CommunitySolarforLow-IncomeBenefitsandBarriers

LaurelPassera,CCSAPolicyTeam,EQResearch

CCSAmembersinclude40+communitysolarproviders,businessserviceprofessionalsandcustomers

WhoisCCSA?

Whatiscommunitysolar?

Communitysolarreferstolocalsolarfacilitiessharedbyindividualcommunitymembers,whoreceivecreditsontheirelectricitybillsfortheirportionofthe

powerproduced.

Howisacommunitysolarprogramisborn?

Legislativelyenabled

• Netmeteringexpansion• CommunitySolarLegislation• PilotProgram• CappedProgram• UncappedProgram

VoluntaryProgram

• Voluntary,utility-initiatedprojects• Respondingtocustomerinterest

• MeetingDGgoals

DominionissuedanRequestforProposals(RFP)aspartofitsCommunitySolarPilotProgramseekingthird-partyproposalsforthesolarfacilitiesof2MWorless,uptoatotalofnotlessthan10MW.Toqualify,proposalsshouldincludePPAsthatprovideDominionexclusiverightto100%ofthenetelectricaloutputforaperiodof15years.Proposedfacilitiesmustbein-serviceandcapableofdeliveringthefullratedoutputnoearlierthanJuly1,017andnolaterthan12

monthsafterregulatoryapprovalofthePilotProgram.EligiblefacilitiesmustalsobelocatedwithinandconnectedtoDominion'sT&Dnetwork.

ProposalsselectedfromtheRFPprocesswillbethosethatofferthemostfavorablecombinationofPriceandNon-PriceEvaluationmetrics.Non-PriceEvaluationmetricsinclude,butarenotlimitedto,geographiccriteria;economicdevelopmentbenefits;andexperience,qualifications

andfinancialstrengthoftheapplicant.

BidformsandconfidentialityagreementsaredueSeptember21.FullproposalsaredueOctober16.

Rulesinplacebutlimitedmarket

Establishedprogram

Legislationinplace,regulationspending

Whereiscommunitysolar?

PilotPrograminplace

Roles

Whatdoesa3rd partyledprogramlooklike?

ElectricUtility

CommunitySolarProject

CommunitySolar

Subscribers

Electricity

UpfrontorOngoing

ParticipationPayment

CommunitySolarBillCredits

CommunitySolarDeveloper

ProjectDevelopment/Maintenance

ThirdParty Utility CustomerProjectSiting/Permitting/Finance

DeveloperCoordination Self-educate

InterconnectionApplication/Upgrades

CustomerBillCrediting CarefullyWeighOptions

Technology/EPC Selection InterconnectionProcessing Select DeveloperandSignContract

CustomerAcquisition/Marketing

Ongoingcustomerengagement

PayParticipationFee

CustomerContracts/Payments

MonitorSystemPerformance/Credits

Tax/Legal Compliance

OngoingCustomerEngagement

UtilityCoordination/SystemMonitoring

O&M

Whodoeswhat?

Whatdoesautility-ledprogramlooklike?

ElectricUtility

CommunitySolarProject

CommunitySolarSubscribers

Electricity

UpfrontorOngoingParticipationPayment

CommunitySolarBillCredits

UpfrontInvestmentandOngoingMaintenance

Whodoeswhat?Utility ThirdParty Customer

IssueRFP/Select ProjectDevelopmentPartner

ProjectSiting/Permitting/Finance

Self-educate

SignPPA/PurchaseAgreement InterconnectionApplication/Upgrades

CarefullyWeighOptions

DesignProgram (fees,credits,rules,etc.)

Technology/EPC Selection SignContract

DetermineProgram/ProjectSize O&M PayParticipationFee

Seek/obtainregulatoryapproval Tax equity(co-op,munis) MonitorSystemPerformance/Credits

Tax/Legal Compliance

CustomerAcquisition/Marketing

CustomerContracts

BillingIntegration

Develop Website/OngoingCustomerEngagementTools

SystemMonitoring

MaycontractouttoThirdParty

Whydoutilitiesembracecommunitysolar?• Solaristhefastestgrowingandmostpopularenergysourceontheplanet.

ü Sub$1/Wattinstalledandcontinuingtodecline• Customerswantsolarandmostdon’thaveaccess.

ü Vastandgrowingmajorityacrosscountrywantsolarand85%donothaveaccessü Programsthatcustomerswant,withlittlerisk,evenatscale

• Offersutilitiesopportunitytokeepcustomersandmakemoneyü Communitysolarmitigatesagainstcustomersmovingtorooftopsolar+storagesolutions.

