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Activity: Identifying Benefits
Right Now During Session After Break
Write answer on card Compile results Group discussion
What is the greatest benefit solar can bring to
your community? [Blue Card]
[Results]
Local economy growth
Local jobs
Energy independence
Stabilizes price volatility
Valuable to utilities
Smart investment
Benefits of Solar Energy
3
Benefit: Economic Growth
Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report http://www.seia.org/research-resources/us-solar-
market-insight
4
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
2006 2007 2008 2009 2010 2011 2012
766% Growth
Benefit: Job Growth
Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census 2010 (2010), The Solar Foundation’s National Solar Jobs Census 2012 (2011-2012). 5
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2006 2007 2008 2009 2010 2011 2012
Solar Job Growth in the US
SEIA
Estimate
sSolar
Foundatio
n
Benefit: Stabilize Energy Prices
Source: NEPOOL 6
$20
$40
$60
$80
$100
$120
2003 2004 2005 2006 2007 2008 2009 2010 2011
$/M
Wh
Boston Area Average Wholesale Price
.
Avoided Energy Purchases
Avoided T&D Line Losses
Avoided Capacity
Purchases
Avoided T&D Investments
Fossil Fuel Price Impacts
Backup Power
Benefits: Valuable to Utilities
7
0
5
10
15
20
25
30
Low High
Fuel Price Mitigation
Distribution
Capacity ValueDistribution Energy
ValueTransmission
Capacity Value
Benefits: Valuable to Utilities
Source: http://www.asrc.cestm.albany.edu/perez/2011/solval.pdf 8
Value to the utility is 10 to 25 cents beyond the value of the
electricity
Solar homes sold
20% fasterand for
17% morethan the equivalent non-solar homes
in surveyed California subdivisions
Benefit: Smart Investment for Homes
Source: http://www.nrel.gov/docs/fy07osti/38304-01.pdf 9
From NREL:
Source: Tracking the Sun IV, SunRun
10
$ 16,500
$ 33,000
$ 49,500=
=
=3 kW
6 kW
9 kW
added sale premium
added sale premium
added sale premium
From SunRun:
Benefit: Smart Investment for Homes
Benefit: Smart Investment for
Business
Source: Solar Energy Industries Association
0 10 20 30 40 50 60 70
Walmart
Kohl's
Macy's
Johnson and Johnson
Campbell's Soup
Bed Bath and Beyond
General Motors
White Rose Foods
Snyder's
Hartz Mountain
Solar Capacity (MW)
Top 20 Companies by Solar Capacity
$47.3 million worth
of electricity annually
Benefit: Smart Investment for Government
Source: Borrego Solar 13
Activity: Addressing Barriers
Right Now During Session After Break
Write answer on card Compile results Group discussion
What is the greatest barrier to solar adoption in
your community? [Green Card]
[Results]
Some things you may hear…
My area isn’t
sunny enough for
solar
Going solar is too
expensive
Solar is not ready to
compete as a serious
energy source
The government should
not “pick winners and
losers”
Fact: Solar works across the US
Source: National Renewable Energy Laboratory 17
Fact: Solar is a ubiquitous resource
Source: Perez & Perez. 2009. A fundamental look at energy reserves for the planet.
0
5,000
10,000
15,000
20,000
25,000
Solar Coal Uranium Petrolium NaturalGas
Tera
wat
t Ye
ars
Resource Availability
Available annually
Fact: Solar is cost competitive
19
$0
$2
$4
$6
$8
$10
$12
1998 2012
Co
st p
er W
att
US Average Installed Cost for Behind-the-Meter PV
Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from 1998-2010 (LBNL), SEIA/GTM Research Solar Market Insight 2012 Year-in-Review.
