In March 2014, Minnesota became the first state to adopt a “value of solar” policy. It may fundamentally change the financial relationship between electric utilities and their energy-producing customers. It may also serve as a precedent for setting a transparent, market-based price for solar energy. This presentation explains the origins of value of solar, the compromises made to get the policy adopted in Minnesota, and the potential impact on utilities and solar energy producers.

1. MINNESOTA’S VALUE OF SOLAR
C A N A N O R T H E R N S TA T E ’ S N E W S O L A R P O L I C Y D E F U S E
D I S T R I B U T E D G E N E R A T I O N B A T T L E S ?
John Farrell
Director of Democratic Energy
May 29, 2014

2. VA L U E O F S O L A R

3. C O N C E P T
A transparent and market-
based price for solar energy

4. X

5. X

6. X

7. X

8. $0.00
$0.03
$0.06
$0.08
$0.11
$0.14
Brown energy replacement
Avoided transmission losses
Environmental
Avoided transmission access
Local capacity value
(per kWh)
Minnesota
Value of Solar
???
Add your guess
in the webinar chat room

9. $0.00
$0.03
$0.06
$0.08
$0.11
$0.14
Brown energy replacement
Avoided transmission losses
Environmental
Avoided transmission access
Local capacity value
(per kWh)
Minnesota
Value of SolarUtilities value DG
14.5¢*
*preliminary

10. N E T M E T E R I N G
C O M PA R I S O N T O

11. N E T M E T E R I N G VA L U E O F S O L A R
C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S
C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y
R AT E
C R E D I T VA L U E = VA L U E O F S O L A R R AT E
C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L
P R I C E
VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R
C O N T R A C T
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L
C O N S U M P T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N PA I D AT
R E TA I L R AT E ( F O R < 4 0 K W ) O R
AV O I D E D C O S T R AT E ( F O R < 1 M W )
N E T E X C E S S G E N E R AT I O N F O R F E I T T O
U T I L I T Y
A S I M P L E M E N T E D I N M I N N E S O TA

12. N E T M E T E R I N G VA L U E O F S O L A R
C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S
C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y
R AT E
C R E D I T VA L U E = VA L U E O F S O L A R R AT E
C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L
P R I C E
VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R
C O N T R A C T
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L
C O N S U M P T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N PA I D AT
R E TA I L R AT E ( F O R < 4 0 K W ) O R
AV O I D E D C O S T R AT E ( F O R < 1 M W )
N E T E X C E S S G E N E R AT I O N F O R F E I T T O
U T I L I T Y
A S I M P L E M E N T E D I N M I N N E S O TA

13. N E T M E T E R I N G VA L U E O F S O L A R
C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S
C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y
R AT E
C R E D I T VA L U E = VA L U E O F S O L A R R AT E
C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L
P R I C E
VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R
C O N T R A C T
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L
C O N S U M P T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F O N - S I T E A N N U A L C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N PA I D AT
R E TA I L R AT E ( F O R < 4 0 K W ) O R
AV O I D E D C O S T R AT E ( F O R < 1 M W )
N E T E X C E S S G E N E R AT I O N F O R F E I T T O
U T I L I T Y
A S I M P L E M E N T E D I N M I N N E S O TA

14. N E T M E T E R I N G VA L U E O F S O L A R
C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S
C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y
R AT E
C R E D I T VA L U E = VA L U E O F S O L A R R AT E
C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L
P R I C E
VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R
C O N T R A C T
SOLAR PRODUCTION CANNOT EXCEED 120%
OF ON-SITE ANNUAL CONSUMPTION
SOLAR PRODUCTION CANNOT EXCEED 120%
OF ON-SITE ANNUAL CONSUMPTION
N E T E X C E S S G E N E R AT I O N PA I D AT
R E TA I L R AT E ( F O R < 4 0 K W ) O R
AV O I D E D C O S T R AT E ( F O R < 1 M W )
N E T E X C E S S G E N E R AT I O N F O R F E I T T O
U T I L I T Y
A S I M P L E M E N T E D I N M I N N E S O TA

