by jboullion | Aug 23, 2013 | Uncategorized
The FERC, GTM and SEIA predict that solar installations will double every year as prices continue to decline. Herman Trabish’s article for the GTM Newsletter below notes that solar’s continuing growth will require a reformulation of distributed generation rate structures.By Herman Trabish
If anybody doubts that federal energy regulators are aware of the rapidly changing electricity landscape, they should talk to Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission (FERC).
“Solar is growing so fast it is going to overtake everything,” Wellinghoff told GTM last week in a sideline conversation at the National Clean Energy Summit in Las Vegas.
If a single drop of water on the pitcher’s mound at Dodger Stadium is doubled every minute, Wellinghoff said, a person chained to the highest seat would be in danger of drowning in an hour.
“That’s what is happening in solar. It could double every two years,” he said.
Indeed, as GTM Research’s MJ Shiao recently pointed out, in the next 2 1/2 years the U.S. will double its entire cumulative capacity of distributed solar — repeating in the span of a few short years what it originally took four decades to deploy.
Geothermal, wind, and other resources will supplement solar, Wellinghoff said. “But at its present growth rate, solar will overtake wind in about ten years. It is going to be the dominant player. Everybody’s roof is out there.”
And those other resources have not seen declining prices like solar has. “Solar PV is $0.70 or $0.80 per watt to manufacture. Residential rooftop is $4 to $5 per watt. But they are going to drive that down to $2 and then to $1 per watt.”
Advanced storage technologies also promise lower costs, he said. “Once it is more cost-effective to build solar with storage than to build a combustion turbine or wind for power at night, that is ‘game over.’ At that point, it will be all about consumer-driven markets.”
Wellinghoff was a consumer advocate early in his career and has not changed sides. “Even though the FERC oversees wholesale markets, utilities, and other jurisdictional entities at the wholesale level, the consumer needs to be our major concern,” he said.
If FERC does not ensure the grid is ready to integrate the growing marketplace demand for distributed solar and other distributed resources, Wellinghoff said, “We are going to have problems with grid reliability and overall grid costs.”
Transmission infrastructure will be able to keep up with solar growth. The big changes will be at the distribution level where FERC has less influence, he explained. But the commission has been examining the costs and benefits of distributed generation (DG) in wholesale markets.
[READ MORE]
by jboullion | Aug 20, 2013 | Uncategorized
Paralleling Tom Content’s article for the Milwaukee Journal Sentinel, Mike Ivey’s story for the Capital Times offers his interpretation of the opinions and events influencing the PSC’s deliberation over whether or not to finalize the decision to suspend Focus on Energy incentives for wind and solar. Commenting in this article, RENEW’s Tyler Huebner notes that “Judging by the extraordinary outpouring of support for continuing
incentives to solar and small wind, it’s clear that the PSC’s move to
suspend incentives struck a nerve with the public”.
By Mike Ivey
Will Gov. Scott Walker’s Public Service Commission reverse course on renewable energy development in the state?
Clean
energy advocates hope so and are reporting a “massive outpouring” of
support for continuing incentives for residential solar or wind projects
in Wisconsin.
Under its Focus on Energy Program, the state is authorized to spend up to $10 million per year on renewable energy incentives.
But the PSC voted 2-1 in July to suspend the incentives through the end of 2013.
The
move stems from a previous directive from the commission to shift more
renewable energy incentives to biofuel projects — such as manure
digesters or waste wood burning — which some analysts say offer greater
energy savings.
A final ruling is expected in the coming weeks,
but since July, more than 630 comments were submitted to the PSC urging
the panel to maintain the incentives. The three-member commission has
two Walker appointees and one holdover from former Gov. Jim Doyle.
“Judging
by the extraordinary outpouring of support for continuing incentives to
solar and small wind, it’s clear that the PSC’s move to suspend
incentives struck a nerve with the public,” says Tyler Huebner,
executive director of RENEW Wisconsin.
[READ MORE]
by jboullion | Aug 16, 2013 | Uncategorized
In his article for the Quartz Daily Brief, Tim Fernholz debunks electrical utility claims that increased solar panel reliance to off-set electrical costs will lead to increased rates for all customers. While the “death spiral” of increased solar energy use leading to increased electrical rates is revealed to be little more than a panicked response from power companies, Fernholz identifies that a regulatory solution must be crafted to facilitate our transition to a solar powered future.
By Tim Fernholz
In the US, electrical utilities are in a charged battle—complete with negative political ads—against solar panel distributors over rules that both sides say could put them out of business. Consumers are caught in the middle.
A relatively new swathe of companies like Verengo, Sunrun, Sungevity and SolarCity have spent millions leasing solar equipment to homeowners and businesses. The cost of the lease is offset by savings on their electrical bill. Those savings come not just because of free power from the sun, but also through tax credits—and, most importantly today, because states allow those who have solar panels to sell any excess power back to the grid.
