- Policies and incentives - Economic analysis of implementation of FiT - Demand analysis and benefits Jessica Glenn, Market Analyst, Global Market Consultants Inc

2. Global Market Demand for PV – 2009

3. Global Demand for PV 2005 - 2013
Market expected to decline 33% in 2009
from 2008’s 5.2GW
Prices expected to decrease 12% in 2009
for installed systems

4. Benefits
Environmental
Utility Benefits
PV Sales
Job Creation

5. Utility Benefits
Portfolio diversification
Stronger position in future as we become less
dependent on fossil fuels

6. PV Sales
Module prices have fallen 12% since 2008
PV sales will be down about 30% globally
for 2009
PV sales expected to increase 22% for 2010

7. Job Creation
The United Nations Environment Program
estimates PV job creation at 7 to 11 per MWp
of solar power installed
Top three jobs created by PV systems:
Manufacturing Operations
Installer
Sales

8. Current Distribution of PV Jobs

9. Support Mechanisms for PV

10. Essential Components
of a Successful FiT System
Long Term Contracts (20+ years)
Price Guarantee
Reasonable rates of return for FiT Consumers
Access to credit line (guaranteed payback period)
Look at Long-Term Planning in conjunction
with other policies
Annual rate must decrease (depending on
technological progress)

11. Essential Components
of a Successful FiT System (cont.)
Flexibility to change with a dynamic
macro environment
State budgets must not interfere
Simple structured
Low managerial/administrative costs
Large investments needed
Private capital, long-term stability of income,
long-term PPA guaranteed

12. Market Barriers for PV
Shortage of information and little consumer
awareness
Insufficient product standards
Inconsistent interconnection, net metering,
and utility rate structures
Inadequate codes and complex and expensive
permitting procedures

13. Market Barriers for PV (cont.)
Inconsistent and insufficient state and local
financial incentives
Lack of flexible and proven financing
mechanisms
Limited education for and insufficient
numbers of trained and experienced
personnel and services

14. German Model
Spread cost equally across all consumers
Not a burden on taxpayers
Works independently from state economies

15. Gainesville Regional Utilities
(GRU) Model
Zoning Guidelines (Alachua County)
Rooftop
Ground Based Systems
Special Exemption
4 – 9 Month Delay
Contracts
Interconnection Agreement
Solar Energy Purchase Agreement (SEPA)

16. Gainesville Regional Utilities
(GRU) Model
Standards
IEEE 1547
IEEE 1262 - 1995
IEEE 929
UL1741
National Electric Code
City of Gainesville Electric Code

17. Gainesville Regional Utilities
(GRU) Model
82,000 Residential Customers
8,000 Commercial Customers
Increase Fuel Charge from 6.1¢/kWh to
6.178¢/kWh (increase of .078¢)

18. GRU FiT Rate and Degression Schedule

19. Breakeven Analysis
Assumptions:
PV System: 25 kW installed capacity
25 year system life expectancy
Produces 36,250 kWh/year
$0.32 x 36,250 = $11,600/year in FiT revenue
Installed cost of system: $132,000
Breakeven at 11 years
14 years profitable operation

20. FiT Income Analysis

21. Success of GRU Model
Currently: GRU is at capacity with 4 MW
of electricity generated from PV
GRU has signed up nearly 100 customers to
install 4 MW of solar panels each year for the
next three years.

22. Local PV Sales from FiT
Gainesville, FL
In Gainesville, currently 35 solar rooftops
since March 1, 2009
Cost of these systems: $30 million

23. Other Applications of FiT in the U.S.
State of California
Green Mountain Power (Vermont)
Eugene Water and Electric Board (Oregon)
WE Energies (Wisconsin)
Madison Gas and Electric (Wisconsin)
Washington State

24. A Well Designed Feed-in Traff Will:
Be designed with long-term contracts
Not be a burden on tax payers
Increase demand and drive costs down by
creating economies of scale
Help the PV industry create quality
technologies with increasingly efficient
performance
Create secure investment options
Spur substantial job creation