energy.gov/sunshot July 29, 2015 Community Solar Policy Better Buildings Clean Energy for Low Income Communities Accelerator Cohort September 21 st , 2016 Erin Cheese and Odette Mucha
energy.gov/sunshot July 29, 2015
Community Solar PolicyBetter Buildings Clean Energy for Low Income Communities Accelerator Cohort
September 21st, 2016
Erin Cheese and Odette Mucha
energy.gov/sunshot
o Review homework from last meeting
o Options for Community Solar Programs
o Virtual Net Metering: What is it?
o Utility-led programs
o Understanding Key Differences in Community Solar Policy
o Jeff Cook, NREL
o States with Community Solar Legislation
o Joseph Pereira, Colorado Energy Office
o Corey Ramsden, Maryland Sun
o Open Discussion, Next Steps
Agenda
2
energy.gov/sunshotenergy.gov/sunshot
1. What are the existing solar policies in your state?• Net metering
• Are you nearing the cap?• Renewable Portfolio Standard
• If so, is there a solar carve out? (If so, what are the SRECs worth? Is it approaching the RPS goal/ cap?)
• Third party ownership of solar systems• Virtual net metering (e.g. New England)• Shared solar specific legislation (e.g. MN, CO)• Other solar policies
• Feed-in tariff• State investment tax credit for solar (e.g. OR) (If so, is it still active? How much is
it worth?)
• State rebates for solar (CT, DE) (How much? Do you have a rebate specific for LMI solar? (e.g. NY))
• Performance based incentives (e.g. NM)
• Cap and trade (RGGI, Western states)• Is there potential for cap and trade revenue to be used for LMI solar
programs?3
Homework before the Policy webinar
Go to the Database of
State Incentives for
Renewable and Efficiency
to find out!
www.DSIREUSA.org
energy.gov/sunshotenergy.gov/sunshot
2. What are your city’s solar programs and policies?
• Sustainability goals
• DOE programs: Rooftop Solar Challenge, SolSmart
• Streamlined permitting, interconnection, inspection processes
4
Homework part 2
energy.gov/sunshot
Do you live in a state with community solar enabling legislation?
Poll
5
energy.gov/sunshotenergy.gov/sunshot
Community Solar Legislation
6
energy.gov/sunshotenergy.gov/sunshot
Options for Community Solar – State Legislation or Utility Led Program
energy.gov/sunshot
Allows customers to generate their own electricity to offset their electricity usage
Retail meter spins forward when the customer uses electricity from the grid and backwards when the customer exports to the grid
In general, homes produce excess electricity in the summer (receiving a credit from the utility, generally carried over to the next month)
Net Metering
8
Photo credit: EnergySage
energy.gov/sunshot
Expands aggregated net metering, allowing a property owner with multiple meters to distribute net metering credits to individual accounts
Virtual Net Metering
9
Source: Solar Industry Magazine
energy.gov/sunshot 10
Partnership with Your Utility – Cooperative example
• Coastal Electric Cooperative Renewables Solar Farm –Midway, GA
• 120 kW array sold out, more capacity now available from a 20 MW facility in Hazlehurst, GA
• Blocks of solar electricity are $25/month. Each block is equivalent to about 6 solar panels (166-203kWh/month)
• Monthly solar credit is subtracted from the metered energy used at the home or business
energy.gov/sunshot 11
Partnership with Your Utility - Municipal Utility
• Berea Municipal Utilities/Solar Farm in KY
• As a city-owned utility, it doesn’t fall under the regulation of the PSC
• One-time $750 lease fee per panel for 25 years – about $3/W
• Customers receive a Panel Production Credit on their electricity bills
• 246 panels, 150 customers
Variation in Community Solar Policy across the States
Jeffrey J. Cook
September 21st, 2016
13
• To date, 30 states have community solar programs
• 14 states have enacted legislation to mandate these programs
Community Solar
14
Policy Variation
Table 1. Individual Project Size Limit by Statei
State <1 MW 1 MW 2 MW >2 MW
California
Colorado
Connecticut
Delaware
Hawaii*
Maine
Maryland
Massachusetts
Minnesota
New Hampshire
New York
Oregon*
Vermont
Washington
*Individual project size limits have not yet been established in Oregon or Hawaii. i The information from this table is derived from http://sharedrenewables.org/community-energy-projects/ and state statute or regulation.
