The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/severe-volatility-illustrates-risks-using-solar-recs/
This is a little taste of a project I’m doing comparing solar renewable energy credits (SRECs) with a state solar mandate to Clean Contracts (a.k.a. feed-in tariffs). One metric for comparison is the risk created by market uncertainty, and there’s no better illustration of the risk and uncertainty in SREC markets that this chart. In the past 9 months, SREC prices have tumbled in nearly every market in the U.S.
The cause is the same everywhere – the solar industry met the state mandate, cratering demand for SRECs. Prices won’t recover until the market slows down.
From an Econ 101 standpoint, SRECs beautifully price market demand and are a powerful indicator of when the state-created market is saturated. From an industry standpoint, however, they represent a real roller coaster. It’s hard to be a solar installer when your entire market dries up for 9 months waiting for next year’s quota to roll in (in NJ and PA, legislation is being considered to accelerate the state mandate to solve the problem).
Clean contracts (if uncapped) solve the problem, because the market doesn’t bust (of course, a solar mandate that can keep ahead of supply would also work).
It’s a serious question for policy makers to consider when creating a market for solar. Is an SREC market that depends on a state solar mandate any more “market-based” than Clean contracts that simply provide a standard offer to solar developers? And if the latter means cheaper solar for ratepayers, then shouldn’t that trump considerations of “markets”?
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/pace-financing-101-and-status-update/
A short slide deck providing a “101″ on Property Assessed Clean Energy (PACE) financing, a status update on the legal challenges, and some of the policy design issues we explored in our report on Municipal Financing Lessons Learned.
Earlier this year, it looked as if prospects were bleak for PACE in 2011, with some progress on Commercial PACE and a new director at advocacy organization PACENOW, but agonizingly slow steps on federal legislation and litigation.
Today’s ruling means FHFA has to start over, but it does not overturn the agency’s 2010 advisory against PACE, leaving the program in limbo until the formal rulemaking is complete. Here’s hoping PACE finally wins through, a great tool for saving energy and creating jobs at the local level.
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/clean-local-power-kentucky/
In August 2011, ILSR Senior Researcher John Farrell gave this presentation to a group of rural utilities and environmental organizations in Kentucky. The slides illustrate the enormous renewable energy potential in Kentucky and the cost-effectiveness of clean, local power in meeting the state’s electricity and economic needs. Clean Local Power for Kentucky View more presentations… Continue reading
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/why-market-based-poor-criteria-good-solar-policy/
Updated 8/26/11 and 9/1/11
Many renewable energy advocates argue that the market for solar renewable energy credits (SRECs) is a more cost-effective tool for incentivizing solar power than a feed-in tariff (or CLEAN contract) set in a regulatory proceeding.
This chart illustrates the installed cost of solar in New Jersey from 2006 to 2011 (as reported by the National Renewable Energy Laboratory in Tracking the Sun III and converted to levelized cost) in green, the New Jersey SREC spot market price in red, and the German feed-in tariff price (constant exchange rate, adjusted for NJ solar insolation) for rooftop solar projects 30 kilowatts and smaller in blue. (Update 9/1: the previous chart showing solar cost in $ per Watt is here).
Does a “market-based” policy do a better job of matching the actual cost of solar?
Update 8/26: I should add that the German feed-in tariff is the only source of revenue for solar projects, whereas the SREC in New Jersey comes in addition to the federal 30% tax credit and accelerated depreciation (and net metering). Since the two federal incentives (and net metering values) have not changed, the fact that the SREC value is rising against the tide of falling solar prices is even more absurd.
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/ilsr-releases-new-report-learning-burlington-telecom/
Burlington Telecom, a publicly owned broadband network in Vermont, transitioned from a hopeful star of the community broadband movement to the first example used by those opposed to government investing in the infrastructure of the 21st century. Continue reading
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/learning-burlington-telecom-some-lessons-community-networks/
In little more than a year, Burlington Telecom went from being a hopeful star of the community fiber network movement to an albatross around its neck. The controversies surrounding it have encouraged cable and telephone companies to use it as Exhibit A in their case against communities going into the telecommunications business. However, most of those criticizing Burlington Telecom have very little understanding of what went wrong and how it happened. Examining what actually happened helps to explain how these problems may be avoided, as the vast majority of existing community networks have already done.
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/wind-power-bigger-better/
Update October 2012: The 2011 Wind Technologies Market Report shows weak, but consistent economies of scale in wind power projects. It seems obvious: every extra turbine in a wind farm comes at a lower incremental cost, making the biggest wind power projects the most cost effective per kilowatt of capacity. If you bet $20 on… Continue reading
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