State Solar Policy: Overview

1
State Solar Policy Overview Trends

• Rusty Haynes
• N.C. Solar Center
• N.C. State University
• NCSL Solar Energy InstituteWashington, D.C.
• October 19, 2007

2
Presentation Outline

• Financial Incentives to Promote Solar
• Regulations Policies to Promote Solar
• Overview of DSIRE

3
State Financial Incentives for Solar

• Direct Incentives
• Rebates (17)
• Grants (14 DC)
• Production Incentives (3)
• Tax Credits/Deductions/Exemptions (22)
• Low-Interest Loans (20)
• Sales Tax Exemptions (15)
• Property Tax Incentives (26)
• Industry Recruitment Incentives (9)

4
Public Benefit Funds for Renewables
DSIRE www.dsireusa.org


October 2007
Cumulative, 1998-2017 (millions of )
10
111
VT 36
95
MA 383
85
22
RI 10
1,122
CT 338
80
NJ 279
20
127
DE 11
DC 10.5

2,048
16 states DC 4 billion by 2017
Funded by voluntary contributions
5
Direct Incentives for Solar PV
DSIRE www.dsireusa.org


October 2007
15 - 54/kWh
VT 1.75-3.50/W
U
2/W
3.50/W
U
U
MA 2/W
NY 4-5/W
1.50-2/kWh-1 yr.
1 2.25/W
U
U
CT 5/W
U
U

• 22 state programs
• (includes CO, NV, AZ -
• RPS-inspired U programs)
• NJ, CA, NY transitions
• 55 utilities/nonprofits in 20 states

50
U
NJ RECs
U
3.50/W
3-5/W
DE 50
30
U
2-4/W
MD 20
5/W
2-4.50/W
U
1.90-2.95/W 26-46/kWh, 5 yrs.
U
18/kWh
40
13/kWh
2-4/W
U
U
4/W
/ W
State Program
Utility Program
6
Direct Incentives for Solar PV, 1997
DSIRE www.dsireusa.org
10-20 up to 75K
50 up to 10K
Varies by project
2K - 10K
10K - 50K
60K - 1M
7
DSIRE www.dsireusa.org


October 2007
Solar PV Tax Credits
500 (R)
15
35 (C)
3/W (R) 50 (C)
MA 15 (R)
25 (R)
100 Deduct. (R)
RI 25 (R)
25 (R) 10 (C)

• Tax credits in 13 states
• Range 10 - 50
• FL, IA, NE, OK have small PTCs (PV eligible)
• 10 states proposed new credits in past year

varies
35
25 (R)
30 (Non-Corp.) 2.7/kWh 10 yrs. (C)
10 (NR)
50 (R)
35
(R) Residential (C) Commercial (NR)
Non-Residential
8
Financial Incentives Best Practices

• Education outreach program
• Generous incentive, declining over time
• Stable funding source
• Easy application process
• Cost-effective quality assurance mechanism
• Qualified installers
• Partnerships - banks, installers, NGOs

9
Financial Incentives Best Practices

• Utility cooperation (interconnection)
• Public sector eligibility
• Program flexibility
• Track program usage details share data

10
State Regulations Policies

• Renewable Portfolio Standards/Goals (29)
• Public Benefits Fund (16 DC)
• Net Metering (38)
• Interconnection Standards (20)
• Solar Access Laws (34)
• Green Power Purchasing Policies (11)
• Fuel Source Emissions Disclosure (24 DC)
• Contractor Licensing (9)
• Equipment Certification (6)

11
DSIRE www.dsireusa.org


October 2007
Renewables Portfolio Standards Goals
MN 25 by 2025 (Xcel 30 by 2020)
ME 30 by 2000 10 by 2017 - new RE
VT RE meets load growth by 2012
WA 15 by 2020

• NH 23.8 in 2025

ND 10 by 2015
WI requirement varies by utility 10 by 2015
goal
MA 4 by 2009 1 annual increase
MT 15 by 2015
OR 25 by 2025 (large utilities) 5 - 10 by
2025 (smaller utilities)
RI 16 by 2020
CT 23 by 2020
IA 105 MW

• NV 20 by 2015

• NY 24 by 2013

• NJ 22.5 by 2021

• CO 20 by 2020 (IOUs)
• 10 by 2020 (co-ops large munis)

IL 25 by 2025

• PA 18¹ by 2020

CA 20 by 2010
MO 11 by 2020

• MD 9.5 in 2022

• NC 12.5 by 2021 (IOUs)
• 10 by 2018 (co-ops munis)

• AZ 15 by 2025

• DE 20 by 2019

• DC 11 by 2022

• NM 20 by 2020 (IOUs)
• 10 by 2020 (co-ops)

VA 12 by 2022
TX 5,880 MW by 2015
State RPS
HI 20 by 2020
State Goal

• Minimum solar or customer-sited RE requirement
• Increased credit for solar or customer-sited RE
• ¹PA 8 Tier I / 10 Tier II (includes
  non-renewables)

Solar water heating eligible
12
DSIRE www.dsireusa.org
Renewables Portfolio Standards, 1997
ME 30 by 2000
MN 425 MW by 2002
MA Under Development
NV 1 by 2009
IA 105 MW by 1999
AZ 1.1 by 2007
State RPS
13
RPS Issues

• Eligible Resources?
• Existing vs. New Resources?
• Utilities Subject to Requirement?
• Percentage of Sales or Capacity?
• Duration?
• Location of Resources?
• Tradable Credits?
• Compliance Mechanisms?

