 $- US Solar Cost German Solar Cost Source: NREL ( ( (

25 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $6.00 $ per Watt $5.00 $4.00 $3.00 $2.00 Non-Hardware Cost Hardware Cost $1.00 $- US Solar Cost German Solar Cost Source: NREL ( ( (

26 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $6.00 $5.00 $ per Watt $4.00 $3.00 Profits, Taxes, & Overhead Column1 Non-Hardware Cost Hardware Cost $2.00 $1.00 $- US Solar Cost German Solar Cost Source: NREL ( ( (

27 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $1.60 Solar Soft Costs $ per Watt $6.00 $5.00 $4.00 $3.00 $ per Watt $1.40 $1.20 $1.00 $0.80 $0.60 Other Paperwork Permitting Column1 Non-Hardware Cost Installation Labor Hardware Cost $2.00 $1.00 $0.40 $0.20 Customer Acquisition $- US Solar Cost $0.00 German Solar Cost Source: NREL ( ( (

28 Workshop Goal Enable local governments to replicate successful solar practices and expand local adoption of solar energy

29 Explore benefits and Overcome barriers

30 Activity: Identifying Benefits What is the greatest benefit solar can bring to your community? [Blue Card] Right Now During Session After Break Write answer on card Compile results Group discussion

31 Activity: Addressing Barriers What is the greatest barrier to solar adoption in your community? [Green Card] Right Now During Session After Break Write answer on card Compile results Group discussion

32 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

33 Solar Market: Trends $12 US Average Installed Cost for Behind-the-Meter PV $10 Cost per Watt $8 $6 $4 $2 $ Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from (LBNL), SEIA/GTM Research Solar Market Insight 2012 Year-in-Review. 33

34 Solar Market: Trends $12 US Average Installed Cost for Behind-the-Meter PV $10 Cost per Watt $8 $6 $4 $2 $0 52% drop in price Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from (LBNL), SEIA/GTM Research Solar Market Insight 2012 Year-in-Review. 34

35 Solar Market: Trends Stage 1 Stage 2 Stage 3 Solar PV: $.12 - $0.24 per kwh Cost of Electricity Utility: $ $.094 Solar Price Retail Price Wholesale Price Time Source: Solar Electric Power Association

36 Solar Market: Stages Stage 1 Stage 2 Stage 3 Cost of Electricity A policy driven market designed to mitigate Solar Price Retail Price costs and increase the value of solar production Wholesale Price Time Source: Solar Electric Power Association

37 A Policy Driven Market State Local Utility Regulation Planning Solar Access Zoning Community-Based Energy Development Permitting

38 A Policy Driven Market State Local Utility Regulation Planning Solar Access Community-Based Energy Development Zoning Permitting

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

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

41 Renewable Portfolio Standard Fossil Fuel $ e - Two revenue streams e$ - $ REC Utility Renewable Energy

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

43 Renewable Portfolio Standard Voluntary goal of 15% from renewable sources by 2015

44 RPS Impacts: Solar Deployment RPS and Solar/DG Status of Top Ten Solar States by Cumulative Installed Capacity (as of Q4 2012) Ranks State RPS? Solar/DG Provision? 1 California Y N 2 Arizona Y Y 3 New Jersey Y Y 4 Nevada Y Y 5 Colorado Y Y 6 North Carolina Y Y 7 Massachusetts Y Y 8 Pennsylvania Y Y 9 Hawaii Y N 10 New Mexico Y Y Source: DSIRE Solar ( ); Solar Energy Industries Association/ GTM Research Solar Market Insight 2012 Year-in-Review

45 RPS Impacts: Retail Rates Source: Lawrence Berkeley National Laboratory. Renewable Portfolio Standards in the United States: A Status Update. December

