Understanding the New Solar Homes PartnershipUnderstanding the New Solar Homes PartnershipApplication ProcessApplication Process

Maggie DimitrovaMarch 15th, 2011

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AgendaPG&E’s Integrated Approach

NSHP Program Overview

NSHP Eligibility Requirements

NSHP Application Process

Energy Efficiency & Solar

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About PG&E

Employees 19,800

Electric and gas distribution customers 5.1 MM electric 4.2 MM gas

Electric transmission circuits 18,610 miles

Gas transmission backbone 6,136 miles

Owned Electric generation capacity 6,000+ MW

Total Peak Demand 20,000 MW

What we do:Deliver safe, reliable, and environmentally responsible gas and electricity to approximately 15 million Californians

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PG&E serves 5% of the U.S. population, but emit less than 1% of the total CO2 emitted by the utility sector

PG&E’s Power Mix

* 2009

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PG&E’s Integrated Approach

Reduce Energy

Use

Renewable Power Supply

NeutralizeEnergy

Use

Energy Efficiency &

Conservation

Solar &

WindClimate Smart

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NSHP Program Overview

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CPUC(CA Public Utilities Commission)

Existing Residential Existing Commercial Commercial New Construction

Residential New Construction

4. New Solar Homes Partnership (NSHP)

PG&E SCE CCSE

Program Administrators

CEC(California Energy Commission)

SDG&EPG&E SCE

SB 1

Program Administrators

Low Income Solar (LISP)

1. California Solar Initiative (CSI)

3. Single Family2. Multi-family

Existing Low Income

Grid Alternatives

BVES

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NSHP ProgramProgram timeline -

•January 1, 2007 –

December 31, 2016

Purpose -•Provide incentives and support activities for

installing eligible solar photovoltaic (PV) systems on new homes

Statewide Goals -•Create a self-sustaining market for energy

efficient, solar homes•400 MW; $400 million budget

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NSHP AdministrationProgram Manger •The CEC –

Guidebook, NSHP web tool, CEC

PV Calculator, Marketing & Outreach

Program Administrators –

PG&E, SCE, SDG&E,

and BVES*•PG&E took over the program administration on June 16, 2008

* Administered by the CEC

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NSHP EligibilityEligible Technology -

•Solar electric systems (Photovoltaic)

Eligible Housing Type -•New residential construction, including

total building renovations, common area of housing developments, and qualifying mixed-use properties•Custom and production homes•Single and multifamily buildings

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NSHP Incentive StructureIncentives -•One time, up-front, expected performance based incentives (EPBI)•Decline to zero over 10 years as megawatt goals are achieved

Market Rate Housing -•Base Incentive (18 months)•Solar as a Standard Feature (36 months)

Affordable Housing -•Residential Units (36 months)•Common Area (36 months)

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Market Rate Housing Incentive Level

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Affordable Housing Incentive Level

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NSHP Eligibility Requirements

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NSHP GuidebookThe NSHP Guidebook -

•Describes the eligibility requirements, reservation application and payment process

•Explains the field verification and diagnostic testing process

•Provides copies of the required forms

The latest NSHP Guidebook, adopted January 27th, 2010, can be downloaded from the Go Solar Website

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NSHP Requirements• PV system size 1 kW AC or larger

•

Sized to offset the end-use consumer on-site

electric load

• Grid connected with eligible utility

•NSHP incentives capped at 7.5 kW (except for common area and VNM)

•

Expected performance based incentives,

calculated with the CECPV calculator

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Cont’d…•

Equipment seller/installer must be

registered with the CEC

•

New, certified system components listed on

the CEC’s eligible equipment list

•

Ten year warranty on system components &

labor

•

Building must achieve energy efficiency

above current Title 24

•

Third-party field verification of energy

efficiency measures and PV system (HERS Rater)

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NSHP Energy Efficiency RequirementTier 1

-

minimum building energy efficiency

(EE) requirement•15% better than Title 24 EE Building Code

Tier 2

–

•2005 Title 24 -

35% better than T-24, 40%

reduction in cooling load •2008 Title 24* -

30% better than T-24, 30%

reduction in cooling loadEnergy Star®

appliances

* 2008 Title 24 in effect January 1, 2010

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Affordable Housing Requirements•Provide Regulatory Agreement or other relevant document•20% of the project units must be subject to the affordability requirement•Affordable housing restriction requirement is for 10 years•Each residential dwelling unit must be individually metered

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Cont’d…

•Virtual Net Metering is allowed for Affordable Housing projects•

The solar permit must be pulled within 2

years of occupancy permit •Develop and retain a Maintenance & Monitoring Plan

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Third Party System Ownership Requirements•Lease/Power Purchase Agreements executed or have a start date on or after July 1, 2009•Must have an initial term of no less than 10 years•Provide the lessee/customer the options to renew the agreement, purchase the system, or remove it

