Virtual Net Metering & Shared Solar: National Perspective
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The document discusses virtual net metering and shared solar from a national perspective, focusing on California's experiences and lessons learned for other states. It highlights various program features, definitions, and principles surrounding shared renewables, as well as the importance of understanding underlying rules and requirements. The content also emphasizes the significance of framing the solar landscape and engaging in regulatory practices to expand access to clean energy.
Virtual Net Metering & Shared Solar: National Perspective
- 1. Virtual Net Metering and Shared Solar: National Perspective Erica S. McConnell Attorney, Shute, Mihaly & Weinberger LLP July 12, 2016 Making Virtual Net Metering Work in California Intersolar North America
- 2. • Independent, non-partisan, national non-profit organization founded in 1982 • Non-industry voice and non-lobbying • Our focus: Expand access to reliable, affordable clean energy for all consumers • Workforce Program: Ensure a qualified, job-ready clean energy workforce • Solar Career Map • National Coordinator, Grid Engineering for Accelerated Renewable Energy Deployment (w/ EPRI, SEPA, US DOE) • Credentialing Program: Develop national education/training standards, best practices, and credentials • National Administrator, Solar Instructor Training Network (US DOE) • ANSI-Accredited National Standards Developer • Regulatory Program: State regulatory engagement on distributed energy resource policies • Model rules, national best practices, policy innovations www.irecusa.org | @IRECUSA © 2016 IREC 2
- 3. IREC Regulatory Activity 2007-2015 IREC Current Regulatory Engagement IREC’s National Regulatory Engagement © 2016 IREC DC IREC is represented by the law firm Shute, Mihaly & Weinberger LLP 3
- 4. 1 2 3 4 Defining Shared Renewables: Guiding Principles © 2016 IREC 4
- 5. Terms and Nomenclature • Nested within NEM program • Based on participant’s retail rate Virtual Net Metering (VNM) Investment-Based Models • Participants receive cash return, rather than bill credits • Investment-based, e.g., through an LLC Green Tariff Programs • Often relies on distant REC purchases • No rate hedging, usually premium These can all be “community solar” © 2016 IREC 5
- 6. Virtual Net Metering vs. Shared Solar • Within NEM • Bill credit at or close to retail rate • In CA: limited to multitenant/same site • Elsewhere (e.g., MA): not so limited • Bill credits could be allocated via VNM • Or could rely on separate bill credit mechanism • Can be stand-alone program (e.g., CO, MN) © 2016 IREC 6
- 7. The Moral of the Story Terms are used inconsistently. Don’t rely only on the program’s or tariff’s name. Better to look at the underlying rules and requirements. © 2016 IREC 7
- 8. Key Program Attributes Program size Administration and ownership System/facility Size, location and siting requirements Number of participants Participation Term and eligibility requirements Portability and transferability of subscriptions Allocating the benefits of participation Bill credit valuation REC ownership and valuation Unsubscribed energy Portability and transferability of subscriptions © 2016 IREC Plus simplicity, comprehensibility, and attractiveness for customers 8
- 9. Based on IREC research as of September 2015, www.irecusa.org National Shared Renewables Landscape DC + many voluntary utility programs on the horizon © 2016 IREC 9
- 10. Sharing Lessons Learned from CA Virtual Net Metering • Do other states’ shared solar programs facilitate on-site multitenant installations? • Is this a target market and project design (outside of affordable housing) for other states? • What learnings from California could help other states refine their offerings to reach these markets? – And what can other states teach California? © 2016 IREC 10
- 11. IREC Resources Both available at www.irecusa.org/regulatory-reform/shared-renewables © 2016 IREC 11
- 12. Additional Resources © 2016 IREC • IREC Consumer Protection Trio www.irecusa.org/consumer-protection • IREC Shared Renewable Energy Program Catalog (update coming very soon) www.irecusa.org/regulatory-reform/shared-renewables • US DOE/White House Community Solar Partnership http://energy.gov/eere/solarpoweringamerica/national-community-solar- partnership • US DOE Solar Market Pathways www.solarmarketpathways.org • National Renewable Energy Laboratory www.nrel.gov • Shared Solar: Current Landscape, Market Potential, and the Impact of Federal Securities Regulation www.nrel.gov/docs/fy15osti/63892.pdf 12
- 13. Thank you Erica S. McConnell Attorney, Shute, Mihaly & Weinberger LLP mcconnell@smwlaw.com Sara Baldwin Auck IREC Regulatory Program Director sarab@irecusa.org