Green Energy Contractor Conference - PowerPoint Presentation

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Green Energy Contractor Conference

Transitioning the Behind the Meter Solar PV Market in CT

November 29, 2018

Panelists

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Moderator:

Emily Basham, CT Green Bank

Emily.Basham@CTGreenBank.com

Panelists:Selya Price, CT Green Bank, Selya.Price@CTGreenBank.comStephen Lassiter, SunrunStephan Hartmann, Ross Solar, A ConEdison Solutions CompanyEd Merrick, Trinity SolarJames Schwartz, Independence Solar 

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Agenda

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Background

Overview and Status of PA 11-80, Section 7

Residential

Commercial

Key aspects and opportunities Structure of tariffProcess of developing tariffImpacts of decisionsOpportunities for contractors to get involved

Goal: Bring contractors up to speed on what’s been determined in the implementation of Section 7 tariffs, what’s left to be determined and the importance of all providing input into the process by which these tariff rates are set.

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Background

Comprehensive Energy Strategy (CES)

finalized early 2018

Senate Bill 9

signed into law as

Public Act 18-50

in May 2018 implementing the CES:

Section 7

tariffs - fixed per kWh rate for 20

yrs

for energy + RECs

Shared Solar Program

- opens the market for 25 MW/

yr

of deployment

Commercial/Institutional Program – ZREC/LREC successor for 60 MW/yr50 MW to ZREC-qualifying, 10 MW to LREC-qualifyingPURA establishes multi-track dockets for tariff-setting, current docket is PURA Implementation of Section 7 (Docket 18-08-33); meaning many aspects of new structure are not yet determinedResidential Program – post-RSIP/300 MW market (starting Q3/Q4 of 2019)PURA currently soliciting joint proposals on interim tariff which can bridge gap between RSIP and tariff structureRetail net metering goes away for new customers, grandfathers RSIP customers through 2039 with net metering

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Residential Overview

Net metering plus RSIP (current compensation)

Net metering at retail rate plus incentive provided through Residential Solar Investment Program (RSIP) administered by CT Green Bank (REC value recovered through SHRECs).

RSIP established in PA 11-80, updated by PA 15-194 to support

deployment of

not more than 300 MW of new residential solar PV in CT on or before Dec.31, 2022

. and…

foster the sustained, orderly development of a state-based solar industry

.

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RSIP has approved 240 MW

as of 11/25/18

(30,000+ projects), and is anticipated

to reach 300 MW of

approved

projects by early Q4 2019, depending on 2019 volume.

Residential Overview

PA 18-50, Section 7 (new tariff structure)

New Compensation Structure

Legislation sets new

structure

, PURA proceedings determine details

Systems up to 25 kW, sized to onsite load, 1-4 family dwelling

Option 1: “buy all, sell all” or “buy all, credit all” (BASA)

Option 2: “net export” or ”use, buy, sell” (UBS)

Netting period for option 2 must be daily, sub-daily or instantaneous

Rate-setting based on 1) competitive solicitation results of larger C&I sector, or 2) average installed cost + “just, reasonable, adequate” customer rate of return. DEEP calculator to support rate-setting.

Possible adders for storage, location, TOU, other priorities in CES.

PURA may establish interim tariff (structure not predetermined

Status/Timing

Utility metering plus billing systems not yet ready for option 2 fully.

Interim tariff likely to be decided by end of 2018 and implemented by mid-2019 to overlap with RSIP and be available until tariff structure is fully implemented

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PA 18-50

t

ariff structures

Metering configurations

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Source: Eversource presentation to PURA 8/17/18

PURA DOCKET 18-06-15: PURA REVIEW OF THE IMPLEMENTATION REQUIREMENTS OF SECTION 7 OF PUBLIC ACT 18-50

Commercial Overview

PA 18-50, Section 7(a)

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Pre-Determined: a) 20

Yr

tariff, b) ≦ 2MW, c) 50 MW/year, d) competitive bids

PA 18-50 Outlines

TBD in PURA Docket 18-08-33

Netting period ≦ 1 Day

Real-time/hourly/daily?

Project size tranches

i

) # of tranches ii) size ranges?

BASA & Self-Consumption (Netting)

How to compare bids? (50 MW/

yr

)Metering optionsReal world implementation?Fixed rate incentivei) Cash and/or bill credit ii) to 3rd Party?LREC/ZREC sized to customer loadHow to define (combine on site meters, future load growth, EVs, etc..)?VNM for Muni, State, Ag3rd party sites?Bid price capWhat level?Other factors allowedTOU pricing, Storage, Grid location?

Key aspects and opportunities

Contractor commentary/discussion

Structure of tariff

BASA vs UBS – customers and opportunities

Netting interval

Self-consumption

Metering configuration and ability to incorporate battery storage

System sizing vs load

Interim tariff

(see next discussion topic)

Aspects unique to commercial projects, including virtual net metering

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Key aspects and opportunities

Contractor commentary/discussion

Process of developing tariff

Residential

If basing tariff on cost-recovery plus rate of return, can use DEEP tariff calculator to support rate-setting process but important to provide feedback on key inputs including installed cost ($/W), utility escalator, rate of return

Timing important to sustain industry through transition - importance of and update on interim tariff

Commercial tariff development process

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Key aspects and opportunities

Contractor commentary/discussion

Impacts of decisions

Assuring that projects are financeable

Economics to customers and to investors

Are revenue streams taxable? If yes, need higher tariff rates.

Allowing for third party payments

Impact of decision around “sell” vs “credit”

Potential impacts to businesses and the state

Jobs, clean energy goals

Perspectives from operating in other states

Impacts and recovery when we don’t get policies right

Concern about tariff-based markets not being robust

Learning curve - don’t currently operate in tariff-based markets

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Opportunities for Contractor

Involvement

Engage with Solar Connecticut, other contractors, and the Green Bank to share your input - pooling knowledge to provide correct information and consistent message to provide the industry perspective into the PURA process

Check the Green Bank PowerClerk login page for RSIP progress toward 300 MW:

https://cgbrsip.powerclerk.com

Engage in PURA dockets:

https://www.ct.gov/pura/

Tariff docket,

18-08-33

.

Upcoming hearing on C&I procurement plan Dec. 4

th

10am at PURA in New Britain

Distribution System Planning Docket,

17-12-03

(has lots of background on utility systems) Sign up for public notification emails*Must Use Internet Explorer for PURA site12

APPENDIX

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Federal Tax Credit for Solar Energy

Solar Investment Tax Credit

(Fuel cells and combined heat-and-power excluded in Dec. ‘15 tax extender package)

*In 2022, residential credit expires and commercial credit stays at 10%

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