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CALIFORNIA SOLAR ENERGY INDUSTRIES ASSOCIATION Farming Clean Energy Sue Kateley, Executive Director info@calseia.org. What is CALSEIA?. CAL ifornia S olar E nergy I ndustries A ssociation Founded in 1977; largest in US
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CALIFORNIA SOLAR ENERGY INDUSTRIES ASSOCIATIONFarming Clean EnergySue Kateley, Executive Directorinfo@calseia.org
What is CALSEIA? • CALifornia Solar Energy Industries Association • Founded in 1977; largest in US • Our Mission to expand the use of all solar technologies in California and establish a sustainable industry for a clean energy future • Membership comprised of solar professionals
Why is Solar so Important to California? Reduces dependence on fossil fuels Provides Distributed Power and Utility Scale Power Creates living wage jobs Reduces pollution Strengthens California’s manufacturing base Brings income tax and sales tax revenues to the state Asserts California’s leadership in the fight against global warming
California Electricity Demand Forecast Source: 2007 California Integrated Energy Report, California Energy Commission
California Peak Electricity Demand “CAISO says it does not anticipate any shortages on Wednesday or Thursday, but it still asks that consumers help cut energy demand during the afternoon hours.” August 26, 2006
California Growing Peak Electricity Demand • California accounts for 11.5% of US GDP • 12% of total US population growing at 1.2% per year • 54 million by 2040 • New population growth moving inland: hotter regions • Higher peak electricity demand anticipated
188 pending interconnection requests for projectsTotaling 62,000 MWOf these 42,000 MW are renewable (primarily wind and CSP) California Transmission Congestion
California Electricity Production2006 Fuel Sources Source: http://www.energy.ca.gov/electricity/electricity_resource_mix_pie_charts/index.html
California Natural Gas Supply Forecasts Source: 2007 Natural Gas Market Assessment, California Energy Commission
California Solar Programs • California has a history of Renewable Energy Policies • State initiatives: • Renewable Portfolio Standard (RPS) requires major utilities to generate 20% of their electricity using renewables by 2010 • Since 1998 – PV Rebates, Net Metering: ERBP – CEC, • Since 2007 – California Solar Initiative, New Solar Homes • Pending: California Solar Water Heating Efficiency Act (AB1470): incentives for solar water heating with natural gas • Pending:Greenhouse Gas regulations mandates reduction in carbon emissions to 1990 levels by 2020 (a reduction of 25%), plan due January 1, 2009 (AB32)
Solar Technologies • Photovoltaic (Light into Energy) - Electricity • Silicon-based PV • Non-silicon PV: Thin Film and Amorphous • Polymer (research only) • Solar thermal (Light into Heat) – Water and Air • domestic water • pool • commercial/process • space heating • space cooling • Concentrating Solar - Electricity, Heating, Cooling, Hot Water • utility scale electricity • distributed electricity and thermal
Solar Technologies Golmayo, Spain Solarig 3 MW Solar Project 176 two axis tracking structures
Solar Technologies Tehachapi, CA 27,250 ft2 of solar collectors on two acres of land heats a pressurized water district-heating loop to about 240°F for space heating and DHW. The system provides essentially 100% of the thermal needs of the prison. On line in 1990 operating continuously.
Solar Technologies Mountain View, CA Google 1.6MW PV array
Solar on the Farm • On-site Energy Use • Net metering (retail bill credit only) • California Solar Initiative Incentive • Federal Tax Credit • Feed in to the Grid (aka, feed in tariff) • Wholesale power contract with utility • Federal tax credit
Ownership Models are Evolving • Purchase Outright • Conventional Financing • Lease to Own the System • Lease Property to the Investor • 3rd party investor • Power Purchase • Lease your ground • Power Purchase Agreement for on-site power consumption
Government Incentives • 30% Federal Tax Credit • through 2016 • You or the 3rd party investors can take the credit • Utilities are now eligible to take the credit • Depreciation • 5 year accelerated depreciation • California State Rebates • Performance based • Up front rebate • Rebate levels are declining • Property Tax Reassessment Exemption
Opportunities and Risks • Technology is changing • Highest state rebates for the first in line to get them • Hedging future energy price increases • Do your homework • Reputable company • High quality technology • Experienced installers • Financial health to finance, install, and provide prompt service • Understand your electricity rates and net metering