Value of Solar Tim Harvey

VOS and AE’s Residential Solar Rate April 29, 2014

Filename, Version

1

Austin Energy Solar Program

2

Austin’s VoS Story

3

Is Austin Energy’s Residential Solar Rate Working?

Fairness

Utility Remains Whole

Fair Solar Compensation

No Non-Solar Customer Impact 4

VoS Inputs

• Loss Savings • Environmental • T&D Cost Savings • Gen. Capacity Value • Fuel, O&M, Guarantee 5

How is the rate affecting uptake? Austin Energy Customer Sited Solar 20000 18000 16000 14000 12000 10000

Since the Residential Solar Rates inception Austin Energy has lowered the rebate from $2.00/Watt to $1.50/W to $1.25/W, and still has a healthy uptake in the rebate

VOS Residential Solar Rate Implementation

8000 6000 4000 2000 0 FY04

FY05

FY06

FY07 Schools

Municipal

FY08

FY09

Commercial CBI

FY10 Commercial PBI

FY11

FY12

FY13

FY14

Residential

6

Angry Austin Mob

7

Nodal Price Weighted Value ($/kWh)

Model Adjustments Were Required

$0.20

Use 2011 w/ 3.5% escalation?

$0.15 $0.10 $0.05

$.073

Use 2012 w/ 1% escalation?

$.038

$0.00 2011

2021

2031

Fit data to imply escalation?

8

VoS Methodology Changed The VoS and the future price of natural gas generally trend with one another 14

$/MMBTU --------------------->

12

10

8

6

Actual Residential Expenditure

4

2

Year --------> 2011

2012

2013

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Justice cannot be for one side alone, but must be for both. ~ Eleanor Roosevelt

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City of Austin - Austin Energy Solar Energy Solutions 721 Barton Spring Rd. Austin, Texas 78704-1194 p. 512.482.5386 e. [email protected]

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