HUD Phoenix Energy Workshop September 16-17, 2008

1. GRID Alternatives
Solar for Low-Income Homeowners
Incorporating Solar Energy Into City Programs
Sept 16, 2008
Erica Mackie
Executive Director
GRID Alternatives
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2. GRID Alternatives
Outline
•Introduction to GRID Alternatives
•Solar Basics and Benefits
•Economics of Solar
•Rebates
•Tax Credits
•City Housing Programs and Solar
•GRID Alternatives’ Model and Protecting Families
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3. GRID Alternatives
Background
Non-profit organization
CA licensed C-10 electrical contractor
Mission: to empower communities
in need by providing renewable energy
and energy efficiency services,
equipment and training
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4. GRID Alternatives
Energy Efficiency Team Program
Volunteer teams perform energy upgrades
and water conservation measures for low-
income, elderly, and disabled homeowners
in partnership with local chapters of
Rebuilding Together.
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5. GRID Alternatives
Solar Affordable Housing Program
Volunteer recruitment
and training to
provide free
installation of solar
electric systems
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6. GRID Alternatives
Solar Basics
Photo – voltaic
Solar Electric Systems:
- Use the sun’s light, not
heat
-Offset electricity usage
not gas
- Different from solar hot
water and thermal
systems
-Grid-tied not off grid
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7. GRID Alternatives
Why Solar for Low-Income Families
•Environment
Reduction of green house gases
•Environmental Justice
Power plants often sited in low-income communities
High rates of asthma
•Economic
High energy costs
Significant savings
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8. GRID Alternatives
Why Local Housing Departments?
Know their communities and are mission driven
Provide breadth of rehab services tailored to low-income families
•Enable homeowners to continue living safely in their homes
•Low-income homes often not solar ready (roofs, fuses)
Able to offer loan terms that can make it possible for day one
positive cash flow
Flexible so homeowners are not in jeopardy of defaulting on bank
loan and losing their home
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9. GRID Alternatives
Why A Non-Profit?
Mission to serve low-income families
Outreach and education are as important as design and installation
How to maintain a solar electric system
How to read and understand changes to utility bill
How to use energy responsibly
Sweat equity investment gives a greater sense of ownership
Free installation makes solar affordable for low-income families
Community involvement educates and brings together the whole
community and proves solar is a viable solution in any community
Provides “hands-on” experience for job training programs
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10. GRID Alternatives
Working Together
Step 1. Client identified either by GRID Alternatives or by Housing Dept
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11. GRID Alternatives
Working Together
Step 2. GRID conducts site visit and determines solar feasibility
• Is there adequate roof space?
-120 square feet per kW for pitched roof
-175 square feet per kW for flat roof
• Is the roof space unshaded?
• Is the roof space facing south or southwest?
• If working on retrofit project, is the roof in
good condition or is reroofing planned?
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12. GRID Alternatives
Working Together
Step 3. GRID educates homeowner and provides costs/savings numbers
Determine system size by
matching system output
with annual electricity use
-Accounting for
energy efficiency
savings
-Be conservative to
avoid oversizing
system
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13. GRID Alternatives
Working Together
Step 4. Housing Dept conducts site visit and determines
additional scope of work, helps hire other contractors, and
processes loan
Housing Rehabilitation
Program HUD – CDBG
Home Improvement Program Loans
Neighborhood Services Grants
Program
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14. GRID Alternatives
Working Together
Step 5. GRID coordinates directly with roofer and electrical contractor
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15. GRID Alternatives
Working Together
Step 6. GRID processes all rebate, utility, and permit paperwork
-Submit rebate reservation
-Order materials
-Pull permit
-Submit utility
interconnection agreement
-Pass inspections
-Submit Incentive Claim
Form
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16. GRID Alternatives
Working Together
Step 7. GRID conducts mandatory training for volunteers
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17. GRID Alternatives
Working Together
Step 8. Housing Dept issues check from loan payable to solar
equipment supplier
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18. GRID Alternatives
Working Together
Step 9. GRID installs system once all other rehab work is complete
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19. GRID Alternatives
Working Together
Step 10. GRID provides warranty and homeowner follow up and education
Industry-standard warranties:
25-year Module warranty
15-year Inverter warranty
10-year Labor warranty
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20. GRID Alternatives
Retail Cost of System
•Cost of System Retail
•Panels (approx. $6 per Watt)
•Inverter (approx. $1 per Watt)
•Balance of System (approx. $1 per Watt)
•Installation (approx. $1-2 per Watt)
2.0 KW system approximately $20k
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21. GRID Alternatives
Solar Resources
www.dsireusa.org – Database of State Incentives for
Renewables and Efficiency
www.azsolarcenter.com – Arizona Solar Center –
Non-profit promoting the use and utilization of solar
energy
www.arizonasolarindustry.org – Arizona Solar Energy
Industries Association – Non-profit trade association
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22. GRID Alternatives
Available Rebates
APS
•$3/Watt DC
SPR
•$3/Watt DC
Tuscan Electric Power (TEP) and UniSource Energy (USE)
•$3/Watt DC
•Capped at 60% of costs
•Combined tax credit plus rebate can be no more than
85% of costs (customer must pay 15% out of pocket)
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23. GRID Alternatives
Tax Credits
Arizona State Tax Credit
•25% on up to $4,000 (max $1,000 tax credit)
Federal Tax Credit
•30% of out of pocket cost (after rebate)
•$2,000 cap for residential and no cap for commercial
Homeowner must have tax liability to take advantage of it
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24. GRID Alternatives
Economic Benefit to the Homeowner
Typical Size of PV System 2.0 kW
Retail Cost of PV System ($9.50/W) $19,000
Rebate ($3/Watt DC Incentive) $ 6,000
Net Cost of PV System (with free installation from GRID $ 7,000
Alternatives)
Estimated Monthly Savings (6.5 Sunhrs/day, $0.09/kWh) $ 36 /month
Estimated Savings Over System Lifetime (3% electricity $18,000
price inflation)
Net Savings to Homeowner (after loan payments at 3% $8,400
interest over 30 years and inverter replacement at 15 years)
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25. GRID Alternatives
Protecting Low-Income Families
• Positive cash flow from day 1
• Extensive homeowner outreach and education throughout the
process
• Homeowner engagement and post installation education (how
to read bill, how to save for inverter replacement, maintenance)
• Mission based loan to assure not putting homeowners in
jeopardy of loosing their home.
• Coordination between loan program and solar installer to make
sure additional health and safety issues are address and
adequate coordination between roofer, electrical, and solar
• Conservative savings estimates (Nameplate watts vs real world
conditions, local sunhours, and utility price inflation)
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26. GRID Alternatives
GRID Alternatives and HUD Partnership Model
• Outreach, homeowner education, community involvement, and
installation costs funded from separate grants and donations (not
passed on to homeowners)
• GRID Alternatives assumes rebate cash flow for homeowners
• Local government home rehab loan helps homeowner finance after
rebate, after free installation hard equipment costs
• Non-profit, mission based installer model with extensive
homeowner education and follow-up (including labor warrantee)
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27. GRID Alternatives
GRID Alternatives
1610 Harrison Street, Ste C
Oakland, CA 94612
www.gridalternatives.org
Tel: 510-550-8535 x314
Erica Mackie
emackie@gridalternatives.org
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