Transcript Slide 1

Florida RPS
&
Solar
Dick Lowry
Assoc. Manager of Government Relations
7/26/07
2006 Worldwide
Market Share
F
6%
G
6%
H
5%
I
5%
Sharp
26%
E
7%
D
9%
C
10%
B
11%

No. 1 in worldwide production – 6 years
running

Solar cell manufacturer since 1959

100,000+ completed residential systems
operating worldwide
A
15%
Clean Energy
• No Air Pollution
• No Water Pollution
• No Noise Pollution
• No Solid Waste
• No Radiation Risk
• No Transmission
Lines
• No Cooling Water
PV Market Growth Will Mitigate
Carbon...and Boost Jobs
PV Installations and CO2 Reductions
60,000
400,000,000
350,000,000
50,000
300,000,000
40,000
Annual
PV MW
Installed
250,000,000
30,000
200,000,000
Tons
CO2
PV Installations and Jobs Created
150,000,000
20,000
100,000,000
10,000
50,000,000
-
60,000
3,500,000
50,000
3,000,000
-
Annual Installed Capacity [MW]
Estimated Reduction of CO2
EPIA / Greenpeace, Solar Generation, September 2006
2,500,000
40,000
1995 2000 2005 2010 2015 2020 2025
Annual
PV MW
Installed
2,000,000
30,000
20,000
1,500,000 PV Jobs
Created
1,000,000
10,000
500,000
-
1995 2000 2005 2010 2015 2020 2025
Annual Installed Capacity [MW]
Estimated Jobs
Investment and High Quality Jobs
Product and
System
Eng’g
Component
Mfg
Systems
Integration
System
Installation
Sales &
Finance
Service &
Maintenance
• Estimated 23 new jobs per added MW of PV manufacturing
capacity (REPP)
• California - 450 companies , approximately 4,000 jobs
(CalSEIA)
• Germany – 3,500 companies, 20,000 jobs (German Ministry of
Environment)
PV Market Growth Spurs
Price Reduction
► Costs of solar PV have dropped by
73% in the past 2 decades
Solar Energy is the Most Abundant
U.S. Energy Resource
Florida Sunshine Resource 2X Today’s Largest Market - Germany
Strong Public Support For Solar in
Florida
21 State RPS Policies
*LBNL, 2007
What Makes an RPS Work
for Solar?
•Explicit solar share
•Tradeable SRECs
•ACP mechanism
•Provision for LT contracts
•Provision for small systems
Solar Carve-Outs and
Multipliers
*LBNL, 2007
Solar Incentive Results To Date
• Credit Multipliers
–
–
–
–
WA: no real impact on solar to date, or expected
DE: no real impact on solar to date, or expected
MD: no real impact on solar to date, or expected
NM: some activity to support solar, but few results to show as
of yet
• Solar Carve-Outs
–
–
–
–
–
–
–
–
–
–
NJ: 18 MW PV in 2006 (27 MW cumulative)
NY: 2.7 MW PV in 2006 (9 MW cumulative)
not significantly impacted by RPS set-aside, yet
AZ: 1.8 MW PV in 2006 (16 MW cumulative); 1 MW solar
thermal plant
CO: 0.9 MW in 2006 (1.8 MW cumulative)
TX: 0.7 MW in 2006 (2.2 MW cumulative)
not significantly impacted by RPS set-aside, yet
NV: 2.6 MW in 2006 (3.5 MW cumulative); 64 MW solar thermal
plant
DC: no real impact, yet
PA: no real impact, yet
*LBNL, 2007
SRECs
• Tradeable RECs
– Who has them?
•
AZ, CA*, CO, CT, DE, D.C., ME, MD, MA, MN, MT, NV,
NH, NJ, NM, OR, PA, RI, TX, VT, VA, WA, and WI
– How do They Work?
•
Utilities required to purchase pro-rata share of
annual RPS requirements (REC’s and SREC’s)
– Companies or individuals who purchase solar
systems can sell their SRECs to the utilities
» This leverages private investment to meet
RPS
*In Development
ACP – Alternative
Compliance Payment
• ACP
– Who has one?
•
NJ, MD, PA, D.C., DE, CT, CO, MA, MT, RI, TX
– How do They Work?
•
•
A declining penalty for not meeting RPS
requirements is placed on the utilities
– This sets a value for SRECs, as utilities are then
willing to purchase SRECs for anything below the
ACP
Without an ACP, utilities have no incentive to meet
their RPS requirements
Long-Term Contracts
• Long-Term Contracts
– Who has them?
•
NJ, CO, MD, AZ , L.A.
– How do They Work?
•
•
Utilities must purchase SRECs to meet RPS
obligations
If they are only permitted to buy SRECs under longterm contracts (such as 15 years) then purchasers
of solar systems gain certainty that their SRECs will
be bought over the long term
– This allows financing of larger systems
Upfront Payment for Smaller
Systems
•
Upfront Payment for smaller systems
–
Who does this?
•
•
–
Most states that offer rebates offer them upfront, at least
for smaller systems
This would not be a rebate but an upfront payment for
long term SRECs
How do They Work?
•
•
•
The PSC would establish a present value for SRECs created
by a solar system over the following 15 years
The utility would then be required to purchase these
SRECs at this upfront price from small system owners,
until their RPS obligation is satisfied
This will be discussed in more detail in a later presentation
Growth of Solar Market in FL
Dependent on…
•Explicit solar share
•Tradeable SRECs
•ACP mechanism
•Provision for LT contracts
•Provision for small systems