Deliberative Workshop on Solar PV Development in Hong Kong: Prospects and Policy Challenges
Briefing Document
Organiser
Funding Organisations
Supporting Organisation
Co-organisers
Workshop A: 4th November 2016 (9:30a.m.-1:00p.m., Friday)
Workshop B: 5th November 2016 (2:00-5:30p.m., Saturday)
Hong Kong Baptist University
Table of Contents
Section Page
1. Introduction
1.1 Foreword
1.2 Greetings and Special Remarks
1.3 Workshop Overview and Programme
1-3
1
2
3
2. Solar PV: Why Does It Matter to Hong Kong? 2.1 Major Global Solar Trends That Matter to Hong Kong
2.2 Major issues for Hong Kong’s Solar PV Development
Key issue 1. Solar Potential in Hong Kong
Key issue 2. Technical Challenges: Intermittency and Grid Connection Limitations
Key issue 3. Tariff Impacts and Costs
Key issue 4. Policies and Regulations
4-15
4-6
7-15
8
9-10
11-12
13-15
3. Five Possible Solar PV Policies in Hong Kong 3.1 Feed-in Tariff (REFiT)
3.2 Net Metering
3.3 Solar Leasing
3.4 Renewable Energy Certificates (RECs)
3.5 Renewable Energy Bonds (RE Bonds)
16-21
17
18
19
20
21
4. Looking Forward: Solar Policy Roadmap for Hong Kong 22
Appendix
Appendix 1:Estimates of Hong Kong’s solar PV output potential to the total electricity
consumption
Appendix 2:Large cities and Hong Kong’s Estimated Rooftop Solar PV Potential
23
23
Appendix 3:Highlights from Surveys in Local Studies on Renewable Energy Support 24
Appendix 4:Large Cities’ Experiences: How Policies Can Help Overcome Barriers 25-29
Appendix 5:Comparison Table of Strengths, Weaknesses, and Risks among the Five Possible Solar
Policies for Hong Kong
30
Appendix 6:Key References for Strengths, Weaknesses, and Potential Risks among the Five
Possible Solar Policies for Hong Kong
31-32
1.1 Foreword
1. Introduction
Energy and particularly electricity, are of vital importance to and touches upon every aspect of our society.
Yet, our growing global energy demand is driving climate change, as well as many environmental, economic
and societal problems. Solar Photovoltaic system (Solar PV system), once an expensive energy technology,
has flourished worldwide to become one of the sources of energy investments. Some major overseas cities
such as New York City, London and Singapore, have come up with creative small to large scale applications
of solar PV. In Hong Kong, solar PV development has been discussed for many years but yet its deployment
has been only limited in scale. Solar PV has a huge potential to play in powering Hong Kong with
sustainable energy, but we currently face a crossroads as to how to best facilitate large-scale solar PV
deployment in light of Hong Kong’s unique geographical and urban characteristics.
This workshop aims to address some of these challenges by empowering Hong Kong citizens from all
walks of life, to share and reflect your views on this important matter.
As the current chairman of the Energy Advisory Committee of the HKSAR Government, I applaud your
interest in and am delighted to welcome you to this deliberative workshop. Your input will not only help
shape Hong Kong’s energy future, providing invaluable opinions and raising critical questions on Hong
Kong’s solar PV opportunities as well as policy challenges, but they matter and are of great importance to
the Government and relevant stakeholders in charting out Hong Kong’s solar PV policies.
I hope that you thoroughly enjoy the deliberative process, and become more engaged citizens on energy and
other matters of public importance in Hong Kong.
Professor Raymond So Wai Man Event Moderator
Chairman, Energy Advisory Committee of the HKSAR Government
Dean of School of Continuing Education, Hong Kong Baptist University
“Your input will not only help shape Hong Kong’s
energy future, providing invaluable opinions and
raising critical questions on Hong Kong’s solar
PV opportunities as well as policy challenges, but
they matter and are of great importance to the
Government and relevant stakeholders in charting
out Hong Kong’s solar PV policies.”
Prof. Raymond So Wai Man
1
1.2 Greetings and Special Remarks
We sincerely thank you for your taking part in this unique deliberative workshop. This workshop is important
because you are helping to pioneer the role that solar PV can play in Hong Kong’s energy future.
This workshop features small group discussions, expert Q&A exchange, and an interactive session to consolidate
the day’s discussion towards Hong Kong’s solar PV policy roadmap. This well-structured workshop process
follows the design of the Stanford-based Deliberative Polling method, which aims to empower citizens to
discuss, debate, and in turn, reach a more informed decision upon the opportunities and challenges for solar PV
development in Hong Kong.
This briefing document is an essential component of Deliberative Polling. This document aims to provide a
concise overview and will facilitate your understanding of the global status of solar PV and Hong Kong’s recent
developments and major issues upon deployment. Please feel free to refer back to this document coming into and
during the workshop.
We would like to sincerely thank Hong Kong Baptist University for providing the venue, and gratefully
acknowledge the experts who extensive reviewed this briefing document. This workshop would not have been
possible without the generous funding from Greenpeace East Asia, the World Wide Fund for Nature Hong Kong,
and the Research Committee at Hong Kong Baptist University.
We hope that this will be an invaluable learning opportunity.
