Update from DSIRE: Solar Policy News

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Update from DSIRESolar Policy News Trends

• Susan Gouchoe
• North Carolina Solar Center
• IREC/SAI Annual Meeting
• San Jose, California
• October 16, 2006

2
Focusing on

• New Solar Incentives Policies
• Status Trends
• DSIRE Expansion to Energy Efficiency

3

• Tennessee Business Grant
• 40 grant up to 40,000 for PV
• 20 up to 20,000 for solar thermal, wind, solar
  hybrid lighting, fuel cells
• Facility must undergo an energy audit.  
• 3,750,000 incentive budget

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Florida Rebates Grants

• Solar Rebates
• residents, businesses, non-profits, public
  facilities
• PV, SWH, Solar pool heating
• extends through June 20, 2010
• 2.5 million for FY 2006-2007
• Grants for Renewable Energy RDD
• municipalities and county governments,
  businesses, universities, utilities, and
  not-for-profits
• solar and other renewables
• up to 15 million for FY 2006-07

5

• New Mexico Solar Tax Credit
• 30 tax credit (less any federal credit)
• 9,000 maximum
• PV, solar water heating, solar space
  heating/cooling
• Available through 2015
• 3M/year for PV 2M/year for solar thermal
• PNM REC Purchase Program
• 0.13/kWh PV lt 10 kW through 2018
• Funding for 1.2 MW (2.8 M)

6

• Arizona Tax Incentives
• 10 tax credit
• Commercial industrial solar and wind
• Solar water heating, solar space heating and
  cooling, PV
• Retroactive to January 1, 2006, extends through
  2012.
• New property tax exemption for solar
• Eliminated 5,000 limit to solar wind sales tax
  exemption
• Arizona Proposed EPS changes
• Proposed increase to 15 by 2025 (now 1.1 by
  2007)
• 30 of the renewables from DG (1,800 MW)
• Final decision expected late 2006

7

• Colorado Utility PV Incentives
• Xcel Energy, Aquila, and Colorado Public
  Utilities
• Compliance with solar set-aside of RE Standard
  (A37)
• 4 of the 10 RES -- solar electric
• at least 1/2 of solar set-aside -- customer-sited
  
• Minimum 2/W PV rebate (up to 100 kW) plus
• Payment for SO-RECs
• 2.50/W - 3/W (up to 10 kW)
• based on metered output (gt10 kW)
• Recent Xcel RFP for customer-sited SO-RECs (gt10
  kW - 2 MW)

8

• New Jersey RPS Revisions
• Boosted RPS to 22.5 by 2021
• formerly 6.5 by 2008
• Increased solar set-aside to 2.12 by 2021
• formerly 0.16 by 2008
• Estimated 1,500 MW solar electric capacity
• Watch for transition from rebates to a REC-based
  incentive mechanism

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• California

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• California Solar Initiative
• 1. CPUC 2.2 B for commercial projects and
  residential retrofits
• Performance-Based Incentive Levels for 2007
• Systems under 100 kW
• 2.50 per watt - residential and commercial
• 3.25 per watt - government and nonprofits
• Incentive adjusted based on expected performance
• Systems 100 kW and larger
• 0.39/kWh for 5 years - taxable entities
• 0.50/kWh for 5 years - government and nonprofits
• 2. CEC 400 million for solar in residential
  new construction
• 3. Municipal utilities 784 million for solar
  incentive programs

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Performance-Based PV Incentives

• State Programs
• Approaches used by WI, PA SDF, MA, WA, CA
• CA PBI begins in 2007 as part CSI
• CT CEF changed from capacity based to expected
  performance (EPBB)
• NJ moving toward REC-based incentives to replace
  rebates
• Utility PV Incentives
• PNM - PBI 0.13/kWh through 2018
• SRP (AZ) and LADWP - transitioned to expected
  performance basis
• SMUD - developing EPBB
• Xcel Energy, Aquila - EPPB (small systems) PBI
  (large systems)

