Solar Powering Your Community - Solar Outreach Partnershipsolaroutreach.org/wp-content/uploads/2017/06/Sustainable-Jersey... · 8 $0 ... New Jersey Solar Market Source: SEIA/GTM Research,

Solar Powering Your Community

Solarize South Jersey

The Solar Foundation

[email protected]

Alexander Winn The Solar Foundation

[email protected]

Philip Haddix

a

The SunShot Solar Outreach Partnership (SolarOPs) is a U.S.

Department of Energy (DOE) program designed to increase the use

and integration of solar energy in communities across the US.

About the SunShot Solar Outreach Partnership

Increase installed capacity of solar electricity in

U.S. communities

Streamline and standardize permitting and

interconnection processes

Improve planning and zoning codes/regulations

for solar electric technologies

Increase access to solar financing options

About the SunShot Solar Outreach Partnership

e- e-

Some Basic Terminology

Capacity / Power

kilowatt (kW)

Production

Kilowatt-hour (kWh)

e-

System Components

What benefits can solar bring

to your community?

Benefits: Solar Economic Growth

Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report

http://www.seia.org/research-resources/us-solar-market-insight 8

$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

$18,000,000,000

$20,000,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

~40% CAGR

http://www.seia.org/research-resources/us-solar-market-insight









Benefits: Solar Job Growth

Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census report series 9

0

50,000

100,000

150,000

200,000

250,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015(est.)

Solar Job Growth in the US

SEIA

Estimates

The Solar

Foundation

27 Jobs and $4.2 Million

The Local Economic Opportunity

Source: JEDI Model, NREL

In economic output

1 Megawatt of Residential Solar

Development in New Jersey:

495 solar companies

that employ

7,200 people

Economic Development in New Jersey

Source: SEIA, The Solar Foundation

There are currently

Economic Development in New Jersey

Source: SEIA’s National Solar Database

Benefit: Stabilize Energy Prices

Source: NEPOOL 13

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Mar

-03

Jul-

03

No

v-0

3

Mar

-04

Jul-

04

No

v-0

4

Mar

-05

Jul-

05

No

v-0

5

Mar

-06

Jul-

06

No

v-0

6

Mar

-07

Jul-

07

No

v-0

7

Mar

-08

Jul-

08

No

v-0

8

Mar

-09

Jul-

09

No

v-0

9

Mar

-10

Jul-

10

No

v-1

0

Mar

-11

Jul-

11

No

v-1

1

Mar

-12

Jul-

12

No

v-1

2

Mar

-13

Jul-

13

No

v-1

3

Mar

-14

$/M

Wh

Date

Historical Average Real-Time LMP (NEMABOS)

.

$15,000 $15,000

$11,000 $12,700

$16,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

All Homes California Rest of U.S. New Homes Existing Homes

Average Value Premium for Homes with Solar PV Systems

Smart Investment for Homeowners

Source: LBNL, Selling Into the Sun (2015)

Reduction in Air Emissions

A 5-kW solar PV system produces

6,700 kWh in the first year, equivalent to

4.6 metric tons of avoided CO2 emissions

Water Savings

Annual savings of nearly1,400 gallons of water

Environmental Benefits

Source: NREL PVWatts; EPA Greenhouse Gas Equivalencies Calculator;

http://iopscience.iop.org/1748-9326/7/4/045802/pdf/1748-9326_7_4_045802.pdf

520 gallons of

gasoline

3.8 acres of

U.S. forests







Overview of the State and

National Solar Market

New Jersey Solar Market

Source: SEIA/GTM Research, Solar Market Insight; IREC, Solar Market Trends

0

50

100

150

200

250

300

350

400

450

2008 2009 2010 2011 2012 2013 2014 2015(est.)

2016(est.)

Annual Solar PV Capacity Additions

Res Non-Res Utility Combined

Cumulative Total:

1,524 Megawatts

Source: New Jersey’s Clean Energy Program, “New Jersey Solar Installation Update 5/31/2015”



US Solar Market

Source: Solar Energy Industries Association/ GTM Research, Solar Market Insight: 2014 Year-in-Review

Cumulative Total:

~21,000 Megawatts

0

2000

4000

6000

8000

10000

12000

Cumulative Installed PV Capacity for Select Solar States (MW) Q2 2015

US Solar Market

Source: SEIA, Solar Market Insight Q2 2015

7.25% of US

Capacity

New Jersey Solar Market

Source: SEIA, Solar Market Insight Q2 2015

New Jersey

US

170 watts per person

68 watts per person

World Solar Market

Source: REN 21, Renewables 2015 Global Status Report

Top 5 Countries Solar Operating Capacity (2014)

