Working Group 3 Policy & FinancePresentation Transcript
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 innovativeapproaches 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 Governors 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
CommercialCOUTESY 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