Getting It Right: Models for Solar Pv Energy Delivery in British Columbia
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Running Head: GETTING IT RIGHT: MODELS FOR SOLAR PV ENERGY DELIVERY IN BRITISH COLUMBIA Getting It Right: Models for Solar PV Energy Delivery in British Columbia by Rhett Reilkoff BA, BSc A Thesis Submitted to the Faculty of Social and Applied Sciences in Partial Fulfilment of the Requirements for the Degree of Master of Arts In Environment and Management Royal Roads University Victoria, British Columbia, Canada Supervisor: Dr. Ann Dale June 2016 Rhett Reilkoff, 2016 GETTING IT RIGHT 2 COMMITTEE APPROVAL The members of Rhett Reilkoff’s Thesis Committee certify that they have read the thesis titled Getting It Right: Models for Solar PV Energy Delivery in British Columbia and recommend that it be accepted as fulfilling the thesis requirements for the Degree of Master of Arts in Environment and Management: Dr. Ann Dale [signature on file] Dr. Michael Mehta [via SharePoint] Dr. Leslie King [signature on file] Final approval and acceptance of this thesis is contingent upon submission of the final copy of the thesis to Royal Roads University. The thesis supervisor confirms to have read this thesis and recommends that it be accepted as fulfilling the thesis requirements: Dr. Ann Dale [signature on file] GETTING IT RIGHT 3 Creative Commons Statement This work is licensed under the Creative Commons Attribution-Non-Commercial- ShareAlike 2.5 Canada License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/2.5/ca/. Some material in this work is not being made available under the terms of this licence: • Third-Party material that is being used under fair dealing or with permission. • Any photographs where individuals are easily identifiable. GETTING IT RIGHT 4 Abstract Despite a lack of incentives, solar photovoltaic energy is gaining traction in British Columbia. Privately owned home and commercial systems are on the rise and an increasing number of community led initiatives are experimenting with various models for solar photovoltaic energy delivery. Using the business model as an analytical tool, the present study explores the range of models by which individuals and organizations have begun to harness and distribute solar PV in the province of BC, and the barriers, bridges, and critical success factors for each. A number of contextual conditions are identified that have contributed to two general categories of models that have arisen: commercially led approaches that focus on customer owned systems (i.e. individual home or building owners) and community led approaches that focus on community owned and/or financed systems. The study provides insight for others wanting to implement solar energy for themselves or their communities. GETTING IT RIGHT 5 Table of Contents List of Figures ......................................................................................................................7 List of Tables .......................................................................................................................8 Acknowledgements ..............................................................................................................9 Summary of Acronyms ......................................................................................................10 Solar Glossary ....................................................................................................................11 Introduction ........................................................................................................................13 Research Context ............................................................................................................15 The Landscape for Solar PV in British Columbia ..........................................................16 Solar Irradiance in BC ................................................................................................16 Solar Panel Electricity Production in BC ...................................................................17 Electricity Costs in BC ...............................................................................................17 Rate Hikes ..................................................................................................................19 Solar PV Costs & Grid Parity in BC ..........................................................................19 Customer Based Electricity Generation .....................................................................20 Bridges & Barriers for Solar PV in BC ......................................................................21 Bridges ...................................................................................................................22 Barriers ...................................................................................................................22 Models for PV ................................................................................................................23 Critical Success Factors .................................................................................................26 Methodology ......................................................................................................................27 Case Study Selection ......................................................................................................28 GETTING IT RIGHT 6 Analytical Framework ....................................................................................................28 Data Collection ...............................................................................................................30 Document Review ......................................................................................................31 Semi-Structured Interviews ........................................................................................31 Participants .................................................................................................................32 Potential Limitations and Biases ....................................................................................33 Summary of the Cases .......................................................................................................33 Commercially Led Approaches ......................................................................................34 Community Led Approaches .........................................................................................46 Comparison of Models .......................................................................................................88 Commercially Led Approaches ......................................................................................89 Advantages & Disadvantages .....................................................................................93 Community Led Approaches .........................................................................................95 Advantages & Disadvantages ...................................................................................109 Discussion ........................................................................................................................113 Conclusion & Recommendations ....................................................................................117 Works Cited .....................................................................................................................120 Appendix A - Draft Comparison of BC Hydro’s Distributed Generation Offers ...........130 Appendix B – Summary of the Case Studies ..................................................................131 Appendix C – SunMine Project Construction Budget ....................................................132 Appendix D – Letter of Invitation ..................................................................................133 GETTING IT RIGHT 7 List of Figures 1. Evolution of PV Business Models .................................................................................... 25 2. Predicted vs. Actual Electricity Output from 909 Pembroke ............................................ 53 3. Total Yield vs. Average Yield Expectations..................................................................... 87 4. Comparison of BC Hydro’s Distributed Generation Offers……………………………130 5. SunMine Construction Budget…………………………....……………………………132 GETTING IT RIGHT 8 List of Tables 1. Annual Sunshine Hours Per Year: Germany vs. British Columbia .................................. 16 2. BC Hydro 10 Year Rates Plan .......................................................................................... 19 3. Osterwalder’s Business Model Canvas ............................................................................. 29 4. Nelson Community Solar Garden Cost Estimate.............................................................. 66 5. Nelson Community Solar Garden Funding Sources ......................................................... 67 6. SunMine Project Funding ................................................................................................. 73 7. Different Financing and Purchasing Methods for Distributed PV Systems ..................... 88 8. Cross Case Comparison for Commercially Led Approaches: For-Profit Co-op vs. Non-Profit ......................................................................................................................... 90 9. Cross Case Comparison for Community Led Approaches – Key Resources ................... 95 10. Cross Case Comparison for Community Led Approaches – Key Activities