Center for the New Energy Economy 2019 Legislative Academy

Jeff Cramer, Executive Director

WHO ARE WE

The Coalition for Community Solar Access is a national Coalition of businesses and non-profits working to expand customer choice and access to solar for all American households and businesses through community solar.

Our MissionEmpower every American energy consumer with the option to choose local, clean, and affordable community solar. We work with customers, utilities, local stakeholders, and policymakers to develop and implement policies and best practices that ensure community solar programs provide a win, win for all, starting with the customer.

Community Solar, in the words of New York (NYSERDA)

HOW COMMUNITY SOLAR WORKS

WHAT IS COMMUNITY SOLAR

• Projects < 20 MW, but typically 2-5 MW, connected to the distribution system• Locally sited projects in your community• Multiple subscribers receive the energy output from a single generating facility• Participants receive a credit on their electric utility bill for a portion of the power produced

WHAT IS NOT COMMUNITY SOLAR

Utility-Scale Projects, typically 50+ MW connected to transmission system, help utilities diversify their energy portfolio but do not provide individuals and business direct access to the solar facility

Community Group Purchasing, sometimes called “Solarize” programs, utilize group purchasing power to provide rooftop solar solutions at lower costs.

Green Tariff Programs only provide subscribers the environmental attributes from solar facilities at a premium cost -- they do not share the energy output from the solar facility and do not save subscribers money.

WHY COMMUNITY SOLAR?IT’S EASY AND FELXIBLE: Customers choose how much they want, and when they want it• Community solar allows individuals to choose how much solar energy they receive.• It provides individuals the ability to make the decision to access solar energy, even if their utility isn’t supportive.

PROVIDES ACCESS TO CLEAN ENERGY ALL CUSTOMERS• Onsite solar isn’t an option for a lot of people or businesses. Community solar expands that ability to choose solar

to anyone or organization with an electric bill.• Underserved communities often bare the brunt of the least reliable and highest polluting parts of the electricity

system. Community solar enables these communities to make the choice to go solar themselves.

BENEFITS THE GRID AND THE ENVIRONMENT • Centrally planned, economies of scale over onsite, and distribution benefits of DERs = good for customers and

utilities• Zero fuel cost and zero emissions

PROVIDES LOCAL ECONOMIC BENEFITS• Individual subscribers save money on their electricity bills.• Projects spur private investment in the local economy.• Projects generate ongoing tax revenue.

THE PROBLEM: A MAJORITY OF CUSTOMERS DO NOT HAVE ACCESS TO ROOFTOP SOLAR

Source: GTM Research Wood Mackenzie, GTM Research/SEIA, NREL, EIA, U.S. Census

Community Solar Can Reach All Potential U.S. Customers

OUR VISION OF THE FUTURE GRID

• A decentralized, cleaner approach to electricity

generation

• A more diverse resource mix, located locally

• Grid resiliency • Access to clean energy for ALL

U.S. COMMUNITY SOLAR THROUGH 2030: MARKET POTENTIAL

Evolution of the Community Solar Model

• Bigger projects. • 100 – 1,000 kW to 2 and 5 mW projects (~3-5 acres per MW).• Located on the distribution system.

• Lower to zero upfront costs.• Customers originally paid high upfront $ per kW of capacity.• Now subscriptions with 1 year contracts, zero down, and guaranteed % off retail

rate offered, increasing access to solar to all. • Community solar costs have come down with scale, innovation, and experience.

• Community solar pairing with new innovative technologies and programs.• Increase in project applications paired with storage.• Development of community solar programs that fir within larger distribution

system and resource planning.

NREL | 12

Statewide Community Solar Policy

Active Statewide Community Solar Policy – Passed or in development

DC

• 19 states and DC have some kind of enabling policy or community solar mandate.

• 80% of the community solar capacity has been developed in a state with an enabling policy or mandate.

• Community solar projects can also be implemented voluntarily by utilities in states without enabling policies or mandates. • For example, Ameren

(Missouri) received approval to launch a 1 MW community solar program.

Note: See appendix for state references.

