irec: community renewables: best practices, issues & solutions
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
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!