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Cont’d…

•Demonstrates that the incentives will benefit the lessee/customer •Annual status report for the first 5 years•Penalties for early termination –

repayment of the incentives if the system is removed within 5 years

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Application Process

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Before you Apply•Establish electric service from PG&E

•Submit application for Net Energy Metering

•Participate in PG&E’s Energy Efficiency Program for additional incentives

•Review the NSHP Guidebook

•Apply online at https://newsolarhomes.org

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Application Process for All Projects, Except for Solar as an Option

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•NSHP-1 Form•Building Permit/Final Subdivision Map•EPBI Documentation

•CF-1R-PV Form•.emf and .her files

•Equipment Purchase Agreement and Installation Contract•Energy Efficiency Documentation*

•CF-1R/PERF-1 Form•.bld or .mp7/.mp8 file•Construction plan set

Incentive Reservation

• For TCAC projects EE documentation within 60 days of reservation approval

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Additional DocumentsAffordable Housing Projects Third-Party Ownership Projects

•

Appropriate housing type documents

•

Regulatory Agreement•

Energy efficiency documentation can be submitted later for TCAC projects

•

Lease/Power Purchase Agreement

•

Equipment purchase agreement waived

•

Installation contract includes equipment for each site

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Application Process for Solar as an Option

Reservation Documents•NSHP-1 Form•Final Subdivision Map•Equipment Purchase Agreement and Installation Contract•Build-Out Schedule

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Application Process for Solar as an Option

Update Documents•NSHP-1.5 Form•EPBI Documentation

•CF-1R-PV Form•.emf and .her files

•Energy Efficiency Documentation

•CF-1R/PERF-1 Form•.bld or .mp7/mp8 file•Construction plan set

•Project Status Report 18 months into reservation

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Payment

ClaimRequired Documents -•

NSHP 2 Payment Claim Form

•

NSHP 3 -

10 year warranty

•

Payee data record (STD-204)

•

Certificate of field verification & diagnostic testing•

Energy Efficiency -

CF-4R and CF-4R-NSHP•

PV system -

CF-4R-PV one per system•

New CF-1R-PV and input files if equipment changes

•

Permission to operate letter received•

Lease agreement, if applicable

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Energy Efficiency & Solar

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Why energy efficiency?

Homeowner•Savings –

lower energy bill

•Comfort –

energy efficient, solar home

•Environment –

reduced carbon footprint

Builder/Developer•Differentiation from competition•Incentives for both energy efficiency and

solar•Ease of access and reduced paperwork

Solar Contractor•Differentiation from competition•Customer satisfaction

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California Advanced Homes ProgramHeschong Mahone Group, Inc. (HMG) is administering the program as of February 1, 2011

Program Timeline -

January 1, 2010 through

December 31, 2015

Building Types -•Single-family detached homes•Duplex

Non –

Qualifying Facilities

•

Remodels, additions, mobil homes,

residential care facilities, hotels, motels, dormitories

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CAHP Incentive Structure

•

The baseline is 15%

better than 2008 T-24 EE Code•

Incentives increase

incrementally as the performance of the structure increases•

A calculator is

provided with the agreement

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Additional Incentives

California ENERGY STAR®

New Homes –

10%

Green Home Certification –

10%

Compact Homes –

15%

kW reduction (Working Toward Zero Peak

Homes)

New Solar Homes Partnership (NSHP) Tier II -

$1,000

Design Team Incentive –

50% of cost up to

$5,000

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California Multifamily New Homes Program

Administered by PG&E and implemented by HMG

Program timeline –

complete construction and

verification by December 31, 2015

Building types –

multifamily buildings of 3 or

more units

Non-qualifying facilities –

single homes, existing

multifamily homes, not in PG&E’s service territory

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Incentive StructureDeveloper incentives:

The baseline is 15% above code - $100 per unitIncremental incentives based on the energy savingsHERS verification incentive: $60 per unit (max of

$12,000 per project)

Energy Consultant incentives:$50 per unit (max of $10,000 per project)

CMFNH 2010-12 Incentives

15% 20% 25% 30% 35% 40% 45%

Percent Better Than Title 24

Ince

ntiv

e Am

ount

$/kWh $/therm $/kW

20%$0.24/kWh$0.97/therm$38.96/kW

25%$0.30/kWh$1.22/therm$50.29/kW

30%$0.37/kWh$1.46/therm$61.63/kW

35%$0.43/kWh$1.70/therm$72.96/kW

40%$0.49/kWh$1.94/therm$84.29/kW

45%$0.55/kWh$2.18/therm$95.63/kW

15%$0.18/kWh$0.73/therm$27.63/kW

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Additional ResourcesPG&E NSHP Website: www.pge.com/nshp1-877-743-4112

State Solar Website: www.gosolarcalifornia.ca.gov

NSHP web tool: https://newsolarhomes.org

California Advanced Homes Program: www.pge.com/newhomes1-800-342-7737

California Multifamily New Homes Program:www.h-m-g.com/multifamily/CMFNH

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