15. N E T M E T E R I N G VA L U E O F S O L A R
C U S T O M E R E A R N S B I L L C R E D I T S C U S T O M E R E A R N S B I L L C R E D I T S
C R E D I T VA L U E = R E TA I L E L E C T R I C I T Y
R AT E
C R E D I T VA L U E = VA L U E O F S O L A R R AT E
C R E D I T VA L U E F L U C T U AT E S W I T H R E TA I L
P R I C E
VA L U E O F S O L A R L O C K E D I N O N 2 5 - Y E A R
C O N T R A C T
SOLAR PRODUCTION CANNOT EXCEED 120%
OF ON-SITE ANNUAL CONSUMPTION
SOLAR PRODUCTION CANNOT EXCEED 120%
OF ON-SITE ANNUAL CONSUMPTION
N E T E X C E S S G E N E R AT I O N PA I D AT
R E TA I L R AT E ( F O R < 4 0 K W ) O R
AV O I D E D C O S T R AT E ( F O R < 1 M W )
N E T E X C E S S G E N E R AT I O N F O R F E I T T O
U T I L I T Y ?
A S I M P L E M E N T E D I N M I N N E S O TA

16. W H AT I S
V S .
W H AT M I G H T H AV E B E E N

17. A D O P T E D P R O P O S E D
C U S T O M E R E A R N S B I L L C R E D I T S
C U S T O M E R I S PA I D F O R S O L A R E N E R G Y
I N A S E PA R AT E T R A N S A C T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F A N N U A L O N - S I T E
C O N S U M P T I O N
S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y
O N S I T E C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N I S F O R F E I T
T O U T I L I T Y
C U S T O M E R I S PA I D F O R A L L S O L A R
E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F
O N - S I T E E L E C T R I C I T Y U S E
U T I L I T Y C H O O S E S W H E T H E R T O A D O P T
VA L U E O F S O L A R O R K E E P N E T
M E T E R I N G
U T I L I T Y M U S T O F F E R VA L U E O F S O L A R ,
B U T C U S T O M E R M AY C H O O S E B E T W E E N
I T A N D N E T M E T E R I N G
U T I L I T Y A U T O M AT I C A L LY O B TA I N S
S R E C , W I T H Z E R O C O M P E N S AT I O N T O
C U S T O M E R
S O L A R C U S T O M E R R E TA I N S S O L A R
R E N E WA B L E E N E R G Y C R E D I T ( S R E C )

18. A D O P T E D P R O P O S E D
C U S T O M E R E A R N S B I L L C R E D I T S
C U S T O M E R I S PA I D F O R S O L A R E N E R G Y
I N A S E PA R AT E T R A N S A C T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F A N N U A L O N - S I T E
C O N S U M P T I O N
S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y
O N S I T E C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N I S F O R F E I T
T O U T I L I T Y
C U S T O M E R I S PA I D F O R A L L S O L A R
E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F
O N - S I T E E L E C T R I C I T Y U S E
U T I L I T Y C H O O S E S W H E T H E R T O A D O P T
VA L U E O F S O L A R O R K E E P N E T
M E T E R I N G
U T I L I T Y M U S T O F F E R VA L U E O F S O L A R ,
B U T C U S T O M E R M AY C H O O S E B E T W E E N
I T A N D N E T M E T E R I N G
U T I L I T Y A U T O M AT I C A L LY O B TA I N S
S R E C , W I T H Z E R O C O M P E N S AT I O N T O
C U S T O M E R
S O L A R C U S T O M E R R E TA I N S S O L A R
R E N E WA B L E E N E R G Y C R E D I T ( S R E C )

19. A D O P T E D P R O P O S E D
C U S T O M E R E A R N S B I L L C R E D I T S
C U S T O M E R I S PA I D F O R S O L A R E N E R G Y
I N A S E PA R AT E T R A N S A C T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F A N N U A L O N - S I T E
C O N S U M P T I O N
S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y
O N S I T E C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N I S F O R F E I T
T O U T I L I T Y ?
C U S T O M E R I S PA I D F O R A L L S O L A R
E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F
O N - S I T E E L E C T R I C I T Y U S E
U T I L I T Y C H O O S E S W H E T H E R T O A D O P T
VA L U E O F S O L A R O R K E E P N E T
M E T E R I N G
U T I L I T Y M U S T O F F E R VA L U E O F S O L A R ,
B U T C U S T O M E R M AY C H O O S E B E T W E E N
I T A N D N E T M E T E R I N G
U T I L I T Y A U T O M AT I C A L LY O B TA I N S
S R E C , W I T H Z E R O C O M P E N S AT I O N T O
C U S T O M E R
S O L A R C U S T O M E R R E TA I N S S O L A R
R E N E WA B L E E N E R G Y C R E D I T ( S R E C )

