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 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
www.utahcleanenergy.org
Slide Credit: Jim Williams
Slide Credit: Jim Williams
Where We Need To Go
Slide Credit: Jim Williams
Slide Credit: Sasha Von Meier
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
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 No all homes have great solar resource Cost high upfront cost individuals don t benefit from economies of scale (perceived) limited financing options soft costs
How does the Industry work?
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
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
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
Slide Credit: Chris Greasen
Slide Credit: Chris Greasen
Seasonal array tilt To receive state tax credits the array must be Positioned such that the fixed solar array azimuth shall be oriented within: a. 165 degrees and 225 degrees if the fixed pitch is greater than 30 degrees from horizontal, or b. 165 degrees and 270 degrees if the fixed pitch is 30 degrees or less from horizontal. 40.7 degrees in Salt Lake City Slide Credit: Chris Greasen
Watts/m² Peak Sun Hours Salt Lake City: 5.3 PSH annual average 1200 1000 800 600 400 Peak Sun Hours 200 6:00 8:00 10:00 14:00 16:00 18:00 *Source: http://rredc.nrel.gov/solar/old_data/nsrdb/redbook/sum2/23234.txt Slide Credit: Chris Greasen
Annual Average Peak Sun Hours (PSH) Slide Credit: Chris Greasen
Slide Credit: ICLEI But good policies are essential!
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
Net Metering. www.dsireusa.org / October 2012. 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.
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: www.freeingthegrid.org, Vote Solar
Utah Clean Energy & partners: Paving the Way for Solar Solar PV Licensing 2008 Two As for Net metering & Interconnection - 2010 3 rd party financing bill - 2010 Solar Salt Lake Project 2007-2010: 1000% increase in commercial solar installations 200% increase in residential installations 50-60% price declines since 2010 Freeing the Grid (2010)
Solar Salt Lake Project (2007-2012) 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 2010 http://www.solaramericacities.energy.gov/cities/salt_lake_city/
We ve come a long way 12000 Installed Solar PV Capacity in Utah (2001-2012) (kw) 10000 8000 kilowatts 6000 4000 2000 0 2001 2012
Salt Lake County and City Installed Solar PV Capacity (kw) 2007-2011 Residential Solar PV Commercial Solar PV 7000 Solar Salt Lake receives US DOE 'Mountain Mover' Award 6000 5000 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) 4000 3000 2000 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 1000 0 2007 2008 2009 2010 2011
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.
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
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
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 (www.freeingthegrid.org) State and Federal tax incentives Rocky Mountain Power 60 MW Solar Incentive Program
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.
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
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.
Really Cool Web-based Solar Resources SLC Solar Map: www.slcgovsolar.com PV Watts: http://www.nrel.gov/rredc/pvwatts/ SAM Model: https://sam.nrel.gov/ RMI Video on Solar Market: http://blog.rmi.org/blog_solar_issues_day_custom er_acquisition
Thank you! Questions? Billy Smallen Project Coordinator 801-903-2035 billy@utahcleanenergy.org