Solar in Utah: Policies, Markets, and Technology Billy Smallen, Utah Clean Energy
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1 Solar in Utah: Policies, Markets, and Technology Billy Smallen, Utah Clean Energy P R O F. R A J E S H M E N O N S O P T I C S C L A S S 1 0 / 2 5 / Photos: Salt Palace Convention Center, 1.65 MW Solar PV System; Credits: Jeffrey D. Allred, Deseret News Slides by Sara Baldwin, Utah Clean Energy and Billy Smallen, Utah Clean Energy unless otherwise noted
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3 Slide Credit: Jim Williams
4 Slide Credit: Jim Williams
5 Where We Need To Go
6 Slide Credit: Jim Williams
7 Slide Credit: Sasha Von Meier
8 People want solar. Greater self-reliance & energy independence Healthy communities: Improved air quality & water benefits Reduced emissions Improved home value (new PV Valuation Tool for Appraisers!) Inexhaustible energy supply Electric vehicles Photo Credit: Chris Greasen
9 but barriers remain for solar energy Customer Inertia focus, time, energy, $$ (I ll do it later, when ) Complexity technical issues selecting contractors can be daunting Cost high upfront cost individuals don t benefit from economies of scale (perceived) limited financing options soft costs
10 Solar Industry Similar to other construction/home-improvement industries: - Manufacturers make panels and equipment - Installers are responsible for marketing, customer acquisition, system design, and installation
11 Commercial Solar Industry Site owners may install systems in a similar bidinstall fashion as residential systems May enter into Power Purchase Agreements or Lease arrangements Commercial PACE Photo Credits: Ed Kosmicki, Deseret News, Visit Salt Lake
12 Residential Solar Industry Customers generally receive bids from several installers making it a very competitive industry. Similar to other home improvements, a contractor will make a site visit, perform an assessment, and then supply the bid. While in most cases the customer is buying the panels, there are some states and cases where panels may be leased Financing options are starting to develop
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14 Annual Average Peak Sun Hours (PSH) Slide Credit: Chris Greasen
15 Slide Credit: Chris Greasen
16 Slide Credit: Chris Greasen
17 Seasonal array tilt 40.7 degrees in Salt Lake City Slide Credit: Chris Greasen
18 Watts/m² Peak Sun Hours Salt Lake City: 5.3 PSH annual average Peak Sun Hours 200 6:00 8:00 10:00 14:00 16:00 18:00 *Source: Slide Credit: Chris Greasen
19 Solar Market in Utah Great solar resource Emerging market Improved Net Metering Laws/Rules 2008/2009 Limited incentives, until recently No solar or renewable portfolio standards Recent policy and regulatory changes show promise of significant growth in coming years Two As for Net Metering and Interconnection ( State and Federal tax incentives Rocky Mountain Power 60 MW Solar Incentive Program
20 kilowatts (kw) Salt Lake County - Progress to Solar Salt Lake Project 10 MW (10,000 kw) by 2015 Goal Total Installed Remaining to 10 MW Goal
21 The Future of the Solar Market Future projections Better technology Prices stabilizing Prices of materials Panel costs Need to address soft costs of solar Customer Acquisition Costs Permitting, zoning, net metering, etc.
22 Challenges for the future Increasing efficiencies Using less expensive materials Better production practices Smarter Grids Storage, micro-grids, etc. Awareness & Acceptance Lower Customer Acquisition Costs Leveling the Playing Field Protecting Policies and Enacting New Ones Making Solar a No-Brainer Return on Investment vs. Payback Locking in energy prices Photo Credit: Greenlaunches
23 Challenges for the future Take away: All energy resource have their limitations and challenges; diversifying our energy portfolio is the safest, smartest, most secure long-term approach Solar technologies are becoming more mainstream Need to stay focused on innovative ways to make solar more simple, cheaper (and more easily financed), and more easily integrated. Keep an Eye on the Ball: Germany is starting to see more plug-and-play systems; the U.S. is still tackling solar systems custom designed for individual properties.
