Deliberative Workshop on Solar PV Development in Hong Kong

Deliberative Workshop on Solar PV Development in Hong Kong: Prospects and Policy Challenges

Briefing Document

Organiser

Funding Organisations

Supporting Organisation

Co-organisers

Workshop A: 4th November 2016 (9:30a.m.-1:00p.m., Friday)

Workshop B: 5th November 2016 (2:00-5:30p.m., Saturday)

Hong Kong Baptist University

Table of Contents

Section Page

1. Introduction

1.1 Foreword

1.2 Greetings and Special Remarks

1.3 Workshop Overview and Programme

1-3

1

2

3

2. Solar PV: Why Does It Matter to Hong Kong? 2.1 Major Global Solar Trends That Matter to Hong Kong

2.2 Major issues for Hong Kong’s Solar PV Development

Key issue 1. Solar Potential in Hong Kong

Key issue 2. Technical Challenges: Intermittency and Grid Connection Limitations

Key issue 3. Tariff Impacts and Costs

Key issue 4. Policies and Regulations

4-15

4-6

7-15

8

9-10

11-12

13-15

3. Five Possible Solar PV Policies in Hong Kong 3.1 Feed-in Tariff (REFiT)

3.2 Net Metering

3.3 Solar Leasing

3.4 Renewable Energy Certificates (RECs)

3.5 Renewable Energy Bonds (RE Bonds)

16-21

17

18

19

20

21

4. Looking Forward: Solar Policy Roadmap for Hong Kong 22

Appendix

Appendix 1：Estimates of Hong Kong’s solar PV output potential to the total electricity

consumption

Appendix 2：Large cities and Hong Kong’s Estimated Rooftop Solar PV Potential

23

23

Appendix 3：Highlights from Surveys in Local Studies on Renewable Energy Support 24

Appendix 4：Large Cities’ Experiences: How Policies Can Help Overcome Barriers 25-29

Appendix 5：Comparison Table of Strengths, Weaknesses, and Risks among the Five Possible Solar

Policies for Hong Kong

30

Appendix 6：Key References for Strengths, Weaknesses, and Potential Risks among the Five

Possible Solar Policies for Hong Kong

31-32

1.1 Foreword

1. Introduction

Energy and particularly electricity, are of vital importance to and touches upon every aspect of our society.

Yet, our growing global energy demand is driving climate change, as well as many environmental, economic

and societal problems. Solar Photovoltaic system (Solar PV system), once an expensive energy technology,

has flourished worldwide to become one of the sources of energy investments. Some major overseas cities

such as New York City, London and Singapore, have come up with creative small to large scale applications

of solar PV. In Hong Kong, solar PV development has been discussed for many years but yet its deployment

has been only limited in scale. Solar PV has a huge potential to play in powering Hong Kong with

sustainable energy, but we currently face a crossroads as to how to best facilitate large-scale solar PV

deployment in light of Hong Kong’s unique geographical and urban characteristics.

This workshop aims to address some of these challenges by empowering Hong Kong citizens from all

walks of life, to share and reflect your views on this important matter.

As the current chairman of the Energy Advisory Committee of the HKSAR Government, I applaud your

interest in and am delighted to welcome you to this deliberative workshop. Your input will not only help

shape Hong Kong’s energy future, providing invaluable opinions and raising critical questions on Hong

Kong’s solar PV opportunities as well as policy challenges, but they matter and are of great importance to

the Government and relevant stakeholders in charting out Hong Kong’s solar PV policies.

I hope that you thoroughly enjoy the deliberative process, and become more engaged citizens on energy and

other matters of public importance in Hong Kong.

Professor Raymond So Wai Man Event Moderator

Chairman, Energy Advisory Committee of the HKSAR Government

Dean of School of Continuing Education, Hong Kong Baptist University

“Your input will not only help shape Hong Kong’s

energy future, providing invaluable opinions and

raising critical questions on Hong Kong’s solar

PV opportunities as well as policy challenges, but

they matter and are of great importance to the

Government and relevant stakeholders in charting

out Hong Kong’s solar PV policies.”

Prof. Raymond So Wai Man

1

http://eyesonhkbu.hkbu.edu.hk/images/home-banner/20160517-dsce-l.jpg

1.2 Greetings and Special Remarks

We sincerely thank you for your taking part in this unique deliberative workshop. This workshop is important

because you are helping to pioneer the role that solar PV can play in Hong Kong’s energy future.

This workshop features small group discussions, expert Q&A exchange, and an interactive session to consolidate

the day’s discussion towards Hong Kong’s solar PV policy roadmap. This well-structured workshop process

follows the design of the Stanford-based Deliberative Polling method, which aims to empower citizens to

discuss, debate, and in turn, reach a more informed decision upon the opportunities and challenges for solar PV

development in Hong Kong.

This briefing document is an essential component of Deliberative Polling. This document aims to provide a

concise overview and will facilitate your understanding of the global status of solar PV and Hong Kong’s recent

developments and major issues upon deployment. Please feel free to refer back to this document coming into and

during the workshop.

We would like to sincerely thank Hong Kong Baptist University for providing the venue, and gratefully

acknowledge the experts who extensive reviewed this briefing document. This workshop would not have been

possible without the generous funding from Greenpeace East Asia, the World Wide Fund for Nature Hong Kong,

and the Research Committee at Hong Kong Baptist University.

We hope that this will be an invaluable learning opportunity.

Yours Truly,

The Organising Committee

Daphne Mah

Director, Asian Energy Studies Centre

Assistant Professor, Department of Geography


Kevin Lo

Assistant Professor

Department of Geography


Peter Hills

Research Fellow

Asian Energy Studies Centre


Zhou Qiming

Professor, Department of Geography

Director, Centre for Geo-computation Studies


Alice Siu

Associate Director

Center for Deliberative Democracy

Stanford University

Michael K.H. Leung

Associate Dean and Professor

School of Energy and Environment

City University of Hong Kong

Alex Lo

Assistant Professor

Department of Geography

The University of Hong Kong

2

http://www.tskevinlo.com/

http://www.kadinst.hku.hk/Academic_staff_Peter.html

http://geog.hkbu.edu.hk/staff/staff_daphnemah.htm

http://aesc.hkbu.edu.hk/?page_id=237

Deliberative Workshop on Solar PV Development in Hong Kong:

Prospects and Policy Challenges Workshop A: 4

th November (9:30a.m.-1:00p.m., Friday) // AAB 1312

Workshop B: 5th

November (2:00-5:30p.m., Saturday) // AAB 505 Hong Kong Baptist University, Kowloon Tong, Hong Kong

