Renewable Energy Technology: Policy, Programs, and Possibilities
Solar Energy Technology: Policy, Programs, and Possibilities February 23, 2016 Paul Helstrom Minnesota Power Renewable Program Lead Stacy Miller Minnesota Department of Commerce Solar Policy Specialist In accordance with the Department of Labor and Industrys statute 326.0981, Subd. 11, This educational offering is recognized by the Minnesota Department of Labor and Industry as satisfying 1.5 hours of credit toward Building Officials and Residential Contractors code/energy continuing education requirements. For additional continuing education approvals, please see your credit tracking card.
Agenda Overview of Solar Energy Markets in the US Overview of Minnesota renewable policy, markets Federal Incentives for Solar State policies and programs Utility Incentives and programs How do you get involved Technologies pushing solar forward 3 National Trends Large developments in solar Decreasing costs has lead to rapid growth Solar is a fast growing energy resource in the world, the US and Minnesota Lots of growth = opportunity for new business, jobs, economic activity. Some challenges face the adoption of solar
Technical integration Cost and value propositions 4 Graphic: SEPA- solar snapshot 5 Graphic: SEPA solar 6 Challenges for Solar Cost is still a challenge Getting the rate structure right National debates and regulations in flux Net Metering Value of Solar Regulatory proceedings in high penetration states
Hawaii, Nevada, California examples Advanced inverter technology Enabling high value services to the grid Meeting peak demands 7 Challenges for Solar Labor Shortages Permitting Interconnection issues Billing issues Consumer Affairs Office (651)296-0406 or 1-800-657-3782 [email protected] .us
Department of Labor & Industry (651)284-5069 or 1 (800) 342-5354 8 Challenges for Solar 9 Federal Investment Tax Credit (ITC) 30% Federal Tax credit for Commercial and Residential systems in service by 12/31/2019 Sunset begins in 2020 for commercial systems 2021 26% 2022- 22% 2024- 10% (commercial)
10 Other Federal Programs Modified Accelerated Cost Recovery System (MACRS) a depreciation tool to take rapid depreciation of solar assets over a five year window REAP Grants- Rural Energy for America Program Up to $2,500-500,000 grants up to 25% of system cost Up to $25 million loan up to 75% of system cost Agricultural producers and small businesses in rural areas for energy efficiency and renewable11
Minnesota Renewables Minnesota 25% renewable by 2025 Solar Energy Standard 1.5% x 2020 New net metering rules Community Solar Value Of Solar Stable Incentives 10% x 2030 Goal 12 Incentives in Minnesota Property Tax Incentive Sales Tax Incentive Made In Minnesota Utility Incentives Minnesota Power Xcel Others
13 Net Metering Investor owned utilities: Net metering cap raised to 1 MW in 2013 Single-customer meter aggregation on contiguous property No standby charges < 100kW Systems 40 kW - 1,000 kW 14 Net Metering Cooperative & municipal utilities: Changes effective July 1, 2015
Net metering limit remains 40 kW Net metering fees authorized under certain conditions: A cooperative or municipal utility may charge an additional fee to recover fixed costs not already paid for by the customer through the customer's existing billing. Any additional charge must be reasonable and appropriate based on the most recent cost of service study. Customers forfeit excess generation at the end of the year unless they elect to receive monthly 15 Community Solar Xcel Energy program is the largest Minimum of 5 subscribers who must be in a contiguous county. A single subscriber may subscribe to 40% of a
system Subscribers receive on-bill credit 17 co-ops and Moorhead Public Service have community solar programs planned or available now 16 Made in Minnesota Solar Made in Minnesota PV $15 million/year through 2023 Xcel Energy, Minnesota Power, Otter Tail Power Production Based Incentive (PBI) Projects < 40 kW Commercial, < 10 kW Residential Applications accepted annually Jan 1 Feb 28 18
Made in Minnesota 2016 Solar Thermal Incentives 19 Made in Minnesota Participation Eligibility Cannot receive a utility incentive in addition to a Made in Minnesota incentive Must be a customer of an investor-owned utility to participate: Minnesota Power, Xcel Energy, Otter Tail Power Solar PV Commercial systems must have a capacity of less than 40 kW and residential systems may have a capacity of up to 10 kW. Solar Thermal The solar thermal systems may be installed in residential and commercial facilities for, among other purposes, water heating, space heating, and pool heating purposes. Open statewide if there are unused incentives. 20
Xcel Energy Solar*Rewards $5 million annually 2014-2017 Production Based Incentive of $.08/kWh paid annually for 10 years 20 kW maximum Dakota Electric, Rochester, Minnesota Power, Ottertail Power also have small solar programs 21 SolarSense Available for solar photovoltaic (PV) and solar thermal systems Lottery application process Closes February 28th Solar PV Capacity-based, tiered rebate
$750/kW base incentive $250/kW NABCEP certified installer $250/kW non-profit or tax-exempt customers Solar Thermal Rebate of up to 25% of project costs, not to exceed $2,000 for residential $4,000 for 2-3 family units $10,000 for 4 or more family units $25,000 for businesses 22 Incentives Database www.dsireusa.o rg 23 NABCEP Certification North American Board of Certified Energy
