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Current Trends and Challenges in Analyzing Renewable-Energy Policy

Current Trends and Challenges in Analyzing Renewable-Energy Policy. A Report from DSIRE. Rusty Haynes & Sue Gouchoe N.C. Solar Center N.C. State University NREL Strategic Energy Analysis Seminar December 11, 2008. The DSIRE Project. www.dsireusa.org.

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Current Trends and Challenges in Analyzing Renewable-Energy Policy

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  1. Current Trends and Challenges in Analyzing Renewable-Energy Policy A Report from DSIRE Rusty Haynes & Sue Gouchoe N.C. Solar Center N.C. State University NREL Strategic Energy Analysis Seminar December 11, 2008

  2. The DSIRE Project www.dsireusa.org Database of State Incentives for Renewables & Efficiency • Established in 1995 • Funded by U.S. DOE • Managed by NCSU; partners with IREC • Project Scope: policies & programs that promote RE/EE • Breakdown of data: ~1,900 total records~1,060 RE records

  3. DSIRE Unique Visitors (Monthly, 2005-08) 2005 2006 2007 2008

  4. www.dsireusa.org December 2008 State Financial Incentives for Renewables # of states # of incentives

  5. State Rebates for Renewables* www.dsireusa.org December 2008 ME: PV: $2,000 SWH: ≤35% Wind: TBD VT: PV: ≤$3.50/W SWH: per BTU Wind: ≤$4.50/W MN: PV: ≤$2.25/W SWH: $30/sq. ft. OR: PV: ≤$2.25/W SWH: ≤ 35% Wind: ≤ $4.50/W MA: PV: ≤ $5.50/W Wind: ≤$4.75/W Hydro: ≤$6.50/W WI: PV, SWH: ≤30% Wind, Bio: ≤25% WY: PV: $3k CT: PV: ≤$6/W NV: PV: ≤$4.60/W Wind: ≤$3/W Hydro: $2.50/W NY: PV: ≤$5/W Wind: ≤$150k IL: PV, SWH: 30% NJ: PV: ≤$4.10/W &/or SRECs Wind: varies Bio: ≤ $3/W CA: PV: ≤$3.25/W or 50¢/kWh SWH: $20/sq. ft. Wind: $2.50/W CO: PV: ≤$4.50/W DE: PV, SWH, Wind: ≤ 50% AZ: ≤$3/W (RE) MD: PV: $2.50/W SWH: 30% Wind: $2.50/W FL: PV: $4/W SWH: ≤$500 * Includes RPS-inspired utility rebate programs in AZ, CO & NV

  6. Financial Incentives: Best Practices • Strong, multi-year incentive, declining over time • Stable funding source • Easy application process • Cost-effective quality-assurance mechanism • Qualified installers • Partnerships with banks, installers, NGOs • Utility cooperation (esp. interconnection) • Public & non-profit sector eligibility • Program flexibility • Track program usage details & share data • Education & outreach component

  7. www.dsireusa.org December 2008 State Regulatory Policies

  8. Public Benefit Funds for Renewables www.dsireusa.org March 2008 MT: $750,000 in 2008 $8.3M from 1999-2009 ME: voluntary contributions $411,000 from 2002-2008 VT: $6.6M in 2008 $34M from 2004-2011 MN: $16M in 2008 $264M from 1999-2017* MA: $25M in 2008 $525M from 1998-2017* MI: $1.7M in 2008 $25M from 2001-2017* OR: $12M in 2008 $182M from 2001-2017** RI: $2.2M in 2008 $38M from 1997-2017* WI: $5.5M in 2008 $97M from 2001-2017* CT: $24M in 2008 $435M from 2000-2017* IL: $5.5M in 2008 $99M from 1998-2015 OH: $3.2M in 2008 $63M from 2001-2010 NY: $9.5M in 2008 $114M from 1999-2011 CA: $331M in 2008 $4,149M from 1998-2016 NJ: $102M in 2008 $637M from 2001-2012 PA: $950,000 in 2008 $63M from 1999-2010 DE: $3.5M in 2008 $49M from 1999-2017* D.C.: $400,000 in 2008 $5.1M from 2004-2017* * Denotes funds that do not have defined expiration dates and do not require future reauthorization or budgetary approval in order to continue operations. (These funds are not scheduled to expire in 2017.) 16 state funds + DC $6.8B by 2017 (est.) ** The Oregon Energy Trust is scheduled to expire in 2025.

