Solar Energy in the United States New and Emerging Markets and Investment Opportunities Rhone Resch...
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Solar Energy in the United States New and Emerging Markets and Investment Opportunities Rhone Resch President and CEO Solar Energy Industries Association
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Transcript of Solar Energy in the United States New and Emerging Markets and Investment Opportunities Rhone Resch...
Solar Energy in the United StatesNew and Emerging Markets and Investment
Opportunities
Rhone Resch
President and CEO
Solar Energy Industries Association
Introduction to SEIA
US National Trade Association for Solar Companies• Over 900 member companies• Members include all solar technologies• Represent over 80,000 people employed by solar• 14 state and regional chapters
SEIA’s Mission• Expand Markets• Remove Market Barriers • Strengthen R&D• Improve Education and Outreach
Voice of Solar in US
We Represent Your Interests in the United States
US PV Market - 2008
• PV market grew by 71%• On-grid PV grew by 81% • Off-grid PV grew by 21%• Residential +32%• Commercial +110%• Utility +97%• Domestic manufacturing
continues to grow
Wednesday, April 19, 2023 © 2009 SEIA 4
Domestic PV Cell Manufacturing (MWDC)
2007 2008p Growth
Production 271 414 53%
Capacity 415 685 65%Source: Greentech Media Research/Prometheus Institute
Grid-Tied PV Capacity Additions by Market Segment
Wednesday, April 19, 2023 © 2009 SEIA 5
2003 2004 2005 2006 2007 2008p -
50
100
150
200
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350
15 24 27 38 58 76 27 32 51
67
95
199
3 2
1 0
9
17
Residential Non-residential Utility
MW
Sources: IREC
Grid-Tied PV Capacity – State by StateState Installed in 2008 Cumulative
California 178.6 530.1
New Jersey 22.5 70.2
Colorado 21.6 35.7
Nevada 14.9 34.2
Hawaii 11.3 15.8
New York 7.0 21.9
Arizona 6.4 25.3
Connecticut 5.3 8.8
Oregon 4.7 7.5
North Carolina 4.0 4.7
Others 15.3 36.4
Total 292 791
Wednesday, April 19, 2023 © 2009 SEIA 6
2008 Breakthrough Success
• Tax Credit Extension - 17 Votes in Congress– Filibustered 9 times
• Bailout Bill – October 3– Extended tax credits for 8 years– Removed residential cap for PV– Repealed utility exemption– Provides AMT relief for commercial and residential
• Additional Solar Legislation Introduced– SOLAR Act– Feed-in Tariff– Solar Reserves
• 2008 was a Record Year• Last 3 Months Extremely Difficult• Good News
Creating a Solar Governor
Wednesday, April 19, 2023 © 2009 SEIA 9
Creating a Solar President
Creating a Solar President
Wednesday, April 19, 2023 © 2009 SEIA 11
Changes in Washington• Obama Administration
– Carol Browner – WH Energy and Climate Coordinator**– Dr. Steven Chu – Secretary of Energy– Nancy Sutley – Council on Environmental Quality– Lisa Jackson – Environmental Protection Agency– Van Jones – WH Green Jobs Advisor– Cathy Zoi – Assistant Secretary EERE
• Congress– Waxman replaces Dingell Chairman of House Committee on Energy
& Commerce– Markey Subcommittee on Global Warming– Senate – Democrat majority increases, more difficult for Republican
filibuster
HR 1 American Recovery and Reinvestment Act• 19 Provisions to Benefit Solar Companies
– Improves existing tax credits• Refundability• Remove subsidized energy financing penalty
– Improves loan guarantee program– Increases government procurement ($25 billion)– Creates new manufacturing tax credits– State energy program funding ($3.1 billion)– Expands CREBS funding ($1.6 billion)– Funds school repair and construction ($53.6 billion)– Funds water treatment repair and construction ($6 billion)– Supports construction of new transmission– Increases access to federal lands– Increases DOE solar appropriation– Improves tax credit for solar water heating – Funds worker training– Increases profile of solar with top political leaders
