What’s Behind the Rapid Growth of Solar in My Town?

By Rob Greer

Image Courtesy of examiner.com

Table of Contents

What has changed the past few years to allow for solar growth?

Discuss the basics of solar programs in local towns.

Discuss the basics economics of a homeowner going solar.

What do we expect the future of solar will be?

What has changed in the past few years to allow for solar growth?

Let’s Look at the Data…Residential

Commercial

environment.transportation.orgMass.gov

Price

Technology

Competition

Political / Non-Governmental Support

Financing Vehicles

Other Major Factors?

Snapshot

Price

Technology• Solar panel technology has improved in efficiency, power and overall performance• For the nerds in the room: What is the percent efficiency of the most powerful residential solar

panel right now? (real-world conditions)

Political and Non-Governmental Support• Generous Federal and State incentives for solar• State partnerships

Factors That Influence Solar Growth in MA

Lease/PPA

Own

Company owns the system. Customer pays a lower rate for electricity for a set period of time. No upfront cost necessary.

Customer pays for system, and get the full financial benefits of it.

21.2%

Net Metering

Federal and State Tax Credit

Solar Renewable Energy Certificates (SREC’s)

Competition• “There are currently more than 391 solar companies at work throughout the value

chain in Massachusetts, employing 9,400 people” (“Massachusetts Solar,” 2015).• What are we competing on? About only “20% of homes in Massachusetts will be

suitable for solar due to shading, roof orientation, or other structural roof issues… and “the percentage of feasible homes for solar can vary greatly between communities” (Hausman & Condee, 2014, p. 13).

Financing Vehicles

Other Major Factors?- We’re just seeing it more.

- More consumers showing interest, more solar installers meeting with potential clients.

Factors That Influence Solar Growth in MA

Discuss the basics of solar programs in local towns.

4 Principals of Solarize Mass

1) Discount / Tiered pricing for solar

2) Community-driven outreach

3) Competitively selected installers

4) Limited-time offer (Hausman & Condee, 2014, p. 3).

What are the Results of Using the Solarize Model?

• In 2013-2014, Solarize Mass program signed close to 1,500 new contracts (Kyrios, K 2014).

• The number of small scale solar electricity projects in almost every community has doubled as a result of the program (Hausman & Condee, 2014).

• “The program saves residents (and businesses) money while creating local jobs.”Rick SullivanEnergy and Environmental Affairs Secretary

Discuss the basics economics

of a homeowner going solar.

Your Electric Rates:

Last Year = ___.20___ $/kwhYour Recent Rate Average = __.21+____ $/kwh

What that means? Your electric bill went up ~3% since last year to pay for the same

electricity.

You have no control.

Baseline of Where We’re At

Your Goals- High-Efficiency, U.S. made solar panels? Yes- Go solar with an easy monthly payment with low interest? Maybe- To own solar to fully take advantage of incentives and savings? Yes

Your Home | Your Goals

Aesthetics | Performance

Federal & State

Tax Credit

• 30% Federal Tax Credit on Gross System Price.

• State Tax Credit = $1,000

• This are also known as a “Year 1 incentives.”

• (SREC’s) Get paid for going solar!

• 10 Year Program

Utility Offset • What percent of your electric bill will we cover with solar?

• Solar helps you avoid utility inflation.

Review of Cash Flows and Incentives

Solar Renewable

Energy Credits

Example Proposal

* System is designed to eliminate 102% of their electric bill in year 1. They spent ~$1,200 last year** Estimate average SREC income per year (10 year program) = $1,318.

Did you Know?

• Going solar can increase the value of your home.

• Get a 20 year exemption from a property tax increase due to having solar panels.

• The untold benefits of solar…

What does 1,100 MW mean?

epa.gov

What do we expect the future of solar will be?

Great question!

“Standards, not new technology, are crucial for integrating clean energy into electricity grids” (Sivaram, V. 2015).

Wheels.blogs.nytimes.com

Climatekids.nasa.gov

Pri.org

Thisoldhouse.com

“The business argument for a comprehensive strategy for sustainability is not only that your

company might make more on the top line or eliminate some costs to plump up the bottom line –it is that your company will survive and thrive by following emerging trends in society, technology,

and natural resources” (Werbach, 2009, p. 8).

ADAM WERBACH

Hausman, N., & Condee, N. (2014). Planning and Implementing a Solarize Initiative [Entire issue]. Clean Energy State Alliance. Retrieved from http://www.cesa.org/assets/2014-Files/Solarize/CESA-Solarize-Guide-September-2014-lowres.pdf

Kyrios, K. (2014). Solarize Mass – Big Scale Impact for Small Scale Solar. Retrieved from http://blog.mass.gov/energy/clean-energy-workforce/solarize-mass-big-scale-impact-for-small-scale-solar/

Massachusetts Solar. (2015). Retrieved from http://www.seia.org/state-solar-policy/massachusetts

Werbach, A. (2009). Strategy for Sustainability. [Kindle]. Retrieved from Kindle Library

Varun, S. (2015). Five Things I Learned About the Future of Solar Power and the Electricity Grid. Retrieved from http://blogs.cfr.org/levi/2015/07/15/five-things-i-learned-about-the-future-of-solar-power-and-the-electricity-grid/

References

Questions?