Overview of  Solar Incentive Programs
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Overview of Solar Incentive Programs

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Track: Finance and Rebates

Track: Finance and Rebates
Presenter: CCSE Staff

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  • Good Morning, my name is Katrina Perez and I am the Non-Residential program manager for the CSI team. In my presentation today I’ll give you a brief overview of the Non-Res CSI program requirements, some program statistics for Non-Res that Ben touched on for the Residential program and talk about some upcoming features that will help to streamline the application process for CSI.
  • First I want to mention briefly the incentives available for Non-Residential systems. There’s the 30% Federal income tax credit Modified Accelerated Cost Recovery System and Bonus Depreciation (business recovers investments through depreciation deductions 5 year schedule) PV is exempt from Property Tax And there’s the CA Solar Initiative Rebate which CCSE administers in SDGE territory
  • Not eligible: Customers who have entered into utility contracts for distributed generation (DG) services (e.g., DG installed as a distribution upgrade or replacement deferral) and who are receiving payment for those services. • Customers who have entered into agreements that entail the export and sale of electricity from the Host Customer Site. This does not include net energy metering agreements, which are allowed. Customers who have received a final interconnection authorization letter more than 12 months prior to submitting a CSI Reservation Request Form. • Publicly-owned or investor-owned gas, electricity distribution utilities or any electrical corporation (ref. Public Utility Code 218) that generates or purchases electricity or natural gas for wholesale or retail sales.
  • Just a quick overview the application process: There’s a 2 step process for non-res systems less than 10kW….. The 3 step process is optional for larger systems because larger projects typically need more time for contract negotiations, construction etc. To ensure there is intent to complete installation of the system, an application fee is required… CHANGE SLIDE
  • As you can see the larger the system, the greater the application fee amount. The application fee will be returned once the project is completed to the Host Customer.
  • A Power Purchase Agreement (PPA) is an alternative way to finance and install a solar system by paying a “third party” a pre-determined price for energy, without any upfront costs. 42% of completed commercial projects over 10kW in SDG&E territory have utilized the Power Purchase Agreement model. PPA customers of late have been gov’t / public entities which are established institutions who are unable to take advantage of the federal tax credits.   What is a Solar Leasing Agreement? A Solar Leasing Agreement is a way to pay for ownership of a solar system and/or use over time, usually with intention of purchasing the system or renewing the lease at the end of the term. We are seeing more of these types of agreements on the Residential side. About 4% of completed installed projects in SDGE territory have been under Lease Agreements.
  • We have 2 types of incentive payments. The first is the Upfront incentive, also known as the EPBB incentive. The payment is paid after the project is completed and the payment claim is approved by CCSE. This incentive is available for systems less than 50kW. Currently the incentives for commercial systems in SDGE territory is $1.55 per watt installed Gov’t / Non-profit entities receive $2.30 per watt installed The reason Gov’t / Non-profit entities receive a higher incentive is because they do not receive the tax credit benefits.
  • The second type of incentive payment is called PBI and is based on the actual performance of the system. Any system can opt into PBI, but it is currently mandatory for systems >=50kW. Beginning January 1 st 2010 systems >=30kW will be required to receive PBI payments. The payments are made monthly over a 5 year period base on production. A customer is required to contract with a qualified third party to monitor the system production who then submits the results to CCSE monthly for payment. Currently the incentives for commercial systems pay $.22 per kWh while government / non-profit entities receive $.32.
  • Here is a snapshot of the CSI Trigger Tracker showing the most up to date information regarding the MW remaining in the current step. As you can see as of yesterday we have 15.83 MW in step 5, we’ve issued 4.97 MW with 10.85MW remaining. Since 2.25 MW are currently under review, one can estimate about 8.6 MW left in the step.
  • So similar to what Ben was looking at, we see CCSE’s Non-Residential application status in comparison to the other PA’s. We currently have 12.7 MW installed in the program and 14.5 MW pending.
