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State Solar Policy: 2007-08 Developments & Current Trends
Rusty HaynesN.C. Solar Center
N.C. State University
IREC Annual MeetingOctober 13, 2008
The DSIRE Project
www.dsireusa.org
Database of State Incentives for Renewables & Efficiency
• Created in 1995
• Funded by U.S. DOE
• Managed by NCSU; affiliated with IREC
• Project Scope: policies/programs that promote RE/EE
• Breakdown of Data: ~1,850 total records~790 solar records~715 PV records
Federal Update
• Extended to 12/31/2016• May be used to offset AMT• Extended to utilities
Solar ITC
Residential Solar Credit
• Extended to 12/31/2016
• $2,000 cap removed for PV (1/1/2009)
• May be used to offset AMT
• RPS raised from 9.5% to 20% x 2022 (Tier I)• Solar access law strengthened• PV property tax exemption extended to non-rez PV• S&U tax exemption for solar• New IC standards
• Commonwealth Solar ($68M / 27 MW)• Three separate energy standards (Class I: 4% x 2009 + 1%/year)• New grants and loan programs (TBD)• Net metering raised to 1 MW / 2 MW• Long-term utility solar purchases
State Highlights, 2007-08
Maryland
Massachusetts
• RPS: 12.5% RE, 12.5% “advanced” energy x 2024 • Solar carve-out: 0.5%
• $650M fund for RE/EE• $100M in incentives for homes & small biz• $80M in incentives for solar economic dev• $165M in incentives for non-solar RE & AE (biz, local gvt)• $50M in tax credits for RE/EE/AE projects• Stronger net metering (NEG)
State Highlights, 2007-08
Ohio
Pennsylvania
• Rebates (new): CO (local), CT (PV), MA (PV), MN (SWH)• Rebates (revised): several states adjusted amounts and/or
added small wind• Tax credits (new/improved): GA (35%), KY (small), OR
(limit doubled), PA (15%), VT (30%) • Property tax incentives: AZ, FL, MD, NC, NY• RPS/RPG: MA, MD, OH, / GU, SD, UT• Net Metering (improved): CO, DC, FL, HI, IL, KY, LA,
MA, NY, OH, PA, RI, UT, VT • Interconnection Standards (new/improved): CT, FL, IL,
MD, MI, NC, NM • Solar access (improved): CA, CO, FL, MD, VA
Other State Developments, 2007-08
Rebate Programs PV: 18/20 SHW: 11
Grant Programs PV: 17/24 SHW: 13/15
Production Incentives PV: 3 SHW: 0
Personal Tax Incentives PV: 18/25 SHW: 16/20
Corporate Tax Incentives PV: 22/25 SHW: 17/19
Loan Programs PV: 27/30 SHW: 24/28
Sales Tax Incentives PV: 19 SHW: 14
Property Tax Incentives PV: 27 SHW: 25
Industry Recruitment PV: 14 SHW: 8
State Financial Incentives for Solar
www.dsireusa.org September 2008
State Rebates & PBIs for PV
DE: 50%
$4/W
CT: $4.30-5/W
MA: $2-5.50/W
VT: $1.75-3.50/W
MD: $2.50/W
$2-2.25/W
$3k max≤35%
≤$3.25/W
≤50¢/kWh, 5 yrs.
$1-2.25/W
30%
15 - 54¢/kWh
NY: $3-5/W
40%
NJ: SRECs
www.dsireusa.org September 2008
ME: $2K max
$2-3/W
≤$4.50/W
• 20 state rebate programs
& PBIs*
• 25 state grant programs (not shown on map)
• 21 non-state PBIs (not shown on map)
• 64 utility rebate programs
(not shown on map)
$2.30-4.60/W
* Includes RPS-inspired utility rebate programs in AZ, CO & NV
Varies by project
$10K - $50K
10-20% up to $75K
$60K - $1M
$2K - $10K
50% up to $10K
Direct Incentives for PV, 1997
www.dsireusa.org
(R) Residential; (C) Commercial; (NR) Non-Residential
State Tax Credits for PV
35%
30% (Non-Corp.)
~2.7¢/kWh 10 yrs. (C)
$3/W (R)50% (C)
10% (NR)25% (R)
25% (R) MA: 15% (R)
15%
35%
100% Deduct.
(R)
25% (R)10% (C)
50%
• Credits in 17 states
• Range: 10% - 50%
• FL, IA, MD, NE, OK
have small PTCs (not shown on map)
RI: 25%
www.dsireusa.org September 2008
25%
VT: 30% (C)
35%
$500 (R)
$1K (C)
35%
State Regulatory Policies
• Public Benefits Funds (16+DC & ME) • Renewables Standards/Goals (26+DC & 6 goals)• Net Metering (39)• Solar Access Laws (35)• Green Power Purchasing Policies (10) • Contractor Licensing (9)
Public Benefit Funds for Renewableswww.dsireusa.org March 2008
16 state funds + DC$6.8B by 2017 (est.)
