DC Autumn Proudlove Senior Manager of Policy Research - PowerPoint Presentation

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DC

Autumn Proudlove

Senior Manager of Policy Research

NC Clean Energy Technology Center

afproudl@ncsu.edu

State Community Solar Policy Trends

National Conference of State Legislatures Webinar

June 7, 2018

About the NC Clean Energy Technology Center

Public Service Center administered by the College of Engineering at North Carolina State UniversityMission is to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies practices, and policies. Objective research, analysis, & technical assistance – no advocacyManage the Database of State Incentives for Renewables and Efficiency (DSIRE – www.dsireusa.org)

About the

50 States of SolarQuarterly publication detailing state and utility distributed solar policy & rate design changesIncludes changes to state community solar policiesRegulatory actions, bills passing at least one chamberStates, IOUs, public power utilities with >100,000 customersProvide complimentary copies to state legislators and regulatorshttps://nccleantech.ncsu.edu/the-50-states-reports/

Community Solar Policies and Programs

Enacted Community Solar Policy

Active Utility-Involved Program

No Policy

DC

19 States + DC

have a statewide community solar policy

Information from the NC Clean Energy Technology Center and the Smart Electric Power Alliance (2017 Solar Market Snapshot)

Q1 2018 action

No recent action

Q1 2018 Action

on Community Solar

Policy

15 States

took action on community solar policy during Q1 2018

Community Solar Policies

New states are slowly adopting statewide community solar enabling policiesMaryland (May 2015)Oregon (March 2016)Rhode Island (July 2016)Illinois (December 2016)Virginia (March 2017)North Carolina (July 2017)New Jersey (May 2018)

Community Solar Policies

Examples of new policies under consideration in 2018:Louisiana – PSC Staff’s proposed revised net metering rules would allow community net meteringConnecticut – S.B. 336 creates a statewide 300 MW community solar program (passed Senate, but session has adjourned)Virginia – S.B. 313 – creates a new program allowing third parties to own & operate projects – carried over to 2019Maryland – H.B. 878 would have made the pilot program permanent (legislation did not advance)Washington – H.B. 2280 would have created a community solar gardens program

Community Solar Policy Trends

Each state’s policy looks very different – virtual net metering, community solar gardens, utility-led community solarVirtual or Group Net MeteringEx. Massachusetts, New Hampshire, Vermont“Community Solar Gardens”, “Shared Renewables”, etc.Ex. Colorado, MinnesotaUtility-Led Community SolarEx. North Carolina, Virginia

Community Solar Policy Trends

State programs have different system size limits, program caps, and other requirements.StateSystem SizeProgram CapColorado2 MWVaries by utilityDC5 MWUnlimitedHawaii

3 MW (Oahu), 1 MW (others)Phase 1: 8 MW, Phase 2: 64 MWMaryland2 MW200 MW Minnesota1 MWUnlimitedNew Jersey5 MW

TBD by Board of Public UtilitiesNew York5 MWUnlimitedNorth Carolina5 MW40 MW

Vermont500 kW

UnlimitedVirginia2 MW50 MW

Community Solar Policy Trends

States are considering new approaches to credit rates for community solar participantsRetail rate creditAvoided cost rate creditValue of solar creditTime-varying creditLocation-based creditFollows ongoing discussion of net metering credit rates across the country – net metering credit changes typically apply to virtual net-metered systems as wellEx. Maine, Vermont

State

Credit Rate DescriptionColoradoTotal aggregate retail rateHawaiiPhase I: Flat credit rates, based on mid-day ratesPhase II: Time-varying credit ratesMarylandRetail rateMinnesotaValue of solar rateNew Jersey

TBD by Board of Public UtilitiesNew YorkValue of solar rate (includes credit for energy, capacity, demand reduction, locational system relief value, and environmental value)North CarolinaAvoided cost rateOregonValue of solar rate (under development)VermontBlended residential retail rate; all production is subject to credit adjustors (positive and negative) based on system size, site location, and REC ownership

Community Solar Policy Trends

States are working to increase opportunities for low-income customers to participate in community solar programsEstablishing carve-outs within community solar programs for low-income participantsMaryland – 60 MW set aside for projects focused on LMI customersConnecticut S.B. 336 – 10% carve-out for low-income customersProviding incentives for low-income community solar projects or locating projects in designated “environmental justice areas”Illinois Solar for All programMassachusetts SMART programNew York PSC Staff proposal

Community Solar Policy Trends

Developing community solar programs as part of other low-income energy programsCalifornia – pilot project proposed as part of effort to develop alternative energy options for disadvantaged communities in the San Joaquin ValleyNew Hampshire – June 2017 net metering decision called for LMI pilot projects Ensuring low-income housing providers can participateProviding financing options for low-income participantsDeveloping outreach and education plans

Community Solar Policy

TakeawaysVery likely to continue seeing states adopt new community solar policies, primarily through legislative actionLegislative language is important – program details are often worked out in a regulatory proceeding, but legislative framework impacts program successWill continue seeing a focus on credit rates, especially movement toward value-based credit ratesWill continue seeing efforts to increase low-income participation

Thank you!

Autumn ProudloveSenior Manager of Policy ResearchNC Clean Energy Technology Centerafproudl@ncsu.edu