florida rps & solar dick lowry assoc. manager of government relations 7/26/07
TRANSCRIPT
Florida RPS &
SolarDick Lowry
Assoc. Manager of Government Relations7/26/07
2006 Worldwide Market Share
No. 1 in worldwide production – 6 years running
Solar cell manufacturer since 1959
100,000+ completed residential systems operating worldwide
Sharp26%
A15%
B11%
C10%
D9%
E7%
F6%
G6%
H5%
I5%
Clean Energy
• No Air Pollution
• No Water Pollution
• No Noise Pollution
• No Solid Waste
• No Radiation Risk
• No Transmission
Lines
• No Cooling Water
PV Market Growth Will Mitigate Carbon...and Boost Jobs
EPIA / Greenpeace, Solar Generation, September 2006
PV Installations and Jobs Created
-
10,000
20,000
30,000
40,000
50,000
60,000
1995 2000 2005 2010 2015 2020 2025
AnnualPV MW
Installed
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
PV JobsCreated
Annual Installed Capacity [MW]
Estimated Jobs
PV Installations and CO2 Reductions
-
10,000
20,000
30,000
40,000
50,000
60,000
1995 2000 2005 2010 2015 2020 2025
Annual PV MW
Installed
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
Tons CO2
Annual Installed Capacity [MW]
Estimated Reduction of CO2
Investment and High Quality Jobs
• Estimated 23 new jobs per added MW of PV manufacturing capacity (REPP)
• California - 450 companies , approximately 4,000 jobs (CalSEIA)
• Germany – 3,500 companies, 20,000 jobs (German Ministry of Environment)
Component Mfg
Systems Integration
System Installation
Sales & Finance
Product and System Eng’g
Service & Maintenance
PV Market Growth Spurs Price Reduction
► Costs of solar PV have dropped by 73% in the past 2 decades
Solar Energy is the Most Abundant U.S. Energy Resource
Florida Sunshine Resource 2X Today’s Largest Market - Germany
Strong Public Support For Solar in Florida
21 State RPS Policies
*LBNL, 2007
What Makes an RPS Work for Solar?
•Explicit solar share
•Tradeable SRECs
•ACP mechanism
•Provision for LT contracts
•Provision for small systems
Solar Carve-Outs and Multipliers
*LBNL, 2007
Solar Incentive Results To Date
• Credit Multipliers– WA: no real impact on solar to date, or expected– DE: no real impact on solar to date, or expected– MD: no real impact on solar to date, or expected– NM: some activity to support solar, but few results to
show as of yet• Solar Carve-Outs
– NJ: 18 MW PV in 2006 (27 MW cumulative)– NY: 2.7 MW PV in 2006 (9 MW cumulative)– not significantly impacted by RPS set-aside, yet– AZ: 1.8 MW PV in 2006 (16 MW cumulative); 1 MW solar
thermal plant– CO: 0.9 MW in 2006 (1.8 MW cumulative)– TX: 0.7 MW in 2006 (2.2 MW cumulative)– not significantly impacted by RPS set-aside, yet– NV: 2.6 MW in 2006 (3.5 MW cumulative); 64 MW solar
thermal plant– DC: no real impact, yet– PA: no real impact, yet
*LBNL, 2007
SRECs
• Tradeable RECs– Who has them?
• AZ, CA*, CO, CT, DE, D.C., ME, MD, MA, MN, MT, NV, NH, NJ, NM, OR, PA, RI, TX, VT, VA, WA, and WI
– How do They Work?• Utilities required to purchase pro-rata share of
annual RPS requirements (REC’s and SREC’s) – Companies or individuals who purchase solar
systems can sell their SRECs to the utilities » This leverages private investment to
meet RPS
*In Development
ACP – Alternative Compliance Payment
• ACP– Who has one?
• NJ, MD, PA, D.C., DE, CT, CO, MA, MT, RI, TX
– How do They Work?• A declining penalty for not meeting RPS
requirements is placed on the utilities– This sets a value for SRECs, as utilities are
then willing to purchase SRECs for anything below the ACP
• Without an ACP, utilities have no incentive to meet their RPS requirements
Long-Term Contracts
• Long-Term Contracts– Who has them?
• NJ, CO, MD, AZ , L.A.
– How do They Work?• Utilities must purchase SRECs to meet RPS
obligations• If they are only permitted to buy SRECs under
long-term contracts (such as 15 years) then purchasers of solar systems gain certainty that their SRECs will be bought over the long term– This allows financing of larger systems
Upfront Payment for Smaller Systems
• Upfront Payment for smaller systems– Who does this?
• Most states that offer rebates offer them upfront, at least for smaller systems
• This would not be a rebate but an upfront payment for long term SRECs
– How do They Work?• The PSC would establish a present value for SRECs
created by a solar system over the following 15 years• The utility would then be required to purchase these
SRECs at this upfront price from small system owners, until their RPS obligation is satisfied
• This will be discussed in more detail in a later presentation
Growth of Solar Market in FL Dependent on…
•Explicit solar share
•Tradeable SRECs
•ACP mechanism
•Provision for LT contracts
•Provision for small systems