A presentation by John Farrell, Director of the Energy Self-Reliant States and Communities program at the Institute for Local Self-Reliance, to the Arizona Corporation Commission on Sept. 23, 2011.

1. Clean, Local Energy
The Value and Power of Distributed Solar in Arizona
John Farrell, Director
Energy Self-Reliant States and Communities program
jfarrell@ilsr.org
612.276.3456 x210
Presentation on Sept. 23, 2011

2. ILSR’s Unique Perspective
Yesterday Tomorrow
Centralized Power Clean, local power
Solar PV
power plant
Storage Storage
Transmission network
Storage
Storage
House
Local CHP plant
Distribution network House with
domestic CHP
Wind
power
Factory Commercial plant
building

3. Why Clean, Local Energy?
Enormous Potential
31 states could be electricity self-reliant

4. Why Clean, Local Energy?
Enormous Potential?
98%

5. Why Clean, Local Energy?
AZ Renewable Potential
Other
5%
Wind
40%
Rooftop Solar
49%
Hydro
1%
CHP
5%

6. Why Clean, Local Energy?
AZ Renewable Potential
Other Solar
51%
Rooftop Solar
49%

7. Value of Clean, Local Solar
• Cost for power
• Value of energy
• Value of jobs and economic
development
• Value of local ownership

8. Value of Clean, Local Solar
Price per kWh
Average Cost: U.S., 2011
Residential $6.40 27 cents
Other Solar
51%
Commercial $5.20 22 cents
Rooftop Solar
49%
Utility $3.75 16 cents

9. Value of Clean, Local Solar
Price per kWh
Best Costs: U.S. and World
Residential
Other Solar $4.22 18 cents
(L.A.)
51%
Rooftop Solar Commercial
$3.40 14 cents
49% (Germany)

10. Value of Clean, Local Solar
Price per kWh
Including federal tax credit
Average Cost: U.S., 2011
Residential $6.40 21 cents
Other Solar Commercial $5.20 17 cents
51% Utility $3.75 12 cents
Rooftop Solar
Best Costs: U.S. and World
49%
Residential
$4.22 14 cents
(L.A.)
Commercial
$3.40 11 cents
(Germany)

11. Value of Clean, Local Solar
Price per kWh
Including federal tax credit
and depreciation
Average Cost: U.S., 2011
Residential $6.40 16 cents
Other Solar Commercial $5.20 13 cents
51% Utility $3.75 9 cents
Rooftop Solar
Best Costs: U.S. and World
49%
Residential
$4.22 10 cents
(L.A.)
Commercial
$3.40 8 cents
(Germany)

12. Value of Clean, Local Solar
Price per kWh
Including federal tax credit
and depreciation
Average Price: Average Cost: U.S., 2011
Arizona, 2011 Residential $6.40 16 cents
Residential 11 cents Commercial $5.20 13 cents
Commercial 9 cents Utility $3.75 9 cents
Industrial 6 cents Best Costs: U.S. and World
Residential
$4.22 10 cents
(L.A.)
Commercial
$3.40 8 cents
(Germany)

13. Value of Clean, Local Solar
Energy
•avoided cost
$5 per Watt
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

14. Value of Clean, Local Solar
Grid Benefits
•avoided cost
•on-site/near demand
•lower transmission losses
•reduce dist. system stress
•hedge against fuel prices
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

15. Value of Clean, Local Solar
Social Benefits
•avoided cost
•on-site/near demand
•lower transmission losses
•reduce dist. system stress
•hedge against fuel prices
•prevent blackouts
•reduce pollution
•create jobs
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

16. Value of Clean, Local Solar
Example: Grid Benefits
4 cents per kWh
in addition to
electricity
Palo Alto, CA, municipal utility

17. Value of Clean, Local Solar
Jobs
Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

18. Value of Clean, Local Solar
Local Benefits
Local Ownership Boosts Impact of Renewables
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

19. Value of Clean, Local Solar
Public Support
No local ownership (–44)
50%
Local ownership (+33)
40% 41
36
30% 33
24
20% 21
10% 11 12
10
5
0% 2 3 2
very negative negative neutral positive very positive don’t know
Attitude towards increased use of local wind energy

20. Addressing Barriers to Clean, Local Solar
• Backup / intermittency
• Local grid capacity
• Economies of scale
• Policy

21. Barriers
Intermittency
Geographic Dispersion Lowers Solar Backup Costs
$0.04
$0.04
$0.03
$ per kWh
$0.02
$0.01
$0.01
$0.00
$0
1 location 5 locations 25 locations

22. Barriers
Distribution Grid
no bust
15%, or
• Utilities in California (and elsewhere)
generally agree that 15% distributed
generation on a local distribution
circuit is the threshold for any problems.
Democratizing the Electricity System (ILSR, 2011)

23. Barriers
Economies of Scale
$3.75

24. Barriers
State Policy

25. Barriers
State Policy

26. Barriers
State Policy
Feed-in Tariffs for Solar
•Vermont
•Rhode Island
•Indianapolis, IN
•Gainesville, FL
•San Antonio, TX

27. Barriers
Local Policy
17%
Solutions from Vote Solar’s Project:Permit

28. Thank you!
John Farrell
energyselfreliantstates.org
jfarrell@ilsr.org
johnffarrell
612-276-3456 x210