24 Slide Credit: ICLEI But good policies are essential!
25 Policies to Strengthen the Solar Market Net Metering Incentives/Tax Credits State, Federal, Sales Tax Renewable Portfolio Standards Utilities must purchase a set amount of renewable energy when available Utility Incentives Streamlined Permitting/Zoning/Financing Wasatch Solar Challenge DOE Proposal aiming for < $1/Watt for Soft Costs
26 Salt Lake County and City Installed Solar PV Capacity (kw) Residential Solar PV Commercial Solar PV 7000 Solar Salt Lake receives US DOE 'Mountain Mover' Award Utah earns 'A's for Net Metering & Interconnection; 3rd Party Financing enabled; Solar Salt Lake receives top score from DOE SETP Peer Review kilowatts (kw) Salt Lake City/County Designated as US DOE Solar America City Solar Salt Lake US DOE Phase II Special Projects Solar Salt Lake receives US DOE 'Barrier Buster' Award
27 Net Metering. / October 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.
28 Net Metering 101 Total System Capacity set at 20% of RMP s 2007 peak demand ( approx 900 MW) Residential customers receive kwh for kwh credits for any excess generation they produce on a month-to-month basis Excess credits expire at the end of annualized billing period (April-March) Max residential system size: 25 kw Max commercial system size: 2 MW Map Source: Vote Solar
29 Utah Clean Energy & partners: Paving the Way for Solar Solar PV Licensing 2008 Two As for Net metering & Interconnection rd party financing bill Solar Salt Lake Project : 1000% increase in commercial solar installations 200% increase in residential installations 50-60% price declines since 2010 Freeing the Grid (2010)
30 Solar Salt Lake Project ( ) A U.S. Department of Energy, Solar America Cities Initiative This program started with virtually none of the pro-solar policies and regulatory structures that were available to the other Solar America Cities programs. Through effective collaborations and considerable strategic acumen, the Utah program has successfully undertaken activities for putting these basic elements in place: interconnection, net metering, third party ownerships, and partnerships with potential private sector champions. In Utah s case, what solar first needs is an effective institutional champion; in this case Solar Salt Lake filled that need. U.S. DOE SETP Peer Review
31 We ve come a long way Installed Solar PV Capacity in Utah ( ) (kw) kilowatts
32 The Rooftop Solar Challenge supports the goals of the DOE Solar Energy Technologies Program and the SunShot Initiative, which seek to make solar electricity cost competitive without subsidies by the end of the decade. Nationwide effort to accelerate significant improvements in solar market 22 diverse teams of local and state governments along with utilities, installers, non-governmental organizations, and others Reduce administrative barriers to residential and small commercial PV solar installations, streamlining & standardizing processes, and reduce inefficiencies Challenge Objective: make the process of going solar simpler, faster, and more cost effective for residents and businesses.
33 Wasatch Solar Challenge: Streamlining and Simplifying Solar #1: Streamline Permitting and Interconnection Processes #2: Improve Solar Financing Options #3: Create Utah Model Solar Ordinance #4: Preserve Strong Net Metering and Interconnection Standards #5: Conduct Final Market Assessments
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35 Driving the Market Forward: Salt Lake Community Solar Serving Salt Lake County SLCS eclipsed a commitment level of 150 kilowatts in just 3 months!* Lowest Pricing Tier Achieved: All SLCS participants can now install solar on their homes for just $3.35-$3.55 per watt, before incentives Over 270 people took solar survey Many were ineligible due to: shading, renters, roof replacement, moving soon, self-install, or out-of-area *progress to date; progress still being made
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37 Really Cool Web-based Solar Resources SLC Solar Map: PV Watts: SAM Model: RMI Video on Solar Market: er_acquisition
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41 Thank you! Questions? Billy Smallen Project Coordinator
Solar in Utah: Policies, Markets, and Technology Billy Smallen, Utah Clean Energy
Solar in Utah: Policies, Markets, and Technology Billy Smallen, Utah Clean Energy P R O F. R A J E S H M E N O N S O P T I C S C L A S S 1 0 / 2 5 / 2 0 1 2 Photos: Salt Palace Convention Center, 1.65
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