The last couple weeks have seen formalized details being rolled out for new feed-in tariff programs in Japan and by the Long Island Power Authority (LIPA) as well as negotiated revisions to Germany's rate. In Japan, new tariffs will be set at $0.53 kWh for 20 years, while LIPA's new program will offer a $0.22 kWh rate for the same time period. Final details have also been worked out in Germany, which will reduce its FIT rate to approximately $0.17-0.24 kWh (depending on size) with a monthly regression of 1 percent and a total installed capacity cap of 52 GW.

Is the SREC market in New Jersey set for stabilized growth? Many think this may be the case after the legislature passed legislation expected to be signed by the governor, which would establish a new solar requirement of 2.05 percent of kWh sold by 2014 (and increasing to 4.10 percent by 2028). From 2014-16, the Board of Public Utilities would not need to review potential projects until 80 MW of grid-supplied capacity is installed in a year. Also included in the bill is a declining alternative compliance payment from $339/MWh (in 2014) to $239/MWh (in 2028) as well as allowing aggregated net metering for certain public entities.

Changes may be coming to the way electricity prices are charged in California. At issue is whether the current tiered-rate system is the best method for charging residential customers in the state or if time-varying pricing is fairer and more effective. The Commission's review is also expected to focus on the way that utility fixed costs are recovered and the effectiveness of rate design models on meeting statewide goals.

In a move intended to increase domestic demand for solar projects, China announced a revised goal to quadruple the amount of solar energy capacity installed in the nation. The new goal - 21 GW of installed solar by 2015 - could help to utilize excess supply in China and stabilize prices. Currently, China has approximately 3 GW of installed solar capacity.

On July 17, the Federal Energy Regulatory Commission (FERC) held a technical conference to receive information from interested stakeholders regarding potential changes being considered for the Small Generator Interconnection Procedures (SGIP) for distributed solar generation. Testimony was heard by stakeholders - including NREL, EEI, SunEdison, PJM, and a variety of utilities - which provided diverse perspectives on the potential value, challenges, and impacts that could result from revised requirements for "fast tracked" interconnections.

Republican leaders in the U.S. House of Representatives continued their examination of the loan guarantee program that provided assistance to certain solar companies that subsequently declared bankruptcy. The House Energy and Commerce Committee held a politically charged hearing on the program with administration testimony pointing to overall success with the program and critics highlighting a path to sunset the loan guarantee program under their recently released "No More Solyndras Act."

Recent weeks have seen multiple discussions being reported on regarding the potential value of taxing carbon emissions in exchange for lowering other tax rates or providing rebates. This has included a left-right coalition that believes comprehensive tax reform could include a carbon tax as well as work by International Monetary Fund (IMF) staff that are seeking an effective way to reduce greenhouse gas emissions. In the working paper - "Environmental Tax Reform: Principles from Theory and Practice to Date" - IMF staff look at policy reform ideas that target energy taxes that should be imposed and ones that could be reduced as part of a restructured tax system.

The California Public Utilities Commission (CPUC) unanimously approved a proposal that clarifies how the state's five percent cap is defined. At issue was whether "aggregate customer peak" demand should be based on total system demand or an aggregate of each customer's peak load, as suggested in the proposed decision that was adopted. The CPUC will update a study regarding costs and benefits of distributed solar to help address questions about possible alternatives to full retail net metering credits that could support a more sustainable path in the future.

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The U.S. Senate and House of Representatives again delved into debate on renewable energy policies that could help or hinder an expansion of solar in the United States. On May 17, the Senate Energy and Natural Resources Committee discussed Chairman Bingaman's bill, S. 2146, which would create a national clean energy standard. In a more contentious debate, the House Committee on Oversight and Government Reform discussed "green incentives," including witnesses from solar companies currently developing projects. 

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The U.S. Commerce Department made a preliminary determination on new tariffs in response to the filed anti-dumping complaint against Chinese solar panels. In the determination, Chinese producers/exporters will receive new margins between 31.14 percent and 249.96 percent with a weighted average of 31.18 percent. 

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Vermont is set to more than double the amount of solar energy that qualifies under its standard-offer program (also called CLEAN program) from 50 MW to 127.5 MW. Additional installations will be exempt from the cap if sufficient locational benefits can be demonstrated. Also included are revised market-based features for the program and a broader focus for the state to examine a "total energy standard" that incorporates electric transportation while expanding clean energy sources and reducing petroleum-based heating.

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In another move responding to the petition filed by the Solar Energy Industries Association (SEIA), the Federal Energy Regulatory Commission (FERC) will hold a technical conference on July 17 to consider possible changes to its procedures for small generator interconnections.  SEIA’s petition requests modifications to certain requirements, such as the 15 percent load screen, in order to increase the number of wholesale solar DG projects that can be “fast-tracked.”  If altered, FERC’s new rules could also be considered as model procedures in the states.