  • Here is a look at the same data where you can see more clearly the progress toward statewide goals. SDGE territory is the smallest territory of the 3 investor owned utilities; therefore less MW are allocated to our region. But the graph shows that we are not far behind PG&E when comparing the % of meeting MW goals and we are ahead of SCE.
  • Here’s a look at the MW capacity of applications received from the beginning of the program until now. The spikes occur around the step change. As you can see we have a rise in applications for the month of September, given past trends I would anticipate a step change before the end of the year. I’m not going to show the number of applications received because the data is so inconsistent. For Non-Residential projects 10 applications may reserve 1 MW or 10 MW.
  • Here you can see that the City of San Diego leads the territory in future projects to be installed with about 29%. Next is Santee who have projects equaling 16.8%
  • Regarding installed Non-Residential Projects, San Diego leads the territory with 4.2 MW which is 33%. The City of Poway has installed 1.2 MW, which is almost 10% of non-res installed in SDGE territory.
  • The Future of CSI is Paperless applications The program hopes to go paperless by January 1 st 2010.
  • We’re going paperless the primary reasons to: Reduce the carbon footprint of the program by printing less paper, and reducing the transportation of documents by carbon emitting vehicles. Another reason is to become more efficient and reduce costs
  • Here is what the new process would look like. The applicant would first fill in forms using powerclerk Prepare supporting documentation and then attach / upload the documents straight into the tool. From there, the PAs can review the application quickly and easily.
  • The next feature is the Data Upload Feature which allows external software programs to upload application data straight to Powerclerk. Many installers have programs that autopopulate our excel forms. This feature will streamline the process for all so that neither the Applicant nor the Administrator will have to reenter all of the customer information into the tool. Both this feature and the application document upload feature is currently being developed by our programmers. We expect to begin testing the features in the next week and hope to release by November. CCSE and the other PAs will provide training for applicants in the future.

Overview of Solar Incentive Programs Presentation Transcript

  • 1. Overview of Solar Incentive Programs Terry Clapham Ben Airth Katrina Perez Katrina Phruksukarn 10/09/09
  • 2. Agenda
    • History of Solar Incentives Programs in CA
    • Current Solar Incentive Programs
      • California Solar Initiative (CSI)
        • Residential
        • Non-Residential
      • Solar Water Heating Programs
        • Pilot Program
        • CSI Thermal
    • Questions
  • 3. Historic Solar Incentive Programs
    • Emerging Renewables Program (ERP)
      • Enabling Legislation –AB 1890 and SB90 (1997)
      • CEC Program launched in 1998
      • Grid connected renewable projects up to 30kW
    • Self Generation Incentive Program (SGIP)
      • Enabling Legislation – AB 970 (2000)
      • CPUC Program launched in 2001
      • Grid connected renewable projects 30kW and up
  • 4. PV Installations in SDG&E Territory
  • 5. Go Solar California!
    • Million Solar Roofs Bill (SB1)
      • Signed by Gov. Schwarzenegger on September 21, 2006
      • Ended solar incentives through the ERP and SGIP
      • Launched the California Solar Initiative (CSI)
      • and New Solar Homes Partnership (NSHP).
  • 6. California Solar Initiative (CSI): Overview of Residential Solar Market
  • 7. California Solar Initiative (CSI)
      • As part of the “Go Solar California” campaign, the California Solar Initiative (CSI) was instituted to help facilitate the installation of 1,750 MW statewide and create a sustainable solar industry
      • Of the 1,750 MW, CCSE is due to install 180 MW by end of 2016
      • 59 of which will come from the residential sector (roughly 15,000 average size systems)
  • 8. CSI Rebates
    • Rebates are offered on a declining scale
    • Current CSI Incentive (upfront): $1.55/Watt
      • Next rebate amount is $1.10/Watt
  • 9. CSI Rebates
    • Offsets roughly 15% to 20% of the total installed costs
    • Rebates will decline as more solar gets installed
  • 10.  
  • 11. Other Incentives
    • 30% Federal Tax Credit – can be taken after CSI Incentive is deducted
  • 12. CSI Application Process
    • Residential and Small Non-Residential projects (< 10 kW)
      • Two Step Application Process
    • Non-Residential projects (> 10 kW)
      • Three Step Application Process
    • For more information, please visit www.energycenter.org/solar
  • 13. CSI Progress toward 1,750 MW Installed
  • 14.  
