Transcript

• 1. MINNESOTA’S VALUE OF SOLAR C A N A N O R T H E R N S TA T E ’ S N E W S O L A R P O L I C Y D E F U S E D I S T R I B U T E D G E N E R A T I O N B A T T L E S ? John Farrell Director of Democratic Energy April 9, 2014
• 2. VA L U E O F S O L A R
• 3. C O N C E P T A transparent and market- based price for solar energy
• 4. VA L U E FA C T O R S • Avoiding the purchase of dirty energy • Avoiding the need to build additional power plant capacity • Providing energy for decades at a fixed price • Reducing wear and tear on the electric grid, including power lines, substations, and power plants
• 5. $0.00 $0.03 $0.06 $0.08 $0.11 $0.14 Brown energy replacement Avoided transmission losses Environmental (RPS compliance) Avoided transmission access Local capacity value (per kWh) Minnesota Value of SolarUtilities value DG 14.5¢* *preliminary
• 6. N E T M E T E R I N G C O M PA R I S O N T O
• 7. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y A S I M P L E M E N T E D I N M I N N E S O TA
• 8. I M P O R TA N T N O T E Minnesota will allow utilities to replace net metering with value of solar I T C O U L D H A V E B E E N A N O P T I O N
• 9. W H AT I S V S . W H AT M I G H T H AV E B E E N
• 10. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
• 11. 0¢ 4¢ 8¢ 12¢ 16¢ 2014 2016 2018 2020 2022 2024 2026 2028 2030 Market-based value of solar Production-based incentive P R O P O S E D : S O L A R F E E D - I N TA R I F F N O T A D O P T E D A D O P T E D
• 12. W I L L I T W O R K ? F O R S O L A R P R O D U C E R S
• 13. I S VA L U E O F S O L A R E N O U G H ? 0¢ 5¢ 10¢ 15¢ 20¢ 25¢ 30¢ (preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W With 30% ITC No subsidy 2 5 - Y E A R L E V E L I Z E D C O S T ¢ per kWh
• 14. W I L L I T W O R K ? F O R C U S T O M E R S
• 15. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: $0.145 Total value of solar compensation: $79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
• 16. W I L L I T W O R K ? F O R U T I L I T I E S
• 17. A N N U A L B I L L C R E D I T PAYA B L E $0 $250 $500 $750 $1,000 (preliminary) MN Value of Solar Net Metering $932 $748 $943 2014 2019
• 18. P R O J E C T E D R AT E S $0.00 $0.10 $0.20 $0.30 $0.40 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 Retail (net metering) Rate VOST Escalated VOST Flat U T I L I T Y S A V I N G S Z O N E
• 19. C A N I T H E L P ?
• 20. F R E E D O M T O G E N E R AT E U N D E R F I R E States facing challenges to distributed generation Sources: Renewable Energy World, Greentech Media, IREC, Vote Solar and many more 3/19/14
• 21. www.ilsr.org D O W N L O A D T H E F U L L R E P O R T