15
Policy Variation
Table 1. Customer Eligibility for certain Community Solar Facilities by State
State Same electric utility service territory as facility
Same or adjacent county as facility
Unique requirements
California
Colorado
Connecticut
Delaware
Hawaii
Maine
Maryland
Massachusetts
Minnesota
New Hampshire
New York
Oregon
Vermont
Washington
16
• California 100 MW in disadvantaged communities
• Colorado, New York, and Oregon 5 – 20% low-income subscriber requirements
Low-income Requirements
17
• Rhode Island
o H 8354: Enacted new 30 MW community solar program (virtual net metering)
• Idaho Power pilot community solar proceeding
o 500 kW program
Recent Policy Developments
Community and Shared Solar Approaches
Colorado Pathways
Joseph Pereira
Director of Low-Income Energy Services
@pereira1_j
September 21, 2016
The CEO’s vision is to help Coloradans live more prosperous and healthy lives by
promoting innovative energy production and efficient energy consumption
practices that are beneficial to the economic and environmental health of the
state.
DEPARTMENT VISION
MISSION STATEMENT
The CEO’s mission is to improve the effective use of all of Colorado's energy resources
and the efficient consumption of energy in all economic sectors, through providing
technical guidance, financial support, policy advocacy and public communications.
Colorado Energy Office
Community Solar Enabling Legislation
HB 10-1342 (Community Solar Gardens Act)
House Bill 10-1342 was signed by Governor Ritter in 2010 as a way to encourage additional investment in solar energy generation by authorizing the
creation of community solar gardens. This groundbreaking bill has paved the way for Colorado to become a national leader in community solar. The
basics of the bill are as follows:
Renewable Energy Credits (RECs) from the community solar gardens count towards the IOU’s Renewable Portfolio Standard
Solar gardens are required to be 2 megawatts or less
There must be at least 10 subscribers. Each subscription must be at least 1 kilowatt (low-income households are exempt from this requirement)
Subscriptions cannot supply more “than 120% of the average annual consumption of electricity by each subscriber at the premises to which the subscription
is attributed, with a deduction for the amount of any existing solar facilities at such premises”
The subscriber’s physical location must be within the same county or the county adjacent to that of the community solar array
Utility companies must include a provision for low-income customers (Minimum 5% by rule)
LI Community Solar Demonstration Project - Outcomes
• Portfolio of community solar projects solely for low-income households that includes:
• A variety of utility-owned community solar arrays, ranging from 20 kW to 500 kW
• The application of unique customer billing structures
• Innovative client delivery approaches
• A minimum of 1 MW of installed community solar and 300 low-income subscribers tied
to the portfolio of projects
• A model that can be replicated by other utility providers
• Insight into whether shared solar combined with energy efficiency (i.e. weatherization)
services is a viable approach for comprehensively reducing household energy costs
LI Weatherization Assistance Program (WAP)
Rooftop Solar Integration
The CEO’s Weatherization Assistance Program is the first state in the nation to be
granted DOE permission to use rooftop solar as an approved measure to reduce
household energy burden
CEO is integrating rooftop solar into its operations based on the following criteria:
• Cost effective (SIR 1.0) and does not exceed a DOE contribution of $3,545
• Homes with high solar capacity factors
• Customers with high electricity use
• Customers with limited access to community solar offerings
CO Community Solar Landscape
Colorado currently has over 40 community solar projects in operation, totaling
over 30 MW of installed capacity
Projects are distributed across electric cooperatives, municipal and investor
owned utilities.
