Working Group 3 Policy & Finance
Group Overview
• 17 members • Representing
– Utilities, Solar Industry, Government, Consultants, Universities, Banking etc.
• 2 calls per month • 15 different Policies discussed by group • 3 main policies identified
Group Vision
By creating and supporting innovative approaches to policy and computational financial
development the Policy & Finance Working Group will assist Arizona in becoming a
sustainable global leader in the Solar Energy Industry.
Policy Breakdown
• Divided Policies into 3 sub-groups – Residential, Commercial, Utility Scale
• Similar to Governor's Solar Taskforce
• Focused on deployment of Solar • Policy included financial mechanisms
– Residential & Commercial
Residential
• Solar Readiness Ordinance – Major burden of wide spread residential solar
development – Requires all new residential to be “Solar Ready”
• Single-Family and Duplex
– Increase knowledge on a community basis of ordinance
• Financial – Decrease installation costs approximately 60%-66%
Commercial
• Energy Financing Districts (EFD’s) – AKA Property Assessed Clean Energy (PACE)
• Current AZ Statutes set up for Special Taxing Districts
• Financing – Municipality’s issue bonds/other – Decreases up front cost on property owner – Can be used for Residential and Commercial – Payback over time assessed with Property Tax
Commercial
COUTESY OF THE RENEWABLE AND APPROPRIATE ENERGY LABORATORY (RAEL) UNIVERSITY OF CALIFORNIA, BERKELEY
Commercial
• EDF (PACE) Concerns – “Superior Lien”
• Banking Industry concern • Need to work with Industry • Looking for “Softer lien”
– But still keep financing low
Utility Scale
• Arizona Transmission Initiative (ATI, AZTI…..AZIT)
• Exportation is key – Therefore Transmission is Key
• California Load – Much greater than AZ
• How to get there?
Utility Scale
• Race – NV, NM, UT, WY, OR, all in the running
• AZ set itself apart – Must differentiate benefits to CA
• Arizona Attributes – Natural Gas Generation – Solar Resource
Utility Scale
• Establishment of “Renewable Firm Zones” (RFZ’s) – Inventory under-utilized Natural Gas Plants – Establish solar generation in concert with gas capacity – Increases reliability and balance – Increases payback opportunity for Transmission
developers • Recoup costs faster • Less risk to financiers