Massachusetts PV and SHW Program Update Elizabeth Kennedy Program Director Massachusetts Clean Energy Center
MassCEC Statutory Mandate Advance Clean Energy Technology Create Jobs Develop a Trained Workforce Accelerate Deployment of Clean Energy 2
MassCEC Eligible Customers Source of funding is a Systems Benefits Change on ratepayers electric bill Available for customers of IOUs and MLPs that opt-in 3
Agenda Solar PV Basics Solar PV Incentives Solarize Massachusetts Solar Hot Water Basics and Incentives 4
$18B Energy Dollars Flow Out of MA Annually Oil & Natural Gas - Canada MA Energy Imports $B 2008 Fuel Oil (heating, diesel) $5.0 Gasoline $9.2 Jet Fuel $1.4 Other Petroleum $0.9 Natural Gas $5.2 Coal $0.3 Total $22 B Per Household Average ~ $4,600 Natural Gas - U.S. Gulf Coast Oil & Natural Gas - Middle East Natural Gas - Caribbean Coal Colombia Oil - Venezuela 5
HI CT NY AK NH NJ MA RI CA DC VT ME MD DE FL PA MI US NV WI AZ TX CO OH IL AL GA VA NC TN MS SC NM MN KS MO MT LA SD IN IA OR OK NE WV AR ND UT KY WA ID WY $/kwh Massachusetts Retail Electricity Prices 26 2010 Average Retail Electricity Price c/kwh 24 22 20 18 Mass. is 7 th Highest 16 14 12 10 8 6 4 2 Source: EIA Form 826 U.S. $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $- Residential Electricity Rates 6 6
Average Cost ($/Watt) Residential Project Trends 14 12 10 2000 1800 1600 1400 8 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 # Projects Average Project Cost 1200 1000 800 600 400 200 0 7
Is There Enough Sun In MA? 8
How do solar PV panels work? NEED DIRECT SUNLIGHT! Sunlight dislodges electrons in a layer of silicon Electrons flow to layer that needs electrons Metal contacts direct electricity from panel to wires 9
Courtesy of NREL How Does Solar PV work on my house? Grid-connected projects can apply for Net Metering (utility meter spins backwards) Power outage: Inverter shuts down, unless a battery-back up system is installed 10
What is Net Metering? Credits generated when system is producing more than is being used Meter runs backwards Excess credits are carried over monthto-month indefinitely Receive credits at almost full retail rate 11 11
How big a system do I need? Electricity bill shows summary of prior year s consumption Incentives are designed for systems sized load Efficiency or lower energy use allows for a smaller system! Back of the Envelope Calculation: 1 kw PV = approximately 1,200 kwh/year 12
What makes a good site? Southern exposure PV panels angled 30 45 At least 4-6 hours of direct sunlight Open roof area of ~100 sq ft per 1 kw Open space for a ground or pole mounted system http://energy.ltgovernors.com/solar-energy-pv-systems-self-generation-make-your-own-power.html 13
Shading of Solar PV Systems Initial site feasibility can be determined online through aerial images Shading can significantly reduce the output of a system, changing the financials of a project Installer is the expert in determining feasibility 14
What to do with a Non-Feasible Site Consider energy efficiency www.masssave.com Other renewable energy technologies Solar Hot Water (www.masscec.com/solarhotwater) Community Solar Projects 15
Agenda Solar PV Basics Solar PV Incentives Solarize Massachusetts Solar Hot Water Basics and Incentives 16
Solar Incentives in Massachusetts Incentives Tax Incentives: Federal (30%) State (15% up to $1,000) Accelerated Depreciation Rebates from MassCEC Net Metering SREC Sales Low/No money down options www.house-power.com/blog/wp-content/uploads/2009/12/istock_000009001180xsmall.jpg 17
