Pursuing Economic Development through Local Government Solar Programs and Policy.

Pursuing Economic Development through Local Government Solar

Programs and Policy

NC Clean Energy Technology Center

[email protected]

Autumn Proudlove

The Solar [email protected]

Alex Winn

The SunShot Solar Outreach Partnership (SolarOPs) is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the US.

About the SunShot Solar Outreach Partnership

Increase installed capacity of solar electricity in U.S. communities

Streamline and standardize permitting and interconnection processes

Improve planning and zoning codes/regulations for solar electric technologies

Increase access to solar financing options

About the SunShot Solar Outreach Partnership

We want to get to know you better

Program Overview and Local Policy Context

Soft Costs and Local Impacts

Break

Soft Cost Reduction Strategies

Policy and Program Recommendations

Lunch and Local Speaker Panel

Discussion and Next Steps

Agenda

09:15 – 09:55

09:55 – 10:25

10:25 – 10:40

10:40 – 11:40

11:40 – 12:25

12:25 – 1:10

1:10 – 2:00

8

Solar Technologies

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

9

Solar Technologies

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

Some Basic Terminology

Panel / Module

Cell


Array

e-e-


Capacity / Powerkilowatt (kW)

ProductionKilowatt-hour (kWh)

e-


Residence5 kW

Office50 – 500 kW

Factory1 MW+

Utility2 MW+

Solar Economic Growth

Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report http://www.seia.org/research-resources/us-solar-market-insight

14

2006 2007 2008 2009 2010 2011 2012 2013$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

~40% CAGR

http://www.seia.org/research-resources/us-solar-market-insight

15

Solar Job Growth

Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census (2010-2013)

2006 2007 2008 2009 2010 2011 2012 2013 2014 (est.)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000Solar Job Growth in the US

SEIA Estimates

The Solar Foundation

16

Job Creation

Sources: Interstate Renewable Energy Council, The Solar Foundation, Meister Consultants Group

0 500 1000 1500 2000 2500 30000

10,000

20,000

30,000

40,000

50,000Correlation of Market Size & Jobs in Each

State

Cumulative Installed Capacity (MW)

Num

ber

of

Sola

r Jo

bs 90%

Correlation

42 Jobs and $4.9

Million

The Local Economic Opportunity

Source: JEDI Model, NREL

In economic output

1 Megawatt of Residential Solar Development in Michigan:

176 solar companiesthat employ

2,700 people

Economic Development in Michigan

Source: SEIA, The Solar Foundation

There are currently

Economic Development in Michigan

Source: SEIA “National Solar Database”

20

Price Stability

Source: ISO New England, Inc.

Mar-

03

Jul-03

Nov-

03

Mar-

04

Jul-04

Nov-

04

Mar-

05

Jul-05

Nov-

05

Mar-

06

Jul-06

Nov-

06

Mar-

07

Jul-07

Nov-

07

Mar-

08

Jul-08

Nov-

08

Mar-

09

Jul-09

Nov-

09

Mar-

10

Jul-10

Nov-

10

Mar-

11

Jul-11

Nov-

11

Mar-

12

Jul-12

Nov-

12

Mar-

13

Jul-13

Nov-

13

0.00

20.00

40.00

60.00

80.00

100.00

120.00Boston Area Historic Average Wholesale Electricity

Price

Date

$/M

Wh

.

21

Valuable to Community & Utilities

Source: Rocky Mountain Institute (http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf)

http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf

http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf

1 kW 3 kW 8 kW$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

$40,000.00

$45,000.00

$50,000.00

Average Home Value Premium for Solar PV Systems in California

Smart Investment for Homeowners

Source: LBNL, Exploring California PV Home Premiums (2013)

$8,892

$20,714

$47,312

Smart Investment for Businesses

Source: Solar Energy Industries Association

Walmart

Kohl's

Ikea

Johnson and Johnson

Staples

U.S. Foods

Kaiser Permanente

Walgreen's

Safeway

Intel

General Motors

White Rose Foods

0 10 20 30 40 50 60 70 80 90 100

Top 20 Companies by Solar Capacity

Solar Capacity (MW)

