Distributed Solar Energy

Opportunities for the U.S. Border Region

Cecilia Aguillon

Dir. Market Development & 

Government Affairs

Kyocera Solar, Inc.

Cecilia.aguillon@kyocera.com

www.kyocerasolar.com
Layout of the Power Grid: Distributed PV Provides 

Customer Power Without Stages 1 to 5

Source: Edison Electric Institute, Key Facts: A Look at the Electric Power Industry, Section 

3, available online at: 

http://www.eei.org/industry_issues/industry_overview_and_statistics/nonav_key_facts

/index.htm
Benefits of Distributed Solar Energy

• Provides Clean Energy

• Provides Peak Shaving 

Power Reducing Investment 

Needed for Peaking Plants

• Reduces Cost Volatility

• Reduces Dependence on 

Imported Fuels

• Alleviates Grid Congestion 

• Ratepayers Monies Assigned to the 

subsidies are Leveraged

• Creates Local High-Tech Industries

• Improves Energy Security (DeCentralization)
Economic Benefits of Distributed Generation

• Creates Jobs

(Manufacturing, Distribution, 

Installation, and Service)

• Generates Tax Revenues 

• Decreases Spending on 

Procuring Energy or Fuel from 

Outside the Local Economy

• Monies Saved on Electricity Go 

Back into Local Economy

DarMar Residence by Carlson Solar
Policies Needed to Support Solar D.G.

• Net Metering

• Declining Financial Incentives

• Solar Friendly Electricity 

Tariffs 

• Long term contracts for 

Renewable Energy Credits 

and/or electricity + credits 

• Renewable Portfolio 

Standards with solar carve 

outs

New Jersey Solar
Financial Incentives

• Tax Credits

• Tax Exemptions

• Rebates based on system cost

• Rebates based on expected output

• Payment stream based on output - $/kWh

– Performance Based Incentives (PBI)

– Feed-in Tariffs(FIT)
Japanese Model

• Based on yen/DC Watts

• Residential program limited to 3kWs per household

• Net metering + utility purchase of solar kWhs at retail 

prices

• Federal program ended in 2005

• 1GW + installed in Japan

• PV prices reduced by 70% within 10 years

• New program started in 2010 to accelerate market
European Models

• Based on feed-in tariff 

• Based on system performance / system output

• Utilities purchase solar kWh at declining rates

• German pioneered feed in tariff method

• More than 10 GW installed by the end of 2010

• 40,000+ jobs created since 2000 (1,500 in 1999)

• German fastest growing PV market worldwide

• Other European & Asian countries are emulating the 

German model (Spain, Italy, Greece, South Korea...)
Solar Map

Source: U.S. Department of Energy
Border Region: What we Have in 

Common

• Solar resources

• Grid congestion issues

• Population growth – energy demand

• Industry growth

• Pollution – we share the air

• Relative low market penetration – opportunity 

for solar market growth

• Labor force (high-tech & low-tech)
Border Region: What’s Different

• Uniformed policies are possible in MX, but 

difficult in the U.S.

• CFE in MX vs. thousands of utilities in the 

U.S.

• U.S. (e.g.: California, Arizona, & Texas) has 

more experience with solar policies than MX
Recommendations for Market 

Development 

• Transparency, consistency and longevity in the 

market are crucial to attract investment into the 

region

• Incentive programs should be based on system 

performance

• Rebates for residential and small commercial projects

• Net metering

• Feed-in-tariff programs to accelerate the PV market

• Incentive programs should last 5-10 years

• Programs need to promote competition to be 

sustainable 

• Learn lessons from more mature markets
Impact of Effective Policies

• Investments in 

Manufacturing

• Stability of Material 

Supply

• Investments in R&D

• Price Reductions

• Creation of a Selfsustaining Industry