Arizona State University - Soarl Powerngi Your Communtiy · 2017. 12. 28. · Solar Jobs in Arizona. The Solar Foundation – National Solar Jobs Census (2015) and Arizona Solar Jobs

Solar Powering Your CommunityAddressing Soft Costs and Barriers

The SunShot Solar Outreach Partnership (SolarOPs) is a U.S.Department of Energy (DOE) program designed to increase the useand integration of solar energy in communities across the US.

SunShot Solar Outreach Partnership: 2013-16

Increase installed capacity of solar electricity in U.S. communities

Streamline and standardize permitting and interconnection processes

Improve planning and zoning codes/regulations for solar electric technologies

Increase access to solar financing options

SunShot Solar Outreach Partnership: 2013-16

A comprehensive resource toassist local governments andstakeholders in building localsolar markets.

www.energy.gov

www.solaroutreach.org

Resource Solar Powering Your Community Guide

Technical Resources

Solar Development in the US

Source: SEIA 2014 Year In Review Report

As of 2014, the US solar industry installed

645,000 solar installations

93% were residential projects

of which

Putting Solar Energy on the Local Policy Agenda

State of the Local Solar Market

Federal, State, and Utility Policy Drivers

Break and Grab Lunch

Planning for Solar: Getting Your Community Solar Ready

Solar Market Development Tools

Break

Local Speakers

Solar Powering Your Community: Next Steps

Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00

Solar Technologies

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

Solar Technologies

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

Some Basic Terminology

Panel / Module

Cell


Array

e-e-


Capacity / Powerkilowatt (kW)

ProductionKilowatt-hour (kWh)

e-

System Components

System Components – Off-Grid


Residence5 kW

Office50 – 500 kW

Factory1 MW+

Utility2 MW+

Economic d

evelopmen

t & jo

...

Enviro

nmental

& public

hea...

Reduction an

d stab

ilizatio

n ..

Energy

indep

endence & re

si...

Value to

the u

tility

Community prid

eOther

22%

27%

22%

1%

5%

1%

21%

What are the top 3 benefits solar can bring to your community?A. Economic development &

job creationB. Environmental & public

health benefitsC. Reduction and stabilization

of energy costsD. Energy independence &

resilienceE. Value to the utilityF. Community prideG. Other

Benefits: Solar Economic Growth

Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report http://www.seia.org/research-resources/us-solar-market-insight

$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

$16,000,000,000

$18,000,000,000

$20,000,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

~40% CAGR

http://www.seia.org/research-resources/us-solar-market-insight

Benefits: Solar Job Growth

Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census report series

0

50,000

100,000

150,000

200,000

250,000

300,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(est.)

Solar Job Growth in the US

SEIA Estimates

The Solar Foundation

Benefit: Stabilize Energy Prices

Source: NEPOOL

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Mar

-03

Jul-0

3

Nov

-03

Mar

-04

Jul-0

4

Nov

-04

Mar

-05

Jul-0

5

Nov

-05

Mar

-06

Jul-0

6

Nov

-06

Mar

-07

Jul-0

7

Nov

-07

Mar

-08

Jul-0

8

Nov

-08

Mar

-09

Jul-0

9

Nov

-09

Mar

-10

Jul-1

0

Nov

-10

Mar

-11

Jul-1

1

Nov

-11

Mar

-12

Jul-1

2

Nov

-12

Mar

-13

Jul-1

3

Nov

-13

Mar

-14

$/M

Wh

Date

Historical Avg Real-Time LMP (NEMABOS)

.

Valuable to Community & Utilities

Source: Rocky Mountain Institute (http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf)

http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf

an average of $11,000

Smart Investment for Homeowners

Source: LBNL, Selling Into the Sun (2015), non-California homes

A typical residential solar system increases a home’s property value by

Smart Investment for Businesses

Source: SEIA Solar Means Business 2015

0 20 40 60 80 100 120 140 160

WalmartPrologisTarget

AppleCostcoKohl'sIKEA

Macy'sHartz Mountain

Johnson & JohnsonBed Bath and Beyond

FedExIntel

VerizonBerry Plastics Corporation

McGraw HillStaples

WalgreensCampbell's SoupGeneral Motors

Solar Capacity (MW)

Top 20 Companies by Solar Capacity

712 megawattsdeployed by top20 companies asof 2015

Smart Investment for Governments

Source: Borrego Solar

Smart Investment for Schools

Source: The Solar Foundation (http://schools.tsfcensus.org)