445 megawatts deployed as of August 2013 – enough to power 73,400 homes

http://www.seia.org/news/new-research-top-20-commercial-solar-users-us-includes-iconic-american-brands

24

Smart Investment for Governments

Source: Borrego Solar

Smart Investment for Schools

Source: The Solar Foundation (http://schools.tsfcensus.org)

Current:

+ 3,752

+ 40,000 – 72,000

Potential:

$

$

= $77.8m

$800m=

http://schools.tsfcensus.org/

Michigan Solar Market

Source: SEIA/GTM Research, Solar Market Insight

20072008

20092010

20112012

2013

0

5

10

15

20

25

Cumulative Installed Capacity

MW

dc

~22 Megawatts

Enough to power approx.

2,200 MI homes

Installed Capacity by ZIP Code

Source: NREL Open PV

Installed Capacity by ZIP Code

Detroit/ Ann Arbor

Grand Rapids/ Muskegon

Traverse City

California

New Jerse

y

Massach

usetts

Colorado

New Mexic

oTexa

s

Maryland

Georgia

Connecticu

t

Delaware

Indiana

Louisi

ana

Vermont

Wash

ington

Michigan

Utah

Virginia

South Carolina

Rhode Island

Iowa

West

Virginia

Arkansa

s

Kansas

Wyo

ming

Nebraska

North Dako

ta0

1000

2000

3000

4000

5000

6000

Installed Capacity by State (MW) 2013

US Solar Market

Source: IREC, Solar Market Trends 2013

0.2% of US capacity

World Solar Market

Source: REN 21

Germany26 %

USA 8.6%

~8.5% of World Total

31

US Solar Resource

Source: National Renewable Energy Laboratory

The Cost of Solar PV

Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL); Solar Energy Industries Association Solar Market Insight Q2 2014

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

2014

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

US Average Installed Cost for Behind-the-Meter PV

Cost

per

Watt

DC

44% drop in price

since 2010

The Cost of Solar in the US

Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf) LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(

http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )

US Solar Cost German Solar Cost $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00 Comparison of US and German Solar Costs

Non-Hardware CostTotal Installed Cost

$ p

er

Watt

http://www.nrel.gov/docs/fy14osti/60412.pdf

http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf

http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf





$1.00

$2.00

$3.00

$4.00

$5.00


Non-Hardware CostHardware Cost

$ p

er

Watt





$1.00

$2.00

$3.00

$4.00

$5.00


Column1Non-Hardware CostHardware Cost

$ p

er

Watt


Profits, Taxes, &

Overhead







$1.00

$2.00

$3.00

$4.00

$5.00


Column1Non-Hardware CostHardware Cost

$ p

er

Watt


$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Other Paperwork

Permitting & Inspection

Financing Costs

Customer Acqui-sition

Installation Labor

$ pe

r Watt

Solar Soft Costs







2010 2012 2014 2016 2018 2020 $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Change in Soft Costs and Hardware Costs Over Time

Soft CostsHardware Costs

$/w

att

$3

.32

$3

.32

$3

.28

$1

.90

No change in soft costs

between 2010 and 2012

Session GoalTo discuss previously identified and new strategies for enhancing economic development, job creation, and energy customer benefits through solar deployment.

Federal Investment Tax Credit

Accelerated Depreciation

Qualified Energy Conservation

Bond

State & Utility

Renewable Portfolio Standard

Net Metering

Interconnection

A Policy Driven Market

State&

Utility




Bond


Net Metering

Interconnection


State&

Utility

Type: Tax Credit

Eligibility: For-Profit Organization

Value: 30% of the installation cost

Availability: Through 2016

Investment Tax Credit


0 2 4 6 8 10 12 14 16 18 20 22 240%

20%

40%

60%

80%

100%

Modified Accelerated Cost-Recovery System (MACRS)

Straight Line50% Bonus (2013)MACRS (2014+)

Year

Proj

ect V

alue

+ 3.7%

+ 2.3%

$

Qualified Energy Conservation Bond

US Treasury Local Gov

Bond Holders

Project

QECB

Qualified Energy Conservation Bond

Source: Energy Programs Consortium (June 2014)

Local Government Amount Use

Saginaw County $2,088,779 Efficiency improvements to county facilities

Osceola County $650,000 Efficiency improvements to county annex bldg.

