>>> MASSACHUSETTS RECENTLY ROLLED OUT A NEW SOLAR INCENTIVE
PROGRAM KNOWN AS SMART.
DESIGNED TO SUPPORT ANOTHER 1600 MEGAWATTS OF PHOTOVOLTAIC
CAPACITY ACROSS THE STATE.
WHAT'S THE MAJOR DIFFERENCE FROM THE PREVIOUS SOLAR RENEWABLE
ENERGY CREDITS PROGRAM?
HERE'S BILL STILLINGER, CO-OWNER OF PV SQUARED SOLAR, HAD TO SAY.
>> THERE ARE TWO PRINCIPAL DIFFERENCES.
THE SCEC PROGRAM, WHICH IS NOW DEFUNCT AS OF NOVEMBER 26, PAID
THE RESIDENTIAL HOMEOWNER FOR HIS OR HER SOLAR SYSTEM WITH
PAYMENTS STRETCHED OUT OVER 10 YEARS, BUT THE VALUE OF THOSE
PAYMENTS WAS DETERMINED BY MARKET CONDITIONS.
SO AT THE TIME THAT THE SOLAR INSTALLATION WENT IN, THE OWNER
DID NOT KNOW EXACTLY HOW MUCH INCENTIVE WAS GOING TO COME
THEIR WAY.
WITH THE NEW SMART PROGRAM, YOU HAVE CERTAINTY AS TO THOSE 10
YEARS OF PAYMENTS FOR RESIDENTIAL SYSTEMS.
>> ONE OF THE THINGS THAT THE HEAD OF THE PROGRAM TOLD
MASSLIVE IS THAT THAT'S ONE OF THE PRIMARY DRIVING REASONS THE
STATE SHIFTED THIS PROGRAM, WHICH WAS VERY POPULAR ON THE
RESIDENTIAL END, THEY HAD TWO PHASES OF IT
THE STATE DIDN'T LIKE THE FACT THAT IT WAS SO VARIABLE.
>> WELL, THAT'S TRUE.
THAT'S WHAT COMMISSIONER JUDD SON HAS SAID.
BUT THE SREC PROGRAM LASTED EIGHT OR NINE YEARS AND RAN VERY
WELL.
I THINK A LOT OF THE UPDATES ARE NOW TRYING TO TAKE A BETTER
RECOGNITION OF WHAT THE MARKET REALITIES ARE IN THE
COMMONWEALTH.
>> YES.
IN TERMS OF WHAT THIS MEANS, THE FLAT FEE TARIFF THAT PEOPLE WILL
NOW GET UNDER THE SMART PROGRAM, DO YOU HAVE ANY SENSE OF DOLLARS
AND SCENTS ON AVERAGE WHAT THAT WILL MEAN FOR A RESIDENTIAL
CUSTOMER?
>> WELL, YOU KNOW, I WOULD MUCH PREFER TO REMAIN SIMPLE AS
POSSIBLE, AND TO SAY THAT THE PAYMENTS ARE ADMINISTERED UNDER
A RATHER COMPLICATED SYSTEM OF DIFFERENCES BETWEEN THE ENERGY
SAVINGS THAT THE HOMEOWNER REALIZES AND THE INCENTIVE
PAYMENT ITSELF.
SO -- >> AND IT DEPENDS ALSO, AS I
UNDERSTAND IT, ON THE SIZE OF THE PROJECT AT HAND.
SO THERE'S LOTS OF VARIABLES.
>> YES, AND THERE'S DIFFERENT CATEGORIES OF PROJECTS THAT
RESIDENTIAL PEOPLE CAN TAKE ADVANTAGE OF.
>> IN TERMS OF SOME OTHER INSTANCES THAT THIS PROGRAM
OFFERS, IT HAS WHAT ARE CALLED ADDERS FOR THE SOLAR COMMUNITY,
INTEGRATE BATTERY STORM AND INCENTIVES FOR BUILDING ON LAND
FILLS, SOME OF THOSE LARGER DEVELOPMENTS.
DO YOU THINK WE'LL SEE MORE LAND FILL, BROWN FIELD SITES BECAUSE
OF THE INCENTIVE ATTACHED TO IT?
