US Solar Market: Overview of State and Federal Incentives

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1 US Solar Market: Overview of State and Federal Incentives Rhone Resch President Solar Energy Industries Association

2 Solar Energy Industries Association National trade association for solar technology companies Advocate for good public policy supporting solar Federal focus with SEIA divisions leading state activities Work to expand markets for solar nationwide Educate public and policy makers to the benefits of solar Promote and enforce SEIA code of ethics Member Benefits National voice of solar Orchestrated national media campaign Receive critical news and information Create invaluable partnership prospects Participate in networking opportunities Receive membership discounts Annual national Solar Conference Shape our Solar Power Future through your Participation

3 Organizational Structure R&D Board of Directors Government Affairs Executive Committee Public Relations 14 State Chapters Staff Solar Thermal Staff Concentrating Solar Power Staff PV Staff Advocates, EI Other Market Advocacy Fund Market Advocacy Fund PV Now Market Advocacy Fund

4 Concentrating Solar Power

5 Solar Water Heating

6 Photovoltaics

7 Solar Resources

8 PV Shipments and Market Share 50% 1300 U.S. Share of World PV Market 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ROW Europe Japan U.S. U.S. Market Share MWs Shipped Source for market data: Paul Maycock, PV News, Volume 24, No. 3 March 2005

9 NEPA 2005 Energy Bill First Residential Tax Credit in 20 Years 30% capped at $2,000 Available for PV and DSHW Expands Commercial Credit 30%, no cap Covers all equipment and installation costs Available for all technologies

10 NEPA 2005 Energy Bill Federal Government PV Purchase Program MW Electricity Provisions Net metering Interconnection Time-based rates Clean and Renewable Energy Bonds Federal Loan Guarantees Increases solar R&D to $250 million annually

11 Existing State RPS Requirements: 18 States and Washington D.C. NV: 15% by 2013 CA: 20% by 2010 MN (Xcel): 825 MW wind by % by 2015 IA: 105 amw CO: 10% by 2015 WI: 2.2% by 2011 NY: 24% by 2013 PA: 8% by 2020 MD: 7.5% by 2019 ME: 30% by 2000 MA: 4% new by 2009 RI: 16% by 2019 CT: 10% by 2010 NJ: 6.5% by 2008 DC: 11% by 2022 NM: 10% by 2011 AZ: 1.1% by 2007 HI: 20% by 2020 TX: 2880 MW by 2009 Source: Ryan Wiser, LBNL, 2005

12 Solar Set-Asides: 6 States and Washington, D.C. NY: % customer- sited PV, fuel cells, wind by 2013 NV: 0.75% solar by 2013 PA: 0.5% solar PV by 2020 NJ: 0.16% solar by 2008 DC: 0.386% solar by 2021 CO: 0.4% solar by 2015 (half from customer-sited projects) AZ: 0.66% solar by 2007 Source: Ryan Wiser, LBNL, 2005

13 State by State Summary State Arizona California Status Revamping program now, should be ready middle of 2006 Existing, Governor good chance of major expansion in early 2006 Market Size 2017 Starts 1,400 MWs ,000 MWs 2006 Connecticut Existing, subsidy underutilized, 2 MW per year 15 MWs Current Colorado Passed RPS, putting rules in place by end of MWs 2006 DC Passed RPS, putting rules in place by mid MWs 2006 Florida FPL/Green Mountain program 350 kw per year 2 MWs 2006 Hawaii High electricity prices, smaller systems, need tax credit investor 15 MWs Current Nevada Existing, slight program improvements ongoing 120 MWs Current Source: Sun Edison

14 State by State Summary State Status Market Size 2017 Starts New Jersey Existing, slight program improvements 120 MWs Current New York Passed RPS, putting rules in place by end of MWs 2007 Pennsylvania Passed RPS, putting rules in place by end of MWs 2007 Rhode Island Existing, rebates are changing slightly 5 MWs Current Texas Austin AK, DE, IL, MA, MN, NC, OH, MI, ME, MA, MT, OR, VT Totals Small systems, launching larger program by the end of 2006 Existing programs, generally small. Need some work on interconnection, net metering, customer awareness, low rebates, etc. 5,000 MWs either passed or being negotiated in next 12 months. 100 MWs MWs ~5,900 Source Sun Edison

15 State Incentives

16 State Incentives

17 State Incentives

18 Piecing Together Markets North Carolina Net metering, 35% personal and business investment credits, $.20 / kwh production incentive, 25% state tax construction incentive for manufacturers. Washington Net metering, $ $0.36 / kwh production incentive depending on location of product manufacture. Loans and individual utility rebates $400 - $1500 / kilowatt. 40% state tax incentive for manufacturers. New York Net metering, 25% tax credit, $4 - $4.50 / Watt state rebate. Subsidized loans. Other utility rebates $4 5 / Watt. Property tax exemptions. New Jersey Net metering, $ $0.25 / kwh SRECs (428 contracts in first year), $ $5.30 / Watt state rebate.

19 2006 Priorities SEIA Expand Markets Extend the Federal Tax Credits Support PV NOW State Activities Remove Market Barriers Standardize Interconnection and Net Metering Implement other Energy Bill Programs Expand R&D Increase Outreach and Education Media Campaign National Data Collection and Analysis Website Portal for Information on Solar

20 2006 Priorities PV NOW Preserve and Extend Successful Programs Encourage Sharing of Best Practices for Emerging Markets RPS structure that will be effective at building solar markets Identify and Eliminate Market Barriers Net metering State Focus California New Jersey Pennsylvania New York Texas Arizona Colorado DC

21 Rhone Resch (202)

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