Time and Venue Session

Workshop A

4th

Nov, Friday

Workshop B

5th

Nov, Saturday

9:15-9:30 a.m. (Outside AAB 1312)

1:45-2:00 p.m. (Outside AAB 505)

Registration Refreshments will be served

9:30-9:45 a.m. (AAB 1312)

2:00-2:15 p.m. (AAB 505)

Welcome and Introductory Remarks Workshop A: Moderated by Prof. Raymond So

Chairman, HKSAR Government Energy Advisory Committee

Workshop B: Moderated by Dr. Alice Siu

Associate Director, Center for Deliberative Democracy, Stanford University

9:45-10:30 a.m. (See below for

arrangements)

2:15-3:00 p.m. (See below for

arrangements)

Small Group Discussion

10:30-11:30 a.m. (AAB 1312)

3:00-4:00 p.m. (AAB 505)

Expert Q&A

11:30-11:35 a.m. 4:00-4:05 p.m. Introduction to the Hong Kong Online Solar Map Demonstration

11:35-11:45 a.m. (Outside AAB 1312)

4:05-4:15 p.m. (Outside AAB 505)

Coffee Break


arrangements)


arrangements)

Small Group Discussion

12:30-1:00 p.m. (AAB 1312)

5:00-5:30 p.m. (AAB 505)

Plenary and Interactive Session Looking Forward: Solar Roadmap for HK

End of Workshop

1:00-1:30 p.m. (AAB 1214)

5:30-6:00 p.m. (AAB 1214)

[Optional] Hong Kong Online Solar Map Demonstration

Small Group Discussion Venues Workshop A

4th

Nov, Friday

Workshop B

5th

Nov, Saturday

Group A AAB 1312 AAB 505

Group B AAB 1217 AAB 506

Group C AAB 704 AAB 507

Disclaimer: no part of this briefing document may be cited or quoted without the permission of the organising team. All enquiries

regarding this briefing document should be directed to Dr. Daphne Mah by email at [email protected] or phone at 3411-7753. If

there are slight discrepancies between the English and Chinese versions, the content in the Chinese version shall prevail.

1.3 Workshop Overview and Programme

3

2. Solar PV: Why Does It Matter to Hong Kong?

Major Trend 1: Solar PV is expected to generate a significant amount of

global electricity in the next few decades, and small-scale PV systems

are expected to increase.

The International Energy Agency (IEA)

projects that solar power could generate

22% of the world’s electricity by 2050.

Moreover, Bloomberg New Energy Finance

predicts that over 10% of global solar PV

generating capacity will be from small-scale

PV by 2040.

Figure 1. Solar PV now makes up more than half

(US$161 billion) of total RE investments, compiled by authors

from Frankfurt School-UNEP Centre and BNEF (2016)

Did you know? Solar PV made up

only 2.9% of global total power installed

capacity in 2015. However, that share is

expected to increase in the next few

decades.

From 2009 to 2015, the average levelised cost of electricity

(LCOE) for crystalline-silicon solar PV panels dropped by

more than 50%, from just above US$300/MWh to below

US$150/MWh (Figure 2).

While utility-scale solar PV is becoming increasingly

competitive (IRENA, 2015), small-scale PV has been

recently reported to have reached grid parity in all major

developed economies (BNEF, 2016), which means that the

price of generating electricity from small-scale

deployments are less or equal to the price of purchasing

electricity from the electricity grid.

Major trend 2: Solar PV systems have dropped substantially in recent

decades, making it an affordable energy technology.

Summary of key points:

Once an expensive technology, solar photovoltaic (PV) technology has become substantially cheaper, more

mature, and constitute a majority of renewable energy (RE) investments. Costs are expected to further decline.

Solar PV has become an important component in RE investments. Solar PV systems are expected to generate almost a

quarter of global electricity by mid-century.

Solar PV systems on average emit less than fossil fuel-based energy technologies, and there are now a variety of

approaches, such as recycling components, in light of its environmental impact from production to

decommission.

Figure 2. Global average levelised cost of electricity for wind and solar from 2009 to 2015 in (US$/kWh) (Frankfurt School-UNEP Centre and BNEF (2016))

2.1. Major Global Solar PV Trends That Matter to Hong Kong

4 4

Solar PV Panels and Environmental Impact

Solar PV is one of the less polluting greenhouse gas emitting technologies, and is less polluting than

fossil fuel technologies such as coal or natural gas (Figure 4)

Solar PV panels may result in some environmental impact and lifecycle emissions prior to and after

its operation. These emissions include extraction of raw materials and energy used to process and manufacture the

whole PV panel system

Potential environmental impacts after the solar panel’s lifetime can be mitigated by proper disposing

or recycling of component parts, while some places such as the EU have developed specific guidelines

to handle such waste

Major Trend 3: PV module costs are estimated to be reduced by

half in the next 20 years.

Figure 3. Past module prices and projection to 2035 based on a learning

curve from Nelson, Gambhir and Eikins-Daukes (2014)

Figure 4. Estimates of lifecycle

greenhouse gas emissions for broad

categories of electricity generation

technologies, modified from IPCC

Studies by the IEA and Imperial College London have

predicted that solar PV modules costs will continue to

decline over the next 20 years, from around US$1/Watt

in 2015 to about US$0.3-0.5/Watt in 2035 (Figure 3)

Solar Fact: What are solar PV panel

components made of?

A majority of solar panels, most of

them crystalline-silicon (c-si), are

mainly composed of glass. The

remaining materials are composed of

polymer, aluminium, silicon, copper

as well as other metals.

5

Solar PV has been limited in scale in Hong Kong. 2.2 Megawatt (MW) of solar PV is installed

Hong Kong as of 2012, which constitutes roughly 0.02% of solar PV’s total contribution to the fuel mix (see details in

Figure 5)

Notable Major solar PV installations such as those in Figures 6a to d are deployed across

institutional, commercial, and residential buildings

Despite Hong Kong’s geographical limitations and the lack of an explicit target for renewable

energy, renewable energy projects have been mentioned in recent major publications by the HK government (Figure 7)

Figure 6b. CLP’s 180kW system

on Town Island near Sai Kung

Figure 6a. HEC’s 1 MW system

at the Lamma Island Power

Station

Figure 6c. A 350kW system at the

new EMSD Headquarters in

Kowloon Bay

Figure 6d. A 198kW building

integrated system at Science Park

Around 60

Number of customers with small-scale

grid-connected renewable energy systems

Figure 5. Hong Kong’s Electricity Generation Mix in 2012

(Environment Bureau, 2014)

Around 230 Hong Kong’s 12,645MW electricity system has been primarily

based on fossil fuels (over 70%) and nuclear power (23%).