Current:

3,752

40,000 –72,000

Potential:

$

$

= $77.8m

$800m=

http://schools.tsfcensus.org/







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00

US Solar Market

Source: SEIA/GTM Research, U.S. Solar Market Insight: 2015 Year-in-Review

Cumulative Total: ~25,600 Megawatts

0

1000

2000

3000

4000

5000

6000

Calif

orni

aAr

izona

New

Jers

eyN

orth

Car

olin

aM

assa

chus

etts

Nev

ada

Colo

rado

Haw

aii

New

Mex

ico

New

Yor

kTe

xas

Penn

sylv

ania

Mar

ylan

dFl

orid

aGe

orgi

aO

hio

Conn

ectic

utTe

nnes

seee

Dela

war

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rego

nIn

dian

aM

issou

riLo

uisia

naIll

inoi

sVe

rmon

tU

S Te

rrito

ries

Was

hing

ton

Wisc

onsin

Mic

higa

nDi

stric

t of C

olum

bia

Uta

hM

inne

sota

Virg

inia

New

Ham

pshi

reSo

uth

Caro

lina

Kent

ucky

Rhod

e Is

land

Mai

neIo

wa

Mon

tana

Wes

t Virg

inia

Alab

ama

Arka

nsas

Idah

oKa

nsas

Miss

issip

piW

yom

ing

Okl

ahom

aN

ebra

ska

Alas

kaN

orth

Dak

ota

Sout

h Da

kota

Installed Capacity by State (MW) 2013

US Solar Market

Source: IREC, Solar Market Trends 2013

12.9 % of US Capacity

Arizona Solar Market

SEIA/GTM Research U.S. Solar Market Insight 2015 Year in Review

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012 2013 2014 2015

Meg

awat

ts

Cumulative Installed Capacity 280 MW CSP Plant

Arizona Solar Market

SEIA/GTM Research U.S. Solar Market Insight 2015 Year in Review

Arizona US

337watts per person

80watts per person

Solar Jobs in Arizona

The Solar Foundation – National Solar Jobs Census (2015) and Arizona Solar Jobs Census (2015)

In 2015, Arizona had

6,922 solar jobs

25% reduction since 2014

roughly

(~11.5% veterans)

World Solar Market

Source: REN 21, 2015

Top 5 Countries Solar Operating Capacity (2014)

GermanyChinaJapanUSAItalyRest of World

Germany21.4 %

USA 10.3%

US Solar Resource

Source: National Renewable Energy Laboratory

High upfront c

ost

Lack

of educa

tion

Lack

of policy

support

Lack

of utili

ty su

pport

Private

interests

Lack

of HOA su

pport

Historic

preserv

ation

Reliabilit

y conce

rns

Envir

onmental

impact

Other

20%

17%

23%

26%

1%1%

5%

0%

2%

5%

What are the top 3 barriers to solar adoption in your community? A. High upfront costB. Lack of educationC. Lack of policy supportD. Lack of utility supportE. Private interestsF. Lack of HOA supportG. Historic preservationH. Reliability concernsI. Environmental impactJ. Other

Regional Workshop SurveysQ: What is the greatest barrier to solar adoption in your community?

Activity: Addressing Barriers

0 50 100 150 200 250 300 350

High upfront cost

Lack of education

Lack of policy support

Lack of utility support

Other

Historic Preservation

Lack of HOA support

Reliability concerns

Environmental Impact

The Cost of Solar PV

Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL); SEIA/GTM Research U.S. Solar Market Insight Report Year-In-Review 2015

$0

$2

$4

$6

$8

$10

$12

$14

1998 2013

Cost

per

Wat

t DC

US Average Installed Cost for Residential PV

33% drop in price2010 - 2013

Avg. for 2015: $3.50/W (SEIA)


Source: Solar Electric Power Association

Cost

of E

lect

ricity

Time

Solar PriceRetail PriceWholesale Price

Stage 1

Today



Cost

of E

lect

ricity

Time


Stage 1 Stage 2

Today



Cost

of E

lect

ricity

Time


Stage 1 Stage 2

Today

The Cost of Solar in the US

Source: SEIA/GTM Research U.S. Solar Market Insight Report Year-in-Review 2015; Fraunhofer ISE Recent Facts about Photovoltaics in Germany 2015; http://energy.gov/eere/sunshot/soft-costs

