January 25, 2012 CSI Program Forum. California Solar Initiative Agenda Welcome & Introductions CSI Year-end Statistics California Legislative Update on

January 25, 2012

CSI Program Forum

California Solar InitiativeAgenda

• Welcome & Introductions• CSI Year-end Statistics• California Legislative Update on SB585• Regulatory Update for 2012• SB585 Implementation• Upcoming CSI Program Handbook Changes• Proposals for Cost per kWh Reporting• Lunch – Offsite• M&E- Market Transformation Study• SASH Program Update• Q&A• Break• CSI-Thermal Metrics• Recent Program Changes• Marketing and Outreach• Low-income CSI-Thermal• Future Program Expansion• Q&A• Closing Comments and Adjourn

California Solar Initiative

2011 in Review


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CSI General Market Progress in 2011

California has 1,060+ MW installed customer-side PV at 105,146+ locations Over 60% are CSI projects

A record 262 MW installed in 2011 alone. GM Program is 63% of the way towards its goal

Installed Pending Remaining Total Goal

Capacity (MW) 699 MW 411 MW 640 MW 1,750 MWGoal (% of Total) 40% 23% 37% 100%Projects (Number) 63,165 12,797 ~~ ~~

Incentives ($ Million) $1,217M $381 M $350M $1,948 M

Data includes only CSI Genera Market Program.

Data through January 3, 2012.


Aug 2011: Record number of apps received

3,530 apps rec’d


Nov 2011: Record number of MW installed

35.5 MW


Legislative Update on SB585


Legislative update• SB 585

• Authorized an additional $200 million to CSI budget.• Adjusted the PBI incentive rates• Requires the CPUC to establish cost-caps based on state and

national data• D.11-12-019: Adopted by the CPUC per SB 585

• Updated the CSI non-residential incentive budget• Adjusts utility revenue requirements• Modified PBI incentive rates• Directed CPUC Energy Division to monitor cost caps and

adjust as needed.


Regulatory Update for 2012


What’s new for 2012• Virtual Net Metering Expansion

• D.11-07-031: Expands VNM to all multi-tenant and multi-meter properties.

• Utilities filed tariffs to expand VNM in Fall 2011.• Energy Division to issue a resolution on VNM tariffs in Q1

2012• CSI Phase II/III modifications

• A ruling requesting comments on “medium” and “low” priority modifications to CSI Program in December 2011.

• Ruling also requested comments on the methodology for calculating the NEM cost cap.

• Comments due in Jan 2012.• A proposed decision expected in the first half of 2012.


2011 in Review


SB585 ImplementationAllocation of Additional $200 million


SB585 ImplementationReduced PBI Incentive Rates


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Upcoming CSI Program Handbook Changes


CSI Program Handbook Changes• Modification of the Extension Request submittal

process to allow greater flexibility in determining if an extension will be granted

• Modification of applicant response time for incomplete reservation requests from 20 to 14- calendar days

• Clarification of criteria for complete incentive claim forms

• Removal of signed field verification form;


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Proposals for Cost per kWh Reporting

California Solar InitiativeRevising CSI Cost Data Reporting

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• Since program inception, the CSI Program has looked at cost data via $/Watt


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• The increase in third party owned residential systems has grown substantially since 2007:

• 2007 = 7%• 2008 = 15%• 2009 = 15%• 2010 = 32%• 2011 = 54%• Lifetime of Program= 31%


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CSI Program Proposal • Identify the issues i.e. collecting kWh cost data that is an apple to apples comparison of all systems• feedback from industry on what costs should be included to determine the kWh cost data• Next Steps: Cost Reporting Workshop held February 15 at PGC


Lunch -Offsite


M&E- Market Transformation Study


CSI M&E Study Plan for 2012

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Market Assessment for Third-party Owned (TPO) Solar Q2 of 2012

Solar PV Roofing Study Q2 of 2012

CSI Market Transformation Study Q3 of 2012

Solar Performance Data Collection for 2011-12 Impact Evaluation Ongoing


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2012 CSI M&E Study Overview

Market Assessment of 3rd Party Owned Solar

o Characterization the market for TPO PV

o Analysis of economics and service cost reporting of TPO and customer owned systems

o Surveys/interviews of customers for general experiences with TPO system installations, overall system functionality, maintenance, repair, early termination, etc.