Yours Truly,
The Organising Committee
Daphne Mah
Director, Asian Energy Studies Centre
Assistant Professor, Department of Geography
Hong Kong Baptist University
Kevin Lo
Assistant Professor
Department of Geography
Hong Kong Baptist University
Peter Hills
Research Fellow
Asian Energy Studies Centre
Hong Kong Baptist University
Zhou Qiming
Professor, Department of Geography
Director, Centre for Geo-computation Studies
Hong Kong Baptist University
Alice Siu
Associate Director
Center for Deliberative Democracy
Stanford University
Michael K.H. Leung
Associate Dean and Professor
School of Energy and Environment
City University of Hong Kong
Alex Lo
Assistant Professor
Department of Geography
The University of Hong Kong
2
Deliberative Workshop on Solar PV Development in Hong Kong:
Prospects and Policy Challenges Workshop A: 4
th November (9:30a.m.-1:00p.m., Friday) // AAB 1312
Workshop B: 5th
November (2:00-5:30p.m., Saturday) // AAB 505 Hong Kong Baptist University, Kowloon Tong, Hong Kong
Time and Venue Session
Workshop A
4th
Nov, Friday
Workshop B
5th
Nov, Saturday
9:15-9:30 a.m. (Outside AAB 1312)
1:45-2:00 p.m. (Outside AAB 505)
Registration Refreshments will be served
9:30-9:45 a.m. (AAB 1312)
2:00-2:15 p.m. (AAB 505)
Welcome and Introductory Remarks Workshop A: Moderated by Prof. Raymond So
Chairman, HKSAR Government Energy Advisory Committee
Workshop B: Moderated by Dr. Alice Siu
Associate Director, Center for Deliberative Democracy, Stanford University
9:45-10:30 a.m. (See below for
arrangements)
2:15-3:00 p.m. (See below for
arrangements)
Small Group Discussion
10:30-11:30 a.m. (AAB 1312)
3:00-4:00 p.m. (AAB 505)
Expert Q&A
11:30-11:35 a.m. 4:00-4:05 p.m. Introduction to the Hong Kong Online Solar Map Demonstration
11:35-11:45 a.m. (Outside AAB 1312)
4:05-4:15 p.m. (Outside AAB 505)
Coffee Break
11:45-12:30 p.m. (See below for
arrangements)
4:15-5:00 p.m. (See below for
arrangements)
Small Group Discussion
12:30-1:00 p.m. (AAB 1312)
5:00-5:30 p.m. (AAB 505)
Plenary and Interactive Session Looking Forward: Solar Roadmap for HK
End of Workshop
1:00-1:30 p.m. (AAB 1214)
5:30-6:00 p.m. (AAB 1214)
[Optional] Hong Kong Online Solar Map Demonstration
Small Group Discussion Venues Workshop A
4th
Nov, Friday
Workshop B
5th
Nov, Saturday
Group A AAB 1312 AAB 505
Group B AAB 1217 AAB 506
Group C AAB 704 AAB 507
Disclaimer: no part of this briefing document may be cited or quoted without the permission of the organising team. All enquiries
regarding this briefing document should be directed to Dr. Daphne Mah by email at [email protected] or phone at 3411-7753. If
there are slight discrepancies between the English and Chinese versions, the content in the Chinese version shall prevail.
1.3 Workshop Overview and Programme
3
2. Solar PV: Why Does It Matter to Hong Kong?
Major Trend 1: Solar PV is expected to generate a significant amount of
global electricity in the next few decades, and small-scale PV systems
are expected to increase.
The International Energy Agency (IEA)
projects that solar power could generate
22% of the world’s electricity by 2050.
Moreover, Bloomberg New Energy Finance
predicts that over 10% of global solar PV
generating capacity will be from small-scale
PV by 2040.
Figure 1. Solar PV now makes up more than half
(US$161 billion) of total RE investments, compiled by authors
from Frankfurt School-UNEP Centre and BNEF (2016)
Did you know? Solar PV made up
only 2.9% of global total power installed
capacity in 2015. However, that share is
expected to increase in the next few
decades.
From 2009 to 2015, the average levelised cost of electricity
(LCOE) for crystalline-silicon solar PV panels dropped by
more than 50%, from just above US$300/MWh to below
US$150/MWh (Figure 2).
While utility-scale solar PV is becoming increasingly
competitive (IRENA, 2015), small-scale PV has been
recently reported to have reached grid parity in all major
developed economies (BNEF, 2016), which means that the
price of generating electricity from small-scale
deployments are less or equal to the price of purchasing
electricity from the electricity grid.
Major trend 2: Solar PV systems have dropped substantially in recent
decades, making it an affordable energy technology.
Summary of key points:
Once an expensive technology, solar photovoltaic (PV) technology has become substantially cheaper, more
mature, and constitute a majority of renewable energy (RE) investments. Costs are expected to further decline.
Solar PV has become an important component in RE investments. Solar PV systems are expected to generate almost a
quarter of global electricity by mid-century.
Solar PV systems on average emit less than fossil fuel-based energy technologies, and there are now a variety of
approaches, such as recycling components, in light of its environmental impact from production to
decommission.
Figure 2. Global average levelised cost of electricity for wind and solar from 2009 to 2015 in (US$/kWh) (Frankfurt School-UNEP Centre and BNEF (2016))
2.1. Major Global Solar PV Trends That Matter to Hong Kong
4 4
Solar PV Panels and Environmental Impact
Solar PV is one of the less polluting greenhouse gas emitting technologies, and is less polluting than
fossil fuel technologies such as coal or natural gas (Figure 4)
Solar PV panels may result in some environmental impact and lifecycle emissions prior to and after
its operation. These emissions include extraction of raw materials and energy used to process and manufacture the
whole PV panel system
Potential environmental impacts after the solar panel’s lifetime can be mitigated by proper disposing
or recycling of component parts, while some places such as the EU have developed specific guidelines
to handle such waste
Major Trend 3: PV module costs are estimated to be reduced by
half in the next 20 years.
Figure 3. Past module prices and projection to 2035 based on a learning
curve from Nelson, Gambhir and Eikins-Daukes (2014)
Figure 4. Estimates of lifecycle
greenhouse gas emissions for broad
categories of electricity generation
technologies, modified from IPCC
Studies by the IEA and Imperial College London have
predicted that solar PV modules costs will continue to
decline over the next 20 years, from around US$1/Watt
in 2015 to about US$0.3-0.5/Watt in 2035 (Figure 3)
Solar Fact: What are solar PV panel
components made of?
A majority of solar panels, most of
them crystalline-silicon (c-si), are
mainly composed of glass. The
remaining materials are composed of
polymer, aluminium, silicon, copper
as well as other metals.
5
Solar PV has been limited in scale in Hong Kong. 2.2 Megawatt (MW) of solar PV is installed
Hong Kong as of 2012, which constitutes roughly 0.02% of solar PV’s total contribution to the fuel mix (see details in
Figure 5)
Notable Major solar PV installations such as those in Figures 6a to d are deployed across
institutional, commercial, and residential buildings
Despite Hong Kong’s geographical limitations and the lack of an explicit target for renewable
energy, renewable energy projects have been mentioned in recent major publications by the HK government (Figure 7)
Figure 6b. CLP’s 180kW system
on Town Island near Sai Kung
Figure 6a. HEC’s 1 MW system
at the Lamma Island Power
Station
Figure 6c. A 350kW system at the
new EMSD Headquarters in
Kowloon Bay
Figure 6d. A 198kW building
integrated system at Science Park
Around 60
Number of customers with small-scale
grid-connected renewable energy systems
Figure 5. Hong Kong’s Electricity Generation Mix in 2012
(Environment Bureau, 2014)
Around 230 Hong Kong’s 12,645MW electricity system has been primarily
based on fossil fuels (over 70%) and nuclear power (23%).
Renewable energy and oil contribute to the remaining 2%.
Both utilities plan to replace coal-fired electricity generation
with natural gas generation in the next few years.
