White Cliffs Condo Four Financial Planning September ’07 Owners’ Meeting.
Solar for All : Including Renters and Condo Owners
description
Transcript of Solar for All : Including Renters and Condo Owners
Solar for AllSolar for All: Including Renters : Including Renters and Condo Ownersand Condo Owners
Bruce Karney
July 8, 2009
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AgendaAgenda
1. What’s the problem?
2. What’s the solution?
3. Why adopting Solar for All is urgent
4. Why solar leasing is critical
5. How homeowners benefit too
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What’s the problem?What’s the problem?
All residential electricity customers pay into the solar rebate fund
For all practical purposes, only single family homeowners can receive a residential solar rebate
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Not a homeowner? Ride back hereNot a homeowner? Ride back here
Solar Bus
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45%
13%
38%
4% Owner occupiedsingle familyhomeOwner occupiedcondominium
Renters
Mobile home
Single family homeownersSingle family homeownersare a minority in Californiaare a minority in California
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… … but a privileged onebut a privileged one
Households earning less than $50,000– 41% home ownership rate
Households earning $150,000 or more– 87% home ownership rate
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Biggest residential CSI rebatesBiggest residential CSI rebates
1. $375,215 for 210 kW in Atherton
2. $319,188 for 200 kW in Newcastle
3. $238,358 for 156 kW in Napa
4. $137,895 for 69 kW in Woodside
5. $137,216 for 62 kW in Bishop
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What’s the solution?What’s the solution?
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Solar for AllSolar for All
1. Allow ALL residential customers to offset their bill – just like homeowners already can – with power generated by equipment they own at “solar farms”
2. Allow solar farm customers the option to lease their equipment – just like homeowners already can
3. Authorize Remote Net Metering for solar farm customers
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Solar farms can be urban or ruralSolar farms can be urban or rural
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Low-cost “commercial solar” Low-cost “commercial solar” technologies are welcometechnologies are welcome
Divisible into < 6 kW sub-systemsCSI-eligible
Solyndra Cool Earth
Skyline Solar
Lumeta
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What is What is Remote Net Metering?Remote Net Metering?
Energy consumption measured by one meter
Energy generation measured by another meter
Meters separated by miles, not feetGeneration subtracted from
consumption to determine the bill
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Example: JanuaryExample: January
The Gomez family used $88 of electricity in their apartment
Their portion of the solar farmgenerated $30 of electricity
Their net bill is $58
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Example: JulyExample: July
They used $65 of electricity
Their portion of the solar farm generated $115 of electricity
This gives them a credit of $50 for the month
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-$60
-$40
-$20
$0
$20
$40
$60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly bill or credit
Everything balances over the yearEverything balances over the year
Credit
Bill
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Economies of scale: 4 kW of PVEconomies of scale: 4 kW of PV
Single Family
Roof
1,000 kW
Solar Farm
Percent Improve-
ment
Price per DC kW $7,500 $6,000 20%
Price for 4 kW (DC) system $30,000 $24,000 20%
CSI incentive ($5,000) ($5,000)
Federal Tax Credit ($7,500) ($5,700)
Net Price $17,500 $13,300 24%
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Better siting improves outputBetter siting improves output
Single Family
Roof
1,000 kW Solar Farm
Percent Improve-
ment
Net Price $17,500 $13,300 24%
Avg. kWh per DC kW per year 1,250 1,450 16%
kWh produced over 30 years 150,000 174,000 16%
$ / kWh
(ignoring time value of $)
$.117 $.076 35%
$ / kWh
(assuming 5% discount rate)
$.225 $.148 34%
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PrecedentsPrecedents
Sacramento: SolarSharesCity of Alameda: separate meters
measure generation and productionSoCal Edison: putting 150 giant PV
systems on large commercial roofs– All utility-owned, none customer-owned
MA: Neighborhood Net Metering
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Why adopting Why adopting Solar for AllSolar for All is urgentis urgent
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Million solar roofs: 3 programsMillion solar roofs: 3 programs
1. CPUC: CSI program $2,167 Million, 1,940 mW, PG&E, SCE & SDG&E territory, existing homes, new & existing commercial, government, agriculture
2. Publicly Owned Utilities, $784 Million, 700 mW, all systems in POU areas
3. CEC: NSHP program, $400 Million, 360 mW, IOU territory, new homes
Total: $3,351 Million, 3,000 mW
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CSI programCSI program
1/1/2007 – 12/31/2016 7 ½ years left General Market Program (1,750 mW)
– 1,173 mW non-residential (67%)– 578 mW residential (33%)
Low Income Programs (190 mW)– 95 mW Single Family (50%)– 95 mW Multi-family (50%) RNM allowed!