Practitioners (NABCEP) www.nabcep.org Certification offers the public a high degree of protection because practitioners have to voluntarily meet standards and qualifications and pass an exam. Requirements for becoming NABCEP certified Installation decision making experience and classroom requirements (documented) 24 UL Certified PV Installer IBEW partnership Requires the passing of an exam based on a set of PV system installation duties and tasks
Must be an electrician and pass OSHA 30 hours training Valid for three years CEUs required (6) 25 Minnesota Educators Hibbing Community College Program: Solar PV Technician Program 25 credit course gets you test ready for NABCEP certificate of knowledge Century College Advanced Solar PV Energy Systems 30 credit requirement Tests for NABCEP certificate of knowledge 26 Trends in Technologies and Policy related to solar
Energy Storage Technology advancements Economies of scale driving down costs (Tesla) Complements solar energy systems Electric Vehicles Driving scale for storage technologies 27 St. Louis County 28 NRRI, Minnesota Power, and St. Louis County Solar Photovoltaic Study Introduction Objectives Materials and Methods Preliminary Results
Minnesota Power (MP) requested assistance from the University of Minnesota Duluth Natural Resources Research Institute (NRRI) to investigate the performance of three solar photovoltaic (PV) arrays in a Northern Minnesota environment. This project would be a multi-year program to monitor solar system output, reliability, and other factors. Three 10 kilowatt arrays were to be installed on top of the six story Government Services Center (GSC) in downtown Duluth. The data from this study will be used internally at MP and the arrays would be a showpiece for St. Louis County, as well as a component of the pursuit of LEED certification for the GSC. This study would be the final portion of the Pyramid of Conservation,
as renewable energy generation generally requires the highest investment. The Pyramid of Conservation is part of MPs Power of One Conservation Improvement Program. NRRIs objective would be to validate and analyze the data from the three solar PV arrays in Duluth, Minnesota. Specifically, MPs research goals for this research project included topics such as: The physical location of the solar PV installation was on top of the GSC, 325 W 1st Street, Duluth, Minnesota 55802. Annual irradiance and weather data for this location according to the NREL SAM database include:
Global horizontal irradiance: 3.70 kWh/m2/day Diffuse horizontal irradiance: 1.78 kWh/m2/day Average temperature: 3.2C Average wind speed: 4.7 m/s In 2015 the three solar PV arrays produced approximately 37,763 kWh of electrical energy at a capacity factor of 14.1%. The carbon dioxide offset due to this study was approximately 26,300 pounds as compared to energy production from coal. The actual production data matched the simulated data relatively well except for the months of January and December, 2015.
Relative performance of arrays in the short and long term. Correlation of actual data to modeled data in a Minnesota climate. Generation reaction to weather, e.g., cloud cover and low light situations. Validate vendor claims in regards to production. Understand installation methods
and procedures. Performance measured against standard pyranometer measurements Production data was acquired from an E-Gauge system and MV90 inverter data from MP. Weather data was provided by a weather station at the GSC. Trina Solar $ 112,375 Net Cost $
57,818 Month Total Production (kWh) Capacity Factor (% ) Jan-15 1,277 5.6 Feb-15 2,663 13.0 Mar-15 3,940 17.4
1,580 Dec-15 531 2.3 Total 37,763 14.1 TenK Solar 40 24 Installed DC (kW)
10.66 10.00 9.84 Installed AC (kW) 10.00 10.00 9.00 30 30 Mounting System
70,000 Total Incentives 0.10 $ TSM-PA05.08 250Wp Inverter Used $ $ 52 Total Ballast Weight (Pounds) 42,375 MP SolarSense Rebate
$ SiE 205Wp Total Space Used (ft2) $ $ Total Modules Module Space Used (ft2) 170,193 MP Conservation Contribution Incentives
Estimated Payback Estimated Payback Est. Yearly Energy Period, No Incentives Period, With Savings ($) (Years) Incentives (Years) 0.05 $ 1,888.16 90.1 30.6 Model Number Tilt (Degrees) $ Cost of Electricity ($/kWh) This study was to be an empirical
study to investigate actual solar PV performance in a Northeastern Minnesota environment. Silicon Energy Total System ($) Total Installed Cost RAIS XT-A 410Wp 26 832 704 667 1,551
1,470 1,097 18,656 21,856 7,840 Frontius IG Plus 10.1-3 Delta Frontius IG Plus 10.1-3 Delta APS TY500A Microinverter AET Rayport B AET Rayport B Integrated into System
7.2 Thank you! Questions? Stacy Miller Solar Policy Specialist (651) 539-1859 Paul Helstrom Renewable Program Lead (218) 355-3270 [email protected] 30 Appendix: How solar works 31 Minnesota Solar Resource Good solar potential in
MN Solar PV likes it cool and clear Good installation sites can produce 12501350 kWh per year per kWp installed 32 PV Systems 33 Grid Tied System Components DC Disconnect DC AC Inverter
34 Grid Tied Battery Backup Main Panel Solar Backup panel Charge Controller Inverter/Transfer Switch 35 Entering the Market Parties interested in joining the market of solar installation companies should consider: Skills needed Tools needs Services values and expected 36
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