•railroad safety
•natural gas pipeline safety
•monitoring the construction
schedule and budget of new
nuclear development in South
Carolina.
Also responsible for
oversight of:
SC Office of Regulatory Staff
Represent the public
interest of South Carolina in
utility regulation for the
major utility industries:
•electric
•natural gas
•telecommunications
•water/wastewater
•transportation
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SC Office of Regulatory Staff
South Carolina Energy Office
In 2014, legislation moved the South Carolina Energy Office from the
State budge and Control Board to the Office of Regulatory Staff.
The South Carolina Energy Office provides resources designed to help
citizens, businesses, and public entities save energy - and money through greater efficiency, better information and enhanced
environmental quality.
The South Carolina Energy Office does not regulate.
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South Carolina Energy Office
Efficiency measures before solar panels!!!
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ConserFund Loan Program
• For state agencies, public k-12
schools and public higher
education
• 30% of the funding is a grant
that does not have to be repaid
ConserFund Plus
Loan Programs Relevant to Solar
• For government and non-profit
• Retrofits, Renewables &
Alternative Transportation
• Prefer to see a simple pay-back
of 8 years or less
http://www.energy.sc.gov/incentives/conserfund
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http://www.energy.sc.gov
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Act 236 passed June, 2014
Renewable Generation Leasing
Net Metering
Distributed Energy Resource Programs
Interconnection Standards
Four Parts:
1.
2.
3.
4.
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Act 236 :
• Establishes guidelines to allow a customer to
generate electricity through the lease of facilities
from a 3rd party.
• Clarifies that a lessor is not an electrical utility.
• Requires leasing entities to have a certificate issued
by the SC Office of Regulatory Staff.
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Leasing Certificate
Application for Certificate is on ORS website.
http://www.regulatorystaff.sc.gov/electric/Pages/LeasingInformation.aspx
Leasing certificate is called a Certificate of Fit, Willing and Able.
Certificate must be issued prior to any business commences.
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Open to everyone – not just customers of IOU’s
Parameters for Leasing
1.
System size restrictions:
Residential customer system ≤ 20 kW AC
Non-residential customer system < 1,000 kW AC, up to 100%
energy offset or 100% of contract demand, whichever is less
2.
3.
Electricity cannot be sold except back to the electric utility that
provides service to the premise.
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5.
4.
Lessor must hold a
certificate from ORS.
3rd Party or “lessor” is the
owner of the facility, not
the homeowner or
business.
Parameters for Leasing
6.
Facility is to be located on
the premise served.
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Leased Facility Registry
• Lessors are required to register facility
installations with ORS no more than 30 days
after installation is complete
• Solar facilities registered as of 4/12/16:
– 288 residential
– 0 non-residential
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Industry Inquiries on Application
and Certification for Leasing
• Receiving about 20 calls a day
• Most callers ask about:
– 3rd party electric sales vs. 3rd party financing vs. leasing
– Utility incentives
– Tax incentives
– County and municipal permitting processes
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List of companies
on ORS website
8 Certificates
issued since
Aug. 2015:
3 companies focused
on non-residential
(<1 MW)
6 applications
pending
Leasing Certificates Issued
5 companies
focused on
residential (20 kW)
Only 2 of these 5
operating in SC
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Leasing Consumer Assistance
Act 236 allows ORS to investigate consumer
complaints related to renewable/solar leasing
specifically:
– Marketing Practices
– Certificate
– Responsiveness of Lessor to consumer
complaints
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Leasing Consumer Assistance
ORS does not have jurisdiction to assist with:
•Leasing Terms and Conditions
•Facility installation
•Lease termination or sale of home
•Insurance, warranty or damage
•Electric output and reliability of facility
•Complaints related to facilities owned by customers
•Local permitting or ordinances
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Consumer Contacts &
Complaints on Leasing
• < 10 complaints within ORS jurisdiction
– Misleading marketing or aggressive sales tactics
• Free electricity or government has already paid for
the electricity
• Representative gives impression of having
relationship with local utility
– No paperwork provided to customer for review
• Most contacts are educational in nature
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Leasing Challenges
Same leasing application applies to all leasing companies no matter their size
SC leasing certificate process is new process.
Confusion between lease to own (no application needed) and operating lease
(application needed)
Overlapping of authority and requirements
Consumer education
Enforcement and monitoring
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Leasing Challenges
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Act 236 Net Metering
• Established:
– New Net Metering Rates
– Methodology for net metering valuation
– Annual True-Up – Pay at Avoided Cost
• Availability:
– First-come, first-serve basis until the total
nameplate generating capacity equals 2% of the
previous 5-yr average of the IOU’s SC retail
peak demand.
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• $0.05097 for
RES, R-TOUD, RTOUE, & SGS
• $0.05095 for all
other schedules
•Rider RNM-1
Duke Energy
Progress, LLC
(DEP)
• $0.05409
• Net Energy Metering
for Renewable
Energy Facilities
South Carolina
Electric & Gas
Company (SCE&G)
2015 Act 236 Net Metering
Valuations
Duke Energy
Carolinas, LLC
(DEC)
• Rider RNM (SC)
Renewable Net
Metering Leaf No.
119
• $0.05595 for RS,
RE, ES, RT & SGS
• $0.05594 for all
other schedules
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1% of
5-Year
Peak
Demand
1% of
5-Year
Peak
Demand
• ¼ of this has to be less
than 20 kW
– 1% Utility Scale – 1-10 MW
– 1% Customer Scale –
<1 MW
• 2% of Utility’s 5-year
retail peak demand
Outcome of a DERP
Utility
Scale
1-10 MW
Customer
Scale
< 1 MW
< 20 kW
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DERP Targets
What is 2% of retail peak demand?
• SCE&G –84 .5 MW total
• Duke – 80 MW total
• Progress –26 MW total
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Interconnection Standards
– Pre Act 236
• Interconnection Standards applied to facilities 1
MW and under.
– Post Act 236
• Interconnection Standards to cover facilities up to
80 MW.
• The Public Service Commission of South Carolina
voted during its March 9, 2016 agenda meeting to
approve the Interconnection Standards.
– Waiting on Final Order.
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Questions?
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