Clean, Local EnergyThe Value and Power of Distributed Solar in Arizona

John Farrell, DirectorEnergy Self-Reliant States and Communities program

jfarrell@ilsr.org612.276.3456 x210

Presentation on Sept. 23, 2011

ILSR’s Unique Perspective

Centralized PowerYesterday Tomorrow

Transmission network

Distribution network

House

Storage

Local CHP plant

Commercialbuilding

Factory

Storage

Storage

Storage

Solar PV power plant

Windpowerplant

House with domestic CHP

Clean, local power

Enormous Potential

31 states could be electricity self-reliant

Why Clean, Local Energy?

Enormous Potential?Why Clean, Local Energy?

98%

AZ Renewable Potential

Other5%

Rooftop Solar49%

CHP5%

Hydro1%

Wind40%

Why Clean, Local Energy?

AZ Renewable Potential

Other Solar51%

Rooftop Solar49%

Why Clean, Local Energy?

Value of Clean, Local Solar

• Cost for power

• Value of energy

• Value of jobs and economic development

• Value of local ownership

Price per kWhValue of Clean, Local Solar

Other Solar51%

Rooftop Solar49%

Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011

Residential $6.40 27 cents

Commercial $5.20 22 cents

Utility $3.75 16 cents

Price per kWh

Other Solar51%

Rooftop Solar49%

Best Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World

Residential (L.A.) $4.22 18 cents

Commercial (Germany) $3.40 14 cents

Value of Clean, Local Solar

Price per kWh

Including federal tax credit

Other Solar51%

Rooftop Solar49%

Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011Residential $6.40 21 centsCommercial $5.20 17 cents

Utility $3.75 12 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World

Residential (L.A.) $4.22 14 cents

Commercial (Germany) $3.40 11 cents

Value of Clean, Local Solar

Price per kWhIncluding federal tax credit

and depreciation

Other Solar51%

Rooftop Solar49%

Average Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011Residential $6.40 16 centsCommercial $5.20 13 cents

Utility $3.75 9 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World

Residential (L.A.) $4.22 10 cents

Commercial (Germany) $3.40 8 cents

Value of Clean, Local Solar

Price per kWhIncluding federal tax credit

and depreciationAverage Cost: U.S., 2011Average Cost: U.S., 2011Average Cost: U.S., 2011

Residential $6.40 16 centsCommercial $5.20 13 cents

Utility $3.75 9 centsBest Costs: U.S. and WorldBest Costs: U.S. and WorldBest Costs: U.S. and World

Residential (L.A.) $4.22 10 cents

Commercial (Germany) $3.40 8 cents

Value of Clean, Local Solar

Average Price: Arizona, 2011Average Price: Arizona, 2011

Residential 11 centsCommercial 9 cents

Industrial 6 cents

Energy

$5 per Watt

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

•avoided cost

Value of Clean, Local Solar

Grid Benefits

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices

Value of Clean, Local Solar

Social Benefits

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

Value of Clean, Local Solar

Example: Grid Benefits4 cents per kWh

in addition to electricity

Palo Alto, CA, municipal utility

Value of Clean, Local Solar

Jobs

Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

Value of Clean, Local Solar

Local BenefitsLocal Ownership Boosts Impact of Renewables

Value of Clean, Local Solar

Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Public Support

0%

10%

20%

30%

40%

50%

very negative negative neutral positive very positive don’t know2

12

33

41

10

2 35

11

2124

36

No local ownershipLocal ownership

Attitude towards increased use of local wind energy

(–44)(+33)

very negative negative positive very positive

Value of Clean, Local Solar

Addressing Barriers to Clean, Local Solar

• Backup / intermittency

• Local grid capacity

• Economies of scale

• Policy

Intermittency

$0

$0.01

$0.02

$0.03

$0.04

1 location 5 locations 25 locations

$0.00

$0.01

$0.04

Geographic Dispersion Lowers Solar Backup Costs

$ per kWh

Barriers

Distribution Grid

• Utilities in California (and elsewhere) generally agree that 15% distributed generation on a local distribution circuit is the threshold for any problems.

Democratizing the Electricity System (ILSR, 2011)

15%, or bustno

Barriers

Economies of ScaleBarriers

$3.75

State PolicyBarriers

State PolicyBarriers

State PolicyBarriers

Feed-in Tariffs for Solar

•Vermont•Rhode Island•Indianapolis, IN•Gainesville, FL•San Antonio, TX

Local Policy

17%

Barriers

Solutions from Vote Solar’s Project:Permit

Thank you!

John Farrellenergyselfreliantstates.orgjfarrell@ilsr.orgjohnffarrell612-276-3456 x210