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5 Barriers to and Solutions for Community Renewable Energy
 

5 Barriers to and Solutions for Community Renewable Energy

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Community renewable energy has significant political and economic benefits, but is often hindered by five major barriers. This vividly illustrated presentation explains how communities can overcome ...

Community renewable energy has significant political and economic benefits, but is often hindered by five major barriers. This vividly illustrated presentation explains how communities can overcome the barriers and advance more local renewable energy.

ILSR Senior Researcher John Farrell gave this presentation as part of a Sustainable Economies Law Center webinar on April 30, 2013. You can view the presentation with audio at http://youtu.be/3dCcqIEl5d4

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    5 Barriers to and Solutions for Community Renewable Energy 5 Barriers to and Solutions for Community Renewable Energy Presentation Transcript

    • Presentation to Sustainable Economies Law Center webinar on April 30, 2013Local Energy RulesCity policies that overcome the barriers to community renewable energy
    • Local Local scaleLocal ownership
    • 1%A Small Fraction67,000 MWcommunity ownership
    • No local ownershipLocal ownership0% 25% 50% 75% 100%But Popularvery negative negative neutral positive very positive60% negative45% positivehttp://www.ilsr.org/community-ownership-boosts-support-renewables/
    • Total Jobs, by Project OwnershipEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)AbsenteeLocal Up to 2.8x moreAnd Profitable
    • Total Economic Impact, by Project OwnershipAbsenteeLocal Up to 3.4x moreEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)And Profitable
    • 5 Barriers✤ Tradition✤ Capital✤ Cash Flow✤ Legal✤ Utility5
    • 1
    • Centralized PowerUtility PerspectiveTransmission networkDistribution networkHouseStorageLocal CHP plantCommercialbuildingFactoryStorageStorageStorageSolar PVpower plantWindpowerplantHouse withdomestic CHPClean, local powerReality“Adapt or Die”
    • 2
    • CapitalHow can they......buy this?
    • Rules for Raising Capital
    • Type ofregistrationUpfrontCostComplianceCostsRestrictionsFull SEC$100,000-125,000Over $400,000/yr NoneRegulation D$30,000-50,000$10,000/yrAccredited investors;prior relationshipRegulation A$50,000-75,000$10,000/yr $5 million offeringIntra-State$50,000-75,000$10,000/yr (MN) In-state onlyPrivate Minimal MinimalPrior relationship; noadvertising
    • Type ofregistrationUpfrontCostComplianceCostsRestrictionsFull SEC$100,000-125,000Over $400,000/yr NoneRegulation D$30,000-50,000$10,000/yrAccredited investors;prior relationshipRegulation A$50,000-75,000$10,000/yr $5 million offeringIntra-State$50,000-75,000$10,000/yr (MN) In-state onlyPrivate Minimal MinimalPrior relationship; noadvertising
    • 3
    • Cash Flow0% 25% 50% 75% 100%20%25%25%30%Minnesota Commercial Solar ProjectFederal tax credit Depreciation State rebate Net metering
    • Cash Flow0% 25% 50% 75% 100%100%Germany/Gainesville Commercial Solar ProjectFeed-In Tariff / CLEAN Contract
    • 4
    • A.NonprofitB.CityC.CountyD.CooperativeE.All of the AboveWhich Makes Sense?
    • Which Makes Sense?A.NonprofitB.CityC.CountyD.CooperativeE.All of the Above
    • Which OneWorks?A.NonprofitB.CityC.CountyD.CooperativeE.All of the Above
    • Which OneWorks?A.NonprofitB.CityC.CountyD.CooperativeE.All of the AboveF. None of the Above
    • Cash Flow0% 25% 50% 75% 100%20%25%25%30%Minnesota Commercial Solar ProjectFederal tax credit Depreciation State rebate Net metering
    • Cash Flow0% 25% 50% 75% 100%20%25%25%15%15%Minnesota Nonprofit Solar ProjectFederal tax credit Middleman Depreciation State rebateNet metering
    • Cash Flow0% 25% 50% 75% 100%20%25%25%30%Minnesota Nonprofit Solar ProjectFederal tax credit Depreciation State rebate Net metering
    • 5
    • LEGENDno statutory net metering limitaggregate limit higher than 1% of peakdemandaggregate limit 1% of peak demand orlessLimits on Total Net Metering
    • Property Assessed Clean Energy5-6 years 5-6 years10-15 yearsUtilityPACEprogramFederalNonprofitStateAligns FinancingSimplifies Action
    • 0%10%20%30%40%$6.00 $5.00 $4.00 $3.00 $2.0013%15%19%26%39%5%6%8%12%22%Installed Cost per WattData from The Impact of City-level Permitting Processes on Residential Photovoltaic Installation Prices and Development Times (LBNL, 2013)Better Local Permitting Means Big Solar Savings...the savingsApprox.year for residential installation* 2013 2017 2023*From ILSR’s Rooftop Revolution reports: http://www.ilsr.org/rooftop-revolution/As the cost of solar falls...frompermitting risestreamlined
    • Franchise Negotiation
    • Municipal Aggregation*Active CCAsNo active CCAs
    • MunicipalizeLower ratesBetter reliabilityReduce GHG54% renewable
    • Mandate1 kilowatt per new houseSOLARsolar hot water on every new house
    • More on Community Energy.orgilsr.org