Low-income user subscriptions are fully subscribed to approximately 1MW of
developer based generation
Trajectory of investor owned community solar offerings expected to grow
exponentially
Xcel Energy Global Settlement
Xcel Energy and 26 solar and consumer interest groups struck a far reaching
compromise on a rate case, a controversial large-scale utility solar program and
the regular review of the state’s renewable energy plan
Replaced a proposed fixed “Grid Use Charge,” with a “Time-of-Use” rate trial and
a “Time Differential Rate” demand charge pilot
Adds a 50MW utility owned market subscription solar product
Resolves Xcel’s RE Plan through 2019
Includes capacity increases in renewable energy programs
Treats all net metered solar owners equitably
Xcel Energy Global Settlement- LI Elements
IOU 5% PUC Rule Requirement Aggregation (4 MW) – Approx. 1,300 customers
Low-Income Solar Rooftop Program (1.5MW) – Approx. 300 customers
Integrated with WAP offering an upfront incentive and a production based incentive
100% LI Community Solar Garden RFP (4 MW Annually) – Approx. 3,900 customers
Upfront incentive or a performance based incentive
LI Standard Offer (.5 MW Annually/ 100 kW max) – Approx. 100 customers
Competitive upfront REC incentive plus $0.01/ kWh
The Colorado Energy Office
@coenergyoffice
MARYLAND COMMUNITY SOLAR
MARYLAND COMMUNITY SOLAR
Courtesy of Vote Solar
Who can’t go solar now in MD?
MARYLAND COMMUNITY SOLAR
• Homeowners with small, shaded, or old roofs
• Renters
• People who live in apartments & condos
• “Community shared solar”, “solar gardens”
• Proportional, not all or nothing and not on your roof
• Solar energy credited to your electric bill
• Same value as if it were on your roof
WHAT IS COMMUNITY SOLAR?
MARYLAND COMMUNITY SOLAR
• Cheaper electricity now and/or in the future
• Fair access to solar for all Marylanders
• Wider participation in our clean energy future
WHY COMMUNITY SOLAR?
MARYLAND COMMUNITY SOLAR
(NOTE: Projects online during pilot stay online after pilot ends)
MARYLAND’S COMMUNITY SOLAR PILOT
MARYLAND COMMUNITY SOLAR
Legislation
passed
Regulations
adopted
Program
Opens
3 year pilot program
May
2015
June
2016
Fall
2016
Late
2016
Projects start
to appear
WHERE WILL IT BE AVAILABLE?
MARYLAND COMMUNITY SOLAR
(NOTE: Participants and solar arrays must be in the same utility area
YES
• Delmarva
• BG&E
• Potomac
Edison
• PEPCO
MAYBE
• Choptank
• SMECO
• Others
Map courtesy of MD OPC
PILOT SIZE
218 MW (1.5% of peak demand by utility)
Utility 2015 Peak
Demand Forecast
1st yr.
0.6%
2nd yr.
0.6%
3rd yr.
0.3%
Total
1.5%
BGE 7,127 MW 43 MW 43 MW 21 MW 107 MW
Pepco 3,458 MW 21 MW 21 MW 10 MW 52 MW
Potomac Edison 1,623 MW 10 MW 10 MW 4 MW 24 MW
Delmarva 1,024 MW 6 MW 6 MW 3 MW 15 MW
SMECO 919 MW 5.5 MW 5.5MW 3 MW 14 MW
Other 393 MW 2.5 MW 2.5 MW 1 MW 6 MW
Total 14,544 MW 88 MW 88 MW 42 MW 218 MW
(approximate sizes)
MARYLAND COMMUNITY SOLAR
CAP CATEGORIES
• 40% Open - Any projects up to 2MW
• 30% Low-to-moderate income (LMI)
• Serving 30%+ LMI with at least 10% low-income
• 30% Small, brownfields and other
• < 500kW
• Rooftops, parking areas, roadways
• Brownfields
• 51%+ LMI subscribers
MARYLAND COMMUNITY SOLAR
WAYS TO PARTICIPATE
1. Buy shared solar energy (subscriber)
2. Own a subscriber organization
3. Host a shared solar array
MARYLAND COMMUNITY SOLAR
CHALLENGE:
LOW AND MODERATE INCOME PARTICIPATION
• Marketing
• Financing availability
• Credit scores
MARYLAND COMMUNITY SOLAR
COMMUNITY OWNED ENERGY EXAMPLE: FARMERS
MARYLAND COMMUNITY SOLAR
THE LATEST
• Tariffs filed and awaiting review by PSC
• Program application queue per utility territory
• SMECO challenge at FERC
MARYLAND COMMUNITY SOLAR
energy.gov/sunshot 41
Poll #2
• Which stage best reflects your current status?
