1. Making Sense of U.S. Renewables Policy & Markets Rusty Haynes DSIRE Project Manager N.C. Solar Center / N.C. State University Italian Trade Commission New York, NY 27 September 2012

2. Created in 1995 Funded by U.S. DOE / NREL Managed by NCSC / NCSU Scope = government & utility incentives & policies that promote RE/EE ~ 2,740 total summaries ~175,000 users per month DSIRE Solar: dsireusa.org/solar DSIRE data services for businesses: dsireusa.org/services DSIRE Overview

3. Why is the U.S. market challenging? Investor-owned (210) Public utilities (2,009) Electric co-ops (883) Federal (9) Federal (1) States, territories, DC (~65) Counties (3,143) Municipalities (~30,000) Regulatory RegimesElectric Utilities

4. U.S. Electric Industry Average Revenue, ¢ per kWh (Source: U.S. DOE, March 2012)

5. States encourage or require RE via: Examples of incentives & policies included in DSIRE: Utility rates & revenue policies Interconnection standards Financial incentives RPS polices / mandates 3 rd -party ownership FITs Industry recruitment Tax incentives (corporate, personal, property, sales) Performance-based incentives Grant programs Loan programs Rebate programs RPS policies EE resource standards Interconnection standards Net metering policies Solar/Wind access policies Public benefits funds

6. RPS Policies (Source: DSIRE, September 2012) 29 states,+ DC have RPS policies

7. . 16 states,+ DC have an RPS with solar/DG provisions 16 states,+ DC have an RPS with solar/DG provisions RPS Policies with Solar/DG Provisions (Source: DSIRE, September 2012) RPS with solar / DG provision RE goal with solar / DG provision Solar water heating counts toward solar / DG provision † Fuel cells qualify for solar carve-out

8. UT: limited to certain sectors AZ: limited to certain sectors VA: see notes 3 rd -Party PV Power Purchase Agreements (PPAs) (Source: DSIRE, August 2012) Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state Puerto Rico At least 22 states + DC & PR authorize or allow 3 rd -party PV PPAs

9. CALIFORNIA “The Golden State” AVG electric rates (R/C/I): 16.1 / 15.5 / 11.5¢ per kWh Installed PV/wind capacity (MW): 1,564 (#1) / 4,425 (#3) Net metering / interconnection standards: A / A RPS: 33% by 2020 CSI incentives: $2.167B budget / 1,940MW goal Renewable Auction Mechanism: RE systems < 20MW; 1,000MW in 2 years FIT (revisions IP): long-term contracts for RE < 3MW; floor of ~$89/MWh Self-Generation Incentive Program: rebates for non-solar RE < 3MW Property tax incentive (solar) Strong muni & local solar incentives (LADWP, SMUD, Palo Alto)

10. ARIZONA “The Copper State” AVG electric rates (R/C/I): 11.9 / 10.1 / 7.0¢ per kWh Installed PV/wind capacity: 398 (#3) / 238 Net metering / interconnection standards: A / ? RPS: 15% by 2025 (30% DG) Non-residential solar/wind tax credit (corporate, personal) RE production tax credit (corporate, personal) RE business tax incentives (tax credits, property tax incentives) Residential solar/wind tax credit RE property tax exemption & special assessment (utilities) Solar/Wind sales tax exemption Utility solar rebate programs (DG)

11. FLORIDA “The Sunshine State” AVG electric rates (R/C/I): 11.7 / 9.8 / 8.6¢ per kWh Installed PV/wind capacity (MW): 95 (#9) / 0 Net metering / interconnection standards: B / D RPS: none Solar/Wind corporate tax credit ($0.01/kWh) Solar sales tax exemption Solar PTE repealed in 2008 Muni solar incentives (GRU, OUC) – progressive but small Utility solar rebate programs (DG)

12. Key Points & Take-Aways Each state is basically its own market. Markets are driven by state policy, rates, RE resource availability. Federal policy is a wildcard. Industry focuses on states and state policy. Dominance of 3PO model -- profitable, easy. Clarification needed in many states. Long-term perspective -- a decade of overwhelmingly solid state policy progress, with little backtracking. Increasing policy complexity. Implications?

13. Contact Info 13 Rusty Haynes DSIRE Project Manager N.C. Solar Center / NCSU rusty_haynes@ncsu.edu 919.513.0445