The document discusses virtual net metering and shared solar from a national perspective, focusing on California's experiences and lessons learned for other states. It highlights various program features, definitions, and principles surrounding shared renewables, as well as the importance of understanding underlying rules and requirements. The content also emphasizes the significance of framing the solar landscape and engaging in regulatory practices to expand access to clean energy.

1. Virtual Net Metering and Shared Solar:
National Perspective
Erica S. McConnell
Attorney, Shute, Mihaly & Weinberger LLP
July 12, 2016
Making Virtual Net Metering Work in California
Intersolar North America

2. • Independent, non-partisan, national non-profit organization founded in 1982
• Non-industry voice and non-lobbying
• Our focus: Expand access to reliable, affordable clean energy for all consumers
• Workforce Program: Ensure a qualified, job-ready clean energy workforce
• Solar Career Map
• National Coordinator, Grid Engineering for Accelerated Renewable Energy
Deployment (w/ EPRI, SEPA, US DOE)
• Credentialing Program: Develop national education/training standards,
best practices, and credentials
• National Administrator, Solar Instructor Training Network (US DOE)
• ANSI-Accredited National Standards Developer
• Regulatory Program: State regulatory engagement on distributed energy
resource policies
• Model rules, national best practices, policy innovations
www.irecusa.org | @IRECUSA
© 2016 IREC
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3. IREC Regulatory Activity 2007-2015
IREC Current Regulatory Engagement
IREC’s National Regulatory Engagement
© 2016 IREC
DC
IREC is represented by the law firm Shute, Mihaly & Weinberger LLP 3

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Defining Shared Renewables:
Guiding Principles
© 2016 IREC
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5. Terms and Nomenclature
• Nested within NEM
program
• Based on
participant’s retail
rate
Virtual Net
Metering (VNM)
Investment-Based
Models
• Participants receive
cash return, rather than
bill credits
• Investment-based, e.g.,
through an LLC
Green Tariff
Programs
• Often relies on
distant REC
purchases
• No rate hedging,
usually premium
These can all be “community solar”
© 2016 IREC
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6. Virtual Net Metering vs. Shared Solar
• Within NEM
• Bill credit at or close to
retail rate
• In CA: limited to
multitenant/same site
• Elsewhere (e.g., MA):
not so limited
• Bill credits could be
allocated via VNM
• Or could rely on
separate bill credit
mechanism
• Can be stand-alone
program (e.g., CO, MN)
© 2016 IREC
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7. The Moral of the Story
Terms are used inconsistently.
Don’t rely only on the program’s
or tariff’s name. Better to look at
the underlying rules and
requirements.
© 2016 IREC
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8. Key Program Attributes
 Program size
 Administration and ownership
 System/facility
 Size, location and siting requirements
 Number of participants
 Participation
 Term and eligibility requirements
 Portability and transferability of subscriptions
 Allocating the benefits of participation
 Bill credit valuation
 REC ownership and valuation
 Unsubscribed energy
 Portability and transferability of subscriptions
© 2016 IREC
Plus simplicity,
comprehensibility,
and attractiveness
for customers
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9. Based on IREC research as of September 2015, www.irecusa.org
National Shared Renewables Landscape
DC
+ many voluntary
utility programs
on the horizon
© 2016 IREC
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10. Sharing Lessons Learned from
CA Virtual Net Metering
• Do other states’ shared solar programs
facilitate on-site multitenant installations?
• Is this a target market and project design
(outside of affordable housing) for other
states?
• What learnings from California could help
other states refine their offerings to reach
these markets?
– And what can other states teach California?
© 2016 IREC
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11. IREC Resources
Both available at www.irecusa.org/regulatory-reform/shared-renewables
© 2016 IREC
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12. Additional Resources
© 2016 IREC
• IREC Consumer Protection Trio
www.irecusa.org/consumer-protection
• IREC Shared Renewable Energy Program Catalog
(update coming very soon)
www.irecusa.org/regulatory-reform/shared-renewables
• US DOE/White House Community Solar Partnership
http://energy.gov/eere/solarpoweringamerica/national-community-solar-
partnership
• US DOE Solar Market Pathways
www.solarmarketpathways.org
• National Renewable Energy Laboratory
www.nrel.gov
• Shared Solar: Current Landscape, Market Potential, and the Impact of
Federal Securities Regulation
www.nrel.gov/docs/fy15osti/63892.pdf
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13. Thank you
Erica S. McConnell
Attorney, Shute, Mihaly & Weinberger LLP
mcconnell@smwlaw.com
Sara Baldwin Auck
IREC Regulatory Program Director
sarab@irecusa.org