Don’t just think sunny deserts, palm trees and cacti when you think solar. Think Twin Towers and corn fields. That’s right: Solar is making its way into the mainstream in the Midwest.
Illinois is rolling forward with aggressive new targets for green energy. 2007 saw the creation of the state’s first renewable energy standard: 25% by 2025. Last year the RES was expanded to cover more utilities and added a solar carve-out: 6% of the RES to come from PV by 2015. That’s a whopping 750 MW of solar, an aggressive initial target for a state that currently has less than 1 MW deployed.
Just as Rome wasn’t built in a day, new energy markets take time to develop. The bill that just passed (HB 6202) helps Illinois avoid a 750 MW solar cliff in 2015 by establishing interim annual targets starting in 2012. The new solar targets will require approximately 40, 100 and 180 megawatts of new solar in 2012, 2013 and 2014 respectively. For those wanting the official word, see our press release here.
It may sound wonky, but it’s an absolutely critical framework for easing electricity providers into the world of solar and protecting Illinois energy consumers from sticker shock. Plus it helps get solar projects and jobs started now – when the Illinois economy can use it most. This year’s legislation sends a clear message to the solar industry to gear up to meet tremendous demand from Illinois in the next two years.
In combination with the one year old solar mandate Ohio, and newly created mandate for solar in Missouri, the new solar targets in Illinois will make solar energy a real part of the mix throughout the Midwest. Expect to see other states follow suit.
Congratulations on the passage of the Illinois Solar Ramp Up bill are due to the Environmental Law and Policy Center and our friends at Illinois Solar Energy Association among many other great state enviro groups. This bill hung in the balance in April when Vote Solar and ELPC organized a solar lobby day. Thanks to all those who lobbied along with our many members who contacted their elected officials to let them know Illinoisans want solar now!
The first, of course, is the tragedy in the Gulf-11 lives lost, an ecosystem in peril.
The second is the fact that the legislative session just ended without, once again, significant legislation to develop our clean, homegrown renewable energy resources.
It’s a different order of tragedy to be sure, and we don’t mean to equate the two. But with the spotlight focused on one of the downsides of fossil fuels, we have the opportunity to help set the state on the path towards a more sustainable clean energy future. Governor Crist has already said that the oil spill should resurrect the clean energy debate.
Talk is cheap. It’s time for action.
Click here to ask the Governor and the leaders of the House and Senate to initiate a special session devoted to debating–and passing–a bill to harness Florida’s clean, renewable energy resources? There will never be a better time to make the case.
Yesterday we visited sunny Milpitas, California – the newly announced home of SunPower’s first domestic manufacturing operations. Yep, you heard right. Another global solar biggie is making moves to make panels right here in the U.S. of A.
The 75 MW production line is expected to employ Bay Area 100 workers by the end of the year – and spread the wealth around even more by sourcing equipment and materials from a host of other states throughout the U.S.
Gov. Schwarzenegger and SunPower CEO Tom Werner celebrate green job growth
SunPower’s decision to locate manufacturing in California is a testament to the state’s market-building solar policies. And so it is appropriate that stalwart renewable energy supporter, Governor Schwarzenegger, joined in celebrating the good news for green manufacturing jobs. During the event, Schwarzenegger highlighted a few policies that have been so instrumental to solar growth that we think they bear repeating:
* California Solar Initiative. Dubbed “Million Solar Roofs” by the Governator’s own office, this rebate program helps energy consumers go solar. Cleverly designed to build a self-sustaining solar market, the program is comprised of incentives that decline as progress is made toward 3 GW of installed solar. And it’s working. Big time. Last month the CSI program hit yet another record growth milestone with more than 50 MW of rebates reserved. That’s about the same capacity as a typical peaking power plant that utilities use to meet high mid-day demand. That, my friends, is solar going mainstream.
