The document discusses strategies for deploying solar power in communities, including on schools. It outlines approaches to increase installed solar capacity and access to financing options. It also describes the SunShot Solar Outreach Partnership program, which provides resources and technical support to help local governments and stakeholders develop local solar markets. The document contains information on various solar technologies, terminology, and the economic and environmental benefits of solar power.
3. Increase installed capacity of solar electricity
in U.S. communities
Streamline and standardize permitting and
interconnection processes
Improve planning and zoning codes/regulations
for solar electric technologies
Increase access to solar financing options
About the SunShot Solar Outreach Partnership
4. A comprehensive resource to
assist local governments and
stakeholders in building local
solar markets.
www.energy.gov
About the SunShot Solar Outreach Partnership
Resource Solar Powering Your Community Guide
5. ‘Ask an Expert’ Live Web Forums
‘Ask an Expert’ Web Portal
Peer Exchange Facilitation
In-Depth Consultations
Customized Trainings
About the SunShot Solar Outreach Partnership
Technical Support
www.solaroutreach.org
14. Benefit: Economic Growth
Source: SEIA/GTM Research – 2009/2010/2011/2012Year in Review Report
http://www.seia.org/research-resources/us-solar-market-insight 14
~40% CAGR~40% CAGR
15. Benefit: Job Growth
Source: SEIA Estimates (2006-2009),The Solar Foundation’s National Solar Jobs Census 2010 (2010),
The Solar Foundation’s National Solar Jobs Census 2012 (2011-2012). 15
SEIA
Estimates
The Solar
Foundation
17. Benefits: Valuable to Utilities
Source: http://www.asrc.cestm.albany.edu/perez/2011/solval.pdf 17
Value to the utility is 10 to 25 cents beyond the value of the electricityValue to the utility is 10 to 25 cents beyond the value of the electricity
18. Benefit: Smart Investment for Business
Source: Solar Energy Industries Association
$47.3 million worth of
electricity annually
$47.3 million worth of
electricity annually
19. The Future Solar Workforce
• Introducing school-aged students to solar industry could
inspire them to pursue STEM-oriented careers
• Environmental based education programs have a positive
effect on critical thinking skills
• Students who participated in hands-on projects in science
classes received higher science scores
*Ernst, Julie Athman and Monroe, Martha. 2004. Environmental Education Research
**"The Nations Report Card. Science 2011: National Assessment of Educational Progress at Grade 8." National Center for
Education Statistics. U.S. Department of Education, May 2012.
***The Solar Foundation,“National Solar Jobs Census 2012,” November 2012.
20. National Solar School Census
http://www.thesolarfoundation.org/education/national-solar-schools-census
21. Fact: Solar works across the US
Source: National Renewable Energy Laboratory 21
22. Solar Market: Trends
Tracking the Sun IV:The Installed Cost of Photovoltaics in the US from 1998-2010 (LBNL),
SEIA/GTM Research Solar Market Insight 2012Year-in-Review. 22
23. Solar Market: Trends
Tracking the Sun IV:The Installed Cost of Photovoltaics in the US from 1998-2010 (LBNL),
SEIA/GTM Research Solar Market Insight 2012Year-in-Review. 23
52% drop in price
2010 - 2012
52% drop in price
2010 - 2012
25. Installed Capacity
Source: (1) GTM Research/ Solar Energy Industries Association. U.S. Solar Market Insight Report 2012Year-in-Review;
(2) www.erneuerbare-energien.de/fileadmin/Daten_EE/Dokumente__PDFs_/20130328_hgp_e_ppt_2012_fin_bf.pdf
Total installed solar
capacity in the US 7.7 GW
Capacity installed in
Germany in 2012
alone
7.6 GW
26. The Cost of Solar in the US
Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf)
(http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)
27. The Cost of Solar in the US
Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf)
(http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)
28. The Cost of Solar in the US
Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf)
(http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)
Solar Soft
Costs
Solar Soft
Costs
29. The Cost of Solar in the US
Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf)
(http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)
Solar Soft Costs
30. Mitigate Soft Costs
Source: NREL (http://www.nrel.gov/docs/fy12osti/54689.pdf)
Solar ReadinessSolar Readiness
$0.70
per Watt
31. Require builders to:
Minimize rooftop equipment
Plan for structure orientation to avoid shading
Install a roof that will support the load of a solar array
Record roof specifications on drawings
Plan for wiring and inverter placement
Solar Readiness
32. Solar Readiness
Source: Solar Ready:An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011.