Renewable energy and oil contribute to the remaining 2%.

Both utilities plan to replace coal-fired electricity generation

with natural gas generation in the next few years.

Solar PV: The Hong Kong context

6

Figure 7. Hong Kong’s

energy and climate

consultation documents

and reports in recent years

2.2 Major Issues for Hong Kong’s

Solar PV Development

Summary of key points:

Hong Kong has good solar potential, and peak electricity demand corresponds with high solar PV output

Hong Kong has world-class supply reliability and high electricity reserve margin. Depending on penetration

level, solar PV could affect grid stability and reliability, but measures can be adopted to resolve these

challenges

Although electricity tariffs are likely to be affected when integrating solar PV into the electricity grid, some

studies found that Hong Kongers are supportive of and generally willing to pay more for renewable

electricity

Policies and regulations are needed to overcome the various barriers impeding solar PV development

Major cities worldwide have set solar PV targets and made concrete plans to facilitate solar PV deployment

Solar Potential

Tariff Impacts and Costs

Technical Challenges:

Intermittency and Grid

Connection Limitations

Policies and Regulations

Key issues and barriers to major uptake of solar PV in HK

The scale and rate of solar PV uptake in Hong Kong hinges upon many factors, but four major issues need to be

examined for a major and high rate of solar PV uptake in Hong Kong:

7

Key Issue 1: Solar Potential in Hong Kong

Why is this issue important?

Understanding the solar potential allows policy makers to determine what is potentially

achievable by harnessing solar energy. This can aid in setting the solar PV target and

enhancing solar PV deployment within a specific timeline.

What do we know?

Hong Kong has good solar PV potential. Numerous studies (see details in Appendix 1) have estimated

Hong Kong’s solar PV potential to range from 5.9% all the way to 35%. You can compare Hong Kong’s

potential with other solar PV estimates of major global cities in Appendix 2.

Hong Kong’s daily peak day load matches when solar power output is highest during the daytime

(Figure 8). In 2012, HK’s peak day load for a local peak day was 2pm (9,001 MW) and another evening

peak load at 8pm (8,936 MW). The afternoon peak load happens right when there is peak solar power

production. Local PV studies suggest that an optimal panel tilt angle can generate high solar PV output

during with peak and near-peak loads during the daytime.

Hong Kong’s receives good solar radiation year round. According to Hong Kong Observatory, solar

radiation is readily available year-round, and receives the highest amount of solar radiation in the

summertime.

Figure 8. Local peak day load and solar power output

curve, compiled by authors from (HK Government,

2013a) and Wang & Huang (2014).

Peak electricity demand: This the amount

of electricity that is most demanded at that

particular period of time.

What else do we need to know?

Is Solar PV a viable energy option in Hong Kong?

Hong Kong lacks available land and rooftop space and is In a dense environment. Under such

conditions can we still develop solar PV?

8

Key Issue 2: Technical Challenges:

Intermittency and Grid Connection Limitations

Figure 9. Supply reliability of Hong Kong and other major cities

from (Environment Bureau, 2015b)


One of the key issues is how to best integrate high volumes of solar PV into the electricity

while ensuring system stability

Intermittency and difficulty in predicting solar power generation may compromise the reliability of

the electricity grid

Numerous measures exist to address intermittency and predictability of solar PV output

Under a high penetration of intermittent solar PV, the utility’s electricity system may receiving too

much or too little of electricity from solar PV, resulting in electricity demand and supply mismatch

What do we know?

Both utilities provide world-class standard of supply reliability (Figure 9) and have high

electricity reserve margins respectively (52% for HKE and 26% for CLP in 2014). Hong Kong’s solar PV

installed capacity is 0.02% of Hong Kong’s fuel mix in 2012.

As a general rule of thumb for grid stability and safety, local electricity networks can

accommodate up to 15% of penetration from renewable sources ). Integrating solar PV, similar to

other intermittent renewable energy sources, could result in grid instability depending on its level

of penetration into the electricity grid.

Utilities can adopt some common measures that have been used in other places to address the

problem of intermittency (see Figure 10).

Reserve margin is the amount of

unused available capability of an

electricity system as a percentage of

total capability.

Intermittency refers to the varying

output of a solar PV (or any renewable

technology) with season, weather, or

time of day.

9

What else do we need to know? What are the potential technical challenges (e.g. grid connection) for major uptake of

solar PV?

What would be the impacts on the grid with different level of solar penetration? How

will solar PV affect the stability and supply of electricity in the electricity grid?

Figure 10. Some common measures to address grid instability due to intermittency (from Perez et al., 2016).

Some Solutions to Ease Grid instability upon

High Solar PV Penetration

Technique 1 - Electric Storage Excess solar PV output can be stored in the form of

electricity storage during daytime and be used overnight

to help ease the electricity demand load.

Technique 2 - Curtailment Solar PV output is curtailed, which means it is turned

down to minimise the disturbance that excess solar PV

output can have on the grid.

Technique 3 - Geographical Dispersion If solar PV generation is dispersed locally or regionally,

the weather may affect the variability of solar PV

output variability.

Technique 4 - Load Shaping Utilities can encourage consumers to use more

electricity when solar PV electricity (daytime) is

abundant and discouraging when there is little to none.

This is usually done through time-varying tariffs,

thereby shape electricity consumption patterns (the

load) to other times of the day when electricity is less

demanded.

電力儲存

縮減

區域性發展

太陽能的

協調作用

調節用電高

峰

10

Key Issue 3: Tariff Impacts and Costs


Renewable electricity costs are in general a few times higher than traditional electricity

costs

Tariffs matter, as tariff rates and structures are based on a whole set of considerations and

factors from fuel costs to transmission charges

Solar PV may reduce additional generation costs and ease pressure to increase tariffs by

reducing peak electricity demand

Is Renewable energy worth paying for? Increased renewable energy generation will

increase tariff costs, but can reduce air pollution and greenhouse gas emissions, and offset

some significant economic losses and social costs (for example, public healthcare spending)

What do we know?

