State Community Solar Policy Trends: DC National Conference of State Legislatures Webinar

State Community Solar Policy Trends DC National Conference of State Legislatures Webinar June 7, 2018 Autumn Proudlove Senior Manager of Policy Research NC Clean Energy Technology Center afproudl@ncsu.edu

About the NC Clean Energy Technology Center Public Service Center administered by the College of Engineering at North Carolina State University Mission is to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies practices, and policies. Objective research, analysis, & technical assistance no advocacy Manage the Database of State Incentives for Renewables and Efficiency (DSIRE www.dsireusa.org)

About the 50 States of Solar Quarterly publication detailing state and utility distributed solar policy & rate design changes Includes changes to state community solar policies Regulatory actions, bills passing at least one chamber States, IOUs, public power utilities with >100,000 customers Provide complimentary copies to state legislators and regulators https://nccleantech.ncsu.edu/the-50-states-reports/

Community Solar Policies and Programs DC Enacted Community Solar Policy Active Utility-Involved Program 19 States + DC have a statewide community solar policy No Policy Information from the NC Clean Energy Technology Center and the Smart Electric Power Alliance (2017 Solar Market Snapshot)

Q1 2018 Action on Community Solar Policy Q1 2018 action No recent action 15 States took action on community solar policy during Q1 2018

Community Solar Policies New states are slowly adopting statewide community solar enabling policies Maryland (May 2015) Oregon (March 2016) Rhode Island (July 2016) Illinois (December 2016) Virginia (March 2017) North Carolina (July 2017) New Jersey (May 2018)

Community Solar Policies Examples of new policies under consideration in 2018: Louisiana PSC Staff s proposed revised net metering rules would allow community net metering Connecticut S.B. 336 creates a statewide 300 MW community solar program (passed Senate, but session has adjourned) Virginia S.B. 313 creates a new program allowing third parties to own & operate projects carried over to 2019 Maryland H.B. 878 would have made the pilot program permanent (legislation did not advance) Washington H.B. 2280 would have created a community solar gardens program

Community Solar Policy Trends Each state s policy looks very different virtual net metering, community solar gardens, utility-led community solar Virtual or Group Net Metering Ex. Massachusetts, New Hampshire, Vermont Community Solar Gardens , Shared Renewables , etc. Ex. Colorado, Minnesota Utility-Led Community Solar Ex. North Carolina, Virginia

Community Solar Policy Trends State programs have different system size limits, program caps, and other requirements. State Colorado DC System Size Program Cap 2 MW 5 MW Varies by utility Unlimited 3 MW (Oahu), 1 MW (others) Phase 1: 8 MW, Phase 2: 64 MW Hawaii 2 MW 200 MW Maryland 1 MW Unlimited Minnesota 5 MW TBD by Board of Public Utilities New Jersey 5 MW Unlimited New York 5 MW 40 MW North Carolina 500 kW 2 MW Unlimited 50 MW Vermont Virginia

Community Solar Policy Trends States are considering new approaches to credit rates for community solar participants Retail rate credit Avoided cost rate credit Value of solar credit Time-varying credit Location-based credit Follows ongoing discussion of net metering credit rates across the country net metering credit changes typically apply to virtual net- metered systems as well Ex. Maine, Vermont

State Colorado Credit Rate Description Total aggregate retail rate Phase I: Flat credit rates, based on mid-day rates Phase II: Time-varying credit rates Retail rate Value of solar rate TBD by Board of Public Utilities Hawaii Maryland Minnesota New Jersey Value of solar rate (includes credit for energy, capacity, demand reduction, locational system relief value, and environmental value) New York Avoided cost rate North Carolina Value of solar rate (under development) Oregon Blended residential retail rate; all production is subject to credit adjustors (positive and negative) based on system size, site location, and REC ownership Vermont

Community Solar Policy Trends States are working to increase opportunities for low-income customers to participate in community solar programs Establishing carve-outs within community solar programs for low-income participants Maryland 60 MW set aside for projects focused on LMI customers Connecticut S.B. 336 10% carve-out for low-income customers Providing incentives for low-income community solar projects or locating projects in designated environmental justice areas Illinois Solar for All program Massachusetts SMART program New York PSC Staff proposal

Community Solar Policy Trends Developing community solar programs as part of other low- income energy programs California pilot project proposed as part of effort to develop alternative energy options for disadvantaged communities in the San Joaquin Valley New Hampshire June 2017 net metering decision called for LMI pilot projects Ensuring low-income housing providers can participate Providing financing options for low-income participants Developing outreach and education plans

Community Solar Policy Takeaways Very likely to continue seeing states adopt new community solar policies, primarily through legislative action Legislative language is important program details are often worked out in a regulatory proceeding, but legislative framework impacts program success Will continue seeing a focus on credit rates, especially movement toward value-based credit rates Will continue seeing efforts to increase low-income participation

Thank you! Autumn Proudlove Senior Manager of Policy Research NC Clean Energy Technology Center afproudl@ncsu.edu