>> WELL, ONE HOPES SO.
I THINK THAT THE NEW DIRECTION THAT I HAVE HEARD THE DEPARTMENT
OF ENERGY RESOURCES WANTS TO TAKE IN THE FUTURE IS TO EVEN
GREATER, PUT GREATER EMPHASIS ON LAND FILLS AND BROWN FIELD
SITES.
AND I WOULD ALSO COMMENT THAT THERE'S A TREMENDOUS
DISINCENTIVE OR SUBTRACT FOR, RATHER THAN AN ADDER, FOR SOLAR
DEVELOPERS TRYING TO BUILD A SOLAR FACILITY ON OPEN LAND OR
FOREST LAND, GREENFIELDS, SO TO SPEAK.
>> SO KEEPING FARM, LAND FARMING LAND, FOR INSTANCE, AND THEN
USING THAT OTHER PROPERTY THAT WILL PROBABLY HAVE NO
ALTERNATIVE USE WERE IT NOT FOR SOLAR.
>> THAT'S CORRECT.
>> SO FOR YOU, YOU'RE THE FORMER PRESIDENT OF THE SOLAR ENERGY
BUSINESS ASSOCIATION OF NEW ENGLAND, LONG NAME THERE.
HOW DO YOU THINK THAT THIS CHANGE HAS BEEN RECEIVED BY THE
BUSINESS COMMUNITY?
>> WELL, IT'S INTERESTING BECAUSE THERE'S SO MANY DYNAMICS
GOING ON.
BEFORE ANSWERING THE QUESTION CORRECTLY, THE BUSINESS CLIMATE
HAS CHANGED A GREAT DEAL.
YOU THOI ABOUT FEDERAL TARIFFS AGAINST SOLAR MODULES AND STEEL
AND ALUMINUM THAT THE COSTS NEVERTHELESS, DESPITE THE
TARIFFS IN GENERAL ARE GOING DOWN FOR SOLAR EQUIPMENT.
AND WITHIN THAT CONTEXT WE ALSO SEE THE STATE REDUCING ITS
COMPENSATION FOR SOLAR, SO-CALLED INCENTIVES.
I'D RATHER CALL IT COMPENSATION FOR THE SOLAR GENERATION THAT
YOU MAKE.
AND SO WITH ALL OF THAT, THE BUSINESS COMMUNITY HAS BEEN VERY
WELCOMING AND SUPPORTIVE, AND HAS SPENT, GOSH, THE SMART
PROGRAM WAS ALMOST THREE YEARS IN DEVELOPMENT WITH PUBLIC
COMMENT AND WE'VE BEEN VERY ACTIVE TRYING TO INFLUENCE HOW
THAT ALL COMES OUT.
SO FAR SO GOOD, IT'S BEEN A MONTH.
>> RIGHT, LESS THAN A MONTH SINCE IT ROLLED OUT.
AND TO THAT POINT, WHEN THE REGULATIONS WERE FINALLY
RELEASED OVERALL OF THIS PROGRAM, ABOUT 15 MONTHS WENT ON
BEFORE IT WAS RELEASED AND WE SAW IT OPEN UP.
DO YOU THINK THAT PUT THE PROGRAM AT A DISADVANTAGE OR
PEOPLE AT A DISADVANTAGE, THAT IT TOOK SO LONG TO GET HERE?
>> THE QUICK ANSWER IS YES.
>> IN WHAT WAY?
>> BECAUSE THERE WAS A LOT OF PROJECTS JUST WENT ON IMMEDIATE
HOLD WAITING FOR THE ROLLOUT OF THE NEW SMART PROGRAM.
I MUST ADMIT TO YOU THE ORIGINAL DATE FOR THE SMART ROLLOUT WAS
GOING TO BE JANUARY 1 OF 2018.
WE'VE PASSED THAT TIME.
AND IT CAME OUT IN NOVEMBER.
AND WHEN THE IMPLEMENTATION FINALLY HAPPENED ON NOVEMBER 26,
OVER 635 MEGAWATTS OF PROJECTS IMMEDIATELY FILED FOR SO CALLED
CERTIFICATES OF ACCEPTANCE.
