Valuing Distributed Generation

The Texas State Energy Conservation Office released a report in December 2008 titled, "Texas Renewable Energy Resource Assessment"(pdf version of full report). Below is an excerpt [bracketed by asterisks] from the "Summary and Conclusions" chapter, in the subsection "Valuing Distributed Generation" that remains relevant today. It describes the importance and strategy for valuing distributed generation.

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Valuing Distributed Generation

Small renewable energy generation systems located at the point of use capture the benefits of renewable energy while reducing utility costs. One study identified 19 key values of distributed generation, including values associated with energy generation, available capacity, transmission and distribution cost deferrals, reduction in system losses, reactive power, improved system resiliency, increased reliability, electricity price protection, and pollutant and greenhouse gas emission reductions. (Reference)

Examples of distributed renewable generation include rooftop solar water heaters and solar electric systems, small wind energy generating systems, and ground-source heat pumping systems. Most distributed generation systems produce enough energy to meet a portion of a home’s or business’ energy needs, reducing the amount of electricity purchased from the utility. Such reductions are equivalent to reductions in consumption derived from efficiency or conservation measures. Some technologies at times produce more than enough energy to meet a home’s or business’ energy needs, and during those periods export electricity to the grid. Capacity, exported energy and other key values provided by distributed generation should earn the generation owner compensation at a fair value. If efficient, transparent markets are unavailable or impractical to enable distributed generation owners to be compensated for the value they create, then that value should be made available.

Strategies for Valuing Distributed Generation

• Incentive programs. Policies and programs supporting adoption of distributed renewable generation, including the efficiency programs offered by Texas electric utilities, should recognize and account for the total value of distributed renewable energy delivered to the utility and its ratepayers.
• Interconnection policies. Policy makers should encourage adoptions of consistent interconnection requirements and processes by all Texas electric utilities.
• Net metering. All customers with distributed renewable generation should have the opportunity to earn a fair price for energy outflows without having to switch retail electric providers or renegotiate the terms of existing retail energy purchase contracts.

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(Updated Jan 26, 2016)
Other useful references:
Distributed Generation Ratemaking resources from 21st Century Power Partnership
Locational Benefits of Distributed Generation from the Clean Coalition

Shine On!

Plano Solar Advocate (LH)

Support the Texas Solar Energy Society Comments for Power to Choose Website

We are encouraging Texans to support the Texas Solar Energy Society (TXSES) filed comments for suggested enhancements to the Power to Choose website.  This can be accomplished using the "contact us" section of the Power to Choose website and will only take a few minutes.  This blog posting provides information about (1) the Texas Public Utility Commission (PUC) Project, (2) the comments filed by TXSES, and (3) a way for citizens to show support for the filed comments.

1. Texas Public Utility Commission Project # 43787
Project Number 43787 has been recently established to allow interested persons an opportunity to submit comments and suggestions for the Power to Choose website (www.powertochoose.org). Comments will be accepted through February 13, 2015.  To review the project documents and comments filed to date, click this link Project 43787. For those living closer to Austin, there will be a public forum on Dec 19, 2014.  See Notice of Public Forum for details.

2. The Texas Solar Energy Society Filed Comments
Plano Solar Advocates has a working group that is exploring the net metering challenges in our deregulated electricity market. For details and background, see Net Metering Working Group Status.

TXSES has filed comments that Plano Solar Advocates believe are positive step forward.  The three basic recommendations for website improvements in ascending order of complexity are:

A. Provide a search/filter alongside the other existing search/filters so that distributed renewable generation excess buyback type rate plans can be found and easily compared to other rate plans.  This should be a very simple addition as the existing Energy Facts Label content required for every plan as defined by §25.475 - Information Disclosures to Residential and Small Commercial Customers – already includes the question “Does REP purchase excess distributed renewable generation?”.

B. As an additional enhancement to aid the comparison of excess distributed renewable generation buyback plans, it is suggested that the displayed content be enhanced to include at what rate the excess generation is purchased.  Some example responses could be:

• “at same rate as the customer’s retail rate”,
• a specific rate, .e.g.  “X cents/kWh, or
• some other rate with supporting information.

C. Technology is now available to allow Texas electricity consumers the option to locally generate some or most of their electricity with rooftop solar PV. It is recommended that the PUC add an additional feature set to the “Power to Choose” website tool that will help consumers learn about local distributed renewable electricity produced by solar PV systems and help them find reputable solar installation companies in their respective zip codes – just as they help them find Retail Electric Providers!  Now that would be the “REAL” Power to Choose!