RI: $2.2M in 2008$38M from 1997-2017*
MA: $25M in 2008$525M from 1998-2017*
NJ: $102M in 2008$637M from 2001-2012
DE: $3.5M in 2008$49M from 1999-2017*
CT: $24M in 2008$435M from 2000-2017*
VT: $6.6M in 2008$34M from 2004-2011
PA: $950,000 in 2008$63M from 1999-2010
IL: $5.5M in 2008$99M from 1998-2015
NY: $9.5M in 2008$114M from 1999-2011
WI: $5.5M in 2008$97M from 2001-2017*
MN: $16M in 2008$264M from 1999-2017*
MT: $750,000 in 2008$8.3M from 1999-2009
OH: $3.2M in 2008$63M from 2001-2010
MI: $1.7M in 2008 $25M from 2001-2017*
ME: voluntary contributions$411,000 from 2002-2008
OR: $12M in 2008 $182M from 2001-2017**
CA: $331M in 2008 $4,149M from 1998-2016
D.C.: $400,000 in 2008 $5.1M from 2004-2017*
* Denotes funds that do not have defined expiration dates and do not require future reauthorization or budgetary approval in order to continue operations. (These funds are not scheduled to expire in 2017.)
** The Oregon Energy Trust is scheduled to expire in 2025.
Renewables Portfolio Standards
State Goal
☼ PA: 18%** by 2020
☼ NJ: 22.5% by 2021
CT: 23% by 2020
MA: 15% by 2020 + 1% annual increase
(Class I Renewables)
WI: requirement varies by utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
☼ AZ: 15% by 2025
CA: 20% by 2010
☼ *NV: 20% by 2015
ME: 30% by 200010% by 2017 - new RE
State RPS
☼ Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE
**Includes separate tier of non-renewable “alternative” energy resources
HI: 20% by 2020
RI: 16% by 2020
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
☼ DC: 11% by 2022
DSIRE: www.dsireusa.org September 2008
☼ NY: 24% by 2013
MT: 15% by 2015
IL: 25% by 2025
VT: (1) RE meets any increase in retail sales by
2012; (2) 20% by 2017
Solar water heating eligible
*WA: 15% by 2020
☼ MD: 20% by 2022
☼ NH: 23.8% in 2025
OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)
*VA: 12% by 2022
MO: 11% by 2020
☼ *DE: 20% by 2019
☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
ND: 10% by 2015
SD: 10% by 2015
*UT: 20% by 2025
☼ OH: 25%** by 2025
MA (under development)
AZ: 1.1% by 2007
NV: 1% by 2009
ME: 30% by 2000
IA: 105 MW by 1999
MN: 425 MW by 2002
www.dsireusa.org
Renewables Portfolio Standards, 1997
Solar/DG Provisions in RPS Policies
NM: 4% solar electric by 20200.6% DG by 2015
AZ: 4.5% DG by 2025
NV: 1% solar by 2015;2.4 to 2.45 multiplier for PV
MD: 2% solar electric in 2022
CO: 0.8% solar electric by 2020
DC: 0.386% solar electric by 2022
NY: 0.1542% customer-sited by 2013
DE: 2.005% solar PV by 2019;Triple credit for PV
Solar water heating counts towards solar set-aside
www.dsireusa.org September 2008
WA: double credit for DG
Note: “DG” means distributed generation
NH: 0.3% solar electric by 2014
NJ: 2.12% solar electric by 2021
PA: 0.5% solar PV by 2020
NC: 0.2% solar by 2018
(~7,550 MW by 2025)
MA: TBD by MA DOER
OH: 0.5% solar electric by 2025
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
0
200
400
600
800
1,000
1,200
20
08
20
09
20
10
20
11
20
12
So
lar
Ca
pa
cit
y (
MW
)
NJ
AZ
NM
NV
NC
CO
MD
PA
NH
NY
DC
DE
Largest RPS Markets for Solar in Near-Term: NJ, AZ, NM, NV, NC, CO
California goal of 3,000 MW equals ~ 1.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
NM AZ NJ MD DE NV PA DC CO NH NC NY
20
25
So
lar
Ge
ne
rati
on
/ E
lec
tric
ity
Sa
les
High Low
Most Aggressive RPSs, Required Solar as % of Sales
Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department
The Solar Alliance: www.solar-alliance.org/model_policies
Interconnection Standards
* Freeing the Grid 2008: www.newenergychoices.org
IREC model: www.irecusa.org/index.php?id=87
• Technical issues include safety, power quality, system impacts. Technical issues largely resolved.• Policy issues include legal and procedural considerations. State approaches vary widely.• Best policies adopted by IL, NJ, PA, NM, MD.*
• Allows customers to store any excess electricity generated, usually in the form of a kWh credit, on the grid for later use.
• Available “statewide” in 39 states. State policies vary dramatically.
• Best policies adopted by CO, MD, FL, NJ, OR.*
Net Metering
IREC model: www.irecusa.org/index.php?id=88
* Freeing the Grid 2008: www.newenergychoices.org
Net Metering
State-wide net metering for certain utility types only (e.g., investor-owned utilities) Net metering offered voluntarily by one or more individual utilities
Net metering available in 44 states + D.C.
