Solar in Texas

Alan Comnes, Director of Transmission, SunPower CorporationOn Behalf of the Solar Energy Industries Association

Who is SEIA?

• SEIA is the voice of the U.S. solar energy industry – Founded as a trade association in 1974 – 1,000 member companies in the solar supply chain– Represents the largest solar companies in the world – Active at the federal, state and local level

• SEIA’s mission is to build a strong solar industry to power the U.S.

© 2013 Solar Energy Industries Association® 2

Solar is in all 50 states

January 13, 2014 © 2013 Solar Energy Industries Association® 3

Solar creates jobs and drives investment

• 119,000 American workers in solar – more than double the number in 2009 – at 6,100 companies across the country

• The value of U.S. solar installations was $11.5 billion in 2012, up from just $810 million in 2006.

• 10.25 GW of cumulative solar electric capacity operating in the U.S. in 2013, enough to power more than 1.7 million average American homes

• Globally, there is 101 GW of installed solar electric capacity in 2013

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Cumulative Capacity by Market Segment (U.S.)

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1,939

3,592

4,211

0

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4500

2009 2010 2011 2012 As of Q3 2013

Inst

alle

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apac

ity (M

W)

Residential Commercial Utility

PV Market to Continue Strong Growth

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0

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2010 2011 2012 2013E 2014E 2015E 2016E

Ann

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.S.)

PV Price Declines Drive Growth

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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

Aver

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Syst

em P

rice

($/W

)

Average Utility-Scale System Price

Levelized Cost of Energy (LCOE) of Solar Is Highly Competitive

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Source: Lazard, August 2013. LCOE estimates exclude (1) impact of ITC, PTCs or other incentives, (2) value/cost of RECs or carbon price; (3) renewable integration costs. Coal and natural gas fuel costs at $2.00/MMBtu and $4.50/MMBtu, respectively.

Solar Is a Job Creator and Economic Driver

• In 2012, $75 million was invested in Texas to install solar on homes and businesses. This represents a 29% increase over the previous year, and is expected to grow again this year.

• There are 284 solar companies operating in Texas providing employment to 3,200 Texans. Company breakdown:– 61 manufacturers and 23 manufacturing facilities, – 113 contractor/installers, – 29 project developers, – 18 distributors, and – 63 companies engaged in related industry support.

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Solar Is Increasing in Texas…

• Since the end of 2009, cumulative installed solar PV capacity in Texas has increased from 8 MW to over 136 MW. This is enough to power 12,700 homes.

• There is a further 1,800 MW of solar in the queue, and CPS Energy and OCI Solar Power just completed the first 41 MW of a 400 MW project in San Antonio

• Average installed residential and commercial photovoltaic system prices in Texas have fallen by 25% in the last year.

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… And Solar’s Untapped Potential Can be Efficiently Deployed to Load Leveraging Existing Transmission

Texas has the highest potential for solar in the nation

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Texas solar resource estimated potential:• 38,993 TWh utility‐scale PV (14% of the entire U.S.)• 22,786 TWh utility‐scale CSP (20% of the entire U.S.)

NREL

Annual Capacity Factors (PV, 1-axis tracker / fixed tilt):• West Texas: 32% / 26%• Panhandle: 30% / 25%• Austin/Houston:24% / 21%

Sources: ERCOT (URS)NREL

Solar’s Hourly Profile is Complementary to Wind

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Pow

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utpu

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Wind -- 200 MW

Solar PV -- 80 MW Single-axis Tracker

Wind + Solar PV

Typical July Average Day, West Texas

Solar PV 45 MW 1-axis tracker

Solar Helps Meet Resource Adequacy Needs

• Coincides with peak demand• Highly predictable, can be scheduled• Uses little to no water• Highly scalable and quick to market• Can be located in a wide range of locations• Can serve as a hedge against future

commodity and carbon price increases

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