Members of the U.S. Senate Finance Committee continue to work on finding a way forward to extend a number of tax incentives that have expired or will expire at the end of 2012, including multiple renewable energy incentives.  Most observers believe that action could occur after the November election during a “lame duck” session, at the earliest, or may be pushed to the next Congress when comprehensive tax reform could be taken up, including the possibility of a multi-year extension but phasing out of renewable and traditional energy incentives.  A recent Senate Finance Committee hearing touched upon many of these issues. 

Property Assessed Clean Energy (PACE) programs, if enacted, could stimulate tremendous growth of solar installations throughout the U.S.  However, guidance provided by the Federal Housing Finance Agency (FHFA) has essentially blocked residential PACE programs that were being created throughout the United States. These programs eliminate upfront costs by allowing property owners to finance energy efficiency and renewable energy projects through an assessment on their property taxes that is repaid over time, thus removing a primary barrier for households interested in solar energy. As part of an ongoing legal challenge, FHFA has released a Notice of Proposed Rulemaking (NPR) to receive feedback on the restrictions that were placed on PACE programs. Comments are due July 30.

Governor Parnell enacted Senate Bill 25, Alaska’s Sustainable Strategy for Energy Transmission and Supply (ASSETS), which establishes a $125 million fund for use by the Alaska Industrial Development and Export Authority (AIDEA) for energy infrastructure projects such as new renewable energy generation.  Funding can be used for up to one-third of the project’s cost with a cap of $20 million per project.  Investment returns will help grow the fund and return funding to the state treasury to ensure a sustainable program going forward.

Reports continue to come out of Japan regarding a new feed-in tariff program that is expected to be launched in July at a price of $0.534 kWh for solar PV. Additional approvals are needed within the government, but assuming that current progress continues as expected, Japan will have one of the world's most attractive programs for solar developers. The current program proposal is more simplified than FIT programs found in other countries, including largely equivalent prices for small and large installations and other differences such as having no guarantee of grid connection.

The Howard H. Baker Jr. Center for Public Policy at the University of Tennessee-Knoxville recently released a report that debunks contentions that solar energy is unfairly subsidized by the Federal government. The report states: "We find that solar energy is following the same incentive-driven path as other traditional energy sources before it, consistent with the government's decision to incentivize energy production for a variety of policy purposes. We also conclude that the federal investment in solar energy could bring about a number of tangible benefits, including increased employment, global business opportunities, and energy supply diversity."

As the solar market continues to evolve and mature, interested stakeholders continue to keep a close eye on China, given the tremendous role that Chinese solar PV products have had in driving down costs. Observers question whether any policy or market force will be strong enough to reduce the oversupply of these products. Following the release of China's new five-year plan for solar, the Coalition for American Solar Manufacturing commissioned a study to analyze potential ramifications from China's plan, noting that "these plans significantly increase the government's control over the development of the solar industry, permitting the government to manage virtually every aspect of the industry."  China's government has viewed revisions as a way to reduce domestic solar costs and expand its domestic market.

The Environmental Protection Agency (EPA) issued a new proposed rule on March 27 that limits greenhouse gas emissions from new power plants to no more than 1000 pounds of carbon dioxide for every megawatt of electricity produced. Many feel that the rule effectively bans new coal plants without effective pollution controls. It does not apply to existing plants or units that will begin construction in the next 12 months. The proposed rule follows a 2007 Supreme Court ruling - Massachusetts v. EPA - which upheld the agency's ability to regulate greenhouse gas emissions.

The U.S. House Natural Resources Committee held a hearing on March 20 to raise questions about the value and need of a recent memo from U.S. Department of Energy Secretary Steven Chu to Power Marketing Administrations (PMAs). The March 16th memo calls on the PMAs to transform the grid with new transmission infrastructure and updated rate designs that will incorporate clean energy resources and electric vehicles. Critical comments focused on the potential impact this could have on rates. Others noted that much of this work is already underway and that higher rates as a result are unlikely.

The U.S. Department of Commerce (DOC) announced its intent to impose countervailing duties between 2.9 percent and 4.73 percent in response to charges that Chinese solar manufacturers have received unfair government subsidies. Observers have noted that the imposed tariffs were unexpectedly low, which could minimize the overall impact on the solar industry. A final determination will be issued by the DOC in June and potential anti-dumping duties could also be imposed in the coming months.

Recent policy and legal actions have brought greater clarity to three leading feed-in tariff programs. On March 22, the Ontario government released a review of their program, which calls for a reduction in pricing of more than 20 percent and increased public participation of local communities with the stated intent to ensure long-term sustainability of clean energy in the region. Solar advocates in the United Kingdom praised a decision by the nation's Supreme Court to end legal battles over previously announced reductions by rejecting the government's appeal of a lower court decision that found the FIT cuts illegal. And, efforts to find a legislative compromise in Germany were successful between parliamentary representatives and the Chancellor's office. While cuts between 20-40 percent were agreed to, projects will have until the end of June or September - depending on size - to finish in order to receive higher FIT prices.