Genesee County $4,515,976 EECBG

City of Greenville $800,000

Ottawa County $2,825,981

Total Used $10,880,736

Total Remaining $92,899,264




Bond

State & Utility


Net Metering

Interconnection


State&

Utility


Retail Electricity Sales

Any electricity source

Renewable

Energy


Retail Electricity Sales


Solar carve-out

Renewable

Energy

$e- $

$e-

REC


Utility

Fossil Fuel

Renewable Energy

Two revenue streams

Michigan RPS

Source: DSIRE

2015 Retail Electricity Sales

Re-quired10%*


Wind94%

Solar 2%

Other4%

29 states,+ Washington DC and 2 territories,have

Renewable Portfolio Standards

(8 states and 2 territories have

renewable portfolio goals).

www.dsireusa.org / August 2012.





Bond

State & Utility


Net Metering

Interconnection


State&

Utility

Net metering allows customers to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage.

Net Metering

Net Metering

12 AM2 AM

4 AM6 AM

8 AM10 AM

12 PM2 PM

4 PM6 PM

8 PM10 PM

0.0

0.5

1.0

1.5

Consumption and Generation in a Solar Home

Household Consumption Solar Generation

kWh/

hour

Net Metering: Market Share

Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)

More than 93% of distributed PV Installations are net-metered

http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf

Net Metering

Source: DSIRE (July 2013)

43 states,+ Washington DC and 4 territories,have Net Metering Policies

Provides a “report card” for state policy on net metering and interconnection

http://freeingthegrid.org/

Net Metering: Resources

Resource

Freeing the Grid

Net Metering: Michigan

Source: Freeing the Grid

Net Excess Credit ValueRetail Rate (<20 kW)Power Rate (>20 kW

System Capacity Limit150 kW

Aggregate Limit0.75% of peak load

Credit RolloverIndefinite

B 2007 2008 2009 2010 2011 2012 2013

D F B A A B B B

2014




Bond

State & Utility


Net Metering

Interconnection


State&

Utility

Standardized interconnection rules require utilities to provide a fair and transparent pathway for customer-generators and other developers of distributed energy resources to interconnect with the utility’s grid.

Interconnection

Interconnection: Michigan

Source: Freeing the Grid

Applicable TechnologiesIncludes solar PV, as well as other distributed generation technologiesSystem Capacity LimitNo limit specified

BonusInsurance waived for generators up to 25 kW; dispute resolution process

Applicable UtilitiesIOUs, electric co-ops

2007 2008 2009 2010 2011 2012 2013

D D C C C B C C

2014C




Bond

State & Utility


Net Metering

Interconnection


State&

Utility

Solar Access

Source: Google Earth

A landowner does not have any legal right to the free flow of light and air across the adjoining land of his neighbor.

Fontainebleau Hotel

Eden Roc Hotel

Solar Access Laws:

1. Increase the likelihood that properties will receive sunlight

2. Protect the rights of property owners to install solar

3. Reduce the risk that systems will be shaded after installation

Solar Access

Solar Access

Source: Database of State Incentives for Renewables & Efficiency (www.dsireusa.org)

Solar Easements Provision

Solar Rights Provision

Solar Easements and Solar Rights Provisions

U.S. Virgin Islands

DC

Local option to create solar rights provision

A comprehensive review of solar access law in the US – Suggested standards for a model ordinance

www.solarabcs.org

Solar Access

Resource

Solar America Board for Codes & Standards



Break





Agenda

09:15 – 09:55

09:55 – 10:25

10:25 – 10:40

10:40 – 11:40

11:40 – 12:25

12:25 – 1:10

1:10 – 2:00

1. What is the status of Detroit’s solar policy, and how does this affect the value of solar to customers?

2. How would different soft cost-cutting policy actions affect the value of solar to customers?

Soft Costs & Local Impacts

High upfront c

ost

Lack

of educa

tion

Lack

of policy

support

Lack

of utility

support

Private

interests

Lack

of HOA su

pport

Historic

preserv

ation

Reliabilit

y conce

rns

Envir

onmental

impact

Other

0% 0% 0% 0% 0%0%0%0%0%0%

What are the top 3 barriers to solar adoption in Detroit?

