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The Great Incentives Scavenger Hunt: A State Policy Update Rusty Haynes N.C. Solar Center / NCSU 3rd Annual SEMI North American PV Fab Managers Forum San Francisco, CA 9 July 2012

The Great Incentives Scavenger Hunt: A State Policy Update Rusty Haynes N.C. Solar Center / NCSU 3rd Annual SEMI North American PV Fab Managers Forum San

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The Great Incentives Scavenger Hunt: A State Policy Update

Rusty HaynesN.C. Solar Center / NCSU

3rd Annual SEMI North American PV Fab Managers ForumSan Francisco, CA

9 July 2012

• Created in 1995• Funded by U.S. DOE / NREL• Managed by NCSC / NCSU• Scope = government & utility

incentives & policies that promote RE/EE

• ~ 2,700 total summaries• ~175,000 users per month• DSIRE Solar (dsireusa.org/solar)• DSIRE data services for businesses

(dsireusa.org/services)

DSIRE Overview

Why is the U.S. PV market challenging?

• Investor-owned (210)• Public utilities (2,009)• Electric co-ops (883)• Federal (9)

• Federal (1)• States, territories, DC (~65)• Counties (3,143)• Municipalities (~30,000)

Regulatory Regimes Electric Utilities

Source: U.S. Energy Information Administration

U.S. Electric Industry Average Revenue per kWh(March 2012)

RPS Policies with Solar/DG Provisions

RPS with solar / DG provision

RE goal with solar / DG provision

(Source: DSIRE, June 2012)WA: double credit for

DG

NV: 1.5% solar x 2025;

2.4 - 2.45 multiplier for PV UT: 2.4

multiplierfor solar-electric

AZ: 4.5% DG x 2025

NM: 4% solar-electric x 2020 0.6% DG x 2020

TX: double credit for non-wind

(non-wind goal: 500 MW)

CO: 3.0% DG x 20201.5% customer-sited x

2020

MO: 0.3% solar-electric x 2021

MI: triple credit for solar- electric

OH: 0.5% solar-electric x 2025

NC: 0.2% solar

x 2018

MD: 2% solar x 2020 DC: 2.5% solar x 2023

NY: 0.4092% customer- sited x 2015

DE: 3.5% PV x 2026; triple credit for PV

NH: 0.3% solar- electric x 2014

NJ: 5,316 GWh solar- electric x 2026PA: 0.5% PV x 2021

MA: 400 MW PV x 2020

OR: 20 MW solar PV x 2020; double credit for PV

IL: 1.5% PV x 20250.25% DG by 2025 WV:

various multipliers

16 states + DC have an RPS with

solar/DG provisions

DC

Solar water heating counts toward solar / DG provision

† Fuel cells qualify for solar carve-out

UT: limited to certain sectors

AZ: limited to certain sectors

VA: see notes

3rd-Party PV Power Purchase Agreements (PPAs)(Source: DSIRE, April 2012)

Apparently disallowed by state or otherwise restricted by legal barriers

Status unclear or unknown

Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state

Puerto Rico

At least 21 states + PR authorize or

allow 3rd-party PV PPAs

Net Metering Interconnection

www.freeingthegrid.org

State offers one or more industry incentives that apply to PV

Puerto Rico

DC

21 states + PR have industry recruitment

incentives for PV (etc.)

Industry Recruitment/Support Incentives(Source: DSIRE, June 2012)

CT: Residential Solar Investment ProgramCT: Long-Term ZREC, LREC Contracts (CL&P, UI)DE: SRECsMA: Commonwealth Solar II RebatesMN: IOU PV rebates (MN Power, Excel)TX: Austin Energy Commercial PV IncentivesWA: RE Production Incentives

Some Programs Offer Bonus $$ for In-State Content…

• CA: Net metering bolstered, new CSI $$, RAM/FIT evolution• NJ, PA: SREC market mayhem• CT: ZRECs & residential PV rebate program • VT: FIT & expedited PV permitting expanded • NY: NY-Sun Initiative• IL: DG carve-out, net metering snafu• MD: RPS shored up; net metering salvaged• DE: SREC pilot program• TX: 3rd-party sales • NH: RPS solar carve-out gutted

Recent Major State Policy Developments

Key Points & Take-Aways• Each state basically its own market. Markets driven by state

policy, rates, solar resources.• Federal policy a constant wildcard; focus is on states. Growing

industry interest in state legislative & PUC arenas.• Dominance of 3PO model - profitable, easy. More clarification

needed nationally.• Long-term perspective: a decade of overwhelmingly solid

state policy progress, with little backtracking ... until now?• Implications of increasing policy complexity…

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Thanks.

Rusty HaynesDSIRE Project Manager

N.C. Solar Center / [email protected]

919.513.0445