60% Savings
when a building is
solar ready
60% Savings
when a building is
solar ready
33. Creating a solar ready
guide for buildings:
Legislation
Certification programs
Stakeholder Education
www.nrel.gov
Solar Readiness
Source: NREL
Resource NREL
38. A roadmap for project
planners and solar advocates
who want to create their own
successful Solarize campaigns.
www.nrel.gov
Solarize: Resources
Resource The Solarize Guidebook
39. Mitigate Soft Costs
Source: NREL (http://www.nrel.gov/docs/fy12osti/54689.pdf)
Applying and processingApplying and processing
$0.24
per Watt
40. Provides a detailed discussion on
how both solar installers and
municipalities can do their part
to enable effective improvements
to permitting processes.
www.irecusa.org
Permitting
Resource Sharing Success
43. 3rd
-Party Solar PV Power Purchase Agreements
(PPAs)
www.dsireusa.org / February 2013
Apparently disallowed by state or otherwise restricted by legal barriers
Status unclear or unknown
Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state
Puerto Rico
At least 23
states +
Washington DC
and PR
authorize or
allow 3rd
-party
solar PV PPAs
At least 23
states +
Washington DC
and PR
authorize or
allow 3rd
-party
solar PV PPAs
Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding
financial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.
UT: limited to
certain sectors
AZ: limited to
certain sectors
VA: Pilot program allowing
for certain PPAs
RI: may be limited to
certain sectors
44. What?
Tax credit or direct payment subsidy
Why?
Subsidy lowers the effective cost of capital
Relevance?
Can be used for certain renewable energy facilities
(including solar)
How?
State allocation or automatic allocation
Qualified Energy Conservation Bonds
45. $
QECB
Qualified Energy Conservation Bond
US Treasury Local Gov
Bond Holders
Project
QECB$
Qualified Energy
Conservation Bond
Qualified Energy
Conservation Bond
47. Innovative: Morris Model
Source: NREL . 2011. Financing Solar PV at Government Sites with PPAs and Public Debt
Public
Debt
PPA
MORRIS
MODEL
1
2 3
4
48. Provides a detailed discussion on
various financing options to
support solar installations on
school facilities.
http://www.nrel.gov/docs/fy12osti/51815.pdf
Solar Schools
Resource Sharing Success
49. THE BDR Memorial
The Brian D. Robertson Memorial
Solar Schools Fund is working to
support the charitable donation and
installation of solar energy systems on
20,000 K-12 schools in the United States
by 2020, enhancing and enriching the
energy education of future generations.
http://SolarSchoolsFund.org
Raise hands: No experience Understand the basics Solar experts Raise hands Have completed local government projects Have done something to promote solar in your community or modified permitting, zoning code to reduce barriers.
There are three basic technologies that capture the sun’s energy on the market Solar Photovoltaic, or Solar PV, turns the sun’s energy into electricity. This is the most common technology – these are the panels you see on roofs Solar hot water uses the sun’s energy to heat up water, which can be used for hot water needs or for space heating Concentrated solar power will actually concentrate the sun’s energy onto one tube which is usually filled with molten salt. The heat stored by this salt is then used to make steam, which runs a turbine. Concentrated solar power is generally only used in large commercial settings, and probably won’t apply to your situation
There are three basic technologies that capture the sun’s energy on the market Solar Photovoltaic, or Solar PV, turns the sun’s energy into electricity. This is the most common technology – these are the panels you see on roofs Solar hot water uses the sun’s energy to heat up water, which can be used for hot water needs or for space heating Concentrated solar power will actually concentrate the sun’s energy onto one tube which is usually filled with molten salt. The heat stored by this salt is then used to make steam, which runs a turbine. Concentrated solar power is generally only used in large commercial settings, and probably won’t apply to your situation
There are three basic technologies that capture the sun’s energy on the market Solar Photovoltaic, or Solar PV, turns the sun’s energy into electricity. This is the most common technology – these are the panels you see on roofs Solar hot water uses the sun’s energy to heat up water, which can be used for hot water needs or for space heating Concentrated solar power will actually concentrate the sun’s energy onto one tube which is usually filled with molten salt. The heat stored by this salt is then used to make steam, which runs a turbine. Concentrated solar power is generally only used in large commercial settings, and probably won’t apply to your situation
Capacity – whats the theoretical maximum energy production at a given moment in time? Production – how many electrons is the system producing?
Capacity – whats the theoretical maximum energy production at a given moment in time? Production – how many electrons is the system producing?
Capacity – whats the theoretical maximum energy production at a given moment in time? Production – how many electrons is the system producing?