Solar PV: The Hong Kong context
6
Figure 7. Hong Kong’s
energy and climate
consultation documents
and reports in recent years
2.2 Major Issues for Hong Kong’s
Solar PV Development
Summary of key points:
Hong Kong has good solar potential, and peak electricity demand corresponds with high solar PV output
Hong Kong has world-class supply reliability and high electricity reserve margin. Depending on penetration
level, solar PV could affect grid stability and reliability, but measures can be adopted to resolve these
challenges
Although electricity tariffs are likely to be affected when integrating solar PV into the electricity grid, some
studies found that Hong Kongers are supportive of and generally willing to pay more for renewable
electricity
Policies and regulations are needed to overcome the various barriers impeding solar PV development
Major cities worldwide have set solar PV targets and made concrete plans to facilitate solar PV deployment
Solar Potential
Tariff Impacts and Costs
Technical Challenges:
Intermittency and Grid
Connection Limitations
Policies and Regulations
Key issues and barriers to major uptake of solar PV in HK
The scale and rate of solar PV uptake in Hong Kong hinges upon many factors, but four major issues need to be
examined for a major and high rate of solar PV uptake in Hong Kong:
7
Key Issue 1: Solar Potential in Hong Kong
Why is this issue important?
Understanding the solar potential allows policy makers to determine what is potentially
achievable by harnessing solar energy. This can aid in setting the solar PV target and
enhancing solar PV deployment within a specific timeline.
What do we know?
Hong Kong has good solar PV potential. Numerous studies (see details in Appendix 1) have estimated
Hong Kong’s solar PV potential to range from 5.9% all the way to 35%. You can compare Hong Kong’s
potential with other solar PV estimates of major global cities in Appendix 2.
Hong Kong’s daily peak day load matches when solar power output is highest during the daytime
(Figure 8). In 2012, HK’s peak day load for a local peak day was 2pm (9,001 MW) and another evening
peak load at 8pm (8,936 MW). The afternoon peak load happens right when there is peak solar power
production. Local PV studies suggest that an optimal panel tilt angle can generate high solar PV output
during with peak and near-peak loads during the daytime.
Hong Kong’s receives good solar radiation year round. According to Hong Kong Observatory, solar
radiation is readily available year-round, and receives the highest amount of solar radiation in the
summertime.
Figure 8. Local peak day load and solar power output
curve, compiled by authors from (HK Government,
2013a) and Wang & Huang (2014).
Peak electricity demand: This the amount
of electricity that is most demanded at that
particular period of time.
What else do we need to know?
Is Solar PV a viable energy option in Hong Kong?
Hong Kong lacks available land and rooftop space and is In a dense environment. Under such
conditions can we still develop solar PV?
8
Key Issue 2: Technical Challenges:
Intermittency and Grid Connection Limitations
Figure 9. Supply reliability of Hong Kong and other major cities
from (Environment Bureau, 2015b)
Why is this issue important?
One of the key issues is how to best integrate high volumes of solar PV into the electricity
while ensuring system stability
Intermittency and difficulty in predicting solar power generation may compromise the reliability of
the electricity grid
Numerous measures exist to address intermittency and predictability of solar PV output
Under a high penetration of intermittent solar PV, the utility’s electricity system may receiving too
much or too little of electricity from solar PV, resulting in electricity demand and supply mismatch
What do we know?
Both utilities provide world-class standard of supply reliability (Figure 9) and have high
electricity reserve margins respectively (52% for HKE and 26% for CLP in 2014). Hong Kong’s solar PV
installed capacity is 0.02% of Hong Kong’s fuel mix in 2012.
As a general rule of thumb for grid stability and safety, local electricity networks can
accommodate up to 15% of penetration from renewable sources ). Integrating solar PV, similar to
other intermittent renewable energy sources, could result in grid instability depending on its level
of penetration into the electricity grid.
Utilities can adopt some common measures that have been used in other places to address the
problem of intermittency (see Figure 10).
Reserve margin is the amount of
unused available capability of an
electricity system as a percentage of
total capability.
Intermittency refers to the varying
output of a solar PV (or any renewable
technology) with season, weather, or
time of day.
9
What else do we need to know? What are the potential technical challenges (e.g. grid connection) for major uptake of
solar PV?
What would be the impacts on the grid with different level of solar penetration? How
will solar PV affect the stability and supply of electricity in the electricity grid?
Figure 10. Some common measures to address grid instability due to intermittency (from Perez et al., 2016).
Some Solutions to Ease Grid instability upon
High Solar PV Penetration
Technique 1 - Electric Storage Excess solar PV output can be stored in the form of
electricity storage during daytime and be used overnight
to help ease the electricity demand load.
Technique 2 - Curtailment Solar PV output is curtailed, which means it is turned
down to minimise the disturbance that excess solar PV
output can have on the grid.
Technique 3 - Geographical Dispersion If solar PV generation is dispersed locally or regionally,
the weather may affect the variability of solar PV
output variability.
Technique 4 - Load Shaping Utilities can encourage consumers to use more
electricity when solar PV electricity (daytime) is
abundant and discouraging when there is little to none.
This is usually done through time-varying tariffs,
thereby shape electricity consumption patterns (the
load) to other times of the day when electricity is less
demanded.
電力儲存
縮減
區域性發展
太陽能的
協調作用
調節用電高
峰
10
Key Issue 3: Tariff Impacts and Costs
Why is this issue important?
Renewable electricity costs are in general a few times higher than traditional electricity
costs
Tariffs matter, as tariff rates and structures are based on a whole set of considerations and
factors from fuel costs to transmission charges
Solar PV may reduce additional generation costs and ease pressure to increase tariffs by
reducing peak electricity demand
Is Renewable energy worth paying for? Increased renewable energy generation will
increase tariff costs, but can reduce air pollution and greenhouse gas emissions, and offset
some significant economic losses and social costs (for example, public healthcare spending)
What do we know?
Hong Kong’s electricity tariff is quite low compared to other major cities (Figure 11)
One of the major barriers to solar PV development is the unknown tariff impact and public interest
in their willingness to pay for renewable electricity
According to Consumer Council’s preliminary modelling based on assumptions of Feed-in Tariff
similar to other Asian countries, all Hong Kong electricity consumers could pay for an introduced
5% Feed-in Tariff through an increase by less than 3% on electricity tariffs
Recent local studies (see details in Appendix 3) indicate that Hong Kongers are supportive of and
generally willing to purchase for renewably generated electricity
Solar PV system prices have fallen significantly. Between 2010 to 2015, solar PV system prices have
dropped by a cumulative 60%. At the same time, the global installed capacity of solar PV has
increased nearly five times to 227 gigawatts (see Section 2.1). However, the cost of installation in
Hong Kong has remained high due to initial installation and repair costs and long payback period1
When solar PV output and electricity demand is highester during the daytime, solar PV electricity
may often be sold for a higher price (learn more about Feed-in Tariffs in Section 3.1)
1 On the rooftop of a typical 700 square feet village house, it is estimated that 6 solar PV panels (the average size of a solar panel is 1.65 m2) could be installed. In line
with current market prices, the total electrical equipment cost is estimated as HK$55,000. The actual total electricity output would be 1,560 kWh (about 4.27 kWh per day), and the actual annual electricity saving could be HK$1,560 (assuming the tariff is HK$1 per kWh). Thus, the payback period would be about 35 years.
