national roadmap for soft cost reduction april sac
DESCRIPTION
Presentation at 4th annual DOE Solar America Cities Meeting - National roadmap for soft cost reduction, speed, and scaling the industry in local marketsTRANSCRIPT
Big Ideas! A Roadmap For SuccessReducing PV Project Execution Time(Permitting / Inspection / Interconnection)
Doug PayneExecutive Director, [email protected]
PolicyProducts
Process
The Industry Pillars – Each play a critical role in achieving Market Share
2
Rogers Diffusion of Innovation (1962)
Policy
Products
Process Speed, Scale, Efficiency
Innovation
Create Markets
We are here
Get here
A B
Policy (macro)
Fed PolicyRES/RPS
REC’sSB1CSI
AB32
ProductsTechnology InnovationMaturity
ProcessesProductivity
Scale“Total Cost of Ownership”
“Best in Class” tools
Lower CostsReduced RiskFaster Projects
Better Bottom Line
Process Efficiency = The last frontier
Process + Speed = ScaleVision – Local Gov’ts, Utilities, Customers, Banks, and Developers grow the market 3x faster through standardization to achieve economies of scale.
StrategyStandardize “Best in Class” processes in customer and project transactions,
permitting/inspection interconnection
Metrics# of Cities, Utilities, Customers, and Banks are using “Best in Class” tools “Think Velocity Watts / Week”
Pay for itDesign
ItApprove
ItBuild It Check It
Turn it On
Make Sure it's working
Take Care of
It
Close the Deal
Customer Acquisition & Finance
Permitting, Inspection, Interconnection
Start< 60days (Res)< 90days (Comm)
Non-Hardware costs now account for over 30%+ of PV system costs.
Current BoS Process cost curves put Sunshot 2020 DOE goal(s) at
risk
Industry processes lack scalability to meet U.S. DOE goals
5
Current State
Permitting, Inspection, Interconnection: Everyone’s problem, no-one’s problem
1
50+ x 3
National Electrical Code (NEC, article 690)
Federal
State State Building Codes (Electrical, Structural, Fire)
18,443 “AHJs” + 3,273 Utilities
LocalCity Building Codes, Policies, FERC (Electrical, Structural, Fire, Fees)
Forms, Fees, Rates, are ALL different
AHJs = Authorities Having Jurisdiction
$ $
Impact extends beyond PV into solar thermal, EE, wind, biomass, etc.
For Cities & Counties
• Create lasting, local jobs
• Economic Development
• A Greener Community
• Revenue grows as volume grows
7
For Solar Companies
ForUtilities
• Customer Service
• Responsiveness• Inspire loyalty• Reduce
administrative costs, less paperwork
• Cut red tape by $0.50 / W
• Increase market size
• Validate best practices, costs
• More lasting local jobs, faster
Why Standardize? Why now?
Reinforcing effect of Process, Speed, and Scale on Reducing Solar Soft Costs
• Scalable, open access to Permitting, Inspection, Interconnection information drives out 50-60% of process related costs
• Enables Private/Public workflow driven cost reductions for PV
2012
• 50% less paper
• 40% faster projects
• Distributed PV
2013
• 75% less paper• 75% faster
projects• Add Solar Hot
Water, EE, Wind
2014
• Paperless• Enable $1/Wp
adoption curves• Add other RE,
Vehicle to Grid
BoS Non-Hdwr costs(Res / Comm.)
(Permitting, Inspection,
Interconnection,SG&A)
<30% of Res/Comm soft costs
<20% of Res/Comm soft costs
<10% of Res/Comm soft costs
Phase 3Technical Innovation
Phase 2Business
Innovation
Getting from Current Future State
Phase 1Local (Micro)
Policy Innovation
Phase 1Local Policy Innovation
Phase 1 – Policy Innovation
• Scale, standardize, and drive adoption of initial policy solutions (eg. VoteSolar Project Permit guidelines)
• Scale adoption of SolarABCs Expedited Permit Standards work to 50% of US <2 yrs
• Uniform inspection standards for authorities having jurisdiction (AHJ) (example Brooks Engineering checklist)
• Adopt, Implement, Jointly develop standards at local level• A balanced approach to permitting fees• Processes for Commercialization, New Technologies
10
Exists. Scale it.
