1. Solar Moving Forward … With or Without Wisconsin Michael Vickerman WFU Eau Claire January 23, 2015

2. About RENEW Wisconsin Advocates for state-level sustainable energy policies since 1991 One of the architects of the state’s Renewable Energy Standard and ratepayer-funded public benefits program Founded in 1991 Nonprofit – funding comes from grants, members Over 250 members (businesses and individual) An organized voice for renewable energy producers and purchasers Please join! Sunny morning (10-21-11) Aldo Leopold Legacy Center Baraboo Installer: H&H Solar

3. Outline of Presentation  Solar’s Attributes  The Year (2014) in Review  National  Wisconsin  Opportunities going forward

4. Why Solar Energy?  Clean, local, widely available and scalable (from a customer’s perspective)  No fuel cost  Only energy resource that turns itself off at night  Can be placed anywhere on a utility’s distribution system  High correlation between daytime peak load conditions and sunshine

5. Other Benefits  The sun isn’t going to run out (~5 billion years)  Lock in electricity prices for 25+ years  25-year warranties on solar modules  25-year warranties on inverters (equipment)  And now….it makes economic sense for many people, businesses, and organizations

6. Perhaps Most Important … Solar is a zero fuel cost technology not subject to grid operator dispatch protocols. This means solar will always produce electricity when the energy resource is available, unlike several recently constructed and rate-based power plants built in Wisconsin (West Campus Cogen, Elm Road, Rothschild)

7. “I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait till oil and coal run out before we tackle that.” --Thomas Edison

8. Solar Is Versatile Where I live

9. Renewable Energy Creates Jobs

10. Prices Are Decreasing WI: 2013 residential system $4.63 / watt (source: Focus on Energy)

11. “Third Party” financing models allow more people to participate in solar Source: Solar Power to the People: The Rise of Rooftop Solar Among the Middle Class. Center for American Progress, October 2013

12. The Deep South states aren’t sitting around on their collective duffs Georgia’s Debbie Dooley with Melissa VanOrnum and Steve Dvorak of DVO Mississippi – Commission- requested net metering report shows solar worth more than it costs Georgia – 525 MW of solar at 5-6 cents per kWh; 1800 solar jobs South Carolina – 3 rd party leasing, statewide net metering, and no solar taxes until at least 2021

13. Ale Asylum, Madison 2014 Renewable Energy Honor Roll 100 kW PV array atop brewery

14. Astro Industries, Green Bay 2014 Renewable Energy Honor Roll 113 kW PV array atop manufacturer

15. Holy Wisdom Monastery, Middleton 2014 Renewable Energy Honor Roll 145 kW PV array atop monastery

16. Milwaukee Public Museum 2014 Renewable Energy Honor Roll

17. First Community Solar project, Westby Vernon Electric Cooperative 1,001 panels | 305 kW (about 40 homes’ annual usage) | 120 owners $600 per panel | $35 savings per year | 5.8% return Photo: Vernon Electric Cooperative About 3 in 4 utility customers DON’T have good access to solar (shading, roof condition, etc…)

18. RENEWABLE ENERGY BUSINESS OF THE YEAR Presented To: Eland Electric Corporation, Green Bay For designing and bringing to fruition a portfolio of large and small solar electric projects totaling nearly one megawatt of generation capacity, serving a variety of northeast Wisconsin customers including manufacturers, health care providers, religious communities, tribal entities, small businesses and homeowners.

19. Eau Claire is a Solar Hotspot

20. Wisconsin Solar Rebound ** 2014 data is preliminary

21. Challenges notwithstanding, solar is still a good value Assume $3.50 per kW installed cost Assume 5 kW solar PV system, producing ~ 6,000 kWh of electricity per year System Price: $17,500 Focus on Energy Rebate: $2,400 Federal Tax Credit: $4,530 Net system price: $10,570 “Simple payback”:14.7 years* * 6,000 kWh of electricity, assume 12 cents per kWh electric rate, $720 in energy production per year. Shorter payback if you are on “Time of Use” rates with higher prices for peak times

22. Utility rate restructuring proposals cloud clean energy outlook in Wisconsin

23. Rate Cases: We’re headed our own way

24. We Energies rate case proposals Solar Generators – 2016 (residential/small business classes)  New capacity demand charge ($3.80/kW/mo.)  Higher 2nd meter fee ($1.40  $3.40/mo.)  Monthly netting instead of annual netting  Prohibiting leased generation arrangements (current legal ambiguity continues)

25. Rationale for rate restructuring Utility Argument  PV system owners are being subsidized by other customers  Fixed costs should be recovered through fixed charges.  “Economically efficient” price signals will help customers make “better choices.”

