# Presentation: 484270

## Technology AcceptanceThomas P. KimbisU.S. Department of EnergyAugust 2, 2006

**The President’s ****Solar America Initiative**

## Solar America Initiative (SAI)Strategy in Brief

*Reducing Solar Costs to Grid Parity in All U.S. Markets By 2015*

- SAI Photovoltaic (PV) R&D activities will emphasize **technologies with the greatest potential for cost reductions** to meet SAI goals. SAI will also continue current efforts on CSP systems R&D.

- To accelerate attainment of systems goals, SAI will employ** public-private partnerships to pursue component and system technologies and demonstrate manufacturing approaches** that deliver low-cost, high-reliability commercial products.

**Solar America Initiative (SAI)**Strategy in Brief

**Partnership members will market and distribute PV systems** developed under SAI, while SAI **technology acceptance efforts tackle non-R&D barriers to market penetration **for both PV systems and CSP technologies.

## SAI Cost Reductions

*** ******SAI will bring increasingly cost-competitive systems to market between now and 2015, with benefits accruing from the early SAI years.***

**SAI Cost Reductions**

## SAI and Technology Acceptance Missions

*	*
***Reduce market barriers and promote market expansion of solar energy technologies through non-R&D activities.***

- SAI Technology Acceptance Mission

- SAI Mission

***Achieve cost-competitiveness of solar energy technologies by 2015 across all sectors.***

## Infrastructure Development

**Infrastructure Development**
*Provide technical, regulatory, institutional, financial and educational solutions to technology acceptance barriers.*

**Market Transformation**
*Accelerate demand for solar technologies through provision of technical assistance.*

-  Required for SAI success.
-  No or low recipient cost share.
-  Enables solar systems to easily reach end-user.

-  Increases chance of SAI success.
-  Leverages technical assistance to promote solar installations.
-  Creates benefits from economies of scale and consumer awareness.

## Technology Acceptance Pathways

***Infrastructure Development***

***Market Transformation***

**Technology Acceptance Strategic Plan (Internal)**

**Technology Acceptance Implementation Plan**

## Non-Technical Barriersto Solar Commercialization 

| Most frequently identified non-technical barriers to solar energy implementation, listed in order of frequency. |
| --- |
| High cost (addressed by all SAI activities, including R&D effort) |
| Lack of trained technical personnel, reliable installers, and maintenance services |
| Lack of communication, information dissemination, and consumer awareness |
| Inadequate financing options |
| Lack of appropriate, consistent interconnection standards |
| Inadequate government incentives |
| Lack of equitable and effective net-metering guidelines |
| Inadequate codes and standards |
| Liability issues / insurance requirements |
| Poor public perception of solar system aesthetics |

**Non-Technical Barriers****to Solar Commercialization **

**Notes:**
Non-Technical Barriers to Solar Energy Use: Review of Recent Literature[1]
SAI Draft White Paper
June 9, 2006
This white paper was prepared by Robert Margolis (NREL) with assistance from Jarett Zuboy (NREL) and Suzette Cohen (NREL).

## Infrastructure DevelopmentProvide technical, regulatory, institutional, financial and educational solutions to technology acceptance barriers.

- Promote the education and certification of solar installers and code officials.
- Develop and promote national rating system for solar systems.
- Promote improved financing and insurance options for solar electric systems.

**Infrastructure Development**Provide technical, regulatory, institutional, financial and educational solutions to technology acceptance barriers.

**Market Transformation**Accelerate demand for new solar technologies through highly cost-shared “market pull” purchase opportunities.

- Promote large-scale installations of advanced solar power systems.
- Create and promote “Solar America City” designation.

**Key Non-R&D Activities****Focus of SAI Technology Acceptance Efforts**

## SAI Participants Potential SAI Technology Acceptance Partners

**COMMERCIAL**

- PV Industry
- Commercial Users
- Industrial Users
- Building Community
- Finance/Insurance
- Community

**GOVERNMENT**

- Federal Agencies
- Regional Entities
- States
- City / Local
- Tribal

**UTILITY**

**Potential SAI Participants**

**INSTITUTIONAL**

- Educational Community
- Unions
- Standard- Development Organizations
- Independent Labs
- NGOs

## State Input to SAI Technology Acceptance

- State Input to SAI Technology Acceptance

- Solar Program personnel met with California State officials to ensure SAI coordination with the California Solar Initiative to avoid duplicative efforts:
**California Energy Commission**
**California Public Utilities Commission**
- Several States and State organizations responded to the T.A.Request for Information – those opinions are being used to inform our strategic plan and solicitation:
**Clean Energy States Alliance (CESA)**
**National Association of State Utility Consumer Advocates (NASUCA)**
**State of Hawaii**
**State of Maine**
**State of Michigan**
- Other States provided input during our TEMs through State university representatives:
**State of Arizona****	****	****- State of Florida**
**State of California****	****	****- State of North Carolina**
**State of Delaware****	****	****- State of Washington**

## Areas of Joint State-Federal Interestin SAI Technology Acceptance

**Areas of Joint State-Federal Interest****in SAI Technology Acceptance**

- More consistent *interconnection standards* across U.S. enables States to benefit from solar advances.
- Advanced *net metering* regulations allow State residents and businesses to better utilize solar.
- More uniform *installer training and national certification* makes it easier for State certification programs.
- National funding for *code official and inspector training* assists local governments.
- A *national voluntary PV module rating system* would boost consumer confidence and relieve States from having to create and adopt their own rating systems.
- Analysis of *potential financing mechanisms* will help define “best practices” to bring solar to all States.