The US is actually a net solar exporter. Net solar exports totaled $723 million in 2009, according to SEIA and GTM Research. This is more than the GDP of some developing countries. The Solar Energy Industries Association has been tracking the growth of the industry for several years now and found that the solar industry has grown 300% from 2006 to 2010. It went from being a $1.5 billion industry in 2006 to a $6 billion industry in 2010. It is big business and means business – attracting billions in venture capital each year. The solar industry has become the fastest growing energy sector and one of the fastest growing industries in any sector across the U.S.
Solar creates jobs and as you can see by the trend line, the number of jobs are increasing. Installations are increasing and as they increase so do jobs required to support them. The Solar Foundation ’s 2011 National Solar Jobs Census found that, as of September 2012, there were approximately 119,000 solar jobs in the US, up from 105,000 in 2011. Between Census 2011 and Census 2012, employment in the solar industry grew by 13% - That’s 14,000 jobs. Whereas nationwide, employment grew by only 2.3%. This means that 1 in every 230 new jobs added last year were solar workers. And based on the response to our Census 2012, employers expect to add another 20,000 solar workers this year.
The Top 20 corporate solar users’ installations generate an estimated $47.3 million worth of electricity each year. Altogether, U.S. commercial solar installations have reduced business’ utility bills by hundreds of millions of dollars annually. The amount of solar installed by the Top 20 solar-powered companies could power more than 46,500 average American homes. Altogether, U.S. commercial solar installations could power more than 390,000 American homes. The companies analyzed for this report have deployed more than 700 individual solar photovoltaic (PV) systems on their facilities in at least 25 states and Puerto Rico. More than 1.2 million solar PV panels were used for the Top 20 corporate solar users’ installations. Combined, these arrays would cover more than 544 acres of rooftops. Walmart and Costco combined have more solar PV installed on their store rooftops than all of the PV capacity deployed in the state of Florida, the Sunshine State. The top 10 companies (by capacity) have individually deployed more solar energy than most electric utilities in the U.S.
Despite all these non-hardware costs, the average installed cost of PV systems has been falling.
In just the last two years, the blended average (that’s utility scale, commercial, and residential) has been cut in half. But barriers to broad adoption still exist. That’s why the Solar Outreach Partnerships is helping to reduce all of these little soft-costs that can turn an un-economical solar installation into an attractive solar investment and savings opportunity. Before we talk about schools can do this, let’s quickly remind ourselves about the benefits of solar.
For a bit more background, let’s look at the state of the solar industry in the US. The US is currently 3 rd in the world in total installed capacity, behind Germany and Italy, but China will likely surpass the US this year as may Japan.
Additionally, Germany’s market share is growing and a much more rapid pace than the US. While the US has a total installed solar capacity
Why is Germany installing so much more solar than we are? Well, for one thing, our costs are not competitive with other major solar markets. Germany, the largest solar market in the world, pays about 45% less than we do for the same product.
What’s interesting is that if you break down hardware costs, such as panels and equipment, and non-hardware costs, such as permitting, interconnection, and installation, the actual cost of the hardware is almost equivalent. Where the costs differ significantly are in the non-hardware costs.
About 50% of those costs are what we call “soft costs.” The other 50% is profits, taxes, and overhead.
The remaining 50% of the costs are commonly grouped together as “soft costs”. These soft costs include the cost of handling processes such as permitting and interconnect, marketing costs including customer acquisition, and installation costs including design, financing, and labor costs. In the US, we pay a significant premium on these solar soft costs.
Encourage or require builders and developers to design solar-ready homes and buildings. Minimize rooftop equipment or cluster equipment on the north side of the roof to maximize available open area for solar array placement. Optimize system performance; if the roof is sloped, use the south-facing section; keep the south-facing section obstruction-free if possible. Plan for the structure to be oriented to avoid shading from trees and buildings, especially during peak sunlight hours. Install a roof that will support the extra loads of a solar array. Record roof specifications on drawings; this shows solar designers that the roof was designed to support solar and can prevent a potentially costly engineering study. Improve building energy standards and policies for local government facilities to make solar energy systems more cost effective and increase local government’s use of clean energy. Equipment procurement policies that mandate using the most energy-efficient equipment available, such as devices that meet federal ENERGY STAR requirements Life-cycle cost analysis for all materials and equipment Green building and solar-ready design for all new buildings and major renovations Installing PV or SWH systems on suitable municipal facilities. Financial incentives – covered very soon…
Much of the previous discussion deals with the existing building inventory. However, there are tremendous opportunities to plan for solar, not only in subdivision or development design, but also in the aspect of preparing newly constructed buildings to accommodate solar in the future. There are significant economic benefits in doing so. In this example, costs are calculated for making a residential building Solar Ready for a 10-kW PV system. For this example, there are three main measures associated with making the building Solar Ready that will increase the cost of construction, including: Upsizing the electrical panel Installing conduit and wire from the roof to the electrical panel Installing a combiner box on the roof in which to combine the wiring for the panels. Costs for these measures were estimated using the 2011 Edition of RS Means Construction Databook. By these calculations, the building can be made PV ready for $1,729 at the time of construction. If there were no Solar Ready preparations made at the time of construction, the same preparations would cost $4,373 at the time of solar installation. The measures would be more costly after construction for a number of reasons: Installing the measures during construction could be completed by a general contractor already on the site, instead of requiring a team of solar contractors to travel to the site; estimated 40% savings in associated labor costs. In this example, there are vents that need to be relocated and the roof exposure cannot be optimized, so panels need to be installed on multiple pitches. Both these examples would require additional expenditure. The costs of the materials was assumed to be the same whether the work is done during or after construction. In this example, the measures completed during construction saved $2,644.
