Community solar financing models allow for increased participation in solar development among previously unaccessible sectors. This presentation features IREC's best practices review of community solar programs around the nation.
IREC: Community renewables: best practices, issues & solutions
1. Community Renewables:
Best Practices: Issues & Solutions
Joseph F. Wiedman
ASES National Solar Conference
Phoenix, AZ
May 19, 2010
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2. IREC
• 501(c)(3) non-profit working to expand opportunities for
the sustainable development of renewable energy
• Current projects:
– Net metering rules and Interconnection standards
– Third-party ownership of renewable energy resources
– Community renewable power policies
– Smart Grid, vehicle electrification, and integration of storage
– Workforce training and development for the renewables industry
• Represented by Keyes & Fox, LLP
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3. Community Renewable Power
• Current status in most states - Single system serves a single onsite
participant
– Excess generation is net metered for participant’s benefit
• Community Renewables - Single system serves multiple participant(s)
– Policies used to distribute benefits:
• Meter Aggregation
• Joint Billing
• Virtual Net Metering
• Community Ownership
• Utility Ownership
– Not addressing
• Joint purchasing programs, e.g. Portland, 1BOG
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4. Meter Aggregation
• One customer
• Load and
generation are
not on same
Customer’s energy load meter
• Load and
generation are
Customer’s best sites for PV on contiguous
property
• Cost to run
new line =
$600,000
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5. Joint Billing/Virtual Net Metering
• Multiple tenants
• Single System
Single System • System is
located onsite
• Each tenant has
a separate meter
• Cost of
rewiring to put
Multiple Tenants in master meter
= $60,000
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6. Joint Billing/Virtual Net Metering
Ideal locations for a • Multiple home
single large PV system owners / renters
• Single System
• System is offsite
• Shading, tenent
status, structural
issues limits onsite
generation
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7. Policy States Number of Distance between generation Administration
Approach Participants and participants
Meter OR, PA, One • OR, RI, WA – within the service territory Utility applies bill
Aggregation RI, WA, CA participant of an electric utility credits to
• PA – located within two miles of the designated accounts
*APS in AZ generation source
*Xcel in CO • CA – on government property within
geographic boundaries of local government
and within same utility service territory
Joint Billing VT Multiple • VT – within the service territory of an Utility issues a joint
participants electric utility bill and customer
representative bills
participants
Virtual CA, MA, Multiple • CA – on low-income, multitenant property Utility applies bill
Net Metering ME, RI participants • ME, MA, RI – within the service territory credits to
of an electric utility designated accounts
Community ME, WA Multiple • ME – requires minimum 51% ownership by Investors
Ownership investors in-state interests. Systems receive either (i) administer payment
150% REC credit, or (ii) long term power and incentives
sale contract with utility
• WA –incentive program for jointly-owned
systems providing retail power 7
8. Utility Offerings
• Typically local utility invests in a solar energy system and sells
shares to members
• Net metering credits are available either as a share of production or
as a fixed amount using virtual net metering
• Current status: Ashland, Oregon; Ellensburg, Washington;
Sacramento Municipal Utility District, Sacramento, CA; St. George,
Utah; Florida Keys Electric Cooperative, Marathon, FL offer
programs
• Benefits: system economics can come close to mirroring onsite
economics
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9. Community Renewables in the States
9 States
currently have
state-wide
community
renewables
activity
States with statewide States where
nearly all utilities States with
community renewable
have programs active proposals
power programs 9
10. Overview of IREC’s Community
Renewable Power Concept Proposal
• Guiding principles:
– Participants should have an experience as close as possible to
investing in an onsite system
– Community renewables should be additive to successful onsite
renweables programs
• Current Proposal
– Allocation of benefits => virtual net metering
– Administration of credits => utility administration
– Financing options => direct ownership, third-party ownership,
community ownership and utility ownership allowed
– Compensation for wheeling => compensation for wheeling is
heavily dependant on rate design and the structure of overall
program 10
11. IREC Resources
Assistance to Commissions and other stakeholders in
developing community renewables programs – please contact
jwiedman@keyesandfox.com
State policies and maps at www.dsireusa.org
IREC website: www.irecusa.org
Keyes & Fox LLP: www.keyesandfox.com
Thank You!
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