Tag Archives: Policy & Regulation

Santa Monica Mandates Rooftop Solar On New Buildings

San Francisco recently made headlines for establishing an ordinance requiring solar installations on new buildings, and now, yet another California city has passed similar legislation.

The Santa Monica City Council has approved an ordinance mandating rooftop solar systems on all new residential and commercial buildings in the city. And although San Francisco’s ordinance goes into effect in 2017, Santa Monica’s kicks off in fewer than 30 days, on May 26. Other cities in the Sunshine State that created such solar mandates include Sebastopol and Lancaster, which passed their ordinances in 2013.

According to the Santa Monica government, the ordinance capitalizes on market trends in the solar industry. With the cost of solar installations continuing to decrease, Santa Monica residents and developers will now generate renewable energy, improve the value of their property, and contribute to the city’s long-range goals for energy and climate mitigation, including reaching carbon neutrality by 2050.

Read full article from Solar Industry

 

San Francisco just became the first big US city to require solar panels on new buildings

By Biz Carson, Business Insider

San Francisco may be known for its fog, but the city wants to turn the sunny days it does get into power for its buildings.

The San Francisco Board of Supervisors on Tuesday unanimously passed legislation (PDF) that would require new construction that is shorter than 10 floors to install solar panels or solar water heaters on top of both new residential and commercial buildings.

According to California law, all new buildings with 10 floors or less must have at least 15% of their rooftops designated as solar ready — meaning not in the shade. San Francisco now requires those buildings to actually use it for solar panels.

The new rules also make San Francisco the first major US city to mandate solar panels on new construction, although other California towns like Lancaster and Sebastopol have instituted similar laws. The new rules don’t go into effect until January 1, 2017, after which any construction that falls under the state law to include solar-ready space will have to actually install it.

Read full article from Business Insider

Related Articles:
San Francisco Requires New Buildings To Install Solar Panels (NPR)
San Francisco Solar Map About To Get Way More Crowded With New Rooftop Law (CleanTechnica)

 

California’s Distributed Energy Future

GTM Research has established itself as the premier source of information on solar industry trends and developments in the United States. It’s instructive that from that perspective, they chose to organize a conference focusing on a single state, California.

We who participate in the solar industry here have recognized the state as a leader, but the less patronizing among us also recognize that the magnitude of this lead is only temporary. If solar is to realize its potential as one means of reducing environmental damage while reducing future customer utility costs, then other parts of the United States need to catch up (and as GTM’s latest data for 2015 shows, they are).

Nonetheless, as GTM Research Senior Vice President Shayle Kann observed in his opening keynote at GTM’s California Distributed Energy Future conference in San Francisco, California remains the epicenter of next generation distributed energy (DE) regulation and is at the forefront of the shift toward distributed energy in the U.S. And (I would add) what happens in California doesn’t always stay in California. Hence the conference to examine California’s transition to a distributed energy future and consider what’s working and what isn’t.

The discussions at the conference covered a variety of issues confronting the state. Here is an overview of the key themes coming out of the discussions, and the insights shared by the different speakers:

The strongest and most frequently recurring theme was that of the interaction of Distributed Energy Resources (DERs, essentially distributed solar PV) and the electrical grid. This issue has numerous dimensions, and subsequent “fireside chats” helped highlight some of these.

Appropriately the first discussion was with a Senior Vice President from Pacific Gas & Electric (PG&E), California’s largest investor-owned utility (IOU) and the utility with more connected PV capacity than any other in the United States. Issues were fairly raised: e.g., how should rates be structured to fairly compensate the value of Grid access received by the customer, how does PG&E envision an environment of growing Community Choice Aggregation (CCA) systems and how is the Grid managed for reliability. Unfortunately, the moderator for this session let the PG&E representative off with the stock, PR answers: “we have to make changes in our rate structures”, “they can work, note how long Marin (Clean Energy, 2010) and Sonoma (Clean Power, 2014) have been in service”, and “we need to build in robustness.”

Ah well, at least subsequent chats returned to DER issues in more depth. DERs can lower costs for Grid operators / managers; experiments were cited by both Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) involving combinations of storage and DERs. Time of Use (TOU) pricing is coming, and 150 studies worldwide on this issue indicate that customers like this. But there is just too little experience with California’s residential customers while the customers themselves have too little information on which to make decisions as to costs versus savings.

Questions were also raised about Grid planning, to which respondents appeared to agree that too much is moving to identify a “right” strategy, especially as there isn’t even agreement on how to weigh technical issues such as reliability against other social goals we “should” be pursuing. The underlying complexity raised by these superficially straightforward questions was well-highlighted.

