Webinar Presentation: Minnesota's Value of Solar

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In March 2014, Minnesota became the first state to adopt a “value of solar” policy. It may fundamentally change the financial relationship between electric utilities and their energy-producing customers. It may also serve as a precedent for setting a transparent, market-based price for solar energy. This presentation explains the origins of value of solar, the compromises made to get the policy adopted in Minnesota, and the potential impact on utilities and solar energy producers.

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Webinar Presentation: Minnesota's Value of Solar

  1. 1. MINNESOTA’S VALUE OF SOLAR C A N A N O R T H E R N S TA T E ’ S N E W S O L A R P O L I C Y D E F U S E D I S T R I B U T E D G E N E R A T I O N B A T T L E S ? John Farrell Director of Democratic Energy May 29, 2014
  2. 2. VA L U E O F S O L A R
  3. 3. C O N C E P T A transparent and market- based price for solar energy
  4. 4. X
  5. 5. X
  6. 6. X
  7. 7. X
  8. 8. $0.00 $0.03 $0.06 $0.08 $0.11 $0.14 Brown energy replacement Avoided transmission losses Environmental Avoided transmission access Local capacity value (per kWh) Minnesota Value of Solar ??? Add your guess in the webinar chat room
  9. 9. $0.00 $0.03 $0.06 $0.08 $0.11 $0.14 Brown energy replacement Avoided transmission losses Environmental Avoided transmission access Local capacity value (per kWh) Minnesota Value of SolarUtilities value DG 14.5¢* *preliminary
  10. 10. N E T M E T E R I N G C O M PA R I S O N T O
  11. 11. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y A S I M P L E M E N T E D I N M I N N E S O TA
  12. 12. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y A S I M P L E M E N T E D I N M I N N E S O TA
  13. 13. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y A S I M P L E M E N T E D I N M I N N E S O TA
  14. 14. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T SOLAR PRODUCTION CANNOT EXCEED 120% OF ON-SITE ANNUAL CONSUMPTION SOLAR PRODUCTION CANNOT EXCEED 120% OF ON-SITE ANNUAL CONSUMPTION N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y A S I M P L E M E N T E D I N M I N N E S O TA
  15. 15. N E T M E T E R I N G VA L U E O F S O L A R C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y R AT E C R E D I T VA L U E = VA L U E O F S O L A R R AT E C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L P R I C E VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R C O N T R A C T SOLAR PRODUCTION CANNOT EXCEED 120% OF ON-SITE ANNUAL CONSUMPTION SOLAR PRODUCTION CANNOT EXCEED 120% OF ON-SITE ANNUAL CONSUMPTION N E T E X C E S S G E N E R AT I O N PA I D AT R E TA I L R AT E ( F O R < 4 0 K W ) O R AV O I D E D C O S T R AT E ( F O R < 1 M W ) N E T E X C E S S G E N E R AT I O N F O R F E I T T O U T I L I T Y ? A S I M P L E M E N T E D I N M I N N E S O TA
  16. 16. W H AT I S V S . W H AT M I G H T H AV E B E E N
  17. 17. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
  18. 18. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
  19. 19. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y ? C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
  20. 20. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
  21. 21. A D O P T E D P R O P O S E D C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R I S PA I D F O R S O L A R E N E R G Y I N A S E PA R AT E T R A N S A C T I O N S O L A R P R O D U C T I O N C A N N O T E X C E E D 1 2 0 % O F A N N U A L O N - S I T E C O N S U M P T I O N S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y O N S I T E C O N S U M P T I O N N E T E X C E S S G E N E R AT I O N I S F O R F E I T T O U T I L I T Y C U S T O M E R I S PA I D F O R A L L S O L A R E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F O N - S I T E E L E C T R I C I T Y U S E U T I L I T Y C H O O S E S W H E T H E R T O A D O P T VA L U E O F S O L A R O R K E E P N E T M E T E R I N G U T I L I T Y M U S T O F F E R VA L U E O F S O L A R , B U T C U S T O M E R M AY C H O O S E B E T W E E N I T A N D N E T M E T E R I N G U T I L I T Y A U T O M AT I C A L LY O B TA I N S S R E C , W I T H Z E R O C O M P E N S AT I O N T O C U S T O M E R S O L A R C U S T O M E R R E TA I N S S O L A R R E N E WA B L E E N E R G Y C R E D I T ( S R E C )
  22. 22. 0¢ 4¢ 8¢ 12¢ 16¢ 2014 2016 2018 2020 2022 2024 2026 2028 2030 Market-based value of solar Production-based incentive P R O P O S E D : S O L A R F E E D - I N TA R I F F N O T A D O P T E D A D O P T E D
  23. 23. I M P O R TA N T N O T E Minnesota will allow utilities to replace net metering with value of solar I T C O U L D H A V E B E E N A N O P T I O N
  24. 24. W I L L I T W O R K ? F O R S O L A R P R O D U C E R S
  25. 25. I S VA L U E O F S O L A R E N O U G H ? 0¢ 5¢ 10¢ 15¢ 20¢ 25¢ 30¢ (preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W With 30% ITC No subsidy 2 5 - Y E A R L E V E L I Z E D C O S T ¢ per kWh
  26. 26. W I L L I T W O R K ? F O R C U S T O M E R S
