1. Green Energy Contractor Conference
Transitioning the Behind the Meter Solar PV Market in CT
Emily
November 29, 2018

2. Panelists
Moderator: Emily Basham, CT Green Bank
Panelists:
Selya Price, CT Green Bank,
Stephen Lassiter, Sunrun
Stephan Hartmann, Ross Solar, A ConEdison Solutions Company
Ed Merrick, Trinity Solar
James Schwartz, Independence Solar 
Emily 2 2

3. Agenda
Background
Overview and Status of PA 11-80, Section 7
Residential
Commercial
Key aspects and opportunities
Structure of tariff
Process of developing tariff
Impacts of decisions
Opportunities for contractors to get involved
Goal: Bring contractors up to speed on what’s been determined in the implementation of Section 7 tariffs, what’s left to be determined and the importance of all providing input into the process by which these tariff rates are set.
Emily 3 3

4. Background Comprehensive Energy Strategy (CES) finalized early 2018
Senate Bill 9 signed into law as Public Act in May implementing the CES:
Section 7 tariffs - fixed per kWh rate for 20 yrs for energy + RECs
Shared Solar Program - opens the market for 25 MW/yr of deployment
Commercial/Institutional Program – ZREC/LREC successor for 60 MW/yr
50 MW to ZREC-qualifying, 10 MW to LREC-qualifying
PURA establishes multi-track dockets for tariff-setting, current docket is PURA Implementation of Section 7 (Docket ); meaning many aspects of new structure are not yet determined
Residential Program – post-RSIP/300 MW market (starting Q3/Q4 of 2019)
PURA currently soliciting joint proposals on interim tariff which can bridge gap between RSIP and tariff structure
Retail net metering goes away for new customers, grandfathers RSIP customers through 2039 with net metering
Emily
Background:
SB9 Passed May 2018: Implements 2018 Comprehensive Energy Strategy, increases the Renewable Portfolio Standard 30% to 40% 2030, launched statewide shared clean energy program (community solar); adds Year 8 to LREC-ZREC program, transitions renewable energy procurement programs from net metering to compensation tariffs
Important for us to provide input into the process by which these tariff rates are set. Also strong support for shared solar in this legislation.
Want to see if can get tariff adder for LMI per CES priority
Docket details:
June 2018 – PURA Review of the Implementation Requirements of Section 7 of Public Act (Docket )
August 2018: PURA Implementation of Section 7 (Docket )
2018 Comprehensive Energy Strategy
(see if it provides support for an adder for low to moderate income customers)

5. Residential Overview Net metering plus RSIP (current compensation)
Net metering at retail rate plus incentive provided through Residential Solar Investment Program (RSIP) administered by CT Green Bank (REC value recovered through SHRECs).
RSIP established in PA 11-80, updated by PA to support deployment of not more than 300 MW of new residential solar PV in CT on or before Dec.31, and… foster the sustained, orderly development of a state-based solar industry.
RSIP has approved 240 MW as of 11/25/18 (30,000+ projects), and is anticipated to reach 300 MW of approved projects by early Q4 2019, depending on 2019 volume.
Emily
240 MW of approved and completed projects of 300 MW goal – 80% toward 2022 goal
Over 30,730 projects (240.4 MW)
54 MW are “pre-SHREC” (i.e., prior to January 1, 2015)
About 17% are EPBB or homeownership
We anticipate reaching 300 MW by early Q4 2019, but the exact timing will depend on volume – whether the winter months are slower as they usually are, and also how high volume will be in 2019 due to the impending program end.
Supporting transition from Net Metering + RSIP to tariff structure of compensation through Docket No
Supporting Interim Residential Tariff
Transition to full Tariff
Additional Info: The residential solar PV market in Connecticut has seen a dramatic improvement over the past decade. Installed costs have decreased by 57% from a high of $8.80/W in 2007 to $3.76W in FY18. Incentives have decreased by 94% from a high of $4.52/W in 2005 to $0.26/W today. Since RSIP’s inception in 2012, installed costs have decreased by over 20%, incentives have decreased by over 80%, and capacity additions increased 800% from 5.5 MW in 2012 to almost 50 MW in 2018 (as of 10/31/18, likely to reach nearly 60 MW by end of 2018). RSIP capacity additions increased 36% from 36.4 MW in 2017 to 49.6 MW in FY18 (again as of 10/31/18, likely to reach nearly 60 MW by end of 2018).

