State Policy Update: SEIA NY Market

Transcription

1 State Policy Update: SEIA NY Market Tina Palmero, Rudy Stegemoeller, Marco Padula, New York Department of Public Service David Sandbank, Marci Brunner, Maureen Leddy, NYSERDA Rick Umoff, Solar Energy Industries Association

2 New York Market: A Deep Dive Rick Umoff, Counsel and Regulatory Affairs Manager, State Affairs

3 New York Electricity Market Overview Electric Generation by Source (EIA) Other Renewables Hydroelectric Nuclear Coal-Fired Natural Gas-Fired Petroleum-Fired GWh June 17, Solar Energy Industries Association 3

4 Market Overview Cont d In 2013, NY had the fourth highest average electricity prices in the US (EIA) In 2011, NY was the eighth largest energy consumer among the 50 states, but had the second lowest energy consumption (EIA) Avg. Retail Price of Electricity (EIA) All Sectors Transportation Mar-14 Industrial Mar-15 Commercial Residential June 17, Solar Energy Industries Association 4

5 Market Overview Cont d NY Market is Restructured Retail Electricity Market Retail competition introduced in 1996 Goal: Increase choice; reduce costs; improve service Utilities (Central Hudson; Con Ed; NYSEG; National Grid; LIPA): Own and operate distribution system Responsible for purchasing enough E to meet customer needs Energy Service Companies (ESCOs) Purchase bulk power for sale to retail customers (3 rd party competition) Wholesale Electricity Market Est 1996 to create structured wholesale market for E Markets: Energy; Ancillary; Capacity; Financial Managed by New York Independent System Operator (NYISO) June 17, Solar Energy Industries Association 5

6 New York Solar Market NY ranks 7 th nationally in installed solar capacity 456 MW of solar capacity installed (as of 2014) 545 solar companies employ 7300 people in NY June 17, Solar Energy Industries Association 6

7 Solar Market Cont d MARKET SEGMENTS Residential Commercial Utility Utility 13% Residential 46% Commercial 41% June 17, Solar Energy Industries Association 7

8 Bedrock Solar Policies Renewable Portfolio Standard Net Metering (PSL 66-j) NY-Sun Other Policies 30% by 2015 NYSERDA procures RE for the RPS Two Tiers: Main Tier (LSR); Customer-Sited Tier (DER) Voluntary Market Set Aside: 1% of RPS Capped at 6% of 2005 peak electric demand First come first serve System size caps: 25 kw for residential, 100 kw for farms, 2 MW for nonresidential PV Incentive Program: Residential; C&I Loan Program: Residential; Small Biz; Non- Profit Solar Thermal Incentive and Loan Programs Tax Credits: Residential Solar Tax; Others Sales Tax Exemptions: Residential sales; Non-residential sales; TPO systems June 17, Solar Energy Industries Association 8

9 Regulatory Reforms Market Transformation Initiatives Clean Energy Fund Green Bank Reforming the Energy Vision (REV) Customer Sited Tier/DG Solar Net Metering MW Block Program Community Net Metering DER Oversight Main Tier/Large Scale Renewables LSR Proceeding June 17, Solar Energy Industries Association 9

10 Where we are engaged Proceeding Summary Status Key Dates MW Block Program PV Incentive Program SEIA engaged in program design Ongoing Net Metering NEM Caps; Remote Net Metering; Successor Tariff SEIA monitoring caps; Engaged in dialogue w/staff on future of NEM; Engaged on RNM modifications Ongoing REV Track Two Implementation of REV policy framework Track 1 Order Issue; Awaiting T2 Straw 7/1/15 REV Large Scale Reform of Main Tier (Large Scale RE) Staff paper issued for comment REV - DSIPs Utility REV implementation plans Awaiting staff guidance and utility filing 7/22/15 8/1/15; 1/15/16 REV DER Oversight Guidelines for Oversight of DER Providers Engaging w/staff; Straw expected in July 7/1/15 Community NEM Community solar program based on RNM rules SEIA filed comments; Order expected this summer Summer 2015 Interconnection Standards Utilities to update interconnection standards for DER Utilities file status reports; SEIA likely to comment 7/1/15 June 17, Solar Energy Industries Association Clean Energy Fund Next iteration of RE and EE programs SEIA monitoring 10 and Ongoing