Improve, then scale
New
Phase 2Business
Innovation
Phase 2 – Business Innovation• One-Stop-Shop for municipal rules,
regulations, and building codes, including changes
• Improve consistency in pass/fail criteria, guidance on requirements to ensure approval, industry held accountable. Set standards where:
Permitting Pass/Fail
= Inspection Pass/Fail
= Interconnection Pass/Fail criteria
Wherever possible, for std systems
• Cost recovery “plus” model – Industry adheres to State or National standards– AHJs implement consistent requirements, and
better visibility– Resource gaps covered through incremental
fees above current level11
New
Phase 3Technical Innovation
Phase 3 and beyond… Technical Innovation
• Online Portals – NEC code versions, Fees, etc can inform / drive Federal, State, Local policy
• Use technology, enterprise S/W, IT to integrate Permitting, Inspection, Interconnection requirements into 1-step, pass/fail criteria
• Automation to MOVE information • Software tools, applications, and systems based on
open architectures across Cities, Utilities, Industry• Off the shelf solutions, on-line, paperless submittals
12
New
Case Study – Silicon Valley Power/Santa Clara (Phase 2 + 3)
• What - “Best in Class”– #4 ranked total solar watts / customer (SEPA May’10)– 1-Step Interconnection and Permit Application – Residential projects <10kW
• No Interconnection application for projects this size• How?
– Systems (not silos) approach all under one roof– Being a “muni” makes this easier but IOUs can get close
• Requires supplemental training for permitting and inspection staff– It’s the 21st century. Time to leverage technology.
• Over the counter today, completely on-line by end of 2011 • Impact
– 2-Step process = 2 months 1-Step process = 15 minutes– Tighter process control– More efficient use of limited/reduced staff. – Staff available to focus on non-standard installs 13
Case Study – East Bay Green Corridor /LBNL (Phase 1, 2)
• Who – 8 City Region– 800K+ people, 300K households
• What - “Best in Class”– T.U.C.C. adoption July 8, 2010– Regional Uniform Guidelines Spring ‘11
• Impact– Drive local solar PV market, help bring to scale– Increase efficiencies and reduce costs– Build local economy and create jobs– Help meet cities’ climate action goals
• How?– Signed onto “California Solar Challenge”– Work with 8 AHJs, Industry, LBNL– SolarABCs work being considered 14
Q: So Now What…?!?
A: Create a Platform for Process Innovation, Expand the Market, accelerating cost reduction through economies of scale
15
16
The California Solar
Challenge
Where local governments, utilities, and industry work on
real projects, with less paperwork, at lower prices, and at faster
speeds.
www.solartech.org/thechallenge
No more White Papers. Find out what works.
• Highlight Top California Cities & Counties• Run 5-7 Pilots in Best Local Places for a
variety of Innovators / Early Adopters• Prove the Concept with Specific Projects on
Homes, at Schools, or on Businesses• Share the results• Learn Fast, Standardization is Hard• Launch 3/30, checkpoint in 6 months (SPI)
– Report progress, new ideas, adjust if needed
Permitting / Inspection / Interconnection Roadmap
Element Phase 1Education
/Awareness
Phase 2Streamline
(Paper based)
Phase 3AStreamline
(Online)
Phase 3BIntegrated
(P, Insp, Int)
Phase3CSolar 3.0
National SolarABCs SolarABCs Market Driven, DOE Catalyzes vision
DOE / Industry/NGO Partnerships
State SACO
Industry / NGO Partnerships
Regional Industry/NGO Partnerships Multiple Multiple Multiple
Local DOE / SACO effort Multiple Multiple Multiple
Industry/NGO Partnerships
Directional. Actionable. Measureable.
3 Year Roadmap for 50% of “Solar AHJs”
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2012 2013 2014
• 50% less paper• 40% faster
projects• Distributed PV
• 75% less paper• 75% faster
projects• Add Solar Hot
Water, EE, Wind
• Paperless• Enable $1/Wp
adoption curves• Add other RE,
Vehicle to Grid
What? Who? Role
Process Signal White House OSTP, Dept of EnergyCatalyst, Administration,
Goals, Metrics
National ToolsSolarABCs, Industry Consortia,
NGOsStandards, Guidelines
AHJs, League of Cities, Council of Mayors, Industry Consortia, NGOs
Permitting Innovation, Local Fee Structures
State Building Officials, Local Building Officials
Uniform NEC version adoption, On site inspection
Phase 1 - Implemenation
Manual Processes)
Dept of Energy, Industry Consortia, NGOs
BoS Process cost models, Validate cost curves
SolarABCs, Industry Consortia, NGOs
Evolve - Best Practices --> Best in Class
Phase 2 - Success Criteria
(OnGoing)
AHJs, League of Cities, Council of Mayors, Industry Consortia, NGOs
Permitting Innovation, Local Fee Structures
State Building Officials, Local Building Officials
Uniform NEC version adoption, On site inspection
Phase 3 - Implemenation(Automation/IT)
Start Today
AHJs, League of Cities, Council of Mayors, Industry Consortia, NGOs
State Building Officials, Local Building Officials
Scale, Extend the Model "Rinse & Repeat"
Educate other Renewable Market Segments
(SHW, EE, V2G, Wind, SmartGrid)
50% of SolarAHJs by 2014
The Big Picture - 50% reduction in Soft Costs by 2014
Processes = Standards = Scale
Systems (Not Silos)
Solar in a Box = OTC Permits
(PV + IT) < C
Watts / Hour19