AND WE'RE NOW SIFTING THROUGH ALL OF THAT TO TRY TO UNDERSTAND
ALL OF THAT PENT UP DEMAND IS NOW BEING MELT.
IF I COULD AMPLIFY ON THAT A LITTLE BIT, I WOULD LIKE TO SAY
THAT SOLAR ENERGY IS LIKE INEVIDENCE FOOTBALL.
IT'S COMING -- IT'S INEVITABLE.
IT'S COMING OUR WAY.
ALL THE BAD NEWS ABOUT CLIMATE CHANGE IS REAL.
AND I THINK THAT SOLAR ENERGY PARTICULARLY IS ONE OPTION THAT
ORDINARY PEOPLE CAN TAKE ADVANTAGE OF AND DO SOMETHING
ABOUT, AS OPPOSED TO TRYING TO INFLUENCE FEDERAL AND STATE
LAWMAKERS TO DO SOMETHING ABOUT CLIMATE CHANGE, HERE'S SOMETHING
THAT IS WITHIN OUR GRASP TO ACTUALLY BE ACTIVE ABOUT.
THAT'S WHY I'M IN THIS BUSINESS AND WHY I LOVE IT SO MUCH.
SO THE REAL ANSWER IS THAT BUSINESS IS VERY, VERY HAPPY TO
BE DOING SOLAR ENERGY, CLEAN ENERGY GENERALLY, AND WE HOPE IT
CONTINUES.
WE GET TO 100% RENEWABLE ENERGY.
>> THE COMPANY THAT YOU OWN, PV SQUARED SOLAR, YOU'RE CO-OWNER,
YOU'RE OBVIOUSLY WORKING WITH RESIDENTIAL CUSTOMERS ALL THE
TIME WHO WANT TO PUT THESE ON THEIR GARAGES OR WHATEVER IN
THEIR YARD.
DO YOU THINK THAT THE SMART PROGRAM IS MORE OR LESS HELPFUL
IN GETTING THESE PROJECTS TO THE MARKET?
>> I THINK THAT REMAINS TO BE SEEN.
ONE ASPECT OF THE SMART PROGRAM IS THAT OUR FRIENDS AT THE
UTILITY COMPANIES, THE SO-CALLED ELECTRIC DISTRIBUTION COMPANIES,
TAKE A MUCH MORE ACTIVE ROLE IN DETERMINING HOW THE PROGRAM
OPERATES, BECAUSE IT IS NOW A FIXED STREAM OF PAYMENTS THIS IS
UNDER A REALLY A TARIFF OF THE UTILITY COMPANY TO PROVIDE THESE
PAYMENTS.
AND WHILE I REALLY LIKE THE UTILITY INDUSTRY A LOT, IT HAS
PRESENTED SOME DIFFICULTIES DOWN IN THE DETAILS ABOUT
INTERCONNECTION WITH THE GRID AND OTHER ASPECTS.
SO WE NEED TO PAY ATTENTION ABOUT OPERATING SMOOTHLY WITH
THE UTILITY COMPANIES, AND WE'VE TRIED TO DO THAT.
MY OWN COMPANY HAS BEEN DOING THAT FOR OVER 15 YEARS.
>> ONE SORT OF $35,000-FOOT QUESTION FOR YOU HERE
THE STATE HAS SAID THAT REALLY MASSACHUSETTS IS LEADING THE
COUNTRY WHEN IT COMES TO THESE TYPES OF POLICY PROGRAMS THAT
ARE INCENTIVIZING SOLAR.
DO YOU THINK THAT'S TRUE?
>> I THINK IT'S PARTLY TRUE.
CALIFORNIA IS MY IDEA OF THE LEADER, AND NORTH CAROLINA IS
RIGHT UP THERE AS WELL.
BUT MASSACHUSETTS CAN HOLD ITS HEAD HIGH, IT'S REALLY DONE A
GREAT JOB OF PROVIDING SOLAR, PUTTING SOLAR IN THE HANDS OF
THE PEOPLE, IF YOU WILL.