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

US Solar Cost German Solar Cost

$ pe

r Wat

t

Comparison of US and German Solar Costs

Non-Hardware CostTotal Installed Cost

http://energy.gov/eere/sunshot/soft-costs


$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


$ pe

r Wat

t


Non-Hardware CostHardware Cost




$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


$ pe

r Wat

t


Non-Hardware CostHardware Cost



$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


$ pe

r Wat

t


Column1Non-Hardware CostHardware Cost


Profits, Taxes, & Overhead

Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf) LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )

http://www.nrel.gov/docs/fy14osti/60412.pdf

http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf

http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


$ pe

r Wat

t


Column1Non-Hardware CostHardware Cost


$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$ pe

r Wat

t

Permitting & Inspection

Financing Costs

Customer Acquisition

Installation Labor

Solar Soft Costs

Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf) LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )


http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf

http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

Challenge: Installation Time

Photon Magazine

8 daysfrom inception to completion

GermanyToday

New York City’sGoal 100 days

from inception to completion

0

2

4

6

8

10

12

14

16

18

US Germany

Hou

rs

Average Time to Permit a Solar Installation

Time to Installation

Source: NREL, LBNL

7.2x more man-hoursneeded in the US

Permitting Costs

Source: NREL, LBNL

$-

$0.05

$0.10

$0.15

$0.20

$0.25

US Germany

Cos

t pe

r Wat

t

Average Cost of Permitting in the US and Germany

21x the cost forpermitting in theUS

Consistency and Transparency

through

Standardized Processes

Germany’s Success


$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2010 2012 2014 2016 2018 2020

$/w

att

Change in Soft Costs and Hardware Costs Over Time

Soft CostsHardware Costs

$3.3

2

$3.3

2

$3.2

8

$1.9

0

No change in soft costs between 2010 and 2012

Soft costs remain nearly 2/3s of installed cost

$2.2

4$1

.26

What would be the impact of a 25% reduction in local government-addressable soft costs on the

value of a 5 kW solar investment?

Local Government Impact

Other Assumptions: Muskegon, MI TMY2 Weather Data; 5kW solar PV system (30 deg. tilt, 180 deg. azimuth); 0.86 DC to AC derate factor; 0.5%/year degradation rate; 100% debt financing for 25 years at 5%; 30 year analysis period; 28% federal income tax rate; 7% state income tax rate; 5% sales tax rate; 100% assessment for property taxes at 2% tax rate; 30% federal ITC; Consumers Energy Residential RS Rate; 2.5% annual rate escalator; 8,500 kWh/year electricity consumption

Q4 2015 US Avg. Residential Installed Cost: $3.48/W

Net Present Value: $2,924

Payback Period: 14.8 years

After 25% Reduction in addressable soft costs: $3.26/W

Net Present Value: $3,696

Payback Period: 13.9 years

Difference: $0.22/W

Net Present Value: + 26%

Payback Period: - 6%

Enable local governments to replicatesuccessful solar practices to reduce softcosts and expand local adoption of solarenergy

Workshop Goal







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00

Solar Market: Trends


Cost

of E

lect

ricity

Time


Stage 1 Stage 2

Today

A policy driven market designed to mitigatecosts and increase the value of solar production

Federal Investment Tax Credit

Rural Grants and Loans

State & UtilityRenewable Portfolio Standard

Net Metering Interconnection

Solar Access Other Incentives

A Policy Driven Market

State&

Utility



Renewable Portfolio Standard




State&

Utility

Type: Tax Credit

Eligibility: For-Profit Organization

Value: 30% of the installation cost through 2019

Availability: Steps down 26% in 2020, 22% in 2021,

expires in 2022

Credit available if construction commences before end of year (rather than system operational)

Investment Tax Credit

Type: Accelerated depreciation

Eligibility: For-Profit Organization

Value: Depreciate solar asset over 5 years (vs. lifetime

of system)

Modified Accelerated Cost Recovery System (MACRS)

Type: Federal Grant and Loan Program

Eligibility: Rural small businesses and agricultural producers

Renewable energy grant: 25% of project cost

Energy efficiency grant: 25% of project cost

Loan Guarantees: 75% of project cost up to $25 million

http://www.rurdev.usda.gov/bcp_reap.html

USDA Rural Energy for America Program

Type: Federal loans

Eligibility: Rural Cooperative and Municipal Utilities

Low-cost lending based on treasury rate

Can be passed on to customers with on-bill repayment

Complex application process for non-RUS borrowers

http://www.rd.usda.gov/programs-services/energy-efficiency-and-conservation-loan-program