Solar Roofing Study

o Characterization of market for rooftop solar mounting/racking systems and practices

o Surveys/interviews of customer general experiences with site roof issues during PV and post-installation


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CSI Market Transformation Study

o Characterization the market for customer-side solar PV

o Description of policy interventions that reduce market barriers and support the development of solar PV

o Identification of Solar Market Transformation Indicators

o Assess the effects of CSI and other policies in reducing the barriers to greater deployment of solar

o Assessment of the growth of California’s solar market given rapidly declining incentives or post-CSI and other subsidies

2012 CSI M&E Study Overview

Project Status:•Final SOW for studies complete•CPUC will issue RFP in early Q2 of 2012


SASH Program Update


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SASH Program Update

GRID Alternatives

Presenter: Cathleen Monahan, SASH Program Officer1/24/2012

Phone: 510-731-1332Email: [email protected] or

[email protected]: www.gridalternatives.org/sash


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GRID Alternatives

• SASH Program Manager• Non-profit 501(c)(3)

organization• Licensed solar electrical

contractor• Installation model centered

around workforce development

Mission: To empower communities in need by providing renewable energy and energy efficiency services, equipment, and training.


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SASH ProgramGRID Locations

• GRID has 7 regional offices serving all IOU territories

Oakland: serves greater Bay area/N. California Carson: serves greater L.A. Fresno: serves Central Valley San Diego: serves San Diego area San Luis Obispo: serves Central CoastRiverside: serves Inland EmpireChico: serves North Central Valley


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SASH ProgramA Comprehensive Low-Income Solar

Program

• Higher incentives than general market CSI Program

• Energy Efficiency • Workforce Development• Volunteers and Community

Engagement


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SASH ProgramSASH Applications per Quarter

California Solar InitiativeSASH Program

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Completed and Interconnected Projects


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SASH ProgramApplications by Status and Service Territory (thru Q4

2011)

Application Status

Number of ApplicationsTotal kW,

(CEC-AC)

Total Incentives,

PG&E SCE SDG&E Totals $ MillionsSTEP 1:

254 182 47 483 1,207.5* $7.26*Applications under review STEP 2: Confirmed Applications/Reservations 109 105 11 225 749.5 $4.71 STEP 3: Completed/Installed 613 410 162 1185 3,417.2 $22.18 TOTALS (All applications and projects ) 976 697 220 1893 5,374.20 $34.15


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SASH Program

Longer-term Impact• Install PV- solar electric systems for 4,000-

6,000 low-income CA families thru 2016

• Utilize Sub-Contractor Partnership Program to meet installation targets

• Create market transformation by providing opportunities for green jobs training, and help foster a sustainable solar industry in CA


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SASH ProgramThank YouCONTACT:Cathleen MonahanSASH Program OfficerPh: 510-731-1332Email: [email protected]

1171 Ocean Ave. Suite 200Oakland, CA 94608Web: www.gridalternatives.org/sashSign up for GRID’s newsletter!


Q&A

CSI-Thermal Program


Agenda• CSI-Thermal Metrics• Recent Program Changes• Marketing and Outreach• Low-income CSI-Thermal• Future Program Expansion• Q&A


CSI-Thermal Metricswww.csithermal.com/public_export

California Solar InitiativeResidential Application Volume

California Solar InitiativeCommercial/Multi-family Application Volume


Expected Annual Therm Savings

Data from Program Inception – December 31, 2011 (Residential & Non-Residential Received)


Expected Annual kWh Savings

Data from Program Inception – December 31, 2011 (Residential and Non-Residential Received)

California Solar InitiativeAvg Incentive: Single-family Residential Natural Gas

Data contains Paid Projects

California Solar InitiativeAvg Incentive: Single-family Residential Electric

Data contains Paid Projects

California Solar InitiativeCommercial/Multi-family Distribution


CSI-Thermal Tracker• Monitor available funding in each step (Live)• Monitor allocated incentive totals by:

• Program Administrator• Customer Class (res vs. commercial)• Fuel Type (natural gas vs. electric/propane)