11
Figure 11. Electricity tariff of Hong Kong1 and
other major cities from Environment Bureau
(2015b)
What else do we need to know? What are the estimated tariff impact and costs on electricity tariffs upon large-scale
solar PV uptake (e.g. 5-10% of Hong Kong’s fuel mix)?
How can the government more effectively regulate such tariff impacts? How can
the government address the issue of inequity/cross-subsidies if we are to implement
a policy to facilitate solar PV deployment (e.g. Feed-in Tariff)?
Do you know how much you pay for electricity? A Glance at Tariffs
Customer Unit of electricity Customer Unit of electricity
Residential Tariff $0.89-$2.01* Residential Tariff $0.92-1.85#
Non-Residential
Tariff $1.06-1.23*
Commercial, Industrial
Miscellaneous Tariff $1.30-1.48
Large Power Tariff Depends on demand
and power
consumption
Maximum Demand
Tariff
Depends on load and
power consumption Bulk Tariff
Note: Both CLP and HEC customers are charged on a block tariff system.
*CLP offers an Energy Savings Rebate to residential and
non-residential customers of low consumption. They can
save anywhere from 15.2-17.2 cents per unit of electricity.
In 2015, about 35% of residential and 44% of non-
residential customers received this rebate
12
# Since 2013, HEC has been offering a Super Saver Discount,
where residential customers with consumption are entitled to a
5% discount if they consume not more than 100 units of
electricity
Key Issue 4: Policies and Regulations
Why is this issue important?
Policy support enables solar PV to overcome multiple barriers, and better compete with
conventional generation technologies such as coal and natural gas in the electricity market
(refer to Section 2.1)
On a global scale, different types of solar PV policy options for governments have emerged
(see details in Section 3 )
What do we know?
Several local studies have identified multiple barriers that impede PV deployment in HK
(Figure 12)
CLP and HEC, two geographical monopolies (Figure 13), are regulated by the Scheme of
Control Agreements, which links power generation to rates of return of the two utilities to
their fixed asset investment, and could provide strong incentives for decentralized power
generation such as solar PV.
Some large cities such as New York City and Singapore have already set solar PV targets.
To promote solar PV development, they have set comprehensive plans and policies (Figure 14;
please refer to details in Appendix 4).In Hong Kong, we almost have no solar PV policies.
13
Institutional and
Regulatory Barrier
Lack of regulatory
incentives
Social Barrier Lack of community
and stakeholder
participation
Market Barrier Inadequate service
infrastructure
Economic Barrier Long payback period and
high upfront costs
Technical Barrier
Space constraints
Ensuring grid access for RE producers
Figure 12. Multiple barriers impeding
Hong Kong’s solar PV development
Kowloon, New Territories
and outlying islands
Hong Kong
Island and
Lamma Island
Figure 13. CLP and HEC’s respective service areas
Service Area
14
What else do we need to know?
What sort of regulatory changes are needed or barriers are to be overcome to facilitate more solar PV deployment?
How should the Scheme of Controls Agreement with the two utilities be modified to incentivise solar PV deployment?
Figure 14. The experiences of other large cities:How they used policies to overcome unique barriers and challenges
Seoul Singapore New York City Tokyo London Hong Kong Daily
Solar
Radiation
(kWh/m2)
Population
(million)
Solar
Target in
MW (year)
Solar PV
Capacity in
MW (year) Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Enacted Policies
REFiT
Net Metering
Solar Leasing
RECs
RE Bonds
Five Possible Solar PV Policies in Hong Kong 3.
Overview of the Five Possible Solar PV Policies
This section presents an overview of the features, strengths, weaknesses and risks of five possible solar policies for Hong
Kong. We will focus and consider these five possible policies at the workshop. To better help you compare these five
policies, we have assembled a comparison table of the strengths, weaknesses and potential risks among these five policies
in Appendix 5. Should you wish to learn more in detail about each of the raised points, you may consult Appendix 6for the
key references.
The government offers a long-term contract (eg. 10 to 20 years) to renewable
energy producers, in which the producers can be provided with a fixed but
favorable subsidy per-kWh (which usually is a higher price than the
conventional tariff).
This billing mechanism credits solar energy system owners for the electricity
they add to the grid. In a net-metered home, the credit accumulated from solar
electricity will offset the electricity consumed from the grid. Customers are then
billed for their “NET" electricity use.
Feed-in Tariff (REFiT)
Net Metering
Interested end-users do not need to buy the solar system, but can rent from a grid
company or an energy service company through contractual agreements with a fixed
price. End-users can use the solar system to generate electricity for their own uses, sell
surplus electricity to the grid, or buy electricity from the grid. Government can play an
enabling role in nurturing this green industry, by, for example, creating domestic market
demand through commitment to installing solar in government buildings.
REC is a tradeable energy commodity that recognises a certain amount of
generated renewable electricity. Renewable energy producers can benefit from
trading certificates with utilities. RECs are used to verify utility compliance with
renewable portfolio standards (RPS) and to substantiate claims made by voluntary
purchasers of green power.
Qualified issuer(s), such as the government or utilities, publicly issue(s) bonds
to raise funds from all sectors, which should be designated to finance certain
renewable energy projects such as utility-scale PV farms.
Solar Leasing
Renewable Energy Certificate (REC)
Renewable Energy Bonds (RE Bonds)
16
3.1 Feed-in-Tariff (REFiT)
What is a Feed-in-Tariff (REFiT)? The government offers a long-term contract (eg. 10 to 20 years) to renewable energy producers, in which the producers will be
provided with a fixed but favorable subsidy per-kWh (which usually is a higher price than the conventional tariff).
Strengths Well-proven in expanding solar capacity, markets and
domestic industries, as well as delivering social,
economic, environmental and security benefits
Financial investment security over a period of time, a
stable price and lowered investment risk
Can encourage steady growth of small to medium-scale
producers
Low transaction costs and easy of financing and entry
Weaknesses One challenge is how to set REFiT; as
the market developments (e.g. solar PV
costs are reduced), governments and
utiilties need to adjust REFiTs over time
or consumers may face unnecessarily
high prices
Potential Risks May increase tariff costs
Once the policy becomes implemented and tariffs are reduced over time, some solar PV investors and
stakeholders may oppose these reductions, which may bring about political risk
Non-solar PV owners may cross-subsidise solar PV owners
Requires specific policy design and stability in remuneration: the success of REFiT quite depends on the
investment behaviour of solar PV investors
Features of REFiT
① Renewable energy producer will be offered a fixed
but favorable subsidy per-kWh, e.g. HK$2 per-kWh
② The subsidy could be a long-term stable offer
③ The generation systems could be connected to the grid
Note: You can compare these strengths, weaknesses and risks with
other possible policies in Appendix 5.
