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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY able generation as more customers sign up. Xcel Energy’s Windsource program in Colorado has signed up more than 15,000 customers and supports 56 MW of wind capacity. Green markets have spurred 170 MW of installed or planned renewable capacity additions, while green pricing programs have spurred 280 MW of installed or planned renewable capacity. Tax/Financial Incentives Tax and financial incentives for renewable energy projects include property tax exemptions, fran- chise tax exemptions, corporate income tax exemptions, personal income tax credits, production tax credits (PTC), and loan programs. One of the strongest state tax incentives for renewable energy is Minnesota’s 1.5 ¢/kWh PTC for wind energy projects under 2 MW in size. Minnesota’s tax credit supplements the 1.7 ¢/kWh federal PTC for qualifying renewable generation. Net Metering Net metering laws require distribution utilities to compensate distributed renewable generators for the electricity they produce. These payments encourage investment in distributed renewables. The prototypical example is a rooftop PV system on a home, with the owner receiving payment for any net excess generation (NEG). Some net metering programs have no system size limit, however, and encourage development of large renewable systems at distributed locations. In Germany, utilities are required to pay for distributed renewable generation at a rate that is 90% of the retail residential rate. The Electricity Feed Law, as it is known, is more generous than most U.S. programs, and has helped Germany to install more than double the wind capacity installed to date in the U.S. Thirty-five states in the U.S. currently have a net metering law in place. View of the Western Governors’ Association (WGA) To maintain the Western governors’ commitment to a viable economy and a clean and healthy environment in the West, the western governors believe that western states need to pursue an energy policy that will result in a diverse energy portfolio, including conventional and alternative energy resource development, energy efficiency, and conservation. The western governors sup- port the development of renewable sources of energy that could offset, through emissions trad- ing, additional emissions as fossil-fueled plants come on-line. In the view of the WGA, such joint resource generation could be an important part of a comprehen- sive energy strategy in the West that would enable the region to capitalize on its renewable and non-renewable resources. The WGA supports pursuing accelerated development and deployment of promising renewable energy technologies through the extension and expansion of state and federal production tax credits and state and tribal policies, such as system benefits charges, renewable portfolio standards, renewable resource-based utility tariffs, and/or creative new incentives. 105PDF Image | Solar Fuel From The Sky
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