• Betterandmoresecurerelationshipswithcustomersü Welldesignedcommunitysolarpre-emptspoliticalbattlesaroundmandatesthroughadversarial

legislation,ballotinitiatives,etc• Distributionsystemassetswithopportunitiesforstrategicsiting

ü Frommitigatinglinelosses,toreducingtheneedforT&Dupgrades,togreatercontrolingridplanningandopportunityforgridservices,communitysolaroffersmyriadgridbenefits

• Distributedsolarwitheconomiesofscaleü Community solaroffersthedistributionbenefitsofrooftop/onsite,withmuchofthecost-savingsof

utility-scalesystems.• NewchannelsforRPScompliance

ü OffersutilitiesadditionaltoolstoreachRPScompliance,andcustomersadirecthandinmeetinggoals

• Windowtonewproductopportunitiesforcustomersü Communitysolarcanbebundledwithadditionalproducts,offeringasales

channeltorealizingmanynewcustomerdesires

ProgramConsiderationsImage:CleanEnergyCollectiveandMartifer SolarUSA

Whataresomeofthebarrierstolow- tomoderate-income(LMI)participation?• Financing(lackofaccesstocapital,lowercreditscores,lesstaxappetite)

• Inappropriate(orno)marketingtoLMIsector• Lesstimetoresearchoptions• Movemoreoften• Distortedpricesignals

Why weshouldfocusonLMI

• LMIresidentsstandthemosttogainfromparticipation– Spendadisproportionateshareofincomeonenergycosts(~10xgreater)

• Fossilfuelgenerationismorelikelytobesitedinlow-incomeareas

WhatistheValueProposition?

• Billcreditthatprovidesmeaningfulandimmediate savings

• On-billfinancingshouldbeofferedforlow-incomecustomers,toreducebarrierstoparticipation

Whoshouldbeeligible?AreaMedianIncome(AMI)(ex.HUDLMIdefinitionof80%AMI)– AMIisusedacrossmanyfederalprograms,especiallyHUD,todeterminelow-incomeandaffordablehousingeligibility.

– AMIismoresensitivetothevariationofincomelevelsfromcountytocounty,asopposedtoFederalPovertyLevel(FPL)whichissetuniformlytonationalaverages.

WhatmechanismscanfurthersupportLMIparticipation?

• Backstopsorloanlossreservestohelpattractlow-costfinancingandtaxequityinvestmenttolow-incomeprojects

• Pass-throughofftakers forlow-incomecustomers

• Revisedunderwritingcriteria(utilitybillrepayment)

Whyisconsumerprotectionimportant?

LMIcustomersegmentismuchmorefrequentlythetargetofscamsandfraudulentbusinesspractices.

Customerinformationshouldinclude:• Minimumsavingstargetsbasedonreasonableassumptions

• Individualcontractsummarypagesorstandarddisclosureforms

• Materialsinotherlanguages

ProgramExamplesImage:NRG,SpencerSt.communitysolarfarm.Spencer,MA.

NewYork

NYSERDALow-incomeplan– NYSERDAofferssubscriptionsatnocosttoLMIparticipants

– IssueRFPforprojectsthatcommita%oftheircapacitytoLMIsubscriptions

– NYSERDAmanagescustomerenrollmentandallocatessubscriptions

– Aimstoinclude10,000participants

Colorado

• ColoradoCommunitySolarStatuteC.R.S.§ 40-2-127(5)(e)‘utilitymaygivepreferencetocommunitysolargardensthathavelow-incomesubscribers’

• Low-incomeCommunitySolarDemonstrationProjectsubscribedcommunitysolarthroughthestate's’weatherizationprogram

• IOU5%PUCRuleRequirementAggregation(4MW)–Approx.1,300customers

• 100%LICommunitySolarGardenRFP(4MWAnnually)–Approx.3,900customers

Massachusetts

• MassachusettsSB1979‘promotesenergyjusticeandequitableaccesstothebenefitsofsolarenergy,includingsupportofcommunity-sharedsolarprojects

• SRECIIandnewSMARTProgram– Creditaddersforlow-incomeparticipants

Illinois

FutureEnergyJobsActof2016:• Incentivesforon-siteDGPVbenefitinglow-incomehouseholds.

• 100%low-incomesubscriberownedcommunitysolar,locatedinEJcommunities

• Non-profitsandpublicfacilitieslocatedinEJcommunities

• Pilotcommunitysolarprogram

Whatelseisoutthere?• Low-IncomeSolarPolicyGuide

– http://www.lowincomesolar.org/

• SharedRenewableEnergyforLow- toModerate-IncomeConsumers:PolicyGuidelinesandModelProvisions– http://www.irecusa.org/publications/shared-renewable-energy-for-

low-to-moderate-income-consumers-policy-guidelines-and-model-provisions/

• SolarPlusStorageCompanionMeasuresforHigh-ValueCommunitySolar:AGuideforUtilityProgramPlanners– http://www.communitysolarvalueproject.com/uploads/2/7/0/3/2703

4867/2017_09_30_final_6_solar__storage_guide.pdf

Whatelseisoutthere?

• NYSERDA's Low-Income ForumonEnergy(LIFE)• December19th,on"BestPractices for Low- toModerate-

Income CommunitySolar,"ledbyNREL. https://www.nyserda.ny.gov/All-Programs/Programs/Low-Income-Forum-on-Energy/LIFE-Webinar-Series

• IllinoisSolarforAllWorkingGroupWhitePaper• http://www.lowincomesolar.org/wp-

content/uploads/2017/07/20170711-ILSfA-Working-Group-White-Paper_Final_wAppendices.pdf

Thanks!

laurelp@communitysolaraccess.org