Anyone following our California campaign over the last couple years knows that the CSI program is in fact so successful that we were on track to hit a cap on a related policy called net metering. Net metering allows CSI participants to “bank” excess electricity generation and save it for a rainy day (perhaps literally) when they’re consuming more than they’re producing. California law capped net metering participation at 2.5% of utilities’ peak load. The CSI program alone takes customer-sited solar to about 5% of peak load. That’s a problem. With strong support from the Governor and champions in the state legislature, Vote Solar worked with the Solar Alliance and other advocates to pass a new law that doubled the amount of solar that utilities are required to net meter. With the higher cap now in place, California solar customers can rest assured knowing that they’ll receive fair credit for their clean energy investment.
* Renewable Portfolio Standard. Designed to get more clean electrons flowing to all of California’s energy consumers, the RPS requires the state’s major utilities to get 20% percent of their electricity from renewables by 2020. That’s an impressive target. One that’s going to take all kinds of renewable energy development. And fast. So we’re working on programs that support deployment of large-scale, mid-sized and distributed rooftop solar generation alike. And if that’s not aggressive enough for you, at the SunPower event Schwarzenegger assured the audience he’d be taking another run at raising that RPS target to 33% this year.
* AB 32. This is California’s first-in-the-nation greenhouse gas law – not a renewable energy policy per se, but an important model for carbon regulation that has helped redefine the national energy debate. It’s now under threat thanks to a nefarious measure on the November ballot. AB 32 defender Schwarzenegger made a point of calling out the “greedy Texas oil men” funding the ballot initiative, and asked voters to stand firm in support of this leading piece of climate legislation.
California’s innovative policy framework has spurred the diverse, fast-growing solar market that we see today. Through these programs and favorable tax-policies, the state sent a clear signal to the global industry that California is in it for the long-haul – and companies like SunPower are reciprocating by setting up shop close to this hot-spot of solar demand.
In the case of this new Milpitas facility, we can thank the Federal Government for its commitment to solar as well. In 2007, the DOE’s Solar America Initiative awarded SunPower a R&D matching grant to develop the uber-automated equipment that will make up the new manufacturing line. Yesterday DOE Solar Energy Technologies Program Manager John Lushetsky was on hand to see his office’s public-private partnership turn R&D vision into commercial reality.
And how did the Governor respond to an invitation to revisit the space when that new manufacturing line is up and running?
In partnership with our friends at Environment Colorado, we recently issued “Investing in the Sun,” a new report estimating the jobs and economic benefits that would result from an increased investment in solar in Colorado.
The response? We are going to need a bigger internet to hold it all:
Colorado expected to boost Renewable Energy Standard to 30%, Sustainable Business News, 03/08/10. Key Provisions in HB 1001 are expected to create 23,450 jobs in the state, according to a new report released by Vote Solar and Environment Colorado.
Renewable energy would create jobs, Pueblo Chieftain, 03/03/10. Colorado would create thousands of jobs with legislation requiring large utilities to increase their use of renewable energy, a study released Tuesday by Environment Colorado said. But Republicans are questioning how much the measure would impact the state’s economy, as well as the number of long-term jobs that have been created under previous renewable energy requirements.
Energy standard measure moves, Denver Daily News, 03/03/10. A Democrat-controlled Senate committee yesterday backed a bill that would increase the state’s renewable energy standard to 30 percent by 2020, over cries from Republicans that the measure would raise utility costs for business owners.
Backers of renewable-energy bill foresee 23477 new jobs, Denver Post, 03/03/10. Backers of a plan to require more Colorado energy to come from renewable sources said Tuesday that if their bill continues its progress in the state Senate, it could produce thousands of new jobs at small solar companies. But an analysis that shows 23,477 new short-term and permanent jobs installing, designing and maintaining rooftop solar panels leaves out the number of jobs that could be sacrificed in the coal industry as the state relies less on traditional energy sources.
Whitehead’s bill moves in Senate, The Durango Herald, 03/03/10. Sen. Bruce Whitehead’s renewable energy bill passed its first test in the state Senate on Tuesday. House Bill 1001 would require the state’s largest utilities to get 30 percent of their power from renewable sources by 2020. That is triple what the standard was in 2007, when Gov. Bill Ritter took office.
