Introduction to Solar Policy Workshop Presented by the NY-Sun PV Trainers Network 1
NY-Sun Initiative • Significantly expand installed Statewide Goal of 3 GW solar capacity Stimulate the Market Place • Attract private investment $961 Million Total Budget • Enable sustainable development of a robust industry • Create well-paying skilled jobs Reduce Soft • Improve the reliability of the Costs electric grid • Reduce air pollution • Make solar available to all New Yorkers that want it 2
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
About the PV Trainers Network Lead Organizations Supporting Organizations 4
Program Covers Entire State SUNY Canton Erie Community College CUNY Ulster BOCES SUNY Delhi Pace University • Services available across NYS Bronx Community • Network partners across NYS College CUNY 5
PV Trainers Network Services Offered In-Depth Trainings Intro to Solar One-on-one Policy Assistance Resources 6
Agenda 1. Putting Solar Energy on the Local Policy Agenda 2. State of the NY Solar Market & Intro to Solar Soft Costs 3. Solar Policy and Incentives 4. Solar Project Economics and Financing 5. Making Your Community Solar Ready 6. Programs to Grow Your Solar Market 7. Next Steps 7
US Solar Costs $4.00 Solar Soft Costs $1.60 $3.50 $1.40 Other Paperwork $3.00 $1.20 Permitting & Inspection $2.50 $1.00 Column1 $ per Watt $ per Watt Non-Hardware Cost $0.80 Financing Costs $2.00 Hardware Cost $0.60 $1.50 Customer Acquisition $0.40 $1.00 Installation Labor $0.20 $0.50 $0.00 $- US Solar Cost German Solar Cost Source: NREL , LBNL 8
Not Enough Sun in NY? Source: National Renewable Energy Laboratory 9
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
Scale Residence Factory 5-10 kW 1 MW+ Office Utility 50 – 500 kW 2 MW+ 11
System Types Roof Ground Parking Mount Mount Canopy 12
Mitigate Energy Price Risk Average Retail Price of Electricity in New York 20 19 18 17 Cents per kWh 16 15 14 13 12 11 10 2001 2014 Source: US Energy Information Administration 13
NY State Solar Market Solar PV in New York State 600 500 400 MW-DC 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 *2015 Annual Installations Cummulative Total Cumulative Total * 2015 figures through November 30, 2015 14
NY State Solar Market Weighted Average Installed Cost NYS $10.00 $9.00 $8.00 $7.00 $6.00 $/Watt $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 * 2015 figures through Nov. 30, 2015 15
Solar Job Growth in the US 250,000 200,000 150,000 SEIA 100,000 Estimates The Solar Foundation 50,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • Source: SEIA Estimates (2006- 2009),The Solar Foundation’s National Solar Jobs Census 2010 (2010),The Solar Foundation’s National Solar Jobs Census 2013 (2011-2015). 16
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
Agenda 1. Putting Solar Energy on the Local Policy Agenda 2. State of the NY Solar Market & Intro to Solar Soft Costs 3. Solar Policy and Incentives 4. Solar Project Economics and Financing 5. Making Your Community Solar Ready 6. Programs to Grow Your Solar Market 7. Next Steps 18
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
Net Metering Exports to 1.0 Grid 0.9 Average Hourly kWh 0.8 0.7 0.6 0.5 0.4 Load Met 0.3 by Grid Load Met 0.2 by Solar 0.1 0.0 12 AM 4 AM 8 AM 12 PM 4 PM 8 PM Household Consumption Solar Generation 20
Example Net Metering Bill with Credit July Reading (Actual) 56351 June Reading (Actual) -56,451 Credit Total Usage KWh 32 Days -100 Net Metering Summary Prior Credit -50 Actual Metered Kwh -100 New Cumulative Credit -150 Billed KWH 0 Annual Reconciliation Month Anniversary Month April Delivery Charges Cannot be Basic Service Charge 17.00 offset with First 0 KWH @ 0.XXX 0 solar Energy Cost Adj 0 KWH @ 0.XXX 0 SBC/RPS Chg 0 KWH @ 0.XXX 0 Government surcharges 0.5 Total Delivery Charges 17.00 Amount Due Current Electric Charges 17.50 21
Remote Net Metering Allows eligible non-residential customers to apply their net metering credits to offset the Landfill Solar Project electricity usage of other properties they own or lease thereby reducing electricity costs Town Eligible properties must be: Library Hall ‒ Under the same customer account holder ‒ Farms and non-residential ‒ Within the same utility ‒ Within the same NYISO zone 22
Community Distributed Generation (Shared Solar) What is Shared Solar? Enables multiple customers to receive net metering credits from a single clean energy project Community DG expands Allows transferring of excess net metering credits to another customer access to solar (and Intended to allow residents and other clean energy) businesses to buy shares in larger community solar projects generation to utility Phase I: October 2015 – April 2016 customers who cannot Open only to projects with strategic grid site generation directly locations or low-income participants Phase 2: Starting May 2016 Open to all projects 23
How Does Shared Solar Work? e - Electric Output Construct, Own and/or Operate Sponsor Membership Utility Information Membership Bill Payment for Solar $ Credits Shares C Subscriber/ Utility Customer 24 24
Interconnection in New York Technologies Utilities All DG renewables Investor Owned Utilities System Capacity Limit 25 kW simplified app. 2 MW limit 25
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
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
Agenda 1. Putting Solar Energy on the Local Policy Agenda 2. State of the NY Solar Market & Intro to Solar Soft Costs 3. Solar Policy and Incentives 4. Solar Project Economics and Financing 5. Making Your Community Solar Ready 6. Programs to Grow Your Solar Market 7. Next Steps 28
Ownership Options for Solar Direct Third-Party Ownership Ownership 29
Direct Ownership $ $ Customer 30
Third Party Ownership Power Purchase Incentives Agreement or Lease Agreement $ Customer Developer 31
Third Party Ownership NY Residential Solar Installations by Ownership Type 12,000 14% PPA 10,000 8,000 51% Lease 6,000 Installs 4,000 35% Direct Own 2,000 0 2009 2010 2011 2012 2013 2014 2015 Direct Own Lease PPA Source: NYSERDA MW Block Incentive Database 32
Agenda 1. Putting Solar Energy on the Local Policy Agenda 2. State of the NY Solar Market & Intro to Solar Soft Costs 3. Federal, State, and Utility Policy Drivers 4. Making your Community Solar Ready 5. Programs to Grow Your Solar Market 6. Next Steps 33
Municipal Solar Projects Municipalities often prefer third-party ownership: Main Benefit: Direct Ownership Low municipal interest rate Main Benefit: Third-Party Ownership Municipalities can claim the tax credit 34
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
Processes of Concern Process Municipal Action Engage with community Stakeholder members & local government Engagement officials early on Engage utility early in Interconnection development process Review zoning code for solar- related concerns Zoning (primary/accessory use, impermeable surface, setbacks, etc.) Environmental Review Engage local SEQRA authority 36
Potential Project Timeline Step Days From RFP Issuance Stakeholder Discussions and Pre-RFP Data Collection Release RFP 0 RFP Submission Deadline 1-2 months after release Announcement of Selected 1-2 weeks after deadline Bidder Contractual Documents Signed 1-6 months after announcement System Design Completed & 2-6 months after contract NYSERDA Application Submitted Project Construction Completed 6-18 months after application 37
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