This document proposes a "Solar for All" program to expand access to solar power to renters and condominium owners in California. Currently, only single-family homeowners can access solar rebates from the state. The proposal suggests allowing all residential customers to offset their electricity bills by installing solar panels at off-site "solar farms" and applying remote net metering. It argues this would provide economies of scale and better siting than rooftop solar, while still allowing customers to lease their portion of the solar farm. Passing legislation to implement this "Solar for All" program could significantly increase access to solar energy.

1. Solar for All: Including Renters
and Condo Owners
Bruce Karney
July 8, 2009
bkarney@comcast.net

2. Agenda
 What’s the problem?
 What’s the solution?
 Why adopting Solar for All is urgent
 Why solar leasing is critical
 How homeowners benefit too
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3. 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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4. Not a homeowner? Ride back here
Solar Bus
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5. Single family homeowners
are a minority in California
4% Owner occupied
single family
home
Owner occupied
condominium
38% 45%
Renters
Mobile home
13%
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6. … but 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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7. Biggest 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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8. What’s the solution?
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9. Solar for All
 Allow ALL residential customers to offset
their bill – just like homeowners already
can – with power generated by equipment
they own at “solar farms”
 Allow solar farm customers the option to
lease their equipment – just like
homeowners already can
 Authorize Remote Net Metering for solar
farm customers
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10. Solar farms can be urban or rural
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11. Low-cost “commercial solar”
technologies are welcome
 Divisible into < 6 kW sub-systems
 CSI-eligible
Solyndra Cool Earth Lumeta
Skyline Solar 11

12. What is Remote Net Metering?
 Energy consumption measured by
one meter
 Energy generation measured by
another meter
 Meters separated by miles, not feet
 Generation subtracted from
consumption to determine the bill
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13. Example: January
The Gomez family used $88 of electricity
in their apartment
Their portion of the solar farm
generated $30 of electricity
Their net bill is $58
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14. Example: 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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15. Everything balances over the year
$60
Bill
$40
$20
Monthly bill
$0
or credit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-$20
-$40
Credit -$60
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16. Economies of scale: 4 kW of PV
Single 1,000 kW Percent
Family Solar Farm Improve-
Roof 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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17. Better siting improves output
Single 1,000 kW Percent
Family Solar Farm Improve-
Roof 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 $.117 $.076 35%
(ignoring time value of $)
$ / kWh $.225 $.148 34%
(assuming 5% discount rate)
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18. Precedents
 Sacramento: SolarShares
 City of Alameda: separate meters
measure generation and production
 SoCal Edison: putting 150 giant PV
systems on large commercial roofs
– All utility-owned, none customer-owned
 MA: Neighborhood Net Metering
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19. Why adopting Solar for All
is urgent
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20. Million solar roofs: 3 programs
 CPUC: CSI program $2,167 Million, 1,940
mW, PG&E, SCE & SDG&E territory, existing
homes, new & existing commercial,
government, agriculture
 Publicly Owned Utilities, $784 Million, 700
mW, all systems in POU areas
 CEC: NSHP program, $400 Million, 360 mW,
IOU territory, new homes
 Total: $3,351 Million, 3,000 mW
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21. CSI 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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22. Rebates are going fast
SCE SDG&E PG&E
$3.00
$2.50
$2.00
$1.50
2 3
$1.00 4 5
$0.50 6
7
$0.00
8 9 10
0 100 200 300 400 500
Cum. mW Residential PV
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23. 578 mW = 1 million roofs?
 144,500 at 4 kW per system
 About 10 million housing units in CSI
territory
 1.5% will benefit from solar rebates
– 3% of single family homes
– 0% of renters and condo owners
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24. Why solar leasing is critical
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25. Eligibility 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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26. Do any residential systems qualify?
Example: 77% of generation is exported!
Example of daily solar generation & energy consumption
25 kWh of Solar Generation 25 kWh of Consumption
5
4
Kilowatts
3
2
Exported
1
0
1 3 5 7 9 11 13 15 17 19 21 23
Hour of day
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27. No uncertainty about leased systems
 There are no federal tax issues with
the leased version of Solar for All
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28. Solar leasing value proposition
$195 per month
$200 $200
$30/mo. Savings
$150 $150
$100 Old Electric Bill $100 Lease Payment
$50 $50 New Electric Bill
$0 $0
$500
$400 Savings
$300
$200 Lease Payment
$100 New Electric Bill
$0
2009 2014 2019 2024
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29. Current price for leased solar
50¢
Cents per Kilowatt-hour
25¢
Leased PV today – 21-25 ¢
Tier 3 Tier 4 Tier 5
Tier 1 Tier 2
13.1¢ 26.0¢ 37.9¢ 44.1¢
11.5¢
100% 200% 300% 400%
Percent of Baseline Electricity Usage 29

30. Solar for All: Lease PV for 15¢/kWh
50¢
Cents per Kilowatt-hour
25¢
Leased PV at Solar Farm: 15¢
Tier 3 Tier 4 Tier 5
Tier 1 Tier 2
13.1¢ 26.0¢ 37.9¢ 44.1¢
11.5¢
100% 200% 300% 400%
Percent of Baseline Electricity Usage 30

31. How homeowners benefit too
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32. Solar for All solves homeowners’
most 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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33. Size of the homeowner market
23,400
homeowners have
bought PV under the
CSI program
~ 117,000 What fraction would
homeowners have sign up for Solar for
gotten a site visit but All?
NOT purchased yet 1/5 = 23,400
1/3 = 39,000
1/2 = 58,500
* Assume 1 win per 6 site visits
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34. The future of Solar 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:
Monica.Smith@asm.ca.gov
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35. Everybody move to the front of the bus!
Bruce Karney
bkarney@comcast.net
650 450-0332
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