Hong Kong’s electricity tariff is quite low compared to other major cities (Figure 11)

One of the major barriers to solar PV development is the unknown tariff impact and public interest

in their willingness to pay for renewable electricity

According to Consumer Council’s preliminary modelling based on assumptions of Feed-in Tariff

similar to other Asian countries, all Hong Kong electricity consumers could pay for an introduced

5% Feed-in Tariff through an increase by less than 3% on electricity tariffs

Recent local studies (see details in Appendix 3) indicate that Hong Kongers are supportive of and

generally willing to purchase for renewably generated electricity

Solar PV system prices have fallen significantly. Between 2010 to 2015, solar PV system prices have

dropped by a cumulative 60%. At the same time, the global installed capacity of solar PV has

increased nearly five times to 227 gigawatts (see Section 2.1). However, the cost of installation in

Hong Kong has remained high due to initial installation and repair costs and long payback period1

When solar PV output and electricity demand is highester during the daytime, solar PV electricity

may often be sold for a higher price (learn more about Feed-in Tariffs in Section 3.1)

1 On the rooftop of a typical 700 square feet village house, it is estimated that 6 solar PV panels (the average size of a solar panel is 1.65 m2) could be installed. In line

with current market prices, the total electrical equipment cost is estimated as HK$55,000. The actual total electricity output would be 1,560 kWh (about 4.27 kWh per day), and the actual annual electricity saving could be HK$1,560 (assuming the tariff is HK$1 per kWh). Thus, the payback period would be about 35 years.

11

Figure 11. Electricity tariff of Hong Kong1 and

other major cities from Environment Bureau

(2015b)

What else do we need to know? What are the estimated tariff impact and costs on electricity tariffs upon large-scale

solar PV uptake (e.g. 5-10% of Hong Kong’s fuel mix)?

How can the government more effectively regulate such tariff impacts? How can

the government address the issue of inequity/cross-subsidies if we are to implement

a policy to facilitate solar PV deployment (e.g. Feed-in Tariff)?

Do you know how much you pay for electricity? A Glance at Tariffs

Customer Unit of electricity Customer Unit of electricity

Residential Tariff $0.89-$2.01* Residential Tariff $0.92-1.85#

Non-Residential

Tariff $1.06-1.23*

Commercial, Industrial

Miscellaneous Tariff $1.30-1.48

Large Power Tariff Depends on demand

and power

consumption

Maximum Demand

Tariff

Depends on load and

power consumption Bulk Tariff

Note: Both CLP and HEC customers are charged on a block tariff system.

*CLP offers an Energy Savings Rebate to residential and

non-residential customers of low consumption. They can

save anywhere from 15.2-17.2 cents per unit of electricity.

In 2015, about 35% of residential and 44% of non-

residential customers received this rebate

12

# Since 2013, HEC has been offering a Super Saver Discount,

where residential customers with consumption are entitled to a

5% discount if they consume not more than 100 units of

electricity

Key Issue 4: Policies and Regulations


Policy support enables solar PV to overcome multiple barriers, and better compete with

conventional generation technologies such as coal and natural gas in the electricity market

(refer to Section 2.1)

On a global scale, different types of solar PV policy options for governments have emerged

(see details in Section 3 )

What do we know?

Several local studies have identified multiple barriers that impede PV deployment in HK

(Figure 12)

CLP and HEC, two geographical monopolies (Figure 13), are regulated by the Scheme of

Control Agreements, which links power generation to rates of return of the two utilities to

their fixed asset investment, and could provide strong incentives for decentralized power

generation such as solar PV.

Some large cities such as New York City and Singapore have already set solar PV targets.

To promote solar PV development, they have set comprehensive plans and policies (Figure 14;

please refer to details in Appendix 4).In Hong Kong, we almost have no solar PV policies.

13

Institutional and

Regulatory Barrier

Lack of regulatory

incentives

Social Barrier Lack of community

and stakeholder

participation

Market Barrier Inadequate service

infrastructure

Economic Barrier Long payback period and

high upfront costs

Technical Barrier

Space constraints

Ensuring grid access for RE producers

Figure 12. Multiple barriers impeding

Hong Kong’s solar PV development

Kowloon, New Territories

and outlying islands

Hong Kong

Island and

Lamma Island

Figure 13. CLP and HEC’s respective service areas

Service Area

14

What else do we need to know?

What sort of regulatory changes are needed or barriers are to be overcome to facilitate more solar PV deployment?

How should the Scheme of Controls Agreement with the two utilities be modified to incentivise solar PV deployment?

Figure 14. The experiences of other large cities：How they used policies to overcome unique barriers and challenges

Seoul Singapore New York City Tokyo London Hong Kong Daily

Solar

Radiation

(kWh/m2)

Population

(million)

Solar

Target in

MW (year)

Solar PV

Capacity in

MW (year) Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Enacted Policies

REFiT

Net Metering

Solar Leasing

RECs

RE Bonds

Five Possible Solar PV Policies in Hong Kong 3.

Overview of the Five Possible Solar PV Policies

This section presents an overview of the features, strengths, weaknesses and risks of five possible solar policies for Hong

Kong. We will focus and consider these five possible policies at the workshop. To better help you compare these five

policies, we have assembled a comparison table of the strengths, weaknesses and potential risks among these five policies

in Appendix 5. Should you wish to learn more in detail about each of the raised points, you may consult Appendix 6for the

key references.

The government offers a long-term contract (eg. 10 to 20 years) to renewable

energy producers, in which the producers can be provided with a fixed but

favorable subsidy per-kWh (which usually is a higher price than the

conventional tariff).

This billing mechanism credits solar energy system owners for the electricity

they add to the grid. In a net-metered home, the credit accumulated from solar

electricity will offset the electricity consumed from the grid. Customers are then

billed for their “NET" electricity use.

Feed-in Tariff (REFiT)

Net Metering

Interested end-users do not need to buy the solar system, but can rent from a grid

company or an energy service company through contractual agreements with a fixed

price. End-users can use the solar system to generate electricity for their own uses, sell

surplus electricity to the grid, or buy electricity from the grid. Government can play an

enabling role in nurturing this green industry, by, for example, creating domestic market

demand through commitment to installing solar in government buildings.

REC is a tradeable energy commodity that recognises a certain amount of

generated renewable electricity. Renewable energy producers can benefit from

trading certificates with utilities. RECs are used to verify utility compliance with

renewable portfolio standards (RPS) and to substantiate claims made by voluntary

purchasers of green power.

Qualified issuer(s), such as the government or utilities, publicly issue(s) bonds

to raise funds from all sectors, which should be designated to finance certain

renewable energy projects such as utility-scale PV farms.

Solar Leasing

Renewable Energy Certificate (REC)

Renewable Energy Bonds (RE Bonds)

16

3.1 Feed-in-Tariff (REFiT)

What is a Feed-in-Tariff (REFiT)? The government offers a long-term contract (eg. 10 to 20 years) to renewable energy producers, in which the producers will be

provided with a fixed but favorable subsidy per-kWh (which usually is a higher price than the conventional tariff).