Renewable energy bill passes another hurdle, Summit Daily News, 03/02/10. Colorado is one step closer to increasing requirements for electricity generation from renewable sources, like wind and solar energy.
As state Senate mulls renewable energy bill, report shows jobs potential, The Colorado Independent, 03/02/10. A report released ahead of state Senate debate on a bill that would up Colorado’s renewable energy standard (RES) to 30 percent by 2020 finds that HB 1001 would generate 23,450 new jobs over the next decade.
Study says renewable energy creating jobs in Colo., KRDO/Colorado Springs, 03/02/10. The Senate Local Government and Energy Committee has approved a bill that would require large utility companies to generate nearly one-third of their electricity from renewable energy sources by 2020. An environmental group says Colorado has already created thousands of jobs with legislation requiring renewable energy, and the legislation approved Tuesday will add thousands more, but they can’t say how many.
Renewable Energy Bill Could Increase Colorado Jobs By 23,000. Huffington Post, 3/2/10, Environmental advocates supporting a bill in the state Legislature that would require Xcel Energy to get 30 percent of its power from renewable sources released a report Tuesday saying the higher mandate could create 23,000 jobs in the state’s solar industry over the next 10 years.
Colo renewable energy bill passes another hurdle, Summit Daily News, 3/2/10olorado is one step closer to increasing requirements for electricity generation from renewable sources, like wind and solar energy.
In hospital, Ritter overshadows his top legislative priority. KDVR Fox 31, 3/2/10Heading into his fourth and final legislative session, Gov. Bill Ritter decided to make House Bill 1001, a push to increase the state’s Renewable Energy Standard, his signature bill; and, last month, he even testified on its behalf, something he’d only done twice before in his first three years in office.
Study says renewable energy creating jobs in Colo.KJCT ABC 8, 3/2/10. (AP) – The Senate Local Government and Energy Committee has approved a bill that would require large utility companies to generate nearly one-third of their electricity from renewable energy sources by 2020.
Study: Renewable Energy Would Create Jobs In Colo.KMGH ABC 7, 3/2/10- Colorado would create thousands of jobs with legislation requiring large utilities to increase their use of renewable energy, a study released Tuesday by Environment Colorado said.
Study says renewable energy creating jobs in Colo.Vail Daily, 3/2/10- An environmental group says Colorado has created thousands of jobs with legislation requiring renewable energy, but Republicans are questioning the long-term impact on the state’s economy.
Study: Renewable-energy mandate bill could create 23,000 jobs in Colorado. Denver Business Journal, 3/2/10- Environmental advocates supporting a bill in the state Legislature that would require Xcel Energy to get 30 percent of its power from renewable sources released a report Tuesday saying the higher mandate could create 23,000 jobs in the state’s solar industry over the next 10 years.
Take a look around and you’ll start to see that things are looking decidedly brighter for solar in Ohio. 2009 was the first year that state law required utilities to generate a portion of their power from the sun. With a solar energy target now in place, we’re working hard to build the road to that renewable energy future.
So what’s on the solar agenda in Ohio?
First, expect to see new solar rebate programs from your utility as it works to meet its renewable energy requirements. Vote Solar is working with the Ohio Consumer Council and others to make sure potential solar customers get a fair deal.
Second, there are a number of issues at play in the state legislature to smooth the way for solar adoption:
House Bill 113 aims to give solar a boost in schools. If the bill is passed, school districts with more than 5,000 students will be required to power some of their electricity through solar. That means 71 Ohio schools would start tapping the sun for their electricity.
Senate Bill 223 would expand the state’s municipal financing option (PACE) to include energy efficiency investments. These PACE programs help property owners cover the upfront cost of making energy improvements. It’s an exciting new way for cities and counties to support a local green economy and job growth. Last year, this policy marked a big win for solar in Ohio, and we’re excited to see those benefits expanded to include efficiency.