Germany

China

Japan

Italy

USA

Rest of World

Germany

21.5 %

USA

10.2%

US Solar Resource

Source: National Renewable Energy Laboratory 25

The Cost of Solar PV

Tracking the Sun VIII: The Installed Cost of Photovoltaics in the US from 1998-2014 (LBNL)

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

2002 2004 2006 2008 2010 2012 2014

$/W

dc

Average Installed Cost for Residential Solar in NJ

48% drop in price

2010 - 2014

The Cost of Solar in the US

Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)

LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

US Solar Cost German Solar Cost

$ p

er

Watt

Comparison of US and German Solar Costs

Non-Hardware Cost

Total Installed Cost

http://www.nrel.gov/docs/fy14osti/60412.pdf

http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf



http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf




$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00


$ p

er

Watt


Non-Hardware Cost

Hardware Cost







$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00


$ p

er

Watt


Non-Hardware Cost

Hardware Cost








$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00


$ p

er

Watt


Column1

Non-Hardware Cost

Hardware Cost


Profits, Taxes, &

Overhead








$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00


$ p

er

Watt


Column1

Non-Hardware Cost

Hardware Cost


$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$ p

er

Wat

t

Other Paperwork

Permitting & Inspection

Financing Costs

Customer Acquisition

Installation Labor

Solar Soft Costs








Solar Policies, Incentives, and

Financing

Type: Tax Credit

Eligibility: For-Profit Organizations

Residential Customers

Value: 30% of the installation cost

Availability: Through 2016

Investment Tax Credit

Renewable Portfolio Standard

Retail Electricity Sales

Any electricity source

Renewable

Energy

Renewable Portfolio Standard

Retail Electricity Sales

Any electricity source

Solar carve-out

Renewable

Energy

RPS: New Jersey Overview

New Jersey utilities required to:

Provide 22.5% renewable energy

by 2021

– 11.3% in 2015

Provide 4.1% solar by 2028

– 2.45% in 2015

Utilities may either develop their own renewable resources

or purchase Renewable Energy Certificates (RECs)

Renewable Energy Certificates

e-

REC

$

$

Utility

Home

The New Jersey SREC Market

Systems can sell RECs for first 15

years of operation

Prices determined by market

(currently around $200/MWh)

Past high prices have driven the

New Jersey solar boom

NJ SREC Price History

$0

$100

$200

$300

$400

$500

$600

$700

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$/MWh

Financing Options for Solar

Buy Outright

Lending Third-Party Ownership

Financing Options for Solar

Buy Outright Lending Third Party

Upfront Cost High Low to None Low to None

O&M Costs Customer Customer Developer

Solar Electricity Costs None Predictable Payments Predicable Payments

Difficulty Complex Moderate Easy

Value to Customer Potentially Higher ROI Moderate ROI Shared Benefits

Development Risk Customer Customer Developer

Performance Risk Customer Customer Developer

Net metering allows customers to export

power to the grid during times of excess

generation, and receive credits that can be

applied to later electricity usage.

Net Metering

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

12 AM 4 AM 8 AM 12 PM 4 PM 8 PM

Ave

rage

Ho

url

y kW

h

Household Consumption Solar Generation

Net Metering

Load Met

by Grid

Exports to

Grid

Load Met

by Solar

Net Metering: Market Share

Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)

More than 93% of distributed

PV Installations are net-metered

http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf







Provides a “report card” for

state policy on net metering

and interconnection

http://freeingthegrid.org/

Net Metering: Resources

Resource Freeing the Grid

Net Metering: New Jersey

Source: Freeing the Grid, DSIRE

Applicable Utilities

Investor-owned utilities;

Electric suppliers

Credit Rollover

Monthly excess valued at

retail rate, annual excess

at avoided cost

Program Capacity

Option for BPU to limit to

2.5% of peak demand

(could be increased to 2.9%)

System Capacity Limit

Sized not to exceed

consumption

A 2010 2011 2012 2013 2014

A A A A A A

2015

Solar Access Laws:

1. Increase the likelihood that properties will receive

sunlight

2. Protect the rights of property owners to install

solar

3. Reduce the risk that systems will be shaded after

installation

Solar Access

Solar Access: New Jersey

Solar Rights

Limits on Homeowners Associations ability to restrict solar

10% cost adder limit

Solar Easements

Solar owners allowed to enter into easements with neighbors

Statute provides minimum information required in easement

Reducing Customer

Acquisition Soft Costs with

Solarize


Source: National Renewable Energy Laboratory 50

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$ p

er

Wat

t

Other Paperwork

Permitting & Inspection

Financing Costs


Installation Labor

$0.48 Per watt


5 % of homeowners that request

a quote choose to install solar.

