Solar for All: Including Renters and Condo Owners

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Solar for All Including Renters and Condo Owners

• Bruce Karney
• July 8, 2009
• bkarney_at_comcast.net

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Agenda

• Whats the problem?
• Whats the solution?
• Why adopting Solar for All is urgent
• Why solar leasing is critical
• How homeowners benefit too

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Whats 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 here
Solar Bus
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Single family homeownersare a minority in
California
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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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Biggest residential CSI rebates

• 375,215 for 210 kW in Atherton
• 319,188 for 200 kW in Newcastle
• 238,358 for 156 kW in Napa
• 137,895 for 69 kW in Woodside
• 137,216 for 62 kW in Bishop

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Whats the solution?
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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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Solar farms can be urban or rural
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Low-cost commercial solar technologies are
welcome

• Divisible into lt 6 kW sub-systems
• CSI-eligible

Solyndra
Cool Earth
Lumeta
Skyline Solar
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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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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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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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Everything balances over the year
Bill
Credit
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Economies of scale 4 kW of PV
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Better siting improves output
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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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Why adopting Solar for All is urgent
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Million solar roofs 3 programs

• CPUC CSI program 2,167 Million, 1,940 mW, PGE,
  SCE SDGE 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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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 PGE residential General Market
  incentives are already paid or reserved

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Rebates are going fast
SCE SDGE PGE
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3
4
5
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7
8
9
10
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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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Why solar leasing is critical
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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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Do any residential systems qualify?Example 77
of generation is exported!
Exported
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No 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 proposition
195 per month
30/mo. Savings
Lease Payment
Old Electric Bill
New Electric Bill
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Current price for leased solar
50
Tier 5 44.1
Tier 4 37.9
Cents per Kilowatt-hour
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Tier 3 26.0
Leased PV today 21-25
Tier 2 13.1
Tier 1 11.5
100
200
300
400
Percent of Baseline Electricity Usage
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Solar for All Lease PV for 15/kWh
50
Tier 5 44.1
Tier 4 37.9
Cents per Kilowatt-hour
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Tier 3 26.0
Leased PV at Solar Farm 15
Tier 2 13.1
Tier 1 11.5
100
200
300
400
Percent of Baseline Electricity Usage
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How homeowners benefit too
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Solar for All solves homeowners most common
concerns

• Aesthetics
• Worries about roof warranty or leaks
• Roof replacement needed soon
• Outdated service panel or other adders
• Too much shade
• Roof poorly oriented or pitched
• Concerns about roof strength
• What happens when we move?

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Size of the homeowner market

• What fraction would sign up for Solar for All?
• 1/5 23,400
• 1/3 39,000
• 1/2 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 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
  Fongs office Monica.Smith_at_asm.ca.gov

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Everybody move to the front of the bus!

• Bruce Karney
• bkarney_at_comcast.net
• 650 450-0332