20. A D O P T E D P R O P O S E D
C U S T O M E R E A R N S B I L L C R E D I T S
C U S T O M E R I S PA I D F O R S O L A R E N E R G Y
I N A S E PA R AT E T R A N S A C T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F A N N U A L O N - S I T E
C O N S U M P T I O N
S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y
O N S I T E C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N I S F O R F E I T
T O U T I L I T Y
C U S T O M E R I S PA I D F O R A L L S O L A R
E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F
O N - S I T E E L E C T R I C I T Y U S E
U T I L I T Y C H O O S E S W H E T H E R T O A D O P T
VA L U E O F S O L A R O R K E E P N E T
M E T E R I N G
U T I L I T Y M U S T O F F E R VA L U E O F S O L A R ,
B U T C U S T O M E R M AY C H O O S E B E T W E E N
I T A N D N E T M E T E R I N G
U T I L I T Y A U T O M AT I C A L LY O B TA I N S
S R E C , W I T H Z E R O C O M P E N S AT I O N T O
C U S T O M E R
S O L A R C U S T O M E R R E TA I N S S O L A R
R E N E WA B L E E N E R G Y C R E D I T ( S R E C )

21. A D O P T E D P R O P O S E D
C U S T O M E R E A R N S B I L L C R E D I T S
C U S T O M E R I S PA I D F O R S O L A R E N E R G Y
I N A S E PA R AT E T R A N S A C T I O N
S O L A R P R O D U C T I O N C A N N O T E X C E E D
1 2 0 % O F A N N U A L O N - S I T E
C O N S U M P T I O N
S O L A R P R O D U C T I O N I S N O T L I M I T E D B Y
O N S I T E C O N S U M P T I O N
N E T E X C E S S G E N E R AT I O N I S F O R F E I T
T O U T I L I T Y
C U S T O M E R I S PA I D F O R A L L S O L A R
E N E R G Y P R O D U C T I O N , R E G A R D L E S S O F
O N - S I T E E L E C T R I C I T Y U S E
U T I L I T Y C H O O S E S W H E T H E R T O A D O P T
VA L U E O F S O L A R O R K E E P N E T
M E T E R I N G
U T I L I T Y M U S T O F F E R VA L U E O F S O L A R ,
B U T C U S T O M E R M AY C H O O S E B E T W E E N
I T A N D N E T M E T E R I N G
U T I L I T Y A U T O M AT I C A L LY O B TA I N S
S R E C , W I T H Z E R O C O M P E N S AT I O N T O
C U S T O M E R
S O L A R C U S T O M E R R E TA I N S S O L A R
R E N E WA B L E E N E R G Y C R E D I T ( S R E C )

22. 0¢
4¢
8¢
12¢
16¢
2014 2016 2018 2020 2022 2024 2026 2028 2030
Market-based value of solar
Production-based incentive
P R O P O S E D : S O L A R F E E D - I N TA R I F F
N O T A D O P T E D
A D O P T E D

23. I M P O R TA N T N O T E
Minnesota will allow utilities
to replace net metering with
value of solar
I T C O U L D H A V E B E E N A N O P T I O N

24. W I L L I T W O R K ?
F O R S O L A R P R O D U C E R S

25. I S VA L U E O F S O L A R E N O U G H ?
0¢
5¢
10¢
15¢
20¢
25¢
30¢
(preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W
With 30% ITC
No subsidy
2 5 - Y E A R L E V E L I Z E D C O S T
¢ per kWh

26. W I L L I T W O R K ?
F O R C U S T O M E R S

27. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: X $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: X $0.145
Total value of solar compensation: $79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
!
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

28. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: X $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: X $0.145
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
!
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

29. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
!
!
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
!
!
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
!
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

30. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: $0.145
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
!
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

31. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: $0.145
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
!
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

32. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: $0.145
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
Cost of net electricity consumption: $168
Cost per kWh: X $0.115
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

33. Jane and John Doe
Golden Valley, MN
!
ELECTRICITY USE
Monthly usage (kWh): 2,000
Cost per kWh: $0.115
Total cost of electricity consumption: $230
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Value of solar rate: $0.145
Total value of solar compensation: -$79
!
!
Net electricity bill: $151
Jane and John Doe
Golden Valley, MN
!
NET ELECTRICITY USE
Monthly usage (kWh): 2,000
!
!
!
!
SOLAR PRODUCTION (5 kW)
Monthly solar production (kWh): 542
Net usage (kWh): 1,458
!
Cost per kWh: $0.115
!
Net electricity bill: $168
N E T M E T E R I N GVA L U E O F S O L A R

