U.S.%20Photovoltaic%20Markets:%20PV%20Policies%20Leading%20the%20Way

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U.S. Photovoltaic MarketsPV Policies Leading
the Way

• Susan Gouchoe
• North Carolina Solar Center
• NC State University
• ASES 2008
• San Diego, California
• May 6, 2008

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Leading Policy Approaches

• Financial Incentives
• Solar Portfolio Standards
• Simplified Grid Connection
• Net Metering

Coordinated Policies for Sustainable Markets

• Rate Design Revenue Policies
• Solar Access Laws
• Solar in Public Buildings
• Industry Recruitment Support
• Workforce Development
• Local Codes Standards
• Education Marketing

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Financial Incentives for PV

• Direct Incentives (25)
• Rebates
• Grants
• Production Incentives
• Tax Credits Deductions (22)
• Low-Interest Loans (23)
• Sales Tax Exemptions (18)
• Property Tax Incentives (26)
• Local Permit Fee Waivers

( of states)
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Direct Incentives for PV State Programs
2.50-5/W

• 25 state programs
• Other direct incentives
• 12 states - grants
• gt80 utilities - rebates/PBIs
• 9 states - non-profit REC purchases or grants

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Direct Incentives for Solar PV (1997)
10-20 up to 75K
50 up to 10K
Varies by project
2K - 10K
10K - 50K
60K - 1M
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Public Benefit Funds for Renewables
www.dsireusa.org


April 2008
VT 6.6M in 2008 34M from 2004-2011
MT 750,000 in 2008 8.3M from 1999-2009
ME voluntary contributions 411,000 from
2002-2008
MN 16M in 2008 264M from 1999-2017
MA 25M in 2008 525M from 1998-2017
MI 1.7M in 2008 25M from 2001-2017
OR 12M in 2008 182M from 2001-2017
RI 2.2M in 2008 38M from 1997-2017
NY 9.5M in 2008 114M from 1999-2011
WI 5.5M in 2008 97M from 2001-2017
CT 24M in 2008 435M from 2000-2017
NJ 102M in 2008 637M from 2001-2012
IL 5.5M in 2008 99M from 1998-2015
OH 3.2M in 2008 63M from 2001-2010
CA 331M in 2008 4,149M from 1998-2016
PA 950,000 in 2008 63M from 1999-2010
DE 3.5M in 2008 49M from 1999-2017
D.C. 400,000 in 2008 5.1M from 2004-2017
16 state funds DC 6.8B by 2017 (est.)
Denotes funds that do not have defined
expiration dates and do not require future
reauthorization or budgetary approval in
order to continue operations. (These funds are
not scheduled to expire in 2017.)
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The Oregon Energy Trust is scheduled to expire
in 2025.
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Financial Incentives Best Practices

• Stable, long-term incentive, declining over time
• Reasonably easy application process
• Administrative flexibility to modify program
• Cost-effective quality assurance mechanism
• Track program usage details and share data
• Partnerships with banks, installers, nonprofits
• Education outreach

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State Tax Credits Deductions for PV
30 (C)
15 (R)
35
25

• Tax Credits - 15 states
• Tax Deductions - 2 states
• Range 10 - 50
• FL, IA, NE, OK, MD - small PTCs (not shown on
  map)

10 Deduction (C)
(R) Residential (C) Commercial
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DSIRE www.dsireusa.org


May 2008
Renewables Portfolio Standards
ME 30 by 2000 10 by 2017 - new RE
MN 25 by 2025 (Xcel 30 by 2020)
VT (1) RE meets any increase in retail sales by
2012 (2) 20 by 2017
MT 15 by 2015
WA 15 by 2020

• NH 23.8 in 2025

WI requirement varies by utility 10 by 2015
goal
MA 4 by 2009 1 annual increase
ND 10 by 2015
OR 25 by 2025 (large utilities) 5 - 10 by
2025 (smaller utilities)
RI 16 by 2020
SD 10 by 2015
CT 23 by 2020
OH 12.5 by 2025
IA 105 MW

• NV 20 by 2015

• NY 24 by 2013

UT 20 by 2025

• NJ 22.5 by 2021

IL 25 by 2025

• CO 20 by 2020 (IOUs)
• 10 by 2020 (co-ops large munis)

VA 12 by 2022

• PA 18¹ by 2020

CA 20 by 2010
MO 11 by 2020

• MD 20 in 2022

• NC 12.5 by 2021 (IOUs)
• 10 by 2018 (co-ops munis)

• AZ 15 by 2025

• DE 20 by 2019

• DC 11 by 2022

• NM 20 by 2020 (IOUs)
• 10 by 2020 (co-ops)

