SD 1616/H 2852: Growing Massachusetts’ solar-powered economy

Legislative Briefing April 1, 2015

GROWING OUR SOLAR-POWERED ECONOMY Thank you for supporting progressive solar policy

SD 1616/H 2852 sponsors: Senator Jamie Eldridge, Representative Tom Calter and Representative

Senate co-sponsors: Sen. Michael Barrett, Sen. Jennifer Flanagan, Sen. Patricia Jehlen, Sen. Brian Joyce, and Sen. Anne Gobi

House co-sponsors: Rep. , Rep. , Rep. , Rep. Paul Brodeur, Rep. Antonia Cabral, Rep. James Cantwell, Rep. , Rep. Gailanne Cariddi, Rep. Edward Coppinger, Rep. , Rep. Daniel Donahue, Rep. , Rep. , Rep. , Rep. , Rep. Carmine Gentile, Rep. Jonathan Hecht, Rep. , Rep. , Rep. , Rep. Pete Kocot, Rep. Stephen Kulik, Rep. Paul McMurty, Rep. William Pignatelli, Rep. , Rep. Angelo Puppolo, Rep. David Rogers, Rep. Daniel Ryan, Rep. , Rep. , Rep. , Rep. , Rep. , Rep. Timothy Toomey, Rep. Chris Walsh

GROWING OUR SOLAR-POWERED ECONOMY Who is MassSolar?

MassSolar is a collaboration of Massachusetts solar businesses, solar owners, environmental advocates, community organizations and motivated citizens. We are dedicated to:

• Supporting the continued growth of the Massachusetts solar economy; • Modernizing the electricity grid; • Maximizing the potential of solar as a solution to climate change; and • Ensuring that everyone has fair and equitable access to solar power.

Some of our affiliated organizations and companies: GROWING OUR SOLAR-POWERED ECONOMY

SD 1616/H 2852: An Act relative to net metering, community shared solar and energy storage GROWING OUR SOLAR-POWERED ECONOMY Vocabulary

1. Net Metering- Allows solar owners to receive credit for solar generation. Key mechanism for encouraging development of solar.

2. Virtual Net Metering (VNM)- Allows solar owners to share net metering credits with more than one utility account. Enables equal access to solar for everyone.

3. Net Metering Caps- Statutory limit on the amount of net metering allowed in each utility territory, further divided into “public” and “private” caps, % cap translated into MW-limit based on peak demand.

4. Community Shared Solar (CSS)- A local solar project where people or businesses purchase net metering credits or a membership interest. Makes solar available to those that don’t own a sunny rooftop.

5. Federal Investment Tax Credit (ITC)- 30% tax credit for solar systems. Expires December 31, 2016 for residential solar, decreases to 10% for commercial solar.

6. Energy storage- Refers to a suite of technologies, such as batteries, that can store electricity for use at a later time.

GROWING OUR SOLAR-POWERED ECONOMY

How to keep our solar-powered economy growing

An Act relative to net metering, community shared solar and energy storage (SD 1616/H 2852) proposes a long-term framework for solar

1. Raises net metering caps to 1600 MW, exempts community shared solar and other small-medium solar projects from the net metering cap 2. Preserves virtual net metering in its current form 3. Removes key barrier to community shared solar 4. Establishes 20% by 2025 solar electricity goal 5. Enables energy storage

GROWING OUR SOLAR-POWERED ECONOMY

Why is SD 1616/H 2852 important?

1. Net metering caps must be raised because they arbitrarily limit solar growth

2. The Commonwealth needs a longer-term solar goal

3. Barriers prevent equitable access to solar

4. Energy storage will contribute to a 21st century grid that is more reliable, resilient and able to integrate increasing amounts of solar and other renewable energy

GROWING OUR SOLAR-POWERED ECONOMY

Why is SD 1616/H 2852 important?

1. Net metering caps must be raised because they arbitrarily limit solar growth

2. The Commonwealth needs a longer-term solar goal

3. Barriers prevent equitable access to solar

4. Energy storage will contribute to a 21st century grid that is more reliable, resilient and able to integrate increasing amounts of solar and other renewable energy

GROWING OUR SOLAR-POWERED ECONOMY

Why do we need to raise net metering caps now?

1. Net metering caps have already been hit in National Grid territory, which historically has represented about half of solar demand in Massachusetts

2. Current net metering caps prevent us from reaching the 1600 MW goal in a cost-effective and timely manner

3. To take full advantage of the federal Investment Tax Credit (ITC) before it expires at the end of 2016

GROWING OUR SOLAR-POWERED ECONOMY The urgent need to raise net metering caps

• National Grid net metering caps hit; almost half of PV market closed to new projects • Other net metering caps looming • Failure to raise the caps in 2015 will cause significant harm to the solar industry, its 12,000 member workforce and prospective solar customers SD 1616/H2852 would allow MA to reach the 1600 MW target in a timely and cost effective manner, and ensure that rooftop, community shared and low income solar projects can move forward GROWING OUR SOLAR-POWERED ECONOMY

Why is SD 1616/H 2852 important?

1. Net metering caps must be raised because they arbitrarily limit solar growth

2. The Commonwealth needs a longer-term solar goal

3. Barriers prevent equitable access to solar

4. Energy storage will contribute to a 21st century grid that is more reliable, resilient and able to integrate increasing amounts of solar and other renewable energy

GROWING OUR SOLAR-POWERED ECONOMY

Why should we establish a longer-term solar goal?