And last but not least, Governor Strickland’s State of the State called for a personal property tax exemption for solar generating energy projects. Removing this obscure property tax would clear the way for the development of solar farms. We expect to see a bill introduced shortly to address this remaining barrier to large-scale solar in Ohio.
Now we don’t want to sugarcoat Ohio solar policy. There have been bumps in the road. Three utilities- AEP, First Energy and Dayton Power & Light, asked to be excused from their 2009 solar generation requirement. We formally disagreed with the granting of a solar waiver. The utilities stated the lack of approved RPS rules, however the solar generation requirement has been clear from day one. We do expect to see those missing solar electricity hours generated in 2010.
We’ll need your help to pass these bills. Stay tuned and get ready to go solar.
Felix Kramer of Calcars thinks 2010 will be the year of the plug-in car. He’s got a good case: after years of advocacy and technology development, 2010 is the year that major manufacturers will finally make plug-ins broadly available, and rapidly decreasing battery costs are helping the conversion industry reach new customers and help retrofit the existing fleet at scale. After years of work and promise, 2010 is the payoff year.
I see a similar trend in solar in California, where years of policy and business development are all coming together to make 2010 an extraordinary year for solar development.
There are four major market drivers:
The California RPS
California’s renewable portfolio statute requires the state’s utilities to include 20% renewables in their portfolio by 2010, and last year Governor Schwarzenegger issued an Executive Order increasing the requirement to 33%. To date, California investor-owned utilities have signed over 7 GW of contracts with solar companies, of which 4.9 GW are at prices below the Market Price Referent (that’s the 20-year levelized cost of energy for a combined cycle gas turbine, a proxy for the fossil fuel alternative). An Excel spreadsheet of the contracts, modified from the one found on the CPUC’s website, here. This list will be expanding rapidly; by all accounts, the 2009 RPS solicitation garnered a tremendous response from solar (especially photovoltaic) developers, and as the utilities send contracts to the CPUC for approval, we are likely to see contracts for gigawatts more of mid-sized wholesale PV projects in the coming months. That’s what happens when solar gets cheap.
Utility Wholesale Distributed Generation Programs
California’s investor-owned utilities have all applied for significant investments in utility-owned solar projects, and 2010 is when these programs hit the street (or rooftop). Southern California Edison (SCE) wants to develop 250 MW of primarily rooftop solar projects; as a condition for approval, the California Public Utilities Commission is requiring SCE to buy an equivalent amount of solar, in 1-2 MW increments (90% of which have to be rooftop) from independent power producers through competitively-bid power purchase agreements. The details of how the auction mechanism is to work (including standard terms and conditions of the contract) were the subject of a workshop process last fall, and are to come before the CPUC for approval on Jan 21. Assuming approval, the first auction for PPAs could take place the following month or so. Details of the proceeding here and here.
Pacific Gas and Electric (PG&E) has applied for a similar program: 250 MW of utility-owned generation (systems sized from 1-20 MW), and an equivalent amount to be purchased from independent power producers. For the IPP portion, PG&E’s initial application proposed to offer standard contracts at PG&E’s cost of development (initially estimated to be 29.5 cents/kWh, but would reset based on actual costs); this issue is being litigated before the CPUC, with resolution expected around February. As the CPUC forced SCE to competitively bid their IPP portion, it would be a good bet to speculate that they will decide on a similar requirement for PG&E, but who knows?
Combined, these utility programs represent a gigawatt of wholesale distributed generation solar over the next 5 years.
Feed-in Tariff Programs
California has two feed-in tariff programs under development. The first is a proposed 1 GW market-based feed-in tariff, which would require the state’s investor-owned utilities to conduct multiple annual solicitations for 1-10 MW renewable projects. It’s different from a traditional feed-in tariff in that instead of guaranteeing a price, it guarantees a market and lets project developers set their own price. The proceeding to establish this program is inches from the goal-line–after over a year of work, we we are currently waiting on the Administrative Law Judge to issue a proposed resolution. We expect the process to be concluded in the next few months (knock wood), and the first auctions to begin before summer. The pilot program totals 1 GW over 4 years, though once the process gets moving and proves successful, it could easily be expanded. I believe that this program hits a sweet spot on several levels: 1) the 1-10 MW size targets projects that don’t need new transmission, and can thusly come on line quickly, and 2) the competitive pricing element, combined with solar’s dramatically lower costs, will finally bring on massive amounts of solar at politically palatable price-points.
