Session 18 (R) Medium Scale PV Projects (Commercial, Industrial, Community) March 21, 2016

Session 18 - Value to class members In between rooftop (residential) PV installations and utility-scale solar projects, there is a wide array of additional systems in the solar energy enterprise: Commercial scale systems Industrial scale systems Community solar projects We will review some of the essential features of these projects 2

Wrap-up of Solar Policies The situation o 41 states have mandatory net-metering policies (for residential and community PV) It was 43 states, but Hawaii and Nevada have replaced net metering with net billing o In 2015, 46 states took some form of solar policy action, 30 considered or enacted changes to net-metering rules Hawaii grandfathered existing net metering customers Nevada eliminated net metering for all solar customers California adopted “NEM2.0” – net metering continues, but the 3 large IOUs no longer have to offer net metering after July

Wrap-up of Solar Policies, cont. The situation, cont. o 61 utilities in 30 states proposed increasing monthly fixed charges on all residential customers o 21 utilities in 13 states proposed adding new charges to residential customers with rooftop solar o 24 states formally examined or resolved to examine some element of the value of distributed generation o 10 states have changed or are considering a change to the Aggregate Cap 4

Wrap-up of Solar Policies, cont. NC Clean Energy Technology Center: The 50 States of Solar, 4Q2015 “Some states have produced conflicting outcomes that indicate the lack of consensus regarding valuation approaches and methodology. The Public Service Commissions of Louisiana commissioned a study of the impacts of net metering and found that NEM customers do not pay the full cost of service and are subsidized by other rate payers. A similar study commissioned by regulators in the neighboring state of Mississippi in 2014 found that the net grid impact of distributed generation exceeded the retail rate of electricity.” 5

Wrap-up of Solar Policies, cont. 6

NC Clean Energy Technology Center: The 50 States of Solar, 4Q2015 “Aggregate caps are typically a limit on the total amount of net- metered capacity in a utility service territory. State net metering policies can include no aggregate cap, have a discretionary aggregate cap, or specify a firm aggregate cap. Caps have historically been set on an ad hoc basis, rather than an evidence-based determination of the technical limits of what the grid can accommodate; over time, many states have increased their caps.” 7

Wrap-up of Solar Policies, cont. 8 NC Clean Energy Technology Center: The 50 States of Solar, 4Q2015

Wrap-up of Solar Policies, cont. 9 NC Clean Energy Technology Center: The 50 States of Solar, 4Q2015

Wrap-up of Solar Policies, cont. The situation in Arizona o UNS Electric: General Rate Case Net Metering, Fixed Charges, and Demand Charges Filed 05/15; Hearings at ACC 03/16 Docket E-04204A o Tucson Electric Power (TEP): Gen. Rate Case Net Metering, Fixed Charges, and Demand Charges Filed 11/15; Hearings at ACC 08/16 Docket E-01933A o AZ Public Service (APS): Distr. Solar Valuation Cost of service and benefits of DG Solar, Opened 10/15; Hearings at ACC 04/16 Docket E-00000J

Commercial Scale PV Characteristics o Size: 20kW – 500kW o Siting: Rooftop, Ground-mounted, Raised structures o Operation: 3-phase electrical system o Components: Very similar to those in a residential system, but larger energy scale, larger physical volume and area o Installation: Solar EPC firms o Incentives: Similar to rooftop, but additional features (depreciation, etc.) o Financing: Cash, Loans (Solar Banks), PPAs and Solar Leases 11

Commercial Scale PV Locations o Big Box store rooftops (Walmart, IKEA, etc.) o Shopping Malls o Solar Carports (Frys, Safeway) o Schools, Hospitals, Government buildings o Brownfields, Landfills o Industrial concerns (Frito-Lay, Purina, Southwest Baking) 12

Commercial Scale PV Consider REC Solar o o Design process – Peak Shaving o Excellent description of financing options 13

Community Solar Relatively new development in the Solar Energy enterprise A recent report about Community Solar from the Solar Electric Power Association (SEPA) begins with these points: 14

Community Solar Some definitions: Community Solar Program – A business model Community Solar Garden – A solar arrays in a CSP 15

Community Solar States with enabling legislation have the lead in CSP development (WA, MA, CO) 16

Community Solar States with enabling legislation have the lead in CSP development (WA, MA, CO) 17

Community Solar CSP Classification 18 Salt River ProjectGRID Alternatives

Community Solar Salt River Project (Copper Crossing) Tucson Electric Power (Bright Tucson Community Solar) 19

Community Solar SRP’s Community Solar Program 20

Community Solar 21

The PACE program 22

The PACE program 23

The PACE program 24

In AZ Legislature Bill HB 2584 Formation of Renewable Energy and Energy Conservation Districts  Allowed any municipality to form a renewable energy district to promote installation of photovoltaic systems (or efficiency measures or water saving systems). This is a variation of property assessed clean energy (PACE) enabling legislation  Sponsored by two new Representatives o Ethan Orr, Republican, LD 9 o Andrew Sherwood, Democrat, LD 26  Did not get out of House Committee on Energy, Environment, and Natural Resources

The PACE program 26