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February 23, 2016 Paul Helstrom Minnesota Power Renewable Program Lead Stacy Miller Minnesota Department of Commerce Solar Policy Specialist
February23,2016
PaulHelstromMinnesotaPower
RenewableProgramLead
StacyMillerMinnesotaDepartmentofCommerce
SolarPolicySpecialist
Agenda � OverviewofSolarEnergyMarketsintheUS� OverviewofMinnesotarenewablepolicy,markets� FederalIncentivesforSolar� Statepoliciesandprograms� UtilityIncentivesandprograms� Howdoyougetinvolved� Technologiespushingsolarforward
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Na)onalTrends � Largedevelopmentsinsolar
� Decreasingcostshasleadtorapidgrowth� Solarisafastgrowingenergyresourceintheworld,theUSandMinnesota
� Lotsofgrowth=opportunityfornewbusiness,jobs,economicactivity.
� Somechallengesfacetheadoptionofsolar� Technicalintegration� Costandvaluepropositions
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Graphic:SEPA-solarsnapshot 5
Graphic:SEPAsolarsnapshot 6
ChallengesforSolar � Costisstillachallenge� Gettingtheratestructureright
� Nationaldebatesandregulationsinflux� NetMetering� ValueofSolar� Regulatoryproceedingsinhighpenetrationstates
� Hawaii,Nevada,Californiaexamples
� Advancedinvertertechnology� Enablinghighvalueservicestothegrid
� Meetingpeakdemands
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ChallengesforSolar
� LaborShortages
� Permitting
� Interconnectionissues
� Billingissues
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ConsumerAffairsOffice� (651)296-0406or1-800-657-3782consumer.puc@state.mn.usDepartmentofLabor&Industry� (651)284-5069or1(800)342-5354
ChallengesforSolar
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FederalInvestmentTaxCredit(ITC)� 30%FederalTaxcreditforCommercialandResidentialsystemsinserviceby12/31/2019
� Sunsetbeginsin2020forcommercialsystems� 2021–26%� 2022-22%� 2024-10%(commercial)
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OtherFederalPrograms � ModifiedAcceleratedCostRecoverySystem(MACRS)
� adepreciationtooltotakerapiddepreciationofsolarassetsoverafiveyearwindow
� REAPGrants-RuralEnergyforAmericaProgram� Upto$2,500-500,000grantsupto25%ofsystemcost� Upto$25millionloanupto75%ofsystemcost� Agriculturalproducersandsmallbusinessesinruralareasforenergyefficiencyandrenewableenergyprojects
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MinnesotaRenewables � Minnesota25%renewableby2025� SolarEnergyStandard1.5%x2020� Newnetmeteringrules� CommunitySolar� ValueOfSolar� StableIncentives
� 10%x2030Goal
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Incen)vesinMinnesota � PropertyTaxIncentive� SalesTaxIncentive� MadeInMinnesota� UtilityIncentives
� MinnesotaPower� Xcel� Others
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NetMetering� Investorownedutilities:
� Netmeteringcapraisedto1MWin2013
� Single-customermeteraggregationoncontiguousproperty
� Nostandbycharges<100kW
� Systems40kW-1,000kW
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NetMetering� Cooperative&municipalutilities:ChangeseffectiveJuly1,2015
� Netmeteringlimitremains40kW� Netmeteringfeesauthorizedundercertainconditions:
Acooperative…ormunicipalutilitymaychargeanadditionalfeetorecoverfixedcostsnotalreadypaidforbythecustomerthroughthecustomer'sexistingbilling.Anyadditionalchargemustbereasonableandappropriatebasedonthemostrecentcostofservicestudy.
� Customersforfeitexcessgenerationattheendoftheyearunlesstheyelecttoreceivemonthlycompensationatretailrate
� CustomersinterconnectedpriortoJuly1,2015unaffected.15
CommunitySolar� XcelEnergyprogramisthelargest
� Minimumof5subscriberswhomustbeinacontiguouscounty.