The second is SB 32, passed by the legislature last year. SB 32 requires the CPUC to develop a must-take standard-offer price for renewable contracts–essentially based on avoided cost. More details here, but as rulemaking will take awhile, it is unlikely that this program will be available in 2010.
Customer-side of the meter
The California Solar Initiative is the program that provides incentives for behind-the-meter generation–the owner of the system uses the production to offset purchases from the utility and reduce electric bills. Over 135 MW of photovoltaics, both residential and non-residential, were installed in 2009. We still have to raise the 2.5 % net metering cap, but if that’s accomplished, Jigar Shah (founder of SunEdison) told me he has a standing bet that the remaining incentives (all 1303 MW) will be reserved in 2010. Here’s hoping he’s right. Also of note, just about every property owner in California will have access to a PACE financing program by the end of the year. As financing the high up-front costs of solar and energy efficiency is a long-standing hurdle to greater adoption, these new programs should help drive demand considerably.
All told, we are looking at tremendous amounts of new solar development in the state. Here’s to more solar gen in two-thousand and ten…
The Nevada Legislative session adjourned last week, and I find myself singing along to the Rolling Stones: You don’t always get what you want, but when you try sometimes, you get what you need. We are counting both wins and compromises in Nevada, but as we see legislative sessions wrap up in states across the country without getting new solar policy across the finish line (largely due to extreme focus on budgetary issues) – Vote Solar is declaring the 2009 Nevada legislative session a success for solar energy.
Sunny Nevada is already home to a number of impressive large-scale solar plants. Vote Solar started the legislative session with an ambitious plan to help the Silver State build out a small-scale solar market to match. Together with the Solar Alliance, we advocated for legislation that would require NV Energy, the main state utility, to invest in distributed solar projects on homes and commercial properties.
After months of program modeling, discussion and debate with Nevada legislators, we saw some success with the passage of SB 358 (and resounding wins on the large-scale side with AB 522 – learn more here):
SB 358 (Horsford): Summary of primary solar provisions:
** Implements a new Renewable Portfolio Standard (RPS) requiring that the state’s investor-owned utility generate 25% of its energy from renewables by 2025; increased from 20% by 2015.
** Requires that 6% of the RPS come from solar resources beginning in 2016, an increase from the current 5 percent.
** Establishes a more efficient 30 day application approval process for the state’s SolarGenerations rebate program. Eligibility capacity and categories for the program remain unchanged (1 MW for schools, 760 kW for public buildings, and 1 MW for residential and small commercial under 30 kW), but increase the capacity limits at 9% per year, leading to roughly 97 megawatts by 2020 if the program is efficient run and fully subscribed.
** Enables municipalities to finance renewable energy project through special “tax districts,” a provision that could clear the way for Berkeley FIRST type municipal finance programs that help eliminate solar’s upfront cost to property owners.
Despite plenty of hard work from both solar advocates and our champions in the legislature, SB 358 did fall short on one of our original proposals, the addition of a 5% DG solar carve-out to the Renewable Portfolio Standard (RPS). Nevada already has an aggressive RPS that encourages the large-scale development we have seen dominate the market to date. Designed to specifically carve-out some space for smaller scale projects, our policy ask would have required NV Energy to help deploy 450 megawatts of solar at Nevada homes, businesses and other buildings by 2025.
Through the process, we were thoroughly impressed with the level of personal engagement that many legislators devoted to developing a DG solar policy goal. In particular, we note the constructive and dedicated work of Senators Horsford and Schneider, Assemblyman Bobzien and their staff, particularly Dick Cooper and Scott Young, who asked tough questions of the utility and of us. Those productive conversations will undoubtedly continue through the off-season and into next year until we’re able to make solar more accessible to folks in the great state of Nevada.
