These charts on the economics and economic impact of solar energy in Minnesota present a stunning visual defense of an aggressive solar energy standard.
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8 Vivid Charts – 8 Reasons for a Solar Energy Standard in Minnesota
1. Why a Minnesota Solar Energy Standard
is a Great Idea
In 8 Vivid Charts
Presentation by John Farrell
ILSR’s Director of Democratic Energy
jfarrell@ilsr.orgMay 13, 2013
2. 0%
2%
4%
6%
2014 2016 2018 2020 2022 2024 2026 2028 2030
NV
AZ
NM
CO
IL
NJ
DE
MD
Minnesota’s Proposed Solar Standard in Comparison
NM other state standards
MN HF956
DOE SunShot goal
14% by 2030
NJ
NM other state benchmarks
NM
CO
MD
AZ
DFL
Ind.
GOP 76%
83%
99%
Support for using more solar power
John Farrell, 5/1/13
MN
House
Senate
3. $0
$0.05
$0.10
$0.15
$0.20
2014 2016 2018 2020 2022 2024
Projected Average Cost of Solar in Minnesota
Average Solar Electricity Cost
Average Solar Cost with FederalTax Credit
Residential Retail Electricity Price
Commercial Retail Electricity Price
John Farrell, 5/3/13
Annual % Change
-7%
+2%
$ per kilowatt-hour
4. 0¢
3¢
6¢
9¢
12¢
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Rapidly Rising Average Retail Electricity Prices in Minnesota
¢ per kilowatt-hour
John Farrell, 5/13/13
Residential (c/kWh)
Commercial (c/kWh)
Industrial (c/kWh)
5. 5¢
6¢
7¢
8¢
9¢
10¢
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
How the Proposed 1.33% Solar Assessment Compares to
Rising Average Retail Electricity Prices (MN)
1.33%
Actual utility rate increases
Proposed solar assessment
¢ per kilowatt-hour
John Farrell, 5/13/13
6. 0¢
1¢
2¢
3¢
4¢
5¢
Blended Cost of MN Solar Incentive Program
2014
2015
2016
2017
2018 2019 2020 2021 2022 2023 2024 2025
1,370 MW
2.7¢/kWh
FederalITCreducedto10%
52
58
66
84
107
137
176
138
138
138
138
138
AVG
TOTAL
John Farrell, 5/6/13
4% by 2025 for IOUs only
7. $0
$100
$200
$300
$400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
John Farrell, 5/8/13
The Proposed Solar Energy Standard Leverages
Much More Private Capital than Public Incentives
2.76:1 3.09:1
3.53:1
2.57:1
2.92:1
3.35:1
3.95:1
Private Capital
Public Incentive 4.90:1
6.59:1
10.2:1
16.2:1
34.8:1
Megawatts
installed 52 59 66 84 108 138 177 138 138 138 138 138
8.94-to-1Weighted Average:
8. California
Arizona
New Jersey
Nevada
Colorado
North Carolina
Massachusetts
Pennsylvania
Hawaii
New Mexico
NewYork
Maryland*
Ohio
Illinois
Missouri
California
Arizona
New Jersey
Nevada
Colorado
North Carolina
Massachusetts
Pennsylvania
Hawaii
New Mexico
NewYork
Maryland*
Ohio
Illinois
Missouri
0 12,500 25,000 37,500 50,000
Solar Capacity and
Solar Jobs, 2012
750 1,500 2,250 3,000
Installed MW
Jobs
More MW, more jobs
Data from the Solar Foundation
9. Solar energy from a home
rooftop in Minnesota can
be produced for 18.4¢ per
kilowatt-hour, right where
we need it.
Electricity from Xcel Energy’s 3 new peaking
natural gas power plants will cost between 28¢
and 65¢ per kilowatt-hour*
Solar for Minnesota
*California Energy Commission, 2010; Does not include cost of new transmission lines
0¢
10¢
20¢
30¢
40¢
50¢
60¢
70¢
18.4¢
up to 65¢
John Farrell, 5/8/13
Cost of Energy