Embed Size (px)
Citation preview
State Solar Policy: 2008-09 Developments & Current Trends
Justin BarnesN.C. Solar Center
N.C. State University
NESEA: Building EnergyMarch 12, 2009
NESEA is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members will be mailed after the conference.
This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.
Focus & Learning Objectives
• Recent Federal Policy Changes & Implications • “Four Pillars” Updates
- RPS, Net Metering, Interconnection, Incentives
• Innovative Policy Mechanisms - Property tax financing, Community NM, Next Generation Funding, Solar Renewable Energy Certificates (SRECs).
The DSIRE Project
www.dsireusa.org
Database of State Incentives for Renewables & Efficiency
• Created in 1995
• Funded by U.S. DOE
• Managed by NCSU; works closely with IREC
• Project Scope: policies/programs that promote RE/EE
• Breakdown of Data: ~1,950 total records~825 solar records~750 PV records
The Solar Alliance: www.solar-alliance.org/model_policies
Federal Update
• Extended to 12/31/2016• May be used to offset AMT• Extended to utilities
Commercial Solar ITC (10/08)
• Grants in lieu of tax credit for COMMERCIAL TAXPAYERS. The grants are equivalent to 30% of the installed cost and are available through 2010.
Commercial Solar ITC (02/09)
Federal Update (cont’d)Residential Solar Credit (10/08)
• Extended to 12/31/2016
• $2,000 cap removed for PV (1/1/2009)
• May be used to offset AMT
Other Federal Incentives • Tax Credit Bonds: CREBs ($2.4 B) and QECBs ($3.2 B)
• Bonus Depreciation: Extended through Dec. 31, 2009 (02/09)
• Subsidized Energy Financing: 100% haircut repealed (02/09)
• Manufacturing Tax Credit: 30% of investment, competitive, $2.3 B (02/09)
• Residential Solar Credit: $2,000 cap on SHW removed (02/09)
• Rebates (new): CO (local), CT (PV), MA (PV), MN (SWH), NH, OH (residential PV & SHW reactivated), PA (coming soon??)
• Tax credits (new/improved): GA (35%), KY (small), OR (limit doubled), PA (15%), VT (30%), PR (75%)
• Property tax incentives: AZ, FL, MD, NC, NJ, NY• Finance: NJ (Loans/Contracts), MD (Contracts), CA (Berkeley First)• New RPS/RPG: OH, MI, MO, SD, UT• Revised RPS/RPG: D.C., IL, MA, MD, NH (minor) • Solar RPS: D.C., OH, MI, MA, MO• Net Metering (improved): AZ, CO, CT, D.C., FL, HI, IL, KY, LA,
MA, MI, NY, OH, RI, UT, VT • Interconnection Standards (new/improved): CO, D.C., FL, IL, KY
MD, MI, NC, NM, NY• Solar access (improved): CA, CO, FL, MD, VA
State Developments, 2008-09
State Financial Incentives for Solar• Direct Incentives
Rebates (19/24)Grants (20/29)Production Incentives (3/3)
• Tax Credits/Deductions/Exemptions (27/58)
• Low-Interest Loans (27/31)
• Sales Tax Exemptions (22/23)
• Property Tax Incentives (30/40)
• Industry Recruitment Incentives (13/19)(# of states / # of programs)
Rebate Programs PV: 18/20 SHW: 13
Grant Programs PV: 20/28 SHW: 14/17
Production Incentives PV: 3 SHW: 0
Personal Tax Incentives PV: 19/27 SHW: 17/21
Corporate Tax Incentives PV: 23/26 SHW: 17/19
Loan Programs PV: 25/30 SHW: 24/28
Sales Tax Incentives PV: 22/23 SHW: 16
Property Tax Incentives PV: 30 SHW: 27
Industry Recruitment PV: 13 SHW: 7
State Financial Incentives for Solar
www.dsireusa.org February 2009
Varies by project
$10K - $50K
10-20% up to $75K
$60K - $1M
$2K - $10K
50% up to $10K
Direct Incentives for PV, 1997
www.dsireusa.org
State Rebates & PBIs for PV
DE: 50%
$4/W
CT: $2.50-4/W
MA: $1-4.40/WVT: $1.75-
3.50/W
MD: $2.50/W
$2-2.25/W
50%, $3k max
≤35%
≤$3.25/W
≤50¢/kWh, 5 yrs.