Rural Utilities Service EECLP







State&

Utility







State&

Utility

Renewable Portfolio StandardRetail Electricity Sales

Any electricity source

Renewable Energy

Renewable Portfolio StandardRetail Electricity Sales

Any electricity source

Solar carve-out

Renewable Energy

RPS Impacts: Solar Deployment

Source: DSIRE Solar (http://dsireusa.org/documents/summarymaps/Solar_DG_RPS_map.pdf ); Solar Energy Industries Association/ GTM Research Solar Market Insight 2013 Year-in-Review

Ranks

State RPS? Solar/DG Provision?

1 California Y N

2 Arizona Y Y

3 New Jersey Y Y

4 North Carolina Y Y

5 Nevada Y Y

6 Massachusetts Y Y

7 Hawaii Y N

8 Colorado Y Y

9 New York Y Y

10 New Mexico Y Y

RPS and Solar/DG Status of Top Ten Solar States by Cumulative Installed Capacity (as of Q4 2013)

http://dsireusa.org/documents/summarymaps/Solar_DG_RPS_map.pdf

29 states,+ Washington DC and 2

territories,haverenewable portfolio

standards(8 states and 2 territories have

renewable portfolio goals).

www.dsireusa.org / March 2015

Renewable Portfolio Standard







State&

Utility

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

12 AM 4 AM 8 AM 12 PM 4 PM 8 PM

Aver

age

Hou

rly k

Wh

Household Consumption Solar Generation

Net Metering

Load Met by Grid

Exports to Grid

Load Met by Solar

Net metering allows customers to exportpower to the grid during times of excessgeneration, and receive credits that can beapplied to later electricity usage.

Net Metering

Net Metering: Market Share

Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)

More than 93% of distributedPV Installations are net-metered

http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf

Net Metering

44 states,+ Washington DC and 4 territories,have net metering policies

www.dsireusa.org / March 2015

Net Metering

Source: The 50 States of Solar 2015 Policy Review and Q4 Quarterly Update (http://www.mc-group.com/wp-content/uploads/2016/02/50sosQ4-FINAL.pdf)

http://www.mc-group.com/wp-content/uploads/2016/02/50sosQ4-FINAL.pdf

Provides a “report card” forstate policy on net meteringand interconnection

http://freeingthegrid.org/

Net Metering: Resources

Resource Freeing the Grid







State&

Utility

Standardized interconnection rules requireutilities to provide a fair and transparentpathway for customer-generators and otherdevelopers of distributed energy resources tointerconnect with the utility’s grid.

Interconnection

Interconnection

Photon Magazine; NREL – Ardani et al. 2015 (http://www.nrel.gov/docs/fy15osti/63556.pdf)

• A 2015 NREL study analyzed 5 of the major solar markets in the U.S. and found that the median time for utility interconnection was 53 days– Median times in CA and AZ: 50 days and 54 days

• AZ has no standard timeframe requirements for interconnection (though AZ utilities do much better than some states that have such requirements!)

– Only 7 states received an “A” grade from Freeing the Grid on their interconnection standards








State&

Utility

Solar Access

Source: Google Earth

A landowner does not have any legal right to the free flowof light and air across the adjoining land of his neighbor.

Fontainebleau Hotel

Eden Roc Hotel

Solar Access Laws:

1. Increase the likelihood that properties will receive sunlight

2. Protect the rights of property owners to install solar

3. Reduce the risk that systems will be shaded after installation

Solar Access

Solar Access

Source: Database of State Incentives for Renewables & Efficiency (www.dsireusa.org)

Solar Easements Provision

Solar Rights Provision

Solar Easements and Solar Rights Provisions

U.S. Virgin Islands

DC

Local option to create solar rights provision

A comprehensive review ofsolar access law in the US –Suggested standards for amodel ordinance

www.solarabcs.org

Solar Access

Resource Solar America Board for Codes & Standards







State&

Utility







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00

Local Policy Planning for Solar

Solar in Development

Regulation

Effective Solar Permitting Process

Solar Market Development

Tools

Effective Local Solar Policy

Local Solar Policy



Regulation



Tools


Local Solar Policy

Visioning & goal setting

Visioning: Scales & ContextsEvery community is different!Is solar on residential rooftops appropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is solar on commercial rooftops appropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is solar on historic structures appropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is solar on brownfields appropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is solar on greenfieldsappropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is solar on parking lots appropriate for your community?

