Solar Energy The Global and National View Katherine Gensler Manager of Regulatory

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Solar EnergyThe Global and National
ViewKatherine GenslerManager of Regulatory
Legislative AffairsSolar Energy Industries
Association
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Overview

• Introduction to SEIA
• The Solar Market
• Global
• U.S. Market
• The Washington Update
• ITC Extension
• RPS Creation and Expansion
• Global Warming Legislation
• Solar Access
• What Texas Can Do

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Introduction to SEIA

• National trade association for solar companies
• Over 550 member companies
• Represent over 30,000 people employed by solar
• 14 state and regional chapters
• Mission
• To make solar energy a mainstream and significant
  energy source by expanding markets, strengthening
  the industry and educating the public on the
  benefits of solar energy
• Strategic Objectives
• Expand Markets
• Strengthen RD
• Remove Market Barriers
• Improve Education and Outreach
• We Represent Solars Interests in Washington

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PV growing rapidly in key countries

• CAGR of 46 world-wide
• Grid-connected PV is fastest growing market.
• Incentives have driven steep growth in
  installations.
• Average annual global growth rate has been 40
  for the past 5 years.
• PV could capture 30 of market share for new
  capacity additions within next 5-10 years.

Source International Energy Agency (2007).
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New Concentrating Solar Power (CSP) technologies
being pursued
Trough Tower
Dishes Linear Fresnel
Utility-scale power plants for intermediate and
baseload power
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Multiple Factors Driving Growth

• Federal, state, and local policy incentives
• Market volatility and high cost of natural gas
  and oil
• Climate change and likely carbon regulations
• Energy security issues
• Need for increased energy production to meet
  growing demand (China, India, etc.)
• Interest from financial community in next big
  thing
• Influx of talent from the IC industry

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Market demand has stimulated investment in the
solar sector
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and produced associated cost reductions,
Source Historical Data from Navigant (2007).
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driving innovation in business models and
government policy.

• Concept
• Power Purchase Agreements (PPA)
• RPS (with solar carve out)
• Investment and residential tax credits
• REC / Carbon Policy
• Creative Funding Vehicles
• Implementation
• Federal Installations
• LEED / E-Rating
• Clean Renewable Energy Bond
• Property Tax Assessment

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U.S. Solar Resources Are Untapped

• Currently, solar provides less than 0.1 of the
  electricity used in the U.S.
• For the U.S., less than 2 of the land dedicated
  to cropland and grazing could provide all of our
  electricity.
• Covering less than 0.2 of the land on the earth
  with 10-efficient solar cells would provide
  twice the power used by the world.

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Federal PoliciesThe Investment Tax Credit and
More
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ITC Update

• Top Priority for SEIA
• SEIA Goals
• Quick enactment of our best outcome
• 8-year extension of the 30 business ITC
• 6-year extension of the 30 residential ITC
• Strike existing 2,000 limit on residential
  (except for solar hot water systems)
• Alternative Minimum Tax (AMT) relief
• Elimination of the public utility exception

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History of the ITC

• 2005
• Enacted in the Energy Policy Act of 2005
• 2007
• Major lobbying effort
• Energy Bill passed with strong solar provisions
  but no tax title (one vote short)
• Securing Americas Energy Independence Act
• 2008
• Analysis
• Economic Stimulus Bill (one vote short)
• New Approach

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ITC Update

• Close Coordination with other Renewable
  Associations
• Developing Broad Coalition of Support
• Best Buy, Home Depot, Macys, Target, Trane,
  Johnson Johnson, Wal-Mart, Safeway
• Edison Electric Institute, NAM, Chamber of
  Commerce, NAHB, Realtors, Real Estate Roundtable,
  AIA
• Dozens of Governors, NGA, WGA, Mayors, PUCs
• United Steelworkers, Moveon.org
• Sierra Club, NRDC, Greenpeace, Audubon, UCS,
  National Wildlife Fund

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ITC Update

• Three legislative options
• Housing Bill
• Cantwell-Ensign amendment
• Strong solar provisions
• Passed Senate 88-8
• Not paid for
• Conference Committee
• Simple Extenders Bill
• Introduced last week by Sen. Finance Committee
• 1-year extension, no modifications
• HR 5351 (18 billion)
• Decent solar provisions
• Paid for by repeal of oil incentives
• Will be vetoed by White House
• All three legislative options being pursued

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Renewable Portfolio Standards
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Existing State RPS Requirements 25 States and
Washington, D.C.
Source DSIRE, www.dsireusa.org, March 2008
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Solar/DG Provisions in RPS Policies 12 States
and Washington, D.C.
Source DSIRE, www.dsireusa.org, March 2008
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Carbon Policy Where Solar Fits

• Solar energy production is carbon-free
• The technology exists and can be deployed today
• Carbon policy can recognize and monetize solars
  carbon-free attributes
• Goal equal treatment as traditional fossil fuels

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Solar Access Issues

• Interconnection/Net Metering
• Congress willing to address nationally
• Strong opposition from utilities (some limited
  support)
• Issue is not understood by Congress or public
• Multi-year effort necessary
• Restrictive Covenants
• Congress willing to address
• Anticipate opposition be prepared
• Access/Transmission
• Willingness in Congress to address issue
• Partner with utilities, wind and geothermal

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States Can Promote Solar Energy

• Establish consistent interconnection standards
• Adopt generous net metering rules and time-of-use
  rates
• Enact a Renewable Portfolio Standard with a
  solar carve-out
• Eliminate restrictive covenants
• Grant property tax exemption to solar energy
  equipment
• Approve new transmission lines

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