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Solar America Initiative
U.S. Department of Energy

Solar America Cities:
MINNEAPOLIS
SAINT PAUL


          February 2009

          Brian Ross
          CR Planning, Inc.
First. . .
    A Quiz!
When should we start planning for solar
energy?

Cost effectiveness - Just as soon as it costs
 less than utility power?

Technology - When the new ‘ink-jet solar
 panels’ come out?

Capital - Just as soon as we have some extra
 money?
First. . .
    A Quiz!
When should we start planning for solar
energy?

Cost effectiveness - Just as soon as it costs   Wrong!
 less than utility power?

Technology - When the new ‘ink-jet solar        Wrong!
 panels’ come out?

Capital - Just as soon as we have some extra
                                                 Wrong!
 money?
All you need to remember from my
15 minutes . . .


 Cost effectiveness, innovative technology, availability of
  capital will not result in major investment in solar energy.

 Creating a sustainable market for almost any product,
  including solar energy, takes conscious effort sustained
  over time.

 Minnesota communities can transform the market for
  solar energy.
U.S. DOE Solar America Initiative:
 Creating a Sustainable Solar Market

      The goal of the Solar America Initiative is to help make solar
    technologies cost-competitive across all U.S. markets by 2015.


Codes &      Solar America   State & Utility   Workforce        Solar
Standards     Showcases        Outreach                      America Cities
                                               Development




            www.eere.energy.gov/solar
Solar America Cities




Source: DOE Solar America Presentation
Solar America Cities


        Activity Objective:
        Partner with cities of 100,000 or more committed to
          achieving a sustainable solar infrastructure
          through a comprehensive, city-wide approach
          that facilitates mainstream adoption of solar
          and serves as a model for other cities to follow.

        Project Overview:
           Cities receive $200,000 in financial assistance plus
           approximately $250,000 in technical assistance. Cities
           must match the financial assistance amount only.
Source: DOE Solar America Presentation
In order to reach our SAI goal . .
      ..




                                                       8
                                         Solar Costs
Source: DOE Solar America Presentation
U.S. National Electricity Price Forecast
                                         • Applying the same conservative 4.7% inflationary rate,
                          c/kWh
           Year*                         average US electricity prices will reach 16 c/kWh by 2015
                                         • Rates in some states will be higher, with CT electricity
       2008E             11.14           prices forecast to reach 27 c/kWh in 2015 by the same logic

       2009E             11.66
       2010E             12.21
       2011E             12.79
       2012E             13.39
       2013E             14.02
       2014E             15.67
       2015E             15.36
           *Estimates

        Solar is already cost competitive in some states today and will be in many
                more in coming years as energy prices increase nationwide                              9
Source: DOE Solar America Presentation
Market barriers to solar commercialization

   Misunderstanding regarding solar potential
   Poor consumer awareness of technology and applications
   Inadequate codes and standards
   Lack of appropriate, consistent interconnection standards
   Lack of equitable and effective net-metering guidelines
   Inconsistent utility rate structure practices
   Complex or inconsistent permitting procedures and fees
   Inconsistent and lack of widespread incentives and other
    adoption drivers
   Limited education/experience of key building trades with solar
   Need for trained technical personnel, reliable installers, and
    maintenance services
   Lack of flexible, sophisticated, proven financial approaches
What’s Next
 For Minnesota’s Solar Cities?
Convening Workgroups                    Taking Action
 State Policy – Building consensus     Develop legislation to create or
  among a diverse group of               restore solar incentives, create
  stakeholders on state policy
                                         initiatives to understand market
  initiatives; legislative,
                                         transformation
  programmatic, regulatory
 Local Policy – Working with
                                        Look for opportunities to
  stakeholders to identify and remove
                                         streamline local regulation while
  local barriers to market
                                         meeting regulatory goals, create
  transformation and create local
                                         local market transformation efforts
  opportunities for new incentives
  and programs
 Communications – Creating and         Identify branding and social
  implementing a communications/         marketing concepts and create
  branding plan to deliver key           promotional materials directed
  messages on solar potential and
                                         toward key audiences
  solar opportunities
What’s Next
 For Minnesota’s Solar Cities?
Creating Initiatives                 Taking Action
 Training – identify the            Work with colleges and technical
  potential training barriers to a    schools on solar curriculum
  robust solar market
                                     Work with trades to improve and
                                      better use training facilities
                                     Create and promote visible solar
 Visible Solar Investments –         installations:
  demonstrate that solar is             Minneapolis Convention Center
  viable and that Minneapolis,          HourCar solar-powered plug-in
  Saint Paul, and project                hybrid charging stations
  partners are prepared to              freEner-g solar leasing
  provide leadership.                 Collaborate to create new large
                                      scale projects by 2010:
                                        Central Corridor LRT
                                        ????
Thank You!