  9. DSIRE: www.dsireusa.org December 2008 Renewables PortfolioStandards ME: 30% by 2000 10% by 2017 - new RE MN: 25% by 2025 (Xcel: 30% by 2020) VT: (1) RE meets any increase in retail sales by 2012; (2) 20% by 2017 *WA: 15% by 2020 • NH: 23.8% in 2025 ND: 10% by 2015 WI: requirement varies by utility; 10% by 2015 goal • MA: 15% by 2020 +1% annual increase(Class I Renewables) MT: 15% by 2015 OR: 25% by 2025(large utilities) 5% - 10% by 2025 (smaller utilities) *MI: 10% + 1,100 MW by 2015 RI: 16% by 2020 SD: 10% by 2015 CT: 23% by 2020 • *NV: 20% by 2015 *UT: 20% by 2025 IA: 105 MW • NY: 24% by 2013 • OH: 25%** by 2025 • NJ: 22.5% by 2021 IL: 25% by 2025 • CO: 20% by 2020(IOUs) *10% by 2020 (co-ops & large munis) CA: 20% by 2010 • PA: 18%** by 2020 • MO: 15% by 2021 • MD: 20% by 2022 • NC: 12.5% by 2021(IOUs) 10% by 2018 (co-ops & munis) • AZ: 15% by 2025 • *DE: 20% by 2019 • DC: 20% by 2020 • NM: 20% by 2020(IOUs) • 10% by 2020 (co-ops) *VA: 12% by 2022 TX: 5,880 MW by 2015 HI: 20% by 2020 State RPS State Goal • Minimum solar or customer-sited RE requirement * Increased credit for solar or customer-sited RE • **Includes separate tier of non-renewable “alternative” energy resources Solar water heating eligible

  10. Renewables PortfolioStandards, 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

  11. DSIRE: www.dsireusa.org December 2008 Solar/DG Provisions in RPS Policies ~7,550 MW by 2025 (LBNL est.), excluding MA & MO WA: double credit for DG NH: 0.3% solar electric by 2014 MI: triple credit for solar MA: TBD by MA DOER NV: 1% solar by 2015; 2.4 to 2.45 multiplier for PV NY: 0.1542% customer-sited by 2013 CO: 0.8% solar electric by 2020 NJ: 2.12% solar electric by 2021 OH*: 0.5% solarby 2025 PA: 0.5% solar PV by 2020 UT: 2.4 multiplier for solar DE: 2.005% solar PV by 2019; triple credit for PV MO: 0.3% solar electric by 2021 MD: 2% solar electric in 2022 NC: 0.2% solarby 2018 DC: 0.4% solar by 2020; 1.1 multiplier for solar AZ: 4.5% DG by 2025 NM: 4% solar electric by 2020 0.6% DG by 2015 TX: double credit for non-wind(non-wind goal: 500 MW) State RPS with solar/DG provision State renewables goal with solar/DG provision * It is unclear if solar water heating is eligible for OH’s solar carve-out. Solar water heating counts towards solar set-aside DG: Distributed Generation

  12. Interconnection Standards • Technical issues include safety, power • quality, system impacts. Technical • issues largely resolved. • Policy issues include legal and • procedural considerations. State • approaches vary widely. • Best policies adopted by IL, NJ, NM, MD, MA, OR, PA, CA.* * Freeing the Grid 2008: www.newenergychoices.org

  13. Net Metering • Allows customers to store any excess electricity generated, in the form of a kWh credit, on the grid for later use. • Available “statewide” in 41 states. State policies vary widely. • Best policies adopted by CO, MD, FL, NJ, OR, PA, CA, CT.* * Freeing the Grid 2008: www.newenergychoices.org

  14. Net Metering DSIRE: www.dsireusa.org December 2008 100 VT: 250 NH: 100 MA: 60/1,000/2,000* RI: 1,650/2,250/3,500* CT: 2,000* 100 * * 50 100 * 25/2,000 40 * 20 * 25/100 * 20 * NY: 25/500/2,000* PA: 50/3,000/5,000* NJ: 2,000* DE: 25/500/2,000* MD: 2,000 DC: 1,000 VA: 10/500*NC: 20/100* 25 * OH: no limit 500 25 * 1,000 * * 2,000 40 25 10 * * 25/2,000 1,000 co-ops, munis: 10/25 100 30 * * * 80,000 100 25/300 20/100 AZ: no limit * 10/100 * 50 25/300 FL: 2,000* 100 (KIUC: 50) Net metering is available in 44 states + D.C. State-wide net metering for all utility types * State-wide net metering for certain utility types only (e.g., investor-owned utilities) Net metering offered voluntarily by one or more individual utilities Note: Numbers indicate individual system size limit in kilowatts (kW). Some states’ limits vary by customer type, technology and/or system application; this is the case when multiple numbers appear for one state. Other limits may also apply. For complete details, see www.dsireusa.org.

  15. The Solar Alliance:www.solar-alliance.org/model_policies

  16. Average Residential Retail Rates, 2007

  17. In Conclusion… State Policy Trends: • Dominance of RPS • Super-sized net metering • Regional markets • Rebates programs in flux • Next-generation RE funds • PPA model (solar) • Room for Improvement: • Incentives for non-taxpayers • Utility rate structures • REC-selling opportunities • Market coordination • Federal policy • Clarify 3rd-party sales Wild cards: New federal policies? Credit markets? State budgets? Electricity rates? Technology breakthroughs?