A. High upfront costB. Lack of educationC. Lack of policy supportD. Lack of utility supportE. Private interestsF. Lack of HOA supportG. Historic preservationH. Reliability concernsI. Environmental impactJ. Other

Most policies that impact soft costs are controlled at the local level

– Permitting & Inspections

– City Planning/Zoning– Solar Access Rules (municipal &

community association level)

– Financing Options

Solar Policy in Detroit

Homeowners wishing to install solar must obtain building & electrical permits from the municipal government


Source: IREC Efficient Solar Permitting Presentation- Centralina (2014)

Pre-Application (accessing

requirements & info on process)

Application Submittal (forms & fees) &

Review

Inspection

Why is this important?– Adds cost & time to solar installation– City resources could be spent elsewhere– Creates uncertainty for installers


Source: Sun Run Report: http://www.sunrunhome.com/solar-lease/cost-of-solar/local-permitting/

Local permitting and inspection add an average of about $0.50 per watt, or $2,516 per residential install!

Permit forms posted onlineChecklist for building permits and

planso No checklist for solar permit

requirements o Solar permit requirements are

currently unclear and difficult to findo No special or expedited permitting

procedure is apparent for solaro Expedited plan review request is

subject to additional fees

Permitting & Inspection: Detroit


Source: City of Detroit website

From the City of Detroit’s website:



Taken from Detroit’s electrical permit application:



Electrical Permit Fee: $225 (grid-connected PV system)

Planning & Zoning: Solar Access

Source: Database of State Incentives for Renewables & Efficiency (www.dsireusa.org)

Solar Easements Provision

Solar Rights Provision

Solar Easements and Solar Rights Provisions

U.S. Virgin Islands

DC

Local option to create solar rights provision

Detroit Zoning Ordinance (2012) mentions solar 4 times– 3 out of 4 times vaguely refer to solar

PV:

Planning & Zoning

Source: Detroit Zoning Ordinance: http://www.detroitmi.gov/portals/0/docs/legislative/cpc/pdf/Ch%2061%20Nov%2021,%202012.pdf (2012)

“Careful consideration should be given to orientation for solar access to both the proposed project and surrounding development”

Financing options allow more people to choose solar by providing options for those who don’t have the cash to pay for a system out of pocket

Financing

Source: NREL, Benchmarking Non-Hardware Balance-of-System (Soft) Costs for U.S. Photovoltaic Systems, Using a Bottom-Up Approach and Installer Survey- Second Edition (Oct. 2013)Source: U.S. Census Bureau QuickFacts

Median Household Income (2008-2012)Detroit United

States $26,955 $48,471 $53,046

Michigan

Detroit’s median income is $26,091 below the national median- financing is particularly important

Loans– Home equity loans– Unsecured loans

PACE (Property Assessed Clean Energy)

Third Party Ownership– Leases– Power Purchase Agreements (PPAs)

Types of Financing Options

Michigan Saves Home Energy Loan Program

Offers loans for $1,000 to $30,000 for energy efficiency improvements, as well as solar installations– Available to residential customers– Term lengths of 12 to 120 months– APR no higher than 7%

Financing: Michigan Saves

Source: Database of State Incentives for Renewables and Efficiency (DSIRE)

Financing Offered in Wayne County through Michigan Saves: Ascentium Captial- Business, Multi-Family,

