This document discusses solar energy policy in Massachusetts. It outlines the state's goals to reduce emissions and transition to renewable energy. It describes past solar success through programs like the Solar Carve Out but notes that solar installations have fallen in recent years due to utility-imposed net metering caps. The document argues for increasing renewable energy targets and adopting policies that provide fair compensation for solar energy and encourage further solar development to meet climate goals and create jobs.
2. A Tale of Two Governors
• Background
– Overarching goals of the Commonwealth
– Utility business model
– Role of our government
• Solar Success
• Threats and Concerns
• Solutions
3. Global Warming Solutions Act
• Emission Reduction Goals
– 25% reduction by 2020
– 80% reduction by 2050
• Primary Methods
– Energy Efficiency / Demand Reduction
– Greening the Grid
• Solar energy accelerates our progress
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4. Green Communities Act
• Green Communities Program
• Requires utility investment in energy
efficiency as a resource of first recourse
• Established Stretch Energy Code
• RGGI – Power plant CO2 cap and trade
• Strengthens Renewable Portfolio Standard
• Retail Net Metering for Solar
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6. Solar Carve Out Program
• 400 MW target established in 2010
• Solar Renewable Energy Certificates
• 1 SREC for every 1 MWh of solar
• Program exceeded 400 MW goal in 2013!!!
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446 MW
7. Solar Renewable Carve Out II
• SREC II program starts Mar 2014
• New target of 1,600 MW (3.4% of total demand)
• But net meter caps hit Mar 2015
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11. Net Metering Caps Hit – Mar 2015
• Solar projects on
hold in 175
communities – for
over a year
• Gov. Baker
proposes drastic
cuts in net metering
compensation for
modest cap increase
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13. Current Net Metering Caps
• Solar projects on hold
in 230 communities
• Two thirds of all
Massachusetts
communities
• National Grid, Unitil,
WMECO territories
• Gov. Baker sees no
need for a cap increase
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16. Rate Case
• $100 million rate increase
– followed by $50 million rate increase per year
• Impose new demand charges & eliminate
time of use rates for solar customers
– Lowers net metering credit revenue by 40%
– Existing facilities are not grandfathered
• Impose new fixed charges on solar (MMRC)
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17. Electricity Bill Primer
• Energy is measured in kWh
– 1 gallon of gasoline = 36.6 kWh
– Usage Charges ($ / kWh)
• Power is measured in kW
– 1 horsepower = 0.75 kW
• Demand Charges ($ / kW)
– Typically the highest demand in any 15 minute
period over the last billing cycle
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18. Demand Charges & Time Of Use
• Time of use rates give customers
clear incentive to optimize demand
during system peak periods
– Lowers cost of electricity for all
– Fair compensation for solar
• Peak demand charge set at customer
peak not system peak
– No value in lowering costs or for solar
– Same 24 hours a day for billing cycle
– Customers don’t have demand meters
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21. Free Electricity Anyone?
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On a sunny &
windy day during
March of 2017
everyone in
New England got
their electricity for
free!
22. Solar benefits all ratepayers, not just those with solar
GROWING OUR SOLAR-POWERED ECONOMY
Fair compensation for all the values solar provides,
and fair compensation to the grid for services
24. Other Solar Benefits
• Improved health
• 14,500 local jobs
• Keeps energy dollars local
• Fewer transmission lines & pipelines
• Lower emissions & less fracking
• Environmental justice
• Stable energy prices
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25. All kWh are not created equal
Energy
efficiency
Demand
Management
≠
27. RPS Solutions
It’s time to increase the
Renewable Portfolio
Standard to maintain
the Commonwealth’s
leadership on clean
energy and climate
50% by 2030 RPS
20% by 2030 Solar
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29. Solutions – New Business Model
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• Change the utility business
model
• Only chance of changing the
utility business model is if the
Governor takes on this mission
• That isn't going to happen unless
voters like you make this a key
election issue
• For the Governor and all elected
officials
30. Talk to your Legislator about good solar policy
Consider benefits of solar as well as the costs
• Net Metering and Solar Task Force report shows every $1 invested in
solar yields $2.20-$2.70 in benefits
• Solar benefits ALL ratepayers by lowering energy supply prices,
diversifies our energy porIolio, avoiding need for investment in new
infrastructure, genera$ng power more efficiently, avoiding air pollu$on
• Solar creates jobs, builds healthier communi$es and expands tax bases
• Solar programs involve NO risk to ratepayers, i.e. solar only gets paid
when it works, and encourages private capital to invest in new local
genera$on, which is badly needed
GROWING OUR SOLAR-POWERED ECONOMY