1. DC
U.S. Solar and Storage Policy Trends Solar Canada Conference June 21, 2018
Autumn Proudlove
Senior Manager of Policy Research
NC Clean Energy Technology Center

2. About the NC Clean Energy Technology Center
Public Service Center administered by the College of Engineering at North Carolina State University
Mission is to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies practices, and policies. 
Objective research, analysis, & technical assistance – no advocacy
Manage the Database of State Incentives for Renewables and Efficiency (DSIRE –

3. About the 50 States Report Series
Quarterly publications detailing state and utility changes related to: (1) solar policy & rate design, (2) grid modernization and energy storage, and (3) electric vehicles

4. U.S. Solar & Storage Policy Trends
Alternatives to traditional net metering

5. Q1 2018 Proposed or Enacted Changes to Net Metering Policies by Type
Customer Credits for Monthly Net Excess Generation (NEG) Under Net Metering
Q Proposed or Enacted Changes to Net Metering Policies by Type
Aggregate Cap
Credit Rates or Successor Tariff
Other Changes to NEM Rules
Compensation for Net Excess Generation
System Size Limits DC
25 States + DC took action on DG Compensation Policies during Q1 2018

6. www.dsireusa.org / March 2015
Net Metering and Distributed Generation Compensation Policies
/ June 2018
Customer Credits for Monthly Net Excess Generation (NEG) Under Net Metering
/ March 2015
No statewide distributed generation compensation rules
Statewide distributed generation compensation rules other than net metering
No statewide mandatory net metering rules, but some utilities offer net metering
State-developed mandatory net metering rules for certain utilities DC 6

7. www.dsireusa.org / March 2015
Net Metering and Distributed Generation Compensation Policies
/ June 2015
Customer Credits for Monthly Net Excess Generation (NEG) Under Net Metering
/ March 2015
No statewide distributed generation compensation rules
Statewide distributed generation compensation rules other than net metering
No statewide mandatory net metering rules, but some utilities offer net metering
State-developed mandatory net metering rules for certain utilities DC 7

8. Why are changes under consideration?
Concerns about cost-shifting
Majority of fixed & demand-based costs for residential customers generally recovered through variable rates; bill reduced through NEM
Others suggest benefits of DG negate or reverse cost shift
Efforts to become more granular in solar valuation and compensation
NEM is easy to understand, but a rough mechanism
Utilities reaching net metering aggregate caps
Sometimes an impetus for considering changes

9. DG Compensation Structures
Net Metering
One-to-one offsetting of production & consumption over the entire billing period
Net Billing
Electricity produced may be consumed directly on-site (effectively a retail rate credit); excess generation is credited at a separate rate (ex. avoided cost, value of solar)
Buy-All, Sell-All
Total production is credited at one rate; total consumption is charged at another rate

10. Net Metering States continuing traditional net metering: California
Moving to time-of-use rates, adopted certain non-bypassable charges
Will reevaluate in 2019
Vermont
Adopted credit adjustors for system size, siting, and REC ownership
New Hampshire
Reduced net excess generation credit rate
Nevada
Ended net metering, but later reinstated for small customers
Net excess generation credit rate declines as installed capacity increases

11. Net Billing Most common alternative to net metering so far
Different approaches to credit rates for exported energy
Value-based
Avoided cost
Time-varying
Location-based

12. DG Compensation Structures
States adopting net billing policies:
Arizona
Excess generation credited at avoided cost
Indiana
Excess generation credited at 2.5 times avoided cost
Utah
Excess generation credited at slightly below retail rate
Proceeding is open to develop a more permanent credit rate
Michigan
Excess generation credited at avoided energy and capacity rate
New York
Excess generation credited at a value of distributed energy resources rate

13. Buy-All, Sell-All Least common approach
Adopted by only one state – Maine
Credit rate gradually decreases over 10 years until reaching the energy-only rate

14. U.S. Solar & Storage Policy Trends
Alternatives to traditional net metering
Efforts to quantify the value of solar

15. Q1 2018 Action on Distributed Solar Valuation and Net Metering Studies
No recent action DC
17 States + DC took action on distributed solar valuation during Q1 2018 15

16. DG Valuation Studies

17. Source: Rocky Mountain Institute

18. DG Valuation
Some states are applying the value of solar approach to compensation policies
New York – Value of Distributed Energy Resources tariff
Minnesota – Community solar
Oregon – Community solar

19. U.S. Solar & Storage Policy Trends
Alternatives to traditional net metering
Efforts to quantify the value of solar
Diverse approaches to community solar policies

20. Q1 2018 Action on Community Solar Policy
No recent action
15 States took action on community solar policy during Q1 2018 20

