The Value and Power of Distributed Solar in Arizona

Clean, Local EnergyThe Value and Power of Distributed Solar in Arizona John Farrell, Director Energy Self-Reliant States and Communities program jfarrell@ilsr.org 612.276.3456 x210 Presentation on Sept. 23, 2011

ILSR’s Unique Perspective Yesterday Tomorrow Centralized Power Clean, local power Solar PV power plant Storage Storage Transmission network Storage Storage House Local CHP plant Distribution network House with domestic CHP Wind powerFactory Commercial plant building

Why Clean, Local Energy? Enormous Potential 31 states could be electricity self-reliant

Why Clean, Local Energy? Enormous Potential? 98%

Why Clean, Local Energy? AZ Renewable Potential Other 5% Wind 40%Rooftop Solar 49% Hydro 1% CHP 5%

Why Clean, Local Energy? AZ Renewable Potential Other Solar 51%Rooftop Solar 49%

Value of Clean, Local Solar• Cost for power• Value of energy• Value of jobs and economic development• Value of local ownership

Value of Clean, Local Solar Price per kWh Average Cost: U.S., 2011 Residential $6.40 27 cents Other Solar 51% Commercial $5.20 22 centsRooftop Solar 49% Utility $3.75 16 cents

Value of Clean, Local Solar Price per kWh Best Costs: U.S. and World Residential Other Solar $4.22 18 cents (L.A.) 51%Rooftop Solar Commercial $3.40 14 cents 49% (Germany)

Value of Clean, Local Solar Price per kWh Including federal tax credit Average Cost: U.S., 2011 Residential $6.40 21 cents Other Solar Commercial $5.20 17 cents 51% Utility $3.75 12 centsRooftop Solar Best Costs: U.S. and World 49% Residential $4.22 14 cents (L.A.) Commercial $3.40 11 cents (Germany)

Value of Clean, Local Solar Price per kWh Including federal tax credit and depreciation Average Cost: U.S., 2011 Residential $6.40 16 cents Other Solar Commercial $5.20 13 cents 51% Utility $3.75 9 centsRooftop Solar Best Costs: U.S. and World 49% Residential $4.22 10 cents (L.A.) Commercial $3.40 8 cents (Germany)

Value of Clean, Local Solar Price per kWh Including federal tax credit and depreciation Average Price: Average Cost: U.S., 2011 Arizona, 2011 Residential $6.40 16 cents Residential 11 cents Commercial $5.20 13 cents Commercial 9 cents Utility $3.75 9 cents Industrial 6 cents Best Costs: U.S. and World Residential $4.22 10 cents (L.A.) Commercial $3.40 8 cents (Germany)

Value of Clean, Local Solar Energy •avoided cost $5 per Watt Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

Value of Clean, Local Solar Grid Beneﬁts •avoided cost •on-site/near demand •lower transmission losses •reduce dist. system stress •hedge against fuel prices Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

Value of Clean, Local Solar Social Beneﬁts •avoided cost •on-site/near demand •lower transmission losses •reduce dist. system stress •hedge against fuel prices •prevent blackouts •reduce pollution •create jobs Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

Value of Clean, Local Solar Example: Grid Beneﬁts 4 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 Beneﬁts Local Ownership Boosts Impact of Renewables Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Value of Clean, Local Solar Public Support No local ownership (–44) 50% Local ownership (+33) 40% 41 36 30% 33 24 20% 21 10% 11 12 10 5 0% 2 3 2 very negative negative neutral positive very positive don’t knowAttitude towards increased use of local wind energy

Addressing Barriers to Clean, Local Solar • Backup / intermittency • Local grid capacity • Economies of scale • Policy

Barriers Intermittency Geographic Dispersion Lowers Solar Backup Costs $0.04 $0.04 $0.03 $ per kWh $0.02 $0.01 $0.01 $0.00 $0 1 location 5 locations 25 locations

Barriers Distribution Grid no bust 15%, or • 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)

Barriers Economies of Scale $3.75

Barriers State Policy

Barriers State Policy Feed-in Tariffs for Solar •Vermont •Rhode Island •Indianapolis, IN •Gainesville, FL •San Antonio, TX

Barriers Local Policy 17% Solutions from Vote Solar’s Project:Permit

Thank you!John Farrell energyselfreliantstates.org jfarrell@ilsr.org johnffarrell 612-276-3456 x210

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The Value and Power of Distributed Solar in Arizona

by John Farrell on Sep 23, 2011

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