• Helpful when approaching a decrease in incentive step level

• Available at: www.csithermal.com/tracker


Recent Changeswww.gosolarcalifornia.ca.gov/documents/CSI-Thermal_Handbook.pdf


Propane Eligibility• Propane water heating customers were originally

prohibited from CSI-Thermal Participation• Interpretation of “displacing electric usage” from Decision

06-12-033• CPUC determined that the exclusion could create

unintended consequences• May prevent customers from choosing propane when installing a

SWH system• Could increase electricity usage by customers choosing to go from

propane electric water heating


Propane Eligibility• Propane water heating customers eligible starting

February 7, 2012• Must be electric customers of PG&E, SCE, or

SDG&E• Propane displacing systems will receive electric

incentive rate and limited to electric funding availability

• Eligible for systems installed after June 14, 2011


Equipment Eligibility• Expansion of residential equipment eligibility to

include SWH systems certified by the International Association of Plumbing and Mechanical Officials (IAPMO)

• CSI-Thermal application database now contains IAPMO systems (currently one manufacturer)

• Opportunity for others to be accepted as qualified SWH system equipment certifiers

California Solar InitiativeConcentrating Solar Collectors

• Now included in the CSI-Thermal Incentive Calculator!

www.solar-rating.org

California Solar InitiativeCommercial Electric Status

• CSI-Thermal Electric shares its incentive budget with CSI PV• PG&E and CCSE exhausted their CSI PV non-residential

incentive budgets in 2011• Therefore, CSI-Thermal commercial electric incentives for

PG&E and CCSE were not available for much of 2011• SB 585: Signed in September 2011, modifies the CSI Budget• CPUC approved the Decision to implement SB 585 and

increased the budget by $200 Million


Commercial Electric Status• CSI-Thermal commercial electric re-opened to PG&E

and CCSE on December 2, 2011Utility Percentage Additional Budget

Allocation (in millions)

PG&E 57% $114

SCE 32% $64

SDG&E 11% $22

Total 100% $200Above allocations are not dedicated to CSI-Thermal


Marketing and Outreach Updates


Key Dates/Milestones• February 2011 – RFP issued for Statewide Marketing Agency• June 2011 – Statewide Marketing Agency Selected• August 2011 – Statewide and Local M&O Plans presented by

Program Administrators at Public Workshop in San Francisco

• August 2011 – Advice Letters for Statewide and Local Plans filed for approval

• October 2011 – Statewide and all Local Plans approved • October 2011 – March 2012 – Creative development,

Media/PR planning• April 2012 – Campaign launch

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GoalsThe goals of the Statewide Market Facilitation Plan are to work in conjunction with the Local Market Facilitation Plans to build awareness and increase understanding of:

• Solar water heating and the California Solar Initiative – Thermal Program

• Solar water heating technology• The advantages and availability of CSI-TP rebates• The advantages of adopting streamlined permitting

processes, minimal fee structures and financing solar hot water systems to increase the number of rebate applications statewide.

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Strategies• Conduct pre-campaign research to assess consumer

awareness and understanding of SWH technologies• Establish metrics for goals• Develop and implement statewide paid and earned

media campaigns• Participate in local consumer, trade and community

outreach events• Conduct and assess post-campaign research to track and

evaluate changed awareness levels, attitudes and behaviors

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Target Markets• Contractors and installers• Commercial enterprise operators• Industrial facilities managers• Multifamily property owners• Single-family residence homeowners

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California Solar InitiativeTactics

• Develop campaign plan that delivers messaging to various customer segments through multiple touch points

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PRINT

TRAINING

DIGITAL

CRM/DIRECT

DIRECT CUSTOMER

EVENTS

FORUM/SPONSORSHIP

SEARCH


Low-income CSI-Thermal


Low-income• $ 25 Million dedicated incentives• Natural Gas water heating customers only• Projects that have already received CSI-Thermal

incentives are not eligible• Handbook filed on January 4th, 2012• Tentative launch month: March 2012• Incentives will be calculated using the existing

CSI-Thermal Calculators


Low-income Budget

PABudget

AllocationTotal Incentive

Budged (in millions)

PG&E 39.0% $9.75

CCSE 10.0% $2.5

SCG 51.0% $12.75

Total 100.0% $25*Incentive budget is separate from the $180 million allocated for the mainstream CSI-Thermal Program.


