Transcript State Solar Policy: 2007-2008 Developments & Current Trends

State Solar Policy:
2007-08 Developments & Current Trends
Rusty Haynes
N.C. Solar Center
N.C. State University
IREC Annual Meeting
October 13, 2008
The DSIRE Project
Database of State Incentives for Renewables & Efficiency
• Created in 1995
• Funded by U.S. DOE
• Managed by NCSU;
affiliated with IREC
• Project Scope: policies/programs
that promote RE/EE
• Breakdown of Data:
~1,850 total records
~790 solar records
~715 PV records
www.dsireusa.org
Federal Update
Solar ITC
• Extended to 12/31/2016
• May be used to offset AMT
• Extended to utilities
Residential Solar Credit
• Extended to 12/31/2016
• $2,000 cap removed for PV (1/1/2009)
• May be used to offset AMT
State Highlights, 2007-08
Maryland
•
•
•
•
•
•
•
•
•
•
RPS raised from 9.5% to 20% x 2022 (Tier I)
Solar access law strengthened
PV property tax exemption extended to non-rez PV
S&U tax exemption for solar
New IC standards
Massachusetts
Commonwealth Solar ($68M / 27 MW)
Three separate energy standards (Class I: 4% x 2009 + 1%/year)
New grants and loan programs (TBD)
Net metering raised to 1 MW / 2 MW
Long-term utility solar purchases
State Highlights, 2007-08
Ohio
• RPS: 12.5% RE, 12.5% “advanced” energy x 2024
• Solar carve-out: 0.5%
Pennsylvania
•
•
•
•
•
•
$650M fund for RE/EE
$100M in incentives for homes & small biz
$80M in incentives for solar economic dev
$165M in incentives for non-solar RE & AE (biz, local gvt)
$50M in tax credits for RE/EE/AE projects
Stronger net metering (NEG)
Other State Developments, 2007-08
• Rebates (new): CO (local), CT (PV), MA (PV), MN (SWH)
• Rebates (revised): several states adjusted amounts and/or
added small wind
• Tax credits (new/improved): GA (35%), KY (small), OR
(limit doubled), PA (15%), VT (30%)
• Property tax incentives: AZ, FL, MD, NC, NY
• RPS/RPG: MA, MD, OH, / GU, SD, UT
• Net Metering (improved): CO, DC, FL, HI, IL, KY, LA,
MA, NY, OH, PA, RI, UT, VT
• Interconnection Standards (new/improved): CT, FL, IL,
MD, MI, NC, NM
• Solar access (improved): CA, CO, FL, MD, VA
www.dsireusa.org
September 2008
State Financial Incentives for Solar
Rebate Programs
PV: 18/20
SHW: 11
Grant Programs
PV: 17/24
SHW: 13/15
Production Incentives
PV: 3
SHW: 0
Personal Tax Incentives
PV: 18/25
SHW: 16/20
Corporate Tax Incentives
PV: 22/25
SHW: 17/19
Loan Programs
PV: 27/30
SHW: 24/28
Sales Tax Incentives
PV: 19
SHW: 14
Property Tax Incentives
PV: 27
SHW: 25
Industry Recruitment
PV: 14
SHW: 8
www.dsireusa.org
September 2008
State Rebates & PBIs for PV
ME: $2K max
15 - 54¢/kWh
VT: $1.75-3.50/W
$2-2.25/W
NY: $3-5/W
$1-2.25/W
$3k max
$2.30-4.60/W
≤35%
CT: $4.30-5/W
NJ: SRECs
30%
DE: 50%
≤$4.50/W
≤$3.25/W
≤50¢/kWh, 5 yrs.
