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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 Paul Mark
Senate co-sponsors: Sen. Michael Barrett, Sen. Jennifer Flanagan, Sen. Patricia
Jehlen, Sen. Brian Joyce, and Sen. Anne Gobi
House co-sponsors: Rep. Cory Atkins, Rep. Christine Barber, Rep. Jennifer Benson,
Rep. Paul Brodeur, Rep. Antonia Cabral, Rep. James Cantwell, Rep. Evandro Carvalho,
Rep. Gailanne Cariddi, Rep. Edward Coppinger, Rep. Marjorie Decker, Rep. Daniel
Donahue, Rep. Lori Ehrlich, Rep. Sean Garballey, Rep. Denise Garlick, Rep. Colleen
Garry, Rep. Carmine Gentile, Rep. Jonathan Hecht, Rep. Kate Hogan, Rep. Mary Keefe,
Rep. Kay Khan, Rep. Pete Kocot, Rep. Stephen Kulik, Rep. Paul McMurty, Rep. William
Pignatelli, Rep. Denise Provost, Rep. Angelo Puppolo, Rep. David Rogers, Rep. Daniel
Ryan, Rep. Paul Schmid, Rep. John Scibak, Rep. Frank Smizik, Rep. Ellen Story, Rep.
Benjamin Swan, 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:
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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
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National Grid net metering caps hit;
almost half of PV market closed to new
projects
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Other net metering caps looming
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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
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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.
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Creates jobs: Double digit job growth in the clean
energy sector during the economic crisis, more
than in any other industry in the Commonwealth.
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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
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Lowers energy costs for everyone:
Diversifies our energy portfolio and
reduces the need to run more
expensive power plants in sunny
summer months.
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Helps low income communities:
Solar protects our most vulnerable
populations from rising and volatile
energy prices.
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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
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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
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Solar is a zero emission source of renewable power; we need to install much more to
achieve both targets
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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
we need a clear policy path to get
there.
Net Metering and Solar Task Force
modeled scenario
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
we need a clear policy path to get
there.
20% by 2025 scenario
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
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Who are we concerned about having “equitable access” to solar?
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80% of residents and businesses don’t own a sunny rooftop
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Low income and fixed income communities, mostly tenant population
How do we ensure equitable access to
solar?
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First: Include everyone in the
conversation
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Second: Identify key barriers
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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
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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
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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
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Wind and solar paired with energy storage technologies is one component of a more
modern grid
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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
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Storage can be implemented grid level (e.g. large-scale) or project level storage (e.g.
residential)
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California, New York and Hawaii have already implemented energy storage
programs
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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?