the value and power of distributed solar in arizona
TRANSCRIPT
Clean, Local EnergyThe Value and Power of Distributed Solar in Arizona
John Farrell, DirectorEnergy Self-Reliant States and Communities program
[email protected] x210
Presentation on Sept. 23, 2011
ILSR’s Unique Perspective
Centralized PowerYesterday Tomorrow
Transmission network
Distribution network
House
Storage
Local CHP plant
Commercialbuilding
Factory
Storage
Storage
Storage
Solar PV power plant
Windpowerplant
House with domestic CHP
Clean, local power
Enormous Potential
31 states could be electricity self-reliant
Why Clean, Local Energy?
Enormous Potential?Why Clean, Local Energy?
98%
AZ Renewable Potential
Other5%
Rooftop Solar49%
CHP5%
Hydro1%
Wind40%
Why Clean, Local Energy?
AZ Renewable Potential
Other Solar51%
Rooftop Solar49%
Why Clean, Local Energy?
Value of Clean, Local Solar
• Cost for power
• Value of energy
• Value of jobs and economic development
• Value of local ownership
Price per kWhValue of Clean, Local Solar
Other Solar51%
Rooftop Solar49%
Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011
Residential $6.40 27 cents
Commercial $5.20 22 cents
Utility $3.75 16 cents
Price per kWh
Other Solar51%
Rooftop Solar49%
Best Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World
Residential (L.A.) $4.22 18 cents
Commercial (Germany) $3.40 14 cents
Value of Clean, Local Solar
Price per kWh
Including federal tax credit
Other Solar51%
Rooftop Solar49%
Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011Residential $6.40 21 centsCommercial $5.20 17 cents
Utility $3.75 12 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World
Residential (L.A.) $4.22 14 cents
Commercial (Germany) $3.40 11 cents
Value of Clean, Local Solar
Price per kWhIncluding federal tax credit
and depreciation
Other Solar51%
Rooftop Solar49%
Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011Residential $6.40 16 centsCommercial $5.20 13 cents
Utility $3.75 9 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World
Residential (L.A.) $4.22 10 cents
Commercial (Germany) $3.40 8 cents
Value of Clean, Local Solar
Price per kWhIncluding federal tax credit
and depreciationAverage Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011
Residential $6.40 16 centsCommercial $5.20 13 cents
Utility $3.75 9 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World
Residential (L.A.) $4.22 10 cents
Commercial (Germany) $3.40 8 cents
Value of Clean, Local Solar
Average Price: Arizona, 2011Average Price: Arizona, 2011
Residential 11 centsCommercial 9 cents
Industrial 6 cents
Energy
$5 per Watt
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
•avoided cost
Value of Clean, Local Solar
Grid Benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices
Value of Clean, Local Solar
Social Benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs
Value of Clean, Local Solar
Example: Grid Benefits4 cents per kWh
in addition to electricity
Palo Alto, CA, municipal utility
Value of Clean, Local Solar
Jobs
Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
Value of Clean, Local Solar
Local BenefitsLocal Ownership Boosts Impact of Renewables
Value of Clean, Local Solar
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
Public Support
0%
10%
20%
30%
40%
50%
very negative negative neutral positive very positive don’t know2
12
33
41
10
2 35
11
2124
36
No local ownershipLocal ownership
Attitude towards increased use of local wind energy
(–44)(+33)
very negative negative positive very positive
Value of Clean, Local Solar
Addressing Barriers to Clean, Local Solar
• Backup / intermittency
• Local grid capacity
• Economies of scale
• Policy
Intermittency
$0
$0.01
$0.02
$0.03
$0.04
1 location 5 locations 25 locations
$0.00
$0.01
$0.04
Geographic Dispersion Lowers Solar Backup Costs
$ per kWh
Barriers
Distribution Grid
• Utilities in California (and elsewhere) generally agree that 15% distributed generation on a local distribution circuit is the threshold for any problems.
Democratizing the Electricity System (ILSR, 2011)
15%, or bustno
Barriers
Economies of ScaleBarriers
$3.75
State PolicyBarriers
State PolicyBarriers
State PolicyBarriers
Feed-in Tariffs for Solar
•Vermont•Rhode Island•Indianapolis, IN•Gainesville, FL•San Antonio, TX
Local Policy
17%
Barriers
Solutions from Vote Solar’s Project:Permit
Thank you!
John Farrellenergyselfreliantstates.orgjfarrell@ilsr.orgjohnffarrell612-276-3456 x210