Strengths Well-proven in expanding solar capacity, markets and

domestic industries, as well as delivering social,

economic, environmental and security benefits

Financial investment security over a period of time, a

stable price and lowered investment risk

Can encourage steady growth of small to medium-scale

producers

Low transaction costs and easy of financing and entry

Weaknesses One challenge is how to set REFiT; as

the market developments (e.g. solar PV

costs are reduced), governments and

utiilties need to adjust REFiTs over time

or consumers may face unnecessarily

high prices

Potential Risks May increase tariff costs

Once the policy becomes implemented and tariffs are reduced over time, some solar PV investors and

stakeholders may oppose these reductions, which may bring about political risk

Non-solar PV owners may cross-subsidise solar PV owners

Requires specific policy design and stability in remuneration: the success of REFiT quite depends on the

investment behaviour of solar PV investors

Features of REFiT

① Renewable energy producer will be offered a fixed

but favorable subsidy per-kWh, e.g. HK$2 per-kWh

② The subsidy could be a long-term stable offer

③ The generation systems could be connected to the grid

Note: You can compare these strengths, weaknesses and risks with

other possible policies in Appendix 5.

17

3.2 Net Metering

What is net metering? Net metering credits solar energy system owners for the electricity they add to the grid. In a net-metered home, the credit accumulated

from solar electricity will offset the electricity consumed from the grid. Customers are then billed for their “NET" electricity use.

Strengths Solar PV owners who generate excess electricity

(eg. households or local businesses) may sell it to

the utility company and help offset a part of their

electricity bill

Easy to administer

May facilitate the setting of solar PV tariff in the

long run

May encourage investors (such as industrial and

residential users) to develop small to medium

sized solar PV systems

Weaknesses Less effective on promoting utility-

scale systems

Non-solar PV owners may cross-

subsidise solar PV owners

Usually not enough by itself to

advance market penetration especially

more expensive RE such as solar PV

Potential Risks May increase electricity tariff costs

Lowers investment security

Utilities may lose revenue as consumers who self-generate electricity may use less of grid-supplied electricity

Utilities may risk facing increased recovery costs from stranded costs

(i.e. declining value of electricity-generating assets over time)

Features of Net Metering

① Self-consumption of solar power

② Co-existence of power generation

③ A smart meter system is required

④ The solar system is connected to the grid

⑤ Particularly important for small-scale

household solar generators systems



18

3.3 Solar Leasing

What is solar leasing? Interested end-users do not need to buy the solar system, but can rent from a utility or an energy service company through contractual

agreements with a fixed price. End-users can use the solar system to generate electricity for their own uses, sell surplus electricity to

the grid, or buy electricity from the grid. Government can play an enabling role in nurturing this green industry, by, for example,

creating domestic market demand through commitment to installing solar in government buildings.

Strengths Well- proven to facilitate rooftop solar deployment

May reduce PV adoption upfront costs

Building owners receive benefits of solar energy without actually

owning the system

Building owners bear minimal to no operation and maintenance

responsibilities, and such leasing arrangement may reduce or

remove technology risk

As the model lowers the cost of installation, this accommodate

more potential solar PV adopters by income, housing types,

geographic area

Investor reaps potential tax benefits (eg. tax credits)

Weaknesses

Lack of financial feasibility in small-

scale systems

Due to its long-term nature, may

incur penalties if contract is broken

Potential Risks Component risks such as with its use and roof damage

Market risk due to default and non-payment, as well as small-scale energy service company providers

possibly going out of business; energy service companies entering the market would need good credibility or

meet minimum credit requirements

Stakeholders may be vulnerable to solar PV underperformance, unanticipated operation and maintenance

costs, delays in receiving incentives and grid-interconnection approvals

Features of Solar leasing

①Lessees do not need to buy solar equipment

②Lessees have the right to use solar equipment

③ Lessees may have a monthly profit or loss

Note: You can compare these strengths, weaknesses and risks

with other possible policies in Appendix 5.

19

3.4 Renewable Energy Certificates (RECs)

Weaknesses Usually require RE/solar-specific mandates such as

renewable portfolio standards

Demanding in design, administration, and

enforcement, as well as well-structured regulatory

system for verifying RECs

Possible opposition or tradeoff with concentrated

development by focusing solely on resource-rich

locations

Long term contracts not a guaranteed element of

RECs

Difficult to fine-tune market design in the short term

What are renewable energy certificates (RECs)? A REC is a tradeable commodity that recognises a certain amount of generated renewable electricity. Renewable energy producers

can benefit from trading certificates with utilities. RECs are used to verify utility compliance with renewable portfolio standards

(RPS) and to substantiate claims made by voluntary purchasers of green power.

Features of RECs

① An invisible but tradable energy commodity.

② Should be verified by a third-party entity.

③ REC prices may fluctuate as it is subject to market

demand and supply.

④ Trading can occur within or across borders. Mostly

traded within the jurisdiction of a country/region, or across

borders such as between countries (e.g. Sweden-Norway) or

among different states (e.g. in USA).

Strengths

Frees RE producers from the need to

deliver renewable electricity in real

time to end-users

Relies on market forces to allow REC

purchasers to seek lowest -cost RECs

Provides accurate, durable record of

produced and tradable RE

Can reduce cost of renewable portfolio

standard compliance

Facilitate transactions across regional

borders

Risks Low market acceptance of REC due to its

complexity

Risk in demand uncertainty, price fluctuation

in thin markets and minimal incentive for

transaction

Tendency to create stop-and-go development

cycles

Note: You can compare these

strengths, weaknesses and risks

with other possible policies in

Appendix 5.

20

3.5 Renewable Energy Bonds

What are renewable energy (RE) bonds? Qualified issuer(s), such as the government or utilities, publicly issue(s) bonds to raise funds from all sectors, which should be

designated to finance certain renewable energy projects such as utility-scale PV farms.

Features of RE Bonds

① Has a clear objective towards solar and renewable energy development.

② The credibility of the bonds should be monitored by a third-party

certification entity.

③ The bonds require a clear and transparent management system and

publication of annual financial reports.

④ Bondholders’ investments and benefits should be assured.

Strengths

Tap into capital available in bond market and

channel towards financing RE

Flexibility in issuance

Actively hedge against climate policy risks in

a portfolio that includes emission-intensive

assets

Enhance issuer’s reputation and attract new

investors

Weaknesses Incur issuing and

management costs

Potential Risks Greenwashing

Issuer bears performance risk

Risk due to the limited market and small bond sizes

Risk of cash flow instability

Lack of proper legal framework and information transparency may heighten investment risks



21

4. Looking Forward: Solar PV Policy Roadmap for Hong Kong – What are your thoughts?

Short-term Target (Next 1 to 2 years): the Hong Kong Government

should immediately move forward with REFiT, Net Metering, and Solar Leasing.