17
3.2 Net Metering
What is net metering? Net metering credits solar energy system owners for the electricity they add to the grid. In a net-metered home, the credit accumulated
from solar electricity will offset the electricity consumed from the grid. Customers are then billed for their “NET" electricity use.
Strengths Solar PV owners who generate excess electricity
(eg. households or local businesses) may sell it to
the utility company and help offset a part of their
electricity bill
Easy to administer
May facilitate the setting of solar PV tariff in the
long run
May encourage investors (such as industrial and
residential users) to develop small to medium
sized solar PV systems
Weaknesses Less effective on promoting utility-
scale systems
Non-solar PV owners may cross-
subsidise solar PV owners
Usually not enough by itself to
advance market penetration especially
more expensive RE such as solar PV
Potential Risks May increase electricity tariff costs
Lowers investment security
Utilities may lose revenue as consumers who self-generate electricity may use less of grid-supplied electricity
Utilities may risk facing increased recovery costs from stranded costs
(i.e. declining value of electricity-generating assets over time)
Features of Net Metering
① Self-consumption of solar power
② Co-existence of power generation
③ A smart meter system is required
④ The solar system is connected to the grid
⑤ Particularly important for small-scale
household solar generators systems
Note: You can compare these strengths, weaknesses and risks with
other possible policies in Appendix 5.
18
3.3 Solar Leasing
What is solar leasing? Interested end-users do not need to buy the solar system, but can rent from a utility or an energy service company through contractual
agreements with a fixed price. End-users can use the solar system to generate electricity for their own uses, sell surplus electricity to
the grid, or buy electricity from the grid. Government can play an enabling role in nurturing this green industry, by, for example,
creating domestic market demand through commitment to installing solar in government buildings.
Strengths Well- proven to facilitate rooftop solar deployment
May reduce PV adoption upfront costs
Building owners receive benefits of solar energy without actually
owning the system
Building owners bear minimal to no operation and maintenance
responsibilities, and such leasing arrangement may reduce or
remove technology risk
As the model lowers the cost of installation, this accommodate
more potential solar PV adopters by income, housing types,
geographic area
Investor reaps potential tax benefits (eg. tax credits)
Weaknesses
Lack of financial feasibility in small-
scale systems
Due to its long-term nature, may
incur penalties if contract is broken
Potential Risks Component risks such as with its use and roof damage
Market risk due to default and non-payment, as well as small-scale energy service company providers
possibly going out of business; energy service companies entering the market would need good credibility or
meet minimum credit requirements
Stakeholders may be vulnerable to solar PV underperformance, unanticipated operation and maintenance
costs, delays in receiving incentives and grid-interconnection approvals
Features of Solar leasing
①Lessees do not need to buy solar equipment
②Lessees have the right to use solar equipment
③ Lessees may have a monthly profit or loss
Note: You can compare these strengths, weaknesses and risks
with other possible policies in Appendix 5.
19
3.4 Renewable Energy Certificates (RECs)
Weaknesses Usually require RE/solar-specific mandates such as
renewable portfolio standards
Demanding in design, administration, and
enforcement, as well as well-structured regulatory
system for verifying RECs
Possible opposition or tradeoff with concentrated
development by focusing solely on resource-rich
locations
Long term contracts not a guaranteed element of
RECs
Difficult to fine-tune market design in the short term
What are renewable energy certificates (RECs)? A REC is a tradeable commodity that recognises a certain amount of generated renewable electricity. Renewable energy producers
can benefit from trading certificates with utilities. RECs are used to verify utility compliance with renewable portfolio standards
(RPS) and to substantiate claims made by voluntary purchasers of green power.
Features of RECs
① An invisible but tradable energy commodity.
② Should be verified by a third-party entity.
③ REC prices may fluctuate as it is subject to market
demand and supply.
④ Trading can occur within or across borders. Mostly
traded within the jurisdiction of a country/region, or across
borders such as between countries (e.g. Sweden-Norway) or
among different states (e.g. in USA).
Strengths
Frees RE producers from the need to
deliver renewable electricity in real
time to end-users
Relies on market forces to allow REC
purchasers to seek lowest -cost RECs
Provides accurate, durable record of
produced and tradable RE
Can reduce cost of renewable portfolio
standard compliance
Facilitate transactions across regional
borders
Risks Low market acceptance of REC due to its
complexity
Risk in demand uncertainty, price fluctuation
in thin markets and minimal incentive for
transaction
Tendency to create stop-and-go development
cycles
Note: You can compare these
strengths, weaknesses and risks
with other possible policies in
Appendix 5.
20
3.5 Renewable Energy Bonds
What are renewable energy (RE) bonds? Qualified issuer(s), such as the government or utilities, publicly issue(s) bonds to raise funds from all sectors, which should be
designated to finance certain renewable energy projects such as utility-scale PV farms.
Features of RE Bonds
① Has a clear objective towards solar and renewable energy development.
② The credibility of the bonds should be monitored by a third-party
certification entity.
③ The bonds require a clear and transparent management system and
publication of annual financial reports.
④ Bondholders’ investments and benefits should be assured.
Strengths
Tap into capital available in bond market and
channel towards financing RE
Flexibility in issuance
Actively hedge against climate policy risks in
a portfolio that includes emission-intensive
assets
Enhance issuer’s reputation and attract new
investors
Weaknesses Incur issuing and
management costs
Potential Risks Greenwashing
Issuer bears performance risk
Risk due to the limited market and small bond sizes
Risk of cash flow instability
Lack of proper legal framework and information transparency may heighten investment risks
Note: You can compare these strengths, weaknesses and risks with
other possible policies in Appendix 5.
21
4. Looking Forward: Solar PV Policy Roadmap for Hong Kong – What are your thoughts?
Short-term Target (Next 1 to 2 years): the Hong Kong Government
should immediately move forward with REFiT, Net Metering, and Solar Leasing.
Medium-term Target (Next 3 to 5 years): the Hong Kong Government
should move forward with RECs and RE Bonds.
Net
Metering
Solar
Leasing
RE
Bonds
RECs
The Hong Kong Government should promote policies for solar PV
development.
