Transcript PACE - Illinois Solar Energy Association

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PACE & RECAP:
Financing
Renewable
Energy
Michelle Hickey, ISEA Program Coordinator
Illinois Solar Energy Association
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Economics of Solar - PACE & RECAP
In the first year net
REVENUE of $919.44
Illinois Solar Energy Association
7/15/2010
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What is PACE?
Property Assessed Clean
Energy
Enables local governments to finance
renewable energy and energy efficiency
projects on private property.
Illinois Solar Energy Association
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How PACE Works
Local Agency
Provides upfront Project $$
through Bond Issuance
(Residential, Commercial,
Industrial)
(City or County)
Loan paid on Property Tax Bill
Illinois Solar Energy Association
Property Owner
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Property Owner Benefits
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Eliminates upfront costs
Payments tied to
property, not owner
Save $ on energy bills
Interest portion of
annual repayment is tax
deductible
20-year financing term
matches payback
Illinois Solar Energy Association
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City/County Benefits
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Illinois Solar Energy Association
JOB CREATION
Meet climate and
renewable energy goals
No debt or credit risk
Saves money for residents
100% opt-in program with
no costs to nonparticipating property
owners
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Installer Benefits
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Illinois Solar Energy Association
JOB CREATION
Eliminates #1 Barrier to
Sales – Upfront cost
Close more sales
Reduces focus on ROI
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ILLINOIS SB 583
PACE STATE ENABLING LEGISLATION
A municipality may enter into voluntary agreements with the
owners of property within the municipality to provide
contractual assessments to finance the installation of
distributed generation renewable energy sources or energy
efficiency improvements that are permanently fixed to real
property.
Illinois Solar Energy Association
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ILLINOIS SB 2505
PACE Financing
Property owners may enter into an agreement with
Counties & Municipalities (C&M) to finance energy
improvements
C&M may levy property taxes in connection with
green energy service areas
C&M may issue bonds and may sell, assign or pledge
those bonds to the Illinois Finance Authority.
Illinois Solar Energy Association
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ILLINOIS SB 2482
PACE Financial Component
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Amends the IL Finance Authority Act
Amends Counties Code and Municipal Code
Amends Special Service Area Tax Law in Property Tax Code
Provides power to purchase special service area bonds
related to green energy special service area projects
Allows any unit of government to issue special service
area financing
Illinois Solar Energy Association
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Where is PACE Now?
 Last July, the Federal Housing Finance Agency told
Fannie Mae and Freddie Mac to stop underwriting
mortgages with PACE assessments.
 February 10th – D.C. Staffer briefing on PACE
 Many organizations and states are urging Congress to
take action and allow states to start PACE programs
Illinois Solar Energy Association
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PACE Programs
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BerkeleyFIRST Program
Boulder County ClimateSmart Loan Program
Palm Desert Energy Independence Program
Sonoma County Energy Independence Program
Illinois Solar Energy Association
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PACE Resources
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www.PACENOW.com
www.Renewfund.com
Database of State Incentives for Renewables
and Efficiency (DSIRE)
Illinois Solar Energy Association
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IL Policy Resources
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Illinois General Assembly
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Learn about bills, sponsors, and bill status
Illinois Board of Elections
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Find your legislators and their contact info
Environmental Law & Policy Center
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Midwest’s leading public interest environmental legal advocacy and eco-business
innovation organization
Illinois Environmental Council
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Track bills and legislative updates
Illinois Solar Energy Association
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RECAP - Renewable Energy
Certificate Aggregation Program
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ISEA program available
to members
• Pays $200/ 2011 Solar
REC
• Grid-tied PV systems
• Preference to small
systems (<10 kW)
Illinois Solar Energy Association
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RECs
Represents the property rights to the environmental,
social, and other non-power qualities of renewable
electricity generation.
A REC, and its associated attributes and benefits, can be
sold separately from the underlying physical electricity
associated with a renewable-based generation source.
EPA Definition
Illinois Solar Energy Association
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Energy & RECs
Illinois Solar Energy Association
7/21/2015
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SRECs
1 MWh solar energy = 1 SREC
For every 1 MWh (1000 kWh) of energy produced by a
Photovoltaic system, 1 Solar Renewable Energy
Certificate (SREC) is produced
Average 5 kW system annually generates
6000 kWh = 6 MWh = 6 SRECs
Illinois Solar Energy Association
7/15/2010
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Price of SRECs
 2011 Price is $200
• Cap of 160
SRECs
• 40 PV systems
applied
• At Capacity
 2010 Price $135
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 2009 Price $65
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Illinois Solar Energy Association
Purchased ~169 SRECs
30 PV systems
Total payout = $22,767
Purchased ~84 SRECs
20 PV systems
Total payout = $5,437
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Price of SRECs
 Need more states to open market up to
IL SRECs
 Illinois RPS with 6% carve out for solar
will help for big installations
 Sustainability Plans with teeth
Illinois Solar Energy Association
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Thank you!
Illinois Solar Energy Association
1281 E Brummel Ave
Elk Grove Village, IL 60007
312-376-8245
www.illinoissolar.org
[email protected]
Illinois Solar Energy Association