creating a cleaner energy future for the commonwealth focusing on solar pv: technology, siting...
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Creating A Cleaner Energy Future For the Commonwealth
Focusing on Solar PV: Technology, Siting
Considerations, Incentives
Natalie AndrewsRenewable Energy Project Coordinator
July 26, 2012
Renewables on Closed Landfills
Boxborough, MA
Creating A Cleaner Energy Future For the Commonwealth
DOER MissionCreating a Cleaner Energy Future for the Commonwealth
• The Massachusetts Department of Energy Resources (DOER) develops and implements policies and programs aimed at ensuring the adequacy, security, diversity, and cost-effectiveness of the Commonwealth’s energy supply within the context of creating a cleaner energy future. To that end, DOER strives to:
Ensure deployment of all cost-effective energy efficiency Maximize development of clean energy resources Create and implement energy strategies to assure reliable
supplies and improve the cost of clean energy relative to fossil-fuel based generation
Support Massachusetts’ clean energy companies and spur Massachusetts’ clean energy employment
Creating A Cleaner Energy Future For the Commonwealth
Outline
• Solar PV 101• What makes a good
site?• Incentives
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Creating A Cleaner Energy Future For the Commonwealth
Is there enough sun in MA?
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Creating A Cleaner Energy Future For the Commonwealth
How does Solar PV Work?
• Absorbed sunlight dislodges electrons in a semiconductor
• Electric field forces free electrons to flow in certain direction (current)
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Annual Solar PV production in MA: Size of array (kW) x 8760 hours/year x 0.13 capacity factor
Creating A Cleaner Energy Future For the Commonwealth
What makes a good site
Orientation Southerly exposure
Tilt Ideal 36 degrees
No shading Trees, rows
• Trackers
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http://energy.ltgovernors.com/solar-energy-pv-systems-self-generation-make-your-own-power.html
Creating A Cleaner Energy Future For the Commonwealth
Shading of Solar PV Systems
• Shading can significantly reduce the output of a system
• An analysis should be performed for each project
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Creating A Cleaner Energy Future For the Commonwealth
Common Solar PV Terms
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Cell < Module < Panel < Array
Racking
Inverter
kW, MW, kWh
DAS
Creating A Cleaner Energy Future For the Commonwealth
Incentives
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RPS Solar Carve-Out
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Creating A Cleaner Energy Future For the Commonwealth
RPS Solar Carve-out (SRECs)
• Market-based incentive to develop 400 MW of solar PV
• Part of the broader RPS Program
• 1 SREC = environmental attributes associated with 1 MWh of solar generation
• Projects must be qualified by DOER before they can begin generating SRECs
• All generation is metered and reported to MassCEC’s Production Tracking System (PTS)
• MassCEC reports generation to NEPOOL GIS where SRECs are minted on a quarterly basis
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SREC Program Design FeaturesProgram design features help ensure market stability and
balance Adjustable Minimum Standard
maintains SREC demand/supply in reasonable balance
Forward ACP Rate Scheduleprovides investor certainty
Solar Credit Clearinghouse Auction Accountessential price support mechanism to assure SREC floor price
Opt-In Termprovides right to use Auction, adjusted to throttle installation growth rate
• These features work together to ensure the market will remain in balance as more PV is built
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Eligibility Criteria
• Have a capacity of 6 MW (DC) or less per parcel of land• Be located in the Commonwealth of Massachusetts,
which includes municipal light district territories• Use some of its generation on-site and be
interconnected to the utility grid• Have a Commercial Operation Date of January 1, 2008,
or later• Cannot have received certain levels and types of
funding
Creating A Cleaner Energy Future For the Commonwealth
Net Metering
Provisions in GCA 2008:• Run the meter backward and generate
credits from the utility• Credits equal to retail rate for customers• Capped @ 3% of utility peak load (1%
private & 2% public)• Net excess is carried over month-to-month
indefinitely
• New definition for public net metering facility Owned or operated by a public entity; OR
100% of output is assigned to the public entity14
Creating A Cleaner Energy Future For the Commonwealth
State and Federal Tax Incentives
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Tax Incentives Value Eligible Project OwnersInvestment Tax Credit
(ITC) 30% Installed Cost Commercial Only
Accelerated Depreciation (MACRS)
5 year schedule with 50% bonus depreciation Commercial Only
Equipment Sales Tax Exemption 100% Exemption Commercial & Residential
Property Tax Exemption 100% Exemption for 20 years (if applicable) Commercial & Residential
Creating A Cleaner Energy Future For the Commonwealth
Thank You
Natalie AndrewsRenewable Energy Project Coordinator
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