Michael Picker, President of the California Public Utility Commission (CPUC) noted that despite all the issues the CPUC addresses, DE issues are of significant importance. CPUC needs to consider even the framework for its decision making processes going forward. A system designed to regulate railroads in the 1890’s may not provide the responsiveness and flexibility for regulating changes to utilities in a rapidly evolving technological, economic and social environment. The “adversarial” approach used in CPUC proceedings may not be the best approach—why is the current process more dependent on legal skills than on engineering skills? The desire is to move forward not too fast, not too slow in opening the market to competition while allowing utilities to remain viable business entities. These are issues that could keep one up at night.

Michael Picker (CPUC, left) and Shayle Kann (GTM, right) during their “Fireside Chat”

GTM California's Distributed Energy Future Conference

The second, albeit lesser, recurring theme I heard at the conference was that of CCA developments. Until this year, there have been only three of these organized in California: Marin (with subsequent geographic extensions) and Sonoma were cited above, and Lancaster Choice Energy was launched in 2015. San Francisco’s Clean Power SF, Silicon Valley Clean Energy and Peninsula Clean Energy (San Mateo County) are in the process of launching this year.

As Mark Ferron, CAISO Board of Governors, cited, in 5 years 60% of the state’s eligible population could potentially be served by CCA’s if all programs now in discussion came to completion in that time. He provided a link in later discussion which I repeat here for those who want to follow up on the tally he reported: climateprotection.tumblr.com/tagged/Community-Choice

CCA’s make solar available to those in multi-family dwellings or who own a home not situated with a solar-favorable orientation or location. Expansion of solar power to these customers is required if solar-based power is to expand. Yet as Michael Picker observed, CCA “forced collectivization is a coup against the traditional utility model, challenging utilities and eroding the role of the PUC.” We don’t know yet where this takes existing suppliers and industry participants.

The challenges of the new, evolving energy infrastructure are actively being addressed by the states of California and New York. Conferences such as this provide an excellent opportunity to reflect on the issues and the difficulty this transition poses for firms competing in the market, regulators and the state legislatures who will eventually need to rewrite the rules for structuring state energy markets.

Utilities look to reverse net metering decision

By Rob Nikolewski, The San Diego Union-Tribune

San Diego Gas and Electric and two other major California utilities Monday filed applications urging the California Public Utilities Commission to hold a rehearing to vacate or make “modifications” to its decision keeping retail rate net metering in place until 2019.

“We feel it’s in the best interest of our customers to re-look at this issue and consumer advocates actually agree, as they have taken similar action,” said SDG&E representative Amber Albrecht.

In January, in a tense 3-2 vote, the CPUC sided with solar backers over utilities that insist they are not trying to blunt the growth of solar power in California. Instead, utilities say the net metering system that pays rooftop solar customers for the excess electricity their systems send back to the grid is unfair to consumers who don’t have solar energy systems. Solar companies and their customers say the power their systems generate helps lower strain on the electrical grid and reduces the need to buy power during times of high demand.

The commission — in a ruling that ran more than 150 pages — agreed to keep tying credits to retail rates, rather than near wholesale rates that other states use. The CPUC said it will continue to re-evaluate the rules but the decision was widely viewed as a big win for solar, as other states such as Nevada have rolled back some solar incentives.

SDG&E filed its application for rehearing jointly with Southern California Edison, calling on the CPUC to make changes to its decision. Pacific Gas and Electric also filed paperwork Monday, the deadline for applications for a rehearing, looking to get the commission to vacate its ruling. The CPUC has 120 days to respond to the requests for a rehearing.

Read full article in the San Diego Union-Tribune

A Trifecta for Solar Energy and Distributed Generation

We all have good weeks and bad weeks. For proponents of Solar Energy (and all other inhabitants of our planet) this has been an historic week, with major achievements at the International, National and California-state levels. Setbacks will be inevitable, but the events of this week will have memorable and lasting impact.

The first and International achievement was the December 12 Agreement of 188 countries at the United Nations Conference on Climate Change in Paris to take measureable actions with the eventual goal of keeping global temperature rise to less than 2ᵒ Celsius (3.6ᵒ Fahrenheit) by 2050 compared with pre-industrial levels. As we have repeatedly been informed, this is the level estimated by numerous scientists to avoid the worst affects of atmospheric warming and ocean rise.