National Renewable Energy Laboratory 2019

NREL | 13

SB 1393; Code § 56-585.1:3

Community Solar pilot program. Requiring each investor-owned utility to design a community solar program

Statewide Community Solar Policy

216B.1641

Xcel Energy’s

Community Solar

Garden Program

The Missouri Public Service Commission approved investor-owned utility community solar program

SB 43

Green Tariff Shared Renewables (GTSR) Program

HOUSE BILL 10-1342

Solar Gardens Act for investor-owned utility and corporates

Shared Clean Energy Facility Pilot Program

Active Statewide Community Solar Policy

Order 35560

Community-Based Renewable Energy Program

SB1547

Community Solar Projects

RCW 82.16.110

Renewable energy system cost recovery incentives

Community Net Metering Provisions

SB 928

Community solar program for low-income

Future Energy Jobs Act

Adjustable Block Program

Community-based Renewable Energy Pilot Program

Community Solar Pilot Program

Solar Massachusetts Renewable Target (SMART) Program

Group Net Metering

House Bill 531 (proposed) Community Solar

Renewable Energy Programs

Net Metering Amendment

Community Renewable Energy Amendment Act of 2013

DC

Community Solar NY

National Renewable Energy Laboratory 2019

NREL | 14

Community Solar Activity in Select States

Jun Jan Feb Mar Apr2018 2019

CaliforniaD.18-06-027CPUC adopted three new programs, including a community solar program.

MinnesotaDocket E-002/M-13-867 The PUC approved an additional compensation adder for residential subscribers of 1.5 cents/kwh

New YorkNYSERDANYSERDA approved nine LI community solar projects.

N.J.A.C.14:8-9The BPU approved a three-year community solar pilot program

New Jersey FloridaFlorida Power & LightFlorida Power & Light files for approval of 1,490 MW of community solar (20 projects)

Adjustable Block ProgramThe Illinois Power Agency selected 215 MW of community solar projects for incentives, with more than 1,500 MW of projects on the waiting list

Illinois

New YorkOrder Regarding Value Stack Compensation

NYSERDA approved changes to VDER to include “community credit”

CaliforniaSouthern California Edison (SCE) PetitionSCE petitioned the CPUC to approve a community solar program that would replace the existing Green Tariff / Shared Renewables Program (GTSR) by 2021

National Renewable Energy Laboratory 2019

NREL | 15

Community Solar Capacity Updates

Data Source: U.S. Solar Market Insights 2018 Year-in-Review (GTM)

• By the end of 2018, over 1.4 GWdc of community solar were installed.

• While growing, community solar represents a relatively small share of total U.S. solar capacity.

• As of end 2018, community solar represented 2% of cumulative installed PV capacity

� 1.4 GW/64 GW

• In 2018, community solar represented 5% of annual installed PV capacity

� 0.5 GW/10.6 GW

Community Solar Capacity Installed in the U.S. (MWdc)

National Renewable Energy Laboratory 2019

NREL | 16

Minnesota’s Market is the Largest; Has Significant Capacity in Queue

• Minnesota leads community solar deployment in the U.S., and ranked 1st in terms of cumulative installed community solar capacity by end of 2018

� Over 500MWac in operation

• Xcel contributed to the majority of community solar deployment in Minnesota

� 390 MWac in queue

Community Solar Capacity Installed in Minnesota (MWac)

Data Source: 2018 ANNUAL REPORT COMMUNITY SOLAR GARDENS PROGRAM DOCKET NO. E002/M-13-86. The planned status includes in construction, in study analysis and in application stage. The solid blue represents the cumulative rated AC power output (MW) for community solar in operation by corresponding year in MN. The semi-transparent blue represent capacity in queue

National Renewable Energy Laboratory 2019

How Does Community Solar Work in Minnesota?

NREL | 18

Massachusetts in Transition to SMART Program

• By March 2019, over 200 MW of community solar projects in operation � 539 MWac planned (523 MWac for

Community Shared projects, 16 MWac for Low Income projects)

• Y/Y growth from 2017 to 2018 slowed down as the state is transitioning from the RPS Solar Carve-Out II program to the Solar Massachusetts Renewable Target (SMART) Program.

Community Solar Capacity Installed in Massachusetts (MW)

Data Source: MA RPS Solar Carve-Out II Renewable Generation Units; Solar Massachusetts Renewable Target (SMART)2019 Mar(O/P): Operational and Planned by 2019 March. The planned status includes approval/pending/under-constructionThe solid colors represent the cumulative nameplate capacity/AC output (MW) for community solar in operation by corresponding year in MA. The semi-transparent colors represent the nameplate capacity/AC output (MW) of planned community solar projects.