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Solar America Cities: Minneapolis & St. Paul

  • 1. Solar America Initiative U.S. Department of Energy Solar America Cities: MINNEAPOLIS SAINT PAUL February 2009 Brian Ross CR Planning, Inc.
  • 2. First. . . A Quiz! When should we start planning for solar energy? Cost effectiveness - Just as soon as it costs less than utility power? Technology - When the new ‘ink-jet solar panels’ come out? Capital - Just as soon as we have some extra money?
  • 3. First. . . A Quiz! When should we start planning for solar energy? Cost effectiveness - Just as soon as it costs Wrong! less than utility power? Technology - When the new ‘ink-jet solar Wrong! panels’ come out? Capital - Just as soon as we have some extra Wrong! money?
  • 4. All you need to remember from my 15 minutes . . .  Cost effectiveness, innovative technology, availability of capital will not result in major investment in solar energy.  Creating a sustainable market for almost any product, including solar energy, takes conscious effort sustained over time.  Minnesota communities can transform the market for solar energy.
  • 5. U.S. DOE Solar America Initiative: Creating a Sustainable Solar Market The goal of the Solar America Initiative is to help make solar technologies cost-competitive across all U.S. markets by 2015. Codes & Solar America State & Utility Workforce Solar Standards Showcases Outreach America Cities Development www.eere.energy.gov/solar
  • 6. Solar America Cities Source: DOE Solar America Presentation
  • 7. Solar America Cities Activity Objective: Partner with cities of 100,000 or more committed to achieving a sustainable solar infrastructure through a comprehensive, city-wide approach that facilitates mainstream adoption of solar and serves as a model for other cities to follow. Project Overview: Cities receive $200,000 in financial assistance plus approximately $250,000 in technical assistance. Cities must match the financial assistance amount only. Source: DOE Solar America Presentation
  • 8. In order to reach our SAI goal . . .. 8 Solar Costs Source: DOE Solar America Presentation
  • 9. U.S. National Electricity Price Forecast • Applying the same conservative 4.7% inflationary rate, c/kWh Year* average US electricity prices will reach 16 c/kWh by 2015 • Rates in some states will be higher, with CT electricity 2008E 11.14 prices forecast to reach 27 c/kWh in 2015 by the same logic 2009E 11.66 2010E 12.21 2011E 12.79 2012E 13.39 2013E 14.02 2014E 15.67 2015E 15.36 *Estimates Solar is already cost competitive in some states today and will be in many more in coming years as energy prices increase nationwide 9 Source: DOE Solar America Presentation
  • 10. Market barriers to solar commercialization  Misunderstanding regarding solar potential  Poor consumer awareness of technology and applications  Inadequate codes and standards  Lack of appropriate, consistent interconnection standards  Lack of equitable and effective net-metering guidelines  Inconsistent utility rate structure practices  Complex or inconsistent permitting procedures and fees  Inconsistent and lack of widespread incentives and other adoption drivers  Limited education/experience of key building trades with solar  Need for trained technical personnel, reliable installers, and maintenance services  Lack of flexible, sophisticated, proven financial approaches
  • 11. What’s Next For Minnesota’s Solar Cities? Convening Workgroups Taking Action  State Policy – Building consensus Develop legislation to create or among a diverse group of restore solar incentives, create stakeholders on state policy initiatives to understand market initiatives; legislative, transformation programmatic, regulatory  Local Policy – Working with Look for opportunities to stakeholders to identify and remove streamline local regulation while local barriers to market meeting regulatory goals, create transformation and create local local market transformation efforts opportunities for new incentives and programs  Communications – Creating and Identify branding and social implementing a communications/ marketing concepts and create branding plan to deliver key promotional materials directed messages on solar potential and toward key audiences solar opportunities
  • 12. What’s Next For Minnesota’s Solar Cities? Creating Initiatives Taking Action  Training – identify the Work with colleges and technical potential training barriers to a schools on solar curriculum robust solar market Work with trades to improve and better use training facilities Create and promote visible solar  Visible Solar Investments – installations: demonstrate that solar is  Minneapolis Convention Center viable and that Minneapolis,  HourCar solar-powered plug-in Saint Paul, and project hybrid charging stations partners are prepared to  freEner-g solar leasing provide leadership.  Collaborate to create new large scale projects by 2010:  Central Corridor LRT  ????