1. The Great Incentives Scavenger Hunt: A State Policy Update Rusty Haynes N.C. Solar Center / NCSU 3rd Annual SEMI North American PV Fab Managers Forum San Francisco, CA 9 July 2012

2. Created in 1995 Funded by U.S. DOE / NREL Managed by NCSC / NCSU Scope = government & utility incentives & policies that promote RE/EE ~ 2,700 total summaries ~175,000 users per month DSIRE Solar (dsireusa.org/solar) DSIRE data services for businesses (dsireusa.org/services) DSIRE Overview

3. Why is the U.S. PV market challenging? Investor-owned (210) Public utilities (2,009) Electric co-ops (883) Federal (9) Federal (1) States, territories, DC (~65) Counties (3,143) Municipalities (~30,000) Regulatory Regimes Electric Utilities

4. Source: U.S. Energy Information Administration U.S. Electric Industry Average Revenue per kWh (March 2012)

5. RPS Policies with Solar/DG Provisions RPS with solar / DG provision RE goal with solar / DG provision (Source: DSIRE, June 2012) WA: double credit for DG NV: 1.5% solar x 2025; 2.4 - 2.45 multiplier for PV UT: 2.4 multiplier for solar-electric AZ: 4.5% DG x 2025 NM: 4% solar-electric x 2020 0.6% DG x 2020 TX: double credit for non-wind (non-wind goal: 500 MW) CO: 3.0% DG x 2020 1.5% customer-sited x 2020 MO: 0.3% solar- electric x 2021 MI: triple credit for solar- electric OH: 0. 5% solar- electric x 2025 NC: 0. 2% solar x 2018 MD: 2% solar x 2020 DC: 2.5% solar x 2023 NY: 0.4092% customer- sited x 2015 DE: 3.5% PV x 2026; triple credit for PV NH: 0.3% solar- electric x 2014 NJ: 5,316 GWh solar- electric x 2026 PA: 0.5% PV x 2021 MA: 400 MW PV x 2020 OR: 20 MW solar PV x 2020; double credit for PV IL: 1. 5% PV x 2025 0.25% DG by 2025 WV: various multipliers 16 states + DC have an RPS with solar/DG provisions DC † Solar water heating counts toward solar / DG provision † Fuel cells qualify for solar carve-out

6. UT: limited to certain sectors AZ: limited to certain sectors VA: see notes 3 rd -Party PV Power Purchase Agreements (PPAs) (Source: DSIRE, April 2012) Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state Puerto Rico At least 21 states + PR authorize or allow 3 rd -party PV PPAs

7. Net MeteringInterconnection www.freeingthegrid.org

8. State offers one or more industry incentives that apply to PV Puerto Rico DC 21 states + PR have industry recruitment incentives for PV (etc.) 21 states + PR have industry recruitment incentives for PV (etc.) Industry Recruitment/Support Incentives (Source: DSIRE, June 2012)

9. CT: Residential Solar Investment Program CT: Long-Term ZREC, LREC Contracts (CL&P, UI) DE: SRECs MA: Commonwealth Solar II Rebates MN: IOU PV rebates (MN Power, Excel) TX: Austin Energy Commercial PV Incentives WA: RE Production Incentives Some Programs Offer Bonus $$ for In-State Content…

10. CA: Net metering bolstered, new CSI $$, RAM/FIT evolution NJ, PA: SREC market mayhem CT: ZRECs & residential PV rebate program VT: FIT & expedited PV permitting expanded NY: NY-Sun Initiative IL: DG carve-out, net metering snafu MD: RPS shored up; net metering salvaged DE: SREC pilot program TX: 3 rd -party sales NH: RPS solar carve-out gutted Recent Major State Policy Developments

11. Key Points & Take-Aways Each state basically its own market. Markets driven by state policy, rates, solar resources. Federal policy a constant wildcard; focus is on states. Growing industry interest in state legislative & PUC arenas. Dominance of 3PO model - profitable, easy. More clarification needed nationally. Long-term perspective: a decade of overwhelmingly solid state policy progress, with little backtracking... until now? Implications of increasing policy complexity…

12. Thanks. 12 Rusty Haynes DSIRE Project Manager N.C. Solar Center / NCSU rusty_haynes@ncsu.edu 919.513.0445