1. The Context for Solar Resource Development: Where are we now? Amy Heinemann August 30, 2011 1

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4. US Electric Power Industry Net Generation, 2009 US Total Energy Consumption and Electricity Generation, 2009 Source: US Energy Information Administration, Electric Power Industry 2009: Year in Review, April 2011 4

5. State% Electricity Generation by Fuel Source CoalPetroleumNatural Gas Other Gases NuclearHydroOther Renewables Other Alabama38.80.222.10.127.78.82.10.3 Arkansas43.60.219.5-26.47.32.8- Florida24.84.254.3-13.40.121.3 Georgia540.515.9-24.62.52.2- Louisiana25.4248.41.318.41.42.60.5 Mississippi26.6-47.80.122.6-2.9- North Carolina 550.34.1-34.54.41.60.2 South Carolina 34.40.59.8-52.12.31.70.1 Tennessee52.20.20.5-33.812.81.2- Source: US Energy Information Administration, July 2011 5

6. Electricity Mix in the Southeast 6 Source: National Renewable Energy Laboratory, Southeast Regional Clean Energy Policy Analysis, January 2011

7. Electricity Consumption per Customer by Sector, US v. SE 7 Source: National Renewable Energy Laboratory, Southeast Regional Clean Energy Policy Analysis, January 2011

8. Average Retail Electricity Rates, 2009 8

9. Installed Nameplate Capacity, 2009 Source: US Department of Energy. Renewable Energy Databook. August 2010 9

10. Installed Nameplate Capacity (MW), 2009 Source: US Department of Energy. Renewable Energy Databook. August 2010 10

11. Barriers High upfront cost Low electricity rates Lack of financing options Permitting and interconnection processes Other policy-related barriers Education and awareness 11

12. Top Renewable Energy Generators - Biomass Source: US Department of Energy. Renewable Energy Databook. August 2010 12

13. Source: US Department of Energy. Renewable Energy Databook. August 2010 Top Renewable Energy Generators– Wind 13

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15. Top Renewable Energy Generators– Solar Source: US Department of Energy. Renewable Energy Databook. August 2010 15

16. Solar Installations in 2010 StateCapacity Installed in 2010 (MW-DC) Cumulative Installed Capacity (MW- DC) Alabama0.20.4 Arkansas0.61.0 Florida34.873.5 Georgia1.61.8 Louisiana-0.2 Mississippi0.10.3 North Carolina28.740.0 South Carolina-0.2 Tennessee3.84.7 Top 10 States, Grid-Connected PV in 2010 Top 10 States, Grid-Connected PV, Cumulative Source: Interstate Renewable Energy Council & Larry Sherwood, US Solar Market Trends 2010, June 2011 16

17. Renewable Energy Potential in SE 17 Source: National Renewable Energy Laboratory, Southeast Regional Clean Energy Policy Analysis, January 2011

18. Policy – A Complicated Web 18

19. To Make Sense of It… 19

20. Created in 1995 Funded by U.S. DOE / NREL Managed by N.C. Solar Center (NCSU) Scope = government & utility incentives & policies that promote RE & EE ~ 2,650 total summaries ~200,000 users/month DSIRE Solar Policy Guide for state policymakers Solar Policy Comparison Tables DSIRE Solar (dsireusa.org/solar) 20

21. Renewables Portfolio Standards Renewable portfolio standard Renewable portfolio goal www.dsireusa.orgwww.dsireusa.org / June 2011 Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources WA: 15% x 2020* CA: 33% x 2020 NV : 25% x 2025* AZ: 15% x 2025 NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops) HI: 40% x 2030 Minimum solar or customer-sited requirement TX: 5,880 MW x 2015 UT: 20% by 2025* CO: 30% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* MT: 15% x 2015 ND: 10% x 2015 SD: 10% x 2015 IA: 105 MW MN: 25% x 2025 (Xcel: 30% x 2020) MO: 15% x 2021 WI : Varies by utility; 10% x 2015 statewide MI: 10% & 1,100 MW x 2015* OH : 25% x 2025 † ME: 30% x 2000 New RE: 10% x 2017 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereafter) RI: 16% x 2020 CT: 23% x 2020 NY: 29% x 2015 NJ: 20.38% RE x 2021 + 5,316 GWh solar x 2026 PA: ~ 18% x 2021 † MD: 20% x 2022 DE: 25% x 2026* DC: 20% x 2020 NC : 12.5% x 2021 (IOUs) 10% x 2018 (co-ops & munis) VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 KS: 20% x 2020 OR : 25% x 2025 (large utilities )* 5% - 10% x 2025 (smaller utilities) IL: 25% x 2025 29 states + DC and PR have an RPS (8 states have goals) 29 states + DC and PR have an RPS (8 states have goals) OK: 15% x 2015 PR: 20% x 2035 WV: 25% x 2025* † VA: 15% x 2025* DC IN: 15% x 2025 † 21

22. Financing Options Loans Retail (3 rd Party) PPAs and Leases On-bill Financing PACE Financing 22

23. Net Metering Billing arrangement between a utility and a customer-generator that allows electricity to flow both to and from the customer. Many caveats and fine details can make a net metering policy heavily favor the utility. 23

24. Interconnection Standards Interconnection refers to the issues that must be settled between the system owner and the utility and local permitting authorities before the system is connected to the grid. 1.Technical – safety, power quality, system impacts 2.Contractual – legal and procedural issues 3.Rates, fees and metering issues 24

25. Solar access laws Solar permitting incentives Solar ready building guidelines Other Policies 25

26. Wrap-Up SE electricity based on coal, nuclear, and natural gas Solar resource is good in SE and solar installations have been growing High upfront cost, lack of financing options and regulatory barriers can hinder growth of state solar market Policy options can be used to overcome barriers 26

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28. Questions? Amy Heinemann North Carolina Solar Center 919.515.5693 amy.heinemann@ncsu.edu 28