REFiT
Medium Term
(3 to 5 years) Future Solar PV Development in Hong Kong
After 2020
Present 2016
You are encouraged to share your views at the workshop!
Short Term
(1 to 2 years)
Solar PV Policy Roadmap for Hong Kong
What are your thoughts on
the suggested roadmap?
22
Appendix 1 Estimates of Hong Kong’s Solar PV Output Potential to the Total
Electricity Consumption
Appendix 2 Large Cities and Hong Kong’s Estimated Solar PV Potential
Year Author Estimated Solar PV
Potential Output (%) of
total electricity
consumption (year)
Methodology/Remarks
1997
You and Yang (1997)
35% (1995)
Included BIPV (residential, commercial,
institutional) such as rooftops and outer walls
oriented south, east, and west, but excludes
shadow facades of high-rise buildings
2002
EMSD (2002)
17% (1999)
Included BIPV (residential, commercial,
institutional) and non-BIPV such as open space,
roads and railways, airport and non-built areas
such as grasslands and country parks; however,
this estimate did not factor in cloud cover or
shading
2013 Peng and Lu (2013)
14.2% (2011) Included rooftop PV
Took into account of partial shading
2015 Lu (2015) 10.7% (2014) Included rooftop PV
Did not take into account for shading
2015 Wong (2015) 5.9% (2012) This potential was specific to rooftop solar PV;
this study also addressed solar PV deployment
on all open space areas and Government,
Institution and Community facilities, which
could contribute to 6.4% and 1.1% respectively
of HK’s total electricity consumption in 2012
Done with remote sensing, included cloud cover
City Estimates of
Area Availability
(million m2)
Estimated Solar
PV Potential
Installed
Capacity
(GW or GWp)
Estimated Solar PV
Potential of Total
Electricity Demand (year if
applicable)
Sources
New York City 57 5.8 40%1 (Byrne et al., 2015)
London 34.9 2.1-9.2 4.4-19.2% (2008) (Byrne et al., 2016)
Seoul 90 11.25 30% (Byrne et al., 2015)
Tokyo 93.4 - 26.5%2 (Stoll et al., 2013)
Singapore 27-45 5-10 6-30% (2050) (Luther and Reindl, 2014)
Hong Kong 28.6-97.5 4.67-5.973 5.9-35% Refer to Appendix 1
1 Meet 40% of peak demand. 2 Of power equivalent to nuclear generation capacity, and when coupled with electricity storage. 3 These are installation capacity estimates from PengLu (2013)and Lu (2015). YouYang (1997), EMSD (2002) and Wong (2015) respectively
reported total PV potential as generation output (GWh): 10,500GWh, 5,944GWh, and 1224GWh respectively but these were not included in the
estimated range due to the difference in units.
23
Appendix 3 Highlights from Local Studies on
Renewable Energy Support
Over 80% of respondents agreed with the statement, “I would like
to buy “green” electricity” (e.g. electricity generated from
renewable energy)
Almost all (93%) respondents strongly support or support solar electricity
for power generation in HK
Those who are very worried about energy affordability (about 6% of total
people surveyed) expressed support of five policy interventions to
address climate change: grid connection for wind and solar (most
supported at 30% strongly support); transport electrification; efficient
buildings, building retrofits, and government leadership in building
energy efficiency
2013, a report by Civic Exchange
A Snapshot of Hong Kong People’s Attitudes Towards Power Sources and Climate Change
Over 83% agreed that the government should open up the electricity grid
to encourage other investors to participate in RE development
Roughly 66% agreed that the two utilities should purchase electricity
generated from solar PV or biodiesel on institutional buildings (i.e. REFiT)
About 65% of respondents agreed high volume electricity users (e.g.
MTR, large shopping malls, themes parks) should pay more to share the
burden of renewable energy costs; only about 24% agreed that households
should pay more
2015, a survey commissioned by WWF Hong Kong
Survey on Renewable Energy
2012, a research article by Mah and colleagues Consumer Perceptions of Smart Grid Development: Results of a Hong Kong survey
and policy implications
Number of people surveyed: 505
505
Number of people surveyed: 1,002
Number of people surveyed: 1,030
24
Appendix 4 Large Cities’ Experiences: How
Policies Can Help Overcome Barriers
New York City
30 MW
(2014)
350 MW by 2025
on private and public buildings
Urban area: 789 km2
Population (Jul 2015): 8.5 million
Population Density: 10,800/km2
Background and Barriers
In the last decade, solar PV provided a negligible amount of electricity to NYC due to technical and policy
barriers, as well as lack of incentives, standardization or cohesion among agencies and utilities (CUNY, 2016). In
2006, the City University of New York (CUNY), convened stakeholders to collaborate in the drafting and
implementation of solar plans for the city. Working together with the New York City’s Mayor Office of
Sustainability, the New York City Economic Development Cooperation, local utilities, state authorities, and over
30 partners, they formed the NYC Solar Partnership in 2006 (CUNY, 2016). NYC’s was the recipient of The
Solar America Cities Award in 2007 in multiple policy measures to facilitate solar PV adoption (USDOE, 2011).
Policies and Highlights
Net Metering is available through the local utility,
ConEdison
Renewable Energy Certificates* have been in use since
2012, under the Renewable Portfolio Standard for New York
State to support a voluntary market for tradeable RECs and
green power market through a state-administered tracking
system
Green Bonds are being developed by the City’s Comptroller,
which aims to expand the investor base available to the city,
and provides investors an opportunity to participate in
financing green projects towards climate change adaptation,
advancing renewable energy or energy efficiency
NYC Solarize is a program aims to reduce barriers for
communities that have limited access to solar by reducing
acquisition costs through aggregate purchasing campaigns.
To startup a campaign, financial support, marketing
materials, technical assistance and connections to local
partner installers are provided
*Note: a national-level policy
Solar Policies Available
Net Metering
Solar Leasing
RECs
RE Bonds
Solar PV Progress
Solar PV system in
Brooklyn, from USDOE
(2011)
25
Urban area: 1,572 km2
Population (2015): 8.6 million
Population Density: 5,500/km2
8850GWh (2026) of energy
from RE sources (equivalent to 21.3%
of 2014 electricity consumption)
82.7 MW
(2016)
Background and Barriers
Unlike the many regions of the UK which have increased their solar PV installed capacity, London has fallen
behind, with the lowest amount of installed solar PV capacity in the UK. London faces unique challenges in
large-scale solar PV deployment, such as its terraced housing and thin, tall building cityscape, transient housing
population, and low interest in solar PV. A recent publication by the Greater London Assembly has vocally
criticised the Mayor’s office for its lack of leadership and direction in tapping into this underutilized potential.