& Public Sector financing Genisys Credit Union- Residential

financing; 4.99% interest rate MSU Federal Credit Union- 4.99% interest

rate Opportunity Resource Fund- Serves

customers previously denied; 6.00%-9.00% interest rate

Financing: Michigan Saves

Michigan signed PACE legislation in Dec. 2010 Detroit has a PACE financing program through Lean and Green Michigan Open to owners of commercial,

industrial, and multi-family properties Typically no down payment

Financing: PACE

Benefits

No upfront cost

No O&M costs

Low risk

Predictable

payments

Drawbacks

Investor needs higher

ROI

Not available in all

states

Financing: Third Party Ownership

Source: DSIRE (map)

Financing: Third Party PPAs

Source: Database of State Incentives for Renewables and Efficiency (DSIRE)

U.S. National Average Residential Electricity Rate= 11.9 cents/kWh

DTE Energy Residential Service Rate (D1)– 11.915 cents/kWh for the first 17 kWh

per day– 13.260 cents/kWh for all kWh above 17

kWh per day– PLUS rate riders and monthly service

charge of $6.00

Electricity Rates in Detroit

Source: U.S. Energy Information Administration Form 861; DTE Energy Rate Book

Electricity rates in Detroit are higher

than the national average

Electricity rates are projected to increase 48% in Detroit over the

next 25 years…

Solar’s Financial Value

Source: U.S. Energy Information Administration – Annual Energy Outlook 2014

1998

2000

2002

2004

2006

2008

2010

2012

$0

$2

$4

$6

$8

$10

$12

$14

Cost

per

Watt

…while the cost of solar continues to decline

Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL)

Analysis based on a 5 kW rooftop system– (nat. avg. is 5.3 kW- rounded down to 5)

System located in Detroit- DTE Energy territory

Cost is based on a Q3 2014 regional average (Midwest)*

Typical energy usage patterns (NREL data)

NREL System Advisor Model (SAM)

Solar’s Financial Value

*Data provided by EnergySage

Disclaimer: Values will vary significantly based on household energy usage patterns, system location, etc.

Avg. Monthly Bill Savings (First Yr):

$80.68

First Year Bill Savings: $968.12

Avg. Annual Bill Savings Over 25 Yrs:

$1642

Levelized Cost of Energy (LCOE)– Cash purchase: 19.0 cents/kWh– Fully financed: 10.8 cents/kWh

Solar’s Financial Value: Today

Net Present Value as compared to an investment in stocks (S&P 500)--- 6.61% discount rate– Cash purchase: -$549.43– Fully financed: $5,408.35

After Tax Cash Flow (Total Net Income)– Cash purchase: $26,417– Fully financed: $11,934

After Tax Net Equity Cost Flow (Total Costs-- does not include value of energy produced)– Cash purchase: -$14,644– Fully financed: -$29,126

Solar’s Financial Value: Today

Impact of reducing soft costs by $0.64 cents/Watt*


Net Present Value as compared to an investment in stocks (S&P 500)– Cash purchase: $1,911.34– Fully financed: $6,789.36

Impact of Cutting Soft Costs

*Figure chosen from LBNL report (How Much Do Local Regulations Matter?) stating impact of soft costs ranges from $0.64-$0.93/W



Impact of Cutting Soft Costs

Impact of a 20% discount on total system cost


Net Present Value as compared to an investment in stocks (S&P 500)– Cash purchase: $2,295.84– Fully financed: $7,005.14

Impact of a Solarize Program



Impact of a Solarize Program



Break





Agenda

09:15 – 09:55

09:55 – 10:25

10:25 – 10:40

10:40 – 11:40

11:40 – 12:25

12:25 – 1:10

1:10 – 2:00

Local Policy

Planning for Solar

Solar in Development Regulation

Effective Local Solar Policy

Local Solar Policy

Neighborhood Plans

Corridor Plans

Special District Plans

Green Infrastructur

e Plans

Planning for Solar Development

Source: American Planning Association

Communitywide Comprehensive Plan

Detroit Master Plan of Policies (2009)

Citywide Policies: Environment and Energy

The City’s central location among the Great Lakes necessitates sound environmental policy. Current environmental trends require new directions in local policy that will help sustain our vital ecosystem and insure a high quality of life for all residents. Environmental and energy considerations transcend political boundaries and require regional cooperation…

