DOE's Solar Analysis Agenda provides an overview of current solar analysis activities and future directions at the National Renewable Energy Laboratory (NREL). Current activities include market, value, policy and financial analysis, modeling of grid integration and market transformation, and analysis of concentrating solar power technologies. Future analysis will focus on high penetration solar scenarios, manufacturing cost modeling, supporting market transformation, and establishing regional solar policy and analysis centers.

1. DOE’s Solar Analysis Agenda: Current Activities and Future Directions Presented at Institute for Analysis of Solar Energy Symposium George Washington University Washington, DC Robert M. Margolis Senior Energy Analysis National Renewable Energy Laboratory April 24, 2009

2. Agenda Overview of current analysis activities Market, value, policy and financial analysis Modeling Grid-integration Market transformation analysis CSP analysis Future analysis directions

3. Solar Analysis Organization DOE Solar Program NREL DC Margolis, Price LBNL, SNL, BNL Wiser, Bolinger, et al. NREL Golden: Cory, Dehnolm, Blair, et al. Subcontractors New West, etc. Data Analysis and Visualization Energy Forecasting and Modeling Market and Policy Impact Analysis Technology Systems and Sustainability

4. Market and Value Analysis Market analysis Perform detailed analyses of existing and emerging markets. Compile and publish solar market information. Assess and revise the Solar Program’s technical, market and policy targets. Develop/improve market penetration models. Carry out market penetration analysis. Value analysis Develop methods and tools for improving the quantification of the benefits and costs of solar technologies. Work with modelers to improve the representation of solar technologies in their models. Enhance and maintain NREL’s PV Value Clearinghouse.

5. Market analysis example (a): Tracking installed PV system costs Experienced steady installed cost reductions through 2005, then flat through 2007. Much of the decline in installed costs through 2005 came from reductions in non-module (i.e., balance of system) costs, which held steady in 2006 and 2007. Source: Recent LBNL report, Tracking the Sun: The Installed Cost of Photovoltaics in the U.S. from 1998-2007

6. Market analysis example (b): The Solar Deployment Systems (SolarDS) Model Regional solar insolation (435 regions) Utility electricity rates Multiple rate structures (flat, time of use, demand-based) PV cost & future reductions ($/kW) PV Financing terms Federal and State PV Incentives Building Stock Residential: Single Family, Multi Unit, Rentals Commercial: 14 building types Model Input Cumulative and annual PV installations (GW) for each state Residential and Commercial 2 year resolution to 2030 Fraction of buildings with PV PV payback time Cost of Federal and State incentives Model Output SolarDS is a market penetration model that forecasts PV installations on residential and commercial rooftops in the U.S. under various economic and policy scenarios to 2030. 2030

7. Value Analysis Example: Web-based distributed PV value clearinghouse Improving the clearinghouse interface. Expanding content in clearinghouse. Access at: http://www.nrel.gov/analysis/pvclearinghouse/

8. Policy and Financial Analysis Policy analysis Define and carry out analysis that addresses policy questions of importance to the Solar Program and other stakeholders. Example topics include: Analysis of carbon emissions reduction potential of solar technologies under a range of growth scenarios. Investigating the use of enabling technologies with PV such as energy storage and plug-in hybrid electric vehicles. Reviewing state RPS policies that include solar/DG set-asides. Financial analysis Define and carry out financial analysis that meets the needs of the Solar Program and other stakeholders. Examples include: Tracking and analyzing investment trends. Writing reports and case studies on selected financing topics. Developing a solar/renewable web based financing portal.

9. Policy analysis example (a): 2009 residential PV and electricity price differences with existing incentives Analysis for 1000 largest utilities in the U.S. Key drivers for PV are incentives, electricity prices and quality of the solar resource. Draft

10. Policy analysis example (b): 2015 residential breakeven cost with federal ITC but no state incentives At $5/W, attractive in 98 of 1,000 largest utilities, which provide ~25% of U.S. residential electricity sales. At $4/W attractive in 328 utilities, ~42% of sales. At $3/W attractive in 743 utilities, ~80% of sales. Draft

11. Financial analysis example (a): Tracking and analyzing investment trends in solar Global investment in solar increased from $66M in 2000 to over $16B in 2008. Venture Capital/Private Equity and Debt took on larger role in 2008. Most of 2008 investment (83%) took place during 1 st three quarters of 2008 (Q4 accounted for only 17% of 2008 investment). Total global investment in solar energy

12. Financial analysis example (b): Tracking and analyzing investment trends in solar Global private investment in solar by region and technology U.S. investors are pursuing a more diverse set of technologies than investors in other regions.

