Wind Incentives Wind Incentives and Regulationsand Regulations

US Department of EnergyNational Renewable Energy Lab, Golden, CO

*Minimum requirement and/or increased credit for solar¹ PA: 8% Tier I, 10% Tier II (includes non-renewable sources)

Goal

*PA: 18%¹ by 2020

*NJ : 6.5% by 2008

CT: 10% by 2010

MA: 4% by 2009 + 1% annual increase

WI: 2.2% by 2011

IA: 105 MW

MN: 1,125 MW wind by 2010

TX: 5,880 MW by 2015

*NM: 10% by 2011

*AZ: 1.1% by 2007

CA: 20% by 2017

*NV: 15% by 2013

ME: 30% by 2000

State RPS

*MD: 7.5% by 2019

HI: 20% by 2020

RI: 15% by 2020

*CO: 10% by 2015

*DC: 11% by 2022

NY: 25% by 2013MT: 15% by 2015

*DE: 10% by 2019

People Want Renewable EnergyPeople Want Renewable Energy (Renewables Portfolio Standards) (Renewables Portfolio Standards)

Source: IREC

January 2006

North Carolina Incentive ProgramsNorth Carolina Incentive Programs

Sell the Power• TVA Green Power Switch • NC GreenPower • Green tags• New Net Metering Law• PURPAReduce Your Costs• NC Personal Renewable Energy Tax

Credit• NC Corporate Renewable Energy

Tax Credit• USDA Farm Bill

www.dsireusa.org

TVA Green Power Switch Generation Partners TVA Green Power Switch Generation Partners ProgramProgram

Details• Wind or PV • (.5 – 50 KW)• Residential or small

commercial• $.15/kWh credit • Energy used on site is

billed at standard rate

NC GreenPower ProgramNC GreenPower Program

To improve the quality of the environment by encouraging the development of renewable energy resources through consumers’ voluntary purchase of green power.

• RFP process for green power• Ready for wind• Green Power program initially quoted an

estimate of .06/kwh for wind

www.ncgreenpower.org

Green TagsGreen Tags

PURPAPURPA

Public Utility Regulatory Policies Act of 1978 (PURPA)

As a qualifying facility (QF), utility companies are obliged to purchase energy from you based on a pricing structure referred to as avoided cost rates.

QFs are either small-scale producers of commercial energy who normally self-generate energy for their own needs but may have occasional or frequent surplus energy, or incidental producers who happen to generate usable electric energy as a byproduct of other activities.

NC Net MeteringNC Net Metering

Credited to a customer's next monthly bill, but reset to zero at the beginning of each summer (June 1) and winter (October 1) billing season. Any renewable-energy credits associated with net excess is granted to the utility when the balance is zeroed out.

20 kW for residential systems; 100 kW for non-residential systems

Investor-owned utilities (Progress Energy, Duke Power, Dominion North Carolina Power)

Photovoltaics, Landfill Gas, Wind, Biomass, Anaerobic Digestion

None

Individual Utilities

Investor-Owned Utilities Only, Not Rural Cooperatives

Investor-Owned Utilities and Rural Cooperatives

Revised: 6Mar06Source: www.dsireusa.org

10

1,000

100

500

100

10 100

40

2025/100

10

60

30

25/125

25 15/150

25

varies

10/50

25

No Limit

25

100

2,00025

200

40

25

25/ 100

10/ 100

50

25

25/ 100

30

2,000

Settlement of Net Excess Energy:

Monthly

Annual

Varies by utility

20/100

50

Size limits for each state

noted in kW

10/500

Net Metering for WindNet Metering for Wind22 states have net metering for 22 states have net metering for allall rural electric consumers rural electric consumers

10

NC Renewable Energy Tax CreditsNC Renewable Energy Tax Credits

• 35% for all technologies

• Can take tax credit over 5 years

• No more than half of tax liability

• No refund based on tax credit

Credit Limits $1,400 residential solar domestic hot water$3,500 residential active space heating, combined solar hot water and space heating, passive space heating$10,500 residential biomass, wind, hydroelectric and photovoltaic or solar thermal electric

Wind Turbine Installed CostWind Turbine Installed CostExampleExample

Updated: Oct04

High Cost Low Cost

Wind turbine & Controller $2,045 $2,045 $2,045

Tower (80 guyed) $2,220 $690 $2,220

Inverter $1,000 $2,500 $500

Battery and Containment $300 $800 $200

Shipping $200 $400 $150

Installation $1,200 $2,500 $0

Permits/Fees $200 $500 $0

Sales Tax, 5% $358 9% 0%

Total $7,523 $10,033 $5,115

Southwest WindpowerWhisper H40

$2,633 $3,511 $1,790Tax Credit

Final Cost $4890 $6,522 $3,325

USDA Farm Bill Section 9006USDA Farm Bill Section 9006

To help farmers, ranchers and rural business owners reduce energy costs and consumption.

• Renewable Energy Systems and Energy Efficiency Improvements – $23 million/year for 5 years, 2003-2007

• Grants may be up to 25% • From $2,500 to $500,00• Contact:

H. Rossie Bullock

USDA Rural Development

Lumberton, NC

910-739-3349 ext. 4

rossie.bullock@nc.usda.gov

www.rurdev.usda.gov/rbs/farmbill/

Wind Turbine Installed CostWind Turbine Installed Cost

Updated: 11-Oct-04

High Cost Low Cost

Wind turbine & inverter $24,750 $24,750 $24,750

Tower (100 ft guyed) $7,800 $25,100 $6,200

Tower Wiring Kit $860 $1,070 $860

Shipping $1,500 $2,000 $1,000

Installation $8,000 $10,000 $2,000

Permits/Fees $500 $3,500 $0

Sales Tax, 5% $2,146 9.3% none

Total $45,556 $72,272 $34,810

Bergey Excel-S (10 kW)

USDA Grant $11,389 $18,068$8,702Adjusted Total $34,167 $54,204$26,108

Mountain Ridge Protection Act of 1983Mountain Ridge Protection Act of 1983

“No building, structure or unit shall protrude at its uppermost point above the crest of the ridge by more than 35’ “

Exemptions to Ridge LawWater, radio, telephone or television towers or any equipment for the transmission of electricity or communications or both.

Structures of a relatively slender nature and minor vertical projections of a parent building, including chimneys, flagpoles, flues, spires, steeples, belfries, cupolas, antennas, poles, wires, or windmills

“The Legislature in 1983 had in mind, the traditional, solitary farm windmill which has long been in use in rural communities, not windfarm turbines of the size, type, or certainly

number proposed here…”

NC Attorney General’s 2/4/2002 letter to TVA

The FutureThe Future

• Dr. Scanlin has submitted a proposed wind turbine ordinance for Watauga Co.

• Positive discussion so far at Planning Board and County Commissioner meetings

• Joe Furman is working on the ordinance• Next steps: Vote at County Planning

Board then recommend to County Commissioners

• Watauga County may set the precedence• Looks promising!

This was nearly the last

power point for this class!