Existing Goals

Environment and EnergyGoal 2: Ensure Environmentally Healthy NeighborhoodsGoal 3: Minimize Resource Use and Waste

Policy 3.1: Promote the use of renewable and/or

sustainable resources

Policy 3.4: Provide incentives to attract green industry and to encourage retooling of existing

industries to incorporate sustainable practices.Goal 5: Improve Air Quality

Health and Social ServicesGoal 4: Reduce Health Risks for Young Children

Existing Goals: Citywide

Environment and Energy“Attract industries that emphasize

pollution minimizing technology and research.”

Cluster 4Middle East CentralUpper East Central

Cluster 5SpringwellsWest Riverfront

Existing Goals: Neighborhoods

A guide for planners on determining and implementing local solar goals, objectives, policies, and actions

www.planning.org

Resource

Planning for Solar Energy

Technical Resources

Local Policy

Planning for Solar



Local Solar Policy

Zoning Standards

Source: American Planning Association

Section Topics to Address

DefinitionsDefine technologies & terms

Applicability Primary vs. accessory use

Dimensional Standards

• Height• Size

• Setbacks• Lot coverage

Design Standards• Signage• Disconnect

• Screening• Fencing

Typical Requirements:

Permitted as accessory use

Minimize visibility if feasible

Requirements:– District height– Lot coverage– Setback

Zoning Standards: Small Solar


Allowed for primary use in limited locations

Requirements:– Height limits– Lot coverage– Setback – Fencing and Enclosure

Zoning Standards: Large Solar

Zoning Standards: Model Ordinances

Resource

American Planning Association

Bethany Beach, Town of. 2010. Ordinance no. 455: An Ordinance to Add A New Chapter 484 “Solar Energy Systems” To the Town Code of Bethany Beach.

Allows solar energy systems for on-site energy use as permitted accessory uses in all zoning districts. Encourages rooftop panels on side and back roof slopes rather than ground-mounted systems. Commercial solar energy installations are prohibited.

https://www.planning.org/pas/infopackets/open/pdf/30intro.pdf




Prevent permanent loss of “character defining” features

Possible design

requirements– Ground mounted– Flat roof with setback– Panels flush with roof– Blend color

Zoning Standards: Historic

Source: SolarCentury

Zoning Standards: Historic

Resource

North Carolina Clean Energy Technology Center

Provides sample design principles and example regulations incorporating historic preservation into sustainability and energy projects.

www.solaroutreach.org

http://www.solaroutreach.org/

Private Rules on Residential Solar

Resource

The Solar Foundation

Guide for HOAs on solar access law and simple recommendations for reducing barriers to solar in association-governed communities.


http://www.solaroutreach.org/

Provide clear, unambiguous design guidelines

Post rules and requirements online

Provide a list of all required documents

Waive design rules that significantly increase cost or decrease performance

Allow exceptions from tree removal rules for solar

Solar in HOAs: Best Practices

116

Installation Soft Costs

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Other Paperwork


Financing Costs

Customer Acquisition

Installation Labor

$ pe

r Watt

$0.55Per watt

Solar Ready Construction:Preparing a building for solar at the outset can help make future solar installations easier and more cost effective.

Update Building Code

Require builders to:

Minimize rooftop equipment

Plan for structure orientation to avoid shading

Install a roof that will support the load of a

solar array

Record roof specifications on drawings

Plan for wiring and inverter placement


During Construction After Construction $-

$1,000

$2,000

$3,000

$4,000

$5,000

LaborEquipment


Source: Solar Ready: An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011.