Medium-term Target (Next 3 to 5 years): the Hong Kong Government

should move forward with RECs and RE Bonds.

Net

Metering

Solar

Leasing

RE

Bonds

RECs

The Hong Kong Government should promote policies for solar PV

development.

REFiT

Medium Term

(3 to 5 years) Future Solar PV Development in Hong Kong

After 2020

Present 2016

You are encouraged to share your views at the workshop!

Short Term

(1 to 2 years)

Solar PV Policy Roadmap for Hong Kong

What are your thoughts on

the suggested roadmap?

22

Appendix 1 Estimates of Hong Kong’s Solar PV Output Potential to the Total

Electricity Consumption

Appendix 2 Large Cities and Hong Kong’s Estimated Solar PV Potential

Year Author Estimated Solar PV

Potential Output (%) of

total electricity

consumption (year)

Methodology/Remarks

1997

You and Yang (1997)

35% (1995)

Included BIPV (residential, commercial,

institutional) such as rooftops and outer walls

oriented south, east, and west, but excludes

shadow facades of high-rise buildings

2002

EMSD (2002)

17% (1999)

Included BIPV (residential, commercial,

institutional) and non-BIPV such as open space,

roads and railways, airport and non-built areas

such as grasslands and country parks; however,

this estimate did not factor in cloud cover or

shading

2013 Peng and Lu (2013)

14.2% (2011) Included rooftop PV

Took into account of partial shading

2015 Lu (2015) 10.7% (2014) Included rooftop PV

Did not take into account for shading

2015 Wong (2015) 5.9% (2012) This potential was specific to rooftop solar PV;

this study also addressed solar PV deployment

on all open space areas and Government,

Institution and Community facilities, which

could contribute to 6.4% and 1.1% respectively

of HK’s total electricity consumption in 2012

Done with remote sensing, included cloud cover

City Estimates of

Area Availability

(million m2)

Estimated Solar

PV Potential

Installed

Capacity

(GW or GWp)

Estimated Solar PV

Potential of Total

Electricity Demand (year if

applicable)

Sources

New York City 57 5.8 40%1 (Byrne et al., 2015)

London 34.9 2.1-9.2 4.4-19.2% (2008) (Byrne et al., 2016)

Seoul 90 11.25 30% (Byrne et al., 2015)

Tokyo 93.4 - 26.5%2 (Stoll et al., 2013)

Singapore 27-45 5-10 6-30% (2050) (Luther and Reindl, 2014)

Hong Kong 28.6-97.5 4.67-5.973 5.9-35% Refer to Appendix 1

1 Meet 40% of peak demand. 2 Of power equivalent to nuclear generation capacity, and when coupled with electricity storage. 3 These are installation capacity estimates from PengLu (2013)and Lu (2015). YouYang (1997), EMSD (2002) and Wong (2015) respectively

reported total PV potential as generation output (GWh): 10,500GWh, 5,944GWh, and 1224GWh respectively but these were not included in the

estimated range due to the difference in units.

23

Appendix 3 Highlights from Local Studies on

Renewable Energy Support

Over 80% of respondents agreed with the statement, “I would like

to buy “green” electricity” (e.g. electricity generated from

renewable energy)

Almost all (93%) respondents strongly support or support solar electricity

for power generation in HK

Those who are very worried about energy affordability (about 6% of total

people surveyed) expressed support of five policy interventions to

address climate change: grid connection for wind and solar (most

supported at 30% strongly support); transport electrification; efficient

buildings, building retrofits, and government leadership in building

energy efficiency

2013, a report by Civic Exchange

A Snapshot of Hong Kong People’s Attitudes Towards Power Sources and Climate Change

Over 83% agreed that the government should open up the electricity grid

to encourage other investors to participate in RE development

Roughly 66% agreed that the two utilities should purchase electricity

generated from solar PV or biodiesel on institutional buildings (i.e. REFiT)

About 65% of respondents agreed high volume electricity users (e.g.

MTR, large shopping malls, themes parks) should pay more to share the

burden of renewable energy costs; only about 24% agreed that households

should pay more

2015, a survey commissioned by WWF Hong Kong

Survey on Renewable Energy

2012, a research article by Mah and colleagues Consumer Perceptions of Smart Grid Development: Results of a Hong Kong survey

and policy implications

Number of people surveyed: 505

505

Number of people surveyed: 1,002

Number of people surveyed: 1,030

24

Appendix 4 Large Cities’ Experiences: How

Policies Can Help Overcome Barriers

New York City

30 MW

(2014)

350 MW by 2025

on private and public buildings

Urban area: 789 km2

Population (Jul 2015): 8.5 million

Population Density: 10,800/km2

Background and Barriers

In the last decade, solar PV provided a negligible amount of electricity to NYC due to technical and policy

barriers, as well as lack of incentives, standardization or cohesion among agencies and utilities (CUNY, 2016). In

2006, the City University of New York (CUNY), convened stakeholders to collaborate in the drafting and

implementation of solar plans for the city. Working together with the New York City’s Mayor Office of

Sustainability, the New York City Economic Development Cooperation, local utilities, state authorities, and over

30 partners, they formed the NYC Solar Partnership in 2006 (CUNY, 2016). NYC’s was the recipient of The

Solar America Cities Award in 2007 in multiple policy measures to facilitate solar PV adoption (USDOE, 2011).

Policies and Highlights

Net Metering is available through the local utility,

ConEdison

Renewable Energy Certificates* have been in use since

2012, under the Renewable Portfolio Standard for New York

State to support a voluntary market for tradeable RECs and

green power market through a state-administered tracking

system

Green Bonds are being developed by the City’s Comptroller,

which aims to expand the investor base available to the city,

and provides investors an opportunity to participate in

financing green projects towards climate change adaptation,

advancing renewable energy or energy efficiency

NYC Solarize is a program aims to reduce barriers for

communities that have limited access to solar by reducing

acquisition costs through aggregate purchasing campaigns.

To startup a campaign, financial support, marketing

materials, technical assistance and connections to local

partner installers are provided

*Note: a national-level policy

Solar Policies Available

Net Metering

Solar Leasing

RECs

RE Bonds

Solar PV Progress

Solar PV system in

Brooklyn, from USDOE

(2011)

25

Urban area: 1,572 km2

Population (2015): 8.6 million


8850GWh (2026) of energy

from RE sources (equivalent to 21.3%

of 2014 electricity consumption)

82.7 MW

(2016)


Unlike the many regions of the UK which have increased their solar PV installed capacity, London has fallen

behind, with the lowest amount of installed solar PV capacity in the UK. London faces unique challenges in

large-scale solar PV deployment, such as its terraced housing and thin, tall building cityscape, transient housing

population, and low interest in solar PV. A recent publication by the Greater London Assembly has vocally

criticised the Mayor’s office for its lack of leadership and direction in tapping into this underutilized potential.


