Working Group 3 Policy & Finance
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The Working Group 3 Policy & Finance group has 17 members representing utilities, solar industry, government, consultants, universities, and banking. The group discusses 15 different policies over 2 monthly calls and identified 3 main policies to focus on: 1) Residential solar readiness ordinance and financial mechanisms, 2) Commercial energy financing districts and concerns over superior liens, and 3) Utility-scale transmission initiatives and establishing renewable firm zones to inventory underused natural gas plants and pair them with solar generation.
Working Group 3 Policy & Finance
- 1. Working Group 3 Policy & Finance
- 2. Group Overview • 17 members • Representing – Utilities, Solar Industry, Government, Consultants, Universities, Banking etc. • 2 calls per month • 15 different Policies discussed by group • 3 main policies identified
- 3. Group Vision By creating and supporting innovative approaches to policy and computational financial development the Policy & Finance Working Group will assist Arizona in becoming a sustainable global leader in the Solar Energy Industry.
- 4. Policy Breakdown • Divided Policies into 3 sub-groups – Residential, Commercial, Utility Scale • Similar to Governor's Solar Taskforce • Focused on deployment of Solar • Policy included financial mechanisms – Residential & Commercial
- 5. Residential • Solar Readiness Ordinance – Major burden of wide spread residential solar development – Requires all new residential to be “Solar Ready” • Single-Family and Duplex – Increase knowledge on a community basis of ordinance • Financial – Decrease installation costs approximately 60%-66%
- 6. Commercial • Energy Financing Districts (EFD’s) – AKA Property Assessed Clean Energy (PACE) • Current AZ Statutes set up for Special Taxing Districts • Financing – Municipality’s issue bonds/other – Decreases up front cost on property owner – Can be used for Residential and Commercial – Payback over time assessed with Property Tax
- 7. Commercial COUTESY OF THE RENEWABLE AND APPROPRIATE ENERGY LABORATORY (RAEL) UNIVERSITY OF CALIFORNIA, BERKELEY
- 8. Commercial • EDF (PACE) Concerns – “Superior Lien” • Banking Industry concern • Need to work with Industry • Looking for “Softer lien” – But still keep financing low
- 9. Utility Scale • Arizona Transmission Initiative (ATI, AZTI…..AZIT) • Exportation is key – Therefore Transmission is Key • California Load – Much greater than AZ • How to get there?
- 10. Utility Scale • Race – NV, NM, UT, WY, OR, all in the running • AZ set itself apart – Must differentiate benefits to CA • Arizona Attributes – Natural Gas Generation – Solar Resource
- 11. Utility Scale • Establishment of “Renewable Firm Zones” (RFZ’s) – Inventory under-utilized Natural Gas Plants – Establish solar generation in concert with gas capacity – Increases reliability and balance – Increases payback opportunity for Transmission developers • Recoup costs faster • Less risk to financiers