46 Net Metering Net metering allows customers to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage

47 Net Metering: Overview Morning Customer Utility

48 Net Metering: Overview Afternoon Excess Credits Customer Utility

49 Net Metering: Overview Night Customer Utility Solar covers 100% of the customer s load, even at night!

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

51 Net Metering: State Policies / August DC 43 states, + Washington DC & 4 territories,have adopted a net metering policy. Note: Numbers indicate individual system capacity limit in kilowatts. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

52 Net Metering in Oklahoma: Rules/Applicability Applies to all investor-owned utilities and some electric cooperatives However Municipalities are not required to offer net metering. Net metering is only required for systems under 100 kw or 25,000 kwh/year, whichever is less (although OG&E allows for up to 300 kw). Customers may ask for their utility to purchase their net excess generation, but utilities are not required to purchase it. Purchase is only permitted at the avoided cost (wholesale) rate, not at the retail rate. Source: Database of State Incentives for Renewables and Efficiency (DSIRE). Available at:

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

54 Net Metering: Oklahoma Oklahoma Net Metering Policy: Credit Value Avoided Cost Rate System Capacity Limit 100 kw Credit Rollover Varies by Utility Aggregate Limit None Source: Freeing the Grid

55 Net Metering: Oklahoma Freeing the Grid Recommendations: Credit Value Avoided Retail Cost Rate System Capacity Limit 100 kw No Limit $ Credit Rollover Varies by Utility Month-to-Month REC Ownership Not Addressed Customer Ownership Source: Freeing the Grid

56 Net Metering: Virtual School Town Hall Landfill Police Station No direct connection necessary

57 Net Metering: Meter Aggregation DC Aggregation of some from authorized by state But It s complicated Ownership requirements Contiguous vs. non-contiguous properties Multiple customers Multiple generators Modified system/aggregate system size limits Rollover rates Distance limitations Number of accounts How to address accounts on different tariffs

58 Net Metering: Resources Resource Interstate Renewable Energy Council IREC developed its model rules in an effort to capture best practices in state net metering policies.

59 A Policy Driven Market State Local Utility Regulation Planning Zoning Solar Access Permitting

60 Solar Access Solar Access Laws: 1. Increase the likelihood that properties will receive sunlight 2. Protect the rights of property owners to install solar 3. Reduce the risk that systems will be shaded after installation

61 Fontainebleau V. Eden Roc (1959) 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

62 Solar Access DC Solar Easements Provision Solar Rights Provision Solar Easements and Solar Rights Provisions U.S. Virgin Islands Local option to create solar rights provision Source: DSIRE

63 Solar Access Resource Solar ABCs A comprehensive review of solar access law in the US Suggested standards for a model ordinance

64 A Policy Driven Market State Local Utility Regulation Planning Zoning Solar Access Permitting

65 A Policy Driven Market State Local Utility Regulation Planning Solar Access Community-Based Energy Development Zoning Permitting

66 Q & A

67 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

68 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

69 Activity: Identifying Benefits What is the greatest benefit solar can bring to your community? [Blue Card] Right Now During Session After Break Write answer on card Compile results Group discussion

70

71 Benefits of Solar Energy Local economy growth Local jobs Energy independence Stabilizes price volatility Valuable to utilities Smart investment 71

72 Benefit: Economic Growth $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,000,000,000 ~40% CAGR $6,000,000,000 $4,000,000,000 $2,000,000,000 $ Source: SEIA/GTM Research 2009/2010/2011/2012 Year in Review Report 72

73 Benefit: Job Growth 140,000 Solar Job Growth in the US 120, ,000 80,000 60,000 40,000 20,000 SEIA Estimates The Solar Foundation Source: SEIA Estimates ( ), The Solar Foundation s National Solar Jobs Census 2010 (2010), The Solar Foundation s National Solar Jobs Census 2012 ( ). 73

74 Benefit: Stabilize Energy Prices $/MWh $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 Boston Area Average Wholesale Price Source: NEPOOL 74

75 Benefits: Valuable to Utilities Avoided Energy Purchases Avoided T&D Line Losses Avoided Capacity Purchases Avoided T&D Investments Fossil Fuel Price Impacts Backup Power 75

