Working Group 3 Policy & Finance

Group Overview

• 17 members • Representing

– Utilities, Solar Industry, Government, Consultants, Universities, Banking etc.

• 2 calls per month • 15 different Policies discussed by group • 3 main policies identified

Group Vision

By creating and supporting innovative approaches to policy and computational financial

development the Policy & Finance Working Group will assist Arizona in becoming a

sustainable global leader in the Solar Energy Industry.

Policy Breakdown

• Divided Policies into 3 sub-groups – Residential, Commercial, Utility Scale

• Similar to Governor's Solar Taskforce

• Focused on deployment of Solar • Policy included financial mechanisms

– Residential & Commercial

Residential

• Solar Readiness Ordinance – Major burden of wide spread residential solar

development – Requires all new residential to be “Solar Ready”

• Single-Family and Duplex

– Increase knowledge on a community basis of ordinance

• Financial – Decrease installation costs approximately 60%-66%

Commercial

• Energy Financing Districts (EFD’s) – AKA Property Assessed Clean Energy (PACE)

• Current AZ Statutes set up for Special Taxing Districts

• Financing – Municipality’s issue bonds/other – Decreases up front cost on property owner – Can be used for Residential and Commercial – Payback over time assessed with Property Tax

Commercial

COUTESY OF THE RENEWABLE AND APPROPRIATE ENERGY LABORATORY (RAEL) UNIVERSITY OF CALIFORNIA, BERKELEY

Commercial

• EDF (PACE) Concerns – “Superior Lien”

• Banking Industry concern • Need to work with Industry • Looking for “Softer lien”

– But still keep financing low

Utility Scale

• Arizona Transmission Initiative (ATI, AZTI…..AZIT)

• Exportation is key – Therefore Transmission is Key

• California Load – Much greater than AZ

• How to get there?

Utility Scale

• Race – NV, NM, UT, WY, OR, all in the running

• AZ set itself apart – Must differentiate benefits to CA

• Arizona Attributes – Natural Gas Generation – Solar Resource

Utility Scale

• Establishment of “Renewable Firm Zones” (RFZ’s) – Inventory under-utilized Natural Gas Plants – Establish solar generation in concert with gas capacity – Increases reliability and balance – Increases payback opportunity for Transmission

developers • Recoup costs faster • Less risk to financiers