Community Solar - National Association of Regional Councils

CSG Webinar
A Look At Community Solar and EECLP
2
Solar Ready II: Regional Partners
3
Solar Technologies
Solar Photovoltaic (PV)
Solar Hot Water
Concentrated Solar Power
4
US Solar Resource
Source: National Renewable Energy Laboratory
5
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Global Market & Module Prices
160
35
140
30
120
25
100
20
80
15
60
40
10
20
5
0
0
GW Installed
Module cost ($/W)
US Solar Market
Cumulative Installed Capacity by Year
20000
18000
16000
Megawatts
14000
12000
10000
8000
6000
4000
2000
0
2007
2008
2009
2010
2011
SEIA/GTM Research U.S. Solar Market Insight™ report Q4, 2014.
2012
2013
2014
Falling PV Prices
US Average Installed Cost for Behind-the-Meter PV
$14.00
Cost per Watt DC
$12.00
$10.00
$8.00
Price in 2013 is
almost half of what
it was in 2009
$6.00
$4.00
$2.00
$-
Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL); Solar
Energy Industries Association Solar Market Insight Q2 2014
Solar Job Growth
Solar Job Growth in the US
200,000
180,000
160,000
140,000
120,000
100,000
SEIA
Estimates
80,000
60,000
The Solar
Foundation
40,000
20,000
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census 2014
(2014), The Solar Foundation’s National Solar Jobs Census 2014 (2011-2014).
9
Community Ownership
“A solar-electric system that provides power and/or
financial benefit to multiple community members.”
U.S. Department of Energy
Source: Seattle City Light
Solar Development
National study found that only…
22-27% of residential roofs
were suitable for on-site
solar
National Renewable Energy Laboratory (NREL). A Guide to Community Shared Solar: Utility,
Private and Non-Profit Project Development. Prepared for the Sunshot Initiative. May 2012.
What Is Community Solar?
Individuals benefit
directly from
energy and/or
other benefits from
system installed in
their utility
territory
Group purchase
discount program
(Solarize)
Crowd-funding
(Solar Mosaic)
Community Solar in the U.S.
Source: http://www.sharedrenewables.org/index.php?option=com_projects&view=display&Itemid=2
Community Solar Variations
 Utility-Sponsored Model
– Utility owns the system and offers a renewable purchase
option to its customers
 On-bill Crediting
– Residents and businesses “invest” and receive a bill-credit
from the system
 Business Enterprise Model
– Individuals form a business and develop a project
 Non-profit “buy a solar panel”
– Donors contribute to system owned by a non-profit
Why Community Solar?
 More customers can participate
(improve equity)
 Customer satisfaction
 Economic development
 Economies of scale with larger
project
 Project can be strategically located
to maximize grid benefits
 Potential for backup power
15
EECLP Solar Loans
 Utility can make a consumer loan and
collect payments or delegate servicing of
the loan to an agent.
 Utility can pay for system without making a loan
and recover its costs through an opt-in tariff for
specific customer or customer class.
 e.g. a community solar opt-in program where
tariff includes both benefits of the project and
loan repayment for customer’s share of the
project
EECLP Solar Loans
 On-bill repayment is okay
 Can recover costs
through the rate-base if
the project reduces peak
demand.
 Other financial
recoupment mechanisms
may also be approved by
RUS.
Opportunities
 Opportunity to lend to
residential, commercial &
industrial customers, small
businesses, farmers.
 Solar output matches well
with electricity use for
pumping, irrigation.
 Small commercial systems
have often been difficult to
finance—a low interest loan
from the Coop could
significantly help these
customer PV markets
EECLP Community Solar Variation
 Coop Utility lends to a third party to own and
manage a PV system.
 Coop Utility allows its customers to purchase
a right to the benefits of that PV system.
 Loan is then repaid by customers who benefit
from the PV system.
 Variation on Community Solar model
currently administered by Municipal Utilities
and Coops
Community Solar: Utility Model
EECLP
Loan
$
Coop Utility
$
ITC
Solar
Installation
eee-
$
$
Case Study:Taos, NM
Kit Carson Electric Cooperative
Photo credit: Clean Energy Collective
 Agreement with Clean
Energy Collective
 98.7 kW solar canopy
project at Taos
Charter School
 Net metering bill
credits for utility
customers
 Online in 2012
Kit Carson Electric Cooperative
Kit Carson
Electric
Cooperative
20-year PPA
agreement
Clean Energy
Collective
Net metering
bill credits for
panel
production
Utility
Customer
$845 for
panel
production
Logan, J.R. The Taos Community Solar Garden Prepares to Bloom. The Taos News. July 31, 2012.
Best Practices
 Engage stakeholders
(ratepayers, solar installers,
regulators, elected officials,
etc.)
 Have a plan for over and
under-subscription
 Decide who owns the RECs
(if applicable)
 Make sure the value
proposition to the customer
is there (ability to reduce
their electric bill with solar)
 Billing and IT systems
Source: SEPA Photo: 25x25
SolarOPs Farmer’s Coop Case Study
• Has a cumulative solar
capacity of more than
1,800 watts per co-op
member
• Employs innovative policy
and financing mechanisms
such as feed-in-tariff
(fixed priced, often at or
lower than electricity
retail price, through longterm contracts), up-front
rebate, and community
solar garden
Resources
Chad Laurent
Meister Consultants Group, Inc.
[email protected]