6. Residential Overview PA 18-50, Section 7 (new tariff structure)
New Compensation Structure
Legislation sets new structure, PURA proceedings determine details
Systems up to 25 kW, sized to onsite load, 1-4 family dwelling
Option 1: “buy all, sell all” or “buy all, credit all” (BASA)
Option 2: “net export” or ”use, buy, sell” (UBS)
Netting period for option 2 must be daily, sub-daily or instantaneous
Rate-setting based on 1) competitive solicitation results of larger C&I sector, or 2) average installed cost + “just, reasonable, adequate” customer rate of return. DEEP calculator to support rate-setting.
Possible adders for storage, location, TOU, other priorities in CES.
PURA may establish interim tariff (structure not predetermined
Status/Timing
Utility metering plus billing systems not yet ready for option 2 fully.
Interim tariff likely to be decided by end of 2018 and implemented by mid-2019 to overlap with RSIP and be available until tariff structure is fully implemented
Selya
Idea of change from current retail net metering to tariff structure was to decouple compensation mechanism for solar PV from retail rates – this potentially saves ratepayers money in the long term while still providing support to clean energy through a fixed 20 year tariff.
A lot is still open-ended (rate, interval, etc) but we have a good sense based on proceedings thus far and are able to highlight the major aspects that can impact deployment
There is a net export option that could provide an opportunity for more deployment of solar plus battery storage.

7. PA 18-50 tariff structures Metering configurations
Soon after the legislation passed, PURA quickly began docket to get the process started in determining what would be required to implement the tariff structures. Shown here are Eversource’s initial diagrams for what the metering would likely look like for the two tariff options.
During this docket, the utilities were also asked to present on their current metering and billing capabilities and it was determined that the utilities would need time to put in place the metering and billing that would be needed to be able to implement all options presented under the legislation, for example, metering and billing that would allow for the “use-buy-sell” option with daily or sub-daily netting (instantaneous netting would take less time to implement but would be more challenging for installers to implement from the perspective of estimating customer economics).
PURA DOCKET : PURA REVIEW OF THE IMPLEMENTATION REQUIREMENTS OF SECTION 7 OF PUBLIC ACT 18-50
Source: Eversource presentation to PURA 8/17/18

8. Commercial Overview PA 18-50, Section 7(a)
Pre-Determined: a) 20 Yr tariff, b) ≦ 2MW, c) 50 MW/year, d) competitive bids
PA Outlines
TBD in PURA Docket
Netting period ≦ 1 Day
Real-time/hourly/daily?
Project size tranches
i) # of tranches ii) size ranges?
BASA & Self-Consumption (Netting)
How to compare bids? (50 MW/yr)
Metering options
Real world implementation?
Fixed rate incentive
i) Cash and/or bill credit ii) to 3rd Party?
LREC/ZREC sized to customer load
How to define (combine on site meters, future load growth, EVs, etc..)?
VNM for Muni, State, Ag
3rd party sites?
Bid price cap
What level?
Other factors allowed
TOU pricing, Storage, Grid location?

9. Key aspects and opportunities Contractor commentary/discussion
Structure of tariff
BASA vs UBS – customers and opportunities
Netting interval
Self-consumption
Metering configuration and ability to incorporate battery storage
System sizing vs load
Interim tariff (see next discussion topic)
Aspects unique to commercial projects, including virtual net metering
Show that small change can make difference
What if and why important

10. Key aspects and opportunities Contractor commentary/discussion
Process of developing tariff
Residential
If basing tariff on cost-recovery plus rate of return, can use DEEP tariff calculator to support rate-setting process but important to provide feedback on key inputs including installed cost ($/W), utility escalator, rate of return
Timing important to sustain industry through transition - importance of and update on interim tariff
Commercial tariff development process

11. Key aspects and opportunities Contractor commentary/discussion
Impacts of decisions
Assuring that projects are financeable
Economics to customers and to investors
Are revenue streams taxable? If yes, need higher tariff rates.
Allowing for third party payments
Impact of decision around “sell” vs “credit”
Potential impacts to businesses and the state
Jobs, clean energy goals
Perspectives from operating in other states
Impacts and recovery when we don’t get policies right
Concern about tariff-based markets not being robust
Learning curve - don’t currently operate in tariff-based markets

12. Opportunities for Contractor Involvement
Engage with Solar Connecticut, other contractors, and the Green Bank to share your input - pooling knowledge to provide correct information and consistent message to provide the industry perspective into the PURA process
Check the Green Bank PowerClerk login page for RSIP progress toward 300 MW:
Engage in PURA dockets:
Tariff docket, Upcoming hearing on C&I procurement plan Dec. 4th 10am at PURA in New Britain
Distribution System Planning Docket, (has lots of background on utility systems)
Sign up for public notification s
*Must Use Internet Explorer for PURA site
PURA Investigation into Distribution System Planning of the Electric Distribution Companies (Docket No )
Green Bank providing input on future clean energy tariff framework, info sharing such as host capacity mapping, suggested updates to interconnection processes and requirements, and other opportunities to support deployment of distributed energy resources such as solar and energy storage. Opportunity here to address issues such as infrastructure/transformer upgrades.

13. APPENDIX

14. Federal Tax Credit for Solar Energy
Solar Investment Tax Credit
(Fuel cells and combined heat-and-power excluded in Dec. ‘15 tax extender package)
*In 2022, residential credit expires and commercial credit stays at 10%