1. International Energy Policy Trends Dennis Scanlin Appalachian State University March 2011

2. Energy Policy Trends Renewable energy policy is the principal driver of the growth in renewable energy use. Regulatory Policies Incentive Policies Disincentive Policies Feebates (combined fee & rebate program) DSIRE data base good source for information about US policiesDSIRE

3. Public Policies and Renewable Energy Technology

5. Regulatory Policies Renewable Portfolio Standards Permitting Policies Zoning Ordinances Building Codes & Sustainable Building Requirements Equipment & Installer Certification programs

6. Renewable Portfolio Standards (RPS) Mandated requirement that electric utilities source a portion of their electricity supplies from renewable energy sources Australia, Japan, Korea, Sweden, & US

7. RPS Policies Renewable portfolio standard Renewable portfolio goal www.dsireusa.orgwww.dsireusa.org / March 2011 Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources WA: 15% x 2020* CA: 33% x 2020 NV : 25% x 2025* AZ: 15% x 2025 NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops) HI: 40% x 2030 Minimum solar or customer-sited requirement TX: 5,880 MW x 2015 UT: 20% by 2025* CO: 30% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* MT: 15% x 2015 ND: 10% x 2015 SD: 10% x 2015 IA: 105 MW MN: 25% x 2025 (Xcel: 30% x 2020) MO: 15% x 2021 WI : Varies by utility; 10% x 2015 statewide MI: 10% + 1,100 MW x 2015* OH : 25% x 2025 † ME: 30% x 2000 New RE: 10% x 2017 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereafter) RI: 16% x 2020 CT: 23% x 2020 NY: 29% x 2015 NJ: 22.5% x 2021 PA: ~ 18% x 2021 † MD: 20% x 2022 DE: 25% x 2026* DC: 20% x 2020 NC : 12.5% x 2021 (IOUs) 10% x 2018 (co-ops & munis) VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 KS: 20% x 2020 OR : 25% x 2025 (large utilities )* 5% - 10% x 2025 (smaller utilities) IL: 25% x 2025 29 states + DC and PR have an RPS (7 states have goals) 29 states + DC and PR have an RPS (7 states have goals) OK: 15% x 2015 PR: 20% x 2035 WV: 25% x 2025* † VA: 15% x 2025* DC

8. North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS) August 2007 First state in the Southeast 12.5%by 2021 from renewable energy resources or energy efficiency measures. Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement Approx 20,000 Million KWH/year

9. REPS Requirements for IOUs Acceptable methods of attaining goals Generate at new RE facility Use a RE resource to generate electric power Reduce consumption (up to 25% up to 2021 & 40% after) Purchase power from new RE facility (outside state) Purchase RE certificates (up to 25%) Requirements for solar & biomass

10. NC REPS 140 applications received by PUC since October, 2008 107 facilities registered 2 KW to 300,000 KW 39 hydro projects 27 PV projects 17 wind projects 7 solar thermal 6 landfill gas 8 biomass 2 swine & poultry waste 2,980,327 KW registered with NC Utilities Commission

11. Permitting of Wind Energy Facilities House Bill 809; Senate Bill 1068 > 2 MW Permitting requirements defined $2,000 application fee Impact assessment work required Public hearing(s) required Defines who gets to evaluates permit application and decide whether a permit is issued or not.

12. Model County Ordinance for NC 3 size classifications Under 20 kW 20 kW to 100 kW Over 100 kW Setbacks from 1.1 to 2.5 times height of turbine Includes standard definitions, permit application recommendations, noise & shadow flicker maximums & decommissioning

13. Codes & Sustainable Building Requirements Requirements for new buildings Australia, Canada, Switzerland, Denmark, Germany, Spain, Korea, Portugal, Turkey, & US New public buildings in Korea must spend 5% of budget installing RE

14. Installer Certification Programs

15. Equipment Certification

16. Incentives Feed-In Tariffs (FIT) Rebates Tax Credits Net Metering Low Interest Loans Grants Accelerated Depreciation

17. Feed-In Tariffs (FIT) Government guarantees a high price for green energy with a long term contract Most common incentive program Australia, Austria, Canada, Switzerland, Germany, Spain, France, Israel, Italy, Japan, Korea, Portugal, Netherlands, Sweden, US

18. Example FITs Canada’s 2009 program provides 20 year contracts for up to $.80/kWh. (price varies by energy source) Italy’s 2007 program pays up to $.52 - $.67/kWh with a long term contract and quota Israel’s 2009 program pays $.55/kWh with quota

