Solar Energy Jobs Act of 2013

An Affordable, Job-Creating, 10% Clean Local Solar Energy Standard

February 26, 2013

Presentation by John Farrell ILSRs Director of Democratic Energy jfarrell@ilsr.org

DOE SunShot goal

Minnesotas 10% Solar Standard

Support for using more solar power 10% DFL Ind. 8% GOP

10%

99% 83% 76%

6%

4%
NJ

NM

2.5% of electricity

AZ

DE

CO

2%

MD NV IL NM

Minnesota other state standards

2028 2030

0% 2014

2016

2018

2020

2022

2024

2026

Broad Participation

Residential

More than 50,000 rooftops

Small Commercial

Commercial/ Industrial

Utility Scale

% of capacity

Payment for Production

Value of Solar (see handout 1) Improves on a Texas utility calculation to identify the value of solar electricity to Minnesota utilities. Utility buys all solar electricity at that price. Utility still sells all regular electricity to the customer, recovering xed costs.
Value of Solar Energy to Austin Energy (Utility) 18 15 12 9 6 3 0 2006
11.8 10.3 16.4 13.8 13.8

12.8

2007

2008

2009

2010

2011

Chart data from Austin Energy, TX

Payment for Production

Production-Based Incentive Replaces up-front rebates with a per-kilowatt-hour incentive Based on project size Phases out over time Includes bonus for Minnesota-made
Willingness to pay at least $2 per month for more solar power

A Modest Cost 10%

9%

8%

6%

4%

< $1 per month

2%
1.33%

DFL Ind. GOP

97% 86% 89%

0%

Local Solar Surcharge

Xcel Energy Rate Hike (2013)

Simplied Solar (see handout 2)

The Value of Solar and Production-Based Incentive are combined. Solar generators sign a standard contract to deliver electricity at this combined price for 20 years. A simple, transparent revenue stream makes it easy to attract private capital.
Installed Cost of Solar PV (2007-2012) $10 $8 $6 $4 $2 $0 2007 2008 2009 2010 2011 2012

Residential Other

Small Commercial

Chart data from Lawrence Berkeley National Labs, 2012

The Bottom Line on the Solar Energy Jobs Act

The Benet
10% of states electricity from solar power by 2030 on over 50,000 rooftops 6,600 jobs (over 1,300 in manufacturing) according to NRELs JEDI economic model Millions of dollars in electricity savings for Minnesota homes and businesses $7 billion in economic activity according to NRELs JEDI economic model
Every $1 in incentives buys $5 in economic output

The Cost
1.33% on a utility bill

Solar&Energy&Jobs&Act&of&2013,&Handout&1&

The$Value$of$Solar$

Compared&to&other&kinds&of&electricity&generation,&solar&has&unique&value&to&the& electricity&grid.&&A&cornerstone&of&the&Solar&Jobs&Bill&is&having&utilities&replicate&a&value& of&solar&calculation&already&in&use&by&a&Texas&municipal&utility,&where&solar&electricity& is&worth&12H13&per&kilowattHhour&to&the&utility.&&Utilities&buy&all&solar&energy&at&this& price.& & This&value&of&solar&price&calculation&has&seven&parts:&

Savings$from$avoided$transmission$

Solar&power&is&generated&close&to&(or&on&top&of)&buildings&it&serves,&avoiding&energy& losses&from&longHdistance&transmission&and&distribution&of&electricity.&

Savings$from$deferred$capital$investment$
The&more&solar&power&plants&provide&local&electricity,&the&longer&utilities&can&wait&to& upgrade&transmission&and&distribution&infrastructure.&

Savings$from$avoided$energy$costs$
Like&any&other&power&plant,&a&solar&arrays&electricity&is&electricity&the&utility&wont& have&to&acquire&elsewhere.&

Savings$from$energy$capacity$
Solar&provides&strong&energy&capacity&at&times&of&peak&energy&use,&such&as&hot& summer&afternoons.&

Savings$due$to$hedging$of$fossil$fuel$prices$
With&no&fuel&cost,&solar&reduces&price&uncertainty&that&plagues&traditional&fossil&fuel& power&generation.&

Environmental$benefits$
Solar&has&no&emissions&of&mercury&or&sulfur&dioxide,&no&radioactive&waste,&and&no& greenhouse&gas&emissions.&

Economic$development$benefits$from$local$power$generation$
Solar&energy&can&be&generated&almost&anywhere,&built&by&Minnesota&businesses&and& installed&by&local&contractors,&increasing&economic&activity&in&cities&and&towns& across&Minnesota.&

Better$Value$for$Minnesota$Utilities$
Under&current&net&metering&rules,&customers&spin&their&meter&backward&when&they& generate&solar&electricity,&reducing&their&bill.&&The&buy&all&/&sell&all&policy&means& utility&customers&keep&buying&their&electricity&as&usual,&and&are&paid&by&the&utility&for& their&solar&electricity&based&on&its&value&to&the&grid.&

&

Solar&Energy&Jobs&Act&of&2013,&Handout&2&

Simple'Solar'for'Minnesota'Homes'and'Businesses'

& A&highlight&of&the&Solar&Jobs&Bill&is&making&it&easy&for&Minnesota&residents&and& businesses&to&put&their&own&money&into&solar&energy.&&&&

A'Performance7Based'Payment'
A&homeowner&knows&what&theyll&earn&for&every&kilowattFhour&they&generate&over& 20&years,&a&combination&of&the&value&of&solar&price&and&a&performanceFbased& incentive.&

A'Simple,'Standard'Contract'
A&homeowner&wont&need&a&legal&team&to&review&their&standardized,&20Fyear&power& purchase&contract&for&selling&their&solar&electricity.&

Easy'Financing'
With&their&simple&contract&in&hand,&showing&expected&revenue&for&the&next&20&years,& a&homeowner&can&seek&lowFcost&financing&from&their&bank,&credit&union,&or&other& financial&institution.& & &