14
DSIRE www.dsireusa.org


October 2007
Solar/DG Provisions in RPS Policies (6,000 MW
solar capacity)
WA double credit for DG
NH 0.3 solar-electric by 2014
NY 0.1542 customer-sited by 2013
NV 1 solar by 2015 2.4 to 2.45 multiplier for
PV
NJ 2.12 solar-electric by 2021
CO 0.8 solar-electric by 2020
PA 0.5 solar PV in 2020
MD 2 solar-electric in 2022
DE 2.005 solar PV by 2019 (Triple
credit for PV)
DC 0.386 solar-electric by 2022
AZ 4.5 DG by 2025
NC 0.2 solar by 2018
NM 4 solar-electric by 2020 0.6 DG
by 2015
Solar thermal counts towards solar set-aside
DG Distributed Generation
15
DSIRE www.dsireusa.org


October 2007
New RPS Policies Goals (Since fall 2006)
WA 15 by 2020
ND 10 by 2015
double credit for DG
NH 23.8 in 2025
0.3 solar electric by 2014
33 MW
OR 25 by 2025 (lg. utilities) 5 - 10 by
2025 (sm. utilities)
IL 25 by 2025
VA 12 by 2022
MO 11 by 2020
NC 12.5 by 2021 (IOUs) 10 by 2018 (co-ops
munis)
0.2 solar by 2018
300 MW
300 MW
State RPS
State Goal
16
DSIRE www.dsireusa.org


October 2007
Increased/Expanded RPS Policies(Since fall 2006)
MN 25 by 2025 (Xcel 30 by 2020)
CT 23 by 2020
CO 20 by 2020 (IOUs) 10 by 2020 (co-ops
large munis)
MD 9.5 in 2022
0.8 solar electric
180 MW
2 solar electric
1500 MW
DE 20 by 2019
AZ 15 by 2025
2 solar PV
175 MW
4.5 DG
1250 MW

• NM 20 by 2020 (IOUs)
• 10 by 2020 (co-ops)

4 solar electric by 2020 0.6 DG by 2015
500 MW
17
How to Promote Solar via RPS Policies

• Increasing support of solar in RPS policies
• Favoring set-asides rather than multipliers (MD,
  NM, DE)
• Separate requirements for IOUs and munis/co-ops
• Non-electric solar thermal is eligible in 10
  states
• (eligible for set-aside in 3 states)
• Potential solar capacity from solar set-asides
  6,000 MW

18
Interconnection Standards
Interconnection standards are adopted to govern
how DG systems are connected to the electric
grid.

• Technical issues include safety, power quality,
  system impacts. Most technical issues have been
  resolved.
• Policy issues include legal and procedural
  considerations. State approaches vary widely.
  Best practices adopted by NJ, OR, CO.

19
Interconnection Best Practices

• Individual system capacity limit 10 MW
• All utilities participate all customers
  eligible
• Multiple levels of review (3 or 4)

• Transparent screens, study reviews, timelines
• Minimal application fees no additional fees,
  charges
• Standard form agreement, application
• No additional insurance requirements
• IEEE 1547
• Network interconnection permitted
• No external disconnect switch
• Customer retains RECs

20
Net Metering

• Net metering allows customers to generate their
  own electricity and store any excess electricity,
  usually in the form of a kWh credit, on the grid
  for later use.
• Net metering available statewide in 38 states.
  State policies vary dramatically. Best practices
  adopted by
• CO, NJ, PA, MD, CA.

21
Net Metering
www.dsireusa.org

October 2007
NH 100 MA 60 RI 1,000/1,650 CT 2,000
100
VT 15/150
100


100
50

40

25/2,000
10/400
20


25/100
30

25


no limit

500
PA 50/3,000/5,000 NJ 2,000 DE
25/500/2,000 MD 2,000 DC 100 VA 10/500


1,000



25
40
10


25

2,000
1,000
100
15

20/100


80,000
100
25/300
varies

10/100

50
25/100
50
varies
Net metering is available in 42 states D.C.
State-wide net metering for all utility types
State-wide net metering for certain utility
types (e.g., investor-owned utilities only)

Net metering offered by one or more individual
utilities
(Numbers indicate individual system size limit
in kilowatts. Some states limits vary by
customer type, as shown)
22
Net Metering Best Practices

• Maximum system capacity 2 MW
• All renewables eligible ( CHP)

• All utilities must participate
• All customer classes eligible
• Limit on aggregate capacity 5
• Annual reconciliation of NEG, or no expiration
• Interconnection standards
• No application fee
• No special charges, fees or tariff change
• Customer owns RECs

23
Net Metering Revised Statutes/Rules(Since fall
2006)

• Individual capacity raised AR, CT, DE, MD,
• NH, NM, NV, OR, PA, RI
• Aggregate capacity raised CT, DE, MD, NH,
• OR, RI, VA
• More renewables eligible DE, OR, NH, OH, VA
• NEG treatment clarified/improved AR, CT,
• DE, MD, NH, NV, OH, OR, PA
• REC ownership clarified/improved AR, CA,
• DE, MD, NV

24
Solar Access Laws

• Solar easements allow for the rights to existing
  solar access on the part of one property owner to
  be secured from an owner whose property could be
  developed in such a way as to restrict that
  resource. Transferred with property title.
• 13 states limit or prohibit restrictions that
  neighborhood covenants and/or local ordinances
  can impose on the use of solar equipment.

25
The DSIRE Project

• Database of State Incentives for Renewables
  Efficiency
• www.dsireusa.org

26
Rusty Haynes rusty_haynes_at_ncsu.edu
919.513.0445 www.dsireusa.org dsireinfo_at_ncsu.edu

27
Solar Capacity Resulting from RPS Solar Policies

• 2005 Outlook 1,000 MW
• 2006 Outlook 2,700 MW
• 2007 Outlook 6,000 MW Largest markets
• NJ (1500 MW)
• MD (1500 MW)
• AZ (1000-1500 MW)
• PA (850 MW)