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Rhone Resch | Industry Perspective on a National Performance Based Incentive


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Rhone Resch | Industry Perspective on a National Performance Based Incentive

  1. 1. US Solar Energy Industry’s Perspective on a National Performance Based Incentive Rhone Resch Tuesday, June 9, 2009 © 2009 SEIA
  2. 2. US PV Market - 2008 <ul><li>PV market grew by 71% </li></ul><ul><li>On-grid PV grew by 81% </li></ul><ul><li>Off-grid PV grew by 21% </li></ul><ul><li>Residential +32% </li></ul><ul><li>Commercial +110% </li></ul><ul><li>Utility +97% </li></ul><ul><li>Domestic manufacturing continues to grow </li></ul>Tuesday, June 9, 2009 © 2009 SEIA Domestic PV Cell Manufacturing (MW DC ) 2007 2008p Growth Production 271 414 53% Capacity 415 685 65% Source: Greentech Media Research/Prometheus Institute
  3. 3. PV Capacity Additions – On vs Off Grid Tuesday, June 9, 2009 © 2009 SEIA Sources: SEIA, IREC, PV News
  4. 4. State RPS Solar/DG Carve-Out Impacts <ul><li>State RPS requirements will help ensure annual installations stay strong for in over the next few years. </li></ul><ul><li>RPS requirements: </li></ul><ul><ul><li>2009 increase of 37% </li></ul></ul><ul><ul><li>2010 increase of 58% </li></ul></ul><ul><ul><li>2011 increase of 245% </li></ul></ul>Solar Capacity Additions Necessary to Satisfy Solar and DG Carve-Outs (MW) Source: Lawrence Berkeley National Laboratory Includes PV and CSP State 2009 2010 2011 AZ 3 5 52 CO 1 1 31 DC 0 0 0 DE 0 0 1 MD 3 9 9 MO 0 0 23 NC 0 5 17 NH 0 4 4 NJ 42 58 63 NM 0 0 144 NV 17 2 17 NY 2 2 2 OH 5 8 26 PA 2 23 16 Total 74 117 404
  5. 5. 2008 Breakthrough Success <ul><li>Tax Credit Extension - 17 Votes in Congress </li></ul><ul><ul><li>Filibustered 9 times </li></ul></ul><ul><li>Bailout Bill – October 3 </li></ul><ul><ul><li>Extended tax credits for 8 years </li></ul></ul><ul><ul><li>Removed residential cap for PV </li></ul></ul><ul><ul><li>Repealed utility exemption </li></ul></ul><ul><ul><li>Provides AMT relief for commercial and residential </li></ul></ul><ul><li>Additional Solar Legislation Introduced </li></ul><ul><ul><li>SOLAR Act </li></ul></ul><ul><ul><li>Feed-in Tariff </li></ul></ul><ul><ul><li>Solar Reserves </li></ul></ul>
  6. 6. Changes in Washington <ul><li>Obama Administration </li></ul><ul><ul><li>Carol Browner – WH Energy and Climate Coordinator** </li></ul></ul><ul><ul><li>Dr. Steven Chu – Secretary of Energy </li></ul></ul><ul><ul><li>Nancy Sutley – Council on Environmental Quality </li></ul></ul><ul><ul><li>Lisa Jackson – Environmental Protection Agency </li></ul></ul><ul><ul><li>Van Jones – WH Green Jobs Advisor </li></ul></ul><ul><ul><li>Cathy Zoi – Assistant Secretary EERE </li></ul></ul><ul><li>Congress </li></ul><ul><ul><li>Waxman replaces Dingell Chairman of House Committee on Energy & Commerce </li></ul></ul><ul><ul><li>Markey Subcommittee on Global Warming </li></ul></ul><ul><ul><li>Senate – Democrat majority increases, more difficult for Republican filibuster </li></ul></ul>
  7. 7. HR 1 American Recovery and Reinvestment Act <ul><li>19 Provisions to Benefit Solar Companies </li></ul><ul><ul><li>Improves existing tax credits </li></ul></ul><ul><ul><ul><li>Refundability </li></ul></ul></ul><ul><ul><ul><li>Remove subsidized energy financing penalty </li></ul></ul></ul><ul><ul><li>Improves loan guarantee program </li></ul></ul><ul><ul><li>Increases government procurement ($25 billion) </li></ul></ul><ul><ul><li>Creates new manufacturing tax credits </li></ul></ul><ul><ul><li>State energy program funding ($3.1 billion) </li></ul></ul><ul><ul><li>Expands CREBS funding ($1.6 billion) </li></ul></ul><ul><ul><li>Funds school repair and construction ($53.6 billion) </li></ul></ul><ul><ul><li>Funds water treatment repair and construction ($6 billion) </li></ul></ul><ul><ul><li>Supports construction of new transmission </li></ul></ul><ul><ul><li>Increases access to federal lands </li></ul></ul><ul><ul><li>Increases DOE solar appropriation </li></ul></ul><ul><ul><li>Improves tax credit for solar water heating </li></ul></ul><ul><ul><li>Funds worker training </li></ul></ul><ul><ul><li>Increases profile of solar with top political leaders </li></ul></ul>
  8. 8. Feed-in Tariff Policy Discussion <ul><li>Pros </li></ul><ul><ul><li>Upside potential and good outcomes in Europe </li></ul></ul><ul><ul><li>Rapid, large market development </li></ul></ul><ul><ul><li>Encourages broader range of technologies and applications (CSP in Spain, BIPV in Germany and France) </li></ul></ul><ul><ul><li>Local FiTs provide low-cost implementation option for utility’s compliance with RPS </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>FiTs are difficult to structure, can be a large cost to the government and can lead to market failure </li></ul></ul><ul><ul><li>National FiT inconsistent with US electricity law </li></ul></ul><ul><ul><li>Will be a heavy political lift in U.S. </li></ul></ul><ul><ul><ul><li>Education of Congress </li></ul></ul></ul><ul><ul><ul><li>Opposition by 4,000 utilities </li></ul></ul></ul>Tuesday, June 9, 2009 © 2009 SEIA
  9. 9. Feed-in Tariff Policy Discussion <ul><li>How to Pass and FiT in the US </li></ul><ul><ul><li>FiT not a single policy but a set of policies with many possible combinations </li></ul></ul><ul><ul><ul><li>Solar Act </li></ul></ul></ul><ul><ul><ul><ul><li>Net Metering </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Interconnection </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Low cost permitting </li></ul></ul></ul></ul><ul><ul><ul><li>Renewable Energy Bank – Energy Bill </li></ul></ul></ul><ul><ul><ul><li>Carbon Cap and Trade </li></ul></ul></ul><ul><ul><ul><ul><li>Performance-based cash incentive </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dedicated funding source </li></ul></ul></ul></ul>Tuesday, June 9, 2009 © 2009 SEIA