76 Benefits: Valuable to Utilities 30 Value to the utility is 10 to 25 cents beyond the value of the electricity Fuel Price Mitigation Distribution Capacity Value Distribution Energy Value Transmission Capacity Value Transmission Energy Value 0 Low High Source: 76

77 Benefit: Smart Investment for Homes From NREL: Solar homes sold 20% faster and for 17% more than the equivalent non-solar homes in surveyed California subdivisions Source: 77

78 Benefit: Smart Investment for Homes From SunRun: 3 kw = $ 16,500 added sale premium 6 kw = $ 33,000 added sale premium 9 kw = $ 49,500 added sale premium Source: Tracking the Sun IV, SunRun 78

79 Benefit: Smart Investment for Business 79

80 Benefit: Smart Investment for Business Top 20 Companies by Solar Capacity Crayola Hartz Mountain ProLogis Snyder's Dow Jones and Co White Rose Foods FedEx General Motors Toys 'R' Us Bed Bath and Beyond Walgreen's Campbell's Soup Staples Johnson and Johnson McGraw Hill Macy's Ikea Kohl's Costco Walmart $47.3 million worth of electricity annually Solar Capacity (MW) Source: Solar Energy Industries Association

81 Benefit: Smart Investment for Government Source: Borrego Solar 81

82 Activity: Addressing Barriers What is the greatest barrier to solar adoption in your community? [Green Card] Right Now During Session After Break Write answer on card Compile results Group discussion

83

84 Fact: Solar works across the US Source: National Renewable Energy Laboratory 84

85 Fact: Solar is a ubiquitous resource 25,000 20,000 Resource Availability Available annually Terawatt Years 15,000 10,000 5,000 0 Solar Coal Uranium Petrolium Natural Gas Source: Perez & Perez A fundamental look at energy reserves for the planet.

86 Fact: Solar is cost competitive $12 US Average Installed Cost for Behind-the-Meter PV $10 Cost per Watt $8 $6 $4 $2 $ Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from (LBNL), SEIA/GTM Research Solar Market Insight 2012 Year-in-Review. 86

87 Fact: Solar is cost competitive $12 US Average Installed Cost for Behind-the-Meter PV $10 Cost per Watt $8 $6 $4 $2 $0 52% drop in price Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from (LBNL), SEIA/GTM Research Solar Market Insight 2012 Year-in-Review. 87

88 Fact: Solar is cost competitive 2012 Source: Bloomberg 88

89 Fact: Solar is cost competitive 2020 Source: Bloomberg 89

90 Subsidies and Support Subsidies for Conventional and Solar Energy, 2010 Oil and Natural Gas $2,820 Nuclear $2,499 Coal $1,358 Solar $1, Value of Subsidies and Support ($ millions) Source: U.S. Energy Information Administration. July Direct Federal Interventions and Subsidies in Energy in Fiscal Year

91 Subsidies and Support Source: SEIA, Federal Energy Incentives in the United States (2011),

92 Subsidies and Support Subsidies for Conventional and Solar Energy, Oil $369 Natural Gas $121 Coal $104 Nuclear $73 Solar $ Value of Subsidies and Support ($ billions) Source: Management Information Services, Inc. October Years of Energy Incentives: Analysis of Federal Expenditures for Energy Development; SEIA, May 1, Federal Energy Incentives Report. 92

93 The Cost of Solar in the US $7.00 Comparison of US and German Solar Costs $1.60 Solar Soft Costs $ per Watt $6.00 $5.00 $4.00 $3.00 $ per Watt $1.40 $1.20 $1.00 $0.80 $0.60 Other Paperwork Permitting Column1 Non-Hardware Cost Installation Labor Hardware Cost $2.00 $1.00 $0.40 $0.20 Customer Acquisition $- US Solar Cost $0.00 German Solar Cost Source: NREL ( ( (

94 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

95 Time to Installation New York City s Goal 100 days from inception to completion Germany Today 8 days from inception to completion Photon Magazine

96 Time to Installation Average Time to Permit a Solar Installation 7.2x more man-hours needed in the US Hours US Germany

97 Permitting Costs $0.25 Average Cost of Permitting in the US and Germany Cost per Watt $0.20 $0.15 $ x the cost for permitting in the US $0.05 $- US Germany Source: NREL, LBNL

98 Germany s Success Consistency and Transparency through Standardized Processes

99 Mitigate Soft Costs $ per Watt $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Other Paperwork Permitting Installation Labor Customer Acquisition Source: NREL (

100 Mitigate Soft Costs $ per Watt $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $0.21 per Watt Other Paperwork Permitting Installation Labor Customer Acquisition Source: NREL (

101 Permitting Remove barriers by: Make qualified solar projects a by-right accessory use Modify regulations to clarify what types of solar projects are allowed where Streamline the permitting process

102 Zoning Code: Solar Framework Definitions Section Topics to Address Define technologies Applicability Primary vs. accessory use Dimensional Standards Design Standards Height Size Signage Disconnect Setbacks Lot coverage Screening Fencing Source: American Planning Association

103 Zoning Codes: Small Scale Solar Typical Requirements: Permitted as accessory use Minimize visibility if feasible Requirements: District height Lot coverage Setback

104 Zoning Codes: Large Scale Solar Typical Requirements: Allowed for primary use in limited locations Requirements: Height limits Lot coverage Setback Fencing and Enclosure

105 Zoning Code: Model Ordinances Resource City of Milwaukee: Solar Permitting Guide Local Solar Zoning Ordinance Listed

106 Zoning Code: Model Ordinances Resource Planning and Zoning for Solar Energy This Essential Info Packet provides a number of articles and guidebooks to help planners plan for solar in their communities. planning.org/research/solar

107 HOA: Community Restrictions Resource A Beautiful Day in The Neighborhood This guide provides a breakdown of solar access laws to help community associations and solar users understand how they can make solar work in their communities. solaroutreach.org/resources

108 The Permitting Process: Challenges 18,000+ local jurisdictions with unique permitting requirements Source:

109 The Permitting Process: Challenges Local permitting processes add on average $2,516 to the installation cost of residential PV Source: SunRun

110 The Permitting Process: Challenges Source: Forbes

111 Expedited Permitting Solar Permitting Best Practices: Fair flat fees Electronic or over-the-counter issuance Standardized permit requirements Electronic materials Source: Vote Solar

112 Expedited Permitting Solar Permitting Best Practices: Training for permitting staff in solar Removal of excessive reviews Reduction of inspection appointment windows Utilization of standard certifications Source: Vote Solar

113 Expedited Permitting: Case Study Breckenridge, Colorado Population: 4,540 Source: Wikipedia

114 Expedited Permitting: Case Study Breckenridge charges no fees to file for a solar permit No permit fee

115 Expedited Permitting: Case Study Breckenridge offers a short turn around time for solar permits No permit fee < 4 business days Source: Vote Solar (

116 Expedited Permitting: Case Study Electronic materials Standardized permit requirements Source: Breckenridge, CO (

117 Expedited Permitting Resource Solar ABCs Expedited Permitting: Simplifies requirements for PV applications Facilitates efficient review of content Minimize need for detailed studies and unnecessary delays

118 Expedited Permitting Resource Interstate Renewable Energy Council Outlines emerging approaches to efficient rooftop solar permitting

119 Mitigate Soft Costs $1.60 $1.40 Other Paperwork $ per Watt $1.20 $1.00 $0.80 $0.60 $0.59 per Watt Permitting Solar Readiness Installation Labor $0.40 $0.20 Customer Acquisition $0.00 Source: NREL (

120 Solar Readiness Creating solar-ready guidelines and promoting energy efficiency at the outset can help make future solar installations easier and more cost effective.

121 Solar Readiness Require builders to: Minimize rooftop equipment Plan for structure orientation to avoid shading Install a roof that will support the load of a solar array Record roof specifications on drawings Plan for wiring and inverter placement

122 Solar Readiness $5,000 $4,000 $3,000 $2,000 60% Savings when a building is solar ready Labor Equipment $1,000 $- During Construction After Construction Source: Solar Ready: An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011.

123 Solar Readiness Annual Energy Production (kwh) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Up to 30% More Energy Production with a south facing roof South East West Roof Orientation Source: Solar Ready: An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011.

124 Solar Readiness Resource NREL Creating a solar ready guide for buildings: Legislation Certification programs Stakeholder Education Source: NREL

125 Solar Readiness Model Ordinance Resource American Planning Association Includes references to ordinances requiring solarready homes in select communities. Source: APA

126 Q & A

127 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

128 The Solar Equation Cost + Installed Cost + Maintenance - Direct Incentive Benefit + Avoided Energy Cost + Excess Generation + Performance Incentive

129 The Solar Equation Cost + Installed Cost + Maintenance - Direct Incentive Benefit + Avoided Energy Cost + Excess Generation + Performance Incentive

130 Net Metering in Oklahoma: Rules/Applicability Applies to all investor-owned utilities and some electric cooperatives However Municipalities are not required to offer net metering. Net metering is only required for systems under 100 kw or 25,000 kwh/year, whichever is less (although OG&E allows for up to 300 kw). Customers may ask for their utility to purchase their net excess generation, but utilities are not required to purchase it. Purchase is only permitted at the avoided cost (wholesale) rate, not at the retail rate. Source: Database of State Incentives for Renewables and Efficiency (DSIRE). Available at:

131 The Solar Equation Cost + Installed Cost + Maintenance - Direct Incentive Benefit + Avoided Energy Cost + Excess Generation + Performance Incentive

132 Incentives Federal Investment Tax Credit Accelerated Depreciation State Production Tax Credit

133 Incentives Federal Investment Tax Credit Accelerated Depreciation State Production Tax Credit

134 Investment Tax Credit Type: Tax Credit Eligibility: For-Profit Organization Value: 30% of the installation cost through 2016 (10% thereafter)

135 Accelerated Depreciation 100% Modified Accelerated Cost-Recovery System (MACRS) 80% Project Value 60% 40% 20% Straight Line 50% Bonus (2012) MACRS (2013+) 0% Year

136 Incentives Federal Investment Tax Credit Accelerated Depreciation State Production Tax Credit

137 Zero-Emission Facility Production Tax Credit Type: Production Tax Credit Eligibility: All zero emission (including PV) systems over 1 MW Value: $5/MWh (or 1/2 cent/kwh) until 1/1/2021 Prerequisite: Facility construction and operation must not result in the creation of pollution or emissions harmful to the environment. Source: Database of State Incentives for Renewables and Efficiency (DSIRE). Available at:

138 Solar Financing Options

139 Solar Financing Options Direct Ownership Third Party Ownership

140 Direct Ownership Balance Sheet Debt Financing Customer $ $ Utility

141 Direct Ownership: Debt Pathway Lending Fund: $50 million fund 10 year loan 5% interest Partners: TVA, Pinnacle Bank, State of Tennessee Source:

142 Direct Ownership Pros Low cost electricity REC revenue Full ownership Cons Large upfront cost Long term management Can t take tax benefits Development risk Performance risk

143 Third Party Ownership: PPA Power Purchase Agreement Customer e - $ $ e$ - $ Incentives Developer

144 Third Party Ownership: PPA / February At Least 22 states, + Washington DC and Puerto Rico,Authorize or Allow 3 rd -Party Solar PV Purchase Power Agreements. Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.

145 Third Party Ownership In the top 5 solar markets 60-90% of new installations use third party ownership Source: NREL (

146 Third Party Ownership: PPA Pros No upfront cost No O&M costs Low risk Cons Not supported in all states Don t keep RECs Predictable payments Tax benefits

147 Third Party Ownership: Lease No tax incentives for public entities Lease Customer Incentives $ e - $ e - $ $ Developer

148 Third Party Ownership: Lease Pros No upfront cost Cons Can t take tax benefits No O&M costs Low risk Predictable payments Keep incentives

149 Solar Financing Options Direct Ownership Direct Ownership Direct Ownership Third Party Lease

150 Options for Solar Programs Solarize QECB s

151 Solarize Solarize Group Purchasing

152 Solarize: Advantages Barriers High upfront cost Solutions Group purchase Complexity Community outreach Customer inertia Limited-time offer

153 Solarize: Advantages Cost per Watt $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 Customer Acquisition 10x the cost for customer acquisition $- US Germany Source: NREL, LBNL

154 Solarize: Advantages Benefits to Local Government: Low upfront cost: $5,000 - $10,000 + Labor Quick turn-around: 9 Months Long-term impact: Sustainable ecosystem

155 Solarize: Process Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation

156 Solarize: Case Study Harvard, Massachusetts Population: 6,520 Source: Wikipedia

157 Solarize: Case Study Solarize Mass Harvard Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 April 2011 Dec 2011

158 Group Purchasing $6.00 $5.00 Harvard Mass Group Purchasing Tiers Average PV Cost July 2011: $5.75 / watt $4.00 $3.00 $2.00 $1.00 $- 1 kw kw 100 kw kw 200 kw kw 300 kw +

159 Solarize: Case Study Solarize Mass Harvard Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation May July 2011 April 2011 Dec 2011

160 Solarize: Case Study Marketing Strategy: Electronic survey of 1,100 households newsletters and direct mailings Float in July 4 parade Articles and advertisements in local newspaper Facebook page and online discussion board Source: Vote Solar

161 Solarize: Case Study Solarize Mass Harvard 429 households signed up Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation June Oct 2011 April 2011 Dec 2011

162 Solarize: Case Study Solarize Mass Harvard 151 feasible households Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation Oct 2011 April 2011 Dec 2011

163 Solarize: Case Study Solarize Mass Harvard 75 Contracts Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation Oct Dec 2011 April 2011 Dec 2011

164 Group Purchasing $6.00 Harvard Mass Group Purchasing Tiers $ kw capacity contracted $4.00 $3.00 $2.00 $1.00 $- 1 kw kw 100 kw kw 200 kw kw 300 kw +

165 Solarize: Case Study 75 new installations totaling 403 kw 30% reduction in installation costs 575% increase in residential installations

166 Solarize: Lasting Impact Lasting Impact Source: NREL

167 Solarize: Resources Resource The Solarize Guidebook A roadmap for project planners and solar advocates who want to create their own successful Solarize campaigns.

168 Qualified Energy Conservation Bond Qualified Energy Conservation Bond QECB QECB $ US Treasury Local Gov Project $ Community

169 Qualified Energy Conservation Bond + 3.7% + 2.3% $ US Treasury Local Gov Project Community QECB

170 Q & A

171 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking

172 Activity: Next Steps What do you pledge to do when you leave today s workshop? [Orange Card]

173 About the SunShot Solar Outreach Partnership Technical Support Ask an Expert Live Web Forums Ask an Expert Web Portal Peer Exchange Facilitation In-Depth Consultations Customized Trainings For more information

174 Jim Kennerly North Carolina Solar Center Alex Winn The Solar Foundation (919) (202)

175 Emily Dodson International City/County Management Association (ICMA) Mia Colson National Association of Regional Councils (NARC)

176 Agenda 08:40 09:15 09:15 09:45 09:45 09:55 09:55 10:15 10:15 10:35 10:35 11:35 11:20 11:35 11:35 11:45 Introductions and Solar 101 Overview Oklahoma Policy Environment Break Benefits and Barriers Activity Creating a Solar Ready Community Growing Your Local Solar Market Wrap Up & Closing Remarks Lunch and Networking