Protecting the Midwest’s Environment and Natural Heritage

Solar is Coming to ChicagoThe Broader Context - Solar in 2009

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•Module prices dropped by 40%

•Federal funding available

•Solar industry employment ~45,000 jobs in 2009, expected to surpass 60,000 in 2010.

•Industry revenues up 36%

•U.S. installed capacity up 37% for solar electric and 10% for solar thermal

Source: SEIA, US Solar Industry Year in Review 2009, www.seia.org

Protecting the Midwest’s Environment and Natural Heritage 2

Where is all this growth going?

Source: SEIA, US Solar Industry Year in Review 2009, www.seia.org

State Policy Matters

•Interconnection standards

•Net metering

•RPS with solar carve-out

•Transparent electricity pricing

•Other state incentives

Protecting the Midwest’s Environment and Natural Heritage

The Springfield Report – HB 6202

IL Solar Ramp-Up 2012 2013 2014 2015 <2025

IL Renewable Energy Standard (RES) Requirements

7% 8% 9% 10% 1.5% per year to 25% by 2025

Solar energy requirements with HB6202 (as a % of the RES obligation)

0.5% 1.5% 3% 6% 6% per year

Solar energy obligation (GWh) 31.6 78.6 169.1 380.7 Increases with RES obligation

New solar generating capacity (MW) needed to support ramp-up*(419-457 MW needed by 2015)

19-22MW

48-54MW

103-117MW

233-264MW

Increases with RES obligation

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*Low-end estimates based on capacity factors for single-axis trackers, solar radiation in Springfield. High-end estimates based on a mix of fixed-tilt and single-axis trackers, solar radiation in Peoria (PVWatts.org).

• Carving out a portion of the solar procurement obligation for customer-sited, distributed generation projects would increase installed megawatts and associated jobs.

Protecting the Midwest’s Environment and Natural Heritage

Clean and Renewable Energy Policy and Program Recommendations (May 2010)

Solar Energy State Policy Advocacy• Long-term Contracts for REC procurement• Extension of the “In-State Preference” for renewable energy• Solar Ramp-Up with DG Component• Improve net metering rules (expand the size of facilities

eligible for retail-rate net metering from 40KW to 2MW)• Integrate solar hot water into Illinois’ natural gas efficiency

programs

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Protecting the Midwest’s Environment and Natural Heritage

Clean and Renewable Energy Policy and Program Recommendations (May 2010)

Local Programs and Policies:

• “Marquee Projects Initiative”

• Integrate clean energy into programs aimed at “High-Impact Sectors”

• Adopt an innovative financing system (e.g. PACE)

• Integrate clean energy into new building codes

• Streamline permitting process

• Protect solar access rights

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Exelon/SunPower 10MW solar PV plant in the West Pullman Industrial Redevelopment Area on Chicago’s South Side