  • 15. CCSE PG&E SCE
  • 16. CSI Applications by Month: Residential
  • 17.  
  • 18.  
  • 19.  
  • 20. CSI County Statistics: Residential
  • 21.
  • 22.
  • 23. CSI Statewide City Statistics: Residential
  • 24.
  • 25.
  • 26. Installed Cost per Watt
  • 27. Historical Cost Per Watt in CPUC Programs Source: Itron, Preliminary Program Impacts Results Report , June 2009.
  • 28.  
  • 29. Current Cost Per Watt by System Size: Residential
    • PV costs range from $8.50 to $11.50 per watt fully installed… before taking rebates or tax credits. The average cost of all residential systems to date is $9.28 per watt.
    • Current $/Watt by Residential System Size in California
    • Systems 1 kW – 5 kW = $9.71/Watt
    • Systems 5 kW – 10 kW = $9.12/Watt
    • Systems 10 kW and up = $9.03/Watt
    • Average Residential System Size = $9.28/Watt
  • 30. Thank You!
    • Ben Airth
    • Residential Solar Program Manager
    • California Solar Initiative
    • [email_address]
    • 858-244-1194
  • 31. California Solar Initiative: Non-Residential Solar Incentive Program
  • 32. Non-Residential Incentives Available
      • 30% Federal Income Tax Credit
      • Accelerated Depreciation (5 years – MACRS)
      • PV Exempt from Property Tax
      • CA Solar Initiative Incentive
  • 33. CSI Non-Residential Program Eligibility
    • Non-residential projects = Commercial (including Industrial & Agricultural), Government, Non-profit and Public Entities
    • System size must be between 1kW and 1MW
    • Retrofit or New Construction
    • Alternative System Ownership (Power Purchase Agreements) allowed
  • 34. Application Process Overview
    • 2-Step Application Process
      • Non-Residential Systems < 10kW
      • 18 month reservation
      • No application fee
    • 3-Step Application Process
      • Non-Residential Systems > 10kW
      • 18 month reservation
      • Application Fee Required based on System Size
  • 35. Application Fee Amounts
    • Standardized amount based on system size
  • 36. Financing Options – PPA & Leasing Agreements
    • Power Purchase Agreement
      • 3 rd party finances solar system and sells the energy to site for a pre-determined price
      • No upfront cost
    • Solar Leasing Agreement
      • Pay for ownership of solar system over time with the intention of purchasing the system at the end of the lease term
      • Minimal upfront cost
  • 37. CSI Incentive Payments – 2 types
    • Upfront Incentive
      • Expected Performance Based Buydown (EPBB)
      • Paid after project completion
      • Current Incentives
        • $1.55 / watt for Residential & Commercial
        • $2.30 / watt for Gov’t , Non-Profit entities
  • 38. CSI Incentive Payments – 2 types
    • Actual Performance
      • Performance Based Incentive (PBI)
      • Paid in 60 monthly installments for kWh produced
      • Current Incentives
        • $0.22 / kWh for Residential and Commercial
        • $0.32 / kWh for Gov’t, Non-Profit entities
  • 39.  
  • 40. For real time CSI incentive information visit:
    • www.csi-trigger.com
  • 41.  
  • 42.  
  • 43. CSI Applications by Month: Non-Residential
  • 44.  
  • 45. CSI Statewide City Statistics: Non-Residential
  • 46.  
  • 47.  
  • 48. For more information visit: www.californiasolarstatistics.ca.gov
  • 49. The Future of CSI: Paperless Applications
  • 50. Why Paperless?