REFiT

Solar Leasing

RECs

RE Bonds


REFiT* is available at the national level for small-scale

solar PV and other RE

Renewable Obligation Certificates*, under the

Renewable Obligation requires electricity suppliers source a

portion of electricity from renewable sources, and renewable

obligation certificates are issued renewable plant operators

RE:NEW is an award-winning energy efficiency

programme, and has encouraged domestic solar PV

installation. Since its inception in 2009-2010, solar PV has

been installed on over 4,300 homes. Since 2014, more

human resources and technical support has been provided

towards solar PV projects to help organisations quantify

costs and returns, and establish a new framework of suppliers


Solar PV Progress

Community solar PV installation in Brixton, from

GLA (2015a)

London

26

Seoul

Urban area: 605 km2

Population: 10.3 million



In 2011, Seoul’s electricity self-reliance and reserve margin was 2.8% and 5.5% respectively, with 31% of

its electricity from nuclear power. The city also consumed around 10% of South Korea’s total energy and

was forecasted to rise. Seoul’s large-scale blackout in September 2011 and the wake of the Fukushima

nuclear accident provided good ground for the Seoul Metropolitan Government to set targets to increase

its energy self-reliance. Subsequently in 2012, they announced “The Comprehensive Plan for One Less

Nuclear Power Plant” which aims to reduce energy consumption by 2 million (tons of oil equivalent),

introduce energy efficiency and conservation measures, and increase renewable energy production. Phase

1 of this Plan was fulfilled in June 2014, 6 months ahead of schedule, and it has now entered into Phase 2

which aims to increase the city’s electricity self-reliance to 20% by 2020.


REFiT

Net Metering*

RECs*

RE Bonds*


Seoul-type FiT is city-wide REFiT provides KRW100

(HK$0.68)/kWh for up to 5 years

Government subsidies and support measures lease

of idle public lands and offer municipal land to cooperatives to

install solar PV systems, provide loans with a preferential annual

interest rate of 1.75% for PV systems of up to 150kW, reduce PV

licensing period from 60 to 30 days and distribute solar PV panels

to small apartment households for electricity production

Renewable Energy Certificates* are available in South

Korea which is similar to the US, by way of an obligatory

renewable portfolio standard for major power producers

*Note: Available at the national level.

Solar PV Progress

200 MW (2020)

84.3 MW (end 2014)

PV system on the rooftop of

Gang Agro-Fisheries Market,

from SMG (2015)

Solar Leasing

27

Tokyo

260 MW

(Fiscal Year 2012)

1 GW (2024)


Since the 2011 Fukushima accident, the local government has been implementing both demand-side and

supply-side measures to ensure energy security, and realise an energy-efficient economy and a low-carbon

energy system, firstly by adopting the Vision of Smart Energy City in 2012. The local government has

also emphasised the transition towards distributed generation through solar energy and other renewable

energy sources (TMG, 2013). It also has a number of supportive policies to encourage solar PV uptake.

Urban area: 2,191 km2

Population (2015): 13.5 million



REFiT

RECs*

Solar Leasing


REFiT(since 2012)* is available for Solar PV and other RE,

and since its implementation, had initially resulted in a large increase

in residential solar PV uptake (2011 and 2012) before overtaken by

non-residential solar PV uptake in 2013

Renewable Energy Certificates* are used in a national

renewable portfolio mandated for electricity power companies since

2003. A voluntary Green Power Certificate scheme is also available

for the private sector

Subsidies for solar PV systems (Fiscal Year 2013-17)

are provided in combination with other RE subsidies (eg. combined

heat and power and building energy management system (BEMS) for

small to medium buildings) to secure distributed energy sources and

to realise the smart energy city vision. A total of roughly 10 billion

yen (equivalent to about HK$ 750 million) has been allocated for

these subsidy programs

“Roof power” Solar Project combines low-interest loans

with low-cost retail plans, making it easy for Tokyo residents to

install solar PV systems with modest initial investment


Solar PV Progress

Solar carport, from Bureau of Environment

(2016)

RE Bonds*

28

Singapore

Urban area: 605 km2

Population: 10.3 million


350 MW (2020) 71.3 MW

(Q1 2016)


Despite Singapore’s geographical constraint along with high population density and need to manage grid

stability with large solar PV penetration, Singapore has begun to tap into vast solar resources, which can

help the country meet its emissions targets, import less energy, and reduce peak electricity demand. The

government has launched several government-led initiatives to increase solar PV penetration.


Solar Leasing

Net Metering

RE Bonds


SolarNova is a government-led programme utilizes a solar

leasing business model, by aggregating solar demand across

government agencies, inviting a private energy company to

install, own and operate the system, and selling the electricity

back to the agencies through a power purchase agreement

(EDB, 2016). The first tender of a total solar PV capacity of 76

MW will cover Housing & Development Board blocks and

other government ministries

Regulatory changes were made enhance the existing market

and regulatory framework, such as raising the capacity

threshold for solar energy, clarifying the licensing framework

and streamlining market registration and settlement procedures

Solar PV Progress

Solar PV system on

a Housing and

Development Board

building, from

EMA (2016)

29

Appendix 5 Comparison Table for Strengths, Weaknesses and Potential Risks among the Possible Solar Policies for Hong Kong

Strengths Weaknesses Potential Risks

REFiT Well-proven in expanding solar capacity, markets and

domestic industries, as well as delivering social, economic,

environmental and security benefits

Financial investment security over a period of time, a stable

price and lowered investment risk

Can encourage steady growth of small to medium-scale

producers

Low transaction costs, ease of financing and entry

One challenge is how to set REFiT; as the market

developments (e.g. solar PV costs are reduced), governments

and utiilties need to adjust REFiTs over time or consumers

may face unnecessarily high prices

May increase tariff costs

Once the policy becomes implemented and tariffs are reduced

over time, some solar PV investors and stakeholders may oppose

these reductions, which may bring about political risk


Requires specific policy design and stability in remuneration:

the success of REFiT quite depends on the investment behaviour

of solar PV investors

Net

Metering

Solar PV owners who generate excess electricity (eg.