Over half of PG&E residential “General Market” incentives are already paid or reserved
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Rebates are going fastRebates are going fast
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
0 100 200 300 400 500
Cum. mW Residential PV
2 3 4 56
7 8 9 10
SCE SDG&E PG&E
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578 mW = 1 million roofs?578 mW = 1 million roofs?
144,500 at 4 kW per systemAbout 10 million housing units in CSI
territory1.5% will benefit from solar rebates
– 3% of single family homes– 0% of renters and condo owners
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Why solar leasing is criticalWhy solar leasing is critical
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Eligibility for 30% tax creditEligibility for 30% tax credit
ITC eligibility for customer-owned equipment at a Solar Farm is questionable
“Qualified solar electric property expenditure" means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.
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Do any residential systems qualify?Do any residential systems qualify?Example: 77% of generation is exported!Example: 77% of generation is exported!
Example of daily solar generation & energy consumption
0
1
2
3
4
5
1 3 5 7 9 11 13 15 17 19 21 23
Hour of day
Kilo
wat
ts
25 kWh of Solar Generation 25 kWh of Consumption
Exported
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No uncertainty about leased systemsNo uncertainty about leased systems
There are no federal tax issues with the leased version of Solar for All
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Solar leasing value propositionSolar leasing value proposition
$0
$50
$100
$150
$200
$0
$50
$100
$150
$200
$0$100$200$300$400$500
2009 2014 2019 2024
Savings
Lease Payment
New Electric Bill
Old Electric Bill
New Electric Bill
Lease Payment
$195 per month
$30/mo. Savings
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Current price for leased solarCurrent price for leased solar
100% 200% 300% 400%
25¢
50¢
Tier 111.5¢
Tier 213.1¢
Tier 326.0¢
Tier 437.9¢
Tier 544.1¢
Percent of Baseline Electricity Usage
Ce
nts
pe
r Kilo
wa
tt-ho
ur
Leased PV today – 21-25 ¢
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Solar for AllSolar for All: Lease PV for 15: Lease PV for 15¢/kWh¢/kWh
100% 200% 300% 400%
25¢
50¢
Tier 111.5¢
Tier 213.1¢
Tier 326.0¢
Tier 437.9¢
Tier 544.1¢
Percent of Baseline Electricity Usage
Ce
nts
pe
r Kilo
wa
tt-ho
ur
Leased PV at Solar Farm: 15¢
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How homeowners benefit tooHow homeowners benefit too
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Solar for AllSolar for All solves homeowners’ solves homeowners’ most common concernsmost common concerns
1. Aesthetics
2. Worries about roof warranty or leaks
3. Roof replacement needed soon
4. Outdated service panel or other “adders”
5. Too much shade
6. Roof poorly oriented or pitched
7. Concerns about roof strength
8. “What happens when we move?”
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Size of the homeowner marketSize of the homeowner market
What fraction would sign up for Solar for All?
1/5 = 23,4001/3 = 39,0001/2 = 58,500
23,400 homeowners have bought PV under the CSI program
~ 117,000
homeowners have gotten a site visit but NOT purchased yet
* Assume 1 win per 6 site visits
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The future of The future of Solar for AllSolar for All
Assemblyman Paul Fong has agreed to introduce legislation!
Kudos to: Monica Smith and Andrea Graham of his staff
How you can help…– Provide your contact information to
Assemblyman Fong’s office: [email protected]
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Everybody move to the front of the bus!Everybody move to the front of the bus!
Bruce Karney
650 450-0332