21. Community Solar Policies and Programs
Enacted Community Solar Policy
Active Utility-Involved Program
No Policy DC
19 States + DC have a statewide community solar policy
Information from the NC Clean Energy Technology Center and the Smart Electric Power Alliance (2017 Solar Market Snapshot) 21

22. Community Solar Policy Trends
State programs have different system size limits, program caps, and other requirements.
State
System Size
Program Cap
Colorado
2 MW
Varies by utility DC
5 MW
Unlimited
Hawaii
3 MW (Oahu), 1 MW (others)
Phase 1: 8 MW, Phase 2: 64 MW
Maryland
200 MW
Minnesota
1 MW
New Jersey
TBD by Board of Public Utilities
New York
North Carolina
40 MW
Vermont
500 kW
Virginia
50 MW

23. Credit Rate Description
State
Credit Rate Description
Colorado
Total aggregate retail rate
Hawaii
Phase I: Flat credit rates, based on mid-day rates
Phase II: Time-varying credit rates
Maryland
Retail rate
Minnesota
Value of solar rate
New Jersey
TBD by Board of Public Utilities
New York
Value of solar rate (includes credit for energy, capacity, demand reduction, locational system relief value, and environmental value)
North Carolina
Avoided cost rate
Oregon
Value of solar rate (under development)
Vermont
Blended residential retail rate; all production is subject to credit adjustors (positive and negative) based on system size, site location, and REC ownership

24. Community Solar Policy Trends
States are working to increase opportunities for low-income customers to participate in community solar programs
Establishing carve-outs within community solar programs for low-income participants
Maryland – 60 MW set aside for projects focused on LMI customers
Connecticut S.B. 336 – 10% carve-out for low-income customers
Providing incentives for low-income community solar projects or locating projects in designated “environmental justice areas”
Illinois Solar for All program
Massachusetts SMART program
New York PSC Staff proposal

25. U.S. Solar & Storage Policy Trends
Alternatives to traditional net metering
Efforts to quantify the value of solar
Diverse approaches to community solar policies
Expansive state-led grid modernization efforts

26. What is Grid Modernization?
Everyone has a different definition – some narrower, some broader
Making the grid more reliable, resilient, flexible, secure, clean, efficient, interactive, etc.
Deploying technology to achieve these goals
Also reforming policy, regulation, and rates to enable technology deployment
Very complex and challenging task – many different goals to achieve

27. Grid Modernization Activity Q1 2017-Q1 2018

28. Q1 2018 Grid Modernization Activity

29. Grid Modernization
Expansive investigatory proceedings are underway in several states
Illinois – NextGrid
(1) New Technology & Grid Integration, (2) Electricity markets, (3) Customers & Community Participation, (4) Regulatory, Environmental, and Policy Issues, (5) Metering, Communications, & Data, (6) Reliability, Resiliency, & Cybersecurity, (7) Ratemaking
Maryland – Public Conference 44
(1) Rate Design, (2) Electric Vehicles, (3) Competitive Markets & Customer Choice, (4) Interconnection, (5) Energy Storage, (6) Distribution System Planning
Ohio – PowerForward
(1) Glimpse of the Future, (2) Exploring Technologies, (3) Ratemaking & Regulation
Rhode Island – Power Transformation Initiative
(1) Utility Business Models, (2) Grid Connectivity & Functionality, (3) Distribution System Planning, (4) Beneficial Electrification

30. U.S. Solar & Storage Policy Trends
Alternatives to traditional net metering
Efforts to quantify the value of solar
Diverse approaches to community solar policies
Expansive state-led grid modernization efforts
Energy storage starring in grid modernization activities

31. Q1 2018 Action on Energy Storage, by Type of Action

32. Energy Storage Policy Actions
Studies
Energy storage specific
Part of broader studies
Integrated Resource Planning
How is storage evaluated against traditional generation resources?
Non-Wires Alternatives
How are energy storage and other DERs evaluated as alternatives to traditional T&D investments?
Distribution System Planning
Hosting capacity mapping, locational value

33. Energy Storage Policy Actions
Storage Rate Tariffs
TOU rates, demand charges
Procurement Targets
California, Oregon, Massachusetts, New York, New Jersey
Clean Peak Standards
Interconnection Rules
Net Metering Rules
Financial Incentives
Tax Credits, Rebates, Grants, etc.

34. Takeaways
There will continue to be a high level of policy activity and change – part of a broader shift in the energy system
Generally moving toward increased granularity, complexity
States are operating as laboratories of innovation, each taking different approaches to solar, grid modernization, and energy storage
Lots of opportunity to learn from other jurisdictions!

35. Questions? Autumn Proudlove Senior Manager of Policy Research
NC Clean Energy Technology Center