Solar Policies Available
REFiT
Solar Leasing
RECs
RE Bonds
Policies and Highlights
REFiT* is available at the national level for small-scale
solar PV and other RE
Renewable Obligation Certificates*, under the
Renewable Obligation requires electricity suppliers source a
portion of electricity from renewable sources, and renewable
obligation certificates are issued renewable plant operators
RE:NEW is an award-winning energy efficiency
programme, and has encouraged domestic solar PV
installation. Since its inception in 2009-2010, solar PV has
been installed on over 4,300 homes. Since 2014, more
human resources and technical support has been provided
towards solar PV projects to help organisations quantify
costs and returns, and establish a new framework of suppliers
*Note: a national-level policy
Solar PV Progress
Community solar PV installation in Brixton, from
GLA (2015a)
London
26
Seoul
Urban area: 605 km2
Population: 10.3 million
Population Density: 17,000/km2
Background and Barriers
In 2011, Seoul’s electricity self-reliance and reserve margin was 2.8% and 5.5% respectively, with 31% of
its electricity from nuclear power. The city also consumed around 10% of South Korea’s total energy and
was forecasted to rise. Seoul’s large-scale blackout in September 2011 and the wake of the Fukushima
nuclear accident provided good ground for the Seoul Metropolitan Government to set targets to increase
its energy self-reliance. Subsequently in 2012, they announced “The Comprehensive Plan for One Less
Nuclear Power Plant” which aims to reduce energy consumption by 2 million (tons of oil equivalent),
introduce energy efficiency and conservation measures, and increase renewable energy production. Phase
1 of this Plan was fulfilled in June 2014, 6 months ahead of schedule, and it has now entered into Phase 2
which aims to increase the city’s electricity self-reliance to 20% by 2020.
Solar Policies Available
REFiT
Net Metering*
RECs*
RE Bonds*
Policies and Highlights
Seoul-type FiT is city-wide REFiT provides KRW100
(HK$0.68)/kWh for up to 5 years
Government subsidies and support measures lease
of idle public lands and offer municipal land to cooperatives to
install solar PV systems, provide loans with a preferential annual
interest rate of 1.75% for PV systems of up to 150kW, reduce PV
licensing period from 60 to 30 days and distribute solar PV panels
to small apartment households for electricity production
Renewable Energy Certificates* are available in South
Korea which is similar to the US, by way of an obligatory
renewable portfolio standard for major power producers
*Note: Available at the national level.
Solar PV Progress
200 MW (2020)
84.3 MW (end 2014)
PV system on the rooftop of
Gang Agro-Fisheries Market,
from SMG (2015)
Solar Leasing
27
Tokyo
260 MW
(Fiscal Year 2012)
1 GW (2024)
Background and Barriers
Since the 2011 Fukushima accident, the local government has been implementing both demand-side and
supply-side measures to ensure energy security, and realise an energy-efficient economy and a low-carbon
energy system, firstly by adopting the Vision of Smart Energy City in 2012. The local government has
also emphasised the transition towards distributed generation through solar energy and other renewable
energy sources (TMG, 2013). It also has a number of supportive policies to encourage solar PV uptake.
Urban area: 2,191 km2
Population (2015): 13.5 million
Population Density: 6,200/km2
Solar Policies Available
REFiT
RECs*
Solar Leasing
Policies and Highlights
REFiT(since 2012)* is available for Solar PV and other RE,
and since its implementation, had initially resulted in a large increase
in residential solar PV uptake (2011 and 2012) before overtaken by
non-residential solar PV uptake in 2013
Renewable Energy Certificates* are used in a national
renewable portfolio mandated for electricity power companies since
2003. A voluntary Green Power Certificate scheme is also available
for the private sector
Subsidies for solar PV systems (Fiscal Year 2013-17)
are provided in combination with other RE subsidies (eg. combined
heat and power and building energy management system (BEMS) for
small to medium buildings) to secure distributed energy sources and
to realise the smart energy city vision. A total of roughly 10 billion
yen (equivalent to about HK$ 750 million) has been allocated for
these subsidy programs
“Roof power” Solar Project combines low-interest loans
with low-cost retail plans, making it easy for Tokyo residents to
install solar PV systems with modest initial investment
*Note: a national-level policy
Solar PV Progress
Solar carport, from Bureau of Environment
(2016)
RE Bonds*
28
Singapore
Urban area: 605 km2
Population: 10.3 million
Population Density: 7,600/km2
350 MW (2020) 71.3 MW
(Q1 2016)
Background and Barriers
Despite Singapore’s geographical constraint along with high population density and need to manage grid
stability with large solar PV penetration, Singapore has begun to tap into vast solar resources, which can
help the country meet its emissions targets, import less energy, and reduce peak electricity demand. The
government has launched several government-led initiatives to increase solar PV penetration.
Solar Policies Available
Solar Leasing
Net Metering
RE Bonds
Policies and Highlights
SolarNova is a government-led programme utilizes a solar
leasing business model, by aggregating solar demand across
government agencies, inviting a private energy company to
install, own and operate the system, and selling the electricity
back to the agencies through a power purchase agreement
(EDB, 2016). The first tender of a total solar PV capacity of 76
MW will cover Housing & Development Board blocks and
other government ministries
Regulatory changes were made enhance the existing market
and regulatory framework, such as raising the capacity
threshold for solar energy, clarifying the licensing framework
and streamlining market registration and settlement procedures
Solar PV Progress
Solar PV system on
a Housing and
Development Board
building, from
EMA (2016)
29
Appendix 5 Comparison Table for Strengths, Weaknesses and Potential Risks among the Possible Solar Policies for Hong Kong
Strengths Weaknesses Potential Risks
REFiT Well-proven in expanding solar capacity, markets and
domestic industries, as well as delivering social, economic,
environmental and security benefits
Financial investment security over a period of time, a stable
price and lowered investment risk
Can encourage steady growth of small to medium-scale
producers
Low transaction costs, ease of financing and entry
One challenge is how to set REFiT; as the market
developments (e.g. solar PV costs are reduced), governments
and utiilties need to adjust REFiTs over time or consumers
may face unnecessarily high prices
May increase tariff costs
Once the policy becomes implemented and tariffs are reduced
over time, some solar PV investors and stakeholders may oppose
these reductions, which may bring about political risk
Non-solar PV owners may cross-subsidise solar PV owners
Requires specific policy design and stability in remuneration:
the success of REFiT quite depends on the investment behaviour
of solar PV investors
Net
Metering
Solar PV owners who generate excess electricity (eg.