    • Reduce Carbon Footprint of the Program
      • PDF submittal means less documents to be printed
      • Lowers fuel consumption by eliminating transportation of documents from one location to another
      • More Efficient Application = Reduced Cost
      • Single location for most current forms
      • Eliminate postage cost and other Admin cost for preparing mail
      • No more duplicate data entry from Excel Forms
  • 51. Future Paperless Submittal Process
    • APPLICANT
    • PA Begins Review Process
    • Fill out CSI Forms using PowerClerk
    • Prepare Supporting Documentation
    • Email or attach documentation to PC
  • 52. PowerClerk Data Upload Feature
    • Purpose of the feature
    • Allows external software programs to upload application data to populate CSI Reservation Request Forms
    • Streamlines process & eliminates duplicate entry of data by Applicant and CSI Administrators
    • **Recommended for large installers whose custom tools auto-populate excel rebate and interconnection paperwork
  • 53. Thank you! Katrina Perez CSI Non-Res Program Manager [email_address] 858.244.1193
  • 54. Solar Water Heating Incentive Programs Katrina Phruksukarn 10/09/09
  • 55. Outline
    • What is Solar Water Heating?
    • Solar Water Heating Pilot Program
      • Eligibility
      • Incentives
    • CSI-Thermal Program
      • Expected timeline
      • Proposed elements
    • Economics of Solar Water Heating
  • 56. What is Solar Water Heating?
    • Solar Assist or Solar Pre-heat
    • Always keep the existing heater as backup to solar
    • Great way to conserve energy, reduce your utility bill, increase the value of your home, and reduce Global Warming!
  • 57. How does it work?
    • First, understand conventional water heaters:
    • Conventional water heaters maintain hot water in the storage tank around 120-140 degrees F.
    • When the water temperature drops below that, your electricity or natural gas will kick on to heat the water to the appropriate temperature.
    • This happens while you are at work all day, even though there is no demand for hot water
  • 58. Basic SWH Design
    • Sun heats water or a heat transfer fluid in a solar collector on the roof
    • Solar heated water is stored in solar tank
    • Solar heated water circulates between solar tank and back up water heater
    • Back up water heater boosts the temperature of the water, if needed
    • Use solar heated water !
  • 59. Source: Occidental Power
  • 60. What is the Solar Water Heating Pilot Program?
    • The Solar Water Heating Pilot Program, part of the larger California Solar Initiative, was designed to gather information on the market, technologies and financials of SWH in order to expand to a statewide program.
      • Total SWHPP budget is $1.5 million for incentives
      • Program rolled out on July 2, 2007 and will run through Dec. 31, 2009
    • CSI-Thermal Program was proposed July 15, 2009- statewide incentive program
  • 61. SWH Pilot Program - Eligibility
    • Eligible:
      • SDG&E electric customers only, nowhere else in the state
      • Natural Gas, Electric, and Propane users are all eligible
      • New construction and retrofit projects
    • Not Eligible:
      • Pools and Spas are not eligible
      • Other thermal technologies, such as space heating and cooling, are not eligible
      • Replacement of single components is not eligible
  • 62. SWH Pilot Program-Requirements
      • Eligible Contractor
      • SRCC Certified System
      • Two step application process
      • City or County Permit
      • SWHPP Inspection
  • 63. Incentives - Residential
    • Maximum Incentive: $1,500
      • Solar Orientation Factor (SOF) – 0.9 to 1.0 based on tilt and orientation
      • SRCC Annual Savings of the OG-300 System (System Rating)
      • Incentive Calculation:
        • Natural Gas Offset: Maximum Incentive x (SOF) x (System Rating/150 therms)= Incentive Amount
        • Electric Offset: Maximum Incentive x (SOF) x (System Rating/3000 kWh)= Incentive Amount
      • Example:
        • Natural Gas: $1,500 x 1.0 x (125/150)= $1,250
        • Electric: $1,500 x 1.0 x (2500/3000)= $1,250
  • 64. Incentives – Commercial
    • Maximum Incentive: $75,000
      • Solar Orientation Factor (SOF) – 0.9 to 1.0 based on tilt and orientation
      • SRCC Annual Savings of the OG-100 Collector- thousands of Btu/day
      • Incentive Calculation:
      • Closed Loop: $20 x (SOF) x (System Rating) = Incentive Amount
      • Open Loop : $15 x (SOF) x (System Rating) = Incentive Amount
    • Example:
      • Closed Loop: $20 x 1.0 x 35 = $700 per collector
      • Open Loop : $15 x 1.0 x 35 = $525 per collector
  • 65. Additional Incentives
    • Federal Tax Credit – 30% of cost (post-incentive)
      • (No cap)
    • Increased property value but exempt from increase property tax
    • Protection against future rate increases
  • 66. Economics of SWH
    • “ One of the most cost-effective ways to include renewable technologies into a building is by incorporating solar hot water.”
