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Matt Shortsleeve MAS 2017


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Presentation at Massachusetts Sustainable Communities and Campuses Conference on March 17, 2017

Published in: Environment
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Matt Shortsleeve MAS 2017

  1. 1. Solar for Public Entities and Not for Profits Matt Shortsleeve
  2. 2. Solar Adoption • Good policy support has led to broad adoption • 62,000 solar PV systems installed in MA to date • 13,000 solar jobs in MA • 30 GW of Solar PV installed in US, fastest growing generation • More jobs in solar and wind than in oil and coal – wow! • Incentives created a good environment for uptake • Massachusetts Green Communities Acts of 2008 • SREC and SREC II programs
  3. 3. A good fit for many, for many reasons • Solar PV systems can delivers many benefits • Cost savings and long term predictable hedge • Zero emissions technology • Long term solution • Easy to permit and install on roofs, manageable in the ground • Resiliency (especially when paired with Energy Storage) • Local economic benefits – jobs, local surrogate services • Energy security •
  4. 4. Financial Incentives • Federal: • 30% Income Tax Credit (ITC) • Accelerated Depreciation incentive (MACRS) • State (Varies, many different policies around the U.S.) • Mass – Net Metering + SREC • 2018 – transition to a new program, Feed In Tariff
  5. 5. Financing Models • Direct Ownership • End customer purchases the solar system, through an integrator • Eligible for Tax Credits and Depreciation • Owns and maintains the system • Preferred financing vehicle for Commercial and Industrial users • 3rd Party Ownership • Power Purchase Agreements – PPAs • Net Meter Credit Agreements • Hybrid - Equipment Leasing • Can be a short term (7-10 yr) PV solution • Can be a path to system ownership
  6. 6. Solar for Publics and Non Profits • PPAs have become the primary financing vehicle for cities, towns, schools, institutions and not for profits • In this case, System Owner pays for the solar project, sells the electricity to the “host customer” over long term • Owner will utilize the tax credits and incentives, and be able to sell the solar energy at a cost lower than grid delivered electricity. • Owner earns a return on investment, customer saves money on their electric bill. • Savings in MA range from 10-50% - lots of factors (Tariff, System size, timing, utility charges to interconnect)
  7. 7. Examples • Onsite PPAs •Offsite Net Meter Credit Agreements
  8. 8. 2018 and Beyond • MA DOER will launch the next generation solar program, SMART (Solar Massachusetts Renewable Target) • Result of Utility Industry lobbying efforts • Reduces compensation to solar system owners • Impacts – reduced savings for solar customers; Lowers cost of state solar program to ratepayers • Will still deliver savings, predicated on continued cost reductions in solar technology and installations • If you’re considering solar PV, 2017 is a good year!