Shared Solar: What's Working & What's Next

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Shared solar is one option for energy consumers who want to benefit from the sun's power but don't have the rooftop for it. Only about 25 percent of residential rooftops are capable of hosting solar generation systems. IREC has helped develop shared solar programs across the country. Hear from Erica McConnell about what's working and what’s on the next horizon.

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Shared Solar: What’s Working, What’s Next

Erica Schroeder McConnellKeyes, Fox & Wiedman LLP

October 22, 2014www.irecusa.org

@IRECUSA#3iForum

Why Shared Solar?

I want to benefit from renewable energy generation, but I…

– Rent my apartment– Live in a multitenant building (e.g., a condo)– Have insufficient or problematic roof space

(e.g., too shady)– Am just not interested in on-site generation

(maintenance responsibility, aesthetic issues, etc.)

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Only 25% of residential roofs permit on-site generation

Paidpati, Frantzis, Sawyer and Kurrasch, Nat’l Renewable Energy Lab., Rooftop Photovoltaics Market Penetration Scenarios, (Feb. 2008), available at http://www.nrel.gov/docs/fy08osti/42306.pdf.

Serving More Energy Consumers

If just 5% of U.S. households invested in a 5-kW interest in a shared solar system…

… we’d see over 28 GW of additional solar capacity!http://quickfacts.census.gov/qfd/states/00000.html

The Vote Solar Initiative

Net Metering Shared Solar

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Guiding Principles for Shared Solar

IREC, Model Rules for Shared Renewable Energy Programs (2013), www.irecusa.org/wp-content/uploads/2013/06/IREC-Model-Rules-for-Shared-Renewable-Energy-Programs-2013.pdf

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2006

2007

2008

2009

2010

2011

2012

2013

2014

Future

DC

Based on IREC research as of September 2014, www.irecusa.org

Shared Solar Growth in the U.S.

Statewide Programs Voluntary bill-credit Programs

MD:

DC

Investment-based models

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Program Implementation Over Time

20062007

20082009

20102011

20122013

2014

Planned for 20150

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IOUCo-opMuni

Based on IREC research as of September 2014, www.irecusa.org

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Type of Energy Service Provider

Based on IREC research as of September 2014, www.irecusa.org

25

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Co-opIOUMuni

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Based on IREC research as of September 2014, www.irecusa.org

Installed Kilowatts

9,212

5,825

48,162

MuniCo-opIOU

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Average Program Size

Coop – 253 kW

IOU – 6020 kW

Muni – 709 kW** Excluding SRP 20-MW program

Based on IREC research as of September 2014, www.irecusa.org

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Critical Program Elements

1. Allocating the benefits of participation

2. Valuation of the energy produced

3. Program administration

4. Shared solar facility ownership

5. Shared solar facility size and location

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Additional Considerations

• Number of program participants• Minimum and maximum subscription sizes• Portability and transferability of participation• REC ownership• Consumer protection• And more…

Ultimately, the community’s goals, priorities and constraints determine

what the program looks like11

What’s Next?

• Programs nearing implementation:– Minnesota Community Solar Gardens– Washington, DC Community Renewable

Energy Facilities– California Green Tariff Shared Renewables

programs

– Utility-level projects and programs

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What’s Next?

Policy considerations—how can we:• Maximize grid benefits and minimize

interconnection costs?– Interaction with distribution planning and

interconnection procedures

• Reach more low- and moderate-income consumers?– Interaction with financing opportunities

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Further Resources

www.nrel.gov/docs/fy11osti/49930.pdf

• IREC Shared Renewables Resources: www.irecusa.org/regulatory-reform/shared-renewables

• Shared Renewables HQ: www.sharedrenewables.org

www.irecusa.org www.irecusa.org

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For more information

Erica Schroeder McConnellemcconnell@kfwlaw.com

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