Virginia Update on Solar Energy Policies & Programs

Ken Jurman

Virginia Department of Mines, Minerals and Energy

2008 RE Legislative Activities

2009 RE Legislative Activities

Net Metering – 2009 Update

•2000 – Net metering begins. Residential systems up to 10 kilowatts, non-residential capped at 25 kW•2004 - non-residential capacity raised to 500 kW•2006 - extended eligibility to other renewable technologies and permitted lease financing for net-metered systems•2007 - aggregate limit on raised from 0.1% to 1% & Utility required topurchase customer net excess at a rate approved by the Virginia State Corporation Commission. •2008 – SCC established buy-back rate: PJM Interconnection zonal day-ahead annual, simple average locational marginal price.

•2009 - Utility can elect a higher capacity limits for NM facilities;•Permits customers served on time-of-use tariffs to participate;

•Eligible customer-generator owns the renewable energy certificates with option to sell to utility.

InterconnectedRenewables

� 227 PV installations

� 20 small wind installations

� 872 total installed kilowatts:

Kilowatts Installed as of October 2009

0

100

200

300

400

500

600

700

800

900

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Local Option Property Tax Exemption

� Allows counties and localities to exempt, or partly exempt renewable energy system from the property taxes paid each year.

� AS OF 2009 only 19 of 130 counties and cities allow the exemption.

Clean Energy Financing

� Local governments authorized to establish a loan program to provide financing for clean energy improvements to property owners via local ordinance.

Toothless in 2007: Prohibition against covenants restricting solar

� “Except to the extent provided in the

condominium instruments,

declaration, or rules and regulations

duly adopted pursuant thereto, no community association shall enact any provisions restricting solar power or the use of solar energy collection device on units or lots that are part of the development”

2009 Amendment

A few teeth in 2009

Sort of…

The American Recovery and Reinvestment Act of 2009

Virginia’s $86 million

Bundle of Bundle of Bundle of Bundle of

JoyJoyJoyJoy

(and pain…)

$38 Million for Renewables

� $10 million in Competitive Grants for Local Government and School Facilities

� $13 million in Grants for State Government Facilities

� $15 million for in Rebates for Residential/Commercial/Nonprofits

$15 million for Residential, Commercial and Nonprofit Rebates

� Divided (flexibly) between solar thermal, wind and PV.

� $2.00 per watt for PV

� $1.50 per watt small wind

� $1.00 per watt (equivalent) solar thermal

PV Rebate Amounts:

� Residential: 10 kW for PV and wind (based on Va. net metering de minimis).

� Commercial/Nonprofit:� $2.00/watt for 1-10 kilowatts

� $1.75/watt 10-20 kW

� $1.50/watt 20-30 kW

� $1.25/watt 30-40 kW

� $1.00/watt 40 kW up to maximum of 200 kilowatts.

Original Program Requirements

� Solar thermal: certified to meet the Solar Ratings and Certification Corporation’s (SRCC) OG-300

� Photovoltaic/Wind: grid-interconnected and which meet all state requirements under Virginia’s “net metering” regulations.

� Awarded first come-first served basis. Not retroactive.

Installer Requirements

� Must be licensed contractors registered with all relevant agencies to legally perform business in the Commonwealth.

� Must demonstrate proficiency (training, experience, certification, etc.)

� No homeowner do-it-yourself allowed

You win some – you lose some…

� Off-grid installations must be allowed

� OG-300 out the window

� Lower commercial cap

� Requirement to demonstrate competency

� Retroactive back to June 26, 2009

� Homeowner “do-it-yourselfers” allowed

Do it yourself solar thermal…

Initial Breakdown ~$18 million

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

Resid

ential P

VCo

mmercia

l PV

Resid

ential T

herm

alCo

mmercia

l The

rmal

Resid

ential W

ind

Commercia

l Wind

Initial Cleaning ~ $13 million

$0.00$500,000.00

$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00$3,500,000.00$4,000,000.00$4,500,000.00$5,000,000.00

Resid

ential P

VCo

mmercia

l PV

Resid

ential Therm

alCo

mmercia

l Therm

alRe

siden

tial W

ind

Commercia

l Wind

Unresolved “Issues”

� NEPA (“categorical exclusion” for wind < 20kW and ground-mounted PV <60 kW)

� Davis Bacon Wage Act

� National Historic Preservation Act

Questions?