Shared re modelruleswebinar

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Information about Shared re modelruleswebinar

Published on June 26, 2013

Author: VoteSolar


Shared  Renewable  Energy  Model  Program  Rules  Webinar  June  26,  2013  Photo  credit:  Clean  Energy  Collec@ve  

Why  do  we  need  shared  renewables?  •  People  really  want  to  green  their  energy  supply  •  But,  only  about  25%  of  residents  and  businesses  are  able  to  install  solar  or  other  renewables  on  their  own  property    

How  does  Shared  Renewables  work?  The ‘No Roof’ Solution = Everyone Can ParticipateWe can stop leaving customers out of the renewable energy market

How  shared  renewables  can  help  •  Shared  renewables  works  for  the  other  75%  •  Gives  renters,  many  schools  and  public  buildings,  millions  of  home  and  business  owners  affordable  access  to  clean  energy  for  the  first  @me  •  Simple  for  customers  to  par@cipate  •  Crowdfunding  can  help  solve  financing  challenges  for  developers  •  Systems  can  be  installed  in  op@mal  loca@ons  and  achieve  lower  cost/WaP  through  economies  of  scale  •  5%  of  U.S.  households  subscribing  to  5kW  of  shared  solar  =  28GW  of  new  clean  energy  capacity  4  

Shared  Renewables:  An  Idea  Whose  Time  Has  Come  “The  Power  of  Sharing  in  the  Internet  Economy”  -­‐  Forbes    “The  Sky’s  the  Limit  for  the  Sharing  Economy”  -­‐  Fast  Company    “The  New  Sharing  Economy  Values  Access  Over  Ownership”    -­‐  CS  Monitor    U0lity  associa0ons  are  telling  their  members…  

Model Rules for SharedRenewable Energy ProgramsLaurel PasseraIREC WebinarJune 26, 2013

About IREC•  Participated inregulatoryproceedings in over35 states•  Works to expandconsumer access toclean energy


Why an Update Now?

Guiding Principles for Shared Renewables1234

Shared Renewables– SharesAspects with other ProgramsNet MeteringDonation-based modelsGroup PurchasingCrowd funding

Critical Elements of the Model• Program Administration• Allocating the benefits of participation• Valuation of the energy produced• Facility and Program Size• Facility ownership• Additional Considerations (# ofparticipants, portability/transferability, lowincome, restructured states)

Program AdministrationWho can administer a program?– Utility—most existing shared renewablesprograms are administered by utilities– Third party—for example, Clean EnergyCollective– Participants—for example, Vermont’s groupbillingIREC does not specify a program administrationrecommendation

Allocating the Benefits ofParticipationBy check–  Simplicity is initially appealing–  However, raises security and tax considerationsthat can complicate thingsBy bill credit mechanism–  kWh credit vs. dollar credit–  Relatively easy to administer–  Avoids security and tax concerns–  Familiar to participants and utilitiesIREC recommends a monetary bill credit

Valuation of the Generation•  Embedded-cost approach—based on participants’retail rate–  Credit based on generation, transmission and/ordistribution rate components (similar to NEM)–  Can get even more complicated with TOU rates andnon-kWh rate components, e.g., demand charges•  Value-based approach—based on the value of thegeneration to the utility–  Costs = lost revenue, administrative costs, incentives–  Benefits = avoided generation costs, avoided linelosses, capacity benefits avoided T&D costs, avoidedenvironmental compliance costs, others?IREC provides language for both approaches

OwnershipOwnership directly affects financing. Typicaloptions being used:•  Direct ownership (residential, commercial,non-profit, and/or governmental)•  Third-party ownership—for example,Clean Energy Collective•  Utility ownership—for example, FloridaKeyes Electric Cooperative (participantslease panels from the utility)IREC recommends allowing all forms of ownership

Facility and Program SizeSize and location depend on stakeholdergoals and priorities– Smaller systems can usually take advantageof faster interconnection (e.g., < 2 MW)– Program could encourage locations thatmaximize grid benefits and/orenvironmental benefitsIREC recommends unlimited program size and does notmake a recommendation on facility size

Additional Recommendations•  Minimum of 2 program participants•  Allow both portability and transferability ofparticipation•  Minimum subscription size – one panel•  Maximum size - 120% of a participant’sannual electrical consumption•  Encourage low-income consumerparticipation

Restructured StatesPolicy is not generally necessary to create programs inthese states, but could potentially facilitate programsSome considerations include:•  More complex billing arrangements•  State requirements to offer RE programs do notalways transfer to retail suppliers•  Contracts length and penalties for early termination•  Customers served by different suppliers

Shared  Renewables  Policies  and  Campaigns  

Shared  Renewables  Projects  

Policy  &  Project  Highlights  •  Colorado  Solar  Gardens  well  into  implementa@on,  with  thousands  of  customers  par@cipa@ng.  •  CA  SB  43  poised  to  create  600MW  pilot  program  •  MN  passed  bill  crea@ng  Solar  Gardens  program  •  NY  likely  to  consider  shared  renewables  legisla@on  in  2014  •  U@li@es  proac@vely  launching  shared  renewables  programs  to  meet  customer  preferences.      

For  more  informa4on:    Laurel  Passera  IREC  510-­‐314-­‐8384        Erica  Schroeder  IREC  510-­‐314-­‐8206        Hannah  Masterjohn  Vote  Solar  607-­‐431-­‐8811  23  Resources    •  IREC’s  Model  Program  Rules  serve  as  a  star@ng  point  for  stakeholders  looking  to  launch  programs  in  their  state/community  •  is  a  central  info  source  on  shared  renewables  policies  and  projects  •  IREC  is  available  for  technical  assistance  on  program  design  and  implementa@on  •  Contact  Vote  Solar  regarding  legisla@ve  campaigns  


SHARED  RENEWABLES  Mul4ple  customers/accounts  sharing  the  power  and  economic  benefits  from  one  solar  project,  via  their  individual  u4lity  bills      Broadening  Access  to  Renewable  Energy  How  do  we  bring  clean  energy  to  ALL  customers?  Note:  Each  of  these  structures  represents  a  complex  set  of  rapidly  evolving  business  models  –  this  summary  is  designed  to  provide  a  basic  understanding  of  the  “typical”  structures  in  use  today  Company  (e.g.  Mosaic)  manages  individuals’  investments  in  renewable  energy  projects,  offers  aPrac@ve  returns                    While  this  business  model  does  not  involve  customers’  energy  bills,  it  does  enable  individuals  to  directly  support  solar  projects    RENEWABLE  ENERGY  PROJECT  INVESTMENTS  

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