Rhone Resch | Industry Perspective on a National Performance Based Incentive

US Solar Energy Industry’s Perspective on a National Performance Based Incentive

Rhone Resch

Monday, April 10, 2023 © 2009 SEIA 1

US PV Market - 2008

• PV market grew by 71%• On-grid PV grew by 81% • Off-grid PV grew by 21%• Residential +32%• Commercial +110%• Utility +97%• Domestic manufacturing

continues to grow


Domestic PV Cell Manufacturing (MWDC)

2007 2008p Growth

Production 271 414 53%

Capacity 415 685 65%Source: Greentech Media Research/Prometheus Institute


PV Capacity Additions – On vs Off Grid

Sources: SEIA, IREC, PV News

State RPS Solar/DG Carve-Out Impacts

• State RPS requirements will help ensure annual installations stay strong for in over the next few years.

• RPS requirements:– 2009 increase of 37%– 2010 increase of 58%– 2011 increase of 245%

State 2009 2010 2011

AZ 3 5 52

CO 1 1 31

DC 0 0 0

DE 0 0 1

MD 3 9 9

MO 0 0 23

NC 0 5 17

NH 0 4 4

NJ 42 58 63

NM 0 0 144

NV 17 2 17

NY 2 2 2

OH 5 8 26

PA 2 23 16

Total 74 117 404

Solar Capacity Additions Necessary to Satisfy Solar and DG Carve-Outs (MW)

Source: Lawrence Berkeley National LaboratoryIncludes PV and CSP

2008 Breakthrough Success

• Tax Credit Extension - 17 Votes in Congress– Filibustered 9 times

• Bailout Bill – October 3– Extended tax credits for 8 years– Removed residential cap for PV– Repealed utility exemption– Provides AMT relief for commercial and residential

• Additional Solar Legislation Introduced– SOLAR Act– Feed-in Tariff– Solar Reserves

Changes in Washington

• Obama Administration– Carol Browner – WH Energy and Climate Coordinator**– Dr. Steven Chu – Secretary of Energy– Nancy Sutley – Council on Environmental Quality– Lisa Jackson – Environmental Protection Agency– Van Jones – WH Green Jobs Advisor– Cathy Zoi – Assistant Secretary EERE

• Congress– Waxman replaces Dingell Chairman of House Committee on Energy

& Commerce– Markey Subcommittee on Global Warming– Senate – Democrat majority increases, more difficult for Republican

filibuster

HR 1 American Recovery and Reinvestment Act• 19 Provisions to Benefit Solar Companies

– Improves existing tax credits• Refundability• Remove subsidized energy financing penalty

– Improves loan guarantee program– Increases government procurement ($25 billion)– Creates new manufacturing tax credits– State energy program funding ($3.1 billion)– Expands CREBS funding ($1.6 billion)– Funds school repair and construction ($53.6 billion)– Funds water treatment repair and construction ($6 billion)– Supports construction of new transmission– Increases access to federal lands– Increases DOE solar appropriation– Improves tax credit for solar water heating – Funds worker training– Increases profile of solar with top political leaders

Feed-in Tariff Policy Discussion

• Pros– Upside potential and good outcomes in Europe– Rapid, large market development– Encourages broader range of technologies and applications (CSP in

Spain, BIPV in Germany and France)– Local FiTs provide low-cost implementation option for utility’s

compliance with RPS• Cons

– FiTs are difficult to structure, can be a large cost to the government and can lead to market failure

– National FiT inconsistent with US electricity law – Will be a heavy political lift in U.S.

• Education of Congress• Opposition by 4,000 utilities


Feed-in Tariff Policy Discussion

• How to Pass and FiT in the US

– FiT not a single policy but a set of policies with many possible combinations

• Solar Act– Net Metering– Interconnection– Low cost permitting

• Renewable Energy Bank – Energy Bill

• Carbon Cap and Trade– Performance-based cash incentive– Dedicated funding source


Rhone Resch | Industry Perspective on a National Performance Based Incentive

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