MARCH 2010 SOLAR ANN ARBOR A PLAN FOR ACTION ACKNOWLDGEMENTS Funding for this project was provided by the U.S. Department of Energy. This Solar Plan was written in 2009, and published in March 2010 by Clean Energy Coalition authors Lisa Dugdale, Robyn Skodzinsky, and Greg Vendena. Additional writing and research was completed by Clean Energy Coalition volunteers Anika Fassia, Parvathi Krishna Kumar, and Matt Miller. Cover design was done by Invisible Engines. ABOUT THE U.S. DEPARTMENT OF ENERGY’S SOLAR AMERICA CITIES PARTNERSHIP The U.S. Department of Energy Solar America Cities partnership supports 25 U.S. cities com- mitted to making solar a mainstream energy source. DOE provides financial and technical as- sistance to expand innovative efforts to accelerate the adoption of solar energy technolo- gies. Cities, the nation’s centers of electricity consumption, are uniquely positioned to re- duce global climate change, strengthen America’s energy independence, and improve air qua- lity by converting to solar energy sources. From installing solar on city facilities to up- dating zoning codes and permitting processes to providing financial incentives, Solar America Cities demonstrate comprehensive, city-wide approaches that encourage and facili- tate solar as a viable energy solution for residents and businesses. Visit Solar America cities on- line at www.solaramericacities.energy.gov. ABOUT THE ANN ARBOR SOLAR CITIES PARTNERSHIP The Ann Arbor Solar Cities Partnership (SCP) is an extensive collaboration between nearly two- dozen organizations, formed to implement the Solar America Cities project. Partners include the City of Ann Arbor Energy Office, Clean Energy Coalition, Great Lakes Renewable Energy Associa- tion, Ann Arbor Hands-On Museum, Ann Arbor Office of Community Development, City of Ann Arbor Office of Emergency Management, University of Michigan’s Memorial Phoenix Energy Institute, NextEnergy, Ann Arbor Downtown Development Authority, Ann Arbor District Library, Pfizer, Ecology Center, Ann Arbor Energy Commission, Washtenaw County Government, DTE Energy, State of Michigan Energy Office, Michigan Economic Development Corporation, Michi- gan Department of Environmental Quality, Michigan Governor Jennifer Granholm, United Solar Ovonics, and the University of Michigan Taubman College of Architecture & Urban Planning. TABLE OF CONTENTS PART I: SOLAR PLAN & RECOMMENDATIONS EXECUTIVE SUMMARY ....................................................................................................................... v 1. INTRODUCTION 1.1 About this Plan ......................................................................................................................... 2 1.2 About the Solar America Initiative ............................................................................................ 2 2. SOLAR ENERGY: BENEFITS AND BARRIERS 2.1 Benefits of Solar Energy ........................................................................................................... 6 2.2 Barriers to Growing Solar ........................................................................................................ 9 3. THE CITY OF ANN ARBOR 3.1 Energy Profile .......................................................................................................................... 14 3.2 Energy Related Programs and Activities ................................................................................. 15 4. BEST PRACTICE RESEARCH 4.1 International Best Practices .................................................................................................... 24 4.2 Domestic: Rules, Regulations, and Policies ............................................................................. 26 4.3 Domestic: Financial Incentives ................................................................................................ 34 4.4 Domestic: Training, Education, and Research .......................................................................... 37 4.5 Domestic: Outreach and Marketing ......................................................................................... 40 5. RECOMMENDED STRATEGIES AND INCENTIVES FOR ANN ARBOR Recommendation 1: Commit to a Solar Plan Implementation Process .......................................... 44 Recommendation 2: Design Municipal Solar Financial Incentives ................................................ 48 Recommendation 3: Simplify Solar Permitting ............................................................................. 49 Recommendation 4: Advocate for State-Level Policy Changes ..................................................... 50 Recommendation 5: Integrate Solar into City Infrastructure & Culture ......................................... 51 Recommendation 6: Introduce Solar Access Laws & Robust Building Energy Codes .................... 52 Recommendation 7: Create Solar Outreach Campaign ................................................................. 53 Recommendation 8: Support Solar Workforce Development & Green Jobs .................................. 54 PART II: SUPPORTING INFORMATION 6. NATIONAL AND STATE ENERGY TRENDS 6.1 Energy Use and Policy in the United States .............................................................................. 58 6.2 Solar Resource Potential ........................................................................................................ 60 6.3 Energy Use and Policy in Michigan .......................................................................................... 62 6.4 Energy Prices ........................................................................................................................... 63 6.5 Solar Energy in the United States ............................................................................................ 63 6.6 Solar Energy in Michigan ......................................................................................................... 65 7. SOLAR TECHNOLOGY OVERVIEW 7.1 Passive Solar and Daylight ....................................................................................................... 68 7.2 Solar Thermal .......................................................................................................................... 68 7.3 Solar Photovoltaic Systems ..................................................................................................... 70 7.4 Concentrating Solar Power ...................................................................................................... 71 7.5 Other Solar Products & Strategies ........................................................................................... 71 7.6 Solar Site Assessment ............................................................................................................. 73 7.7 Modeling and Economic Analysis ............................................................................................ 73 7.8 System Metering and Data Acquisition .................................................................................... 73 7.9 Environmental and Social Impacts of Solar ............................................................................. 74 8. FEDERAL AND STATE RESOURCES AND INCENTIVES 8.1 Federal ..................................................................................................................................... 76 8.2 State ........................................................................................................................................ 76 8.3 Utility ....................................................................................................................................... 77 8.4 Example Incentive Calculation ................................................................................................. 77 APPENDICES A: Sample Statutes, Ordinances, RFP and other language ............................................................ 80 B: Local Resource Directory ........................................................................................................... 91 C: Reference Codes and Standards for PV and Solar Thermal ....................................................... 95 D: Summary of Michigan Interconnection Standard ...................................................................... 97 E: List of Financial Incentive Priorities ........................................................................................... 98 NOTES Part 1 ............................................................................................................................................. 99 Part 2 ............................................................................................................................................. 100 EXECUTIVE SUMMARY Goals and Objectives Benefits of and Barriers to Solar The Ann Arbor Solar Plan will build on the success of Understanding the benefits of using solar energy and the Ann Arbor Energy Plan and Mayor Hieftje’s Green barriers to its widespread adoption can guide policy Energy Challenge to prepare Ann Arbor for a sustain- and decision makers in focusing solar education and able energy future. Through implementing this plan, policy changes to be most effective. The benefits Ann Arbor will serve as a model for other communi- described in this Plan include: ties looking to solar energy as an answer to rising en- • Environmental Benefits ergy costs, unstable energy supplies, stagnating local • Public Health economies, and the negative environmental impacts of nonrenewable energy