The Maryland State Senate approved legislation (S.B. 791) that will accelerate the state's Renewable Portfolio Standard Solar Carve-Out requirement by two years. The 2 percent solar carve-out will now need to be achieved by 2020 instead of 2022, which is expected to create additional demand for SRECs in the Maryland market.

Officials in Los Angeles have long debated the value of a feed-in tariff program for the nation's largest city served by a municipal utility. The debate is over, after the City Council approved a 150 MW program for commercial and residential customers, which builds off of an earlier approved 10 MW demonstration program. Small- and medium-sized projects will be targeted - 30 kW to 999 kW - and successful projects receiving FIT payments will not be eligible for other incentive programs.

A recently released report by the Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) found that up to 75,000 jobs and up to $44 billion in total economic output was achieved from solar and wind projects that received federal government support through the 1603 Treasury Grant program. The American Recovery and Reinvestment Act authorized one-time grants in lieu of underlying tax credits through this program but that authority expired at the end of 2011. Attempts to extend the program have not as yet been successful.

The progressive think tank Center for American Progress released an issue brief entitled, "Renewable Energy Standards Deliver Affordable, Clean Power." In it, author Richard Caperton analyzes standards throughout the United States and rebuts the assumptions made and methodology used in recent reports by the Manhattan Institute and Americans for Tax Reform, concluding that clean energy statutes do not cause electricity rates to go up faster than they otherwise would have.

Considered by some as an initial step toward longer term energy goals in Florida, H.B. 7117 became law and requires the Public Service Commission to consider the amount of renewable energy that is produced or procured by electric utilities as part of generation planning. It also reinstates the sales tax exemption for renewable energy technologies, the renewable energy technologies investment corporate income tax credit, and the renewable energy production corporate income tax credit.

Multiple congressional hearings have been held over the past couple weeks to focus on renewable energy incentives as well as budgetary proposals in the U.S. House and Senate that fund federal programs targeting solar energy and other renewables. Specifically, a subcommittee of the House Committee on Science held a hearing on the "Impact of Tax Policies on the Commercial Application of Renewable Energy Technology;" the House Ways & Means Committee held a hearing on "Expiring Tax Provisions;" the House Appropriations Subcommittee on Energy and Water marked up their FY 2013 funding legislation; and the Senate Appropriations Subcommittee also marked up their Energy and Water funding bill. While the House bill reduces funding for a number of solar and other renewable energy programs, the Senate bill increases funding for many of the same programs, so a lot of work remains to be completed before the end of September.

New York Governor Andrew Cuomo formally kicked off his proposed initiative to quadruple the amount of customer-sited solar power in the state by 2013. A number of efforts are intended to work together to make this ambitious goal a reality, including increased incentives, additional funding for competitively bid solar projects, a balance-of-systems initiative, and standardization of permitting and interconnection procedures.

As of April 23, homes and businesses can participate in Maine Green Power, which provides an option for those interested in matching their electricity usage with an equivalent amount of local renewable energy. Participants choose an amount of 500 kW "blocks" to purchase for $7.50 per month - 1.5 cents kWh - on top of their normal bill. In California, Pacific Gas & Electric Company (PG&E) has proposed a similar program to allow customers to match their electricity usage with "Green-e Energy" certified sources for approximately $6 per month.

Interested stakeholders have been waiting nearly a year, since formal comments were requested on the design of a national clean energy standard, to see legislative language from the Chairman of the Senate Energy and Natural Resources Committee, Jeff Bingaman (D-NM). The Clean Energy Standard Act of 2012 is similar in scope to President Obama's call for an 80 percent by 2035 standard and would establish market-based credits based on carbon intensity of generation sources for compliance purposes.

The Federal Energy Regulatory Commission (FERC) has set a March 27 deadline for those interested in intervening or protesting the recently filed petition by the Solar Energy Industries Association (SEIA) which requests a rulemaking for purposes of modifying rules and procedures of FERC's small generator interconnection process for solar electric generation.

Building on other efforts to expand renewable energy development on public lands, the U.S. Bureau of Land Management has issued a draft Environmental Impact Statement (EIS) to "identify lands across Arizona...(and) establish a baseline set of environmental protection measures for such (renewable energy) projects."  Public comments are due by May 17, 2012. Feedback will be used to complete the EIS process and make final decisions later in the year.

A recently released report by the National Governors Association (NGA) - "Clean State Energy Actions: 2011 Update" - has found that states continue to lead the way with support for clean energy programs and economic activities. Actions to advance clean energy options were found in every state, including specific actions in every state to support "the generation of electricity from clean and renewable resources." Some of the actions reviewed include RPS mandates, net metering and interconnection standards, and financial/non-financial incentives for clean electricity.