3. Show Support by Twitter or using the Power to Choose "Contact Us" form
While the process to file comments to a Texas PUC project can seem somewhat burdensome. If you have a twitter account, we recommend that you reply to this @PUCTX tweet with this message:

• I agree and support the filed comments by the Texas Solar Energy Society (43787-5) http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/43787_5_823660.PDF

Alternatively, Plano Solar Advocates is suggesting the use of the "contact us" section of the Power to Choose website using these steps:

A. Navigate to the Power to Choose website at www.powertochoose.org, look to the bottom of the page and select the "contact us" item.

B. complete the form as follows:

• Reason for Contact - select "Information"
• Email Address - provide your email address
• Subject - enter "Project 43787"
• Message - suggested content - "I agree and support the filed comments by the Texas Solar Energy Society for this project. I am submitting this message of support for an existing filed comment electronically to save all of us time, money, and paper."
• Complete the CAPTCHA and then submit.

The more people that provide input in support of these updates, the better the chances to improve this website tool.  According to ERCOT (The Electric Reliability Council of Texas) data, there are over 4,600 PV installations in the deregulated market in Texas as as of Sept 2014.  Let's see if we can get at least 4,600 inputs in support of these website improvements.

Thanks and Shine On!
Plano Solar Advocate (LH)

Overcoming Potential Regulatory (local) Barriers for Residential Solar Installations

So, YOU want to put Solar PV on YOUR property?  There may be some potential barriers related to local regulations of which you should be aware. And hopefully with this blog posting, we can provide some ways to help you overcome them if they get in your way.

Deployment of residential solar panels is still a relatively new phenomenon.  Therefore it is normal for a few people to question their aesthetics. (As solar advocates, this may seem hard to believe... but does sometimes happen...) However, aesthetics is a very subjective topic and as solar panels become a more normal occurrence, the aesthetic “concerns” will fade.  Remember when many neighborhoods required wood shingle roofs because it was thought that composition shingles were not aesthetically pleasing?  That didn’t last very long.

By the end of 2013, there were 470,000 total solar PV installations across the US. 155,000 of those installations were completed in 2013. Thus, the GROWTH has been recent and LARGE! The numbers in Texas are still relatively small, but the numbers are not insignificant. By the end of 2014, Texas will be nearing 10,000 total installations.

So let's identify and discuss four potential barriers and how to overcome them.  They include: 

1. HOA requirements and Texas HOA legislation (important to know and understand even if you don't live in a neighborhood with an HOA)
2. The HOA "street facing" restriction and how to overcome it
3. Recent city ordinance activity across North Texas and how to make sure it doesn't become a barrier
4. The one big HOA legislation loophole and how it may effect homeowners - in the short term and longer term

1. HOA requirements and Texas HOA legislation

• Texas HB-362, passed in the 82nd Legislative session (2011), limits HOAs and POAs from restricting solar devices outright. To comply with this law, homeowners that live in neighborhoods with HOAs must still follow the normal procedures for seeking improvements, including a written request or application to an appointed Architecture Review Committee or similar council.
• For additional information, please see our "Useful Links" page and scroll down to section titled "Policy & References related to HOAs (Home Owners Associations)".
• Even if you don't live in a neighborhood with an HOA, it is important to understand the basics of the legislation because similar restrictions might appear in local city/county ordinances.  (Learn more in item 3 below.)
• Also, there is still one particularly problematic loophole in the existing Texas HOA legislation that is a BIG problem in new, and not so new, neighborhood developments.  See item 4 to learn more!

2. Texas HOA legislation "street facing" clause and how to overcome it

• Some people might not install solar panels because their HOA does not "seem to" allow street facing panels. Since south facing panels provide the maximum annual production, it is important to install panels on the south facing roof even if it is street facing.  To learn how to overcome this "apparent" but "not a show stopper" restriction, see our blog posting - "Texas HOAs generally CANNOT block south street facing solar installations"

