Introduction to Solar Policy Workshop. Presented by the NY-Sun PV Trainers Network

Transcription

1 Introduction to Solar Policy Workshop Presented by the NY-Sun PV Trainers Network 1

2 Significantly expand installed solar capacity Attract private investment Enable sustainable development of a robust industry NY-Sun Initiative Stimulate the Statewide Market Place Goal of 3 GW $961 Million Total Budget Create well-paying skilled jobs Improve the reliability of the electric grid Reduce Soft Costs Reduce air pollution Make solar available to all New Yorkers that want it 2

3 About the PV Trainers Network The NY-Sun PV Trainers Network aims to lower the installation cost and expand adoption of solar PV systems throughout the state. training.ny-sun.ny.gov 3

4 About the PV Trainers Network Lead Organizations Supporting Organizations 4

5 Program Covers Entire State SUNY Canton Erie Community College SUNY Delhi CUNY Ulster BOCES Services available across NYS Network partners across NYS Bronx Community College Pace University 5 CUNY

6 PV Trainers Network Services Offered In-Depth Trainings Intro to Solar Policy One-on-one Assistance Resources 6

7 Agenda Putting Solar Energy on the Local Policy Agenda State of the NY Solar Market & Intro to Solar Soft Costs Solar Policy and Incentives Solar Project Economics and Financing Making Your Community Solar Ready Programs to Grow Your Solar Market Next Steps 7

8 $ per Watt $ per Watt US Solar Costs $4.00 $1.60 Solar Soft Costs $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- US Solar Cost $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 German Solar Cost Other Paperwork Permitting & Inspection Column1 Non-Hardware Cost Financing Costs Hardware Cost Customer Acquisition Installation Labor 8 Source: NREL, LBNL

9 Not Enough Sun in NY? 9 Source: National Renewable Energy Laboratory

10 System Components The Grid Tied Solar Electric System Solar Panels Sunlight creates DC Electricity Inverter Changes DC Power to AC (AC Power used in Home) Net Metering Excess (Unused) power turns your meter backward and travels back into the grid. Utility issues credits for power produced. 10

11 Scale Residence 5-10 kw Factory 1 MW+ Office kw Utility 2 MW+ 11

12 System Types Roof Mount Ground Mount Parking Canopy 12

13 Cents per kwh Mitigate Energy Price Risk Average Retail Price of Electricity in New York Source: US Energy Information Administration 13

14 MW-DC NY State Solar Market Solar PV in New York State *2015 Annual Installations Cummulative Cumulative Total Total * 2015 figures through November 30,

15 $/Watt NY State Solar Market Weighted Average Installed Cost NYS $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 * 2015 figures through Nov. 30,

16 Solar Job Growth in the US 250, , , ,000 50,000 SEIA Estimates The Solar Foundation Source: SEIA Estimates ( ),The Solar Foundation s National Solar Jobs Census 2010 (2010),The Solar Foundation s National Solar Jobs Census 2013 ( ). 16

17 Why We Are Here Workshop Goal: To enable policymakers to replicate successful solar practices that reduce soft costs and expand local adoption of solar energy. 17

18 Agenda Putting Solar Energy on the Local Policy Agenda State of the NY Solar Market & Intro to Solar Soft Costs Solar Policy and Incentives Solar Project Economics and Financing Making Your Community Solar Ready Programs to Grow Your Solar Market Next Steps 18

19 Net Metering Net metering allows customers with PV to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage 19

20 Average Hourly kwh Net Metering Exports to Grid Load Met by Grid Load Met by Solar AM 4 AM 8 AM 12 PM 4 PM 8 PM Household Consumption Solar Generation 20

21 Example Net Metering Bill with Credit July Reading (Actual) June Reading (Actual) -56,451 Total Usage KWh 32 Days -100 Credit Net Metering Summary Prior Credit -50 Actual Metered Kwh -100 New Cumulative Credit -150 Billed KWH 0 Anniversary Month April Annual Reconciliation Month Delivery Charges Basic Service Charge First 0 0.XXX 0 Energy Cost Adj 0 0.XXX 0 SBC/RPS Chg 0 0.XXX 0 Government surcharges 0.5 Total Delivery Charges Current Electric Charges Cannot be offset with solar Amount Due 21

22 Remote Net Metering Allows eligible non-residential customers to apply their net metering credits to offset the electricity usage of other properties they own or lease thereby reducing electricity costs Eligible properties must be: Under the same customer account holder Landfill Solar Project Town Hall Library Farms and non-residential Within the same utility 22 Within the same NYISO zone