  18. (intermission)

  19. DSIRE: New Policy Projects • “DSIRE SOLAR” • A portal on the DSIRE site for solar-specific policy information • Quantitative Policy Databases for NREL Analysis Projects • Financial incentives for solar and wind • State RPS policies

  20. DSIRE SOLAR Features: Clickable U.S. Map for Quick Access to Solar Incentives Solar Policy Guide Detailed explanation of the solar policies covered by DSIRE Solar Policy Summary Maps Financial Incentives, Net Metering, Solar in RPS Policies Solar Policy Comparison Tables Tax Credits, Rebates, Solar Portfolio Standards, Net Metering Solar Portal

  21. DRAFT of new DSIRE Web Design

  22. Provides a description and context for the 20+ policy options in DSIRE. Distills and documents solar policy status and trends Supplemented by policy summary maps and tables Links to specific programs on DSIRE for examples, legislation, contacts. Organized by policy topic (tax credits, rebates, net metering, solar access, etc.) For each policy: Description, Status & Trends, Examples, Resources Updated periodically to reflect new policies, trends, examples, and resources. DSIRE Solar Policy Guide

  23. State Tax Credits & Deductions for Renewables D.C. Puerto Rico State offers only Personal Tax Incentives State offers only Corporate Tax Incentives State offers Personal & Corporate Tax Incentives

  24. Solar Water Heating Incentives January 2007 ME: 25% VT: $1.75-$3.50 per 100 Btu/day U $0.60/kWh 1st-yr. savings (R) $500 (R) 15% U U 35% (C) WI: ~25% U MA: 15% 25% (R) 100% Deduction (R) OR: ~$1,000 (Res.) ~ 35% (Com.) U RI: 25% (R) U DE: 50% U IL: 30% U OH: $3 per 100 Btu/day MD: 20% U San Diego CSI Pilot Rebate TN: 40% 35% 25% (R) 30% (R) 10% (C) 25% U FL: $500 (Res.) $5,000 (Com.) U U 35% U Tax Credit: (R) residential, (C) commercial X% $ amt. or % U State Rebate Utility/Regional Incentives Sales Tax Exemption

  25. DSIRE: www.dsireusa.org December 2008 Solar/DG Provisions in RPS Policies WA: double credit for DG NH: 0.3% solar electric by 2014 MA: TBD by MA DOER MI: triple credit for solar 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 by 2020 OH*: 0.5% solar by 2025 UT: 2.4 multiplier for solar DE: 2.005% solar PV by 2019; triple credit for PV MO: 0.3% solar electric by 2021 MD: 2% solar electric in 2022 DC: 0.4% solar by 2020; 1.1 multiplier for solar AZ: 4.5% DG by 2025 NC: 0.2% solar by 2018 NM: 4% solar electric by 2020 0.6% DG by 2015 TX: double credit for non-wind(non-wind goal: 500 MW) State RPS with solar/DG provision State goal with solar/DG provision Solar water heating counts towards solar set-aside DG: Distributed Generation

  26. State Rebate Comparison Tables: Policy Elements Incentive Overview Mechanisms to Ensure System Performance Expenditure and Installation Data

  27. State PV Rebate Comparison Table - Excerpt

  28. Quantitative Financial Incentive Database • Detailed technology- and sector-specific quantitative data associated with government, utility, and private financial incentive programs for: • PV • Solar Water Heating • Solar Space Heating • CSP • Wind • Incentive Types Covered • Rebates & Grants • PBIs & FITs • Tax Credits & Deductions • ~220 data fields; >200 incentive programs

  29. Quantitative Incentive Database - Excerpt

  30. Quantitative RPS Database • Detailed renewable energy generation requirements by resource class and by supplier category • Start year, overall RE required in start year (%, MW, MWh) • Target year, overall RE required in target year (%, MW, MWh) • % state load covered by RPS policy • % required for each resource tier, set-asides • “New” renewables date • % renewables that may be derived from existing renewables • Multipliers for favored resources/technologies • Annual ramp rate • Monetary penalties for each resource tier • ~85 data fields; 29 state RPS mandates

  31. Quantitative RPS Database - Excerpt

  32. Quantitative Data Challenges • Incentives • Rapidly changing incentive programs • Many different, increasingly complex types of incentive structures • Variations and bonus incentives for different applications • Multiple options for taking a given incentive – rebate vs. PBI • State incentives available only to customers of certain utilities • RPS • % load covered by RPS policy: exemptions, obligated entities • Different “New” date for different resources • Combinations of %, MW, and MWh standards • Multiple multipliers

  33. Contact: Rusty Haynes N.C. Solar Center N.C. State University rusty_haynes@ncsu.edu 919.513.0445 Sue Gouchoe N.C. Solar Center N.C. State University susan_gouchoe@ncsu.edu 919.513.3078

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