$1-2.25/W
30%
15 - 54¢/kWh
NY: $2-5/W
NJ: $1-1.75/WSRECs:
~$0.42/kWh
February 2009
ME: $2K max
$2-3/W
≤$3.50/W
• 19 state rebate programs & PBIs*
• 28 state grant programs (not shown on map)
• 29 non-state PBIs (not shown on map)
• 77 utility rebate programs
(not shown on map)
$2.30-4.60/W
* Includes RPS-inspired utility rebate programs in AZ, CO & NV
NH: $3/W
Federal Policy Implications
• Residential Cap Removal = State Incentive Reductions (NJ, NY, CO, CT, MA, MD?)
• Consideration in other states • Over-subscription, boom/bust cycle is also a factor
$4.00/W
(R) Residential; (C) Commercial; (NR) Non-Residential
State Tax Credits for PV
35%
30% (Non-Corp.)
~2.7¢/kWh 10 yrs. (C)
$3/W (R)50% (C)
10% (NR)25% (R)
25% (R) MA: 15% (R)
15%
35%
100% Deduct.
(R)
25% (R)10% (C)
50%
• Credits in 18 states + P.R.
• Range: 10% - 75%
• FL, IA, MD, OK have small PTCs (not shown on map)
RI: 25%
www.dsireusa.org February 2009
25%
VT: 30% (C)
35%
$500 (R)
$1K (C)
35%
P.R.: 75%
10% Deduct. (C)
Property Tax Incentives
• Tax Credits: NYC, numerous counties in Maryland
• Removal of subsidized energy financing “haircut”.
• Innovative Financing: Berkeley First model
State Regulatory Policies
• Public Benefits Funds (16+DC & ME) • Renewables Standards/Goals (28+DC & 5 goals)• Net Metering (40 + D.C.)• Solar Access Laws/Easements (35)• Contractor Licensing (9)• Equipment Certification (3 + P.R.)
Public Benefit Funds for Renewableswww.dsireusa.org March 2008
16 state funds + DC and ME$6.8B by 2017 (est.)
RI: $2.2M in 2008$38M from 1997-2017*
MA: $25M in 2008$525M from 1998-2017*
NJ: $102M in 2008$637M from 2001-2012
DE: $3.5M in 2008$49M from 1999-2017*
CT: $24M in 2008$435M from 2000-2017*
VT: $6.6M in 2008$34M from 2004-2011
PA: $950,000 in 2008$63M from 1999-2010
IL: $5.5M in 2008$99M from 1998-2015
NY: $9.5M in 2008$114M from 1999-2011
WI: $5.5M in 2008$97M from 2001-2017*
MN: $16M in 2008$264M from 1999-2017*
MT: $750,000 in 2008$8.3M from 1999-2009
OH: $3.2M in 2008$63M from 2001-2010
MI: $1.7M in 2008 $25M from 2001-2017*
ME: voluntary contributions$411,000 from 2002-2008
OR: $12M in 2008 $182M from 2001-2017**
CA: $331M in 2008 $4,149M from 1998-2016
D.C.: $400,000 in 2008 $5.1M from 2004-2017*
* Denotes funds that do not have defined expiration dates and do not require future reauthorization or budgetary approval in order to continue operations. (These funds are not scheduled to expire in 2017.)
** The Oregon Energy Trust is scheduled to expire in 2025.
Non-PBF Renewable Funds • AK Energy Authority: $100 M (FY 2009),
appropriated, utility-based, end-use • IA Power Fund: $ 75 M through 2011, focused on
R&D and commercialization • OH Air Quality Development Authority: $84 M
through 2012, funded by state bonds • PA Energy Independence Fund: $650 M, broad
based, funded by state bonds. • WI Energy Independence Fund: $150 M for grants
and loans over 10 years.
