The Working Group 3 Policy & Finance group has 17 members representing utilities, solar industry, government, consultants, universities, and banking. The group discusses 15 different policies over 2 monthly calls and identified 3 main policies to focus on: 1) Residential solar readiness ordinance and financial mechanisms, 2) Commercial energy financing districts and concerns over superior liens, and 3) Utility-scale transmission initiatives and establishing renewable firm zones to inventory underused natural gas plants and pair them with solar generation.

1. Working Group 3 Policy & Finance

2. Group Overview
• 17 members
• Representing
– Utilities, Solar Industry, Government,
Consultants, Universities, Banking etc.
• 2 calls per month
• 15 different Policies discussed by group
• 3 main policies identified

3. Group Vision
By creating and supporting innovative
approaches to policy and computational financial
development the Policy & Finance Working
Group will assist Arizona in becoming a
sustainable global leader in the Solar Energy
Industry.

4. Policy Breakdown
• Divided Policies into 3 sub-groups
– Residential, Commercial, Utility Scale
• Similar to Governor's Solar Taskforce
• Focused on deployment of Solar
• Policy included financial mechanisms
– Residential & Commercial

5. Residential
• Solar Readiness Ordinance
– Major burden of wide spread residential solar
development
– Requires all new residential to be “Solar Ready”
• Single-Family and Duplex
– Increase knowledge on a community basis of
ordinance
• Financial
– Decrease installation costs approximately 60%-66%

6. Commercial
• Energy Financing Districts (EFD’s)
– AKA Property Assessed Clean Energy (PACE)
• Current AZ Statutes set up for Special Taxing
Districts
• Financing
– Municipality’s issue bonds/other
– Decreases up front cost on property owner
– Can be used for Residential and Commercial
– Payback over time assessed with Property Tax

7. Commercial
COUTESY OF THE RENEWABLE AND APPROPRIATE ENERGY LABORATORY (RAEL) UNIVERSITY OF CALIFORNIA, BERKELEY

8. Commercial
• EDF (PACE) Concerns
– “Superior Lien”
• Banking Industry concern
• Need to work with Industry
• Looking for “Softer lien”
– But still keep financing low

9. Utility Scale
• Arizona Transmission Initiative
(ATI, AZTI…..AZIT)
• Exportation is key
– Therefore Transmission is Key
• California Load
– Much greater than AZ
• How to get there?

10. Utility Scale
• Race
– NV, NM, UT, WY, OR, all in the running
• AZ set itself apart
– Must differentiate benefits to CA
• Arizona Attributes
– Natural Gas Generation
– Solar Resource

11. Utility Scale
• Establishment of “Renewable Firm Zones” (RFZ’s)
– Inventory under-utilized Natural Gas Plants
– Establish solar generation in concert with gas capacity
– Increases reliability and balance
– Increases payback opportunity for Transmission
developers
• Recoup costs faster
• Less risk to financiers