## Federal Technical Assistance

**Large-Scale Installations:** DOE will send “tiger teams” of laboratory, university, and private sector personnel to provide technical assistance to States (among other applicants) that are considering installing solar.
**Solar America Cities:** DOE will form partnerships with cities for mutual benefit.
- DOE will provide technical assistance on solar installations, make recommendations on city energy and emergency preparedness plans, and potentially offer financial vehicles.
- Cities will work to remove existing local market barriers to solar and promote solar installations, while integrating solar and energy efficiency measures into various city processes/activities (master planning, education).

## Strong Potential for Continued State Involvement

**Strong Potential for Continued State Involvement**

- SAI will continue to rely upon States for significant involvement and input.
- Best Practices
- Legislative & Regulatory advances.
- SAI will continue to coordinate with individual States, as well as organizations such as:
-  National Association of Regulatory Utility Commissioners (NARUC)
-  National Association of State Energy Offices (NASEO)
-  National Conference of State Legislatures (NCSL)
-  National Governors Association (NGA)
-  Western Governors Association (WGA)

## Program Cooperation

**Program Cooperation**

- Natural Partners.
- The “zero energy building” (ZEB) mission of the Buildings Program requires solar technologies for energy production.
- Likewise, achieving SAI requires buildings to site solar systems.
- Sample Means of Interaction
- Jointly develop BIPV portion of ZEB Roadmap.
- Roadmap tasks divided between Solar and Buildings Programs
- Laboratory interaction on R&D activities.
- Cross-promotion of activities / outreach (Solar Decathlon)
- Buildings Program input on key SAI activities (e.g. solicitation review).
- Solar communication to builders via Building America networks.
- Solar engagement with Building America partners in identifying building community barriers to solar technology acceptance.

## The Important Role ofthe Building Community

**The Important Role of****the Building Community**

***Improve R&D / Engineering***: To realize projected savings from a BIPV system, the savings of omitting façade materials should approximate the cost of BIPV.
***Improve communication with builders on BIPV issues*****.  **
- If the building community is contemplating changes that may create a barrier to BIPV, e.g. requiring additional roof vents for plumbing, the solar community can propose solutions.
- Need to work with builders to develop BIPV buildings with optimal orientation and simpler roofing designs.
***Improve understanding of builder preferences and market dynamics****:* PV industry estimates that market for BIPV is ~ 60 GW, yet the percentage of grid-connected PV that is BIPV remains a small fraction of that. Why?

## Acquisition Schedule

*Request for Information (RFI) Release (April 2006)*
*Tech Acceptance Strategic Planning Group (April-June)*
*Technical Exchange Meetings (San Francisco, Washington) – (June 2006)*
*RFI Closes (June 2006)*
- Solicitation Issued (September 2006)
- Solicitation Closes (November 2006)
- Announcement of Winners (Dec 2006/Jan 2007)
- Awards Completed (February 2007)
- Release of Tech Acceptance Implementation Plan (part of SAI Implementation Plan) (February 2007)

## Back-up Slides

## Barrier/Opportunity Matrix to Activities 

**Barrier/Opportunity Matrix to Activities**

## The Important Role ofthe Building Community

**The Important Role of****the Building Community**

*Codes, standards, and regulations* include building codes as well as metering and connection issues.
*Education of code officials* involves training professionals who work on analyzing buildings and their components.
*Education of installers* necessarily involves an understanding of whole building issues, not just solar systems.
*PV rating systems* must be understood by the building community, as they, and homeowners, are the main audience for such ratings.
*Financing & insurance* issues involve, e.g., the integration of systems into the home for purposes of financing the system within a conventional mortgage.
- New home communities are among the greatest opportunities for *market expansion opportunities*.

## Sample Results from RFI

**Sample Results from RFI**

**Northeastern State:**
-  “[W]e applaud the **significant effort that DOE has made to thoughtfully redesign [Million Solar Roofs]** and to solicit comment on its proposed goals and objectives, as well as the overall design of the new Solar America Initiative (SAI) and its twin themes –1) bringing down the costs of solar components through research and development of PV components, systems and manufacturing approaches; and 2) technology acceptance activities that address marketplace barriers and provide opportunities for market expansion.
-  “Solar America Cities” ... is another area in which we applaud the far-sighted emphasis of the emerging SAI.  Cities are both load centers, as identified, and centers of education, visibility and market innovation.  **The designation of a “Solar America City” would be a coveted recognition**, especially as promoted nationally by DOE and other federal agencies.
**Midwestern State:**
- “**Many of [our former State PV] projects could have benefited from technical assistance** and future grantees will be interested in value analysis, design and/or proposal reviews, site visits, independent acceptance testing, and performance monitoring.  Technical assistance from peers should be considered as part of this effort.”
**Southwestern State:**
- “For retrofit residential installations, low- or zero-interest loans are useful.  Some revolving low-interest loan funds in [our State] are supported by public money, allowing additional systems to be funded as loans are repaid.  **Another option is leasebacks, which could be managed by electric utilities** or other entities that put up the initial cost of the installation, which is then repaid from savings on the utility bill.”

## Different Approach

| Million Solar Roofs | SAI Technology Acceptance |
| --- | --- |
| Funding allocated specifically to MSR partnerships. | Funding open to all through competitive solicitation. |
| Work heavily weighted toward solar water heating installations. | Work weighted toward PV based on funding allocations.  |
| Majority of work on project installations. | Work includes combination of infrastructure development and market transformation, but no hardware purchases. |
| Hundreds of small projects. | Fewer, larger, higher-visibility projects. |