� Asinglesubscribermaysubscribeto40%ofasystem� Subscribersreceiveon-billcredit
� 17co-opsandMoorheadPublicServicehavecommunitysolarprogramsplannedoravailablenow
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Made in Minnesota Solar� MadeinMinnesotaPV
• $15 million/year through 2023 • Xcel Energy, Minnesota Power, Otter Tail Power • Production Based Incentive (PBI) • Projects < 40 kW Commercial, < 10 kW Residential • Applications accepted annually Jan 1 – Feb 28
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MadeinMinnesota2016SolarThermalIncen)ves
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MadeinMinnesotaPar)cipa)onEligibility
� CannotreceiveautilityincentiveinadditiontoaMadeinMinnesotaincentive
� Mustbeacustomerofaninvestor-ownedutilitytoparticipate:MinnesotaPower,XcelEnergy,OtterTailPower
SolarPV� Commercialsystemsmusthaveacapacityoflessthan40kWand
residentialsystemsmayhaveacapacityofupto10kW.SolarThermal� Thesolarthermalsystemsmaybeinstalledinresidentialandcommercial
facilitiesfor,amongotherpurposes,waterheating,spaceheating,andpoolheatingpurposes.Openstatewideifthereareunusedincentives.
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XcelEnergySolar*Rewards� $5millionannually2014-2017� ProductionBasedIncentiveof$.08/kWhpaidannuallyfor10years
� 20kWmaximum� DakotaElectric,Rochester,MinnesotaPower,OttertailPoweralsohavesmallsolarprograms
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SolarSense� Availableforsolarphotovoltaic(PV)andsolarthermalsystems� Lotteryapplicationprocess
� ClosesFebruary28thSolarPV� Capacity-based,tieredrebate
� $750/kWbaseincentive� $250/kWNABCEPcertifiedinstaller� $250/kWnon-profitortax-exemptcustomers
SolarThermal� Rebateofupto25%ofprojectcosts,nottoexceed
� $2,000forresidential� $4,000for2-3familyunits� $10,000for4ormorefamilyunits� $25,000forbusinesses
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IncentivesDatabase
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www.dsireusa.org
NABCEPCer)fica)on� NorthAmericanBoardofCertifiedEnergyPractitioners(NABCEP)
� www.nabcep.org� Certificationoffersthepublicahighdegreeofprotectionbecausepractitionershavetovoluntarilymeetstandardsandqualificationsandpassanexam.
� RequirementsforbecomingNABCEPcertified� Installationexperienceandclassroomrequirements� Detailedinformationfordifferenttrackavailableonline
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MinnesotaEducators� HibbingCommunityCollegeProgram:
� SolarPVTechnicianProgram� 25creditcoursegetsyoutestreadyforNABCEPcertificateofknowledge
� CenturyCollege� AdvancedSolarPVEnergySystems� 30creditrequirement� TestsforNABCEPcertificateofknowledge
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TrendsinTechnologiesandPolicyrelatedtosolar
� EnergyStorage� Technologyadvancements� Economiesofscaledrivingdowncosts(Tesla)� Complementssolarenergysystems
� ElectricVehicles� Drivingscaleforstoragetechnologies
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IntroductionMinnesotaPower(MP)requestedassistancefromtheUniversityofMinnesotaDuluthNaturalResourcesResearchInstitute(NRRI)toinvestigatetheperformanceofthreesolarphotovoltaic(PV)arraysinaNorthernMinnesotaenvironment.Thisprojectwouldbeamulti-yearprogramtomonitorsolarsystemoutput,reliability,andotherfactors.Three10kilowattarraysweretobeinstalledontopofthesixstoryGovernmentServicesCenter(GSC)indowntownDuluth.ThedatafromthisstudywillbeusedinternallyatMPandthearrayswouldbeashowpieceforSt.LouisCounty,aswellasacomponentofthepursuitofLEEDcertificationfortheGSC.ThisstudywouldbethefinalportionofthePyramidofConservation,asrenewableenergygenerationgenerallyrequiresthehighestinvestment.ThePyramidofConservationispartofMP’sPowerofOne®ConservationImprovementProgram.
