Post on 23-Aug-2014
description
T H E F U T U R E O F S O L A R
F R O M S M A L L - T I M E A N D S U B S I D I Z E D T O E C O N O M I C A L M A I N S TA Y O F A D E M O C R A T I C G R I D
John Farrell Director of Democratic Energy
April 2014
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y P R I C E
T H E PA S T
Value of solar energy (MN, 2014)
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
T H E PA S T
Value of solar energy (MN, 2014)
T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y P R I C E
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
Value of solar energy (MN, 2014)
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
T H E PA S T
T H E C O S T O F S O L A R FA R E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y P R I C E
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
T H E C O S T O F S O L A R , VA L U E O F S O L A R ,
A N D R E TA I L E N E R G Y P R I C E A R E A L L
S I M I L A R
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
M I N I M A L S U B S I D I E S
N E E D E D
T H E C O S T O F S O L A R , VA L U E O F S O L A R ,
A N D R E TA I L E N E R G Y P R I C E A R E A L L
S I M I L A R
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
T H E F U T U R EP R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R
M I N I M A L S U B S I D I E S
N E E D E D
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
T H E F U T U R EP R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
VA L U E O F S O L A R I S S U F F I C I E N T T O
C O M P E N S AT E S O L A R P R O D U C E R S
M I N I M A L S U B S I D I E S
N E E D E D
T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R
$0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energyRetail (net metering) rateCost of solar energy
VA L U E O F S O L A R A L O N E I S S U F F I C I E N T T O
C O M P E N S AT E S O L A R P R O D U C E R S
T H E F U T U R E
R E TA I L R AT E C O M P E N S AT I O N ( N E T M E T E R I N G ) E X C E E D S
VA L U E O F S O L A R
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S P R O V I D E D M O R E
VA L U E T O G R I D T H A N T H E Y G O T PA I D F O R
T H E R E TA I L E N E R G Y P R I C E I S H I G H E R T H A N T H E VA L U E O F S O L A R , I T S E L F H I G H E R T H A N T H E C O S T O F S O L A R
F U T U R E P O L I C Y P R I N C I P L E S
• Democracy: energy policy should encourage broad ownership of energy production.
• Equity: subsidies should be accessible (not tax-based) but progressive (funded from non-regressive sources), and phased out over time. Producing local renewable energy should be reasonably profitable.
• Local: policy should encourage communities to maximize capture of their energy dollars with conservation, energy efficiency, and local power generation.
F U R T H E R R E A D I N G
• Report: Minnesota’s Value of Solar (ILSR, 2014): www.ilsr.org/minnesotas-value-of-solar/
• An Enormous Question for ‘Solar Choice’: www.ilsr.org/enormous-question-solar-choice