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Solar Power for a Stronger Wisconsin

Tyler Huebner RENEW Wisconsin “Solar Power Wisconsin” Event November 8, 2014

About RENEW Wisconsin

RENEW Wisconsin is a non-profit organization formed in 1991.

Main goals: advance clean renewable energy in Wisconsin: wind, solar, bioenergy, hydropower Supported by memberships from individuals and businesses, as well as foundations, events, and consulting

Today’s Talk

• Solar Power Today • Solar Power Tomorrow – Where it’s headed & where we need to take it

“I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait till oil and coal run out before we tackle that.”

--Thomas Edison

Wisconsin’s Electricity Mix (2012): Where we’re starting from today

WI Solar’s Current Contribution 0.02% Source: Public Service Commission, Strategic Energy Assessment for 2020, Page 14

Solar: where we can go

Solar’s Potential for US Electricity Production 14% by 2030 27% by 2050

WI Solar’s Current Contribution 0.02%

Wisconsin’s Solar Resource

Solar Power Applications

Residential Commercial Utility

Photos: John Ahles, Energize LLC, and Sun Edison

Benefits of Solar

• • The sun is

free

!

The sun isn’t going to run out (~5 billion years) • • • • • • • Lock in electricity prices for 25+ years Produce power where you need it Produce power when it’s valuable Flexible location and scalable Distributed – not centralized Local resources – not far-away Exercise your personal values • • 25 year warranties on solar panels 25 year warranties on inverter (equipment) • And now….

it makes economic sense

and organizations for many people, businesses,

Material Cost Decreases

Price of solar cells dropped 99 percent since 1977.

Source: Bloomberg New Energy Finance

Pricing Decreases

WI: 2013 residential system $4.63 / watt (source: Focus on Energy)

Residential Solar PV Economics

• Assume $3.50 per kW installed cost • Assume 5 kW solar PV system, creates about 6,000 kWh of electricity per year • • • • • System Price: $17,500 Focus on Energy Rebate: $2,400 Federal Tax Credit: $4,530 Net system price: “Simple payback”: $10,570 14.7 years* * 6000 kWh of electricity, assume 12 cents per kWh electric rate, $720 in energy production per year. Lower payback if you are on “Time of Use” rates with higher prices for peak times

Ownership & Financing Models

1. Own the system – Purchase outright – Get a Loan • • Qualify for state rebates Qualify for federal tax credit

Ownership & Financing Models

1. Own the system – Purchase outright – Get a Loan • • Qualify for state rebates Qualify for federal tax credit – – – – 1.

Lease the system / sign a “power purchase agreement” No up-front capital Lock in 20+ year power rates No hassle, performance guarantees But… it’s “gray area” of Wisconsin law!

“Third Party” financing models allow more people to participate in solar

Source: Solar Power to the People: The Rise of Rooftop Solar Among the Middle Class. Center for American Progress, October 2013

“Community Solar” models

About 3 in 4 utility customers DON’T have good access to solar (shading, roof condition, etc…)

Vernon Electric Coop (Westby)

1,001 panels | 305 kW (about 40 homes’ annual usage) | 120 owners $600 per panel | $35 savings per year | 5.8% return Photo: Vernon Electric Cooperative

“Community Solar” models Vernon Electric Coop (Westby)

1,001 panels | 305 kW (about 40 homes’ annual usage) | 120 owners $600 per panel | $35 savings per year | 5.8% return

St Croix Electric & Barron Electric as well

Photo: Vernon Electric Cooperative

Germany vs US installations

Where we need to go: Further Cost Reductions

Where we need to go: Further Cost Reductions

Lawrence Berkeley National Labs / DOE SunShot http://emp.lbl.gov/sites/all/files/german-us-pv-price ppt.pdf

Wisconsin vs US installations

Solar Installations - US vs. WI

160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 US Wisconsin 400 300 200 100 900 800 700 600 500 LBNL: Tracking the Sun VI

Wisconsin vs Minnesota Installations Today to 2020 Each Logo = 14 MW of solar (Annual usage of ~1750 homes)

National Security

Robin Eckstein

Iraq War Veteran, Appleton, WI

“If you’re not moving forward on renewable energy, then you’re not moving forward on national security.” Source: October 2, 2014 Talk

Department of Defense Renewable Energy

20% DoD energy from renewables by 2020 Navy: 50% by 2020 Army & Air Force: 25% by 2025 $7 billion request for proposals in 2012 http://www.eesi.org/files/dod_eere_factsheet _072711.pdf

Debbie Dooley – Georgia Tea Party

“I’m a right-wing radical grandmother, and I like green energy.” “If we have rooftop solar, we are less vulnerable to terrorist attack.”

Solar Creates Jobs

Solar Creates Jobs

The Subsidy Question

Source: DBL Investors, (Nancy Pfund and Ben Healey)

Looking to the Future of Wisconsin Solar

0.02%

“Let’s give solar a shot at being a walk-on to Wisconsin’s energy team.”

Mark Tauscher, former Green Bay Packer

Growing Solar in Wisconsin

1. Education & Motivation – thank you for coming today!

1. Make it easier for people to participate

a. Allow third-party ownership (nearly 70% nationally of installs use this) i.

“No-money-down” solar options ii.

Can the government or a utility control your decisions on your property?

iii. “Get out of the way” of private enterprise: $3.3 Billion in 2013 investment

b. Expand community solar programs c.

Cut red tape (permitting, interconnection) to save hassle, time, and money

2. Let’s set a goal

a. Minnesota – 1.5% of electricity by 2020 law, 10% by 2030 goal Photo: Heidi Speight, RENEW Wisconsin; Church solar in Hartland, WI

Valuing Solar’s Benefits

Clockwise: We Energies 2009 Study Mississippi 2014 Study Minnesota 2014 Study

Solar + Battery Storage

U.S. Electricity Industry Trade Group - 2013

Wisconsin’s Electric Sales 1990-2012

80 000 000 70 000 000 60 000 000 50 000 000 40 000 000 30 000 000 20 000 000 10 000 000 1990 1995 MWh Sales 2000 2005

US Energy Information Administration (EIA)

2010

U.S. Electricity Industry Trade Group - 2014

“The bottom line is that the electric utility industry needs the electrification of the transportation sector to remain viable and sustainable in the long term.”

Electric Vehicles – The Opportunity

Courtesy of Greentech Media, July 22, 2014

Electric Vehicles

Tesla Model S

2013 Motor Trend Car of the Year

“It drives like a sports car, eager and agile and instantly responsive. But it's also as smoothly effortless as a Rolls Royce, can carry almost as much stuff as a Chevy Equinox, and is more efficient than a Toyota Prius.”

Nissan Leaf

Electric Vehicles

Ford C-max Chevy Volt

Bringing It Together

• •

Solar is a tremendous opportunity:

For you – save money & live your values For Wisconsin – create local jobs and increase our energy security (local resources plus diversity of our portfolio) Policies changes would make it easier and cheaper

Utilities are getting involved to offer you options

Technologies are evolving: can solar, storage, and electric vehicles work together to give customers what they want while strengthening the entire system?

RENEW Wisconsin’s Annual Summit

Friday, January 9 th , 2015

Union South at the UW-Madison Campus 8am registration & networking

Thank You!

Solar Power for a Stronger Wisconsin Tyler Huebner

RENEW Wisconsin [email protected]

608-255-4044 ext 1