Visioning: Scales & ContextsEvery community is different!Is building-integrated solar appropriate for your community?

Neighborhood Plans Corridor Plans Special District

Plans

Green Infrastructure

PlansEnergy Plan Climate Action

Plan

Planning for Solar Development

Source: American Planning Association

Communitywide Comprehensive Plan

A guide for planners on determining and implementing local solar goals, objectives, policies, and actions

www.planning.org

Resource Planning for Solar Energy

Technical Resources



Regulation



Tools


Local Solar Policy

Zoning Standards

Source: American Planning Association

Section Topics to Address

Definitions Define technologies & terms

Applicability Primary vs. accessory use

Dimensional Standards• Height• Size

• Setbacks• Lot coverage

Design Standards • Signage• Disconnect

• Screening• Fencing

Typical Requirements:

Permitted as accessory use

Minimize visibility if feasible

Requirements:– District height– Lot coverage– Setback

Zoning Standards: Small Solar


Allowed for primary use in limited locations

Requirements:– Height limits– Lot coverage– Setback – Fencing and Enclosure

Zoning Standards: Large Solar

Zoning Standards: Model Ordinances

Resource American Planning Association

This Essential Info Packet provides example development regulations for solar.

https://www.planning.org/pas/infopackets/open/pdf/30intro.pdf

https://www.planning.org/pas/infopackets/open/pdf/30intro.pdf


Prevent permanent loss of “character defining” features

Zoning Standards: Historic

Solar installation on rear of building out of sight from public right of wayHeritage Hill Historic District of Grand Rapids, Michigan

(Source: Kimberly Kooles, NC Solar Center)

Possible design requirements– Ground mounted– Flat roof with setback– Panels flush with roof– Blend color

Zoning Standards: Historic

Resource North Carolina Clean Energy Technology Center

Provides sample design principles and example regulations incorporating historic preservation into sustainability and energy projects.


http://www.solaroutreach.org/

Private Rules on Residential Solar

Resource The Solar Foundation

Guide for HOAs on solar access law and simple recommendations for reducing barriers to solar in association-governed communities.


http://www.solaroutreach.org/

Provide clear, unambiguous design guidelines

Post rules and requirements online

Provide a list of all required documents

Waive design rules that significantly increase cost or decrease performance

Allow exceptions from tree removal rules for solar

Solar in HOAs: Best Practices

Solar Ready Construction:Preparing a building for solar at the outset canhelp make future solar installations easier andmore cost effective.

Update Building Code

Require builders to:

Minimize rooftop equipment

Plan for structure orientation to avoid shading

Install a roof that will support the load of a solar array

Record roof specifications on drawings

Plan for wiring and inverter placement


$-

$1,000

$2,000

$3,000

$4,000

$5,000

During Construction After Construction

LaborEquipment


Source: Solar Ready: An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011.

60% Savingswhen a building is

solar ready

Installation Soft Costs

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$ pe

r Wat

t

Other Paperwork


Financing Costs


Installation Labor

$0.39Per watt

Source: NREL (http://www.nrel.gov/docs/fy13osti/59155.pdf)

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Add

ed C

ost

Per W

att

Current Trajectory Roadmap Target

Installation Labor Roadmap




Regulation



Tools


Local Solar Policy

18,000+ local jurisdictions with unique zoning and permitting requirements

Challenge: Inconsistency

Source: http://www.nrel.gov/docs/fy12osti/54689.pdf


Consumer Challenges

Source: Forbes

Regulatory Barriers

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$ pe

r Wat

t

Other Paperwork


Financing Costs


Installation Labor

$0.14Per Watt

Planning & Permitting Roadmap

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Add

ed C

ost

Per W

att

Current Trajectory Roadmap Target

Sample of Arizona Jurisdictions

Source: Arizona Rooftop Solar Challenge, 2013 http://www.azenergy.gov/doclib/AZ-Rooftop-Challenge.pdf

Estimated permitting time reported by 40 AZ jurisdictions to the Arizona Rooftop Solar Challenge team in 2013

http://www.azenergy.gov/doclib/AZ-Rooftop-Challenge.pdf

Solar Developer Perspective:– Unclear or inconsistent requirements– Lengthy application review process, even for small

projects– High or inconsistent fees– Multiple inspections and long inspection

appointment windows– Lack of familiarity with solar

Added together, these cost a lot of time and money!

