SOME NEW CHALLENGES IN

SOLAR PROJECT FINANCING

Lyle Rawlings

President, MSEIA

President & CEO, Advanced Solar Products

Intersolar Summit East

April 4, 2018

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

POLICY CHANGES

New Jersey - The SREC market heads toward sunset. New program expected next year – lower incentives, higher security.

Massachusetts – The SMART program set to begin

New York - Some NY Sun incentives reach near-zero levels.

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

Trump’s Tariff – 30% increase in module costs

The decline of the ITC from 30% to 10%, starting in 2020

POLICY CHANGES (cont.)

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

• The closing down of local circuits will accelerate.

• Curtailment programs WILL happen (NJ is already 19% solar from 11:00 to 3:00 during sunny spring & fall days).

• Inverters may be required to provide volt-VAR control – some loss of production would result.

• Solar industry must partner with utilities to address infrastructure needs.

INFRASTRUCTURE CONSTRAINTS

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

• Revenue sources that are complex, high risk

• Immature technology

• Shifting regulatory policy, esp. grid-connected

FINANCING STORAGE

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

• MA SMART out in front with SMART adder for batteries.

• NJ Gov. Murphy introduces bills for 600 MW of batteries by 2021, 2,000 MW by 2030. No details yet about how.

• NY Gov. Cuomo signs battery bill, sets 1,500 target by 2025, but few details about how.

FINANCING STORAGE (cont.)

SOME NEW CHALLENGES IN SOLAR PROJECT FINANCING

• Potential is HUGE. In New Jersey, if 1/3 of the vehicles are EVs, total battery storage reaches about 185,000 MWH.

• Charging infrastructure must have 2-way power flow, communication & control.

• Who will build this infrastructure and operate V2G on a statewide scale? Utilities have natural role.

VEHICLE-TO-GRID STORAGE