TX 5,880 MW by 2015
State RPS (25)
HI 20 by 2020
State Goal (6)

• Minimum solar or customer-sited RE requirement
• Increased credit for solar or customer-sited RE
• ¹PA 8 Tier I / 10 Tier II (includes
  non-renewables)

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May 2008
New RPS Policies Goals 9 states since May 2007
ME 10 by 2017
NH 23.8 in 2025
SD 10 by 2015
0.3 solar electric by 2014
OR 25 by 2025 (lg. utilities) 5 - 10 by
2025 (sm. utilities)
OH 12.5 by 2025
IL 25 by 2025
0.5 solar electric by 2025
UT 20 by 2025
MO 11 by 2020
2.4 solar mulitplier
NC 12.5 by 2021 (IOUs) 10 by 2018 (co-ops
munis)
0.2 solar by 2018
State Standard
State Goal
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May 2008
Increased/Expanded RPS Policies5 states since
May 2007
CT 23 by 2020
MD 20 in 2022
2 solar electric
DE 20 by 2019
AZ 15 by 2025
2 solar PV
4.5 DG

• NM 20 by 2020 (IOUs)
• 10 by 2020 (co-ops)

4 solar electric by 2020 0.6 DG by 2015
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May 2008
Solar/DG Provisions in RPS Policies (7,000 MW
solar if targets are met)
WA 2x multiplier for DG
NH 0.3 solar electric by 2014
NY 0.1542 customer-sited by 2013
NJ 2.12 solar electric by 2021
OH 0.5 solar electric by 2025
NV 1 solar by 2015 2.4 to 2.45x multiplier
for PV
PA 0.5 solar PV by 2020
UT 2.4x multiplier for solar
DE 2.005 solar PV by 2019
CO 0.8 solar electric by 2020 3x multiplier for
solar for munis co-ops before July 2015
MD 2 solar electric in 2022
DC 0.386 solar electric by 2022 1.1x
multiplier for solar 2007-09
NM 4 solar electric by 2020 0.6 DG by 2015
AZ 4.5 DG by 2025
NC 0.2 solar by 2018
State Standard
State Goal
15
DG Distributed Generation
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Solar Capacity Required to Meet Solar/DG
Set-Asides
Solar PV and Solar Thermal Source R. Wiser and
G. Barbose, Renewables Portfolio Standards in the
United States, April 2008, LBNL
(http//eetd.lbl.gov/ea/ems/reports/lbnl-154e.pdf)

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Largest RPS Markets for Solar in Near-Term NJ,
AZ, NM, NV, NC, CO
Source LBNL Environmental Energy Technologies
Division / Energy Analysis Department
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Promoting Solar through RPS Policies

• Establish an explicit solar set-aside in the RPS
  that ramps up over time.
• Develop a mechanism for tracking, verifying and
  trading solar renewable energy certificates
  (SRECs).
• Impose a monetary penalty or include an
  alternative compliance payment provision for
  electricity suppliers that do not meet solar
  generation requirements.
• Require long-term power-purchase or SREC
  contracts to ensure project developers can access
  financing.
• Encourage small-scale, distributed systems.

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Interconnection Standards

• Technical issues include safety, power quality,
  system impacts. Technical issues largely
  resolved.
• Policy issues include legal and procedural
  considerations. State approaches vary widely.

Best policies adopted by NJ, OR, CO.
IREC model www.irecusa.org/index.php?id87
Freeing the Grid 2007 www.newenergychoices.or
g/uploads/FreeingTheGrid2007_report.pdf
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Interconnection Standards Best Practices

• Establish state-wide policies that are uniform,
  transparent, detailed, and public
• Set fees and technical requirements proportional
  to a projects size
• Process applications quickly set timetable
• Standardize and simplify forms
• No redundant safety requirements external
  disconnect switch
• No additional insurance requirements for small
  systems

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Net Metering

• Net metering allows customers to generate their
  own electricity and store any excess electricity,
  usually in the form of a kWh credit, on the grid
  for later use.
• Net metering available statewide in 39 states.
• State policies vary dramatically.