The more than 200,000 “distributed solar generators” in the US produce less than 1% of the country’s electricity. But that’s growing thanks to the falling cost of photovoltaics and financing from investors like Google. And this worries the big power companies, particularly two of the country’s largest, Pacific Gas & Electric and Southern California Edison.
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by jboullion | Aug 15, 2013 | Uncategorized
Tom Content’s article for the Milwaukee Journal Sentinel provides an informative summary of the events and motivations leading up the outpouring of comments submitted to the PSC on behalf of Wisconsin businesses in the wind and solar industry. Comments from RENEW, local solar installers and utility customers emphasize the negative economic repercussions that Wisconsin will experience if this decision is finalized.
By Tom Content
Supporters of renewable energy are weighing in urging the state Public Service Commission to reverse course and rethink a decision that suspended incentives for business and homeowners to install solar power systems.
The state Focus on Energy program announced last month that it would suspend the granting of renewable incentives for the second time in three years.
Program administrators cited a recent ruling by the PSC that gives preference to renewable energy projects that use biomass or biogas, which are more cost-effective than wind and solar projects. The PSC’s decision ties funding of any solar projects to biomass projects, which take longer to develop. Because of the longer lead times, solar funding will stop while more biomass projects get closer to being built, according to Focus.
The PSC was initially considering a final decision on the matter this week but that decision is now expected later this month. Instead, the agency asked for public comments, and the response was significant.
Renew Wisconsin, an advocacy group, says 630 people or businesses have weighed with comments on the matter,
“It’s really an impressive outpouring of support to continue these incentives,” said Tyler Huebner, who joined Renew Wisconsin as executive director earlier this year. “It’s clear that the PSC’s move to suspend incentives struck a nerve with the public.”
The incentives are provided by the state Focus on Energy program, an initiative that’s overseen by the state PSC as well as the state’s utilities. Focus on Energy was created to help utility customers receive incentives to make homes and businesses more energy-efficient and install renewable energy systems.
The PSC’s rationale is to ensure ratepayers’ dollars are spent wisely. Most of the Focus on Energy program’s budget is allocated toward energy efficiency projects, which deliver a stronger payback than renewable energy systems.
The move comes as utilities are also scaling back their commitment to customer-sited renewable generation. We Energies of Milwaukee in 2011 suspended a $6 million a year commitment to renewable energy, saying it was focusing its renewables spending on large projects like the state’s two biggest wind farms and a biomass power plant set to open this year in north-central Wisconsin.
[READ MORE]
by jboullion | Aug 13, 2013 | Uncategorized
Wisconsin Residents Urge PSC to Reconsider Funding Suspension
Immediate Release –
Between August 2nd
and yesterday, more than 630 individuals, businesses and organizations
submitted comments urging the Public Service Commission (PSC) not to
suspend Focus on Energy incentives for solar and small wind energy
systems. The comments were posted following a preliminary PSC decision
to suspend solar and small wind incentives for the duration of 2013.
“The
overwhelming majority of Wisconsin residents favor clean energy
development, and thousands of Wisconsin citizens and companies have
built renewable energy systems with assistance from Focus on Energy,”
said Tyler Huebner, Executive Director of RENEW Wisconsin. “Judging by
the extraordinary outpouring of support for continuing incentives to
solar and small wind, it’s clear that the PSC’s move to suspend
incentives struck a nerve with the public.”
At
issue is the PSC’s decision in late July to base the level of funds
available for solar and small wind on actual expenditures instead of
obligations, which had been the standard practice with Focus on Energy’s
renewable energy program since its inception in 2002.
“There
is no need to let administrative formulas create an uncertain,
unpredictable business environment for Wisconsin’s solar and small wind
markets. There are simpler and less disruptive ways of balancing
allocations among different renewable technologies, which would allow
customers to continue accessing these incentives and our small renewable
energy installation businesses to keep their doors open.“
“Though
Focus on Energy is authorized to spend up to $10 million per year to
help customers use more renewable energy, a suspension would ensure that
funding in 2013 will fall well short of the target. We urge the PSC to
take note of this show of support for clean energy and allow funding for
solar and small wind to continue.” Huebner said.
Update: RENEW Wisconsin was contacted by the Focus on Energy Rewards Program to notify RENEW that as of Wednesday, August 14, 2013, the PSC has not issued
the final order. The Residential Rewards Program will continue to
process new reservation applications for Solar Thermal and Solar
Photovoltaic until the order has been issued OR funds have been exhausted.
-END-
RENEW
Wisconsin is an independent, nonprofit 501(c)(3) organization that
leads and represents businesses, organizations, and individuals who seek
more clean renewable energy in Wisconsin. More information on RENEW’s
Web site at www.renewwisconsin.org.