19. Rebates Provides cash back after the completion of project (50% of installed cost common) California- $2.50/watt for PV & Solar thermal New York - $1.75/watt for PV with maximums; $3.50 per kWh for expected annual wind energy production up to 10,000 kWh and less after that Australia provides a 50% rebate

20. Rebate Programs for Renewables www.dsireusa.orgwww.dsireusa.org / March 2011 Utility, local and/or non-profit program(s) only State program(s) + utility, local and/or non-profit program(s) Notes: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. The Virgin Islands also offers rebates for certain renewable energy technologies. State program(s) only Puerto Rico DC 23 states + DC & PR offer rebates for renewables 23 states + DC & PR offer rebates for renewables

21. Tax Credits Reduces tax liability based on a percentage of installed cost of renewable energy system Canada, Switzerland, France, Japan, Malaysia, Portugal, & US North Carolina offers a 35% state tax credit up to $10,500 for residential renewable energy systems US government offers a 30% tax credit for solar thermal, wind & geothermal heat pumps

22. System Costs & Incentives for 3 Panel Solar Water Heating System Installed costs can range from $90 to $120 per square foot Incentives available 35% NC State Tax Credit Federal tax is paid on state tax credit 30% Federal Tax Credit Accelerated depreciation of renewable energy system

23. Tax Credits for Renewables www.dsireusa.orgwww.dsireusa.org / March 2011 Corporate tax credit(s) only Personal + corporate tax credit(s) Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps. Personal tax credit(s) only Puerto Rico DC 23 states offer tax credits for renewables

24. Netmetering Provides the retail rate for electricity by either allowing the electric meter to turn backwards or providing a credit for renewable energy produced Demark, Australia, Austria, Canada, Italy, Mexico & US have programs NC program Residential and commercial up to 1 MW Excess generation is carried forward until summer billing season at then surrendered. No cash payments Only investor owned utilities have to make net metering available

25. Net Metering State policy Voluntary utility program(s) only www.dsireusa.org / February 2011 * State policy applies to certain utility types only (e.g., investor-owned utilities) WA: 100 OR: 25/2,000* CA: 1,000* MT: 50* NV: 1,000* UT: 25/2,000* AZ: no limit* ND: 100* NM: 80,000* WY: 25* HI: 100 KIUC: 50 CO: no limit co-ops & munis: 10/25 OK: 100* MN: 40 LA: 25/300 AR: 25/300 MI: 150* WI: 20* MO: 100 IA: 500* IN: 10* IL: 40* FL: 2,000* KY: 30* OH: no limit* GA: 10/100 WV: 25/50/500/2,000 NC: 1,000* VT: 20/250/2,200 VA: 20/500* NH: 100 MA: 60/1,000/2,000/10,000* RI: 1,650 / 2,250 / 3,500 * CT: 2,000* NY: 10 / 25/500/2,000* PA: 50/3,000/5,000* NJ: no limit* DE: 25/100/2,000 co-ops & munis: 25/100/500 MD: 2,000 DC: 1,000 Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes. NE: 25 KS: 25/200* ME: 660 co-ops & munis: 100 PR: 25/1,000 AK: 25* 43 states + DC & PR have adopted a net metering policy DC

26. Green Power Schemes Allows customers to purchase green electricity from renewable energy usually at a premium price Australia, Austria, Canada, Switzerland, Germany, Spain, Italy, Japan, & US

27. NC GreenPower NC GreenPower (NCGP) is a statewide program designed to improve the quality of the environment by encouraging the development of renewable energy resources and the mitigation of greenhouse gas emissions through consumers’ voluntary funding.

28. NC GreenPower Program Started in 2003 Voluntary program Advanced Energy administers program First Statewide green power program in US Involves IOUs, electric cooperatives and municipalities 1,000 KW in 2010 $.15/KWH for PV < 10 KW $.09/KWH for Wind < 10 KW

29. Sources of NC GreenPower Raleigh Asheville Nags Head Haw River

31. Disincentives Carbon Tax – an environmental tax on the carbon content of fuels South Africa, India, South Korea, Denmark, Finland, Germany, Italy, Netherlands, Norway, Slovenia, Sweden, Switzerland, UK, some US states Many countries considering the carbon tax concept

32. Feebates Self financing (revenue neutral) system of fees and rebates that are used to shift the cost of externalities onto the responsible companies or individuals Used to shift buying habits California “Clean Car Discount” program taxes the purchase of high emission vehicles and using the fees to rebate the buyers of low emission vehicles