Regional Greenhouse Gas Initiative (RGGI)
• 09/08: $38.6 M• 12/08: $106.5 M• 03/09: ??~ $500 M possible for
remaining 2009 allowances.
MA (under development)
AZ: 1.1% by 2007
NV: 1% by 2009
ME: 30% by 2000
IA: 105 MW by 1999
MN: 425 MW by 2002
www.dsireusa.org
Renewables Portfolio Standards, 1997
Renewables Portfolio Standards
State Goal
☼ PA: 18%** by 2020
☼ NJ: 22.5% by 2021
CT: 23% by 2020
WI: requirement varies by utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
☼ AZ: 15% by 2025
CA: 20% by 2010
☼ *NV: 20% by 2015
ME: 30% by 200010% by 2017 - new RE
State RPS Solar hot water eligible☼ Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE** Includes separate tier of non-renewable “alternative” energy resources
HI: 20% by 2020
RI: 16% by 2020
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
☼ DC: 20% by 2020
DSIRE: www.dsireusa.org February 2009
☼ NY: 24% by 2013
MT: 15% by 2015
IL: 25% by 2025
VT: (1) RE meets any increase in retail sales by 2012;
(2) 20% RE & CHP by 2017
☼ MD: 20% by 2022
☼ NH: 23.8% in 2025
OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)
*VA: 12% by 2022
☼ *DE: 20% by 2019
☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
ND: 10% by 2015
SD: 10% by 2015
*UT: 20% by 2025☼ OH: 25%** by 2025
*MI: 10% + 1,100 MW by 2015
☼ MA: 15% by 2020+ 1% annual increase(Class I Renewables)
☼ MO: 15% by 2021
*WA: 15% by 2020
28 states have an RPS; 5 states have
an RE goal
Solar/DG Provisions in RPS Policies LBNL Estimate: 7,656 MW in 2025
NM: 4% solar electric by 20200.6% DG by 2015
AZ: 4.5% DG by 2025
NV: 1% solar by 2015;2.4 to 2.45 multiplier for PV
MD: 2% solar electric in 2022
CO: 0.8% solar electric by 2020
DC: 0.4% solar by 2020; 1.1 multiplier for solar
NY: 0.1542% customer-sited by 2013
DE: 2.005% solar PV by 2019;triple credit for PV
Solar water heating counts towards solar set-aside
DSIRE: www.dsireusa.org February 2009
WA: double credit for DG
DG: Distributed Generation
NH: 0.3% solar electric by 2014
NJ: 2.12% solar electric by 2021
PA: 0.5% solar PV by 2020
NC: 0.2% solarby 2018
OH: 0.5% solarby 2025
MA: TBD by MA DOERMI: triple credit for solar
MO: 0.3% solar electric by 2021
State RPS with solar/DG provision
State renewables goal with solar/DG provision
TX: double credit for non-wind(non-wind goal: 500 MW)
UT: 2.4 multiplierfor solar
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
Largest RPS Markets for Solar (2009): AZ, NJ, NV, and CO
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Cu
mu
lati
ve S
ola
r C
apac
ity
(MW
)
0
100
200
300
400
500
600
700
800
900
An
nu
al S
ola
r A
dd
itio
ns
(MW
)
AZ
NJ
MD
OH
PA
NM
NC
MO
DE
NV
CO
DC
NH
NY
Annual Capacity (right axis)
Cumulative Capacity (left axis)
RECs and SRECs• Who owns them? How can you use them?
- LBNL (04/06): 11 states address ownership (+ 2 pending at the time)- DSIRE (02/09): 23 states address ownership, of 12 “new” policies, 9 to customer-generator.
• Bundled or Unbundled (e.g., CA)• Innovative Programs
- Xcel solar rebates + SREC purchase, PSEG (NJ) Solar Loan, NJ SREC contracts, MD SREC contracts.
