IREC: Community renewables: best practices, issues & solutions

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Community Renewables: Best Practices: Issues & Solutions ASES National Solar Conference Phoenix, AZ May 19, 2010 1 Joseph F. Wiedman

description

Community solar financing models allow for increased participation in solar development among previously unaccessible sectors. This presentation features IREC's best practices review of community solar programs around the nation.

Transcript of IREC: Community renewables: best practices, issues & solutions

Page 1: 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

Page 2: IREC: Community renewables: best practices, issues & solutions

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

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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

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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

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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

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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

[email protected]

State policies and maps at www.dsireusa.org

IREC website: www.irecusa.org

Keyes & Fox LLP: www.keyesandfox.com

Thank You!