NH: 100MA: 60/1,000/2,000*RI: 1,650/2,250/3,500*CT: 2,000*
100
DSIRE: www.dsireusa.org September 2008
80,000
100
100
1,000
50
100
4020
2,0001,000
10/100
25 no limit
25/300
25/300
500
VT: 250
NY: 25/500/2,000*PA: 50/3,000/5,000*NJ: 2,000*DE: 25/500/2,000*MD: 2,000DC: 100VA: 10/500*NC: 20/100*
30
10
10050
varies
State-wide net metering for all utility types
* *
*
**
*
*
**
*
**
(Note: Numbers indicate individual system size limit in kilowatts (kW). Some states’ limits vary by customer type, technology and/or system application. For complete details, see www.dsireusa.org.)
25
100
25/2,000
* 25/100 30
*
40*
*
FL: 2,000*
*
25/2,000
(KIUC: 50)
co-ops, munis: 10/25
25
20/100
Solar Access Laws
• 14 states limit or prohibit restrictions that neighborhood covenants and/or local ordinances may impose on the use of solar-energy systems.
(Solar easements allow for the rights to existing solar access on the part of one property owner to be secured from another property owner whose property could be developed in such a way as to restrict the solar resource. Transferred with property title. Most states allow these.)
In Conclusion…State trends:
Dominance of RPS
Super-sized net metering
Regional solar markets
Shift toward PBIs
PPA model
Room for Improvement:
Incentives for non-taxpayers
Utility rate structures
REC-selling opportunities
Market coordination
Federal policy
Wild cards: Credit markets? State budgets? Electricity rates? Technology breakthroughs?
S lar P rtal Solar-Specific Incentive Information
Clickable U.S. Map for Quick Access to PV Incentives
PV Incentive Summary Maps
State-by-State Incentive Comparison Tables
Tax Credits, Rebates, Solar Portfolio Standards, Net Metering
PV Incentive Program Installation Data from IREC
# of Installations, Incentive $ Expenditures, Capacity Installed
Solar Policy Guide
State Program Name Eligibility Incentive Amount Maximum IncentiveREC
OwnershipEligible System Size Funding Source Program Budget
Expiration Date
Project Pre-approval Required
California California Solar Initiative Incentives
All customers of investor-owned and publicly owned California utilities
Varies by sector and system size
Varies by sector and administering utility
Remains with project owner
1 kW minimum Rate-payer funds $3.2 billion over 10 years, beginning 1/1/2007
12/31/2017 Yes
Connecticut CCEF - Solar PV Rebate Program
Non-Commercial customers of United Illuminating Company or Connecticut Light & Power. (Homes limited to four family residences.)
Residential: $5/W (PTC rating) for first 5 kW; $4.30/W (PTC) for next 5 kW, adjusted based on expected performance; Gov't/Non-profit: $5/W (PTC rating), adjusted based on expected performance
Residential: $46,500;Gov't/Non-profit: $50,000Incentives will be subject to a maximum of the customer’s average annual or expected electric usage
Remains with project owner
10 kW maximum Connecticut Clean Energy Fund (public benefits fund)
$11.5M beginning 10/1/2004
When funds are exhausted
Yes
Connecticut CCEF - On-Site Renewable DG Program
Non-Residential Customers of United Illuminating Company or Connecticut Light & Power
$5/W PTC plus $0.02/kWh for projects installed in southwestern Connecticut
$2.5M (plus, potentially, $0.02/kWh for projects installed in southwestern Connecticut). Incentive funding limited to systems with a maximum capacity of 500 kW (PTC).
Remains with project owner
10 kW minimum; Maximum size is limited to the difference between the most recent 12 months’ peak demand and the “base load.” System’s AC generation output may not be sized greater than 80% of the facility’s highest peak load in any one hour.
Connecticut Clean Energy Fund (public benefits fund)
$42.5M program budget beginning 12/1/05
None Yes
Delaware Green Energy Program Incentives
All customers of Delmarva, Delaware EC and customers of participating municipal utilities
50% of installed cost; PV system cost may not be in excess of $12/W
Delmarva: Residential: $31,500; Commercial: $250,000 / Co-ops and Munis: Residential: $15,000; Commercial: $30,000
Remains with project owner
No system size restrictions
Green Energy Fund (Delmarva) , DEC Renewable Resources Fund, Municipal Utility Green Energy Fund (public benefits fund)
Delmarva: ~2.08 million; DEC: Varies by month (FY 07: 207,000); Munis: Varies by month (FY 07: 321,044 across 9 municipals)
New funds allocated monthly
Yes
Florida Solar Energy System Incentives Program
Any resident or entity $4/watt DC Residential: $20,000; Non-residential: $100,000
Remains with system owner
2 kW minimum General Revenue Funds (appropriated annually)
FY 2007-08: $3.5M 6/30/2010 No
Excerpt from State PV Rebate Comparison Table
DSIRE Unique Visitors, 2005-08
0
50000
100000
150000
200000
250000
Feb.
200
6
Feb.
200
5
Aug
. 200
6
Aug
. 200
5
Feb
. 200
7
Feb
. 200
8
Aug
. 200
7
Aug
. 200
8