1. Solar is working for Massachusetts

2. Solar can help meet Global Warming Solutions Act emission reduction targets

GROWING OUR SOLAR-POWERED ECONOMY

Solar is Working for Massachusetts

Massachusetts is a national leader on solar thanks to its net metering, virtual net metering and solar incentive programs

• 4th largest amount of solar installed in U.S.

• 2nd largest solar employer in the nation

• 22,000+ solar systems installed

• 776 MW solar installed = 1.5% electricity or enough to power 119,000 homes

GROWING OUR SOLAR-POWERED ECONOMY Solar does more than keep the lights on

• Powers our economy: Every $ invested in solar creates a multiplier of economic benefits that would otherwise be exported outside our economy, $789 million invested in 2013.

• Creates jobs: Double digit job growth in the clean energy sector during the economic crisis, more than in any other industry in the Commonwealth.

• Expands the tax base: Solar on landfills and brownfields provides new source of tax revenue that boosts municipal budgets.

GROWING OUR SOLAR-POWERED ECONOMY

Solar does more than keep the lights on

• Lowers energy costs for everyone: Diversifies our energy portfolio and reduces the need to run more expensive power plants in sunny summer months. • Helps low income communities: Solar protects our most vulnerable populations from rising and volatile energy prices. • Heats homes and powers transportation: Solar coupled with an air source heat pump is the most cost effective way to heat a new home.

GROWING OUR SOLAR-POWERED ECONOMY

Meeting Global Warming Solutions Act targets

• Requires reduction in greenhouse gas (GHG) emissions of 25% by 2020 and 80% by 2050; current RPS framework only enables 44% emission reduction by 2050 • Solar is a zero emission source of renewable power; we need to install much more to achieve both targets • Renewables are reducing emissions globally so what we’re doing in Massachusetts matters

GROWING OUR SOLAR-POWERED ECONOMY Setting a longer-term solar target

SD 1616/H 2852 establishes a 20% by 2025 solar electricity goal

• Massachusetts can produce 2x as much electricity from solar than the state consumes

• Solar installed capacity more than doubled on average during 5 yrs following passage of the Green Communities Act

• Solar only needs to grow 25-30% annually to achieve 20% by 2025, but Net Metering and Solar Task Force we need a clear policy path to get modeled scenario there. GROWING OUR SOLAR-POWERED ECONOMY Setting a longer-term solar target

SD 1616/H 2852 establishes a 20% by 2025 solar electricity goal

• Massachusetts can produce 2x as much electricity from solar than the state consumes

• Solar installed capacity more than doubled on average during 5 yrs following passage of the Green Communities Act

• Solar only needs to grow 25-30% annually to achieve 20% by 2025, but 20% by 2025 scenario we need a clear policy path to get there. GROWING OUR SOLAR-POWERED ECONOMY

Why is SD 1616/H 2852 important?

1. Net metering caps must be raised because they arbitrarily limit solar growth

2. The Commonwealth needs a longer-term solar goal

3. Barriers prevent equitable access to solar

4. Energy storage will contribute to a 21st century grid that is more reliable, resilient and able to integrate increasing amounts of solar and other renewable energy

GROWING OUR SOLAR-POWERED ECONOMY

Equitable access to solar is essential

• Who are we concerned about having “equitable access” to solar? • 80% of residents and businesses don’t own a sunny rooftop • Low income and fixed income communities, mostly tenant population

• How do we ensure equitable access to solar? • First: Include everyone in the conversation • Second: Identify key barriers • Third: Address those barriers

GROWING OUR SOLAR-POWERED ECONOMY

How can we better enable equitable access to solar?

SD 1616/H 2852 enables access to solar in two key ways: 1. Preserves virtual net metering in its current form

- VNM is ESSENTIAL for community shared solar, multi-family and many low income solar projects 2. Exempts community shared solar projects from property taxes statewide - Community shared solar would enjoy the same status as residential rooftop systems, which are currently tax exempt

GROWING OUR SOLAR-POWERED ECONOMY

Why is SD 1616/H 2852 important?

1. Net metering caps must be raised because they arbitrarily limit solar growth

2. The Commonwealth needs a longer-term solar goal

3. Barriers prevent equitable access to solar

4. Energy storage will contribute to a 21st century grid that is more reliable, resilient and able to integrate increasing amounts of solar and other renewable energy

GROWING OUR SOLAR-POWERED ECONOMY Energy storage is coming and necessary

SD 1616/H 2852 directs the Department of Public Utilities to implement an energy storage program • Wind and solar paired with energy storage technologies is one component of a more modern grid • A diversified renewable portfolio plus energy storage can provide all of the electricity we need; providing greater grid stability; and reduce demand at peak times • Storage can be implemented grid level (e.g. large-scale) or project level storage (e.g. residential) • California, New York and Hawaii have already implemented energy storage programs • Another opportunity to expand our innovation economy and support local businesses: GROWING OUR SOLAR-POWERED ECONOMY

SD 1616/H 2852 keeps our solar-powered economy growing by:

1. Raising net metering caps to 1600 MW, exempting community shared solar and other small to medium solar projects from net metering caps 2. Preserving virtual net metering in its current form 3. Removing a key barrier to community shared solar 4. Establishing 20% by 2025 solar electricity goal 5. Enabling energy storage

GROWING OUR SOLAR-POWERED ECONOMY

Questions?