Retail power purchase agreements (PPAs) and leases are often available for all sectors (e.g., residential, commercial, tax-exempt). State (utility regulation, incentives) and federal policy (tax credits) influence what may be offered in a given state at any given time. Developers may only operate in certain markets (i.e., states). At retail level, around 50% of systems are installed under a PPA rather than a customer-owned structure. Under third party ownership, tax and other incentives accrue to system owner (i.e., solar service provider) rather than the site owner. From the customer perspective, the real difference between a lease and a PPA is that under a lease some performance risk may be placed on the customer (level of risk would depend on the lease contract). The customer pays the same amount regardless of what the system produces and if the system under-produces, the customer pays a higher utility bill. Under a PPA the customer only pays for what they get. Leases however may be simpler for a residential customer to understand. There's a small pool of solar financiers offering residential PPAs -- SolarCity, SunRun, Sungevity, & BrightGrid in NY. Each of these firms has their own spin on the business plan; for example, SolarCity does the actual installation while SunRun and Sungevity work with a network of installers. Drawbacks to third-party ownership may include high transaction costs for commercial scale installations, thus third-party ownership in the commercial context has typically been limited to systems of 250 kW and above. At the same time, it could be that transaction costs are lower than for other financing methods (e.g., debt issuance). Public agencies may also experience a variety of other obstacles when electing to enter into a PPA (debt restrictions, contracting restrictions, competitive procurement requirements, site access). Local governments may be able to facilitate the use of third-party financing options by forming partnerships with solar service companies, pursue local (e.g., permitting) or state law (legality of model) to make the local environment more attractive. Local governments may also pursue projects under a third-party ownership arrangement themselves. Resources The Lex Helius publication has a detailed description of the considerations which need to be addressed when entering a PPA: http://www.stoel.com/webfiles/lawofsolarenergy.pdf The NREL PPA Checklist for State and Local Governments is also a good resource for local governments interested in this arrangement: http://www.nrel.gov/docs/fy10osti/46668.pdf
TPO Benefits to Property Owners – eliminate cost of upfront purchase and place most risks on solar provider Benefits to Solar Provider – allows for use of capital from tax equity investors to pay for upfront cost of installation ITC + MACRS can help fund 40-45% of upfront cost of project Commercial PPA Challenges: Host cessation : long-term deals require assurance that party entering into PPA will remain owner of property Offtaker Credit : deals typically require corporate guarantee High Transaction Costs : Especially true for small commercial projects with thin margins Landloard-Tenant Split Incentive : complicated arrangements for sharing with tenants due to state regulatory differences over “sale of power”
The hybrid model is a financing option by which a public entity issues a government bond at a low interest rate and transfers that low-cost capital to a developer in exchange for a lower PPA price. Under the model, a public entity issues an RFP seeking a solar developer to build, operate, and own a solar project or portfolio of projects on public buildings ( local hosts ). The administrator sells bonds to finance the development costs of the PV installation. The administrator then enters into both a lease-purchase agreement with the winning bidder (transferring ownership of the project to the developer for tax and incentive purposes) and a PPA (on behalf of the local hosts) to buy the electricity from the system. Though federal regulations require bonds issued for private use be taxable, the good credit rating of the local government will make its borrowing rates less than that of the developer. Developer’s lease payments fully cover the bond obligation – these payments are lower than the loan payments they would have made if they borrowed the capital themselves. Cost savings mean the solar developer can offer lower PPA price while still making a strong return on investment. This is a complicated model which would typically have high transaction costs. Consequently, it may be best suited for a series of “bundled” projects to spread out the transaction costs over a larger base. Some jurisdictions have been able to secure extremely low PPA prices as a result of this arrangement.