3. Recent city ordinance activity across North Texas and how to make sure it doesn't become a barrier

• Recently, the North Texas Renewable Energy Group has found that some city jurisdictions across North Texas have been researching and drafting solar ordinances for their communities. While this can be an opportunity to increase awareness and promote the use of solar energy, it can also sometimes be misapplied to create overly restrictive ordinances that actually derail the growth of solar. In these overly restrictive examples, it is usually the result of a misguided attempt to protect community "aesthetics" as was previously mentioned.
• You are encouraged to get involved with your local city or community and make sure that they have solar-friendly ordinances and processes. Below is a suggested simplified list of uniformly enforceable solar energy device related ordinances with a strong emphasis on safety.
• Solar energy devices are allowed. Along with energy efficiency investments, residents are encouraged to use available renewable clean energy technology to reduce their electric load on the electric utility grid. 
• Installed solar energy devices must meet all applicable safety requirements including electrical, fire, and building codes.  Simplified city permits are required, and the permitting process is in place to insure that applicable safety codes are met. 
• Solar energy devices that are to be interconnected to the electric grid must meet applicable interconnection requirements and approvals of the local electric utility.
• Ordinance restrictions for solar energy devices beyond those related to safety will be difficult to uniformly apply and enforce.  For example, most jurisdictions have found that trying to enforce “no street visibility” for solar panels for aesthetic reasons can be easily challenged.  For example, how can a jurisdiction allow some homeowners the consumer choice to install solar panels because their ideal roof surface for solar panels is not visible from the street, while prohibiting another homeowner from the consumer choice of installing solar panels because their idea roof surface is “visible from the street”.  Similarly, if aesthetics is such a significant factor, then why would it be acceptable for someone to have to tolerate solar panels if they lived behind someone with solar panels on the rear of their house, but not be acceptable if they lived across the street from someone that had solar panels installed on the front of their house.
• If your city or jurisdiction does have some type of "street facing" restrictions, you can submit a request to your city's Board of Adjustment or Variance.  Using the same information that you would use to show adverse solar production for an HOA, in most cases the board will grant you a waiver to install.  (If they don't, Plano Solar Advocates would be interested to help.)  It would also be a good idea to request the city revise their ordinance to remove street facing restrictions so that citizens and the city or not required to go through the extra time and expense of going through a variance process.

4. The one big HOA legislation loophole and how it may effect homeowners - in the short term and longer term

• As was mentioned in item 1 above, there is one particularly problematic loophole in the existing Texas HOA legislation that is a BIG problem in new neighborhood developments. The loophole indicates that during the development period, the developer may prohibit or restrict a property owner from installing a solar energy device.
• The good news is that some residential developers allow solar installations during the "development period". The BAD news is that many DO NOT.  And since this "development period" can last a few years, and even extend for decades if the developer is adding new additions, this can be a very big barrier to the expansion of residential solar and to net zero energy homes.
• We need everyone's help to get involved and help change/eliminate this loophole. To learn more see "Energy Star Homebuilders Block Installation of Solar PV in Plano Neighborhood".
• To learn about a way to spread the word on this barrier, see "Neighborhood Opportunities"
• GOOD NEWS UPDATE 5/23/2015: Due to 2015 state legislation SB-1626, this loophole by has been reduced to only apply for developments with fewer than 51 planned residential units (effective 9/1/2015).

If you know of any other local regulatory barriers, please let us know and provide comments and feedback to this posting.

Thanks and Shine On!
Plano Solar Advocate (LH)

Does Georgia have more solar resources than Texas?

Does Georgia have more solar resources than Texas?  Are Georgia officials going to outshine Texas solar resources?  Let's make sure that in Texas we are good stewards of our natural energy resources and do more to add solar energy into our electricity mix.
 

Tapping our untapped natural energy resource in Texas is a bipartisan opportunity. In Georgia, it appears they are taking steps to take advantage of this opportunity. Check out these recent articles, and then contact your Texas state legislators and Public Utility Commissioners and ask for their support for a vision for today and for our future generations that includes a strong contribution of distributed solar energy for electricity generation in Texas!  Like prudent financial diversification, energy source diversification is important, and the competition provided by consumers being able to generate some of their own electricity helps keep electric utilities competitive - maybe something they are not used to, but should be!
 

In Georgia, solar power finds a respected place in the GOP vocabulary (July 6, 2013)

• see the last paragraph - “I don’t know what gas prices will be in six years. But I know the sun will come up, and it’s free. It’s not owned by Georgia Power, it’s not owned by Bubba McDonald, it’s not owned by the Public Service Commission,” McDonald said. “It’s free. And to deprive people of the opportunity to take advantage of technology, to me, is wrong.”