34. W I L L I T W O R K ?
F O R C O M M U N I T Y P O W E R

35. I S VA L U E O F S O L A R E N O U G H ?
0¢
5¢
10¢
15¢
20¢
25¢
30¢
(preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W
With 30% ITC
No subsidy
2 5 - Y E A R L E V E L I Z E D C O S T
¢ per kWh

36. I S VA L U E O F S O L A R E N O U G H ?
0¢
5¢
10¢
15¢
20¢
25¢
30¢
(preliminary) MN Value of Solar Residential - $4/W Commercial - $3/W
With 30% ITC
Overhead
No subsidy
2 5 - Y E A R L E V E L I Z E D C O S T
¢ per kWh

37. RECs

38. W I L L I T W O R K ?
F O R U T I L I T I E S

39. A N N U A L B I L L C R E D I T PAYA B L E
$0
$250
$500
$750
$1,000
(preliminary) MN Value of Solar Net Metering
$932
$748
$943
2014 2019

40. T H E F U T U R E O F S O L A R

41. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
T H E C O S T O F S O L A R FA R
E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y
P R I C E
T H E PA S T
Value of solar energy (MN, 2014)

42. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
T H E PA S T
Value of solar energy (MN, 2014)
T H E C O S T O F S O L A R FA R
E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y
P R I C E

43. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R
Value of solar energy (MN, 2014)
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
T H E PA S T
T H E C O S T O F S O L A R FA R
E X C E E D S I T S VA L U E A N D
T H E R E TA I L E N E R G Y
P R I C E

44. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
T H E C O S T O F S O L A R ,
VA L U E O F S O L A R ,
A N D R E TA I L E N E R G Y
P R I C E A R E A L L
S I M I L A R
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R

45. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R
M I N I M A L
S U B S I D I E S
N E E D E D
T H E C O S T O F S O L A R ,
VA L U E O F S O L A R ,
A N D R E TA I L E N E R G Y
P R I C E A R E A L L
S I M I L A R

46. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
T H E F U T U R E
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R
T H E R E TA I L E N E R G Y
P R I C E I S H I G H E R T H A N
T H E VA L U E O F S O L A R ,
I T S E L F H I G H E R T H A N
T H E C O S T O F S O L A R
M I N I M A L
S U B S I D I E S
N E E D E D

47. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
T H E F U T U R E
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R
VA L U E O F S O L A R I S
S U F F I C I E N T T O
C O M P E N S AT E S O L A R
P R O D U C E R S
M I N I M A L
S U B S I D I E S
N E E D E D
T H E R E TA I L E N E R G Y
P R I C E I S H I G H E R T H A N
T H E VA L U E O F S O L A R ,
I T S E L F H I G H E R T H A N
T H E C O S T O F S O L A R

48. $0.00
$0.10
$0.20
$0.30
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Value of solar energy
Retail (net metering) rate
Cost of solar energy
VA L U E O F S O L A R A L O N E
I S S U F F I C I E N T T O
C O M P E N S AT E S O L A R
P R O D U C E R S
T H E F U T U R E
R E TA I L R AT E
C O M P E N S AT I O N ( N E T
M E T E R I N G ) E X C E E D S
VA L U E O F S O L A R
P R E S E N T
Value of solar energy (MN, 2014)
T H E PA S T
TA X PAY E R - F U N D E D
S U B S I D I E S M A D E
S O L A R E C O N O M I C A L
S O L A R C U S T O M E R S
P R O V I D E D M O R E
VA L U E T O G R I D T H A N
T H E Y G O T PA I D F O R
T H E R E TA I L E N E R G Y
P R I C E I S H I G H E R T H A N
T H E VA L U E O F S O L A R ,
I T S E L F H I G H E R T H A N
T H E C O S T O F S O L A R

49. F R E E D O M T O G E N E R AT E U N D E R F I R E
States facing challenges to distributed generation
Sources: Renewable Energy World, Greentech Media, IREC, Vote Solar and many more
5/21/14

50. Q U E S T I O N S ?

51. www.ilsr.org
D O W N L O A D T H E F U L L R E P O R T