Because of an amendment filed by Michigan Senator Debbie Stabenow (D-MI) for the Surface Transportation Bill (S. 1813) being voted on in the U.S. Senate, renewable energy advocates had hoped to see progress made on extending a number of incentives, including the 1603 grant program. Unfortunately, the necessary support fell short of the 60 votes required to end debate on the amendment in order to consider it for inclusion in the bill, so advocates will continue fighting for extensions of these critical incentives when future legislative opportunities arise.  The Senate also rejected an amendment that would have ended all energy tax credits.

Formal approval was granted on March 5 by the City Council in Palo Alto, California, to begin a new feed-in tariff program that will have the city purchase locally produced solar energy for 14 cents/kWh for 20 years. The first year is capped at 4 MW of capacity with a minimum project size of 100 kW. Notably, it has been reported that the average bill for customers will only go up one cent per month.

Renewable energy was the focus of two recent hearings in the U.S. Senate - one examining the Department of Energy Loan Guarantee Program and another reviewing budget proposals for renewable energy programs. On March 13, the Energy and Natural Resources Committee took their turn at examining DOE's loan program that has received attention from the recent Independent Consultant's Review of the program. On March 14, the Energy and Water Appropriations Subcommittee held a hearing to review requested funding levels for programs that will support clean energy investments and jobs.

In order to facilitate a cleaner, more diverse supply of energy sources, the Obama administration's multi-agency Rapid Response Team for Transmission is soliciting input on ways to expedite coordination on and permitting of transmission projects. Various issues are highlighted in order to gain a better understanding of how agencies can better align approval processes and development timeframes for generation and transmission projects to ensure that one does not inhibit the other.  Deadline for comments is March 28.

While the Investment Tax Credit (ITC) for solar developers does not expire until 2016, many other incentives expired at the end of 2011 - such as the 1603 Treasury Grant program - or will expire in the next few years. On January 31, the U.S. Senate Committee on Finance held a hearing, "Extenders and Tax Reform: Seeking Long-Term Solutions," not only to discuss the economic impact of expiring incentives but also to examine the ramifications of regularly extending incentives in one- or two-year increments. Participants echoed the benefit of providing long-term certainty that business investments can be based on as well as the need for tax reform.

Solar advocates have pursued a variety of methods over the past couple years to reverse guidance provided by the Federal Housing Finance Agency (FHFA) that essentially blocked residential Property Assessed Clean Energy (PACE) programs that were being created throughout the United States. These programs eliminate upfront costs by allowing property owners to finance energy efficiency and renewable energy projects through an assessment on their property taxes that is repaid over time, thus removing a primary barrier for households interested in solar energy. As part of an ongoing legal challenge, FHFA has released an Advance Notice of Proposed Rulemaking (ANPR) to receive feedback on the restrictions that were placed on PACE programs. Comments are due March 26.

As California (and the nation) sees an increasing amount of renewable energy sources connecting to the grid, planning continues to ensure that reliability is maintained while grid operations change to integrate these sources as well as a higher penetration of smart grid technologies, electric vehicles, and distributed resources. The recently released "Reliable Power for a Renewable Future: 2012-2016 Strategic Plan" outlines CAISO's thinking on focus areas that need to be addressed.

The public comment period closed on January 27 for one of the Obama administration's signature efforts to guide and expedite thousands of megawatts of new solar development - the U.S. Department of Interior's (DOI) Solar Programmatic Environmental Impact Statement (Solar PEIS). Responses provided will guide the DOI in preparation of a final Solar PEIS expected to be released this summer. Stakeholders have focused on topics including opportunities and challenges from designated Solar Energy Zones, clarity and criteria needed for permitting and development activities, resolving environmental concerns, and methods to ensure continued progress in the future on necessary coordination and assessment activities. Once complete, the DOI hopes to use "lessons learned" from this process for similar efforts in other parts of the U.S.

In his message to Congress and the Nation on January 24, President Obama requested congressional action on policy proposals that will build upon administration efforts to expand the renewable energy sector, including a national Clean Energy Standard, development of renewables on federal lands, U.S. Department of Defense procurement of renewable energy, reinvesting fossil fuel subsidies into clean energy sources, and other efforts needed to ensure that clean energy technologies are globally competitive. While prospects for legislative success remain limited this year, these announced policies reiterate a vision that the president will pursue through federal agency actions and as a platform during the presidential election season.

Solar energy would receive an increased level of funding and support if President Obama's budget proposal is enacted into law. Specifically, the proposal includes the following: extension of the 1603 Treasury grant program, $310 million for the SunShot Initiative (that seeks to get solar to "grid parity" without subsidies by 2020), increased funding for permitting activities to expedite solar projects on public lands, $350 million for the Advanced Research Projects Agency - Energy (ARPA-E) for "breakthrough" technologies, double spending levels for Department of Defense clean energy projects, and an increase to $2.3 billion for DOE's Office of Energy Efficiency and Renewable Energy.

