Can solar power work for Minnesota? Yes! A presentation by John Farrell from the Institute for Local Self-Reliance on the potential for solar power to make enormous contributions to Minnesota's electricity system and its economy.

1. Sun Power Minnesota
Joining the International Solar Fiesta
John Farrell, Director
Energy Self-Reliant States and Communities program
jfarrell@ilsr.org
612.276.3456 x210
Presentation on Oct. 13, 2011

2. ILSR’s Unique Perspective
Yesterday Tomorrow
Centralized Power Clean, local power
Solar PV
power plant
Storage Storage
Transmission network
Storage
Storage
House
Local CHP plant
Distribution network House with
domestic CHP
Wind
power
Factory Commercial plant
building

3. World Solar Fiesta
Installed Capacity of Solar PV
40
30
gigawatts
20
10
0
1995 1997 1999 2001 2003 2005 2007 2009
World

4. U.S. Solar Capacity
Installed Capacity of Solar PV
40
30
gigawatts
20
10
5.5% of world
0
1995 1997 1999 2001 2003 2005 2007 2009
World U.S.

5. U.S. Solar Capacity
Installed Capacity of Solar PV
0.9
0.6
gigawatts
0.3
0
1995 1997 1999 2001 2003 2005 2007 2009
U.S.

6. MN Solar Capacity
4 megawatts
0.01% of world

7. Enormous Potential
Most states could get 20% or more from rooftop solar

8. Enormous Potential
24%

9. MN Renewable Potential
CHP
4%
Hydro Rooftop Solar
1% 24%
Wind
71%

10. MN Renewable Potential
4%
Rooftop Solar
1% 24%
71%

11. MN Renewable Potential
Rooftop Solar
24%
Other Solar
76%

12. Land for Solar
Rooftop Solar
24%
100 sq. miles
Other Solar
76%

13. Land for Solar
Rooftop Solar
24%
100 sq. miles
Other Solar
76%
= 2/3 of Ramsey County

14. Value of Local Solar Power
• Cost for power
• Value of energy
• Value of jobs and economic
development
• Value of local ownership

15. Value of Local Solar
Price per kWh
Average Cost, 2011
23 cents per kWh

16. Value of Local Solar
Price per kWh
Including federal tax credit
and depreciation
Average Price:
Minnesota, 2011
Residential 11 cents Average Cost, 2011
Commercial 8 cents
14 cents per kWh
Industrial 6 cents

17. Value of Local Solar
Price per kWh
Including federal tax credit
and depreciation
Average Price:
Minnesota, 2011
Residential 11 cents Potential Cost, 2013
Commercial 8 cents
6.4 cents per kWh*
Industrial 6 cents
*According to tenKsolar

18. Value of Local Solar
Energy
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
-15 cents
4 cents
-20 cents
Cost Energy value Grid benefits Social benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

19. Value of Local Solar
Grid Benefits
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
8.5 cents
-15 cents
4 cents
-20 cents
Cost Energy value Grid benefits Social benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

20. Value of Local Solar
Social Benefits
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
12.5 cents
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
-15 cents
-20 cents
Cost Energy value Grid benefits Social benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

21. Value of Local Solar
Example: Grid Benefits
$0.15 6 cents per kWh
$0.12
in addition to
electricity
$0.09
$0.06
Additional local value
Avoided transmission access
$0.03 Environmental
Time-of-delivery
Brown energy replacement
$0
Palo Alto, CA, municipal utility

22. Value of Local Solar
Jobs
Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

23. Value of Local Solar
Economic Engine
1 MW of solar
$380,000 to economy
8 jobs

24. Value of Local Solar
Economic Engine
5,800 MW of solar
10%
$2.2 billion to economy
46,000 jobs
Total GDP: $258 billion

25. Value of Local Solar
Absentee Ownership = 2 nd
gear
Lost $2.2 billion
$5.5 billion 46,000 jobs
46,000 jobs
Total GDP: $258 billion

26. Value of Local Solar
Local Benefits
Local Ownership Boosts Impact of Renewables
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

27. Value of Local Solar
Local Ownership = high gear
Returned $7.7 billion
$5.5 billion 92,000 jobs
46,000 jobs
Total GDP: $258 billion

28. Barriers to Local Solar
• Tax incentives
• Utility “grid lock”
• Project financing
• Permitting

29. Barriers to Local Solar
Tax Incentives
I want you
if you have taxable income
City
School
Cooperative
Non-profit

30. Barriers to Local Solar
Utility “Grid Lock”

31. Barriers to Local Solar
Financing

32. Barriers to Local Solar
Local Permitting
Vote Solar Project:Permit
• Permit pricing is about 2x higher than
ideal… ~$500 in Minneapolis and ~
$800 in St Paul…Minneapolis has a
terrific submittal guidelines …St. Paul
does not.

33. Barriers to Local Solar
Local Permitting
17%

34. Opportunities for Clean, Local Solar
Cash Incentives

35. Opportunities for Clean, Local Solar
Open Utility Data
Dept. of Commerce
distributed generation process

36. Opportunities for Clean, Local Solar
CLEAN Contracts

37. Opportunities for Clean, Local Solar
4%

38. Thank you!
John Farrell
energyselfreliantstates.org
jfarrell@ilsr.org
johnffarrell
612-276-3456 x210