Environmental Energy Technologies Division • Energy Analysis Department
State RPS Policies: 28 States and D.C.; Additional States Have Non-Binding Goals
Existing mandatory state RPS policies will apply to 53% of US electrical load, once fully implemented
Non-Binding Goal
Source: Berkeley Lab
WI: 10% by 2015
NV: 20% by 2015
TX: 5,880 MW by 2015
PA: 8.5% by 2020
NJ: 22.5% by 2021CT: 23% by 2020
MA: 4% by 2009 +1%/yr
ME: 40% by 2017
NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)
CA: 20% by 2010
MN: 25% by 2025Xcel: 30% by 2020
IA: 105 MW by 1999
MD: 20% by 2022
RI: 16% by 2019
HI: 20% by 2020
AZ: 15% by 2025
NY: 24% by 2013
CO: 20% by 2020 (IOUs)10% by 2020 (co-ops and munis)
MT: 15% by 2015
DE: 20% by 2019
DC: 20% by 2020
WA: 15% by 2020
NH: 23.8% by 2025
OR: 25% by 2025 (large utilities)5-10% by 2025 (smaller utilities)
NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops and munis)
IL: 25% by 2025
Mandatory RPS
VT: 20% by 2017ND: 10% by 2015
VA: 12% by 2022MO: 15% by 2021
OH: 12.5% by 2024
SD: 10% by 2015
UT: 20% by 2025
MI: 10% by 2015
Non-Binding Goal
Source: Berkeley Lab
WI: 10% by 2015
NV: 20% by 2015
TX: 5,880 MW by 2015
PA: 8.5% by 2020
NJ: 22.5% by 2021CT: 23% by 2020
MA: 4% by 2009 +1%/yr
ME: 40% by 2017
NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)
CA: 20% by 2010
MN: 25% by 2025Xcel: 30% by 2020
IA: 105 MW by 1999
MD: 20% by 2022
RI: 16% by 2019
HI: 20% by 2020
AZ: 15% by 2025
NY: 24% by 2013
CO: 20% by 2020 (IOUs)10% by 2020 (co-ops and munis)
MT: 15% by 2015
DE: 20% by 2019
DC: 20% by 2020
WA: 15% by 2020
NH: 23.8% by 2025
OR: 25% by 2025 (large utilities)5-10% by 2025 (smaller utilities)
NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops and munis)
IL: 25% by 2025
Mandatory RPS
VT: 20% by 2017ND: 10% by 2015
VA: 12% by 2022MO: 15% by 2021
OH: 12.5% by 2024
SD: 10% by 2015
UT: 20% by 2025
MI: 10% by 2015
US Market Strong in 2009
• California continues to be the dominant market but…
• More states adding incentives– Virginia adding incentive– Pennsylvania adding incentive– District of Columbia adding incentive– New York adding more incentives– Maryland providing more funding for incentives– Missouri new solar carve-out for RPS– Vermont feed-in tariff
• Federal incentives stronger than ever
Highlight: California
• California Solar Initiative on tract to double installations this year
Source: SEIA based on CSI data from 7/8/09
Highlight: California continued
• California growing into a multibillion dollar market
• $842 million in revenue in the first half of ‘09
Source: SEIA based on CSI data from 7/8/09
Highlight: California continued
• Order pipeline strong
• $656 million and 110 MW in applications from first half of ’09 alone
• Q2 ‘09 strongest quarter yet for incentive applications
Source: SEIA based on CSI data from 7/8/09
Renewable Portfolio Standards
☼ OH: 25% by 2025†
ME: 30% by 2000New RE: 10% by 2017 ☼ NH: 23.8% by 2025
☼ MA: 15% by 2020+ 1% annual increase(Class I Renewables)
RI: 16% by 2020
CT: 23% by 2020
☼ NY: 24% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18% by 2020†
☼ MD: 20% by 2022
☼ DE: 20% by 2019*
☼ DC: 20% by 2020VA: 15% by 2025*
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
VT: (1) RE meets any increase in retail sales by 2012;
(2) 20% RE & CHP by 2017
State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible *† Extra credit for solar or customer-sited renewables
Includes separate tier of non-renewable alternative resources
☼ Minimum solar or customer-sited requirement
RPS Policies with Solar / DG Provisions
State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible
OH: 0.5% solarby 2025
NC: 0.2% solarby 2018
MD: 2% solar-electric in 2022
DC: 0.4% solar by 2020; 1.1 multiplier for solar
NY: 0.1542% customer-sitedby 2013
DE: 2.005% solar PV by 2019;triple credit for PV