Interconnection Standards
* Freeing the Grid 2008: www.newenergychoices.org
IREC model: www.irecusa.org/index.php?id=87
• Technical issues include safety, power quality, system impacts. Technical issues largely resolved.• Policy issues include legal and procedural considerations. State approaches vary widely.• Best policies adopted by IL, NJ, PA, NM, MD.*
• Allows customers to store any excess electricity generated, usually in the form of a kWh credit, on the grid for later use.
• Available “statewide” in 39 states. State policies vary dramatically.
• Best policies adopted by CO, MD, FL, NJ, OR.*
Net Metering
IREC model: www.irecusa.org/index.php?id=88
* Freeing the Grid 2008: www.newenergychoices.org
Net Metering (February 2007)
State-wide net metering for certain utility types (e.g., IOUs only)
Net metering offered by one or more individual utilities
Net metering is available in
41 states + D.C.
NH: 25MA: 60RI: 25 *CT: 100
50
www.dsireusa.org
80,000
100
100
1,000
25
50
100
402025/100
2,00040 150
10/100
25 no limit
25/100
25/100
10
500
VT: 15/150
10/400
PA: 50/1,000/2,000 NJ: 2,000DE: 25MD: 500DC: 100VA: 10/500
15
10
100
25
50
10
30
*
State-wide net metering for all utility types
* *
*
*
**
*
*
*
**
*
***
*
#s indicate system size limit (kW); in some cases limits are different for residential and commercial as shown
*
20/100
*
**
25
Only 5 States with 1 MW+ Net Metering
Net Metering
State-wide net metering for certain utility types only (e.g., investor-owned utilities) Net metering offered voluntarily by one or more individual utilities
Net metering is available in
44 states + D.C.
NH: 100MA: 60/1,000/2,000*RI: 1,650/2,250/3,500*CT: 2,000*
100
DSIRE: www.dsireusa.org February 2009
80,000
100
100
1,000
100
4020
2,0001,000
10/100
25No limit
LA: 25/300
25/300
500
VT: 250
NY: 25/500/2,000*PA: 50/3,000/5,000*NJ: 2,000*DE: 25/500/2,000*MD: 2,000DC: 1,000VA: 10/500*NC: 20/100*
30
10
10050
State-wide net metering for all utility types
* *
*
**
*
**
*
**
Note: Numbers indicate individual system size limit in kilowatts (kW). Some states’ limits vary by customer type, technology and/or system application; this is the case when multiple numbers appear for one state. Other limits may also apply. For complete
details, see www.dsireusa.org.
25
100
25/2,000
* 25/100
*
40*
*
FL: 2,000*
*
25/2,000
(KIUC: 50)
co-ops, munis: 10/25
25
20/100
*20
No limit
*
20
Net Metering: Meter Aggregation/Community Net Metering
• Aggregation: OR, WA, PA, ME, VT, RI
• Community: NJ, CA, MA, VT
• Proposed: VA, CO
Could make participation more flexible and help achieve DG goals at a lower cost BUT community net metering poses numerous of policy questions for regulators (e.g., definition of community, program limitations).
Solar Access Laws
• 14 states limit or prohibit restrictions that neighborhood covenants and/or local ordinances may impose on the use of solar-energy systems.
(Solar easements allow for the rights to existing solar access on the part of one property owner to be secured from another property owner whose property could be developed in such a way as to restrict the solar resource. Transferred with property title. Many other states allow these.)
In Conclusion…State trends:Dominance of RPS
Super-sized net metering
Interest in FITs/PBIs
Property Tax Vehicles
State/Federal Interaction
Room for Improvement:
Incentives for non-taxpayers
Utility rate structures
REC-selling opportunities
Market coordination
Wild cards: Federal RPS? Credit markets? State budgets? Electricity rates? Technology
breakthroughs?
QUESTIONS??
