1. Shared
Renewable
Energy
Model
Program
Rules
Webinar
June
26,
2013
Photo
credit:
Clean
Energy
Collec@ve

2. Why
do
we
need
shared
renewables?
• People
really
want
to
green
their
energy
supply
• But,
only
about
25%
of
residents
and
businesses
are
able
to
install
solar
or
other
renewables
on
their
own
property

3. How
does
Shared
Renewables
work?
The ‘No Roof’ Solution = Everyone Can Participate
We can stop leaving customers out of the renewable energy market

4. How
shared
renewables
can
help
• Shared
renewables
works
for
the
other
75%
• Gives
renters,
many
schools
and
public
buildings,
millions
of
home
and
business
owners
affordable
access
to
clean
energy
for
the
first
@me
• Simple
for
customers
to
par@cipate
• Crowdfunding
can
help
solve
financing
challenges
for
developers
• Systems
can
be
installed
in
op@mal
loca@ons
and
achieve
lower
cost/WaP
through
economies
of
scale
• 5%
of
U.S.
households
subscribing
to
5kW
of
shared
solar
=
28GW
of
new
clean
energy
capacity
4

5. Shared
Renewables:
An
Idea
Whose
Time
Has
Come
“The
Power
of
Sharing
in
the
Internet
Economy”
-­‐
Forbes
“The
Sky’s
the
Limit
for
the
Sharing
Economy”
-­‐
Fast
Company
“The
New
Sharing
Economy
Values
Access
Over
Ownership”
-­‐
CS
Monitor
U0lity
associa0ons
are
telling
their
members…

6. Model Rules for Shared
Renewable Energy Programs
Laurel Passera
IREC Webinar
June 26, 2013

7. About IREC
• Participated in
regulatory
proceedings in over
35 states
• Works to expand
consumer access to
clean energy

8. 20132010

9. Why an Update Now?

10. Guiding Principles for Shared Renewables
1
2
3
4

11. Shared Renewables– Shares
Aspects with other Programs
Net Metering
Donation-based models
Group Purchasing
Crowd funding

12. Critical Elements of the Model
• Program Administration
• Allocating the benefits of participation
• Valuation of the energy produced
• Facility and Program Size
• Facility ownership
• Additional Considerations (# of
participants, portability/transferability, low
income, restructured states)

13. Program Administration
Who can administer a program?
– Utility—most existing shared renewables
programs are administered by utilities
– Third party—for example, Clean Energy
Collective
– Participants—for example, Vermont’s group
billing
IREC does not specify a program administration
recommendation

14. Allocating the Benefits of
Participation
By check
– Simplicity is initially appealing
– However, raises security and tax considerations
that can complicate things
By bill credit mechanism
– kWh credit vs. dollar credit
– Relatively easy to administer
– Avoids security and tax concerns
– Familiar to participants and utilities
IREC recommends a monetary bill credit

15. Valuation of the Generation
• Embedded-cost approach—based on participants’
retail rate
– Credit based on generation, transmission and/or
distribution rate components (similar to NEM)
– Can get even more complicated with TOU rates and
non-kWh rate components, e.g., demand charges
• Value-based approach—based on the value of the
generation to the utility
– Costs = lost revenue, administrative costs, incentives
– Benefits = avoided generation costs, avoided line
losses, capacity benefits avoided T&D costs, avoided
environmental compliance costs, others?
IREC provides language for both approaches

16. Ownership
Ownership directly affects financing. Typical
options being used:
• Direct ownership (residential, commercial,
non-profit, and/or governmental)
• Third-party ownership—for example,
Clean Energy Collective
• Utility ownership—for example, Florida
Keyes Electric Cooperative (participants
lease panels from the utility)
IREC recommends allowing all forms of ownership

17. Facility and Program Size
Size and location depend on stakeholder
goals and priorities
– Smaller systems can usually take advantage
of faster interconnection (e.g., < 2 MW)
– Program could encourage locations that
maximize grid benefits and/or
environmental benefits
IREC recommends unlimited program size and does not
make a recommendation on facility size

18. Additional Recommendations
• Minimum of 2 program participants
• Allow both portability and transferability of
participation
• Minimum subscription size – one panel
• Maximum size - 120% of a participant’s
annual electrical consumption
• Encourage low-income consumer
participation

19. Restructured States
Policy is not generally necessary to create programs in
these states, but could potentially facilitate programs
Some considerations include:
• More complex billing arrangements
• State requirements to offer RE programs do not
always transfer to retail suppliers
• Contracts length and penalties for early termination
• Customers served by different suppliers

20. Shared
Renewables
Policies
and
Campaigns
www.sharedrenewables.org

21. Shared
Renewables
Projects
www.sharedrenewables.org

22. Policy
&
Project
Highlights
• Colorado
Solar
Gardens
well
into
implementa@on,
with
thousands
of
customers
par@cipa@ng.
• CA
SB
43
poised
to
create
600MW
pilot
program
• MN
passed
bill
crea@ng
Solar
Gardens
program
• NY
likely
to
consider
shared
renewables
legisla@on
in
2014
• U@li@es
proac@vely
launching
shared
renewables
programs
to
meet
customer
preferences.

23. For
more
informa4on:
Laurel
Passera
IREC
lpassera@kfwlaw.com
510-­‐314-­‐8384
Erica
Schroeder
IREC
eschroeder@kfwlaw.com
510-­‐314-­‐8206
Hannah
Masterjohn
Vote
Solar
hannah@votesolar.org
607-­‐431-­‐8811
23
Resources
• IREC’s
Model
Program
Rules
serve
as
a
star@ng
point
for
stakeholders
looking
to
launch
programs
in
their
state/community
• SharedRenewables.org
is
a
central
info
source
on
shared
renewables
policies
and
projects
• IREC
is
available
for
technical
assistance
on
program
design
and
implementa@on
• Contact
Vote
Solar
regarding
legisla@ve
campaigns

24. APPENDIX

25. SHARED
RENEWABLES
Mul4ple
customers/accounts
sharing
the
power
and
economic
benefits
from
one
solar
project,
via
their
individual
u4lity
bills
Broadening
Access
to
Renewable
Energy
How
do
we
bring
clean
energy
to
ALL
customers?
Note:
Each
of
these
structures
represents
a
complex
set
of
rapidly
evolving
business
models
–
this
summary
is
designed
to
provide
a
basic
understanding
of
the
“typical”
structures
in
use
today
Company
(e.g.
Mosaic)
manages
individuals’
investments
in
renewable
energy
projects,
offers
aPrac@ve
returns
While
this
business
model
does
not
involve
customers’
energy
bills,
it
does
enable
individuals
to
directly
support
solar
projects
RENEWABLE
ENERGY
PROJECT
INVESTMENTS