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Mark sandeen, gcc 2017

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Mark sandeen, gcc 2017

  1. 1. The Solar Coaster Cau$on: This is a high-speed ride with sudden twists and turns. The Future of Solar in Mass October 5, 2017
  2. 2. A Tale of Two Governors •  Background – Overarching goals of the Commonwealth – Utility business model – Role of our government •  Solar Success •  Threats and Concerns •  Solutions
  3. 3. Global Warming Solutions Act •  Emission Reduction Goals – 25% reduction by 2020 – 80% reduction by 2050 •  Primary Methods – Energy Efficiency / Demand Reduction – Greening the Grid • Solar energy accelerates our progress 3
  4. 4. Green Communities Act •  Green Communities Program •  Requires utility investment in energy efficiency as a resource of first recourse •  Established Stretch Energy Code •  RGGI – Power plant CO2 cap and trade •  Strengthens Renewable Portfolio Standard •  Retail Net Metering for Solar 4
  5. 5. Energy Efficiency Leader – 7 Years 5
  6. 6. Solar Carve Out Program •  400 MW target established in 2010 •  Solar Renewable Energy Certificates •  1 SREC for every 1 MWh of solar •  Program exceeded 400 MW goal in 2013!!! 6 446 MW
  7. 7. Solar Renewable Carve Out II •  SREC II program starts Mar 2014 •  New target of 1,600 MW (3.4% of total demand) •  But net meter caps hit Mar 2015 7
  8. 8. Solar Ranking in 2013 8
  9. 9. 9 Source: DOER
  10. 10. But, Solar installs fell in 2015 10 Source: SEIA
  11. 11. Net Metering Caps Hit – Mar 2015 •  Solar projects on hold in 175 communities – for over a year •  Gov. Baker proposes drastic cuts in net metering compensation for modest cap increase 11
  12. 12. Net Metering Caps Hit Again 12 3 months after caps lifted
  13. 13. Current Net Metering Caps •  Solar projects on hold in 230 communities •  Two thirds of all Massachusetts communities •  National Grid, Unitil, WMECO territories •  Gov. Baker sees no need for a cap increase 13
  14. 14. Net Meter Caps Cause Job Loss 14
  15. 15. Solar Ranking in 2016 15
  16. 16. Rate Case •  $100 million rate increase – followed by $50 million rate increase per year •  Impose new demand charges & eliminate time of use rates for solar customers – Lowers net metering credit revenue by 40% – Existing facilities are not grandfathered •  Impose new fixed charges on solar (MMRC) 16
  17. 17. Electricity Bill Primer •  Energy is measured in kWh – 1 gallon of gasoline = 36.6 kWh – Usage Charges ($ / kWh) •  Power is measured in kW – 1 horsepower = 0.75 kW •  Demand Charges ($ / kW) – Typically the highest demand in any 15 minute period over the last billing cycle 17
  18. 18. Demand Charges & Time Of Use •  Time of use rates give customers clear incentive to optimize demand during system peak periods – Lowers cost of electricity for all – Fair compensation for solar •  Peak demand charge set at customer peak not system peak – No value in lowering costs or for solar – Same 24 hours a day for billing cycle – Customers don’t have demand meters 18
  19. 19. Actual power price is highly variable
  20. 20. Solar Lowers Electricity Costs
  21. 21. Free Electricity Anyone? 21 On a sunny & windy day during March of 2017 everyone in New England got their electricity for free!
  22. 22. Solar benefits all ratepayers, not just those with solar GROWING OUR SOLAR-POWERED ECONOMY Fair compensation for all the values solar provides, and fair compensation to the grid for services
  23. 23. Grid Value of Solar 23
  24. 24. Other Solar Benefits •  Improved health •  14,500 local jobs •  Keeps energy dollars local •  Fewer transmission lines & pipelines •  Lower emissions & less fracking •  Environmental justice •  Stable energy prices 24
  25. 25. All kWh are not created equal Energy efficiency Demand Management ≠
  26. 26. Economics of Load Defection 26
  27. 27. RPS Solutions It’s time to increase the Renewable Portfolio Standard to maintain the Commonwealth’s leadership on clean energy and climate 50% by 2030 RPS 20% by 2030 Solar 27
  28. 28. RPS Solutions 28
  29. 29. Solutions – New Business Model 29 •  Change the utility business model •  Only chance of changing the utility business model is if the Governor takes on this mission •  That isn't going to happen unless voters like you make this a key election issue •  For the Governor and all elected officials
  30. 30. Talk to your Legislator about good solar policy Consider benefits of solar as well as the costs •  Net Metering and Solar Task Force report shows every $1 invested in solar yields $2.20-$2.70 in benefits •  Solar benefits ALL ratepayers by lowering energy supply prices, diversifies our energy porIolio, avoiding need for investment in new infrastructure, genera$ng power more efficiently, avoiding air pollu$on •  Solar creates jobs, builds healthier communi$es and expands tax bases •  Solar programs involve NO risk to ratepayers, i.e. solar only gets paid when it works, and encourages private capital to invest in new local genera$on, which is badly needed GROWING OUR SOLAR-POWERED ECONOMY
  31. 31. Good solar policy Restore Retail Net Metering Rates Grandfather exis9ng projects No New Fixed Charges Eliminate net metering caps Address rising interconnec9on costs A sustainable, stable solar market cannot survive while caps constrain growth and unpredictable policies create a stop-and- start dynamic in the market GROWING OUR SOLAR-POWERED ECONOMY
  32. 32. GROWING OUR SOLAR-POWERED ECONOMY
  33. 33. Solar Energy Potential •  70 to 170 years of finite energy reserves •  Its time to move to renewable energy sources

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