Presentation at 4th annual DOE Solar America Cities Meeting - National roadmap for soft cost reduction, speed, and scaling the industry in local markets
Public Power Forward: IT's Role in the Changing Electric Utility
National Roadmap For Soft Cost Reduction April Sac
1. Big Ideas! A Roadmap For Success Reducing PV Project Execution Time (Permitting / Inspection / Interconnection) Doug Payne Executive Director, SolarTech www.solartech.org dpayne@solartech.org
2. The Industry Pillars – Each play a critical role in achieving Market Share Create Markets Speed, Scale, Efficiency Policy Process Get here Products Innovation We are here Policy Rogers Diffusion of Innovation (1962) Products Process 2
3. Process Efficiency = The last frontier A B Policy (macro) Fed Policy RES/RPS REC’s SB1 CSI AB32 Products Technology Innovation Maturity Processes Productivity Scale “Total Cost of Ownership” “Best in Class” tools Lower Costs Reduced Risk Faster Projects Better Bottom Line
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6. Permitting, Inspection, Interconnection: Everyone’s problem, no-one’s problem 1 Federal National Electrical Code (NEC, article 690) 50+ x 3 State Building Codes (Electrical, Structural, Fire) State 18,443 “AHJs” + 3,273 Utilities City Building Codes, Policies, FERC (Electrical, Structural, Fire, Fees) Local AHJs = Authorities Having Jurisdiction Forms, Fees, Rates, are ALL different $ $ Impact extends beyond PV into solar thermal, EE, wind, biomass, etc.
31. Phase 2 – Business Innovation New One-Stop-Shop for municipal rules, regulations, and building codes, including changes Improve consistency in pass/fail criteria, guidance on requirements to ensure approval, industry held accountable. Set standards where: Permitting Pass/Fail = Inspection Pass/Fail = Interconnection Pass/Fail criteria Wherever possible, for std systems Cost recovery “plus” model Industry adheres to State or National standards AHJs implement consistent requirements, and better visibility Resource gaps covered through incremental fees above current level Phase 2 Business Innovation 11
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33. Use technology, enterprise S/W, IT to integrate Permitting, Inspection, Interconnection requirements into 1-step, pass/fail criteria
36. Off the shelf solutions, on-line, paperless submittalsPhase 3 Technical Innovation 12
37. Case Study – Silicon Valley Power/Santa Clara (Phase 2 + 3) What - “Best in Class” #4 ranked total solar watts / customer (SEPA May’10) 1-Step Interconnection and Permit Application Residential projects <10kW No Interconnection application for projects this size How? Systems (not silos) approach all under one roof Being a “muni” makes this easier but IOUs can get close Requires supplemental training for permitting and inspection staff It’s the 21st century. Time to leverage technology. Over the counter today, completely on-line by end of 2011 Impact 2-Step process = 2 months 1-Step process = 15 minutes Tighter process control More efficient use of limited/reduced staff. Staff available to focus on non-standard installs 13
38. Case Study – East Bay Green Corridor /LBNL (Phase 1, 2) Who 8 City Region 800K+ people, 300K households What - “Best in Class” T.U.C.C. adoption July 8, 2010 Regional Uniform Guidelines Spring ‘11 Impact Drive local solar PV market, help bring to scale Increase efficiencies and reduce costs Build local economy and create jobs Help meet cities’ climate action goals How? Signed onto “California Solar Challenge” Work with 8 AHJs, Industry, LBNL SolarABCs work being considered 14
39. Q: So Now What…?!?A: Create a Platform for Process Innovation, Expand the Market, accelerating cost reduction through economies of scale 15
40. No more White Papers. Find out what works. The California Solar Challenge Where local governments, utilities, and industry work on real projects, with less paperwork, at lower prices, and at faster speeds. www.solartech.org/thechallenge Highlight Top California Cities & Counties Run 5-7 Pilots in Best Local Places for a variety of Innovators / Early Adopters Prove the Concept with Specific Projects on Homes, at Schools, or on Businesses Share the results Learn Fast, Standardization is Hard Launch 3/30, checkpoint in 6 months (SPI) Report progress, new ideas, adjust if needed 16
50. Add Solar Hot Water, EE, WindStart Today 50% of SolarAHJs by 2014 18
51. The Big Picture - 50% reduction in Soft Costs by 2014 Processes = Standards = Scale Systems (Not Silos) Solar in a Box = OTC Permits (PV + IT) < C Watts / Hour 19