COMMONWEALTH SOLAR: Key Goals

1
COMMONWEALTH SOLAR Key Goals

• Coordinate efforts with MA DOER.
• Put PV market on a trajectory (40 annual growth
  rate) to achieve the Governors 2017 goal of 250
  MW (4 Year Interim Measure).
• Provide streamlined non-competitive rolling
  rebate application process for all solar
  projects, while maintaining quality control
  function.

2
COMMONWEALTH SOLAR Funding Levels

• 68 million over 4 years
• 40 million from the Renewable Energy Trust (only
  slight increase in annual budget already
  dedicated to PV)
• 28 million from Alternative Compliance Payment
  Fund
• Set Aside Targets
• 16 million for state and municipal buildings,
  including schools,
• 8 million for residences, including low and
  moderate-income households.
• Installed Goal of 27 MW by end of 2011 (currently
  at 4.8 MW installed plus pipeline of 2.6 MW)

3
Commonwealth Solar Residential Rebate Levels

• Rebates from 2.00/watt to 5.50/watt.
• Rebate based on cap of 5 kW.

4
Commonwealth Solar Residential Rebate Benefits
Key Changes

• Cover 20 to 60 of the cost of a typical
  residential photovoltaic system.
• Estimated payback ranging from 8 to 18 years and
  a return on investment of 3.6 to 13.7.

5
Commonwealth Solar Non-Residential Rebate Levels

• Rebate based on a cap of 500 kW.
• A single Applicant Entity can be awarded no more
  than 1,200,000 per calendar year.
• Tiered rebate structure (larger projects that
  benefit from economies of scale require less
  rebate per watt).

6
Commonwealth Solar Non-Residential Rebate Levels

• Use Calculator in Application and Non-Residential
  Financial Model.

7
Commonwealth Solar Non-Residential Rebate
Benefits Changes

• Cover up to 40 of the cost of a typical
  commercial photovoltaic system.
• Provide taxable business owners with an payback
  of 5 to 6 years and a post tax return on equity
  of about 9.

8
FOR MORE INFORMATION

• Commonwealth Solar
• www.masstech.org/solar/

9
OTHER FEDERAL STATE RENEWABLE ENERGY INCENTIVES

• http//www.dsireusa.org/

10
PV PROJECT ECONOMICS

• Assumes MTC rebate and grant plus adders.
• In addition, under reasonable long-term financing
  terms, many PV projects can be cash flow positive
  from day 1 (energy savings REC revenue exceeds
  debt payments plus OM).
• Assumes use of federal and state tax incentives

11
Commonwealth Solar Application Process
12
HOW TO APPLY

• Step 1 Determine Eligibility
• Step 2 Educational Resources/ Self Assessment
• Step 3 Estimate Rebate
• Step 4 Find an Installer

13
HOW TO APPLY

• Step 5 Application
• Administrative and Technical Components
• Installer must meet MTC insurance requirements
• Installer Takes the Lead on Application
• Project must meet minimum performance standard
  (80 of optimal for solar)

14
HOW TO APPLY

• Step 6 Install and Interconnect
• Install to MTC minimum technical standards
• www.masstech.org/solar/
• Interconnect through local utility
• Notify MTC of completion
• Step 7 Receive Rebate
• Solar
• 100 paid upon interconnection

15
Financing Options (3rd party ownership) Time Line

• Currently Developing
• Legal Pathway Memo(s) for public entities (draft
  available now)
• Model Request for Proposals (draft expected in
  early Spring)
• Model Power Purchase Agreement (draft expected in
  early Spring)
• Guidebook
• (These materials are optional)
• 3rd Party Financing Workshops (spring and summer)
• First deals (already have one at WGBH, expect
  more by end of year)
• Sign up for 3rd party financing stakeholder email
  list by emailing cs_at_masstech.org

16
Commonwealth Solar Sweeten the Deal for
Non-Profits

• There are options to allow for public and non
  profit entities (and others) to host PV at no
  upfront cost and to benefit from power purchase
  agreements that will help to stabilize and reduce
  their electricity costs.
• Ned will provide more info on these options later
  this morning