NH: 0.3% solar-electric by 2014
NJ: 2.12% solar-electric by 2021
PA: 0.5% solar PV by 2020
MA: TBD
State Solar Set-Aside Programs
State Cumulative Installed Capacity (MW)
Goals (MW) Terminal Date
New Jersey 57.8 1,800 2020
New York 15.1 100 2011
Connecticut 9.3 17 2010
Massachusetts 4.6 250 2017
Pennsylvania* - 690-2700 2020
Ohio - 820 2024
Maryland - 1,400 2022
Total 5,077-7,077
*Expands with passage of SB 92 and HB 80
Environmental Energy Technologies Division • Energy Analysis Department
Future Impacts of Solar/DG Set-Asides Are Projected To Be Substantial• 500 MW required by 2010, growing to 7,700 MW by 2025• Approximately 100 MW/yr through 2010, 300 MW/yr through 2014, 600
MW/yr through 2021
Graphic assumes that full compliance is achieved
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Annual Capacity (right axis)
Cumulative Capacity (left axis)
New Green Energy Bill
• Comprehensive Energy Legislation– House and Senate refining legislation– Initial Drafts Contain
• Renewable Electricity Standard (20% by 2025)• Carbon cap and trade program (83% decrease by 2050)• Transmission legislation• 30-year PPA authority• Clean energy bank
Clean Energy Bank in H.R. 2454
• Amendment passed on inclusion of a Clean Energy Deployment Administration under the DOE– Provide a suite of financing options, including direct
loans, letters of credit, loan guarantees, insurance products and others
– The bank would fund "breakthrough" technologies and is aimed at helping promising technologies from moving from the lab into commercial demonstrations and markets
– Can reduce interest rates from 7-9% to 1.75% through FFB
Wednesday, April 19, 2023 © 2009 SEIA 24
Grid-Parity: 30% ITC + Bonus Depreciation
• 100% debt financed*– 8% APR– 20 years
• 30% ITC• Bonus
Depreciation• Commercial
systems only
*4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs
Los Angeles
New York
Miami
Philadelphia
Chicago Boston
Las Vegas
Honolulu
Grid-Parity in US Cities: 30% ITC + Bonus + Green Bank
•100% debt financed
- 8% 4% APR
- 20 years• 30% ITC•Bonus
Depreciation•Commercial systems only
• Does not include state incentives!
*4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs
Los Angeles
New York
Miami
Philadelphia
Chicago Boston
Las Vegas
Honolulu
X
How To Get Involved in the US Market
1. Join SEIA – WWW.SEIA.ORG– Expand your business
• Fast-track government approval• Access to federal funds
– Network of 900 companies• Top global manufacturers, financiers, installers
– Shape markets and policy in America• 20 Active issue groups
– Discounts to conferences• Solar Power International • PV America
– Karen Nedbal, Director of Membership
How to Get Involved in the US Market
2. Attend and participate in SEIA’s PV America– Largest PV only conference in the US– Partnership with IEEE PVSC– Philadelphia, PA June 8-10– Fastest growing market in the US– Learn from the best!
• More than 50 breakout sessions on Business Development, Financing Issues, Market Development, Policy Updates and Workforce Issues
– Collaboration with SNEIA– WWW.PVAMERICAEXPO.COM
America’s largest B2B solar event featuring 650+ Exhibitors covering 200,000 net square feet of exhibit space!
presented by:
• Balance of Systems
• Material and Equipment Suppliers
• Distributors, Integrators, Installers and Solar Service Providers
• Publications and more
• PV Cells and Modules
• Solar Water Heating
• Concentrating Solar Power (CSP)
• Solar Thermal Electric
• Concentrating PV (CPV)
Learn more at SolarPowerInternational.com
• CEO Panels and Keynote Presentations
• 65+ Education Sessions and 200+ Speakers presenting in six educational tracks:
• Pre and Post Show Workshops
• Technology
• Policy
• Markets
• Finance
• Cross-Cutting
• Execution and Implementation
Learn more at SolarPowerInternational.com
Premier Educational Opportunities:
