State Solar Policy: Overview & Trends
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1 State Solar Policy: Overview & Trends Rusty Haynes N.C. Solar Center N.C. State University NCSL Solar Energy Institute Washington, D.C. October 19, 2007
2 Presentation Outline I. Financial Incentives to Promote Solar II. Regulations & Policies to Promote Solar III. 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 DSIRE: October 2007 Public Benefit Funds for Renewables Cumulative, (millions of $) $10 $111 $95 $22 $127 $2,048 $1,122 $20 $85 $80 VT: $36 MA: $383 RI: $10 CT: $338 NJ: $279 DE: $11 DC: $10.5 Funded by voluntary contributions 16 states + DC $4 billion by 2017
5 DSIRE: October 2007 Direct Incentives for Solar PV /kwh $1 $2.25/W $2-4/W U U $3-5/W $1.90-$2.95/W /kwh, 5 yrs. U U $2-4/W $3.50/W 50% $2-4.50/W 13 /kwh $2/W VT: $ /W U NY: $4-5/W MA: $2+/W $1.50-$2/kWh-1 yr. U CT: $5/W U U U U NJ: RECs U $3.50/W 30% DE: 50% $5/W MD: 20% U U 18 /kwh 40% U $4/W 22 state programs (includes CO, NV, AZ - RPS-inspired U programs) NJ, CA, NY transitions ~ 55 utilities/nonprofits in 20 states = Utility Program $ / W = State Program
6 DSIRE: Direct Incentives for Solar PV, % up to $75K 50% up to $10K Varies by project $2K - $10K $10K - $50K $60K - $1M
7 DSIRE: October 2007 Solar PV Tax Credits $3/W (R) 50% (C) $500 (R) 35% (C) 100% Deduct. (R) 15% 25% (R) MA: 15% (R) RI: 25% (R) 25% (R) 10% (NR) 35% 25% (R) 10% (C) 30% (Non-Corp.) ~2.7 /kwh 10 yrs. (C) (R) Residential; (C) Commercial; (NR) Non-Residential 50% (R) varies 35% 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
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: October 2007 Renewables Portfolio Standards & Goals *WA: 15% by 2020 OR: 25% by 2025 (large utilities) 5% - 10% by 2025 (smaller utilities) CA: 20% by 2010 *NV: 20% by 2015 AZ: 15% by 2025 MT: 15% by 2015 NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) ND: 10% by 2015 MN: 25% by 2025 (Xcel: 30% by 2020) IA: 105 MW CO: 20% by 2020 (IOUs) *10% by 2020 (co-ops & large munis) WI: requirement varies by utility; 10% by 2015 goal IL: 25% by 2025 MO: 11% by 2020 VT: RE meets load growth by 2012 NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) ME: 30% by % by new RE NH: 23.8% in 2025 MA: 4% by % annual increase RI: 16% by 2020 CT: 23% by 2020 NY: 24% by 2013 NJ: 22.5% by 2021 PA: 18%¹ by 2020 MD: 9.5% in 2022 *DE: 20% by 2019 DC: 11% by 2022 *VA: 12% by 2022 HI: 20% by 2020 TX: 5,880 MW by 2015 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) State RPS State Goal Solar water heating eligible
12 DSIRE: Renewables Portfolio Standards, 1997 MN: 425 MW by 2002 ME: 30% by 2000 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: October 2007 WA: double credit for DG Solar/DG Provisions in RPS Policies (~6,000 MW solar capacity) NV: 1% solar by 2015; 2.4 to 2.45 multiplier for PV AZ: 4.5% DG by 2025 CO: 0.8% solar-electric by 2020 NM: 4% solar-electric by % DG by 2015 NH: 0.3% solar-electric by 2014 NY: % customer-sited by 2013 NJ: 2.12% solar-electric by 2021 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 NC: 0.2% solar by 2018 DG: Distributed Generation Solar thermal counts towards solar set-aside
15 DSIRE: October 2007 New RPS Policies & Goals (Since fall 2006) WA: 15% by 2020 double credit for DG OR: 25% by 2025 (lg. utilities) 5% - 10% by 2025 (sm. utilities) ND: 10% by 2015 IL: 25% by 2025 MO: 11% by 2020 NH: 23.8% in % solar electric by MW VA: 12% by 2022 NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) 0.2% solar by MW State RPS State Goal
16 DSIRE: October 2007 Increased/Expanded RPS Policies (Since fall 2006) MN: 25% by 2025 (Xcel: 30% by 2020) CO: 20% by 2020 (IOUs) 10% by 2020 (co-ops & large munis) 180 MW 0.8% solar electric AZ: 15% by % DG 1250 MW NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) 4% solar electric by 2020; 0.6% DG by MW CT: 23% by 2020 MD: 9.5% in % solar electric 1500 MW DE: 20% by % solar PV 175 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 October 2007 Net Metering VT: 15/ * 100 * 25/2, * 10/400 * 25/ * no limit 1, ,000 * * 2,000* * * 40 * * * * 20/100 * varies 80, /300 * * 50 * * 25/100 10/100 varies 100 ** * * NH: 100 MA: 60 RI: 1,000/1,650* CT: 2,000* PA: 50/3,000/5,000* NJ: 2,000* DE: 25/500/2,000 MD: 2,000 DC: 100 VA: 10/500* * 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 Net metering is available in 42 states + D.C. (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
26 Rusty Haynes
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 ( MW) PA (850 MW)
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