Presentation at Massachusetts Sustainable Communities and Campuses Conference on March 17, 2017

1. Solar for Public
Entities and
Not for Profits
Matt Shortsleeve

2. Solar Adoption
• Good policy support has led to broad adoption
• 62,000 solar PV systems installed in MA to date
• 13,000 solar jobs in MA
• 30 GW of Solar PV installed in US, fastest growing generation
• More jobs in solar and wind than in oil and coal – wow!
• Incentives created a good environment for uptake
• Massachusetts Green Communities Acts of 2008
• SREC and SREC II programs

3. A good fit for many, for many reasons
• Solar PV systems can delivers many benefits
• Cost savings and long term predictable hedge
• Zero emissions technology
• Long term solution
• Easy to permit and install on roofs, manageable in the ground
• Resiliency (especially when paired with Energy Storage)
• Local economic benefits – jobs, local surrogate services
• Energy security
•

4. Financial Incentives
• Federal:
• 30% Income Tax Credit (ITC)
• Accelerated Depreciation incentive (MACRS)
• State (Varies, many different policies around the U.S.)
• Mass – Net Metering + SREC
• 2018 – transition to a new program, Feed In Tariff

5. Financing Models
• Direct Ownership
• End customer purchases the solar system, through an integrator
• Eligible for Tax Credits and Depreciation
• Owns and maintains the system
• Preferred financing vehicle for Commercial and Industrial users
• 3rd Party Ownership
• Power Purchase Agreements – PPAs
• Net Meter Credit Agreements
• Hybrid - Equipment Leasing
• Can be a short term (7-10 yr) PV solution
• Can be a path to system ownership

6. Solar for Publics and Non Profits
• PPAs have become the primary financing vehicle for cities, towns,
schools, institutions and not for profits
• In this case, System Owner pays for the solar project, sells the
electricity to the “host customer” over long term
• Owner will utilize the tax credits and incentives, and be able to sell
the solar energy at a cost lower than grid delivered electricity.
• Owner earns a return on investment, customer saves money on their
electric bill.
• Savings in MA range from 10-50% - lots of factors (Tariff, System size,
timing, utility charges to interconnect)

7. Examples
• Onsite PPAs
•Offsite Net Meter Credit Agreements

8. 2018 and Beyond
• MA DOER will launch the next generation solar program,
SMART (Solar Massachusetts Renewable Target)
• Result of Utility Industry lobbying efforts
• Reduces compensation to solar system owners
• Impacts – reduced savings for solar customers; Lowers cost of
state solar program to ratepayers
• Will still deliver savings, predicated on continued cost
reductions in solar technology and installations
• If you’re considering solar PV, 2017 is a good year!