This concludes The American Institute of Architects Continuing Education Systems Program
Northeast Sustainable Energy Association
S lar P rtal Solar-Specific Incentive Information
Clickable U.S. Map for Quick Access to PV Incentives
PV Incentive Summary Maps
State-by-State Incentive Comparison Tables
Tax Credits, Rebates, Solar Portfolio Standards, Net Metering
PV Incentive Program Installation Data from IREC
# of Installations, Incentive $ Expenditures, Capacity Installed
Solar Policy Guide
State Program Name Eligibility Incentive Amount Maximum IncentiveREC
OwnershipEligible System Size Funding Source Program Budget
Expiration Date
Project Pre-approval Required
California California Solar Initiative Incentives
All customers of investor-owned and publicly owned California utilities
Varies by sector and system size
Varies by sector and administering utility
Remains with project owner
1 kW minimum Rate-payer funds $3.2 billion over 10 years, beginning 1/1/2007
12/31/2017 Yes
Connecticut CCEF - Solar PV Rebate Program
Non-Commercial customers of United Illuminating Company or Connecticut Light & Power. (Homes limited to four family residences.)
Residential: $5/W (PTC rating) for first 5 kW; $4.30/W (PTC) for next 5 kW, adjusted based on expected performance; Gov't/Non-profit: $5/W (PTC rating), adjusted based on expected performance
Residential: $46,500;Gov't/Non-profit: $50,000Incentives will be subject to a maximum of the customer’s average annual or expected electric usage
Remains with project owner
10 kW maximum Connecticut Clean Energy Fund (public benefits fund)
$11.5M beginning 10/1/2004
When funds are exhausted
Yes
Connecticut CCEF - On-Site Renewable DG Program
Non-Residential Customers of United Illuminating Company or Connecticut Light & Power
$5/W PTC plus $0.02/kWh for projects installed in southwestern Connecticut
$2.5M (plus, potentially, $0.02/kWh for projects installed in southwestern Connecticut). Incentive funding limited to systems with a maximum capacity of 500 kW (PTC).
Remains with project owner
10 kW minimum; Maximum size is limited to the difference between the most recent 12 months’ peak demand and the “base load.” System’s AC generation output may not be sized greater than 80% of the facility’s highest peak load in any one hour.
Connecticut Clean Energy Fund (public benefits fund)
$42.5M program budget beginning 12/1/05
None Yes
Delaware Green Energy Program Incentives
All customers of Delmarva, Delaware EC and customers of participating municipal utilities
50% of installed cost; PV system cost may not be in excess of $12/W
Delmarva: Residential: $31,500; Commercial: $250,000 / Co-ops and Munis: Residential: $15,000; Commercial: $30,000
Remains with project owner
No system size restrictions
Green Energy Fund (Delmarva) , DEC Renewable Resources Fund, Municipal Utility Green Energy Fund (public benefits fund)
Delmarva: ~2.08 million; DEC: Varies by month (FY 07: 207,000); Munis: Varies by month (FY 07: 321,044 across 9 municipals)
New funds allocated monthly
Yes
Florida Solar Energy System Incentives Program
Any resident or entity $4/watt DC Residential: $20,000; Non-residential: $100,000
Remains with system owner
2 kW minimum General Revenue Funds (appropriated annually)
FY 2007-08: $3.5M 6/30/2010 No
Excerpt from State PV Rebate Comparison Table
California goal of 3,000 MW equals ~ 1.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
NM AZ NJ MD DE NV PA DC CO NH NC NY
20
25
So
lar
Ge
ne
rati
on
/ E
lec
tric
ity
Sa
les
High Low
Most Aggressive RPSs, Required Solar as % of Sales
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
Solar Capacity Resulting from RPS Solar Policies
• 2005 Outlook ~ 1,000 MW• 2006 Outlook ~ 2,700 MW• 2007 Outlook ~ 6,000 MW• 2008 Outlook ~ 7,550 MW
Largest markets:
•NJ (1500 MW) •MD (1500 MW) •AZ (1000-1500 MW)•PA (850 MW)