Identifying Challenges

Local Government Perspective:– Solar permitting is a small portion of everything

else local governments do– Many local governments are resource-constrained– Inexperienced installers submit incomplete

applications– Installations do not match design drawings

Importance of balancing government needs and demands with encouraging

solar energy and economic development

Identifying Challenges

Responsibility for change should be shared between permitting authorities and the solar industry. Changes to permitting

policies should benefit both local governments and solar installers (as well as their customers).

Implementing Improvements

www.irecusa.org/sharing-success/

http://www.irecusa.org/sharing-success/

Solar Permitting Best Practices:

Post Requirements Online

Implement an Expedited Permit Process

Enable Online Permit Processing

Ensure a Fast Turn Around Time

Expedited Permitting

Source: IREC/ Vote Solar

Solar Permitting Best Practices:

Collect Reasonable Permitting Fees

No Community-Specific Licenses

Narrow Inspection Appointment Windows

Eliminate Excessive Inspections

Train Permitting Staff in Solar

Expedited Permitting

Source: IREC/Vote Solar

Expedited Permitting: Case Study

Source: Wikipedia

Breckenridge, ColoradoPopulation: 4,540

Breckenridge charges no fees to file for a solar permit


No permit fee

Breckenridge offers a short turn around time for solar permits


Source: Vote Solar (http://votesolar.org/wp-content/uploads/2011/03/COPermitReport.pdf)

No permit fee< 4 business days

http://votesolar.org/wp-content/uploads/2011/03/COPermitReport.pdf


Source: Breckenridge, CO (http://www.townofbreckenridge.com/index.aspx?page=694)

Electronic materials

Standardized permitrequirements

http://www.townofbreckenridge.com/index.aspx?page=694

Permitting: Best Practices

Resource Interstate Renewable Energy Council

Outlines leading best practices in residential solar permitting and provides examples of implementation.

http://projectpermit.org/wp-content/uploads/2013/04/Expanded-Best-Practices-7.23.13_VSI.pdf

http://projectpermit.org/wp-content/uploads/2013/04/Expanded-Best-Practices-7.23.13_VSI.pdf

Expedited Permitting:

Simplifies requirements for PVapplications

Facilitates efficient review ofcontent

Minimize need for detailedstudies and unnecessary delays

Model Permitting Process

Resource Solar America Board for Codes & Standards

1-1. Example Design Criteria:• Size < 10-15 kW• Code compliant• Weight < 5 lb / sqft• 4 strings or less







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00



Regulation



Tools


Local Solar Policy

Understanding solar financing

Expanding financing options

Addressing customer acquisition

Third Party Ownership

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$ pe

r Wat

t

Other Paperwork


Financing Costs


Installation Labor

$0.21Per watt

Cost

+ Installed Cost

+ Maintenance

- Direct Incentive

Benefit

+ Avoided Energy Cost

+ Excess Generation

+ Performance Incentive

The Solar Equation

The Solar Finance Problem

-$20,000

-$15,000

-$10,000

-$5,000

$0

$5,000

$10,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

Annual Savings

Tax Credit

System Cost

Cumulative Cost

Solar Financing Options


Traditional Lending

Utility-Owned Solar



Traditional Lending

Utility-Owned Solar

$ $ $e- $


Customer Developer

e-

Power Purchase Agreement

Incentives


Source: GTM Research/ Solar Energy Industries Association, U.S. Solar Market Insight 2012 Year-in-Review& U.S. Solar Market Insight Q2 2014

0

10

20

30

40

50

60

70

80

90

100

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

%

CaliforniaArizonaColoradoMassachusettsNew JerseyNew York

2011 2012 2013 2014

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 statePuerto Rico

Third Party Ownership: State PolicyThird Party Ownership is not always available



Traditional Lending

Utility-Owned Solar

Fewer than 5%of the

6,500 banks in the USare

actively financing solar PV projects

Engage Local Lenders

Third Party Ownership: Cost

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Third Party Ownership Direct Ownership with Debt