Though yet to be ratified (a process that starts in April 2016), the agreement commits those countries that do ratify the agreement to establish national emission targets and report on progress every 5 years. While the agreement calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century, lowering the target would (according to some scientists) move this goal forward to the 2030 – 2050 timeframe. Either way, implementation of this agreement puts pressure on countries to support low- and non-carbon energy sources, solar very much included, accelerating their deployment and continued improvements.

The second and national achievement has not been enacted as this is written, but is the tentative agreement by Republican and Democratic House party leaders incorporated into the Appropriations bill that would extend tax credits for solar and wind projects from the current end-2016 expiration date through 2021. The agreement was the result of a compromise where-in Democratic Representatives would support eliminating the ban on US oil exports in exchange for Republican support for the Tax Credit extension.

While the vote can still go awry, a senior analyst at GTM Research (who closely follows the Solar market and industry) commented “the extension to the federal ITC is without question a game-changer for U.S. solar’s growth trajectory. Between now and 2020, the U.S. solar market is poised to see a number of new geographies open up with a 30% ITC, within both distributed and utility-scale solar.”

Finally, the third and California state achievement was the December 15 proposed ruling by the California Public Utilities Commission (CPUC) to leave in place most of the charges and fees now in place between the state’s major investor-owned utilities (Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric) and customers who have installed residential and commercial PV systems. Though yet to be finalized (in January 2016), the proposed ruling leaves in place most of the terms that allow customers with PV systems to recoup their investments in a timely manner thereby increasing the desirability of these systems.

Challenges to PV-favorable net metering terms and (lack of) other fees have been raised in many states, and regulator decisions have been mixed. The proposed CPUC ruling is perhaps the strongest pushback by any state regulator to utility claims of the high costs distributed PV systems impose on other (non-PV owning) rate payers. While new costs are proposed, and some uncertainty is introduced by requiring PV-system owners to be placed on Time-of-Use rates (with unknown impact on their bills), the proposed ruling is seen as leaving the business environment favorable for continued expansion of distributed generation.

For now the sun shines on distributed generation and the growth of solar-sourced clean energy. Let us hope that all three events help realize solar’s potential contribution to our future energy mix for the sake of maintaining our habitable planet.

San Diego Vows to Move Entirely to Renewable Energy in 20 Years

By Matt Richtel, The New York Times

Last weekend, representatives of 195 countries reached a landmark accord in Paris to lower planet-warming greenhouse gas emissions. On Tuesday, local leaders in San Diego committed to making a city-size dent in the problem. With a unanimous City Council vote, San Diego, the country’s eighth-largest city, became the largest American municipality to transition to using 100 percent renewable energy, including wind and solar power.

In the wake of the Paris accord, environmental groups hailed the move as both substantive and symbolic. Other big cities, including New York and San Francisco, have said they intend to use more renewable energy, but San Diego is the first of them to make the pledge legally binding. Under the ordinance, it has committed to completing its transition and cutting its greenhouse gas emissions in half by 2035.

The steps to get there may include transferring some control of power management to the city from the local utility. Officials said they would also shift half of the city’s fleet to electric vehicles by 2020 and recycle 98 percent of the methane produced by sewage and water treatment plants. Many details have yet to be determined, including how the new power sources will be delivered and managed.

Under the Paris accord, nations offered general, nonbinding plans to reduce their carbon emissions. Officials in the United States envision reaching the nation’s goals mainly through higher fuel-economy standards for cars and a move to cleaner sources of electrical power, something states could help oversee. This is where the actions of a city like San Diego fit in. As the city moves to renewable energy, the State of California can begin to build its bank of carbon reductions and contribute to global goals.

Read full article in the New York Times

PG&E wants Marin Clean Energy customers to pay more for exit ticket

By Richard Halstead, Marin Independent Journal

The California Public Utilities Commission will rule this month on requests from Pacific Gas and Electric Co. that some say if granted could hinder the effort to boost renewable energy use in the state. PG&E is seeking permission to nearly double the monthly fee it levies on customers of Marin Clean Energy and other community choice electricity suppliers. The investor-owned utility is also proposing a change in net metering policy that would substantially reduce the financial incentive for installing residential solar power systems.

When a PG&E customer opts to buy electricity from another energy supplier, such as Marin Clean Energy or Sonoma Clean Power, the company is permitted to charge that customer an exit fee to compensate it for the power contracts it previously entered into to supply that customer’s electricity. The average Marin Clean Energy customer pays an exit fee of $6.70 per month. PG&E is requesting permission to nearly double the exit fee to about $13 for an average Marin Clean Energy customer. The increase would mean that, for the first time in several years, Marin Clean Energy customers would be paying more for their electricity than PG&E customers.

