update from dsire: solar policy news & trends susan gouchoe north carolina solar center irec...
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Update from DSIRE:
Solar Policy News & Trends
Susan GouchoeNorth Carolina Solar Center
IREC Annual Meeting
Long Beach, CaliforniaSeptember 24, 2007
Focusing on…
• Solar Portfolio Standards
• Rebates & Other Direct Incentives
• New & Expanded Tax Credits
• Solar Access Laws
The Year of the RPS
• New RPS Mandates
• New RP Goals
• Existing RPS Expanded and/or Increased
• RPS Policies with Solar Set-Asides
*NEW* Renewables Portfolio Standards & Goals
State Goal
State RPS
DSIRE: www.dsireusa.org September 2007
WA: 15% by 2020
NH: 23.8% in 2025
VA: 12% by 2022
NC: 12.5% by 2021 (IOUs)
10% by 2018 (co-ops & munis)
ND: 10% by 2015
OR: 25% by 2025 (lg. utilities)
5% - 10% by 2025 (sm. utilities)
MO: 11% by 2020
double credit for DG
0.3% solar electric by 2014
0.2% solar by 2018
IL: 25% by 2025
300 MW
33 MW
300 MW
Increased/Expanded RPS Policies
CT: 23% by 2020
MN: 25% by 2025(Xcel: 30% by 2020)
AZ: 15% by 2025
CO: 20% by 2020 (IOUs)
10% by 2020 (co-ops & large munis)
DSIRE: www.dsireusa.org September 2007
MD: 9.5% in 2022
DE: 20% by 2019
NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
2% solar PV
2% solar electric
4.5% DG
0.8% solar electric
4% solar electric by 2020;0.6% DG by 2015
500 MW
1250 MW
180 MW1500 MW
175 MW
Solar/DG Provisions in RPS Policies[~6,000 MW solar capacity]
MD: 2% solar electric in 2022
DC: 0.386% solar electric by 2022
DE: 2.005% solar PV by 2019 Triple credit for PV
Solar thermal counts towards solar set-aside
DSIRE: www.dsireusa.org September 2007
DG: Distributed Generation
NJ: 2.12% solar electric by 2021
PA: 0.5% solar PV in 2020
NC: 0.2% solar by 2018
AZ: 4.5% DG by 2025
NV: 1% solar by 2015;2.4 to 2.45 multiplier for PV
NM: 4% solar electric by 2020 0.6% DG by 2015
CO: 0.8% solar electric by 2020
NH: 0.3% solar electric by 2014
NY: 0.1542% customer-sited by 2013
WA: double credit for DG
Promoting Solar through RPS Policies
• Increasing support of solar in RPS policies
• Favoring set-asides rather than multipliers (MD, NM, DE)
• Separate requirements for IOUs and munis/co-ops
• Non-electric solar thermal is RPS-eligible in 10 states
Eligible for set-aside in 3 states
• Potential solar capacity from solar set-asides: ~6,000 MW
Renewables Portfolio Standards
State Goal
☼ PA: 18%¹ by 2020
☼ NJ: 22.5% by 2021
CT: 23% by 2020
MA: 4% by 2009 + 1% annual increase
WI: requirement varies by utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
☼ AZ: 15% by 2025
CA: 20% by 2010
☼ *NV: 20% by 2015
ME: 30% by 200010% by 2017 - new RE
State RPS
☼ Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE
¹PA: 8% Tier I / 10% Tier II (includes non-renewables)
HI: 20% by 2020
RI: 16% by 2020
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
☼ DC: 11% by 2022
DSIRE: www.dsireusa.org September 2007
☼ NY: 24% by 2013
MT: 15% by 2015
IL: 25% by 2025
VT: RE meets load growth by 2012
Solar water heating eligible
*WA: 15% by 2020
☼ MD: 9.5% in 2022
☼ NH: 23.8% in 2025
OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)
*VA: 12% by 2022
MO: 11% by 2020
☼ *DE: 20% by 2019
☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
ND: 10% by 2015
Renewables Portfolio Standards
MA: Not Yet Determined
AZ: 1.1% by 2007
NV: 1% by 2009
ME: 30% by 2000
State RPS
DSIRE: www.dsireusa.org September 1997
IA: 105 MW by 1999
MN: 425 MW by 2002
• 22 “state” programs (includes CO, NV, AZ – RPS-inspired U programs)
• No new states w/ rebates
NJ, CA transitions
• ~ 55 utilities/non-profits in 20 states
• New utility PV programs
Rocky Mtn Power (UT) Columbia W&L (MO) Gainesville RU (FL)
Solar PV - Direct Incentives
DE: 50%
$4/W
CT: $5/W
MA: $2+/W
VT: $1.75-3.50/W
MD: 20%
$2/W
50%
$1.50-$2/kWh-1 yr.
