Sun Power MinnesotaJoining the International Solar Fiesta

John Farrell, DirectorEnergy Self-Reliant States and Communities program

jfarrell@ilsr.org612.276.3456 x210

Presentation on Oct. 13, 2011

ILSR’s Unique Perspective

Centralized PowerYesterday Tomorrow

Transmission network

Distribution network

House

Storage

Local CHP plant

Commercialbuilding

Factory

Storage

Storage

Storage

Solar PV power plant

Windpowerplant

House with domestic CHP

Clean, local power

World Solar Fiesta

0

10

20

30

40

1995 1997 1999 2001 2003 2005 2007 2009

gigawatts

World

Installed Capacity of Solar PV

U.S. Solar Capacity

0

10

20

30

40

1995 1997 1999 2001 2003 2005 2007 2009

gigawatts

World U.S.

5.5% of world

Installed Capacity of Solar PV

U.S. Solar Capacity

0

0.3

0.6

0.9

1995 1997 1999 2001 2003 2005 2007 2009

gigawatts

U.S.

Installed Capacity of Solar PV

MN Solar Capacity

4 megawatts0.01% of world

Enormous Potential

Most states could get 20% or more from rooftop solar

Enormous Potential

24%

MN Renewable Potential

Wind71%

Rooftop Solar24%

CHP4%

Hydro1%

MN Renewable Potential

71%

Rooftop Solar24%

4%

1%

MN Renewable Potential

Other Solar76%

Rooftop Solar24%

Land for Solar

Other Solar76%

Rooftop Solar24%

100 sq. miles

Land for Solar

100 sq. miles

= 2/3 of Ramsey County

Other Solar76%

Rooftop Solar24%

Value of Local Solar Power

• Cost for power

• Value of energy

• Value of jobs and economic development

• Value of local ownership

Price per kWhValue of Local Solar

Average Cost, 2011

23 cents per kWh

Price per kWhIncluding federal tax credit

and depreciation

Average Cost, 2011

14 cents per kWh

Average Price: Minnesota, 2011Average Price:

Minnesota, 2011Residential 11 centsCommercial 8 cents

Industrial 6 cents

Value of Local Solar

Price per kWhIncluding federal tax credit

and depreciation

Potential Cost, 2013

6.4 cents per kWh*

*According to tenKsolar

Average Price: Minnesota, 2011Average Price:

Minnesota, 2011Residential 11 centsCommercial 8 cents

Industrial 6 cents

Value of Local Solar

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost Energy value Grid benefits Social benefits

Energy

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

4 cents

$4/Watt

Value of Local Solar

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost Energy value Grid benefits Social benefits

Grid Benefits

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

4 cents

8.5 cents$4/Watt

Value of Local Solar

-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost Energy value Grid benefits Social benefits

Social Benefits

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

12.5 cents

$4/Watt

Value of Local Solar

Example: Grid Benefits6 cents per kWh

in addition to electricity

Palo Alto, CA, municipal utility

$0

$0.03

$0.06

$0.09

$0.12

$0.15

Brown energy replacementTime-of-deliveryEnvironmentalAvoided transmission accessAdditional local value

Value of Local Solar

Jobs

Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

Value of Local Solar

Economic Engine

$380,000 to economy

8 jobs

1 MW of solar

Value of Local Solar

Economic Engine

Total GDP: $258 billion

$2.2 billion to economy

46,000 jobs

5,800 MW of solar

10%

Value of Local Solar

Absentee Ownership = 2nd gear

Lost $5.5 billion46,000 jobs

Total GDP: $258 billion

$2.2 billion46,000 jobs

Value of Local Solar

Local BenefitsLocal Ownership Boosts Impact of Renewables

Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Value of Local Solar

Local Ownership = high gear

Returned $5.5 billion46,000 jobs

Total GDP: $258 billion

$7.7 billion92,000 jobs

Value of Local Solar

Barriers to Local Solar

• Tax incentives

• Utility “grid lock”

• Project financing

• Permitting

Tax IncentivesBarriers to Local Solar

I want youif you have taxable income

City

School

Cooperative

Non-profit

Utility “Grid Lock”Barriers to Local Solar

FinancingBarriers to Local Solar

Local Permitting

• 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.

Vote Solar Project:Permit

Barriers to Local Solar

Local Permitting

17%

Barriers to Local Solar

Opportunities for Clean, Local Solar

Cash Incentives

Opportunities for Clean, Local Solar

Open Utility Data

Dept. of Commerce distributed generation process

Opportunities for Clean, Local Solar

CLEAN Contracts

Opportunities for Clean, Local Solar

4%

Thank you!

John Farrellenergyselfreliantstates.orgjfarrell@ilsr.orgjohnffarrell612-276-3456 x210