Barde USC Final Presentation
SEPA Utility Solar Conference – April 2015
Spending Our Low- Carbon Budget Wisely Karsten Barde National Grid USA – Customer Strategy & Environmental
International energy company serving electric & gas customers in the US and UK (7 million in MA, NY, & RI; 11 million in UK)
http://commonwealthmagazine.org/environment/the-solar-disconnect/
https://www.energysage.com/
https://www.energysage.com/
2014 Levelized Cost of Energy (LCOE) $/MWh - Lazard
MA Summer 2013 Commodity Cost: 7.25c/kwh
Notes: Utility-scale solar assumes 10 MW system in high insolation jurisdiction (e.g., Southwest U.S.). Figures above do not reflect tax incentives.
MA Winter 2014-15 Commodity Cost: 16.27c/kwh
http://www.lazard.com/PDF/Levelized%20Cost%20of%20Energy%20-%20Version%208.0.pdf http://www.mass.gov/eea/docs/dpu/orders/dpu-15-40-basic-service-noi.pdf
80% GHG reductions by 2050 Massachusetts Law
Rhode Island Law
National Grid Company Policy
Notes: NGCC = Natural Gas Combined Cycle. LCOE reflects tax incentives. Carbon abatement cost estimate does not. http://www.lazard.com/PDF/Levelized%20Cost%20of%20Energy%20-%20Version%208.0.pdf
US Median Household Income
$53,891
“Half of Americans Say Solar Is Important, But Only 6% Say They’ll Buy PV Today”
http://www.masslive.com/news/index.ssf/2013/11/thanksgiving_in_western_massac.html http://money.cnn.com/2014/08/20/news/economy/median-income/ Income distribution from http://visualizingeconomics.com/blog/2006/11/05/2005-us-income-distribution SolarCity & CleanEdge Survey, cited in GTM: http://www.greentechmedia.com/articles/read/half-of-americans-see-solar-power-as-key-to-energy-future
Safety Reliability & Quality Information Convenience Savings Comfort Control Identity Security Community Environment
Simple, convenient solutions
Optimal defaults & choice architecture
Opt-out: High participation
“Curator” of Customer Solar Options to Maximize Long-Term Cost-Effective Solar Deployment
Rooftop Solar Options Balanced Rate Structures & Utility Ownership or Sponsorship
Utility-Sponsored Community Solar “Investor/Owner” or “PPA Contract” with Local or Regional Project; Utility- or 3rd-Party Owned
Utility Solar “Rate” Annual Subscription; Utility-Owned or Procured, or 3rd Party-Supplied Large-Scale RPS Solar
A Few Variables to Consider in Your Solution Design
• Roof Availability
• Ability to Finance • Upfront Cost
• Ongoing Cost • Term • Commitment (Exit/Resale) • Proximity to Project • Additionality • Choice of Provider
Your Turn • What’s the best way to “curate” your customers’ solar supply choices? • What kinds of new solar solutions might appeal to your customers, and why? • Can attractive offerings be structured with no cross-subsidy embedded in their pricing?
Spending Our Low- Carbon Budget Wisely Karsten Barde National Grid USA – Customer Strategy & Environmental
International energy company serving electric & gas customers in the US and UK (7 million in MA, NY, & RI; 11 million in UK)
http://commonwealthmagazine.org/environment/the-solar-disconnect/
https://www.energysage.com/
https://www.energysage.com/
2014 Levelized Cost of Energy (LCOE) $/MWh - Lazard
MA Summer 2013 Commodity Cost: 7.25c/kwh
Notes: Utility-scale solar assumes 10 MW system in high insolation jurisdiction (e.g., Southwest U.S.). Figures above do not reflect tax incentives.
MA Winter 2014-15 Commodity Cost: 16.27c/kwh
http://www.lazard.com/PDF/Levelized%20Cost%20of%20Energy%20-%20Version%208.0.pdf http://www.mass.gov/eea/docs/dpu/orders/dpu-15-40-basic-service-noi.pdf
80% GHG reductions by 2050 Massachusetts Law
Rhode Island Law
National Grid Company Policy
Notes: NGCC = Natural Gas Combined Cycle. LCOE reflects tax incentives. Carbon abatement cost estimate does not. http://www.lazard.com/PDF/Levelized%20Cost%20of%20Energy%20-%20Version%208.0.pdf
US Median Household Income
$53,891
“Half of Americans Say Solar Is Important, But Only 6% Say They’ll Buy PV Today”
http://www.masslive.com/news/index.ssf/2013/11/thanksgiving_in_western_massac.html http://money.cnn.com/2014/08/20/news/economy/median-income/ Income distribution from http://visualizingeconomics.com/blog/2006/11/05/2005-us-income-distribution SolarCity & CleanEdge Survey, cited in GTM: http://www.greentechmedia.com/articles/read/half-of-americans-see-solar-power-as-key-to-energy-future
Safety Reliability & Quality Information Convenience Savings Comfort Control Identity Security Community Environment
Simple, convenient solutions
Optimal defaults & choice architecture
Opt-out: High participation
“Curator” of Customer Solar Options to Maximize Long-Term Cost-Effective Solar Deployment
Rooftop Solar Options Balanced Rate Structures & Utility Ownership or Sponsorship
Utility-Sponsored Community Solar “Investor/Owner” or “PPA Contract” with Local or Regional Project; Utility- or 3rd-Party Owned
Utility Solar “Rate” Annual Subscription; Utility-Owned or Procured, or 3rd Party-Supplied Large-Scale RPS Solar
A Few Variables to Consider in Your Solution Design
• Roof Availability
• Ability to Finance • Upfront Cost
• Ongoing Cost • Term • Commitment (Exit/Resale) • Proximity to Project • Additionality • Choice of Provider
Your Turn • What’s the best way to “curate” your customers’ solar supply choices? • What kinds of new solar solutions might appeal to your customers, and why? • Can attractive offerings be structured with no cross-subsidy embedded in their pricing?