Best policies adopted by CO, NJ, PA, MD, CA.
IREC model www.irecusa.org/index.php?id87
Freeing the Grid 2007 www.newenergychoices.or
g/uploads/FreeingTheGrid2007_report.pdf
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Net Metering
DSIRE www.dsireusa.org


April 2008
NH 100 MA 60 RI 1,000/1,650 CT 2,000
100
VT 250
100


100
50

40
25/2,000

20

25/100
30

NY 10/25/125/400 PA 50/3,000/5,000 NJ
2,000 DE 25/500/2,000 MD 2,000 DC
100 VA 10/500

25
no limit

500

1,000


10/25/2,000
25
40
10


25/2,000
1,000
100
15

20/100


80,000
100
25/300
varies

10/100

50
25/100
100
FL 2,000
(KIUC 50)
Net metering is available in 42 states D.C.
Best Practices
State-wide net metering for all utility types
State-wide net metering for certain utility
types only (e.g., investor-owned utilities)

Net metering offered voluntarily by one or more
individual utilities
XXX Individual system size limit in kW. Some
states limits vary by customer type and/or
technology
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Net Metering Best Practices

• Maximum system capacity 2 MW
• All renewables eligible
• All utilities must participate
• All customer classes eligible
• Limit on aggregate capacity 5
• Annual reconciliation of NEG, or no expiration
• No application fee
• No special charges, fees or tariff change
• Customer owns RECs

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Utility Revenue Policies Rate Design

• Utility Revenue Policy
• Many states implementing or considering
  decoupling
• Remove disincentive for EE and DG, by removing
  the link between electricity sales and profits.
• Reward utilities for achieving specific EE/DG
  targets
• Electricity Rate Design
• Minimize Fixed Monthly Charges Demand Charges
• Develop Time-of-Use Energy Rates
• Give Customers Rate Choice

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Solar Access Laws

• Solar easements allow for the rights to existing
  solar access on the part of one property owner to
  be secured from an owner whose property could be
  developed in such a way as to restrict that
  resource. Most common type of solar access law.
• 13 states limit or prohibit restrictions that
  neighborhood covenants and/or local ordinances
  may impose on the use of solar equipment.

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Prohibiting Unreasonable Restrictions by HOAs
and Local Governments

• Define the type of solar energy equipment
  protected by the law
• i.e., solar electric, solar thermal, passive
  solar construction, etc. New Mexico
• Provide a clear and quantifiable standard for
  what constitutes an unreasonable restriction on
  solar energy systems
• i.e., changes for aesthetic reasons cannot
  increase installation costs gt10 Hawaii
• Define the types of structures covered by the law
  
• i.e., residential, commercial. California
• Award costs and reasonable attorneys' fees to the
  prevailing party in any civil action arising from
  disputes with HOAs. Arizona
• Model statute under development
• US DOE Solar America Board for Codes Standards
  (http//www.solarabcs.org)

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Lead by Example Solar in Public Buildings

• Green building or efficiency standards for new
  state facilities (21)
• Goals to reduce energy usage (18)
• Evaluate or conduct life-cycle cost analysis to
  include solar or renewables, if feasible, in new
  state facilities (8)
• Derive specified of energy for state facilities
  from RE purchase green power or install RE
  systems (11) Ex. MA use of CREBs
• Install solar by 1/1/09 on any public facility,
  new or existing, if cost-effective over the life
  of the system California
• Invest in solar at a level of at least 1.5 of
  the total contract price for new state projects
  Oregon

( of states)
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Industry Recruitment Development

• Tax Credits
• OR - 50 of the construction costs of facility
  for manufacturing RE equipment
• NM - 5 of the cost alternative energy
  manufacturing equipment
•   Loans
• MA Business Expansion Initiative - 500K - 3M
  loans to support RE companies entering or
  expanding the manufacturing stage of commercial
  development.
• Grants
• NYSERDA Manufacturing Incentive Program -
  facility/site characterization pre-production
  development and incentive payment based on
  product sales. 1.5M/project 10M for program
• Property Tax Abatement
• MT - new RE production facilities, new RE mfg.
  facilities, and RE RD assessed at 50 of taxable
  value for property tax purposes. 35 tax credit
  also available.
• Higher Incentives for Using Components
  Manufactured In-State
• Washington State, Massachusetts

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Leading Policy Approaches

• Financial Incentives
• Solar Portfolio Standards
• Simplified Grid Connection
• Net Metering

Coordinated Policies for Sustainable Markets

• Rate Design Revenue Policies
• Solar Access Laws
• Solar in Public Buildings
• Industry Recruitment Support
• Workforce Development
• Local Codes Standards
• Education Marketing

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www.pandorasboxoc.com
Dreaming Sun Tapestry Wall Hanging
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The DSIRE Project
Database of State Incentives for Renewables
Efficiency

• Created in 1995
• Managed by NC Solar Center in partnership with
  IREC
• Funded by U.S. DOE
• 1,800 RE EE financial incentives regulatory
  policies
• Federal, State, Local, Utility
• 170,000 unique visitors/month

• www.dsireusa.org

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Contact Information
Susan Gouchoe N.C. Solar Center N.C. State
University susan_gouchoe_at_ncsu.edu DSIRE
www.dsireusa.org