11 NYS Solar Market SEIA NY Market Webinar Presented by the Department of Public Service June 17, 2015

12 Mission Statement The primary mission of the New York State Department of Public Service is to ensure affordable, safe, secure, and reliable access to electric, gas, steam, telecommunications, and water services for New York State s residential and business consumers, while protecting the natural environment. The Department also seeks to stimulate effective competitive markets that benefit New York consumers through strategic investments, as well as product and service innovations. 12

13 Public Service Commission (PSC) and the Department of Pubic Service (DPS) Chair Head of the Commission Designated by the Governor Chief Executive Officer of the Department of Pubic Service (DPS) Public Service Commission Five member decision making body appointed by the Governor and approved by the legislature Regulates electric, natural gas, steam,telecommunications and water utilities. Written decisions by Order Standards for PSC Decisions include safe and adequate services; just and reasonable rates; good public policy Department of Public Service Serves as the Staff of the PSC by providing technical assistance and recommends specific actions. Serves to represent the pubic interest Serves to carry out the Commission s legal mandates(rules, regulations and orders) Comprised of Offices with professional staff (accountants, economists; engineers, environmental, attorneys, RE/EE specialists; consumer services) 13

14 PSC on-going proceedings to support Solar PV - Renewable Portfolio Standard (RPS) - Clean Energy Fund (CEF) - Large Scale Renewables (LSR) - Community Distributed Generation (CDG) - Reforming the Energy Vision (REV) 14

15 Renewable Portfolio Standard (RPS) 03-E-0188 The PSC, by Order, established the RPS in 2004 Key components of Order: Established targets and objectives; program structure and eligibility of resources (Main Tier and Customer-Sited Tier). Created an RPS surcharge applied to the delivery portion of electric customer utility bills. Designated NYSERDA as the program administrator. Required utilities to transfer collections to NYSERDA. Since 2004, PSC has issued over 50 orders in the RPS Case. Many authorizing additional funding for CST solar PV program. Order of April 24, 2014 The PSC authorized nearly $1 billion for the continuation of solar PV programs beyond 2015 and approved design criteria for the MW Block approach and approved $13 million for LMI customer intervention. The remainder of the RPS programs will reach their terminus at the end of

16 Clean Energy Fund 14-M-0094 May 2014, the Commission initiated the Clean Energy Fund (CEF) proceeding to address post 2015 terminus of RE and EE programs. NYSERDA submitted its CEF Proposal in September Subsequently, the Commission issued a notice soliciting comments and providing a schedule for a supplemental CEF filing. A Technical Conference was held January DPS Staff continues to engage with NYSERDA in the development of the CEF. A new plan is scheduled to be filed on June 25,

17 Large Scale Renewables 15-E-0302 The Commission instructed DPS Staff to work with NYSERDA to prepare an LSR options paper to be issued for public comment (aka Main Tier resources). The report - Large Scale Renewable Energy Development in New York: Options and Assessment, was filed with the Secretary to the Commission on June 1, Simultaneously with the filing of the LSR Options Paper, the Secretary issued a notice and a set of questions developed by Staff, intended to focus public comment. A Technical Conference is scheduled for July 8, Initial Comments due July 22,

18 Community Distributed Generation 15-E-0082 February 2015, the Commission instituted a proceeding notice soliciting comments on a proposed Staff community distributed generation (Net Metering) straw proposal that outlined a framework for the implementation of a Community DG program. The objective of the proceeding is to make possible clean energy technology solutions available to customers who may not be able to site DG at their site/meter. Staff convened with Stakeholders on March 6, 2015 to get input on straw proposal. Written comments also received. DPS Staff working with NYSERDA and stakeholders to refine proposed program rules (draft straw) to bring to the Commission for action this summer. 18

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20 Thank You 20

21 NY Market Overview New York State Energy Research and Development Authority June 17, 2015

22 22 What is NYSERDA? A nationally recognized leader in the development, commercialization, and implementation of advanced energy technologies A public benefit corporation helping New York State meet its goals to: Reduce energy consumption and increase energy efficiency Create a clean energy economy Grow diverse, renewable energy supplies Protect the environment Provide experienced leadership in planning and policy New York State Energy Research and Development Authority