The recently released "Report of the Independent Consultant's Review With Respect to the Department of Energy Loan and Loan Guarantee Portfolio" was charged with providing the current status and risk of Department of Energy (DOE) loans and loan guarantees for alternative energy projects, recommendations for enhancing these programs, and recommendations to identify and mitigate potential problems with individual projects. The House Energy and Commerce Committee has been conducting its own review of DOE loans and loan guarantees with a specific focus on the now-bankrupt Solyndra. Solar advocates felt vindicated by reported results in the Independent Consultant's Report that suggested lower risk from supported projects. Recommendations were also viewed positively as a way to improve program effectiveness and influence program design of similar financial mechanisms that could be created in a future Clean Energy Deployment Administration. 

The Department of Energy and Climate Change announced a new plan to modify the nation's FIT program. In a statement, Minister of State Greg Barker explained: "Our new plans will see almost two and a half times more installations than originally projected by 2015, which is good news for the sustainable growth of the industry." Residential installations after March 3 will receive 21p/kWh and regular reductions in FIT pricing going forward will be pegged to technology cost reductions and industry growth. 

The 2011 Integrated Energy Policy Report (IEPR) provides an assessment of and recommendations to key energy issues in the state. Especially important for those focused on solar development are challenges, trends, and goals related to California's 33 percent Renewable Portfolio Standard, Gov. Brown's target for 12,000 MW of renewable distributed generation by 2020 (while retiring fossil plants), and the ongoing need to make investments that ensure grid reliability while meeting growing energy needs.

On December 21, Congress sent H.R. 1540, the National Defense Authorization Act for Fiscal Year 2012, to President Obama, which he subsequently signed into law. Within the legislation was a provision that removes "normalization" requirements for renewable energy projects funded with 1603 Treasury grants, which can be used in lieu of traditional renewable energy tax credits. While the grant program expired at the end of 2011, qualified solar projects that began construction still have until 2016 to be completed. Proponents of the change have argued that "normalization" rules limit the amount of possible utility-owned renewable energy projects because of higher upfront project cost when incentive benefits are required to be applied over time.

The State of Vermont ended 2011 with a couple of announced changes that will support solar energy development. After months of development, the Public Service Board rolled out a new permitting process for small-scale solar installations (under 5 kW) that reduces paperwork and institutes a 10-day approval process before installations can begin. Also announced was a state energy plan that seeks to increase their renewable energy mandate to 90% by 2050. In a statement, Vermont Gov. Peter Shumlin argued that an aggressive RPS will "protect our environment, gain greater energy independence and drive innovation and jobs in the energy sectors."

The Environmental Protection Agency (EPA), courts, utilities, states, and other stakeholders have been very active on a number of fronts regarding new regulatory requirements for air emissions at power plants. In mid-December, the EPA finalized the Mercury and Air Toxics Standards (MATS) rule, which seeks to limit mercury emissions by 91%. More recently, implementation of the Cross-State Air Pollution Rule (CSAPR) was put on hold by the U.S. Court of Appeals in order to hold hearings in April. While the EPA remains confident that the rule will be upheld and opponents remain equally confident in their ability to have it rewritten, utilities will have to deal with continued uncertainty. In response to these rules, stakeholders continue to have diverging options about the impact they will have on future grid reliability and a movement away from coal to natural gas and renewable energy resources.

Last October, San Diego Gas & Electric Company (SDG&E) sought to establish a "network use charge" in their recent rate design filing to recover distribution demand costs from all customers. Stakeholders have remained in dispute over the fairness of this proposal, both in terms of new costs solar customers would pay as well as the underlying discussion of how fixed costs for operations and maintenance are covered for connecting to the grid. Objections were also heard on the appropriateness of these charges being included in SDG&E's broader rate design proposal. On January 18, the California Public Utilities Commission (CPUC) agreed that the proposed charge should not be included as part of SDG&E's rate design proceeding and required that SDG&E submit a revised proposal without it.

Efforts by the Department of Interior (DOI) and State of California to expedite solar development will continue and expand, according to a renewed agreement between the two that was signed on January 13 by Secretary Ken Salazar and Governor Jerry Brown. The coordinated federal-state approach - through the Renewable Energy Policy Group (REPG) - has helped to expedite permitting processes for renewable energy projects, including more than a dozen utility-scale solar projects and more than 130 renewable energy projects in California. Additional efforts and partners will now be included to identify and streamline processes for transmission projects that will link to many of these generation projects.

Following similar proposed initiatives in Missouri and Maine, advocates in Michigan are looking to raise state renewable energy requirements through the ballot box. The proposed measure seeks to increase mandated amounts of renewable energy to 25% by 2025, which would move Michigan near the top of RPS targets found in the states. If successful, Michigan would join states such as Washington, Missouri, and Colorado that have established renewable energy targets through voter approval.