When PG&E loses a customer to another energy supplier, it sells the excess electricity that it purchased for that customer. The company might earn or lose money, depending on market conditions. So far, PG&E has stockpiled more than $1 billion from transactions in which it earned money. In conjunction with its request for a hike in the exit fee, PG&E initially asked the CPUC’s permission to absorb this money. Marin Clean Energy objected. The CPUC rejected Marin Clean Energy’s request that the money be used to offset the need for additional exit fee revenue and directed PG&E to submit an alternative proposal outlining its plans for the $1 billion next year.

Read full article in the Marin Independent Journal

At Paris climate talks, nations will look to California

By Sammy Roth, The Desert Sun

California has long led the world in tackling climate change. Now, Golden State leaders hope the rest of the world will follow their lead.

Negotiators from more than 190 countries will gather in Paris two weeks from Monday, in a last-ditch effort to strike a deal that averts catastrophic levels of global warming. Gov. Jerry Brown plans to lead a delegation of eight lawmakers, and they’ll be joined by former Gov. Arnold Schwarzenegger, billionaire climate activist Tom Steyer, and many other environmental advocates who want to see world leaders draw inspiration from California.

California isn’t a country, but for the purposes of Paris it might as well be. It’s the world’s eighth-largest economy, and the federal government often adopts the state’s ambitious environmental policies. Brown’s administration has worked with national and regional governments in Canada, Mexico, China and elsewhere on programs to slash carbon emissions. The governor has made it clear he wants California to play a prominent role in Paris. “The real source of climate action has to come from states and provinces,” Brown said earlier this year at a climate summit in Toronto. “This is a call to arms. We’re going to build up such a drumbeat that our national counterparts — they’re going to listen.”

When Brown and others arrive in Paris, they’ll have quite a story to tell. California now gets a quarter of its electricity from renewable sources like solar and wind, a figure expected to double by 2030. Californians use the same amount of energy today as they did in the 1970s, even as per-person energy use has spiked across most of the country. Policies to discourage gasoline consumption have led to cleaner fuels and helped put more than 150,000 electric vehicles on the road, a number that is growing quickly.

While California’s climate efforts are by no means perfect, world leaders can learn a lot from the state’s multi-pronged approach to global warming, policy and legal experts say. The key lesson, they say, is that the state has acted on climate without inflicting economic disaster. The state has outpaced the rest of the country in job growth and GDP growth since the height of the Great Recession, even as carbon pollution has fallen.

The Desert Sun interviewed nearly a dozen lawmakers, academics, activists and researchers about what California is doing to address climate change. Here’s a primer on what they think the nations of the world should — and shouldn’t — learn from the Golden State…[Read More]

Read full article in the Desert Sun

Why Rooftop Solar Advocates Are Upset About California’s Clean-Energy Law

By Ivan Penn, The Los Angeles Times

California’s aggressive push to increase renewable energy production comes with a catch for people with solar panels on the roof: You don’t count.

If a home or business has a rooftop solar system, most of the wattage isn’t included in the ambitious requirement to generate half of the state’s electricity from renewable sources such as solar and wind by 2030, part of legislation signed in October by Gov. Jerry Brown.

That means rooftop solar owners are missing out on a potentially lucrative subsidy that is paid to utilities and developers of big power projects. It also means that utility ratepayers could end up overpaying for clean electricity to meet the state’s benchmark because lawmakers, by excluding rooftop solar, left out the source of more than a third of the state’s solar power.

Owners of rooftop solar systems and their advocates aren’t happy about the policy…The rooftop solar industry and consumer advocates say opposition to including rooftop solar in California’s renewable energy mandate came from large developers that feared competition for subsidies as well as unions that were upset because rooftop solar installers typically aren’t members.

Read full article in the Los Angeles Times

Not just California: Solar Battles Raging Across U.S.

By Sammy Roth, The Desert Sun

California has more rooftop solar installations than any other state, and it isn’t particularly close. But the Golden State is far from the only place where the solar industry and utility companies are clashing over how much money solar customers should be allowed to save.

Officials in 24 states have recently changed or are debating changes to rate structures for solar customers, according to a report released by the N.C. Clean Energy Technology Center earlier this month. Many of those battles mirror the one taking place in California, where utilities like Southern California Edison say homes and businesses with solar panels need to pay more.

There’s a reason all these battles are happening now: As rooftop solar prices fall, the industry is growing more quickly than ever. That growth has reduced planet-warming carbon emissions, but it’s also thrown the utility industry into a panic about its long-term ability to make money, clean energy advocates say.

Read full article in the Desert Sun