Barriers

High upfront cost

Complexity

Customer inertia


The Solarize Program

Group purchasing for residential solar PV

Barriers

High upfront cost

Complexity

Customer inertia

Solutions

Group purchase

Vetted offer and

standardized process

Limited-time offer

The Solarize Program

Solarize: Partnership

Program Sponsor

Solar Contractor

Citizen Volunteers

Community Residents

Competitive selection

Community ties

Technical knowledge

Marketing & outreach

Campaign support

Neighborhood outreach

Free site assessments

Solar installations

Volume discounts

Tiered pricing

Program participation

Word of mouth

Solarize: Process

Select Installer

Marketing &

Workshops Enrollment

Site Assessment

Decision &

Installation

Solarize: Case Study

Source: Wikipedia

Harvard, Massachusetts

Population: 6,520


Select Installer

Marketing &


Site Assessment

Decision &

Installation

April 2011 Dec 2011

Solarize Mass Harvard

April 2011

Group Purchasing

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1 kW - 100 kW 100 kW - 200 kW 200 kW - 300 kW 300 kW +

Harvard Mass Group Purchasing Tiers

Average PV Cost July 2011: $5.75 / watt


Select Installer

Marketing &


Site Assessment

Decision &

Installation

April 2011 Dec 2011


May – July 2011

Marketing Strategy:

Electronic survey of 1,100 households

Email newsletters and direct mailings

Float in July 4 parade

Articles and advertisements in local newspaper

Facebook page and online discussion board


Source: Vote Solar


Select Installer

Marketing &


Site Assessment

Decision &

Installation

April 2011 Dec 2011


June – Oct 2011

429 households signed up


Select Installer

Marketing &


Site Assessment

Decision &

Installation

April 2011 Dec 2011


Oct 2011

151 feasible households


Select Installer

Marketing &


Site Assessment

Decision &

Installation

April 2011 Dec 2011


Oct –Dec 2011

75 Contracts

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1 kW - 100 kW 100 kW - 200 kW 200 kW - 300 kW 300 kW +


Group Purchasing

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1 kW - 100 kW 100 kW - 200 kW 200 kW - 300 kW 300 kW +


403 kW capacity contracted


75 new installations totaling 403 kW

30% reduction in price of solar

17% of sign-ups converted to sales (50% of site visits)

Over 5x increase in residential installations

Success convinced state agencies to scale program

Solarize: Sample NJ Cost Savings

$3.90/W (2014 State Average)

$3.12/W (20% Solarize Discount)

System Size 5 kW

Annual Production 6,702 kWh

Total Cost $19,500 $15,600

30% Federal ITC ($5,850) ($4,680)

Net Cost $13,650 $10,920

Annual Electricity Savings $1,217

20-yr. Net Present Value $8,322 $10,836

Payback Period 6.7 Years 5.4 Years

Assumptions: Atlantic City TMY2 Weather Data; 1.1 DC to AC ratio; 96% inverter efficiency; 20 degree tilt; 180

degree azimuth; 14.08% total system losses; 0.5% annual degradation rate; 100% debt; 10 year loan @ 5% interest;

20 year analysis period; 8.14% nominal discount rate; 25% federal income tax rate; 6.37% state income tax rate; 0%

sales and property tax rate; 0.5% annual insurance rate; $20/kW/year O&M costs; 30% Federal ITC; $200/SREC for

15 years; Atlantic City Electric RS rate; net metering enabled; 0.6% annual electric cost escalator; 8,386 kWh annual

electric consumption

A household is

0.78% more likely to adopt solar

for

each additional installation in their zip code

Solarize: Lasting Impact

Source: NYU Stern and Yale School of Forestry – Peer Effects in the Diffusion of Solar Panels

Solarize: Lasting Impact

Source: NREL

Lasting Impact

Solarize: National Growth

Over 200 Campaigns in 20 States

Thousands of homes Solarized!

Watch for the Survey Sustainable Jersey will disseminate a short survey to

gauge interest in enrolling in the program and/or in

volunteering for the campaign

Ask Questions Let us help you better understand the program and

its benefits

Sign Up to Volunteer Contact Zachary Nickerson

([email protected]) to help spread the word

Solarize: Next Steps

mailto:[email protected]

A roadmap for project

planners and solar advocates

who want to create their own

successful Solarize campaigns.

www.nrel.gov

Solarize: Resources

Resource The Solarize Guidebook

Solar Powering Your Community - Solar Outreach Partnershipsolaroutreach.org/wp-content/uploads/2017/06/Sustainable-Jersey... · 8 $0 ... New Jersey Solar Market Source: SEIA/GTM Research,

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