23 23 What does NYSERDA do? NYSERDA offers: objective information and analysis innovative programs technical expertise funding NYSERDA helps New Yorkers: increase energy efficiency save money use renewable energy reduce their reliance on fossil fuels New York State Energy Research and Development Authority

24 24 Key NYSERDA PV Programs NY-Sun Initiative Governor Cuomo s $1 Billion initiative supporting between 3GW to 5GW of customer-sited solar installations through 2023 MW Block structure offers a ratchet down approach to a self sustaining solar industry while giving transparency and stability RPS Main Tier Production incentives for utility scale renewable electricity generation; periodic competitive procurement, 20-yr max contract duration Governor Cuomo committed $160M to RPS Main Tier for Future Large Scale Renewables Program is under development New York State Energy Research and Development Authority

25 25 Overview of Current NY-Sun Programs New York State Energy Research and Development Authority

26 26 NY-Sun Programs NY-Sun Incentive Programs <200 kw Residential/Small Commercial >200 kw Commercial/Industrial Lowering Balance of System Costs Community Solar K-Solar PV Trainers Network Financial Support Low moderate income Green jobs Green NY New York State Energy Research and Development Authority

27 27 Residential/Small Commercial Participation through Eligible Installers/Contractors who submit all of the paperwork to NYSERDA Purchases, leases, PPAs (power purchase agreements) are all eligible Systems sized up to 110% of annual usage Site is defined as a utility meter Incentives paid directly to contractor/developer New York State Energy Research and Development Authority

28 28 Residential/Small Commercial Three regions Long Island (PSEG-LI) ConEd Rest of state (ROS) Each region s MW targets are broken into blocks by sector to which incentives are assigned Residential (up to 25 kw) Small non-residential (up to 200 kw) New York State Energy Research and Development Authority

29 29 >200kW Commercial/Industrial Performance based incentives Initial incentive payment at commercial operation (25%) Three annual incentive payments based on production 20% multiplier on base incentive for utility strategic locations Add up to $50,000 for integrating energy storage Add up to $50,000 for integrating energy efficiency System size limited to one host meter per application New York State Energy Research and Development Authority

30 30 >200kW Commercial/Industrial Two Incentive Regions 1. ConEd Service Territory 2. Rest of State (ROS), except Long Island ROS is one region with two incentive rates Volumetric Incentive Net Metering Crediting on a kwh basis Monetary Incentive Remote Net Metering Crediting on a monetary basis, available through grandfathering (prior to June 1, 2015) New York State Energy Research and Development Authority

31 31 MW Block Incentive Dashboard New York State Energy Research and Development Authority

32 32 Tracking Progress Megawatt (MW) Block Dashboard provides real time information on block status and incentive levels by sector and region Block status updated as applications are submitted When block is full (submitted capacity equals/exceeds stated capacity), next block incentive level automatically applied to subsequent applications New York State Energy Research and Development Authority

33 33 Balance of System (BOS) Cost Reduction Customer aggregation (Solarize, K-Solar) and education Online finance and customer acquisition platforms Streamlined permitting process Training for local fire, code, and zoning officials Interconnection process New York State Energy Research and Development Authority

34 34 Community Solar NY & K-Solar Work with local governments, schools, and other community partners to make solar more accessible and affordable through group purchasing and other strategies Solarize campaigns to aggregate demand for solar: more than 30 underway K-Solar Partnership between NYPA, NYSERDA, and State Education Department. Free solar assessment and project management services for schools installing solar School serve as hubs for community education and solar projects New York State Energy Research and Development Authority

35 35 Financial Support New York State Energy Research and Development Authority

36 36 Financial Support Green jobs Green New York Low moderate income New York State Energy Research and Development Authority

37 37 Contact Information New York State Energy Research and Development Authority

38 Questions Please type your questions into the lower left corner of the window. Click the send button to submit. If you have additional questions about the State Policy Update: SEIA NY Market webinar Please contact Rick Umoff at June 17, Solar Energy Industries Association 38

39 Thank You! Thank you for joining today s webinar. Register for upcoming SEIA webinars at If you have questions about the State Policy Update: SEIA NY Market webinar Please contact Rick Umoff at rumoff@seia.org For membership inquiries contact SEIA s Membership Team at SEIAMembership@seia.org June 17, Solar Energy Industries Association 39