Fact: Solar is cost competitive
Tracking the Sun IV: The Installed Cost of Photovoltaics in the US from 1998-2010 (LBNL), SEIA/GTM Research Solar Market Insight
2012 Year-in-Review. 20
$0
$2
$4
$6
$8
$10
$12
1998 2012
Co
st p
er W
att
US Average Installed Cost for Behind-the-Meter PV
52% drop in price2010 - 2012
Fact: Solar is cost competitive
Source: Bloomberg 21
2012
Fact: Solar is cost competitive
Source: Bloomberg 22
2020
Sources: DBL Investors 23
Fact: All energy is subsidized
$-
$1.00
$2.00
$3.00
$4.00
$5.00
Oil and Gas Nuclear Biofuels Renewables
20
10
$ (
Bill
ion
s)Historical Average of Annual Energy Subsidy
1918-2009 1947-1999 1980-2009 1994-2009
$4.86
$3.50
$1.08
$0.37
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
US Solar Cost German SolarCost
$ p
er
Wat
t
Comparison of US and German Solar Costs
Column1
Non-Hardware Cost
Hardware Cost
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$ p
er
Wat
t
Interconnection
Financing
Permitting
Customer
Acquisition
Barriers Still Exist
Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf)
(http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)
Solar Soft Costs
Q & A
Solar 101
Creating a Regulatory Landscape for Solar
Texas Policy Environment
Break
Benefits and Barriers Activity
Strategies to Grow Your Solar Market
Break
Panel of Local Speakers
Wrap Up and Closing Remarks
Agenda
08:40 – 09:00
09:00 – 09:20
09:20 – 09:50
09:50 – 10:00
10:00 – 10:20
10:20 – 10:50
10:50 – 11:00
11:00 – 12:00
12:00 – 12:15
Cost
+ Installed Cost
+ Maintenance
- Direct Incentive
Benefit
+ Avoided Energy Cost
+ Excess Generation
+ Performance Incentive
The Solar Equation
Cost
+ Installed Cost
+ Maintenance
- Direct Incentive
Benefit
+ Avoided Energy Cost
+ Excess Generation
+ Performance Incentive
The Solar Equation
Incentives
FederalInvestment Tax
CreditAccelerated Depreciation
QECBs
StateLoanSTAR
Revolving Loan Program
Energy Device Franchise Tax
Deduction
UtilityDenton MuniSolar Rebate
Program
CoServ
Solar Rebate Program
Oncor Electric
Solar Standard Offer Program
Incentives
FederalInvestment Tax
CreditAccelerated Depreciation
QECBs
StateLoanSTAR
Revolving Loan Program
Energy Device Franchise Tax
Deduction
UtilityDenton MuniSolar Rebate
Program
CoServ
Solar Rebate Program
Oncor Electric
Solar Standard Offer Program
Type: Tax Credit
Eligibility: For-Profit Organization
Value: 30% of the installation cost
Availability: Through 2016
Investment Tax Credit
Accelerated Depreciation
0%
20%
40%
60%
80%
100%
0 3 6 9 12 15 18 21 24
Pro
ject
Val
ue
Year
Modified Accelerated Cost-Recovery System
(MACRS)
Straight Line
50% Bonus (2012)
MACRS (2013+)
$
QEC
B
Qualified Energy Conservation Bond
US Treasury Local Gov
Community
Project
QEC
B$
Qualified Energy
Conservation Bond
+
3.7%+
2.3%
$
Qualified Energy Conservation Bond
US Treasury Local Gov
Community
Project
QEC
B
Incentives
FederalInvestment Tax
CreditAccelerated Depreciation
QECBs
StateLoanSTAR
Revolving Loan Program
Energy Device Franchise Tax
Deduction
UtilityDenton MuniSolar Rebate
Program
CoServ
Solar Rebate Program
Oncor Electric
Solar Standard Offer Program
LoanSTAR Revolving Loans
• 2013 Budget Allocation: $40 million
• Maximum loan amount of $7.5 million
– 2% interest rate
• Loan recipients can be cities, counties, independent school
districts, state agencies, public institutions of higher education,
and tax-district supported public hospitals.
• Application deadline of June 7, 2013 for this round
Energy Device Franchise Tax Deduction
• Entities subject to the franchise tax (corporate tax) may
deduct the cost of the solar energy device from their
franchise tax
– the total cost of the system may be deducted from the
company's taxable capital; or,
–10% of the system's cost may be deducted from the
company's income.
Incentives
FederalInvestment Tax
CreditAccelerated Depreciation
QECBs
StateLoanSTAR
Revolving Loan Program
Energy Device Franchise Tax
Deduction
UtilityDenton MuniSolar Rebate
Program
CoServ
Solar Rebate Program
Oncor Electric
Solar Standard Offer Program
AEP (SWEPCO) - SMART Source Solar PV Program
AEP Texas Central Company - SMART Source Solar PV Rebate Program
AEP Texas North Company - SMART Source Solar PV Rebate Program
Austin Energy - Residential Solar PV Rebate Program
City of San Marcos - Distributed Generation Rebate Program
CoServ - Solar Energy Rebate
CPS Energy - Solar PV Rebate Program
Denton Municipal Electric - GreenSense Solar Rebate Program
El Paso Electric Company - Solar PV Pilot Program
Guadalupe Valley Electric Cooperative - Renewable Energy Rebates
Oncor Electric Delivery - Solar Photovoltaic Standard Offer Program
Xcel Energy - Residential and Hard-to-Reach Standard Offer Program
Utility Rebate Programs
DSIRE May 2013
Denton Muni – GreenSense Solar Rebate
• Direct incentive:
– $3.00 per Watt AC
– Maximum of $15,000 per structure
– Applicants qualify only once per 12-month period
– May require pre-inspection and post-inspection by DME
– Must be applied for by a home or rental property owner
– Equipment must come with a five (5) year warranty.