• 1. "just looking"2. Considering feasibility 3. Beginning community solar program design4. Completed program design5. Looking to integrate low income strategy into existing community solar program
energy.gov/sunshotenergy.gov/sunshot
Open Discussion
42
energy.gov/sunshot 43
Next Steps
• Small Group Discussions
• Next few weeks, will meet in groups of ~4-5
• Next webinar will be in December
• Initial Homework questions (more coming soon!):
• Does your state have renewable energy financing strategies in place (e.g. PACE, state energy or green banks, etc.)? What are some pros and cons?
• Are there state tax incentives to reduce the upfront costs (e.g. property tax exemptions, sales tax exemptions, corporate tax credits for green jobs)? Do these expire, and if so, how will that affect your program design?
energy.gov/sunshot 44
Additional Resources
• NREL’s Solar STAT Blog discusses state and local efforts to develop solar markets in the United States https://www.nrel.gov/tech_deployment/state_local_governments/blog/
• National Conference of State Legislators’ Renewable Energy Legislative Update 2015 -http://www.ncsl.org/research/energy/renewable-energy-legislative-update-2015.aspx
• Institute for Local Self-Reliance’s Community Power Map https://ilsr.org/community-power-map/
energy.gov/sunshotenergy.gov/sunshot
Additional Information
energy.gov/sunshot
Net Metering and DG Compensation Policies by State
47
Sources: NC Clean Energy Technology Center, SEIA.
energy.gov/sunshot
Designed to create competition and make clean energy more affordable
Utilities subject to a RPS must obtain renewable energy credits (RECs) for the required percentage of their generation
Renewable Portfolio Standards
48
energy.gov/sunshot
When renewable energy is generated, two things are created:
• Electricity
• Environmental benefits or “attributes” associated with electricity not generated by fossil fuels
RECs account for environmental benefits
What are RECs?
49
Source: Terrapass
energy.gov/sunshot
Renewable Portfolio Standards
50
NC Clean Energy Technology Center. August 2016
energy.gov/sunshot
Some states have specific carve-outs for solar
Allows for SRECs – Solar renewable energy credits
A few states include solar hot water heaters within their definition
Solar Carve-outs
51
energy.gov/sunshot
RPS with Solar or DG Provisions
52
energy.gov/sunshot
Federal Investment Tax Credit (ITC)
Tax Incentives
53
energy.gov/sunshot
Solar Deployment by State
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0 500 1000 1500 2000 2500 3000 3500
California
Arizona
New Jersey
North Carolina
Nevada
Massachusetts
Hawaii
Colorado
New York
Texas
Solar Capacity Installed in 2015 (MW)
Top 10 States
Source: SEIA
energy.gov/sunshot
FIT program typically guarantees that customers who own solar PV will receive a set price from their utility for all of the electricity they export to the grid
• Separate from net metering – the power generated by a utility customer’s system is compensated at the rate set by FIT. Its treated independently from the customer’s own electricity use.
Performance-based incentive
Ex: Dominion Virginia Power’s voluntary FIT approved in March 2013. 5 year contract with participants paying them 15 cents/kWh for PV-generated electricity provided to the grid, well above the 2012 retail rate of 10.5 cents
Feed-In Tariffs
55