60% Savingswhen a building is

solar ready

120Source: NREL (http://www.nrel.gov/docs/fy13osti/59155.pdf)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

Current Trajectory Roadmap Target

Ad

ded

Cost

Per

Watt

Installation Labor Roadmap


Local Policy

Planning for Solar



Local Solar Policy

18,000+ local jurisdictions

with unique zoning and permitting requirements

Challenge: Inconsistency

Source: http://www.nrel.gov/docs/fy12osti/54689.pdf


Consumer Challenges

Source: Forbes

Regulatory Barriers

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Other Paperwork


Financing Costs


Installation Labor

$ pe

r Watt

$0.17Per Watt

Planning & Permitting Roadmap

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

Current Trajectory Roadmap Target

Ad

ded

Cost

Per

Watt

Permitting: Best Practices

Resource

Interstate Renewable Energy Council

Outlines leading best practices in residential solar permitting and provides examples of implementation.

http://projectpermit.org/wp-content/uploads/2013/04/Expanded-Best-Practices-7.23.13_VSI.pdf



127

Financing Costs

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Other Paperwork


Financing Costs


Installation Labor

$ pe

r Watt

$0.30Per watt

Third Party Ownership: Cost

Third Party Ownership Direct Ownership with Debt0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Weighted Average Cost of Capital

Fewer than 5%of the

6,500 banks in the USare

actively financing solar PV

projects

Engage Local Lenders

A guide for local governments seeking to engage financial institutions


Engage Local Lenders: Resources

Resource

Local Lending for Solar PV



Break





Agenda

09:15 – 09:55

09:55 – 10:25

10:25 – 10:40

10:40 – 11:40

11:40 – 12:25

12:25 – 1:10

1:10 – 2:00

City Goals

– Boost the local economy and

employment– Help residents and businesses save on

energy expenses– Find ways for the city to save energy– Don’t get “left behind” on solar

Policy & Program Recommendations

Others?

Streamline City’s Solar Permitting

Process

Revise Zoning Codes to Address Solar

Residential Bulk Purchasing (Solarize)

Program

Engaging Local Lenders

Performance Contracting


Solar Permitting Best Practices:

Post Requirements Online

Implement an Expedited Permit

Process

Enable Online Permit Processing

Ensure a Fast Turn Around Time

Streamlined Permitting

Source: IREC/ Vote Solar

Transparent process

Source: Breckenridge, CO (http://www.townofbreckenridge.com/index.aspx?page=694)

Permit checklist

Electronic materials

http://www.townofbreckenridge.com/index.aspx?page=694

Solar Permitting Best Practices:

Collect Reasonable Permitting Fees

Narrow Inspection Appointment

Windows

Eliminate Excessive Inspections

Train Permitting Staff in Solar

Streamlined Permitting

Source: IREC/Vote Solar

Expedited Permitting:

Simplifies requirements for PV applications

Facilitates efficient review of content

Minimize need for detailed studies and unnecessary delays

Model Expedited Permitting ProcessResource

Solar America Board for Codes & Standards

1-1. Example Design Criteria:• Size < 10-15 kW• Code compliant• Weight < 5 lb / sqft • 4 strings or less

List out all current requirements with permitting staff

Examine Solar ABCS model permitting process & streamlined processes from other cities

Identify opportunities to streamline Detroit’s process or consider adopting the Solar ABCS model

Ensure fees represent staff time requiredClarify solar permitting requirements- list

on websiteConsider creating an expedited process for

systems meeting certain requirements

Permitting Next Steps


Process



Program




Revise Zoning Code

Consider utilizing a model zoning ordinance for solar energy systems

Specifically address: Definitions Uses Siting

Preferences Design

Preferences

Planning & Visioning– What are Detroit’s solar goals?

Look at Massachusetts and North Carolina model solar development ordinances

Utilize existing model ordinances and adapt to Detroit’s needs for both large solar and small solar

Zoning Next Steps


Process



Program




Reduce the upfront cost of solar for residential customers in Detroit (other programs have seen reductions of 20%!)