Proposals intended to reverse recent pricing drops in the Solar Renewable Energy Certificates (SREC) market have been viewed by solar advocates as a critical step needed to ensure that the state's robust market does not dry up. However, S2371 - a bill that would have accelerated solar requirements to increase demand for SRECs - was not voted on by the end of the legislative session on January 9 and, therefore, must be resubmitted in the new session.

Last October, San Diego Gas & Electric Company (SDG&E) sought to establish a "network use charge" in their recent rate design filing to recover distribution demand costs from all customers. Stakeholders have remained in dispute over the fairness of this proposal, both in terms of new costs solar customers would pay as well as the underlying discussion of how fixed costs for operations and maintenance are covered for connecting to the grid. Objections were also heard on the appropriateness of these charges being included in SDG&E's broader rate design proposal. On January 18, the California Public Utilities Commission (CPUC) agreed that the proposed charge should not be included as part of SDG&E's rate design proceeding and required that SDG&E submit a revised proposal without it.

Efforts by the Department of Interior (DOI) and State of California to expedite solar development will continue and expand, according to a renewed agreement between the two that was signed on January 13 by Secretary Ken Salazar and Governor Jerry Brown. The coordinated federal-state approach - through the Renewable Energy Policy Group (REPG) - has helped to expedite permitting processes for renewable energy projects, including more than a dozen utility-scale solar projects and more than 130 renewable energy projects in California. Additional efforts and partners will now be included to identify and streamline processes for transmission projects that will link to many of these generation projects.

Following similar proposed initiatives in Missouri and Maine, advocates in Michigan are looking to raise state renewable energy requirements through the ballot box. The proposed measure seeks to increase mandated amounts of renewable energy to 25% by 2025, which would move Michigan near the top of RPS targets found in the states. If successful, Michigan would join states such as Washington, Missouri, and Colorado that have established renewable energy targets through voter approval.

Proposals intended to reverse recent pricing drops in the Solar Renewable Energy Certificates (SREC) market have been viewed by solar advocates as a critical step needed to ensure that the state's robust market does not dry up. However, S2371 - a bill that would have accelerated solar requirements to increase demand for SRECs - was not voted on by the end of the legislative session on January 9 and, therefore, must be resubmitted in the new session.

On Nov 30, the California Energy Commission (CEC) released its annual 2011 report on its Renewable Energy Program to the California legislature. The report covers the period from July 1, 2010 through June 30, 2011 and discusses, among other things, the CEC's New Solar Homes Partnership (NSHP), the California Solar Initiative (CSI) and incentive schemes related to publicly owned utilities, including the renewable portfolio standard (RPS) certification scheme. The report found that as of June 30, 1,267 renewable energy installations with a total capacity of 56.6 GW were eligible for RPS certification or pre-certification. Meanwhile, investor owned utilities signed contracts with renewable energy providers to add about 18.4 GW of capacity, about 22 percent of which is now on line.

The International Energy Agency (IEA) has released a new book about renewable energy aimed at policy makers. "Deploying Renewables 2011: Best and Future Policy Practice" provides guidance on how countries can successfully deploy renewable energy and includes analysis of renewable energy policy and market trends from all over the world. The book, which is an updated version of a 2008 publication, also assesses the impact and cost-effectiveness of support policies.

The Spanish Ministry of Industry has published the fourth quarter 2011 lists of approved projects that will receive the feed-in tariff. According to the lists, 35.2 MW (the maximum for the quarter) of ground-mounted installations were registered. These installations will receive a feed-in tariff of 12.49 euro cents per kWh. 75 MW (also the maximum) of rooftop projects were registered. Rooftop installations with a capacity of over 20 kW will receive a tariff of 19.31 euro cents per kWh, while rooftop installations with a capacity below 20 kW will receive 27.38 euro cents.

A newly released analysis by the Energy Information Administration (EIA) responds to questions posed by the Chairman of the U.S. Senate Energy and Natural Resources Committee regarding options for establishing a Clean Energy Standard (CES). After the release, Chairman Bingaman stated his desire to pursue CES legislation early next year. 

The Hawaii Public Utilities Commission issued new rules for tariffs and interconnecting distributed renewable energy sources for "Tier 3" Feed-In Tariff (FIT) projects. For solar, these projects are between 500 kW and the lesser of 5 MW or 1 percent of system peak load. Rates for PV projects will be 19.7 cents/kWh and 31.5 cents/kWh for CSP projects (which includes a 33% system cap). New rules attempted to take "lessons learned" from implementing "Tier 1" and "Tier 2" FIT projects (under 500 kW) to establish simplified interconnection rules, including time limits for certain steps and additional flexibility for when technical studies may be required.

Building off of ongoing efforts to expedite development of renewable energy projects on federal lands - including a recent announcement to streamline 17 large-scale projects in 2012 - the U.S. Department of Interior issued a proposed rule on November 28 to establish deadlines for the Bureau of Indian Affairs (BIA) to act on lease applications for residential, commercial, and industrial projects on Indian lands.