MassCEC Rebates Any eligible PV system 15 kw, rebate paid on first 5 kw Rebate ranges from $2,000 to $4,250 for 5kW system Average rebate covers ~7% of installed cost Block 11 Rebate Levels ($ per watt (DC @ STC)) Base Incentive $0.40 PLUS: Massachusetts Company Component Adder $0.05 Moderate Home Value Adder OR Moderate Income Adder 120% of MA median income (only residential projects eligible) $0.40 Natural Disaster Relief Adder $1.00 Go to www.masscec.com/solar to learn more. 18
MassCEC Rebates (cont.) Moderate Home Value Adder Criteria County Property Value Berkshire, Franklin, Hampden, and Hampshire $300,000 Bristol, Suffolk, Worcester $350,000 Barnstable, Duke, Essex, Middlesex, Nantucket, Norfolk, and Plymouth $400,000 Moderate Income Adder Criteria Income Category Income Levels Individual Income $75,810* Domestic Unit Income $95,420* * 120% of median household income as determined by the US Census Bureau 19
Solar Renewable Energy Certificates (SRECs) Electricity Pathway Electrons from all generation sources are physically the same Cannot be tracked independently on the grid Electricity and SRECs can be, and often are, sold separately SRECs Pathway SRECs represent the green attributes of the renewable generation source Utilities are required to purchase SRECs every year 1 SREC = 1,000 kwh Verified SRECs ensure that only one buyer can claim each SREC 20
SRECs (cont) Small-scale project owners will work with SREC aggregators or brokers to sell SRECs to utilities Projects installed in 2012 will be eligible to sell SRECs for 10 years SRECs generally sell between $285 - $550/SREC Monthly production reported to MassCEC s Production Tracking System (PTS) 21
Cost of Electricity ($/kwh) Levelized Cost of Solar PV (w/o Financing) $0.30 PV before Incentives $0.25 $0.20 Electricity Prices $0.15 $0.10 3 rd Party Ownership $0.05 $- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years PV after Incentives 22
Agenda Solar PV Basics Solar PV Incentives Solarize Massachusetts Solar Hot Water Basics and Incentives 23
Goals of Solarize Mass Increase education through community outreach Introduce model to simplify process Reduce installation costs Reduce time to contract Drive down the cost stack Installation Sales Soft Costs Equipment Costs Average Installation Soft Costs Equipment Costs Solarize Mass 24
2012 Solarize Massachusetts Basics 17 Green Communities Competitive Installer selection Tier Pricing (based on contracted capacity) Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 1 kw-25 kw >25 kw-50 kw >50 kw-150 kw >150 kw-250 kw 250 kw+ Limited time offer Sign Ups through Sept 30, 2012 25
$/Watt Cost Solarize Mass 2012 Pricing Tiered Pricing vs. Avg Price of PV $6.00 $5.50 Avg. State Cost @ Beginning $5.00 $4.50 $4.00 $3.50 $3.00 Avg. 2012 Tier 5 Solarize Cost 26
Number of Projects Solarize 2012 Projects (thru 8/31/12) 160 140 120 100 80 60 During Solarize Pre-Solarize 40 20 0 27
Agenda Solar PV Basics Solar PV Incentives Solarize Massachusetts Solar Hot Water Basics and Incentives 28
Solar Thermal Applications What can a SHW system be used for? Domestic Hot Water Pool Heating Process Hot Water Space Heating Solar Assisted Cooling Urban Edge, Jamaica Plain What makes a good SHW application? High hot water load Minimal shading Structure capable of supporting collectors Space available for storage tank
How does solar thermal work?
Commonwealth Solar Hot Water Program For any residential, multi-family or commercial building Displace ANY fuel type Two types of incentives offered: Feasibility Study Grants (Commercial Projects Only) Help building owners assess the potential benefits of installing a solar thermal system Construction Rebates Help system owners with the upfront capital costs of installing the solar thermal system www.masscec.com/solarhotwater 31
Thank you! Elizabeth Kennedy Program Director, Solar Programs MassCEC 55 Summer St., 9 th Floor Boston, MA 02110 EKennedy@MassCEC.com 32