households or local businesses) may sell it to the utility
company and help offset a part of their electricity bill
Easy to administer
May facilitate the setting of solar PV tariff in the long run
May encourage investors (such as industrial and residential
users) to develop small to medium sized solar PV systems
Less effective on promoting utility-scale systems
Non-solar PV owners may cross-subsidise solar PV owners
Usually not enough by itself to advance market penetration
especially more expensive RE such as solar PV
May increase electricity tariff costs
Lowers investment security
Utilities may lose revenue as consumers who self-generate
electricity may use less of grid-supplied electricity
Utilities may risk facing increased recovery costs from stranded
costs
(i.e. declining value of electricity-generating assets over time)
Solar
Leasing
Well- proven to facilitate rooftop solar deployment from
overseas experiences
Can reduce PV adoption upfront costs
Building owners bear minimal to no operation and
maintenance responsibilities, and such leasing arrangement
may reduce or remove technology risk
As the model lowers the cost of installation, this could
accommodate more potential solar PV adopters by income,
housing types, geographic area, who also reap potential tax
benefits (eg. tax credits)
Lack of financial feasibility in small-scale systems
Due to its long-term nature, may incur penalties if contract is
broken
Component risks such as with its use and roof damage
Market risk due to default and non-payment, as well as small-
scale energy service company providers possibly going out of
business; energy service companies entering the market would
need good credibility or meet minimum credit requirements
Stakeholders may be vulnerable to solar PV underperformance,
unanticipated operation and maintenance costs, delays in
receiving incentives and grid-interconnection approvals
RECs Frees RE producers from the need to deliver renewable
electricity in real time to end-users
Relies on market forces to allow REC purchasers to seek
lowest-cost RECs
Provides accurate, durable record of produced and tradable RE
Can reduce cost of renewable portfolio standard compliance
Facilitate transactions across regional borders
Usually require RE such as solar-specific mandates such as
renewable portfolio standards
Demanding in design, administration, and enforcement, as well
as well-structured regulatory system for verifying RECs
Possible opposition or tradeoff with concentrated development
by focusing solely on resource-rich locations
Long term contracts not a guaranteed element of RECs
Difficult to fine-tune market design in the short term
Low market acceptance of REC due to its complexity
Risk in demand uncertainty, price fluctuation in thin markets and
minimal incentive for transaction
Tendency to create stop-and-go development cycles
RE Bonds Tap into capital available in bond market and channel towards
financing RE
Flexibility in issuance
Actively hedge against climate policy risks in a portfolio that
includes emission-intensive assets
Enhance issuer’s reputation and attract new investors
Incur issuing and management costs Greenwashing
Issuer bears performance risk
Risk due to the limited market and small bond sizes
Risk of cash flow instability
Lack of proper legal framework and information transparency
may heighten investment risks
30
Appendix 6 Key References for Strength, Weaknesses, and Potential
Risks among the Five Possible Solar Policies for Hong Kong
Renewable Energy Feed-in Tariff
CEC. (2016). New Solar Homes Partnership Market Report. Sacramento, USA: California Energy
Commission. http://www.energy.ca.gov/2016publications/CEC-300-2016-005/CEC-300-2016-
005.pdf.
del Río, P., & Mir-Artigues, P. (2012). Support for solar PV deployment in Spain: Some policy lessons.
Renewable and Sustainable Energy Reviews, 16(8), 5557-5566. doi:
http://dx.doi.org/10.1016/j.rser.2012.05.011
Mendonca, M. (2007). Feed-in tariffs : accelerating the deployment of renewable energy. London ; Sterling,
VA: Earthscan.
Rowlands, I. H. (2005). Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for
Canada. Renewable and Sustainable Energy Reviews, 9(1), 51-68. doi:
http://dx.doi.org/10.1016/j.rser.2004.01.010
Net Metering
CEC. (2016). New Solar Homes Partnership Market Report. Sacramento, USA: California Energy
Commission. http://www.energy.ca.gov/2016publications/CEC-300-2016-005/CEC-300-2016-
005.pdf.
Heeter, J., Gelman, R., & Bird, L. (2014). Status of Net Metering: Assessing the Potential to Reach Program
Caps. Golden, Colorado, USA: National Renewable Energy Laboratory.
http://www.nrel.gov/docs/fy14osti/61858.pdf.
Eid, C., Reneses Guillén, J., Frías Marín, P., & Hakvoort, R. (2014). The economic effect of electricity net-
metering with solar PV: Consequences for network cost recovery, cross subsidies and policy
objectives. Energy Policy, 75, 244-254. doi: http://dx.doi.org/10.1016/j.enpol.2014.09.011
31
Solar Leasing
Drury, E., Miller, M., Macal, C. M., Graziano, D. J., Heimiller, D., Ozik, J., & Perry Iv, T. D. (2012). The
transformation of southern California's residential photovoltaics market through third-party
ownership. Energy Policy, 42, 681-690. doi: http://dx.doi.org/10.1016/j.enpol.2011.12.047
Speer, B. (2012). Residential Solar Photovoltaics: Comparison of Financing Benefits, Innovations and
Options. Golden, Colorado, USA: National Renewable Energy Laboratory.
http://www.nrel.gov/docs/fy13osti/51644.pdf.
Tongsopit, S., Moungchareon, S., Aksornkij, A., & Potisat, T. (2016b). Business models and financing
options for a rapid scale-up of rooftop solar power systems in Thailand. Energy Policy(In Press). doi:
http://dx.doi.org/10.1016/j.enpol.2016.01.023
Renewable Energy Certificates
Cory, K. S., & Swezey, B. G. (2007). Renewable Portfolio Standards in the States: Balancing Goals and
Implementation Strategies. Golden, Colorado, USA: National Renewable Energy Laboratory.
http://www.nrel.gov/docs/fy08osti/41409.pdf.
Holt, E., & Bird, L. (2005). Emerging Market for Renewable Energy Certificates: Opportunities and
Challenges. Golden, Colorado, USA: National Renewable Energy Laboratory.
http://apps3.eere.energy.gov/greenpower/resources/pdfs/37388.pdf.
Mendonca, M. (2007). Feed-in tariffs : accelerating the deployment of renewable energy. London ; Sterling,
VA: Earthscan.
Renewable Energy Bonds
KPMG. (2015). Gearing up for green bonds: Key considerations for bond issuers Frankfurt: KPMG.
https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/sustainable-
insight/Documents/gearing-up-for-green-bonds-v2.pdf.
Ng, T. H., & Tao, J. Y. (2016). Bond financing for renewable energy in Asia. Energy Policy. doi:
http://dx.doi.org/10.1016/j.enpol.2016.03.015
OECD. (2015). Green bonds: Mobilising the debt capital markets for a low-carbon transition. Paris:
Organisation for Economic Co-operation and Development.
https://www.oecd.org/environment/cc/Green%20bonds%20PP%20[f3]%20[lr].pdf.
32