Weighted Average Cost of Capital

Secured loan– Admirals Bank: 4.95% - 9.95%

Unsecured loan– Admirals Bank: 9.99% - 11.99%

Federal loan– HUD PowerSavers: 7.98%

RUS loans

Financing Options

Milwaukee SHINES– Partnership with Summit Credit Union– 4.5% (5-year) and 5.25% (15-year) options

Austin Energy Power Saver Loans– Partnership with Velocity Credit Union– Market-variable rate

Opportunities to improve lending options by offeringloan loss reserves or credit enhancements

Municipal – Lender Partnership

Municipal partnerships can beat existing options

A guide for local governmentsseeking to engage financialinstitutions


Engage Local Lenders: Resources

Resource Local Lending for Solar PV



Traditional Lending

Utility-Owned Solar

Utility Options for Distributed Solar

Centrally owned solar

Utility-owned rooftop solar

Customer-owned with On-Bill Financing

Community Solar

Utility-Owned Solar

Utility pays for and owns rooftop system

Customer either:1. Purchases energy from the system at a special rate

2. Purchases energy from the grid but receives a monthly paymentfor hosting

Examples: Arizona Public Service Tuscon Electric Power CPS Energy (San Antonio)

Utility-Owned Rooftop Solar

Utility pays for customer-owned rooftop system1. Customer repays cost of system through added charge

on electric bill

2. Proven Concept for Electric Coops for energyefficiency program

Examples: Roanoke Electric Coop

(North Carolina)

How$martKY(coalition of five Kentucky Cooperatives)

Utility On-Bill Financing

Utility lends money to solar developer1. Developer constructs large system and claims tax credit

2. Utility allows customers to purchase portion of system

3. Utility credits customer bills for the solar they own

4. Upfront cost repaid by customer purchases

Utility-Run Community Solar

$

$

Coop/MuniUtility

$

$

Community Solar: Utility Model

Solar Installation

e-

e-

e-

ITC

EECLP Loan

Community Solar in the U.S.

Source: http://www.sharedrenewables.org/index.php?option=com_projects&view=display&Itemid=2

57 Community Solar programs to date, all but 5 are utility-led


Source: National Renewable Energy Laboratory

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$ pe

r Wat

t

Other Paperwork


Financing Costs


Installation Labor

$0.32Per watt


5 % of homeowners that request a quote choose to install solar.

Barriers

High upfront cost

Complexity

Customer inertia


The Solarize Program

Group purchasing for residential solar PV

Barriers

High upfront cost

Complexity

Customer inertia

Solutions

Group purchase

Vetted offer

Limited-time offer

The Solarize Program

Solarize: Partnership

Program Sponsor

Solar Contractor

Citizen Volunteers

Community Residents

Community tiesTechnical knowledge

Campaign supportNeighborhood outreach

Solar installationsVolume discounts

Program participationWord of mouth

Solarize: Process

Select Installer

Marketing &

WorkshopsEnrollment Site

Assessment

Decision &

Installation

Solarize Plano: Case Study

Plano, TexasPopulation: 272,000


Select Installer

Marketing &


Assessment

Decision &

InstallationJuly – August 2013

July 2013 February 2014


Tier 1(1 kW - 15 kW)

Tier 2(15 kW - 35 kW)

Tier 3(35 kW - 55 kW)

Tier 4(55 kW - 80 kW)

Tier 5(80 kW +)

Pricing Tiers

Prevailing solar market price20% discount


Select Installer

Marketing &


Assessment

Decision &

InstallationJuly – August 2013


Marketing Strategy: Used Google for online

communications Online Solar 101

presentations and videos Local newspaper and

media Utility bill insert


Source: Solarize Plano & NCTCOG

0 20 40 60 80

Friend

HOA

Info Session

LGP Newsletter

Newspaper Article

nextdoor.com

NTREG

Other

PSA Blog

Social Media

Utility Bill Insert

How did you lean about Solarize Plano?


Select Installer

Marketing &


Assessment

Decision &

Installation

July 2013

Aug – Sep 2013

220 households signed up

February 2014


Select Installer

Marketing &


Assessment

Decision &

InstallationSeptember 2013

49 sites assessed



Select Installer

Marketing &


Assessment

Decision &

InstallationJan – Feb 2014

23 finalcontracts


Solarize Plano: Case StudyResults:

23 new installations totaling 112 kW45% of assessed sites signed contracts

20% reduction in solar price

Round 2 of Solarize Plano in 2014

5 new Solarize communities in Texas

A household is

0.78% more likely to adopt solar

for

each additional installation in their zip code

Solarize: Lasting Impact

Source: NYU Stern and Yale School of Forestry – Peer Effects in the Diffusion of Solar Panels

Solarize: Lasting Impact

Lasting Impact

Solarize: National Growth

Over 200 Campaigns in 22 States

Thousands of homes Solarized!