MA: $2-5.50/W
MD: $2.50/W
40%
• 20 state rebate programs
& PBIs*
• 25 state grant programs
(not shown on map)
• 21 non-state PBIs
(not shown on map)
• 64 utility rebate programs
(not shown on map)
$2-3/W
$4/W
* Includes RPS-inspired utility rebate programs in AZ, CO & NV
www.dsireusa.org
Direct Incentives for PV, 1997
10-20% up to $75K
Varies by project
$2K - $10K
$10K - $50K
$60K - $1M
50% up to $10K
www.dsireusa.org
September 2008
State Tax Credits for PV
35%
$3/W (R)
50% (C)
VT: 30% (C)
15%
25% (R)
100%
Deduct. (R)
25% (R)
10% (C)
25% (R)
10% (NR)
RI: 25%
$500 (R)
$1K (C)
35%
30% (Non-Corp.)
~2.7¢/kWh 10 yrs. (C)
35%
MA: 15% (R)
35%
50%
25%
• Credits in 17 states
• Range: 10% - 50%
• FL, IA, MD, NE, OK
have small PTCs
(not shown on map)
(R) Residential; (C) Commercial; (NR) Non-Residential
State Regulatory Policies
•
•
•
•
•
•
Public Benefits Funds (16+DC & ME)
Renewables Standards/Goals (26+DC & 6 goals)
Net Metering (39)
Solar Access Laws (35)
Green Power Purchasing Policies (10)
Contractor Licensing (9)
www.dsireusa.org
March 2008
Public Benefit Funds for Renewables
MT: $750,000 in 2008
$8.3M from 1999-2009
ME: voluntary contributions
$411,000 from 2002-2008
MN: $16M in 2008
$264M from 1999-2017*
OR: $12M in 2008
$182M from 2001-2017**
MI: $1.7M in 2008
$25M from 2001-2017*
WI: $5.5M in 2008
$97M from 2001-2017*
IL: $5.5M in 2008
$99M from 1998-2015
VT: $6.6M in 2008
$34M from 2004-2011
MA: $25M in 2008
$525M from 1998-2017*
RI: $2.2M in 2008
$38M from 1997-2017*
CT: $24M in 2008
$435M from 2000-2017*
OH: $3.2M in 2008
$63M from 2001-2010
CA: $331M in 2008
$4,149M from 1998-2016
NY: $9.5M in 2008
$114M from 1999-2011
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.)
** The Oregon Energy Trust is scheduled to expire in 2025.
16 state funds + DC
$6.8B by 2017 (est.)
DSIRE: www.dsireusa.org
September 2008
Renewables Portfolio Standards
ME: 30% by 2000
MN: 25% by 2025
(Xcel: 30% by 2020)
*WA: 15% by 2020
ND: 10% by 2015
WI: requirement varies by
utility; 10% by 2015 goal
MT: 15% by 2015
OR: 25% by 2025 (large utilities)
5% - 10% by 2025 (smaller utilities)
SD: 10% by 2015
☼ OH: 25%** by 2025
*UT: 20% by 2025
IA: 105 MW
IL: 25% by 2025
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
10% by 2017 - new RE
☼ NH: 23.8% in 2025
MA: 15% by 2020 +
1% annual increase
(Class I Renewables)
RI: 16% by 2020
☼ *NV: 20% by 2015
CA: 20% by 2010
VT: (1) RE meets any
increase in retail sales by
2012; (2) 20% by 2017
MO: 11% by 2020
☼ NC: 12.5% by 2021 (IOUs)
☼ AZ: 15% by 2025
10% by 2018 (co-ops & munis)
CT: 23% by 2020
☼ NY: 24% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18%** by 2020
☼ MD: 20% by 2022
☼ *DE: 20% by 2019
☼ DC: 11% by 2022
☼ NM: 20% by 2020 (IOUs)
*VA: 12% by 2022
10% by 2020 (co-ops)
TX: 5,880 MW by 2015
State RPS
HI: 20% by 2020
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
www.dsireusa.org
Renewables Portfolio Standards, 1997
ME: 30% by 2000
MN: 425 MW by 2002
MA (under development)
NV: 1% by 2009
AZ: 1.1% by 2007
IA: 105 MW by 1999
www.dsireusa.org
September 2008
Solar/DG Provisions in RPS Policies
(~7,550 MW by 2025)
WA: double credit for DG
