october 14, 2012
DESCRIPTION
Evan R. Endres Project Coordinator, PennFuture Energy Center [email protected]. Citizens for Pennsylvania’s Future ( PennFuture ). A statewide non-profit environmental and clean energy advocacy group. Foundation and member supported. Provide $2 million in legal services per year. - PowerPoint PPT PresentationTRANSCRIPT
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
October 14, 2012
Citizens for Pennsylvania’s Future (PennFuture). A statewide non-profit environmental and clean energy advocacy group.
Foundation and member supported.
Provide $2 million in legal services per year.
Evan R. EndresProject Coordinator, PennFuture Energy [email protected]
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
October 14, 2012
•Photovoltaic (Solar Electric) •Solar Thermal Electric
•Landfill Gas
•Wind
•Biomass
•Fuel Cells
Distributed Generation-
Defined by on-site generation of electricity primarily for on-site use.
In Pennsylvania, defined by which technologies can net-meter, operating as grid-tied.
• Coal-Mine Methane
• Anaerobic Digestion
• Small Hydroelectric
•Fuel Cells using Renewable Fuels
• Waste Coal
•Hydroelectric
•Municipal Solid Waste
•CHP/Cogeneration
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
Net-metering
Needs to have an existing load.
System size limits.
50kW limit on residential
3MW, 5MW limit on commercial
Compensation for Generation
Full retail rate, including distribution, up to 100% of usage.
Excess can carry over from over until annual true –up at which the customer would receive a payment for excess.
Excess over 100% is only paid at the wholesale rate with no distribution.
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
7000+ Individual Solar Installations
400+ in western Pennsylvania
12 western PA companies that offer the service of solar installation
178+ MW of in-state solar capacity
99% installed in the last 5 years
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
PA Market DriversDeclining solar hardware costs
Average installed cost per-watt, residential, $4.25.
Average system size 6.8 kW.
Total system cost $ 28,000
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
PA Market Drivers
Alternative Energy Portfolio Standard (AEPS)
Progressive Energy Policies
Achieved through REC (Renewable Energy Credit) and SREC (Solar Renewable Energy Credit) purchases.
SREC market is currently oversupplied leaving to SREC price that doesn’t stimulate new project development of consumer purchase.
6.8 kW = 8 SRECs per year x $15 = $120 per year
Tier I: 8% byTier II: 10% by compliance year 2020-2021PV: 0.5% by compliance year 2020-2021
18% electricity from alternative energy resources by 2020
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
PA Market Drivers
PA Sunshine Rebate Program $111 Million in total funding
Progressive Energy Policies
Residential PV: $0.75 per watt (started at $1.25 per watt)
Commercial PV: $0.50 - $0.75 per watt
Residential Battery Backup (1-10 kW only): $0.35 per amp-hour
Solar Thermal: 35% of installed cost
Low-income (PV and solar thermal): 35% of installed cost
6800 watt x $.75 per watt = $5,600 rebate (rebate can be taxed as income)
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
PA Market DriversFederal Progressive Energy Policies
Federal tax credit 30% of the system cost over 4 years.
Accelerated depreciation for commercial purchasers of renewable energy systems.
Tax Policy
30% on $28,000= $8,400
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
National Market Drivers
Solar Leasing- = 70% of all new residential installations.
Power Purchase Agreements- Third party owns energy system, sells electricity at an agreed upon rate. Purchase option for host. Leverages tax equity.
Community Solar- Dependant on robust virtual net metering. Allows community members to subscribe to a solar installation that is not on their home or business and receive net metering benefit for a portion of that in
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
National Market Drivers
Community Solar- Dependant on robust virtual net metering. Allows community members to subscribe to a solar installation that is not on their home or business and receive net metering benefit for a portion of that installation.
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
Few Traditional Financing Mechanisms for Solar
• Residential customers use cash, unsecured financing, home-equity lines of credit. Available financing products have comparatively high interest rates.
Financing from non-traditional development institutions, public –private partnerships. Interest rate buy-downs, rolling funds.
• Less than 5 percent of the country’s 6,500 banks and lending institutions are actively involved in financing solar projects (commercial scale) due to ongoing concerns about, and misunderstanding, industry risks.
• Tru-solar is collaborative that is working to create industry risk assessment standards (project ratings).
Financing
University of Pittsburgh School of Law 2013 Energy Law & Policy Institute
Few Traditional Financing Mechanisms for Solar cont.
• Renewable energy (or energy efficiency) are not considered in a home appraisals for the purposes of mortgages. A customer is not guaranteed to increase their home value after installation.
“Greening” real estate MLS (Multiple Listing Services) to include home renewable energy systems and energy efficiency information.
Senate Bill 1106, the Sensible Accounting to Value Energy Act of 2013, is bi-partisan bill that would require home energy efficiency to be cosidered in appraisals of FHA backed mortages.
Financing