Expand access to solar & help more residents save on energy costs

Consider streamlining permitting first and engaging local lenders to offer solar financing products to participants

Solarize

Source: Solarize Plano

Barriers

High upfront cost

Complexity

Customer inertia

Solutions

Group purchase

Community outreach

Limited-time offer

The Solarize Program

Solarize: Process

Select Installer

Marketing &

Workshops

Enrollment

Site Assessm

ent

Decision &

Installation

A household is

0.78% more likely to adopt solar

for

each additional installation in their zip code

Solarize: Lasting Impact

Source: NYU Stern and Yale School of Forestry – Peer Effects in the Diffusion of Solar Panels

Solarize: Lasting Impact

Source: NREL

Lasting Impact

Reach out to trusted local organizations & those with renewable energy expertise

Provide support for a Solarize campaign run by a local organizationOfficially back the programAdvertise the programStreamline permittingEnsure financing is available to

participants

Solarize Next Steps


Process



Program




Work with local banks and credit unions to offer solar loans

Expands access to solar to those who do not have the cash upfront to pay for a system

Solarize campaigns often work with local lenders


Municipal Loans– City of Pendleton, OR

Bank or Credit Union Loans– Home equity loans, unsecured loans– Admirals Bank, local credit unions

PACE Financing Solar Leases or PPAs (3rd Party

Ownership) Utility Loans


Municipal Loans– City of Pendleton, OR

Bank or Credit Union Loans– Home equity loans, unsecured loans– Admirals Bank, local credit unions

PACE FinancingSolar Leases or PPAs (3rd Party

Ownership) Utility Loans


ResourceInformation on types of solar financing and what local governments can do to make financing options available to customers



Connect with Michigan Saves and Lean and Green Michigan to identify and publicize existing financing options

Meet with local financial institutions to encourage additional financing options

Coordinate with Solarize organizers to offer financing for participants

Educate consumers on the options available to them

Engaging Local Lenders Next Steps


Process



Program




Incorporating solar into an energy services performance contract (ESPC)


Source: Integrating Solar PV Into Energy Services Performance Contracts: Options for Local Governments Nationwide (NC Solar Center, 2014)

Limited to no upfront capital required

Guaranteed long-term financial

savings May help stem further job losses and

enhance delivery of government services


Source: Integrating Solar PV Into Energy Services Performance Contracts: Options for Local Governments Nationwide (NC Solar Center, 2014)

Knoxville, TN: $1.1M/year shared savings

Cincinnati, OH: shared savings of $153,732/year (phase 1) and $324,819/year (phase 2)

Identify Energy Services Companies (ESCOs) in your area)

Consider issuing a Request for Proposals (RFP) to select an ESCO

Include ability to include a solar array in the RFP criteria

Network with other cities to learn more about their experiences with this option

Performance Contracting Next Steps

Streamline City’s Solar Permitting Process



Program




Questions?



Break





Agenda

09:15 – 09:55

09:55 – 10:25

10:25 – 10:40

10:40 – 11:40

11:40 – 12:25

12:25 – 1:10

1:10 – 2:00

Activity: Solar in Your Community

Spend the next 10 minutes discussing next steps and potential obstacles with others at your table.

Integra

te solar in

plans

Address s

olar in

zoning c

ode

Adopt solar

read

y guidelines

Define permitti

ng proce

ss

Expedite

typica

l solar p

ermits

Implement fa

ir perm

it fees

Expand finan

cing o

ptions

Implement s

olarize

program

0% 0% 0% 0%0%0%0%0%

Which “best practice” should be pursued first?

A. Integrate solar in plansB. Address solar in zoning codeC. Adopt solar ready guidelinesD. Define permitting processE. Expedite typical solar

permitsF. Implement fair permit feesG. Expand financing optionsH. Implement solarize program

0%0%0%0%0%

Very easy Somewhat easy ModerateSomewhat difficult Very difficult

How difficult will it be to implement this policy/program? 1. Very easy2. Somewhat easy3. Moderate4. Somewhat

difficult5. Very difficult

DiscussionWhat obstacles stand in the way of implementation?

DiscussionWhat are possible strategies to overcome those obstacles?

Activity: Next Steps

What do you pledge to do when you leave today’s workshop? [Orange Card]

NC Clean Energy Technology Center

[email protected]

Autumn Proudlove

The Solar [email protected]

Alex Winn

Pursuing Economic Development through Local Government Solar Programs and Policy.

Documents

Transcript of Pursuing Economic Development through Local Government Solar Programs and Policy.