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Solar Government Policy

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Viraj Kalyani
Viraj Kalyani

This document summarizes and compares solar energy policies in Germany and the United States. It outlines Germany's Renewable Energy Law which establishes feed-in tariffs for solar energy producers. It also describes the US Department of Energy's Sunshot Initiative which aims to make solar power cost competitive with conventional electricity by 2020 through technological advances. The document analyzes these policies as either technology advancement focused or deployment oriented and discusses their potential long and short term impacts. It concludes with an update on proposed cuts to US loan guarantee programs for solar projects.

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Solar Government Policy Viraj Kalyani (vka@wharton.upenn.edu) PennSolar Forum February 24, 2011 University of Pennsylvania -
Germany: Renewable Energy Law • Erneuerbare-Energien-Gesetz (EEG) • Origin: 2000, modified in 2006, 2008 • Feed-in-tariff: 16 c/kWh paid to investors for electricity they produce • Gradual reduction
USA: Sun-Shot Initiative • Today’s version of the 60’s Moon-shot • bringing down the cost of solar power generation to equal that of conventionally produced electricity by 2020. • a 75% reduction in the cost of utility-scale solar generating stations, to $1 per watt, which would correspond to 6 cents per kilowatt hour • http://blogs.physicstoday.org/politics/2011/02/o bamas-initiatives-to-spur-ele.html
Sun-Shot Initiative • focusing on four pillars: – improving technologies for solar cells and arrays. – optimizing performance of the systems with power electronics. – increasing the efficiency of manufacturing processes. – bringing down the cost to install, design and permit, and all other costs of solar energy systems.
Case Study: USA vs. Deustchland 1650 MW 9785 MW
Sun-shot Initiative Feed-in-Tariff Technological Advancement Policy Deployment Oriented Policy Venture-cap model Pure economics model Picking winners? Building capacity, competition More independent companies Companies at the mercy of government? Long term lead Short term lead
Weekend Update: DOE Loan Guarantee Cut • On Saturday, 19 February, the US House passed a resolution which includes significant cuts to the DOE Loan Guarantee Program that will affect the solar industry. • The Solar Energy Industries Association (SEIA) worked intensely to oppose the proposal. • The action now shifts to the Senate where SEIA is much better positioned than it was in the House.

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Solar Government Policy

  • 1. Solar Government Policy Viraj Kalyani (vka@wharton.upenn.edu) PennSolar Forum February 24, 2011 University of Pennsylvania -
  • 2. Germany: Renewable Energy Law • Erneuerbare-Energien-Gesetz (EEG) • Origin: 2000, modified in 2006, 2008 • Feed-in-tariff: 16 c/kWh paid to investors for electricity they produce • Gradual reduction
  • 3. USA: Sun-Shot Initiative • Today’s version of the 60’s Moon-shot • bringing down the cost of solar power generation to equal that of conventionally produced electricity by 2020. • a 75% reduction in the cost of utility-scale solar generating stations, to $1 per watt, which would correspond to 6 cents per kilowatt hour • http://blogs.physicstoday.org/politics/2011/02/o bamas-initiatives-to-spur-ele.html
  • 4. Sun-Shot Initiative • focusing on four pillars: – improving technologies for solar cells and arrays. – optimizing performance of the systems with power electronics. – increasing the efficiency of manufacturing processes. – bringing down the cost to install, design and permit, and all other costs of solar energy systems.
  • 5. Case Study: USA vs. Deustchland 1650 MW 9785 MW
  • 6. Sun-shot Initiative Feed-in-Tariff Technological Advancement Policy Deployment Oriented Policy Venture-cap model Pure economics model Picking winners? Building capacity, competition More independent companies Companies at the mercy of government? Long term lead Short term lead
  • 7. Weekend Update: DOE Loan Guarantee Cut • On Saturday, 19 February, the US House passed a resolution which includes significant cuts to the DOE Loan Guarantee Program that will affect the solar industry. • The Solar Energy Industries Association (SEIA) worked intensely to oppose the proposal. • The action now shifts to the Senate where SEIA is much better positioned than it was in the House.