CoServ – Solar Energy Rebate
• Direct incentive:
– $2.00 per Watt AC
– Maximum of $5,000 per structure
– PV systems must be less than or equal to 50 kW, but the rebate is
available only on the first 2.5 kW
Oncor – PV Standard Offer Program
• Direct incentive + performance incentive:
– Residential: $538.79/kW AC
• $0.53/kWh AC
– Non-residential: $538.79/kW AC
• $0.41/kWh AC
– Residential: 1 kW to 10 kW DC
– Non-residential: minimum 1 kW DC
– Maximum rebate is equivalent to 20% of that year’s funding
allocation
Solar Financing Options
Solar Financing Options
Direct Ownership
Third Party Ownership
$$
Direct Ownership
Customer Utility
• Balance Sheet• Debt Financing
Pros
Low – cost electricity
REC revenue
Full ownership
Cons
Large upfront cost
Long term management
Can’t take tax benefits
Development risk
Performance risk
Direct Ownership
$ $ $e- $
Third Party Ownership: PPA
Customer Developer
e-
Power Purchase Agreement
Incentives
www.dsireusa.org / August 2012
Apparently disallowed by state or otherwise restricted by legal barriers
Status unclear or unknown
Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state
Puerto Rico
At least 22 states + PR authorize or
allow 3rd-party solar PV PPAs
Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making bindingfinancial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.
UT: limited to certain sectors
AZ: limited to certain sectors
VA: see notes
RI: may be limited to certain sectors
Third Party Ownership: PPA
In the top 5 solar markets
60-90%
of new installations use third party ownership
Third Party Ownership
Source: NREL (http://www.nrel.gov/docs/fy12osti/54689.pdf
Pros
No upfront cost
No O&M costs
Low risk
Predictable payments
Tax benefits
Cons
Not supported in all states
Don’t keep RECs
Third Party Ownership: PPA
$e- $
Third Party Ownership: Lease
Customer Developer
e-
Lease
Incentives
$ $
No tax incentives for public entities
Pros
No upfront cost
No O&M costs
Low risk
Predictable payments
Keep incentives
Cons
Can’t take tax benefits
Third Party Ownership: Lease
Solar Financing Options
Direct Ownership Direct Ownership Direct Ownership
Third Party Lease
Options for Solar Programs
Solarize QECB’s
Solarize
Solarize
Group Purchasing
Barriers
High upfront cost
Complexity
Customer inertia
Solutions
Group purchase
Community outreach
Limited-time offer
Solarize: Advantages
Solarize: Advantages
Source: NREL, LBNL
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
US Germany
Co
st p
er
Watt
Customer Acquisition
10x the cost for
customer
acquisition
Benefits to Local Government:
Low upfront cost: $5,000 - $10,000 + Labor
Quick turn-around: 9 Months
Long-term impact: Sustainable ecosystem
Solarize: Advantages
Solarize: Process
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
Solarize: Case Study
Source: Wikipedia
Harvard, Massachusetts
Population: 6,520
Solarize: Case Study
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
April 2011 Dec 2011
Solarize Mass Harvard
April 2011
Group Purchasing
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1 kW - 100 kW 100 kW - 200kW
200 kW - 300kW
300 kW +
Harvard Mass Group Purchasing Tiers
Average PV Cost July 2011: $5.75 / watt
Solarize: Case Study
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
April 2011 Dec 2011
Solarize Mass Harvard
May – July 2011
Marketing Strategy:
Electronic survey of 1,100 households
Email newsletters and direct mailings
Float in July 4 parade
Articles and advertisements in local newspaper
Facebook page and online discussion board
Solarize: Case Study
Source: Vote Solar
Solarize: Case Study
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
April 2011 Dec 2011
Solarize Mass Harvard
June – Oct 2011
429 households signed up
Solarize: Case Study
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
April 2011 Dec 2011
Solarize Mass Harvard
Oct 2011
151 feasible households
Solarize: Case Study
Select Installer
Marketing & Workshops
EnrollmentSite
Assessment
Decision &
Installation
April 2011 Dec 2011
Solarize Mass Harvard
Oct –Dec 2011
75 Contracts
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1 kW - 100 kW 100 kW - 200kW
200 kW - 300kW
300 kW +
Harvard Mass Group Purchasing Tiers
Group Purchasing
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1 kW - 100 kW 100 kW - 200kW
200 kW - 300kW
300 kW +
Harvard Mass Group Purchasing Tiers
403 kW capacity contracted
Solarize: Case Study
75 new installations totaling 403 kW
30% reduction in installation costs
575% increase in residential installations
Solarize: Lasting Impact
Source: NREL
Lasting Impact
A roadmap for project
planners and solar advocates
who want to create their
own successful Solarize
campaigns.
www.nrel.gov
Solarize: Resources
Resource The Solarize Guidebook
Solar 101
Creating a Regulatory Landscape for Solar
Texas Policy Environment
Break
Benefits and Barriers Activity
Strategies to Grow Your Solar Market
Break
Panel of Local Speakers
Wrap Up and Closing Remarks
Agenda
08:40 – 09:00
09:00 – 09:20
09:20 – 09:50
09:50 – 10:00
10:00 – 10:20
10:20 – 10:50
10:50 – 11:00
11:00 – 12:00
12:00 – 12:15