13. Financial analysis example (c): Report on financing PV by state and local government Identify best practices for state and local governments with respect to financing PV on public property: Reduced electricity bills Value of green attributes Use of state incentives Taking advantage of 3 rd party ownership models Options for owning and financing public-sector systems Understanding insurance requirements

14. Modeling Analysis Develop validated modeling platforms for all solar technologies Credible energy production and levelized cost of energy analysis for project development, evaluation, and due diligence (Industry). R&D prioritization (DOE). Key modeling tools include: PVWATTS - familiar, easily accessible and linked to other programs. Solar Advisor Model (SAM) - model energy output, levelized energy costs, cash flows, parametric analysis. Validate models for a variety of technologies, applications, and locations against measured data Support development of standards for modeling annual energy production. Database of necessary information, e.g. measured module and inverter parameters, weather data, etc.

15. Modeling analysis example: The Solar Advisor Model (SAM) Original Vision Combine all solar technologies in one modeling environment. Model performance, costs and financing consistently across technologies. Calculate impact of R&D technology improvements on LCOE, NPV, etc. Extensive sensitivity analysis and output/plotting capabilities. Do not reinvent the wheel, i.e., use existing models when possible. Current Vision Robust simulation tool that both DOE and industry will use. Implementation of best performance models (Sandia/NREL PV, NREL trough, Sandia Inverter, 5-Parameter PV via UW-Madison and CEC). Policy, Markets and Technology Analysis Siting Tool (especially with detailed Google-Maps solar satellite data). Easy to Use interface. Steps in setting up SAM analysis case Choose technology Define environment (including location, financials and incentives) Define system parameters (including system configuration and costs) Add parametrics

16. Grid-Integration, MT, and CSP Analysis Grid-Integration Analysis Improving distribution system analysis and modeling for high penetration PV Working with Western Wind and Solar Integration Study (WWSIS) on spatial and temporal impact of solar resource on PV system integration. Market Transformation Analysis Developing database of grid-tied PV installations and related data. Analysis in support of: workforce development, utility and state-level stakeholders, and Solar America cities program CSP Analysis Quantify and assess energy and capacity value of CSP systems with & without storage; model high penetration scenarios Identify environmental and transmission barriers to CSP deployment; assist with definition of Renewable Energy Zones

17. Grid-Integration Analysis Example: The Renewable Systems Interconnection Study The 15 RSI reports include: Renewable Systems Interconnection: Executive Summary Distributed Photovoltaic Systems Design and Technology Requirements Advanced Grid Planning and Operation Utility Models, Analysis, and Simulation Tools Cyber Security Analysis Power System Planning: Emerging Practices Suitable for Evaluating the Impact of High-Penetration Photovoltaics Distribution System Voltage Performance Analysis for High-Penetration Photovoltaics Enhanced Reliability of Photovoltaic Systems with Energy Storage and Controls Transmission System Performance Analysis for High-Penetration Photovoltaics Solar Resource Assessment Test and Demonstration Program Definition Photovoltaics Value Analysis Photovoltaics Business Models Production Cost Modeling for High Levels of Photovoltaics Penetration Rooftop Photovoltaics Market Penetration Scenarios

18. Future analysis directions Launching “Solar Vision” high penetration study Including supply chain issues Workforce needs/benefits Environmental benefits Impacts on electricity grid operation Developing suite of manufacturing cost models for PV technologies. Accounting for: labor, material, throughput, yield, etc. Separate models for: CdTe, CIGS, III-V devices Expanding work in support of market transformation Foundational analysis on workforce development Support for state level regulatory commissions DOE recently issued RFI for “Solar Policy and Analysis Regional Centers” (comments due 5/7/09)

19. Example Publications Quantifying Avoided Fuel Use and Emissions from Solar Photovoltaic Generation in the Western United States, Environmental Science and Technology , 2009, 43 (1), 226-232. Supply Curves for Rooftop Solar PV-Generated Electricity for the United States, NREL Technical Report, November 2008. Evaluating the Limits of Solar Photovoltaics (PV) in Electric Power Systems Utilizing Energy Storage and Other Enabling Technologies, Energy Policy . Vol. 35, pp. 4424-4433. 2007. Land-use Requirements and the Per-capita Solar Footprint for Photovoltaic Generation in the United States, Energy Policy . Vol. 36, pp. 3531- 3543. 2008. A Historical Analysis of Investment in Solar Energy Technologies, 2000-2007, NREL Technical Report, December 2008. Financing Non-Residential Photovoltaic Projects: Options and Implications, LBNL Report, January 2009. Solar Photovoltaic Financing: Deployment on Public Property by State and Local Governments. NREL Technical Report (NREL/TP-670-43115). May 2008. Utility-Interconnected Photovoltaic Systems: Evaluating the Rationale for the Utility-Accessible External Disconnect Switch. NREL Technical Report (NREL/TP-581-42675). January 2008. Renewable Systems Interconnection Study. Set of 15 reports published in 2008 exploring technical and analytical challenges that must be addressed to enable high penetration levels of distributed renewable energy technologies. http://www1.eere.energy.gov/solar/solar_america/rsi.html