shared re modelruleswebinar
TRANSCRIPT
Shared Renewable Energy Model Program Rules
Webinar June 26, 2013
Photo credit: Clean Energy Collec@ve
Why do we need shared renewables?
• People really want to green their energy supply
• But, only about 25% of residents and businesses are able to install solar or other renewables on their own property
How does Shared Renewables work?
The ‘No Roof’ Solution = Everyone Can Participate We can stop leaving customers out of the renewable energy market
How shared renewables can help • Shared renewables works for the other 75% • Gives renters, many schools and public buildings, millions of home and business owners affordable access to clean energy for the first @me
• Simple for customers to par@cipate • Crowdfunding can help solve financing challenges for developers
• Systems can be installed in op@mal loca@ons and achieve lower cost/WaP through economies of scale
• 5% of U.S. households subscribing to 5kW of shared solar = 28GW of new clean energy capacity
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Shared Renewables: An Idea Whose Time Has Come
“The Power of Sharing in the Internet Economy” -‐ Forbes “The Sky’s the Limit for the Sharing Economy” -‐ Fast Company “The New Sharing Economy Values Access Over Ownership” -‐ CS Monitor
U0lity associa0ons are telling their members…
Model Rules for Shared Renewable Energy Programs
Laurel Passera IREC Webinar June 26, 2013
About IREC • Participated in
regulatory proceedings in over 35 states
• Works to expand
consumer access to clean energy
2013 2010
Why an Update Now?
Guiding Principles for Shared Renewables
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Shared Renewables– Shares Aspects with other Programs
Net Metering
Donation-based models
Group Purchasing
Crowd funding
Critical Elements of the Model • Program Administration • Allocating the benefits of participation • Valuation of the energy produced • Facility and Program Size • Facility ownership • Additional Considerations (# of
participants, portability/transferability, low income, restructured states)
Program Administration Who can administer a program?
– Utility—most existing shared renewables programs are administered by utilities
– Third party—for example, Clean Energy Collective
– Participants—for example, Vermont’s group billing
IREC does not specify a program administration recommendation
Allocating the Benefits of Participation
By check – Simplicity is initially appealing – However, raises security and tax considerations
that can complicate things By bill credit mechanism
– kWh credit vs. dollar credit – Relatively easy to administer – Avoids security and tax concerns – Familiar to participants and utilities
IREC recommends a monetary bill credit
Valuation of the Generation • Embedded-cost approach—based on participants’
retail rate – Credit based on generation, transmission and/or
distribution rate components (similar to NEM) – Can get even more complicated with TOU rates and
non-kWh rate components, e.g., demand charges • Value-based approach—based on the value of the
generation to the utility – Costs = lost revenue, administrative costs, incentives – Benefits = avoided generation costs, avoided line
losses, capacity benefits avoided T&D costs, avoided environmental compliance costs, others?
IREC provides language for both approaches
Ownership Ownership directly affects financing. Typical options being used: • Direct ownership (residential, commercial,
non-profit, and/or governmental) • Third-party ownership—for example,
Clean Energy Collective • Utility ownership—for example, Florida
Keyes Electric Cooperative (participants lease panels from the utility)
IREC recommends allowing all forms of ownership
Facility and Program Size Size and location depend on stakeholder goals and priorities
– Smaller systems can usually take advantage of faster interconnection (e.g., < 2 MW)
– Program could encourage locations that maximize grid benefits and/or environmental benefits
IREC recommends unlimited program size and does not make a recommendation on facility size
Additional Recommendations • Minimum of 2 program participants • Allow both portability and transferability of
participation • Minimum subscription size – one panel • Maximum size - 120% of a participant’s
annual electrical consumption • Encourage low-income consumer
participation
Restructured States Policy is not generally necessary to create programs in these states, but could potentially facilitate programs Some considerations include: • More complex billing arrangements • State requirements to offer RE programs do not
always transfer to retail suppliers • Contracts length and penalties for early termination • Customers served by different suppliers
Shared Renewables Policies and Campaigns www.sharedrenewables.org
Shared Renewables Projects www.sharedrenewables.org
Policy & Project Highlights • Colorado Solar Gardens well into implementa@on, with
thousands of customers par@cipa@ng.
• CA SB 43 poised to create 600MW pilot program
• MN passed bill crea@ng Solar Gardens program
• NY likely to consider shared renewables legisla@on in 2014
• U@li@es proac@vely launching shared renewables programs to meet customer preferences.
For more informa4on:
Laurel Passera IREC [email protected] 510-‐314-‐8384
Erica Schroeder IREC [email protected] 510-‐314-‐8206
Hannah Masterjohn Vote Solar [email protected] 607-‐431-‐8811
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Resources • IREC’s Model Program Rules serve as a star@ng point for stakeholders looking to launch programs in their state/community
• SharedRenewables.org is a central info source on shared renewables policies and projects
• IREC is available for technical assistance on program design and implementa@on • Contact Vote Solar regarding legisla@ve campaigns
APPENDIX
SHARED RENEWABLES Mul4ple customers/accounts sharing the power and economic benefits from one solar project, via their
individual u4lity bills
Broadening Access to Renewable Energy How do we bring clean energy to ALL customers?
Note: Each of these structures represents a complex set of rapidly evolving business models – this summary is designed to provide a basic understanding of the “typical” structures in use today
Company (e.g. Mosaic) manages individuals’ investments in renewable energy projects, offers aPrac@ve returns While this business model does not involve customers’ energy bills, it does enable individuals to directly support solar projects
RENEWABLE ENERGY PROJECT INVESTMENTS