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Solar PV Incentives
Oct. 2006
www.dsireusa.org
WA 15 - 54/kWh
VT 1.75-3.50/W
U
MN 2/W
500 (P)
15
NY 4-4.50/W
35 (C)
3/W (P)
35 (C)
U 2/W
U
MA 2/W
15 (P)
25 (P)
OR 1 2.25/W
WI 1.50-2/kWh-1 yr.
RI 25 (P)
U
CT 5/W
U
WY 50
U
NJ 3.80/W
OH 3.50/W
U 3-5/W
IL 30
DE 50
25 (P)
U 2-4/W
MD 20
10 (C)
U 4-5/W
CEC 2.60/W PUC 2.50/W
35
U
U 20/kWh
TN 40
25 (P)
30 (P)
10 (C)
U 13/kWh
U 2-3/W
U
U
FL 4/W
35
U
Utility Incentives
X
Tax Credit (P) personal, (C) corporate
State Rebate
/W or
New in 2006
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Solar PV Incentives

• 17 state programs
• revived in CA, MD, IL, VT, OH
• amt. reduced in CA, NJ, VT, OH, IL, WI, OR
• amt. ranges 1/W - 5/W
• 3 state-wide utility rebates
• CO, NV, AZ
• 50 utilities in 15 states
• 11 state tax credits
• increased max. in NY, OR, HI
• Amt. ranges 10 - 35
• 25K - 3.5M commercial
• 500 - 10,500 residential

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Solar/DG Provisions in RPS Policies
NY 0.1542 customer-sited by 2013
NV 1 by 2015 2.4 to 2.45 multiplier for PV
NJ 2.12 solar by 2021
PA 0.5 solar by 2020
CO 0.4 solar by 2015
DE triple credit for solar
DC 0.386 solar by 2022
NM triple credit for solar
AZ 0.66 solar by 2007 (4.5 DG by 2011
proposed)
MD double credit for solar
TX 500 MW non-wind
W
Solar thermal counts towards solar set-aside
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Solar Capacity Resulting from RPS Policies

• As of 2005
• 1,000 MW
• Largest markets PA (640 MW), NJ (110 MW), CO
  (78131 MW) AZ (19 - 96 MW)
• As of 2006
• More than 2,700 MW
• Resulting from NJ revision and assuming proposed
  changes to AZ EPS are adopted
• Source Ryan Wiser and Mark Bolinger
• http//www.cleanenergystates.org/library/ca/CEC_wi
  ser_solar_estimates_0205.pdf

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Energy Efficiency Incentives Policies
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Summary Tables EE Incentives Policies
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(No Transcript)
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Susan Gouchoe susan_gouchoe_at_ncsu.edu 919-513-3078
Rusty Haynes rusty_haynes_at_ncsu.edu 919-513-0445
www.dsireusa.org
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extra slides
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DSIRE www.dsireusa.org


September 2006
Renewables Portfolio Standards
MN 10 by 2015 Goal Xcel mandate of 1,125 MW
wind by 2010
VT RE meets load growth by 2012
ME 30 by 2000 10 by 2017 goal - new RE
WI requirement varies by utility 10 by 2015
Goal
MT 15 by 2015
MA 4 by 2009 1 annual increase
RI 15 by 2020
CT 10 by 2010
IA 105 MW
CA 20 by 2010

• NY 24 by 2013

• NJ 22.5 by 2021

IL 8 by 2013

• NV 20 by 2015

• CO 10 by 2015

• PA 18¹ by 2020

MD 7.5 by 2019
NM 10 by 2011

• AZ 1.1 by 2007
• (15 by 2025 proposed )
  

DE 10 by 2019

• DC 11 by 2022

TX 5,880 MW by 2015
State RPS
HI 20 by 2020
State Goal

• Minimum solar or customer-sited requirement
• Increased credit for solar
• ¹PA 8 Tier I, 10 Tier II (includes
  non-renewable sources)

SWH eligible
New/Revised