Unit for RPS Solar Carve-Out II is MW (nameplate capacity); SMART is MWac

National Renewable Energy Laboratory 2019

NREL | 19

Pairing Community Solar with Storage in Massachusetts

• SMART program at a glance:� 2 community solar components:

o 1) community shared and 2) low income community shared

� added incentive for projects paired with battery storage

• 16 MWac low income community shared projects are planned under SMART

• 523 MWac community shared projects are planned under SMART� 184 MW with battery storage (47 projects)

SMART Community Solar in Massachusetts (MWac)

Data Source: Solar Massachusetts Renewable Target (SMART)

National Renewable Energy Laboratory 2019

NREL | 20

New York has Little Community Solar to Date, but Large Pipeline

• As of March 2019, ~65 MW of community solar projects were operational.

� The New York State Energy Research and Development Authority (NYSERDA) has an ambitious community solar plan.

• The community solar pipeline in New York is nearly 900 MW.

Community Solar Capacity Installed in New York (MWdc)

Data Source: New York Community Solar DashboardThe planned status includes approved, pending approved, received and submittedThe solid blue represents the cumulative nameplate capacity (MWdc) for community solar in operation by March 2019 in NY. The semi-transparent blue represent the nameplate capacity (MWdc) of planned community solar projects.

National Renewable Energy Laboratory 2019

NREL | 21

Colorado Market Grows but Installs are Capped

• By Feb 2019, over 45 MW of community solar projects in operation with more than 60 MW planned

• The Solar*Reward Community program enables solar gardens ranging in size from 10.1 kW to 2 MW

Community Solar Capacity Installed in Colorado (MWdc)

Data Source: For 2013-2017 data: Solar*Rewards Community Dashboard Q2 2018; For 2018/2019 operational project: EIA Generator Inventory Feb 2019; For planned project: CO SRC Public Queue (Feb 2019 Updates)2019 Feb (O/P): Operational and Planned by 2019 Feb. The planned status includes approval/pending/under-constructionThe solid blue represents the cumulative nameplate capacity (MWdc) for community solar in operation by corresponding year in CO. The semi-transparent blue represent the nameplate capacity (MWdc) of planned community solar projects.

National Renewable Energy Laboratory 2019

NREL | 22

More than 1,500 MW of Community Solar Waitlisted in Illinois

• By the end of 2018, less than 1 MW of community solar in operation

• The lottery for projects to receive an incentive via the Illinois Power Agency’s Adjustable Block Program resulted in more than 200 MW of community solar

• An additional ~1,500 MW of community solar was not selected in the lottery process.

Community Solar Capacity Installed in Illinois (MWac)

Data Source: For community solar projects in operation: U.S. Solar Market Insights 2018 Year-in-Review (GTM); for planned community solar: Illinois Power Agency Adjustable Block Program Lottery ResultsThe planned status in this figure represents community solar projects accepted through the lotteryThe solid blue represents the cumulative nameplate capacity (MWac) for solar gardens in operation by 2018 in IL. The semi-transparent blue represent the nameplate capacity (MWac) of planned solar gardens.

Group A and B are divided based on utility territories

National Renewable Energy Laboratory 2019

WHY ISN’T COMMUNITY SOLAR EVERYWHERE?

One-Off Programs (1-5)

Policy-Enabled Market

One-Off Programs (5+)

WHY ISN’T COMMUNITY SOLAR EVERYWHERE?

Two Ways to Enable Community Solar:

1. Utility-Led: IOU program approved by Public Utility Commission, or approved by town council or Board of Muni or Coop

2. Statewide REQUIRING Enabling Legislation

CCSA CORE PRINCIPALS

We promote policies, programs, and practices that:

GUIDANCE FOR NEW PROGRAM DESIGN

Created to walk policymakers through important questions, grouped into five categories, which should be addressed when designing new community solar programs.

The decision matrix provides CCSA’s recommendation for what works best, based on our members’ experiences working across the country.

Provides our rationale for each recommendation, example language to aid in drafting policies, and other important issues to consider.

Community Solar Policy Recommendations:1. Program Structure2. Compensation3. Consumer Participation4. Project Sizing and Siting5. Low- and Moderate-Income Considerations

MODEL LEGISLATION

QUESTIONS?THANK YOU!

JEFF@COMMUNITYSOLARACCESS.ORG