5 barriers to and solutions for community renewable energy
TRANSCRIPT
Presentation to Sustainable Economies Law Center webinar on April 30, 2013
Local Energy RulesCity policies that overcome the barriers to community renewable energy
Local Local scale
Local ownership
1%
A Small Fraction
67,000 MW
community ownership
No local ownership
Local ownership
0% 25% 50% 75% 100%
But Popular
very negative negative neutral positive very positive
60% negative
45% positive
http://www.ilsr.org/community-ownership-boosts-support-renewables/
Total Jobs, by Project OwnershipEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
Absentee
Local Up to 2.8x more
And Profitable
Total Economic Impact, by Project Ownership
Absentee
Local Up to 3.4x more
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
And Profitable
5 Barriers
✤ Tradition
✤ Capital
✤ Cash Flow
✤ Legal
✤ Utility
5
1
Centralized Power
Utility Perspective
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
Reality
“Adapt or Die”
2
Capital
How can they...
...buy this?
Rules for Raising Capital
Type of registration
Upfront Cost
Compliance Costs
Restrictions
Full SEC $100,000-125,000
Over $400,000/yr None
Regulation D $30,000-50,000 $10,000/yr Accredited investors;
prior relationship
Regulation A $50,000-75,000 $10,000/yr $5 million offering
Intra-State $50,000-75,000
$10,000/yr (MN) In-state only
Private Minimal MinimalPrior relationship; no
advertising
Type of registration
Upfront Cost
Compliance Costs Restrictions
Full SEC $100,000-125,000
Over $400,000/yr None
Regulation D $30,000-50,000 $10,000/yr Accredited investors;
prior relationship
Regulation A $50,000-75,000 $10,000/yr $5 million offering
Intra-State $50,000-75,000 $10,000/yr (MN) In-state only
Private Minimal MinimalPrior relationship; no
advertising
3
Cash Flow
0% 25% 50% 75% 100%
20%25%25%30%
Minnesota Commercial Solar Project
Federal tax credit Depreciation State rebate Net metering
Cash Flow
0% 25% 50% 75% 100%
100%
Germany/Gainesville Commercial Solar Project
Feed-In Tariff / CLEAN Contract
4
A.Nonprofit
B.City
C.County
D.Cooperative
E.All of the Above
Which Makes Sense?
Which Makes Sense?
A.Nonprofit
B.City
C.County
D.Cooperative
E.All of the Above
Which One Works?
A.Nonprofit
B.City
C.County
D.Cooperative
E.All of the Above
Which One Works?
A.Nonprofit
B.City
C.County
D.Cooperative
E.All of the Above
F. None of the Above
Cash Flow
0% 25% 50% 75% 100%
20%25%25%30%
Minnesota Commercial Solar Project
Federal tax credit Depreciation State rebate Net metering
Cash Flow
0% 25% 50% 75% 100%
20%25%25%15%15%
Minnesota Nonprofit Solar Project
Federal tax credit Middleman Depreciation State rebateNet metering
Cash Flow
0% 25% 50% 75% 100%
20%25%25%30%
Minnesota Nonprofit Solar Project
Federal tax credit Depreciation State rebate Net metering
5
LEGENDno statutory net metering limit
aggregate limit higher than 1% of peak demand
aggregate limit 1% of peak demand or less
Limits on Total Net Metering
Property Assessed Clean Energy
5-6 years 5-6 years
10-15 years
Utility
PACE program
Federal
Nonprofit
State
Aligns Financing
Simplifies Action
0%
10%
20%
30%
40%
$6.00 $5.00 $4.00 $3.00 $2.00
13%15%
19%
26%
39%
5% 6%8%
12%
22%
Installed Cost per WattData from The Impact of City-level Permitting Processes on Residential Photovoltaic Installation Prices and Development Times (LBNL, 2013)
Better Local Permitting Means Big Solar Savings
...the savings
Approx. year for residential installation* 2013 2017 2023
*From ILSR’s Rooftop Revolution reports: http://www.ilsr.org/rooftop-revolution/
As the cost of solar falls...
from
permitting ris
e
streamlined
Franchise Negotiation
Municipal Aggregation*
Active CCAsNo active CCAs
Municipalize
Lower ratesBetter reliability
Reduce GHG54% renewable
Mandate
1 kilowatt per new houseSOLAR
solar hot water on every new house
More on Community Energy
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