Regulators in New Mexico have proposed changes to rules that govern renewable energy procurement to standardize methodology for calculating the cost of projects and applying the reasonable cost threshold. Specifically, the proposed rule is intended to make the process less complicated for determining costs in order to better determine if costs rise above the reasonable cost threshold - i.e. 3 percent of aggregated overall annual electric charges for investor-owned utility customers or 1 percent of gross receipts for rural electric cooperatives. Additional changes seek to decrease the mandated amount of procured solar energy from 20 percent to 10 percent within the state's overall renewable energy mandate.

Stakeholders interested in expanding opportunities for solar development and industry growth in Arizona have been involved in a number of initiatives to identify key issues and barriers that prevent robust growth of the solar industry in the state. Specific recommendations have been developed over the past few months and were recently released in a "Solar Strategic Plan." 

Nearly 800 companies, small businesses, and organizations have requested that Congress extend the Treasury Grant program established under Section 1603 of the 2009 economic recovery package. The grant program allows energy project developers to "monetize" federal tax credits - 30 percent for solar projects - with a cash grant in lieu of taking the tax credit. Supporters argue that the grant program is more economically efficient and fills a distinct financing need as the tax equity market recovers. Authority for the grant program expires at the end of this year.

A new report commissioned by the International Energy Agency's (IEA) Renewable Energy Technology Deployment Program advises governments to consider supporting renewable energy projects as part of their economic development strategy, rather than as an environmental strategy with the secondary benefits of job creation. "Strategies To Finance Large-Scale Deployment Of Renewable Energy Projects: An Economic Development And Infrastructure Approach," which was published by the Clean Energy Group, recommends to introduce new renewable energy policies reducing the risk-to-reward ratio to encourage the private sector to invest more in large-scale renewable energy projects.

On December 14, the U.S. Senate Finance Committee held a hearing entitled, "Alternative Energy Tax Incentives: The Effect of Short-Term Extensions on Alternative Technology Investment, Domestic Manufacturing, and Jobs." Many utilities and industry stakeholders have repeatedly expressed their desire to have greater certainty when it comes to energy policy and this hearing focused on the end impacts that have resulted from the cyclical nature of tax credits for alternative energy sources. The discussion was also prompted by the impending year-end expiration of certain incentives such as the 1603 Treasury Grant Program, which have catalyzed solar installations throughout the U.S.

Delegates from around the world agreed to a last-minute platform, which puts into place a process for establishing a legally enforceable outcome for limiting greenhouse gas emissions by 2015 to take effect by 2020. Opinions differ on the effectiveness of the agreement, but proponents of international action on climate change have also pointed out that specific agreements on financing and information sharing were achieved. 

Governor Chris Christie announced the adoption of the State's Energy Master Plan on December 6. The plan intends to guide and provide vision for state energy policies over the next decade. Solar stakeholders have been especially interested in proposed recommendations, given New Jersey's large solar market and volatile SREC prices. Key components include an acceleration of renewable energy requirements (without changing the underlying long-term mandate), a reduction of the solar alternative compliance payment, and developing new sources of in-state clean energy.

States are bringing parties together to improve processes for permitting and developing new transmission that will help meet clean energy goals. A recently established "New Energy Industry Task Force" in Nevada is tasked with examining key transmission issues to support in-state development of renewables while in Colorado, the "Task Force on Statewide Transmission Siting and Permitting" submitted a report to the State Legislature with recommendations on processes that will help utilities and local governments resolve issues that delay transmission projects.

The U.S. Department of the Interior (DOI) has updated its draft solar energy development plan, setting out the boundaries of 17 zones for solar energy development on public lands while revising the rules to allow development outside those zones. The Bureau of Land Management (BLM) and the Department of Energy (DOE) are accepting public comments on the Supplement to the Draft Programmatic Environmental Impact Statement (Solar PEIS) through Jan. 27, 2012. This guidance will facilitate environmentally responsible utility-scale solar energy development by establishing environmental policies and design features in six western states-Arizona, California, Colorado, New Mexico, Nevada, and Utah.

The Ontario Power Authority (OPA) has announced that it has begun its scheduled two-year review of Ontario's feed-in tariff scheme. Consultations will continue until Dec. 14, 2011.

Germany will reduce its solar feed-in-tariff rates on Jan. 1, 2012 by 15%, following the government's review of installed capacity figures from Oct. 1, 2010 to Sept. 30, 2011. Added solar capacity from this time period totaled approximately 5.2 GW - with 3.3 GW installed during the first five months of 2011. Depending on the location and size of the solar plant, the new feed-in-tariff rate will be between 17.94 euro cents and 24.43 euro cents.

The Federal Energy Regulatory Commission (FERC) has issued Order 755 to provide for "just and reasonable" rates for frequency regulation service. Fast-ramping energy storage technologies like flywheels and batteries are seen by the Commission as additional tools for RTOs and ISOs to help balance supply and demand on the transmission system. For this service, Order 755 requires RTOs and ISOs to have a two-part tariff structure for capacity and performance payments.

