Integrating Solar InvertersInto the Smart Grid

Tom TansySunSpec Alliance

June 24, 2014

1

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Today’s Presenters

Tom TansySunSpec

Martin McCueMoxa

Agenda

Introduce the SunSpec Alliance

U.S. solar market outlook

Trends driving the smart inverter market

Opportunities for integrators

Q & A

SunSpec Information Standards

PlantController

Data Store

Custom Apps

Bulk DataExchange

Finance RiskAssessment

GridOperations

SCADA

RegulatoryReporting

Solar Plant

Enviro

Inverter

Meter

String

Module

Storage

Applications

InternetVPN

End-To-End Security Monitoring & Control

Cloud

Tracker

Standards Drive Innovation and Value

Value InnovationPerformance

CostComplexityRisk

Plant Operations

Grid Control

Risk Assessment

Audience Poll # 1

What is your role in the solar industry?

7

U.S. Solar Market Outlook

8

So

More PV Installed in Q4 2013 Than All of 2011

Source: GTM Research/SEIA U.S. Solar Market Insight

Q1 201

0

Q2 201

0

Q3 201

0

Q4 201

0

Q1 201

1

Q2 201

1

Q3 201

1

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

Q2 201

3

Q3 201

3

Q4 201

3

0

500

1,000

1,500

2,000

142 180 179

349 278

366 477

794

545

819 689

1,313

744

939 962

2,106 U.S. PV Installations, 2010-2013

Residential Non-Residential Utility

Inst

alla

tio

ns

(MW

dc)

2013: 4,751 MW140,000 installations$13.7B market size

Source: Greentech Research, April 2014

Source: GTM Research/SEIA U.S. Solar Market Insight

National Market Is Forming

Source: Greentech Research, April 2014

Source: GTM Research/SEIA U.S. Solar Market Insight

2013 Installations

Cali-fornia52%

Hawaii11%

Arizona9%

New Jersey5%

Colo-rado4%

All Other

20%

California26%

New Jersey17%

Mass.16%Ari-

zona5%

North Car-olina5%

All Other30%

ResidentialNon-

Residential

But Concentration Remains In A Few States

Source: Greentech Research, April 2014

Audience Poll #2

How big was the U.S. solar market in 2013?

12

Trends Driving The Smart Inverter Market

13

Professional Investing Era Has Started

“SunEdison up 9% on ‘yieldco’ IPO news”

“NRG Yield IPO ‘could transform access to capital’”

“SolarCity Securitization Deal Jolts Solar Energy Industry”

“SolarCity Announces Pricing of Second Securitization”

U.S. RE Industry Needs A Lot Of Capital

Source: Financing U.S. Renewable Energy Projects Through Public Capital Vehicles: Qualitative and Quantitative Benefits (2013); Mendelsohn, M. Feldman, D. http://www.nrel.gov/docs/fy13osti/58315.pdf

Most Capital Unavailable to RE Investment

Source: The CityUKSource: The CityUK

Public Capital Vehicles Could Lower LCOE 8-16%

Source: Financing U.S. Renewable Energy Projects Through Public Capital Vehicles: Qualitative and Quantitative Benefits (2013); Mendelsohn, M. Feldman, D. http://www.nrel.gov/docs/fy13osti/58315.pdf

Early Commercialization Finance Gap

Risks: Technical Tech./Market/Execution Market/Execution

Technology Creation & Validation

Market-Focused Research and Business & Product Development

Commercialization

Net

Cap

ital

Req

uire

men

ts

Time

Expected Return

0

govt

corporate

VCan

gel

PE

debt

public

Technical GAP

Finance GAP

Return: Publications Patents Products Profits

0 to -100%

40% to 70%

20% to 50% 20% to 50%

5% to 15%

3% to 15%

Proj

. fin.

10% to 20%

Trans

ition

al Ass

istan

ce N

eede

d

Solar Access To Public Capital Initiative

Goals Cover early commercialization

gap Investigate way to expand

capital base Lower costs of RE financing

Results Identified public market

mechanisms• Securitization• Master Limited Partnerships

Delivered standard documents & processes

Engaged 250 investors & developers

Initiated “mock” securitization

Download: http://www.nrel.gov/docs/fy12osti/55021.pdf

Concerns About Grid Imbalances Are Growing

California Rule 21 Changes Coming

Rule 21 defines how solar plants connect to the grid

New revision permits smart inverters To “support” the grid Enable new services &

revenue streams Set stage for U.S. rollout

Smart Inverters & Storage Coming Together

Demand Response

StorageGeneration

Voltage Support

Regulation

Fast Ramping

FrequencyResponse

Peak Load Reduction

Dispatchable Quick Start

DispatchableSolar/Wind

Wider Operating Range(lower Pmin)

Over GenerationMitigation

Load Shift

EPRI/SunSpec California Solar InitiativeSmart Inverter Test & Certification Program

Supported by leaders SMA, Fronius SCE, SMUD Sandia, UL

Demo full integration Technical controls Market signals Utility networks

Enables broad deployment Sets stage for U.S. roll out Harmonizes safety standards

Opportunities for Integrators

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Early Smart Inverter Projects

Cooperate with utilities

Build revenue models

Showcase expertise

Last Mile Network Integration

PublicCloud

Plant Controller

IPPO&M

Solar Plant

Enviro

Inverter

Meter

String

Module

Storage

ApplicationsEnd-To-End Security, Monitoring & Control

Tracker

Plant Controller

PrivateCloud

Utility/ISO

GridOperations

PV + Storage Solutions

California mandate to add 1,325 MW storage by 2020

Cal ISO enabling “Flexible Ramping” product sales

“Second Life” EV batteries driving economics

Summary

Smart inverter era has started

Opportunities emerging New deployment scenarios New revenue & product/service

opportunities Broader utility cooperation

Act now to lead this exciting field

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Questions & Answers

Information Standards for Distributed Energy

Tom Tansy - tom@sunspec.org - +1 831-227-1073

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