households or local businesses) may sell it to the utility

company and help offset a part of their electricity bill

Easy to administer

May facilitate the setting of solar PV tariff in the long run

May encourage investors (such as industrial and residential

users) to develop small to medium sized solar PV systems

Less effective on promoting utility-scale systems


Usually not enough by itself to advance market penetration

especially more expensive RE such as solar PV

May increase electricity tariff costs

Lowers investment security

Utilities may lose revenue as consumers who self-generate

electricity may use less of grid-supplied electricity

Utilities may risk facing increased recovery costs from stranded

costs

(i.e. declining value of electricity-generating assets over time)

Solar

Leasing

Well- proven to facilitate rooftop solar deployment from

overseas experiences

Can reduce PV adoption upfront costs

Building owners bear minimal to no operation and

maintenance responsibilities, and such leasing arrangement

may reduce or remove technology risk

As the model lowers the cost of installation, this could

accommodate more potential solar PV adopters by income,

housing types, geographic area, who also reap potential tax

benefits (eg. tax credits)

Lack of financial feasibility in small-scale systems

Due to its long-term nature, may incur penalties if contract is

broken

Component risks such as with its use and roof damage

Market risk due to default and non-payment, as well as small-

scale energy service company providers possibly going out of

business; energy service companies entering the market would

need good credibility or meet minimum credit requirements

Stakeholders may be vulnerable to solar PV underperformance,

unanticipated operation and maintenance costs, delays in

receiving incentives and grid-interconnection approvals

RECs Frees RE producers from the need to deliver renewable

electricity in real time to end-users

Relies on market forces to allow REC purchasers to seek

lowest-cost RECs

Provides accurate, durable record of produced and tradable RE

Can reduce cost of renewable portfolio standard compliance

Facilitate transactions across regional borders

Usually require RE such as solar-specific mandates such as

renewable portfolio standards

Demanding in design, administration, and enforcement, as well

as well-structured regulatory system for verifying RECs

Possible opposition or tradeoff with concentrated development

by focusing solely on resource-rich locations

Long term contracts not a guaranteed element of RECs

Difficult to fine-tune market design in the short term

Low market acceptance of REC due to its complexity

Risk in demand uncertainty, price fluctuation in thin markets and

minimal incentive for transaction

Tendency to create stop-and-go development cycles

RE Bonds Tap into capital available in bond market and channel towards

financing RE

Flexibility in issuance

Actively hedge against climate policy risks in a portfolio that

includes emission-intensive assets

Enhance issuer’s reputation and attract new investors

Incur issuing and management costs Greenwashing

Issuer bears performance risk

Risk due to the limited market and small bond sizes

Risk of cash flow instability

Lack of proper legal framework and information transparency

may heighten investment risks

30

Appendix 6 Key References for Strength, Weaknesses, and Potential

Risks among the Five Possible Solar Policies for Hong Kong

Renewable Energy Feed-in Tariff

CEC. (2016). New Solar Homes Partnership Market Report. Sacramento, USA: California Energy

Commission. http://www.energy.ca.gov/2016publications/CEC-300-2016-005/CEC-300-2016-

005.pdf.

del Río, P., & Mir-Artigues, P. (2012). Support for solar PV deployment in Spain: Some policy lessons.

Renewable and Sustainable Energy Reviews, 16(8), 5557-5566. doi:

http://dx.doi.org/10.1016/j.rser.2012.05.011

Mendonca, M. (2007). Feed-in tariffs : accelerating the deployment of renewable energy. London ; Sterling,

VA: Earthscan.

Rowlands, I. H. (2005). Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for

Canada. Renewable and Sustainable Energy Reviews, 9(1), 51-68. doi:

http://dx.doi.org/10.1016/j.rser.2004.01.010

Net Metering

CEC. (2016). New Solar Homes Partnership Market Report. Sacramento, USA: California Energy

Commission. http://www.energy.ca.gov/2016publications/CEC-300-2016-005/CEC-300-2016-

005.pdf.

Heeter, J., Gelman, R., & Bird, L. (2014). Status of Net Metering: Assessing the Potential to Reach Program

Caps. Golden, Colorado, USA: National Renewable Energy Laboratory.

http://www.nrel.gov/docs/fy14osti/61858.pdf.

Eid, C., Reneses Guillén, J., Frías Marín, P., & Hakvoort, R. (2014). The economic effect of electricity net-

metering with solar PV: Consequences for network cost recovery, cross subsidies and policy

objectives. Energy Policy, 75, 244-254. doi: http://dx.doi.org/10.1016/j.enpol.2014.09.011

31

Solar Leasing

Drury, E., Miller, M., Macal, C. M., Graziano, D. J., Heimiller, D., Ozik, J., & Perry Iv, T. D. (2012). The

transformation of southern California's residential photovoltaics market through third-party

ownership. Energy Policy, 42, 681-690. doi: http://dx.doi.org/10.1016/j.enpol.2011.12.047

Speer, B. (2012). Residential Solar Photovoltaics: Comparison of Financing Benefits, Innovations and

Options. Golden, Colorado, USA: National Renewable Energy Laboratory.


Tongsopit, S., Moungchareon, S., Aksornkij, A., & Potisat, T. (2016b). Business models and financing

options for a rapid scale-up of rooftop solar power systems in Thailand. Energy Policy(In Press). doi:

http://dx.doi.org/10.1016/j.enpol.2016.01.023

Renewable Energy Certificates

Cory, K. S., & Swezey, B. G. (2007). Renewable Portfolio Standards in the States: Balancing Goals and

Implementation Strategies. Golden, Colorado, USA: National Renewable Energy Laboratory.


Holt, E., & Bird, L. (2005). Emerging Market for Renewable Energy Certificates: Opportunities and

Challenges. Golden, Colorado, USA: National Renewable Energy Laboratory.

http://apps3.eere.energy.gov/greenpower/resources/pdfs/37388.pdf.

Mendonca, M. (2007). Feed-in tariffs : accelerating the deployment of renewable energy. London ; Sterling,

VA: Earthscan.

Renewable Energy Bonds

KPMG. (2015). Gearing up for green bonds: Key considerations for bond issuers Frankfurt: KPMG.

https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/sustainable-

insight/Documents/gearing-up-for-green-bonds-v2.pdf.

Ng, T. H., & Tao, J. Y. (2016). Bond financing for renewable energy in Asia. Energy Policy. doi:

http://dx.doi.org/10.1016/j.enpol.2016.03.015

OECD. (2015). Green bonds: Mobilising the debt capital markets for a low-carbon transition. Paris:

Organisation for Economic Co-operation and Development.

https://www.oecd.org/environment/cc/Green%20bonds%20PP%20[f3]%20[lr].pdf.

32