IREC: Community renewables: best practices, issues & solutions
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Transcript of IREC: Community renewables: best practices, issues & solutions
Community Renewables: Best Practices: Issues & Solutions
ASES National Solar Conference Phoenix, AZ
May 19, 2010
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Joseph F. Wiedman
IREC • 501(c)(3) non-profit working to expand opportunities for
the sustainable development of renewable energy • Current projects:
– Net metering rules and Interconnection standards – Third-party ownership of renewable energy resources – Community renewable power policies – Smart Grid, vehicle electrification, and integration of storage – Workforce training and development for the renewables industry
• Represented by Keyes & Fox, LLP
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Community Renewable Power • Current status in most states - Single system serves a single onsite
participant – Excess generation is net metered for participant’s benefit
• Community Renewables - Single system serves multiple participant(s) – Policies used to distribute benefits:
• Meter Aggregation • Joint Billing • Virtual Net Metering • Community Ownership • Utility Ownership
– Not addressing • Joint purchasing programs, e.g. Portland, 1BOG
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Meter Aggregation
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• One customer • Load and
generation are not on same meter
• Load and generation are on contiguous property
• Cost to run new line = $600,000
Customer’s best sites for PV
Customer’s energy load
Joint Billing/Virtual Net Metering
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• Multiple tenants • Single System • System is
located onsite • Each tenant has
a separate meter • Cost of
rewiring to put in master meter = $60,000
Multiple Tenants
Single System
Joint Billing/Virtual Net Metering
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• Multiple home owners / renters
• Single System • System is offsite • Shading, tenent
status, structural issues limits onsite generation
Ideal locations for a single large PV system
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Policy Approach
States Number of Participants
Distance between generation and participants
Administration
Meter Aggregation
OR, PA, RI, WA, CA
*APS in AZ *Xcel in CO
One participant
• OR, RI, WA – within the service territory of an electric utility • PA – located within two miles of the generation source • CA – on government property within geographic boundaries of local government and within same utility service territory
Utility applies bill credits to designated accounts
Joint Billing VT Multiple participants
• VT – within the service territory of an electric utility
Utility issues a joint bill and customer representative bills participants
Virtual Net Metering
CA, MA, ME, RI
Multiple participants
• CA – on low-income, multitenant property • ME, MA, RI – within the service territory of an electric utility
Utility applies bill credits to designated accounts
Community Ownership
ME, WA Multiple investors
• ME – requires minimum 51% ownership by in-state interests. Systems receive either (i) 150% REC credit, or (ii) long term power sale contract with utility • WA –incentive program for jointly-owned systems providing retail power
Investors administer payment and incentives
Utility Offerings • Typically local utility invests in a solar energy system and sells
shares to members • Net metering credits are available either as a share of production or
as a fixed amount using virtual net metering • Current status: Ashland, Oregon; Ellensburg, Washington;
Sacramento Municipal Utility District, Sacramento, CA; St. George, Utah; Florida Keys Electric Cooperative, Marathon, FL offer programs
• Benefits: system economics can come close to mirroring onsite economics
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States with statewide community renewable power programs
9 States currently have
state-wide community renewables
activity
Community Renewables in the States
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States with active proposals
States where nearly all utilities have programs
Overview of IREC’s Community Renewable Power Concept Proposal
• Guiding principles: – Participants should have an experience as close as possible to
investing in an onsite system – Community renewables should be additive to successful onsite
renweables programs • Current Proposal
– Allocation of benefits => virtual net metering – Administration of credits => utility administration – Financing options => direct ownership, third-party ownership,
community ownership and utility ownership allowed – Compensation for wheeling => compensation for wheeling is
heavily dependant on rate design and the structure of overall program 10
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IREC Resources
Assistance to Commissions and other stakeholders in developing community renewables programs – please contact
State policies and maps at www.dsireusa.org
IREC website: www.irecusa.org
Keyes & Fox LLP: www.keyesandfox.com
Thank You!