1. Solar Powering Your Community Solarize South Jersey

2. The Solar Foundation awinn@solarfound.org Alexander Winn The Solar Foundation phaddix@solarfound.org Philip Haddix

3. a The SunShot Solar Outreach Partnership (SolarOPs) is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the US. About the SunShot Solar Outreach Partnership

4.  Increase installed capacity of solar electricity in U.S. communities  Streamline and standardize permitting and interconnection processes  Improve planning and zoning codes/regulations for solar electric technologies  Increase access to solar financing options About the SunShot Solar Outreach Partnership

5. e-e- e-e- Some Basic Terminology Capacity / Power kilowatt (kW) Production Kilowatt-hour (kWh) e-e-

6. System Components

7. What benefits can solar bring to your community?

8. Benefits: Solar Economic Growth Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report http://www.seia.org/research-resources/us-solar-market-insight http://www.seia.org/research-resources/us-solar-market-insight 8 ~40% CAGR

9. Benefits: Solar Job Growth Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census report series 9 SEIA Estimates The Solar Foundation

10. 27 Jobs and $4.2 Million The Local Economic Opportunity Source: JEDI Model, NREL In economic output 1 Megawatt of Residential Solar Development in New Jersey:

11. 495 solar companies that employ 7,200 people Economic Development in New Jersey Source: SEIA, The Solar Foundation There are currently

12. Economic Development in New Jersey Source: SEIA’s National Solar Database

13. Benefit: Stabilize Energy Prices Source: NEPOOL 13

14. Smart Investment for Homeowners Source: LBNL, Selling Into the Sun (2015)

15. Reduction in Air Emissions A 5-kW solar PV system produces 6,700 kWh in the first year, equivalent to 4.6 metric tons of avoided CO 2 emissions Water Savings Annual savings of nearly1,400 gallons of water Environmental Benefits Source: NREL PVWatts; EPA Greenhouse Gas Equivalencies Calculator; http://iopscience.iop.org/1748-9326/7/4/045802/pdf/1748-9326_7_4_045802.pdf http://iopscience.iop.org/1748-9326/7/4/045802/pdf/1748-9326_7_4_045802.pdf 520 gallons of gasoline 3.8 acres of U.S. forests

16. Overview of the State and National Solar Market

17. New Jersey Solar Market Source: SEIA/GTM Research, Solar Market Insight; IREC, Solar Market Trends Cumulative Total: 1,524 Megawatts Cumulative Total: 1,524 Megawatts

18. Source: New Jersey’s Clean Energy Program, “New Jersey Solar Installation Update 5/31/2015”

21. US Solar Market Source: Solar Energy Industries Association/ GTM Research, Solar Market Insight: 2014 Year-in-Review Cumulative Total: ~21,000 Megawatts Cumulative Total: ~21,000 Megawatts

22. US Solar Market Source: SEIA, Solar Market Insight Q2 2015 7.25% of US Capacity

23. New Jersey Solar Market Source: SEIA, Solar Market Insight Q2 2015 New Jersey US 170 watts per person 68 watts per person

24. World Solar Market Source: REN 21, Renewables 2015 Global Status Report Germany 21.5 % USA 10.2%

25. US Solar Resource Source: National Renewable Energy Laboratory 25

26. The Cost of Solar PV Tracking the Sun VIII: The Installed Cost of Photovoltaics in the US from 1998-2014 (LBNL) 48% drop in price 2010 - 2014 48% drop in price 2010 - 2014

27. The Cost of Solar in the US Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

28. The Cost of Solar in the US Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

29. The Cost of Solar in the US Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

30. The Cost of Solar in the US Profits, Taxes, & Overhead Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

31. The Cost of Solar in the US Solar Soft Costs Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

32. Solar Policies, Incentives, and Financing

33. Type: Tax Credit Eligibility: For-Profit Organizations Residential Customers Value: 30% of the installation cost Availability: Through 2016 Investment Tax Credit

34. Renewable Portfolio Standard Any electricity source Renewable Energy

35. Renewable Portfolio Standard Any electricity source Solar carve-out Renewable Energy

36. RPS: New Jersey Overview New Jersey utilities required to:  Provide 22.5% renewable energy by 2021 – 11.3% in 2015  Provide 4.1% solar by 2028 – 2.45% in 2015 Utilities may either develop their own renewable resources or purchase Renewable Energy Certificates (RECs)

37. Renewable Energy Certificates e-e- REC $ $ Utility Home

38. The New Jersey SREC Market  Systems can sell RECs for first 15 years of operation  Prices determined by market (currently around $200/MWh)  Past high prices have driven the New Jersey solar boom

39. NJ SREC Price History

40. Financing Options for Solar Buy Outright Lending Third-Party Ownership

41. Financing Options for Solar Buy OutrightLendingThird Party Upfront CostHighLow to None O&M CostsCustomer Developer Solar Electricity CostsNonePredictable PaymentsPredicable Payments DifficultyComplexModerateEasy Value to CustomerPotentially Higher ROIModerate ROIShared Benefits Development RiskCustomer Developer Performance RiskCustomer Developer

