State Community Solar Policy Trends National Conference of State Legislatures Webinar June 7, 2018

1. State Community Solar Policy TrendsNational Conference of State Legislatures WebinarJune 7, 2018 DC Autumn Proudlove Senior Manager of Policy Research NC Clean Energy Technology Center afproudl@ncsu.edu

2. About the NC Clean Energy Technology Center • Public Service Center administered by the College of Engineering at North Carolina State University • Mission is to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies practices, and policies.  • Objective research, analysis, & technical assistance – no advocacy • Manage the Database of State Incentives for Renewables and Efficiency (DSIRE – www.dsireusa.org)

3. About the 50 States of Solar • Quarterly publication detailing state and utility distributed solar policy & rate design changes • Includes changes to state community solar policies • Regulatory actions, bills passing at least one chamber • States, IOUs, public power utilities with >100,000 customers • Provide complimentary copies to state legislators and regulators https://nccleantech.ncsu.edu/the-50-states-reports/

4. Community Solar Policies and Programs DC Enacted Community Solar Policy Active Utility-Involved Program 19 States + DC have a statewide community solar policy No Policy Information from the NC Clean Energy Technology Center and the Smart Electric Power Alliance (2017 Solar Market Snapshot)

5. Q1 2018 Action on Community Solar Policy Q1 2018 action No recent action 15 States took action on community solar policy during Q1 2018

6. Community Solar Policies New states are slowly adopting statewide community solar enabling policies • Maryland (May 2015) • Oregon (March 2016) • Rhode Island (July 2016) • Illinois (December 2016) • Virginia (March 2017) • North Carolina (July 2017) • New Jersey (May 2018)

7. Community Solar Policies • Examples of new policies under consideration in 2018: • Louisiana – PSC Staff’s proposed revised net metering rules would allow community net metering • Connecticut – S.B. 336 creates a statewide 300 MW community solar program (passed Senate, but session has adjourned) • Virginia – S.B. 313 – creates a new program allowing third parties to own & operate projects – carried over to 2019 • Maryland – H.B. 878 would have made the pilot program permanent (legislation did not advance) • Washington – H.B. 2280 would have created a community solar gardens program

8. Community Solar Policy Trends Each state’s policy looks very different – virtual net metering, community solar gardens, utility-led community solar • Virtual or Group Net Metering • Ex. Massachusetts, New Hampshire, Vermont • “Community Solar Gardens”, “Shared Renewables”, etc. • Ex. Colorado, Minnesota • Utility-Led Community Solar • Ex. North Carolina, Virginia

9. Community Solar Policy Trends State programs have different system size limits, program caps, and other requirements.

10. Community Solar Policy Trends States are considering new approaches to credit rates for community solar participants • Retail rate credit • Avoided cost rate credit • Value of solar credit • Time-varying credit • Location-based credit Follows ongoing discussion of net metering credit rates across the country – net metering credit changes typically apply to virtual net-metered systems as well • Ex. Maine, Vermont

12. Community Solar Policy Trends States are working to increase opportunities for low-income customers to participate in community solar programs • Establishing carve-outs within community solar programs for low-income participants • Maryland – 60 MW set aside for projects focused on LMI customers • Connecticut S.B. 336 – 10% carve-out for low-income customers • Providing incentives for low-income community solar projects or locating projects in designated “environmental justice areas” • Illinois Solar for All program • Massachusetts SMART program • New York PSC Staff proposal

13. Community Solar Policy Trends • Developing community solar programs as part of other low-income energy programs • California – pilot project proposed as part of effort to develop alternative energy options for disadvantaged communities in the San Joaquin Valley • New Hampshire – June 2017 net metering decision called for LMI pilot projects • Ensuring low-income housing providers can participate • Providing financing options for low-income participants • Developing outreach and education plans

14. Community Solar Policy Takeaways • Very likely to continue seeing states adopt new community solar policies, primarily through legislative action • Legislative language is important – program details are often worked out in a regulatory proceeding, but legislative framework impacts program success • Will continue seeing a focus on credit rates, especially movement toward value-based credit rates • Will continue seeing efforts to increase low-income participation

15. Thank you! Autumn Proudlove Senior Manager of Policy Research NC Clean Energy Technology Center afproudl@ncsu.edu