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Page 1: The Future of Solar Economics and Policy

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

Page 2: The Future of Solar Economics and Policy

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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)

Page 3: The Future of Solar Economics and Policy

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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

Page 4: The Future of Solar Economics and Policy

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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

Page 5: The Future of Solar Economics and Policy

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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

Page 6: The Future of Solar Economics and Policy

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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

Page 7: The Future of Solar Economics and Policy

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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

Page 8: The Future of Solar Economics and Policy

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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

Page 9: The Future of Solar Economics and Policy

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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

Page 10: The Future of Solar Economics and Policy

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.

Page 11: The Future of Solar Economics and Policy

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