2015 Solar Summit. Jake Wade Net Metering Program Manager

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1 2015 Solar Summit Jake Wade Net Metering Program Manager

2 2015 The program continues to accelerate. We will add 1200 new customers in 2015 Uncertainty over Investment Tax Credit (ITC) and state incentives Falling solar prices and continued adoption More community solar More Washington made equipment More production per kw Larger systems installed Reduced utility electric sales 2

3 The Numbers Production Incentive: $6,021, Net Metered Customers ytd 23.2 MW Capacity ytd Production Incentive: $3,130, Net Metered Customers 15.8 MW Capacity Production Incentive: $1,838, Net Metered Customers MW Capacity Production Incentive: $1,106, Net Metered Customers 7.77 MW Capacity Production Incentive: $545, Net Metered Customers 5.09 MW Capacity Production Incentive: $283, Net Metered Customers 3.38 MW Capacity Production Incentive: $170, Net Metered Customers 2.07 MW Capacity 3

4 Net Metering Growth

5 Production Payment 5 5

6 PSE 2014 Taxable Electric Sales $2,001,055,773.5% = $10,005,278 5% of that = $500,263 (2013 = $2,078,848,097 $10.4 pool) (2012 = $2,224,433,814 $11.2 pool) 6

7 Annual Production - Solar Average Solar Production by County Total Average: 1060 kwh/kw/year kwhs Produced per kw Installed Island King Kitsap Kittitas Pierce Skagit Thurston Whatcom 7

8 System Size Number of Systems kw 2014 Mean = 6.04 kw Median = 5.40 kw Mode = 4.32 kw 2013 Mean = 5.67 kw Median = 4.50 kw Mode = 4.32 kw 2012 Mean = 5.50 kw Median = 4.23 kw Mode = 4.32 kw 8

9 Annual Adjustment Customer-generated power Base rate Factor Price per kwh Solar modules and inverter both manufactured in WA $ $0.504 Solar modules manufactured in WA $ $0.336 Solar or wind with inverter manufactured in WA $ $0.168 Any other PV system $ $0.140 Wind turbine with blades manufactured in WA $ $0.140 Any other wind turbine $ $0.112 Customer-generated power Base rate Factor Price per kwh Solar modules and inverter both manufactured in WA $ $0.468 Solar modules manufactured in WA $ $0.312 Solar or wind with inverter manufactured in WA $ $0.156 Any other PV system $ $0.130 Wind turbine with blades manufactured in WA $ $0.130 Any other wind turbine $ $0.104 Customer-generated power Base rate Factor Price per kwh Solar modules and inverter both manufactured in WA $ $0.432 Solar modules manufactured in WA $ $0.288 Solar or wind with inverter manufactured in WA $ $0.144 Any other PV system $ $0.120 Wind turbine with blades manufactured in WA $ $0.120 Any other wind turbine $ $

10 Annual Adjustment Annual adjustments: Production Metering: The total funds available for all annual incentive payments is limited to the greater of $100,000 or 0.5 percent of the prior year s taxable power sales. Should the number exceed the limit of the total incentive funds available, the Base Rate will be reduced by one cent for all incentive payments. The base rate will continue to be adjusted annually until it is possible to pay an incentive payment to all customer-generators and administrators without exceeding the available funds. For more details, please see the Electric Tariff for Schedule 151. Net Metering.5% of 1996 Peak Load. For PSE = 22.4 MW (23.2 MW as of 8 Oct 15) 10

11 2016 Production Communications Dear Customers and Installers, 2015 has been a phenomenal year for renewables. In addition to record temperatures and a higher number of sunny days, we predict ending the year with 1,200 new solar customers, bringing the total number of PSE net metered customers to 3,800. We also have 18 community solar arrays in neighborhoods across our service area, and the momentum is substantial going into next year. The increase in customers combined with greater production means we are on track to reach the limit of Washington State incentives for renewables. In order to welcome future projects into the program, and to comply with PSE s state prescribed cap, currently $10 million, the base payment rate will need to be adjusted for all renewable energy customers starting next year. As of September 2015, the rate is expected to drop between 2 to 5 cents per kilowatt-hour (kwh), with latest calculations estimating a 3 cent drop. This would move the base rate from 15 cents to 12 cents. For customers using in-state manufactured solar equipment where the payout is highest, the payment would be adjusted from 54 cents per kwh to 43.2 cents. We will continue to adjust the base rate annually until all payments can be made and will communicate quarterly with customers and installers about the increasing solar adoption rate. Base rates will be finalized in early summer For more details on how our state s renewable incentives work, please visit pse.com/reap. As we head into the last five years of Washington State s solar incentive, we look forward to working with you, legislators, and manufacturers to extend solar payments and continuing to grow renewable energy in our state. Thank you for your dedication to renewable energy. Jake Wade PSE Net Metering Program Manager jake.wade@pse.com 11

12 2016 Challenges Aggregation Onboarding of applications Self Service Batteries Billing enhancements Meter Inventory AMI Legislation PQ Production 12