Georgia: Going

Gangbusters for

Solar Solar Focus 2014

Hannah Masterjohn, VoteSolar

Joel Cohn, CohnReznick

Jason Rooks, Clean Energy Strategies

Scott Thomasson, NewBuild Strategies LLC

Debbie Dooley, Green Tea Party

Moderator:

Joel Cohn CohnReznick

Jason Rooks Clean Energy Strategies

Scott Thomasson NewBuild Strategies LLC

GEORGIA GOES BIG ON SOLAR

“Georgia is the fastest-growing solar market in the nation.”

- SEIA 2013 Top 10 Solar States (GA ranked #7)

Solar jobs grew 225% in from 2012-2013, to 2,600 total.

- Solar Foundation, 2013 Solar Jobs Census

Georgia Power Company has “the largest and fastest-growing voluntary renewable energy portfolio in the United States” with 900 MW of solar capacity planned by the end of 2016.

- SEPA 2014 “Investor-Owned Utility of the Year”

0

100

200

300

400

500

600

700

800

900

1000

2012 2013 2014 2015 2016

50 50 50 31

90 217 217

260

539

90

MW

Expected Commercial Operation

Georgia Power 5-Year Solar Growth by PSC Program

US Army (2014)

ASI Prime (2013)

Advanced SolarInitiative (2012)

Large-Scale Solar(2011)

DG Tariffs, GreenEnergy, and QFs

538

152

907

12 43

0

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200

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2012 2013 2014 2015 2016

50

387

706

12 43

101

151

201

MW

Expected Commercial Operation

Georgia Power 5-Year Solar Growth Distributed vs Utility-Scale

DG (< 1 MW)

Utility-Scale

(22%)

(78%)

538

907

152

An unlikely state for growth?

• No RPS

• No state incentives

• No third-party ownership

• No net metering: Graded “F” by Freeing the Grid

• Red-state politics: Republicans control Public Service Commission, legislature, and governor’s office

• History of utility and co-op resistance to renewables

HOW DID IT HAPPEN? • Bubba McDonald championed solar at the Georgia Public

Service Commission

• 2011 breakthrough: falling prices allowed PSC to nudge utility to add 50 MW of utility-scale solar with “no upward pressure” on retail rates.

• 2012 collaboration between utility, solar industry, and PSC to develop 210 MW Advanced Solar Initiative (“ASI”).

• 2013 expansion of ASI: Commissioner McDonald proposed 525 MW of solar below utility’s avoided cost.

Advanced Solar Initiative

• Price caps to prevent “upward rate pressure.” – DG received standard-offer price (13 cents) in 2013-14. – DG price included extra 1 cent/kWh for grid and capacity benefits. – “Not to exceed” price cap for utility-scale PPAs, based on avoided cost over

term of the PPA.

• Competitive RFPs for all utility-scale solar. – All bidders use pro-forma PPAs, terms ranging from 15 to 30 years.

• No behind-the-meter DG. – All distributed solar is delivered to grid and separately metered, credited to

customer on site.

• Results: Georgians saving $$$ with solar! – 2013 RFP averaged 8.5 cents/kWh (“downward pressure”) – 2014 RFP averaged 6.5 cents/kWh (“well below avoided cost”)

What’s next in Georgia?

• 100 MW solicitation for DG solar – Georgia Power proposed immediate “market-based” solicitation for

2015-2016 DG projects, similar to utility-scale RFP. – Resistance from GA SEIA and PSC to RFP process for small projects. – GA SEIA alternate proposal for 100 MW solicitation in Q1 2015

• Value of Solar proceeding – GASEIA petitioned PSC to open a Value of Solar proceeding, now

pending. – “Indifference price” to be used across all solar programs and tariffs.

• “Solar Power Free-Market Financing and Property Rights Act” – Republican-sponsored bill to let customers finance solar with PPAs,

leases. – Negotiations underway now with Georgia Power and co-ops.

Debbie Dooley Green Tea Party

Introduction

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