Solar in your community – important Georgia Power ruling this week (July 9, 2013)

• see the section about water - Solar PV uses less water than any other energy resource.

Georgia PSC Calls for 525 MW of Solar (July 11, 2013)

• like "local" food initiatives, let's make sure Texas leverages "local" energy resources - distributed PV solar generation on people's homes and businesses takes advantage of local energy resources and reduces stresses and losses on our electric grid!
• The Georgia PSC voted in favor of adding 525 megawatts of solar energy to Georgia Power’s 20-year resources plan during an afternoon meeting. Of that new solar generation, 125 megawatts will be reserved for smaller projects.

Best Regards,
Plano Solar Energy Advocates (LH)

A Beautiful Day in the Neighborhood

A report released this week by the Solar Foundation titled "A Beautiful Day in the Neighborhood: Encouraging Solar Development through Community Association Policies and Processes" identifies three simple actions HOAs can take to bring more solar to their communities: Learn, Clarify, and Collaborate.  The report includes information about solar energy basics, benefits, and barriers. In regard to advancing community education on solar energy, it outlines a number of factors commonly impacted by potential HOA restrictions that can have significant negative impacts on system performance.  These include PV array size, array orientation, array title, and system shading.

An overview of the report is available at:
http://thesolarfoundation.org/blog/encouraging-solar-development-hoa-communities

And the actual report can be downloaded here:
http://thesolarfoundation.org/sites/thesolarfoundation.org/files/HOA%20Guide_Final.pdf

 

As residential solar deployment continues to grow, this report provides some great information on how HOAs and homeowners can collaborate for win-win solutions.

Additional information about solar installations and HOAs can be found in the sections titled "Texas Legislation/Policy" and "Policy & References related to HOAs (Home Owners Associations)" on our Useful Links page

Plano Solar Energy Advocate (LH)

Solar Energy for Texas!

(including a simple guide for contacting your Texas Legislator)

With a growing population and economy, our state has reached a critical point for securing our energy needs for the future, and Texas has taken steps to minimize the amount of disruption in the availability of energy with the explosive growth of gas drilling.  The Barnett Shale, which underlies 17 counties in North Texas, is thought by many to contain the largest producible reserves of onshore natural gas in the country.  Texas is also leading the nation in wind power generation, producing approximately 10% of the state’s needs from that renewable source of energy.

However, we have one of the greatest available sources of energy at our fingertips, and one that is becoming more critical in maintaining our electrical reliability in the years ahead: the SUN.  Our state has been identified as having the highest potential for both urban and rural utility-scale solar photovoltaic (PV) development, an amazing 154 gigawatt and 20,000 gigawatt power capacity, respectively.  And even more significant for individuals - it is estimated that there is 60 gigawatts of distributed renewable generation potential from residential and business rooftops! This is more compelling when one factors in how water-intensive our energy production is from non-renewable sources such as gas and oil.  Hydraulic fracturing of a typical deep shale natural gas or oil well requires 4.5 million gallons, or the amount that is consumed in New York City in 6 minutes.  As North Texas continues to face restrictions in the availability of water for the foreseeable future, taking steps now to increase the area’s PV footprint will pay off in tremendous dividends in the future.

To do this, we are encouraging all residents in the area to call on the Texas Public Utilities Commission (PUC) to fully implement the Renewable Portfolio Standard (RPS).  The RPS is a mandate from the Texas Legislature in 2005 to direct the PUC to develop 500 megawatt of non-wind renewable energy by 2015, which, to date, has not been addressed.  In 2012, Texas surpassed 10,000 megawatts of wind generated energy, while solar energy production in the state continues to lag, at just slightly above 100 megawatts.   Contrast Texas with Germany, which currently has a solar PV power capacity of 25 gigawatts (25,000 megawatts).  For a country that is half the size of the Lone Star State and only receives 1/4^th of the solar radiation we receive in North Texas, this is quite impressive.

This year, the Plano Solar Advocates are encouraging all in our community to reach out to our legislators to increase our solar investment in the state.  Talking points and an example letter to share with your legislator are available at the Texas Solar Energy Society website – see Solar and the 83rd Legislature (http://www.txses.org/solar/content/solar-and-83rd-legislature). A brief letter to your legislator will send a positive message that Texans support policies that encourage and expand the use of solar energy. Let’s all make 2013 the year that our area becomes noticed for its commitment to solar energy for our future.

The Sustainability Steward (JR)