NH: 0.3% solar electric by 2014
MA: TBD by MA DOER
NV: 1% solar by 2015;
2.4 to 2.45 multiplier for PV
OH: 0.5% solar electric by 2025
CO: 0.8% solar electric by 2020
NY: 0.1542% customer-sited by 2013
NJ: 2.12% solar electric by 2021
PA: 0.5% solar PV by 2020
DE: 2.005% solar PV by 2019;
Triple credit for PV
MD: 2% solar electric in 2022
AZ: 4.5% DG by 2025
NM: 4% solar electric by 2020
DC: 0.386% solar electric by 2022
NC: 0.2% solar by 2018
0.6% DG by 2015
Note: “DG” means distributed generation
Solar water heating counts
towards solar set-aside
Largest RPS Markets for Solar in Near-Term:
NJ, AZ, NM, NV, NC, CO
1,200
NJ
AZ
NM
NV
800
NC
CO
600
MD
PA
400
NH
NY
200
DC
DE
2012
2011
2010
2009
0
2008
Solar Capacity (MW)
1,000
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
2025 Solar Generation / Electricity Sales
Most Aggressive RPSs, Required Solar as % of Sales
3.0%
High
Low
2.5%
2.0%
California goal of 3,000 MW equals ~ 1.5%
1.5%
1.0%
0.5%
0.0%
NM
AZ
NJ
MD
DE
NV
PA
DC
CO
NH
NC
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
NY
The Solar Alliance: www.solar-alliance.org/model_policies
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, PA,
NM, MD.*
IREC model: www.irecusa.org/index.php?id=87
* Freeing the Grid 2008: www.newenergychoices.org
Net Metering
• Allows customers to store any excess
electricity generated, usually in the
form of a kWh credit, on the grid for
later use.
• Available “statewide” in 39 states.
State policies vary dramatically.
• Best policies adopted by CO, MD,
FL, NJ, OR.*
IREC model: www.irecusa.org/index.php?id=88
* Freeing the Grid 2008: www.newenergychoices.org
DSIRE: www.dsireusa.org
September 2008
Net Metering
100
50
VT: 250
100 *
*
*
25/100
1,000
1,000
*
*
*
*
25
2,000
*
500
25
25/2,000 co-ops, munis:
100
10/25
varies 80,000
*
*
20
40
25/2,000
*
100 * 25/300
50
*
30
*
40 10
no limit
*
*
30
25
20/100
10/100
25/300
100
NH: 100
MA: 60/1,000/2,000*
RI: 1,650/2,250/3,500*
CT: 2,000*
NY: 25/500/2,000*
PA: 50/3,000/5,000*
NJ: 2,000*
DE: 25/500/2,000*
MD: 2,000
DC: 100
VA: 10/500*
NC: 20/100*
100
FL: 2,000*
(KIUC: 50)
State-wide net metering for all utility types
*
State-wide net metering for certain utility types only (e.g., investor-owned utilities)
Net metering available
in 44 states + D.C.
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. For complete details, see www.dsireusa.org.)
Solar Access Laws
• 14 states limit or prohibit
restrictions that neighborhood
covenants and/or local ordinances
may impose on the use of
solar-energy systems.
(Solar easements allow for the rights to existing solar access on the part of one property owner
to be secured from another property owner whose property could be developed in such a way
as to restrict the solar resource. Transferred with property title. Most states allow these.)
In Conclusion…
State trends:
Dominance of RPS
Super-sized net metering
Regional solar markets
Shift toward PBIs
PPA model
Room for Improvement:
Incentives for non-taxpayers
Utility rate structures
REC-selling opportunities
Market coordination
Federal policy
Wild cards: Credit markets? State budgets?
