Creating A Cleaner Energy Future For the Commonwealth Focusing on Solar PV: Technology, Siting Considerations, Incentives Natalie Andrews Renewable Energy Project Coordinator July 26, 2012 Renewables on Closed Landfills Boxborough, MA

Creating A Cleaner Energy Future For the Commonwealth DOER Mission Creating a Cleaner Energy Future for the Commonwealth The Massachusetts Department of Energy Resources (DOER) develops and implements policies and programs aimed at ensuring the adequacy, security, diversity, and cost-effectiveness of the Commonwealth’s energy supply within the context of creating a cleaner energy future. To that end, DOER strives to:  Ensure deployment of all cost-effective energy efficiency  Maximize development of clean energy resources  Create and implement energy strategies to assure reliable supplies and improve the cost of clean energy relative to fossil- fuel based generation  Support Massachusetts’ clean energy companies and spur Massachusetts’ clean energy employment

Creating A Cleaner Energy Future For the Commonwealth Outline Solar PV 101 What makes a good site? Incentives 3

Creating A Cleaner Energy Future For the Commonwealth Is there enough sun in MA? 4

Creating A Cleaner Energy Future For the Commonwealth How does Solar PV Work? Absorbed sunlight dislodges electrons in a semiconductor Electric field forces free electrons to flow in certain direction (current) 5 Annual Solar PV production in MA: Size of array (kW) x 8760 hours/year x 0.13 capacity factor

Creating A Cleaner Energy Future For the Commonwealth What makes a good site  Orientation  Southerly exposure  Tilt  Ideal 36 degrees  No shading  Trees, rows Trackers 6 your-own-power.html

Creating A Cleaner Energy Future For the Commonwealth Shading of Solar PV Systems Shading can significantly reduce the output of a system An analysis should be performed for each project 7

Creating A Cleaner Energy Future For the Commonwealth Common Solar PV Terms 8 Cell < Module < Panel < Array Racking Inverter kW, MW, kWh DAS

Creating A Cleaner Energy Future For the Commonwealth Incentives 9

Creating A Cleaner Energy Future For the Commonwealth 10 RPS Solar Carve-Out 10

Creating A Cleaner Energy Future For the Commonwealth RPS Solar Carve-out (SRECs) Market-based incentive to develop 400 MW of solar PV Part of the broader RPS Program 1 SREC = environmental attributes associated with 1 MWh of solar generation Projects must be qualified by DOER before they can begin generating SRECs All generation is metered and reported to MassCEC’s Production Tracking System (PTS) MassCEC reports generation to NEPOOL GIS where SRECs are minted on a quarterly basis 11

Creating A Cleaner Energy Future For the Commonwealth 12 SREC Program Design Features Program design features help ensure market stability and balance  Adjustable Minimum Standard maintains SREC demand/supply in reasonable balance  Forward ACP Rate Schedule provides investor certainty  Solar Credit Clearinghouse Auction Account essential price support mechanism to assure SREC floor price  Opt-In Term provides right to use Auction, adjusted to throttle installation growth rate These features work together to ensure the market will remain in balance as more PV is built

Creating A Cleaner Energy Future For the Commonwealth 13 Eligibility Criteria Have a capacity of 6 MW (DC) or less per parcel of land Be located in the Commonwealth of Massachusetts, which includes municipal light district territories Use some of its generation on-site and be interconnected to the utility grid Have a Commercial Operation Date of January 1, 2008, or later Cannot have received certain levels and types of funding

Creating A Cleaner Energy Future For the Commonwealth Net Metering Provisions in GCA 2008: Run the meter backward and generate credits from the utility Credits equal to retail rate for customers 3% of utility peak load (1% private & 2% public) Net excess is carried over month-to-month indefinitely New definition for public net metering facility  Owned or operated by a public entity; OR  100% of output is assigned to the public entity 14

Creating A Cleaner Energy Future For the Commonwealth State and Federal Tax Incentives 15 Tax IncentivesValueEligible Project Owners Investment Tax Credit (ITC) 30% Installed CostCommercial Only Accelerated Depreciation (MACRS) 5 year schedule with 50% bonus depreciation Commercial Only Equipment Sales Tax Exemption 100% ExemptionCommercial & Residential Property Tax Exemption 100% Exemption for 20 years (if applicable) Commercial & Residential

Creating A Cleaner Energy Future For the Commonwealth Thank You Natalie Andrews Renewable Energy Project Coordinator