42. Net metering allows customers to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage. Net Metering

43. Load Met by Grid Exports to Grid Load Met by Solar

44. Net Metering: Market Share Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf More than 93% of distributed PV Installations are net-metered

45. Provides a “report card” for state policy on net metering and interconnection http://freeingthegrid.org/ Net Metering: Resources Resource Freeing the Grid

46. Net Metering: New Jersey Source: Freeing the Grid, DSIRE Applicable Utilities Investor-owned utilities; Electric suppliers Credit Rollover Monthly excess valued at retail rate, annual excess at avoided cost Program Capacity Option for BPU to limit to 2.5% of peak demand (could be increased to 2.9%) System Capacity Limit Sized not to exceed consumption A 20102011201220132014 AAAAA A 2015

47. Solar Access Laws: 1.Increase the likelihood that properties will receive sunlight 2.Protect the rights of property owners to install solar 3.Reduce the risk that systems will be shaded after installation Solar Access

48. Solar Access: New Jersey Solar Rights  Limits on Homeowners Associations ability to restrict solar  10% cost adder limit Solar Easements  Solar owners allowed to enter into easements with neighbors  Statute provides minimum information required in easement

49. Reducing Customer Acquisition Soft Costs with Solarize

50. Customer Acquisition Source: National Renewable Energy Laboratory 50 $0.48 Per watt

51. Customer Acquisition 5 % of homeowners that request a quote choose to install solar.

52. Barriers High upfront cost Complexity Customer inertia Customer Acquisition

53. The Solarize Program Group purchasing for residential solar PV

54. Barriers High upfront cost Complexity Customer inertia Solutions Group purchase Vetted offer and standardized process Limited-time offer The Solarize Program

55. Solarize: Partnership Program Sponsor Solar Contractor Citizen Volunteers Community Residents Competitive selection Community ties Technical knowledge Marketing & outreach Campaign support Neighborhood outreach Free site assessments Solar installations Volume discounts Tiered pricing Program participation Word of mouth

56. Solarize: Process Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation

57. Solarize: Case Study Source: Wikipedia Harvard, Massachusetts Population: 6,520

58. Solarize: Case Study Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 Dec 2011 Solarize Mass Harvard April 2011

59. Group Purchasing Average PV Cost July 2011: $5.75 / watt

60. Solarize: Case Study Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 Dec 2011 Solarize Mass Harvard May – July 2011

61. Marketing Strategy:  Electronic survey of 1,100 households  Email newsletters and direct mailings  Float in July 4 parade  Articles and advertisements in local newspaper  Facebook page and online discussion board Solarize: Case Study Source: Vote Solar

62. Solarize: Case Study Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 Dec 2011 Solarize Mass Harvard June – Oct 2011 429 households signed up

63. Solarize: Case Study Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 Dec 2011 Solarize Mass Harvard Oct 2011 151 feasible households

64. Solarize: Case Study Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation April 2011 Dec 2011 Solarize Mass Harvard Oct –Dec 2011 75 Contracts

65. Group Purchasing 403 kW capacity contracted

66. Solarize: Case Study 75 new installations totaling 403 kW 30% reduction in price of solar 17% of sign-ups converted to sales (50% of site visits) Over 5x increase in residential installations Success convinced state agencies to scale program

67. Solarize: Sample NJ Cost Savings $3.90/W (2014 State Average) $3.12/W (20% Solarize Discount) System Size5 kW Annual Production6,702 kWh Total Cost$19,500$15,600 30% Federal ITC($5,850)($4,680) Net Cost$13,650$10,920 Annual Electricity Savings$1,217 20-yr. Net Present Value$8,322$10,836 Payback Period6.7 Years5.4 Years Assumptions: Atlantic City TMY2 Weather Data; 1.1 DC to AC ratio; 96% inverter efficiency; 20 degree tilt; 180 degree azimuth; 14.08% total system losses; 0.5% annual degradation rate; 100% debt; 10 year loan @ 5% interest; 20 year analysis period; 8.14% nominal discount rate; 25% federal income tax rate; 6.37% state income tax rate; 0% sales and property tax rate; 0.5% annual insurance rate; $20/kW/year O&M costs; 30% Federal ITC; $200/SREC for 15 years; Atlantic City Electric RS rate; net metering enabled; 0.6% annual electric cost escalator; 8,386 kWh annual electric consumption

68. A household is 0.78% more likely to adopt solar for each additional installation in their zip code Solarize: Lasting Impact Source: NYU Stern and Yale School of Forestry – Peer Effects in the Diffusion of Solar Panels

69. Solarize: Lasting Impact Source: NREL Lasting Impact

70. Solarize: National Growth Over 200 Campaigns in 20 States Thousands of homes Solarized!

71. Watch for the Survey Sustainable Jersey will disseminate a short survey to gauge interest in enrolling in the program and/or in volunteering for the campaign Ask Questions Let us help you better understand the program and its benefits Sign Up to Volunteer Contact Zachary Nickerson (znickerson12@gmail.com) to help spread the wordznickerson12@gmail.com Solarize: Next Steps

72. A roadmap for project planners and solar advocates who want to create their own successful Solarize campaigns. www.nrel.gov Solarize: Resources Resource The Solarize Guidebook