Electricity rates? Technology breakthroughs?
S lar P rtal
 Solar-Specific Incentive Information
 Clickable U.S. Map for Quick Access to PV Incentives
 PV Incentive Summary Maps
 State-by-State Incentive Comparison Tables
 Tax Credits, Rebates, Solar Portfolio Standards, Net Metering
 PV Incentive Program Installation Data from IREC
 # of Installations, Incentive $ Expenditures, Capacity Installed
 Solar Policy Guide
Excerpt from State PV Rebate Comparison Table
State
California
Connecticut
Program Name
Eligibility
California Solar
All customers of
Initiative Incentives investor-owned and
publicly owned
California utilities
CCEF - Solar PV
Non-Commercial
Rebate Program
customers of United
Illuminating Company
or Connecticut Light
& Power. (Homes
limited to four family
residences.)
Incentive Amount
Maximum Incentive
REC
Eligible System Size Funding Source
Ownership
Varies by sector and system
size
Varies by sector and
administering utility
Residential: $5/W (PTC rating)
for first 5 kW; $4.30/W (PTC)
for next 5 kW, adjusted based
on expected performance;
Gov't/Non-profit: $5/W (PTC
rating), adjusted based on
expected performance
Residential: $46,500; Remains with 10 kW maximum
Gov't/Non-profit:
project owner
$50,000
Incentives will be
subject to a maximum
of the customer’s
average annual or
expected electric usage
Non-Residential
$5/W PTC plus $0.02/kWh for
Customers of United projects installed in
Illuminating Company southwestern Connecticut
or Connecticut Light
& Power
Remains with 1 kW minimum
project owner
Connecticut
CCEF - On-Site
Renewable DG
Program
Delaware
Green Energy
All customers of
50% of installed cost; PV
Program Incentives Delmarva, Delaware system cost may not be in
EC and customers of excess of $12/W
participating
municipal utilities
Delmarva: Residential: Remains with No system size
$31,500; Commercial: project owner restrictions
$250,000 / Co-ops and
Munis: Residential:
$15,000; Commercial:
$30,000
Florida
Solar Energy
System Incentives
Program
Residential: $20,000;
Non-residential:
$100,000
Any resident or entity $4/watt DC
$2.5M (plus, potentially, Remains with
$0.02/kWh for projects project owner
installed in
southwestern
Connecticut). Incentive
funding limited to
systems with a
maximum capacity of
500 kW (PTC).
Program Budget
Rate-payer funds
$3.2 billion over 10
years, beginning
1/1/2007
Connecticut Clean
Energy Fund
(public benefits
fund)
$11.5M beginning When funds
10/1/2004
are exhausted
10 kW minimum;
Connecticut Clean $42.5M program
Maximum size is
Energy Fund (public budget beginning
limited to the
benefits fund)
12/1/05
difference between
the most recent 12
months’ peak demand
and the “base load.”
System’s AC
generation output
may not be sized
greater than 80% of
the facility’s highest
peak load in any one
hour.
Remains with 2 kW minimum
system owner
Project Preapproval
Required
12/31/2017
Yes
Expiration
Date
Green Energy Fund
(Delmarva) , DEC
Renewable
Resources Fund,
Municipal Utility
Green Energy Fund
(public benefits
fund)
General Revenue
Funds (appropriated
annually)
Delmarva: ~2.08
million; DEC:
Varies by month
(FY 07: 207,000);
Munis: Varies by
month (FY 07:
321,044 across 9
municipals)
FY 2007-08: $3.5M
Yes
None
Yes
New funds
allocated
monthly
Yes
6/30/2010
No
DSIRE Unique Visitors, 2005-08
250000
200000
150000
100000
50000
0
Contact:
Rusty Haynes
N.C. Solar Center
N.C. State University
[email protected]
www.dsireusa.org
919.513.0445