Solar Power A National Perspective Julia Judd Executive

Solar Power: A National Perspective Julia Judd, Executive Director Solar Electric Power Association

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Presentation Overview § Who is SEPA? § Solar Market Trends and Data § Policies that Make a Difference § Technologies of Today and Tomorrow § A Look into the Crystal Ball

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Who is SEPA?

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power About SEPA § Formed in 1992 as the Utility Photo. Voltaic Group (UPVG) § Association membership: § Electric Utilities – 75 members § Solar Electric Industry – 75 members § Solar Electric “Stakeholders” (researchers, consultants, investors, architects, etc) – 30 members

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Association Goals § § Tools - Provide tools to utilities and electric service providers on the use and integration of solar. Networking - Foster business to business networking. Information - Share information on solar electric technologies, applications, and programs. Policy/Regulation Tracking – Evaluate and report on policies, regulations, and legislation.

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Solar Market Trends and Data

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Big Name Manufacturers

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Big Name Customers § Wal-Mart § US Postal Service § Staples § Johnson & Johnson § Google § Microsoft § The list goes on and on…

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Financing Trend - Purchasing Solar Electricity Rather than Solar Panels § Power purchase agreements (PPAs) are emerging as a preferred deal structure § § No capital investment by building owner Fixed price of electricity for long time period No balance sheet impact Allows customers to benefit from federal tax credit even if they aren’t allowed to take it

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Photovoltaic Installations by Country - 2006 Source: Solarbuzz

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Solar Resource Compared to Germany

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power US Grid-Tied Installs Source: IREC

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Grid-Tied Installations by State (k. W-dc) Source: IREC (e) Includes some estimates 2005 2006 % Change % of Market CA 52, 015 70, 573 36% 70% NJ 5, 526 17, 858 223% 18% NY 1, 418 2, 709 91% 3% NV 494 2, 619 434% 3% AZ (e) 1, 549 2, 088 35% 2% MA 640 1, 452 127% 1% CO (e) 179 933 521% <1% TX 593 714 20% <1% CT 174 541 211% <1% OR 353 529 50% <1% All Others (e) 699 1, 450 107% 1% 63, 640 101. 466 59. 4% TOTAL

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Policies that Make a Difference

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Securing America’s Energy Independence Act (HR 550, S 590) § Extends ITC for 8 years § Removes 30% cap for commercial systems and $2, 000 cap on residential systems § Modifies credit to $1, 500 per ½ k. W § Provides AMT (alternative minimum tax) relief § Provides 3 -year accelerated depreciation for commercial systems

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power According to the Solar Energy Industries Association § An 8 -year extension of the ITC will: § Create more than 55, 000 new American jobs in the solar industry and over $45 billion in economic investment by 2015. § Displace over 4 trillion cubic feet of natural gas and save American consumers over $32 billion. § SEIA makes it simple for individuals to join letter writing campaign – www. seia. org

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power California Solar Initiative (CSI) § 3, 000 megawatts of new, solar-produced electricity by 2017 § CPUC will provide over $2 billion in incentives for existing residential homes and existing and new commercial, industrial, and agricultural properties § CEC will manage a $350 million program to encourage solar in new home construction through its New Solar Homes Partnership

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power CSI offers: § Incentives starting at $2. 50 per watt for systems up to 1 MW in size § Pay-for-performance incentive structure to reward highperforming solar projects § Funds for solar installations for existing and new low-income and affordable housing § More info at www. gosolarcalifornia. ca. gov

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power California Senate Bill 1 (SB 1) Highlights § Mandates the creation of municipal utility solar programs § Increases net metering cap § Requires production homebuilders to offer solar as an option

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Technologies of Today and Tomorrow

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Today – Crystalline Cells § Silicon shortage is driving innovation § Higher efficiency § Sun. Power – 22% efficient cell § Sanyo – 21% efficient cell § Thinner wafers § Reduces consumption of expensive silicon

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Less so Today - Thin-film Production Capacity vs. Calendar Year Source: NREL

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Crystalline versus Thin-Film Market Share Today 2010 Crystalline 93% 80% Thin-film 7% 20%

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Entrance of Concentrator PV (CPV) Source: Sharp Electronics

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power A Look into the Crystal Ball

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Short Term § Softening market = price decreases § Saw price increase in 2006 due to polysilicon shortage § Polysilicon supply is not as tight as originally expected § Prometheus Institute anticipates 20% drop in 2007 (from $4/watt to $3. 25/watt)

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Longer Term - 2010 § Thin film growing to ~20% of market § Price decreases up to 50% § $4. 25 installed § Largest potential problem – pool of qualified installers to meet demand

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power America’s largest solar event www. Solar. Power. Conference. com

Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power For more information: Julia Judd, Executive Director (ext. 4) jjudd@solarelectricpower. org 202 -857 -0898 www. Solar. Electric. Power. org