Solar Policy Priorities for West Virginia 4th Annual West Virginia Solar Congress April 27, 2019 James M. Van Nostrand Professor and Director, Center for Energy and Sustainable Development West Virginia University College of Law Center for Energy and Sustainable Development

Overview of Solar Policies Rigorous Integrated Resource Planning Net Metering Renewable Portfolio Standard with Solar carve-out Third-party ownership of Solar PV (Autumn) Enunciated state goals for solar penetration State greenhouse gas (GHG) reduction goals State tax policies encouraging distributed solar PV Center for Energy and Sustainable Development

Integrated Resource Planning Current statute (§24-2-19) Deficiencies Not integrated Not used for anything Not frequent enough (every five years) Experience under current statute Appalachian Power IRP FirstEnergy IRP Center for Energy and Sustainable Development

Integrated Resource Planning Appalachian Power IRP (January 1, 2016) Center for Energy and Sustainable Development

Integrated Resource Planning FirstEnergy IRP (December 30,2015) Center for Energy and Sustainable Development

Integrated Resource Planning FirstEnergy IRP Center for Energy and Sustainable Development

Integrated Resource Planning FirstEnergy IRP Center for Energy and Sustainable Development

Net Metering Center for Energy and Sustainable Development

Net Metering Straightforward, simple policy to pay retail rate for output of customer-sited solar PV Many states re-visiting policy to make pricing less generous for solar Decline in prices, increased efficiency of solar PV have combined to change economics Perceived “cost shift” of non-generating customers subsidizing customers through paying in excess of avoided costs Example: New York’s “value stack” Center for Energy and Sustainable Development

Renewable Portfolio Standard Former Alternative and Renewable Energy Portfolio Standard repealed in January 2015 First state in country to repeal an RPS Worthless measure anyway, but negative impression Surrounding states (Except Ohio) have closed borders to interstate distributed solar Limited market for SRECs generated in West Virginia Center for Energy and Sustainable Development

Renewable Portfolio Standard Center for Energy and Sustainable Development

RPS + DERs/Solar Center for Energy and Sustainable Development

Third-Party Ownership (Autumn) Center for Energy and Sustainable Development

State Solar Goals Other states are committed to procuring ambitious amounts of utility-scale and distributed solar Center for Energy and Sustainable Development

State GHG Reduction Goals Articulates a state policy favoring non-carbon resources For on-site generation, gives solar an advantage over combined heat and power (CHP) Can be accompanied by “putting a price on carbon” Center for Energy and Sustainable Development

State Tax Policies Other states have provisions in their tax codes encourage solar PV Incentives in addition to those under federal tax law Center for Energy and Sustainable Development

Questions/Comments? James M. Van Nostrand (304) 293-4694 West Virginia University College of Law Center for Energy and Sustainable Development james.vannostrand@mail.wvu.edu (304) 293-4694 Center for Energy and Sustainable Development