$3.50/W
$1.90-$2.95/W26-46¢/kWh, 5 yrs.
$1 – $2.25/W
30%
15 - 54¢/kWh
NY: $4-5/W
$2-4/W
$3-5/W
$2-4/W
U
U
U
U
U
U
U
U
13¢/kWh
$2-4.50/W
18¢/kWh40%
U
NJ: RECs U
U$3.50/W
U
U
U
= Utility Program = State Program
$/W
$5/W
www.dsireusa.org September 1997
Varies by project
$10K - $50K
10-20% up to $75K
$60K - $1M
$2K - $10K
50% up to $10K
Solar PV - Direct Incentives
DSIRE: www.dsireusa.org September 2007
(R) Residential; (C) Commercial; (NR) Non-Residential
Solar PV Tax Credits
35%
30% (Non-Corp.)
~2.7¢/kWh 10 yrs. (C)
$3/W (R)50% (C)
10% (NR)25% (R)
25% (R)MA: 15% (R)
35% (C)$500 (R)
15%
35%
100% Deduct.
(R)
25% (R)10% (C)
50% (R)
• Tax Credits in 13 States
• Range 10% - 50%
• FL, IA, NE, OK have small PTCs –> PV eligible
• ~10 states proposed new credits in past year
RI: 25% (R)
varies
New Solar Tax Credits
Louisiana – Residential Solar/Wind Tax Credit• 50% up to $12,500 for installations beginning 1/1/2008• Homes and apartment buildings eligible• Eligible solar: PV, space heating, space cooling, or water heating
Kentucky – Incentives for Energy Independence • Variety of tax incentives for alt fuels and RE facilities• Solar Electric: ≥ $1M investment; >50 kW; electricity sold to 3rd party• Combination of tax incentives may offset up to 50% of capital expenditures
– 100% reimbursement of sales tax on equipment, etc. purchased during construction
– Up to 100% tax credit on KY income tax / limited liability entity tax owed – Wage assessment of up to 4% of employee gross wages; employee claims tax
credit• Specific tax incentive package is negotiated - KY Econ. Devel. Finance
Authority• Kentucky Alternative Fuel and Renewable Energy Fund created to promote
R&D
States Expanding Solar Tax Credits
Oregon - Business Energy Tax Credit• Increased business credit from 35% to 50% w/ $10M max.• Homebuilders now eligible - up to $9K for PV; $12K for high-
performance home; 60¢/kWh 1-yr. savings + $3K for SWH • Note: UT, RI also have homebuilder provision
Arizona - Non-Residential Solar & Wind Tax Credit • Extends commercial credit to all non-residential applications,
including tax-exempt organizations.• A third party that finances, installs or manufactures a system for a
non-residential (e.g., non-profit, government) installation can claim the credit; Retroactive to 1/1/06
North Carolina – Renewable Energy Tax Credit• Taxpayer who donates money to a tax-exempt nonprofit to help fund
RE project can claim 35% tax credit on amount donated.
• Solar easements allow for the rights to existing solar access on the part of one property owner to be secured from an owner whose property could be developed in such a way as to restrict that resource. Transferred with property title.
• 13 states limit or prohibit restrictions that neighborhood covenants and/or local ordinances can impose on the use of solar equipment.
Solar Access Laws
D.C.
• At least eight states proposed measures this past year to create or strengthen solar access protections for homeowners
New laws - North Carolina, New Jersey• New Jersey: Limits HOA authority to adopt/enforce rules that would:
– increase the solar installation or maintenance costs by >10% of total cost
– inhibits the system from functioning at intended max. efficiency.
Enhanced Laws - New Mexico, Arizona• Arizona: Limits HOA authority to adopt rules that would:
– prevent installation, adversely affect cost/efficiency, restrict use, impair function
– courts must award attorney fees and cost of litigation to prevailing party
New & Improved Solar Access Laws