A roadmap for projectplanners and solar advocateswho want to create their ownsuccessful Solarize campaigns.

www.nrel.gov

Solarize: Resources

Resource The Solarize Guidebook







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00







Break

Local Speakers


Agenda10:20 – 10:50

10:50 – 11:20

11:20 – 11:50

11:50 – 12:15

12:15 – 12:45

12:45 – 1:20

1:20 – 1:30

1:30 – 2:45

2:45 – 3:00

1. Understand the federal, state, & utility policy

landscape

2. Think about your community’s solar goals

3. Recognize local successes and review current local

policies/procedures

4. Identify opportunities and barriers to

implementation

5. Outline implementation plan

Activity: Solar in Your Community

Integra

te solar in

plans

Address s

olar in

zoning c

ode

Adopt solar

read

y guidelines

Define perm

itting p

rocess

Expedite

typica

l solar p

ermits

Implement fa

ir perm

it fees

Expand fin

ancin

g optio

ns

Implement s

olarize

program

0% 0% 0% 0%0%0%0%0%

Where to begin?

Integrate solar in plans Address solar in zoning code Adopt solar ready guidelines Define permitting process Expedite typical solar permits Implement fair permit fees Expand financing options Implement solarize program

Available to local governments– Can request through a non-profit or regional

organization (RPC)– Previously available through SolarOPs– Provided by RSC Teams– If not provided by RSC Team, then SolarOPs could

help– Now will be available through SPARC

Technical Assistance

Solar Powering America by Recognizing Communities (SPARC)

The Next Solution

Community recognition program for 300 communities taking steps to reduce soft costs

and promote solar locally

SPARC Program Structure

TA Delivery

TA Pipeline

Designation Program Expertise

Solar Outreach Experience

Designation Program Development

• Tiered designation program with different levels of achievement

• Ongoing competitions to reward success in real-time

• Annual awards recognizing outstanding achievement in soft cost, market growth, community engagement, other categories

FINAL CRITERIA AND STRUCTURE AVAILABLE:SPRING 2016

No-Cost Technical Assistance

• Communities pursuing SPARC designation will be eligible for up to 100 hours (on average) of no-cost technical assistancefrom national solar experts.

• Technical assistance will be designed to help a community achieve the basic requirements for designation. Depending on demand, some TA may also be available to help more advanced communities achieve higher levels of designation.

• Possible topic areas for TA include: streamlining permitting and inspection processes for solar, planning and zoning for solar, solar financing options, codes and standards, community and utility engagement, market development programs, and others.

SPARC Advisors Funded temporary staff to help communities achieve

designation. Communities must apply to participate in SPARC to host an Advisor.

Advisors will evaluate existing local government policies/processes and apply industry leading best practices that will move a community toward designation.

SPARC Advisors will assist communities through engagements lasting up to six months.

There will be two opportunities for a community to be chosen as a SPARC Advisor host, and these will occur through a highly competitive process.

FIRST ROUND OF COMMUNITY SELECTION BEGINS: April 2016

SPARC Timeline

Program Planning and

Kick-Off

Early Technical

Assistance

Designation Criteria

Finalized; Advisors

Application Open

Full Technical Assistance

and Designation

SPARC Advisors in

Communities

300 Communities Designated

Q4 2015 Q4 2015 –Q2 2016

Q2 2016 Q2 2016 –Q3 2018

Q3 2018Q1 2017 + Q1 2018

Review solar zoning ordinance, or HOA language – is it solar friendly? Review permitting processes Help with solarize program Review RFP Review responses to RFP Feasibility analysis for solar PV Myth busting

What do municipalities ask for?

Apply for SPARC assistance & sign up for updates through gosparc.org Contact Philip Haddix at

[email protected]

Application Process

mailto:[email protected]

Documents

Arizona State University - Soarl Powerngi Your Communtiy · 2017. 12. 28. · Solar Jobs in Arizona. The Solar Foundation – National Solar Jobs Census (2015) and Arizona Solar Jobs