### Distributed **Solar Energy Opportunities for the U.S. Border Region** 

Cecilia Aguillon Dir. Market Development & Government Af

fairs Kyocera Solar, Inc. Cecilia.aguillon@kyocera.com www.kyocerasolar.comLayout 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

**Sour ce: U.S. Department**  **of Energy Border Region: What w** **e 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 Self

sustaining Industry