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Shared re modelruleswebinar
This document discusses shared renewable energy programs. It notes that while many people want renewable energy, only 25% can install systems on their own property. Shared renewables programs allow the other 75% to access clean energy for the first time through community solar projects. The document provides an overview of how shared renewables works, the benefits it provides, and considerations for program design elements like administration, benefits allocation, and facility ownership. It encourages the development of shared renewables policies and projects.
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Shared re modelruleswebinar
- 1. Shared Renewable Energy Model Program Rules Webinar June 26, 2013 Photo credit: Clean Energy Collec@ve
- 2. Why do we need shared renewables? • People really want to green their energy supply • But, only about 25% of residents and businesses are able to install solar or other renewables on their own property
- 3. How does Shared Renewables work? The ‘No Roof’ Solution = Everyone Can Participate We can stop leaving customers out of the renewable energy market
- 4. How shared renewables can help • Shared renewables works for the other 75% • Gives renters, many schools and public buildings, millions of home and business owners affordable access to clean energy for the first @me • Simple for customers to par@cipate • Crowdfunding can help solve financing challenges for developers • Systems can be installed in op@mal loca@ons and achieve lower cost/WaP through economies of scale • 5% of U.S. households subscribing to 5kW of shared solar = 28GW of new clean energy capacity 4
- 5. Shared Renewables: An Idea Whose Time Has Come “The Power of Sharing in the Internet Economy” -‐ Forbes “The Sky’s the Limit for the Sharing Economy” -‐ Fast Company “The New Sharing Economy Values Access Over Ownership” -‐ CS Monitor U0lity associa0ons are telling their members…
- 6. Model Rules forShared Renewable Energy Programs Laurel Passera IREC Webinar June 26, 2013
- 7. About IREC • Participatedin regulatory proceedings in over 35 states • Works to expand consumer access to clean energy
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- 9. Why an UpdateNow?
- 10. Guiding Principles forShared Renewables 1 2 3 4
- 11. Shared Renewables– Shares Aspectswith other Programs Net Metering Donation-based models Group Purchasing Crowd funding
- 12. Critical Elements ofthe Model • Program Administration • Allocating the benefits of participation • Valuation of the energy produced • Facility and Program Size • Facility ownership • Additional Considerations (# of participants, portability/transferability, low income, restructured states)
- 13. Program Administration Who canadminister a program? – Utility—most existing shared renewables programs are administered by utilities – Third party—for example, Clean Energy Collective – Participants—for example, Vermont’s group billing IREC does not specify a program administration recommendation
- 14. Allocating the Benefitsof Participation By check – Simplicity is initially appealing – However, raises security and tax considerations that can complicate things By bill credit mechanism – kWh credit vs. dollar credit – Relatively easy to administer – Avoids security and tax concerns – Familiar to participants and utilities IREC recommends a monetary bill credit
- 15. Valuation of theGeneration • Embedded-cost approach—based on participants’ retail rate – Credit based on generation, transmission and/or distribution rate components (similar to NEM) – Can get even more complicated with TOU rates and non-kWh rate components, e.g., demand charges • Value-based approach—based on the value of the generation to the utility – Costs = lost revenue, administrative costs, incentives – Benefits = avoided generation costs, avoided line losses, capacity benefits avoided T&D costs, avoided environmental compliance costs, others? IREC provides language for both approaches
- 16. Ownership Ownership directly affectsfinancing. Typical options being used: • Direct ownership (residential, commercial, non-profit, and/or governmental) • Third-party ownership—for example, Clean Energy Collective • Utility ownership—for example, Florida Keyes Electric Cooperative (participants lease panels from the utility) IREC recommends allowing all forms of ownership
- 17. Facility and ProgramSize Size and location depend on stakeholder goals and priorities – Smaller systems can usually take advantage of faster interconnection (e.g., < 2 MW) – Program could encourage locations that maximize grid benefits and/or environmental benefits IREC recommends unlimited program size and does not make a recommendation on facility size
- 18. Additional Recommendations • Minimumof 2 program participants • Allow both portability and transferability of participation • Minimum subscription size – one panel • Maximum size - 120% of a participant’s annual electrical consumption • Encourage low-income consumer participation
- 19. Restructured States Policy isnot generally necessary to create programs in these states, but could potentially facilitate programs Some considerations include: • More complex billing arrangements • State requirements to offer RE programs do not always transfer to retail suppliers • Contracts length and penalties for early termination • Customers served by different suppliers
- 20. Shared Renewables Policies and Campaigns www.sharedrenewables.org
- 21. Shared Renewables Projects www.sharedrenewables.org
- 22. Policy & Project Highlights • Colorado Solar Gardens well into implementa@on, with thousands of customers par@cipa@ng. • CA SB 43 poised to create 600MW pilot program • MN passed bill crea@ng Solar Gardens program • NY likely to consider shared renewables legisla@on in 2014 • U@li@es proac@vely launching shared renewables programs to meet customer preferences.
- 23. For more informa4on: Laurel Passera IREC lpassera@kfwlaw.com 510-‐314-‐8384 Erica Schroeder IREC eschroeder@kfwlaw.com 510-‐314-‐8206 Hannah Masterjohn Vote Solar hannah@votesolar.org 607-‐431-‐8811 23 Resources • IREC’s Model Program Rules serve as a star@ng point for stakeholders looking to launch programs in their state/community • SharedRenewables.org is a central info source on shared renewables policies and projects • IREC is available for technical assistance on program design and implementa@on • Contact Vote Solar regarding legisla@ve campaigns
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- 25. SHARED RENEWABLES Mul4ple customers/accounts sharing the power and economic benefits from one solar project, via their individual u4lity bills Broadening Access to Renewable Energy How do we bring clean energy to ALL customers? Note: Each of these structures represents a complex set of rapidly evolving business models – this summary is designed to provide a basic understanding of the “typical” structures in use today Company (e.g. Mosaic) manages individuals’ investments in renewable energy projects, offers aPrac@ve returns While this business model does not involve customers’ energy bills, it does enable individuals to directly support solar projects RENEWABLE ENERGY PROJECT INVESTMENTS