  27. 27. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: X $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: X $0.145 Total value of solar compensation: $79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  28. 28. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: X $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: X $0.145 Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  29. 29. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE ! ! Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) ! ! Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  30. 30. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: $0.145 Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  31. 31. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: $0.145 Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 ! ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  32. 32. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: $0.145 Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 Cost of net electricity consumption: $168 Cost per kWh: X $0.115 ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  33. 33. Jane and John Doe Golden Valley, MN ! ELECTRICITY USE Monthly usage (kWh): 2,000 Cost per kWh: $0.115 Total cost of electricity consumption: $230 ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Value of solar rate: $0.145 Total value of solar compensation: -$79 ! ! Net electricity bill: $151 Jane and John Doe Golden Valley, MN ! NET ELECTRICITY USE Monthly usage (kWh): 2,000 ! ! ! ! SOLAR PRODUCTION (5 kW) Monthly solar production (kWh): 542 Net usage (kWh): 1,458 ! Cost per kWh: $0.115 ! Net electricity bill: $168 N E T M E T E R I N GVA L U E O F S O L A R
  34. 34. W I L L I T W O R K ? F O R C O M M U N I T Y P O W E R
  35. 35. I S VA L U E O F S O L A R E N O U G H ? 0¢ 5¢ 10¢ 15¢ 20¢ 25¢ 30¢ (preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W With 30% ITC No subsidy 2 5 - Y E A R L E V E L I Z E D C O S T ¢ per kWh
  36. 36. I S VA L U E O F S O L A R E N O U G H ? 0¢ 5¢ 10¢ 15¢ 20¢ 25¢ 30¢ (preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W With 30% ITC Overhead No subsidy 2 5 - Y E A R L E V E L I Z E D C O S T ¢ per kWh
  37. 37. RECs
  38. 38. W I L L I T W O R K ? F O R U T I L I T I E S
  39. 39. A N N U A L B I L L C R E D I T PAYA B L E $0 $250 $500 $750 $1,000 (preliminary) MN Value of Solar Net Metering $932 $748 $943 2014 2019
  40. 40. T H E F U T U R E O F S O L A R
  41. 41. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D T H E R E TA I L E N E R G Y P R I C E T H E PA S T Value of solar energy (MN, 2014)
  42. 42. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L T H E PA S T Value of solar energy (MN, 2014) T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D T H E R E TA I L E N E R G Y P R I C E
  43. 43. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R Value of solar energy (MN, 2014) TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L T H E PA S T T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D T H E R E TA I L E N E R G Y P R I C E
  44. 44. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy T H E C O S T O F S O L A R , VA L U E O F S O L A R , A N D R E TA I L E N E R G Y P R I C E A R E A L L S I M I L A R P R E S E N T Value of solar energy (MN, 2014) T H E PA S T TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
  45. 45. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy P R E S E N T Value of solar energy (MN, 2014) T H E PA S T TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R M I N I M A L S U B S I D I E S N E E D E D T H E C O S T O F S O L A R , VA L U E O F S O L A R , A N D R E TA I L E N E R G Y P R I C E A R E A L L S I M I L A R
  46. 46. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy T H E F U T U R E P R E S E N T Value of solar energy (MN, 2014) T H E PA S T TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R M I N I M A L S U B S I D I E S N E E D E D
  47. 47. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy T H E F U T U R E P R E S E N T Value of solar energy (MN, 2014) T H E PA S T TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R VA L U E O F S O L A R I S S U F F I C I E N T T O C O M P E N S AT E S O L A R P R O D U C E R S M I N I M A L S U B S I D I E S N E E D E D T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R
  48. 48. $0.00 $0.10 $0.20 $0.30 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Value of solar energy Retail (net metering) rate Cost of solar energy VA L U E O F S O L A R A L O N E I S S U F F I C I E N T T O C O M P E N S AT E S O L A R P R O D U C E R S T H E F U T U R E R E TA I L R AT E C O M P E N S AT I O N ( N E T M E T E R I N G ) E X C E E D S VA L U E O F S O L A R P R E S E N T Value of solar energy (MN, 2014) T H E PA S T TA X PAY E R - F U N D E D S U B S I D I E S M A D E S O L A R E C O N O M I C A L S O L A R C U S T O M E R S P R O V I D E D M O R E VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R
  49. 49. F R E E D O M T O G E N E R AT E U N D E R F I R E States facing challenges to distributed generation Sources: Renewable Energy World, Greentech Media, IREC, Vote Solar and many more 5/21/14
  50. 50. Q U E S T I O N S ?
  51. 51. www.ilsr.org D O W N L O A D T H E F U L L R E P O R T

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