23 Community Distributed Generation (Shared Solar) What is Shared Solar? Enables multiple customers to receive net metering credits from a single clean energy project Allows transferring of excess net metering credits to another customer Intended to allow residents and businesses to buy shares in larger community solar projects Phase I: October 2015 April 2016 Open only to projects with strategic grid locations or low-income participants Phase 2: Starting May 2016 Community DG expands access to solar (and other clean energy) generation to utility customers who cannot site generation directly Open to all projects 23

24 How Does Shared Solar Work? Electric Output e - Construct, Own and/or Operate Sponsor Utility Membership Information Bill Credits C $ Membership Payment for Solar Shares Subscriber/ Utility Customer 24 24

25 Interconnection in New York Technologies All DG renewables Utilities Investor Owned Utilities System Capacity Limit 25 kw simplified app. 2 MW limit 25

26 Investment Tax Credit Type: Tax Credit Eligibility: For-Profit Organization, Homeowner Value: 30% of the installation cost Availability: Extended through 2022 (declines to 26% in 2020, and 22% in 2021) 26

27 NY-Sun MW Block Incentive Type: Cash incentive Structure: Incentive offer declines as program grows Separate Incentives for: Residential Customers (up to 25 kw) Small Non-Residential Customers (up to 200 kw) Large Non-Residential Customers (200 2,000 kw) Program progress tracked separately by region For Large (>200 kw) projects, 20% adder for projects located on constrained distribution circuits Availability: Dec 29, 2023 or until funds run out 27

28 Agenda Putting Solar Energy on the Local Policy Agenda State of the NY Solar Market & Intro to Solar Soft Costs Solar Policy and Incentives Solar Project Economics and Financing Making Your Community Solar Ready Programs to Grow Your Solar Market Next Steps 28

29 Ownership Options for Solar Direct Ownership Third-Party Ownership 29

30 Direct Ownership Customer $ $ 30

31 Third Party Ownership Power Purchase Agreement or Lease Agreement Incentives $ Customer Developer 31

32 Third Party Ownership NY Residential Solar Installations by Ownership Type Installs 12,000 10,000 8,000 6,000 4,000 2,000 14% PPA 51% Lease 35% Direct Own Direct Own Lease PPA 32 Source: NYSERDA MW Block Incentive Database

33 Agenda Putting Solar Energy on the Local Policy Agenda State of the NY Solar Market & Intro to Solar Soft Costs Federal, State, and Utility Policy Drivers Making your Community Solar Ready Programs to Grow Your Solar Market Next Steps 33

34 Municipal Solar Projects Municipalities often prefer third-party ownership: Direct Ownership Main Benefit: Low municipal interest rate Third-Party Ownership Main Benefit: Municipalities can claim the tax credit 34

35 RFP Process 1 Stakeholder Engagement & Goal Setting 2 Data Collection & Site Identification 3 Develop and Publish RFP 4 Review Bids and Select Developer 5 Negotiate Contract 35

36 Processes of Concern Process Stakeholder Engagement Interconnection Zoning Municipal Action Engage with community members & local government officials early on Engage utility early in development process Review zoning code for solarrelated concerns (primary/accessory use, impermeable surface, setbacks, etc.) Environmental Review 36 Engage local SEQRA authority

37 Potential Project Timeline Step Stakeholder Discussions and Data Collection Days From RFP Issuance Pre-RFP Release RFP 0 RFP Submission Deadline Announcement of Selected Bidder Contractual Documents Signed System Design Completed & NYSERDA Application Submitted Project Construction Completed 1-2 months after release 1-2 weeks after deadline 1-6 months after announcement 2-6 months after contract 6-18 months after application 37

38 What is Solarize? Solar. Simple. Together. How it works: A six to nine month campaign where a community group partners with one or multiple preferred solar installers The community group promotes solar installation within the community and builds interest from high-quality leads The installer(s) provides special pricing to participants from the community A campaign deadline encourages commitment 38

39 Community Solar NY K-Solar: provides school districts with tools and expertise to bring solar energy to their facilities To find out more visit: Solar.aspx 39

40 Where to Start Resource Energize NY Energize NY Finance leverages PACE (Property Assessed Clean Energy) financing to help commercial and non-profit property owners undertake deep energy improvements. energizeny.org In-Depth Workshop Expanding Commercial Solar Financing Options with a PACE Program Technical Assistance Establish a PACE district Design a cost-effective program Support program administration 40

41 Next Steps: What can communities do now? Attend a training Host an event Request one-on-one assistance Let us know what the Program is missing Visit: Contact us: info@training.ny-sun.ny.gov 41

42 PV Trainers Network Online Portal 42 training.ny-sun.ny.gov

43 Available Training Topics 43 training.ny-sun.ny.gov

44 Thank You! Contact us: training.ny-sun.ny.gov 44

45 Contact NYSAC New York State Association of Counties (NYSAC) 540 Broadway 5 th Floor Albany, NY Phone: Staff Liaison: Jill Luther, jluther@nysac.org 45