26. The real motivations for the utility counter-attack  Flat sales  Capacity overhang  Fear of losing market share  Friendly PSC

27. Wisconsin electricity sales, by year (in megawatt-hours - MWH) Year Total 201368,767,000 (est.) 201268,839,000 201168,611,622 201068,752,417 200966,286,439 200870,121,827 200771,301,300 200668,695,000 200570,335,000 200467,800,000 http://www.eia.gov/electricity/monthly/pdf/epm.pdf

28. Generation added in 2014  Customer-generated solar, hydro and biogas (~4 MW)  Utility-sponsored, customer-driven solar (~500 kW)  Utility-owned hydro (2.8 MW No utility fossil generation – zero!!!

29. Wisconsin’s Electricity Mix (2012): Where we’re starting from today 0.02% WI Solar’s Current Contribution Source: Public Service Commission, Strategic Energy Assessment for 2020, Page 14

30. People & businesses understand and care about these issues Over 1,900 public comments filed on WE Energies case. 89% opposed to rate redesign and de facto solar tax.

31. We Energies rate case outcomes Solar Generators – 2016 (residential/small business classes) New capacity demand charge ($3.80/kW/mo.) Higher 2nd meter fee ($1.40  $3.40/mo.) Monthly netting instead of annual netting X Prohibiting leased generation arrangements (current legal ambiguity continues) After the hearing record was closed, We Energies agreed to a 10- year exemption for certain existing solar owners Note: installations after 10/7/2014 not covered)

32. Fallout … WE’s de facto equipment tax is the largest of its kind approved by any utility commission in the United States RENEW + The Alliance for Solar Choice file a lawsuit yesterday challenging PSC decision filed.

33. Looking to the Future of Wisconsin Solar “Let’s give solar a shot at being a walk-on to Wisconsin’s energy team.” Mark Tauscher, former Green Bay Packer 0.02%

34. Sizing Up Wisconsin The Good, Bad & Ugly Positives Higher energy rates than in neighboring states Still have Focus on Energy incentives for 2 more years Negatives Uncertainties over net metering structure, including exposure to future penalties No requirement on WI investor- owned utilities to incorporate solar into their energy mix, which would give them more flexibility in rate-basing solar

35. Who is going to lead on solar electricity? Who is going to fill the vacuum left by state govt.?  Local units of government  Sustainably minded organizations (Habitat for Humanity, Transition Eau Claire, Wisconsin Farmers Union, faith communities)  Proactive electric providers and their customers  Solar cooperatives

36. Neighborhood Residential Solar, Milwaukee Milwaukee Shines, Office of Environmental Sustainability, City of Milwaukee Bay View Neighborhood Group Purchase. 40 PV systems installed, 2014 Contractor: Arch Electric

37. Habitat for Humanity EcoVillage, River Falls RIVER FALLS, Wis. -- The conservation friendly housing cluster that makes up the River Falls EcoVillage has been recognized in the trade magazine GreenBuilder as a winner of one its “Green Home of the Year Awards.” (Completion expected summer 2015) Photo credit: Pierce County Herald

38. Solar (Community) – Barron Electric Cooperative

39. Legacy Solar Wisconsin Cooperative Legacy Solar Wisconsin Cooperative Basic Model Legacy Solar Coop Members Host Site in Community Shared Savings Solar used onsite Solar Savings Agreement

40. Growing Solar in Wisconsin 1.Education & Motivation – thank you for coming today! 2. Make it easier for people to participate a.Allow third-party ownership (nearly 70% nationally of installs use this) i.“No-money-down” solar options ii.Can the government or a utility control your decisions on your property? iii.“Get out of the way” of private enterprise: $3.3 Billion in 2013 investment b.Expand community solar programs c.Cut red tape (permitting, interconnection) to save hassle, time, and money 3. Let’s set a goal a.Minnesota – 1.5% of electricity by 2020 law, 10% by 2030 goal Photo: Heidi Speight, RENEW Wisconsin; Church solar in Hartland, WI

41. Thank You! Michael Vickerman RENEW Wisconsin mvickerman@renewwisconsin.org 608-255-4044 ext. 2