solar powering michigan: michigan solar market potential
DESCRIPTION
Many local markets in Michigan present significant opportunities for PV project development due to high local utility rates. This presentation will identify jurisdictions that have a strong financial value proposition for PV development. Presentation for Solar Powering Michigan Conference, Traverse City, Michigan, September 12. Sponsored by Midwest Renewable Energy Association, US Department of Energy, Suniva, 5 Lakes Energy, Harvest Energy Solutions, Michigan Public Service Commission, Michigan Environmental Council, Michigan Energy Office, CBSi Solar and E3 Inc.TRANSCRIPT
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Michigan Solar Market Potential
Abhilash “Abhi” Kantamneni| Michigan Technological University
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Houghton Winters
Source: Mining Journal
Source: Mining Gazette
Source: Michigan Tech Alumni
Source: Mining Journal
Source: boniashburn.com
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Source: MPSC Annual Net Metering Report 2014
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Average Residential Electricity Retail Rates
by State (2013)State Average Price
[$/kWh]Hawaii $0.37
Houghton $0.21-$0.24New York $0.19
Alaska $0.19Connecticut $0.18
Vermont $0.18New Hampshire $0.17
California $0.16New England $0.16
Middle Atlantic $0.16Massachusetts $0.16
New Jersey $0.16Michigan $0.15
Source: www.eia.gov
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Michigan Tech KRC Photovoltaic Research Center
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Advantages of High Module Tilt: Albedo
Source: nsidc.org
1 16 31 46 61 76 91 1061211361511661811962112262412562712863013163313463610
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Solar Irradiation and Albedo
S_Horizontal (W/m^2) Albedo (W/m^2)
Day of the Year
W/m
^2
Source: MTU KRC
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Advantages of High Module Tilt: Snow Shedding
4 188 372 556 740 924 11081292147616601844202822122396258027642948313233163500368438680
20
40
60
80
100
120
140
PV System Output Under Snowy Conditions
45* 30* 15*
Hours since 12:00 Am Nov 1 2013
Ener
gy P
rodu
ced
(Wh)
Shedding from 45*
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Source: www.nrel.gov
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Simple ROI Calculation
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Barriers to Solar
Solar Calculator
DIY Bulk Purchasing
MichiganSaves.org + Local Credit Union
‘Solarize Houghton’
Does it make $en$e?
High Installation Costs:
Financing
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Solar Market Penetration in Houghton
2013 MPSC Net Metering report:- ~30kW Summer 2014: 60kW added (all residential)
Fall 2014: +200kW expected. (County Road Commission, City Center, Public Library, Golf Course, Ski Hill, Coffee Shop, State Park….) and Upper Peninsula’s first Community Solar with Ontonagon REA.
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Benefits of Renewables Michigan Public Service Commission
Report on Renewable Energy Standards (RES) says phased integration of renewables cheaper than new coal generation facilities.
Michigan Department of Energy, Labor & Economic Growth Report on Green Jobs says renewable energy sector job creation = 3% of all private sector employment in state
International Energy Agency Report on Energy Security says renewable energy systems reduce supply disruptions and reliance on imported fuel.
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Actual Quote: “The only green that matters, is the color of my $$”
(Obviously, not a philosopher)
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Where is the Solar Market Potential in Michigan?
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Spoiler: Not in RES Compliance.
MI PA 295 Renewable Energy Standard RES requires all Michigan electric providers to meet 10% of their retail sales using renewable energy*
Currently all MI utilities are on track to meet RES Compliance*
*Source: MPSC Report on RES Compliance
*Figure: MIRECS 2009-2013 Credits by Energy Source
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Answer: Grid Tied Net Metered Systems
Large majority of installed net metered customer generation is Solar. Source: MPSC Annual Net Metering Report 2014
Figure: MPSC 2013 Net Metering Program - Installed CapacityFigure: MPSC 2013 Net Metering Program - Installations
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Understanding Net Metering
Source: MPSC Annual Net Metering Report 2014
Category I: Systems < 20KW. Full Credit on excess generation. Limit: 0.5% of Utility’s peak load.
Category II: Systems > 20KW < 150kW. Partial Credit on excess generation.
Category III: Systems > 150kW.Methane Digester projects up to 550 kW
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PV Market Opportunity by Utility Service Area
8 Investor-Owned Utility Companies
9 Rural Electric Cooperatives
41 Municipal Electric Utilities
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PV Market Opportunity by Available Net Metering Capacity
Source: MPSC Annual Net Metering Report 2014
47079 43775
MI category i net metering capacity remaining [kW]
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PV Market Opportunity by Utility Electric Rates
OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
$0.24
$0.21$0.21
$0.16$0.16
$0.15$0.15$0.15$0.14
$0.14$0.14$0.13
$0.11$0.11$0.11
$0.10$0.10
MI Average Residential Electric Rates 2013[$/kWh]
MI Average: $0.14/kWhSource: MPSC Utility Company Annual Reports 2013
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PV Market Opportunity by Utility Electric Rate Increases
OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
116%
94%107%
48%
86%
49%73%72%79%
40%42%
76%
29%39%43%61%73%
MI Average Residential Electric Rate Increase 2001-2013
MI Average: 74%
Source: MPSC Utility Rates Summary
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PV Market Opportunity by Average Annual Consumption
MI Average: 8MWh/Year
OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
4.5 5.1 5.85.46.8 7
.2 7.9
6.48.110.0
8.4
11.611.8
8.0 7.38.3
11.1
MI Average Residential Electric Consumption 2013 [MWH/year]
Source: MPSC Utility Company Annual Reports 2013
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UtilityRank by Available Capacity*
Rank by rates
Rank by rate Increase
Rank by Consumption Aggregate Rank
OCREA 12 1 1 1 1UPPCO 7 3 2 4 2
ALGER DELTA 12 2 3 2 3WEPCO 4 5 4 6 3
DTE ELECTRIC 1 7 8 9 5CONSUMERS 2 9 5 11 6
ALPENA POWER 8 8 9 5 7PRESQUE ISLE 12 4 12 3 8GREAT LAKES 12 6 11 7 9
MIDWEST ENERGY 5 12 6 16 10AEP 3 17 7 15 11
CLOVERLAND 6 14 16 10 12XCEL 10 15 13 8 12WPS 9 16 10 12 14
CHERRYLAND 12 11 14 13 15TRI-COUNTY 12 10 15 14 16
THUMB 11 13 17 17 17
PV Residential Solar Market Potential
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UtilityRank by Available Capacity*
Rank by rates
Rank by rate
Increase
Rank by Average
ConsumptionAggregate Rank
ALGER DELTA 12 2 1 3 1OCREA 12 1 2 4 2
MIDWEST ENERGY 5 8 3 7 3WEPCO 5 4 4 14 4
ALPENA POWER 8 6 5 8 4UPPCO 7 3 8 12 6
TRI-COUNTY 12 5 11 2 6GREAT LAKES 12 7 12 1 8CLOVERLAND 6 12 9 6 9CONSUMERS 2 9 7 16 10
WPS 9 14 6 9 11PRESQUE ISLE 12 10 14 5 12DTE Electric 1 13 13 17 13
AEP 3 17 10 15 14CHERRYLAND 12 11 16 10 15
THUMB 11 15 17 11 16XCEL 10 16 15 13 16
PV Commercial Solar Market Potential
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Summary: “Go West, Young Man”
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Georgetown University Energy Prize Quarterfinalist: Houghton County
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Contact Information
Abhilash Kantamneni
221 Rekhi HallMichigan Tech1400 Townsend DriveHoughton MI
www.SolarizeHoughton.org