All in all, we think this session was a start of a great thing: a solar powered economy that will bring new jobs to Nevada, while cleaning the air, and reducing reliance on out of state energy resources.
The Sunshine State’s legislative session ended on May 1st without putting any significant new renewable policies in place. It’s an unfortunate ending to be sure, but the story of solar in Florida’s 2009 legislative session was filled with highs, lows, and a host of unexpected plot twists.
Solar advocates, environmental groups and the renewable energy industry joined forces in hopes of passing an aggressive Renewable Portfolio Standard (RPS) of 20% by 2020. Further boosting our chances of a good outcome was strong support from the Governor, who listed it as one of his legislative priorities, and the Senate, which was engaged early on in the effort.
Despite widespread support for the RPS and hard work from coalition members, two major obstacles proved insurmountable this time around: a debilitating budget deficit and a last-minute campaign to open up Florida’s coast to oil drilling.
The primary focus of both House and Senate efforts this session, the $2 billion budget deficit left legislators with little bandwidth for other important issues, particularly anything as complex as new renewable energy legislation.
Then with just weeks to go before the session timed out, what little attention that was left for renewables was spent when the House introduced an oil drilling bill that many feared would be tied to the Renewable Portfolio Standard (RPS). Passage of an RPS alongside oil drilling does NOT spell victory in our book.
Thankfully, the move to open coastal oil drilling was ultimately rejected by both the Governor and the Senate. During the closing week, the Senate passed a version of the RPS bill that, while not perfect, represented a significant step forward by allocating up to $200 million per year to solar and wind projects. However, in the end, efforts fell flat in the House which never took up the RPS issue.
Our alliance of renewable advocates put up an amazing fight, even through the last day of session. In the process, we saw an impressive range of stakeholders come together around a united call for renewable energy policy change. Vote Solar’s own “help wanted” campaign was one of many successful public efforts to highlight solar’s economic and environmental benefits. The combined effort resulted in editorials in nearly every major newspaper calling upon legislators to stop waiting and start tapping Florida’s solar resource. All in all, it was the kind of coalition building and strong public engagement of which advocates dream.
So the sun has set on statewide solar policy in Florida for now, but it will certainly rise another day – and soon. We will be working hard with our allies over the next year to make sure strong renewable policies cross the finish line in 2010.
And we’re off. This week the Nevada Legislature began a series of
hearings on renewable energy policies, including Vote Solar’s
priorities of increasing the state’s current RPS and creating a 5%
distributed generation carve-out to support rooftop solar adoption.
That would mean 375 MW of DG solar in the next ten years – an
impressive goal for a state with Nevada’s population.
With the hearings in full swing, we have filed testimony on several
Senate and Assembly renewable energy bills and are vigilantly tracking
the legislation as amendments are introduced – some friendly and some
not so friendly to solar.
It’s an incredibly busy week, but we’re keeping pace to make sure provisions for solar remain strong.
The Florida Public Service Commission voted to approve a draft RPS rule that would require utillities obtain 20% of their electricity from renewable energy, with 25% coming from solar and wind resources. Now the draft rule goes to the Legislature for ratification.
Good elements of the draft rule:
- 20 percent by 2020 goal
- Solar and wind will provide 1/4 of the 20% goal
- Solar and wind projects may get up to $300 Million each year to meet the goals
- The goals are mandatory, not aspirational
- The rule will remain a Renewable Portfolio Standard and not be expanded to include clean coal and nuclear…for now (see caveat below)
What could be better:
- The cost of the RPS is capped at 2 percent of utility revenues, which we feel is too low (we have asked for 4%)
- The commission has left room for the Legislature to consider changing the rule to a Clean Energy Portfolio Standard, which could then allow nuclear to participate
- The recommendation lacks clear provisions for long-term contracts
- Additional provisions will be needed to ensure that small solar electric and solar hot water customers can participate in the market
Now the fight moves to the Legislature, and like everything in Florida, we don’t expect this will be an easy one. Stayed tuned.