    • – U.S. Department of Energy website
  • 67. Economics of SWH
    • Natural Gas Displacement
    Investment=$3,675 Savings=$10,322.24 Installed Cost $ 6,500 Incentive $ 1,250 Investment Tax Credit (30%) $ 1,575 Net Cost $ 3,675 Estimated Annual Performance 120 Utility Rate Escalation 7% Years 1 2 3 14 15 25 TOTAL Therm Cost $ 1.36 $ 1.46 $ 1.56 $ 3.28 $ 3.51 $ 6.90   Energy Savings 120 120 120 120 120 120 3000 Cost Savings $ 163.20 $ 174.62 $ 186.85 $ 393.29 $ 420.82 $ 827.81 $ 10,322.24 Cumulative Savings $ 163.20 $ 337.82 $ 524.67 $ 3,680.24 $ 4,101.06 $ 10,322.24   Lbs. CO2 Saved 35,159
  • 68. Economics of SWH
    • Electricity Displacement
    Investment=$3,675 Savings=$17,181.76 Installed Cost $ 6,500 Incentive $ 1,250 Investment Tax Credit (30%) $ 1,575 Net Cost $ 3,675 Estimated Annual Performance 2400 Utility Rate Escalation 5% Years 1 2 3 8 9 25 TOTAL kWh Cost $ 0.15 $ 0.16 $ 0.17 $ 0.21 $ 0.22 $ 0.48   Energy Savings 2400 2400 2400 2400 2400 2400 60000 Cost Savings $ 360.00 $ 378.00 $ 396.90 $ 506.56 $ 531.88 $ 1,161.04 $ 17,181.76 Cumulative Savings $ 360.00 $ 738.00 $ 1,134.90 $ 3,437.68 $ 3,969.56 $ 17,181.76   Lbs. CO2 Saved 23,993
  • 69. Proposed CSI-Thermal Program
    • AB 1470: $250M for 200,000 systems by 2017
    • CA Public Utilities Commission released the CSI-Thermal Program proposal on July 15, 2009
    • Public Review period through August 24, 2009
    • Program Goals- displace 585M therms and 150MW by the end of 2017
  • 70. Expected Timeline
    • A CPUC Decision is expected to be released in November 2009
    • 30 day public review period
    • Final vote on program implementation in December 2009
    • Program start date of January 1, 2010
  • 71. Proposed Incentives-Natural Gas
    • Maximum Incentives:
      • Residential: $1,875
      • Commercial: $150,000
    • 4 decreasing steps (triggered by installed capacity)
      • Step one: $12.82/therm
      • Step two: $10.26/therm
      • Step three: $7.69/therm
      • Step four: $5.13/therm
  • 72. Proposed Incentives-Electric
    • Maximum Incentive:
      • Residential: $1,250
      • Commercial: $100,000
    • One static step:
      • .37/ kWh
  • 73. Proposed Eligible Technology
      • SWH systems that displace electricity or natural gas (not propane)- SRCC certified
      • Non-water heating solar thermal technologies that displace electricity or natural gas
  • 74. Next Steps
    • Attend a Home Owners SWH Basics workshop
      • Next one: October 8 th , 6-8pm
    • Attend a Contractor and Self Installer Training
      • Next one: October 19 th , 9am-4pm
  • 75. Solar Water Heating Pilot Program Contact Information
    • Katrina Phruksukarn– Program Manager
      • [email_address]
      • 858.244.7290
    • Eligible Contractors
      • http://www.swh.energycenter.org
  • 76.
    • Questions?