A small group of Senators from both sides of the aisle have introduced new legislation - S. 1775, the Public Lands Renewable Energy Development Act - which would promote development of renewable energy on public lands by establishing a competitive leasing pilot whereby new royalties and fees collected would help pay for expedited permitting as well as provide revenue for states and mitigation measures.

As part of the U.S. Department of Energy's (DOE) SunShot Initiative, Energy Secretary Steven Chu on November 15 announced up to $7 million to reduce the non-hardware costs of residential and commercial solar energy installations. Made available through the SunShot Incubator Program, this funding will support the development of tools and approaches that reduce non-hardware, or "soft" costs, such as installation, permitting, interconnection, and inspection. These expenses can amount to up to half of the cost of residential systems.

On November 9, the International Energy Agency (IEA) released its World Energy Outlook, which gives the latest energy demand and supply projections for different future scenarios, broken down by country, fuel and sector. It also focuses on such topical energy sector issues as the role of coal in economic growth, fossil fuel subsidies and the progress of renewable energy. The agency called for stronger government support to drive investment in energy efficiency and low-carbon generation. According to the report, for every $1 of investment in cleaner technology not made in the power sector before 2020, an additional $4.30 would need to be spent after 2020 to compensate for the increased emissions.

On November 8, the Australian Senate passed the Clean Energy Legislative Package, which is aimed at boosting support for renewable energy in the country. Large-scale photovoltaic and solar thermal projects are expected to benefit from the new laws. However, residential solar installations likely won't receive much financial support due to the fact that they are more mature than other renewables and are therefore less in need of government support.

On October 31, the UK government announced plans to introduce an early-December cutoff for the current feed-in tariff rate for small-scale solar photovoltaic installations. The proposals, subject to consultation, would introduce a new tariff for installations up to 4 kW in size of £0.21 per kWh - down from the current £0.43 per kWh. Reduced rates are also proposed for schemes between 4 kW and 250 kW, to ensure those schemes receive a consistent rate of return.

On October 11, U.S. Energy Secretary Steven Chu announced his decision that the Department of Energy (DOE) will work more closely with the Federal Energy Regulatory Commission (FERC) in reviewing proposed electric transmission projects under section 216 of the Federal Power Act (FPA), as an alternative to delegating additional authority to FERC.

Representatives from FERC, Department of Energy, state regulators, and the electric power sector testified on Thursday, October 13, to provide their perspectives on building new transmission facilities. Core focus areas for the Committee included siting of projects and cost-allocation methods for determining who pays for them. Much of the discussion focused on FERC's Order 1000, which seeks to alter regional planning and cost allocation requirements.

The Senate Environment and Public Works Committee continued its series of "green jobs" discussions on October 13 to learn about potential job growth opportunities that could come from "on-bill financing" programs. These initiatives allow property owners to take out loans from their utility to finance energy efficiency upgrades or renewable energy installations which are then paid back via utility bills.

The Obama administration outlined plans to streamline processes for seven transmission projects throughout the United States that will help connect renewable energy sources to the grid. As part of the initiative, coordination of permitting processes for all relevant Federal agencies will be centralized through the Administration's "Rapid Response Transmission Team," including tracking on a publicly available website. Additional projects are planned to be added after the initial seven pilot projects are through the permitting process.

With rare bipartisan support, the U.S. House of Representatives approved a Continuing Resolution (CR) on a vote of 352-66 to fund government agencies and programs through November 18. Of note, the final version that was sent to President Obama for his signature did not include an earlier included provision to cut funding for DOE loan guarantees for advanced vehicles or renewable energy projects.

On September 27th, the Department of Energy (DOE) issued a final rule to revise implementing regulations for the National Environmental Policy Act (NEPA). The intent of this rule is to make the DOE review process more efficient by adding 20 "categorical exclusions" to reduce the amount of regulatory requirements on actions that would not likely have significant environmental impacts. Solar photovoltaic and solar thermal systems are two of the technologies included on the list.

California Gov. Jerry Brown enacted three bills into law that will help to promote solar in the state by making it easier for school districts to finance solar installations, continuing the funding mechanism under the state's Self-Generation Incentive Program (SGIP) and streamlining permitting processes for renewable energy projects.

On September 29, the U.S. Department of Energy (DOE) announced awards of $156 million for 60 cutting-edge research initiatives that are aimed at dramatically improving how the United States produces and uses energy. The new selections focus on accelerating innovations in clean technology, including thermal storage, grid controls, and solar power electronics, while increasing U.S. competitiveness.

The U.S. Department of Defense (DOD) is accelerating clean energy innovations to reduce risks to the military, enhance energy security, and save money, according to a report released September 21 by The Pew Charitable Trusts. DOD's clean energy investments increased 300% to $1.2 billion between 2006 and 2009.