Silicon Energy Trina Solar TenK SolarModel Number SiE 205Wp TSM-PA05.08 250Wp RAIS XT-A 410WpTotal Modules 52 40 24 Installed DC (kW) 10.66 10.00 9.84 Installed AC (kW) 10.00 10.00 9.00 Tilt (Degrees) 30 30 26 Module Space Used (ft2) 832 704 667 Total Space Used (ft2) 1,551 1,470 1,097 Total Ballast Weight (Pounds) 18,656 21,856 7,840 Inverter Used Frontius IG Plus 10.1-3 Delta Frontius IG Plus 10.1-3 Delta APS TY500A MicroinverterMounting System AET Rayport B AET Rayport B Integrated into System
Month Total Production (kWh) Capacity Factor (% )Jan-15 1,277 5.6Feb-15 2,663 13.0Mar-15 3,940 17.4Apr-15 4,127 18.8May-15 3,805 16.8Jun-15 4,695 21.4Jul-15 4,874 21.5Aug-15 3,952 17.4Sep-15 3,511 16.0Oct-15 2,808 12.4Nov-15 1,580 7.2Dec-15 531 2.3
Total 37,763 14.1
Total System ($)Total Installed Cost 170,193$ Incentives
MP Conservation Contribution 42,375$ MP SolarSense Rebate 70,000$
Total Incentives 112,375$ Net Cost 57,818$
ObjectivesNRRI’sobjectivewouldbetovalidateandanalyzethedatafromthethreesolarPVarraysinDuluth,Minnesota.Specifically,MP’sresearchgoalsforthisresearchprojectincludedtopicssuchas:• Relativeperformanceofarraysinthe
shortandlongterm.• Correlationofactualdatatomodeled
datainaMinnesotaclimate.• Generationreactiontoweather,e.g.,
cloudcoverandlowlightsituations.• Validatevendorclaimsinregardsto
production.• Understandinstallationmethodsand
procedures.• Performancemeasuredagainststandard
pyranometermeasurementsThisstudywastobeanempiricalstudytoinvestigateactualsolarPVperformanceinaNortheasternMinnesotaenvironment.
MaterialsandMethodsThephysicallocationofthesolarPVinstallationwasontopoftheGSC,325W1stStreet,Duluth,Minnesota55802.AnnualirradianceandweatherdataforthislocationaccordingtotheNRELSAMdatabaseinclude:• Globalhorizontalirradiance:3.70kWh/
m2/day• Diffusehorizontalirradiance:1.78kWh/
m2/day• Averagetemperature:3.2°C• Averagewindspeed:4.7m/s
ProductiondatawasacquiredfromanE-GaugesystemandMV90inverterdatafromMP.WeatherdatawasprovidedbyaweatherstationattheGSC.
PreliminaryResultsIn2015thethreesolarPVarraysproducedapproximately37,763kWhofelectricalenergyatacapacityfactorof14.1%.Thecarbondioxideoffsetduetothisstudywasapproximately26,300poundsascomparedtoenergyproductionfromcoal.TheactualproductiondatamatchedthesimulateddatarelativelywellexceptforthemonthsofJanuaryandDecember,2015.
Cost of Electricity ($/kWh)Est. Yearly Energy
Savings ($)
Estimated Payback Period, No Incentives
(Years)
Estimated Payback Period, With
Incentives (Years)0.05$ 1,888.16$ 90.1 30.6 0.10$ 3,776.32$ 45.1 15.3 0.15$ 5,664.48$ 30.0 10.2 0.20$ 7,552.64$ 22.5 7.7 0.25$ 9,440.80$ 18.0 6.1 0.30$ 11,328.96$ 15.0 5.1
Thankyou!Ques)ons?� StacyMillerSolarPolicySpecialist(651)539-1859� PaulHelstromRenewableProgramLead(218)[email protected]
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Appendix:Howsolarworks
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MinnesotaSolarResource• Goodsolarpotentialin
MN
• SolarPVlikesitcoolandclear
• Goodinstallationsitescanproduce1250-1350kWhperyearperkWpinstalled
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PVSystems
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GridTiedSystemComponents
DC ACDCDisconnect
Inverter 32
GridTiedBaWeryBackup
MainPanel
SolarBackuppanel
ChargeController
Inverter/TransferSwitch
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EnteringtheMarket � Partiesinterestedinjoiningthemarketofsolarinstallationcompaniesshouldconsider:
� Skillsneeded� Toolsneeds� Servicesvaluesandexpected
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