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Clean, Local Energy
The 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
                                                                             power
Factory                   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 cents
Rooftop 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 cents
Rooftop 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 cents
Rooftop 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 know



Attitude 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
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

  • 1. Clean, Local Energy The 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
  • 2. 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 power Factory Commercial plant building
  • 3. Why Clean, Local Energy? Enormous Potential 31 states could be electricity self-reliant
  • 4. Why Clean, Local Energy? Enormous Potential? 98%
  • 5. Why Clean, Local Energy? AZ Renewable Potential Other 5% Wind 40% Rooftop Solar 49% Hydro 1% CHP 5%
  • 6. Why Clean, Local Energy? AZ Renewable Potential Other Solar 51% Rooftop Solar 49%
  • 7. Value of Clean, Local Solar • Cost for power • Value of energy • Value of jobs and economic development • Value of local ownership
  • 8. 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 cents Rooftop Solar 49% Utility $3.75 16 cents
  • 9. 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)
  • 10. 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 cents Rooftop Solar Best Costs: U.S. and World 49% Residential $4.22 14 cents (L.A.) Commercial $3.40 11 cents (Germany)
  • 11. 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 cents Rooftop Solar Best Costs: U.S. and World 49% Residential $4.22 10 cents (L.A.) Commercial $3.40 8 cents (Germany)
  • 12. 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)
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Value of Clean, Local Solar Example: Grid Benefits 4 cents per kWh in addition to electricity Palo Alto, CA, municipal utility
  • 17. Value of Clean, Local Solar Jobs Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
  • 18. 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)
  • 19. 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 know Attitude towards increased use of local wind energy
  • 20. Addressing Barriers to Clean, Local Solar • Backup / intermittency • Local grid capacity • Economies of scale • Policy
  • 21. 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
  • 22. 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)
  • 23. Barriers Economies of Scale $3.75
  • 24. Barriers State Policy
  • 25. Barriers State Policy
  • 26. Barriers State Policy Feed-in Tariffs for Solar •Vermont •Rhode Island •Indianapolis, IN •Gainesville, FL •San Antonio, TX
  • 27. Barriers Local Policy 17% Solutions from Vote Solar’s Project:Permit
  • 28. Thank you! John Farrell energyselfreliantstates.org jfarrell@ilsr.org johnffarrell 612-276-3456 x210