Low-income Incentive Structure (Single-family)

Step

Single-Family Low-income Incentive per

therm displaced

Single-Family Low-income Projects

Incentive Caps

1 $25.64 $3,750

2 $20.52 $3,000

3 $15.38 $2,250

4 $9.40 $1,376

200% of current incentives

California Solar InitiativeLow-income Incentive Structure (Multi-family)

Step

Multi-family Low-income

Incentive per therm displaced

Multi-Family Low-income Projects

Incentive Caps

1 $19.23 $500,000

2 $15.39 $500,000

3 $11.53 $500,000

4 $7.05 $500,000

150% of current incentives


Single-family Low-income Eligibility

• Site must be occupied by the homeowner• System must be owned by the homeowner• Registered in a Commission approved and

supervised gas corporation Energy Savings Assistance Program (ESAP)

• The property will be required to remain low-income for at least 10 years from the time of the SWH system installation

California Solar InitiativeSingle-family Low-income Eligibility

• The property at which the system will be installed must meet one of the following conditions:• a resale restriction between the homeowner and a public entity or a qualifying nonprofit

affordable housing provider;

• an equity sharing agreement for which the homeowner does not receive a greater share of equity than described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code, between the homeowner and a public entity or a qualifying nonprofit affordable housing provider;

• a presumed resale restriction that exists because the residence is located in an enterprise zone, including Targeted Employment Areas (TEAs), as determined by the California Department of Housing and Community Development; or

• a presumed resale restriction that exists because the property is located in an area that was included in a neighborhood revitalization strategy as part of the local municipality’s consolidated community development plan filed with the federal Department of Housing and Urban Development.

California Solar InitiativeMulti-family Low-income Eligibility

• The benefits of the SWH system must be passed to the low-income residents through reduced energy costs

• Applicant will need to provide an Affidavit explaining how• Property Must meet one of the following:

• Definition of low-income residential housing in Public Utilities Code (PUC) Section 2861(e)

• At least 50 percent of all units in the multi-family housing structure are occupied by ratepayers that are participating in a Commission approved and supervised gas corporation ESAP

California Solar InitiativeMulti-family Low-income Eligibility cont.Public Utilities Code (PUC) Section 2861(e)2

• A residential complex in which at least 20 percent of thetotal units are sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, and the housing units targeted for lower income households are subject to a deed restriction or affordability covenant with a public entity thatensures that the units will be available at an affordable housingcost meeting the requirements of Section 50052.5 of the Health and Safety Code, or at an affordable rent meeting the requirements of Section 50053 of the Health and Safety Code, for a period of not less than 30 years.


Multi-family Low-income Eligibility• ESAP Participation (50%):

• Property must remain low-income for 10 years from the time of installation

And…


Multi-family Low-income Eligibility• The property at which the system will be installed must meet one of the following

conditions:• a resale restriction between the homeowner and a public entity or a qualifying

nonprofit affordable housing provider;• an equity sharing agreement for which the homeowner does not receive a

greater share of equity than described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code, between the homeowner and a public entity or a qualifying nonprofit affordable housing provider;

• a presumed resale restriction that exists because the residence is located in an enterprise zone, including Targeted Employment Areas (TEAs), as determined by the California Department of Housing and Community Development; or

• a presumed resale restriction that exists because the property is located in an area that was included in a neighborhood revitalization strategy as part of the local municipality’s consolidated community development plan filed with the federal Department of Housing and Urban Development.

California Solar InitiativeMulti-family Low-income Process

California Solar InitiativeConsideration For Future Program Expansion

• Load Side Heat Exchangers into the Commercial Calculator

• Solar thermal end-uses that are currently ineligible• Solar space heating• Solar cooling/chilling• Process loads where heated water is used as a medium• Residential combi-systems

• Metering in collaboration with the Environmental Protection Agency’s (EPA) efforts


Call for Photos and Stories

Showcase your CSI Thermal-funded solar projects throughout the state! The California Solar Initiative Program Team is seeking photos and stories of CSI Thermal-funded solar systems for use in future newsletters or other related publicity

http://energycenter.org/calec/index.html


Q&A

Documents

January 25, 2012 CSI Program Forum. California Solar Initiative Agenda Welcome & Introductions CSI Year-end Statistics California Legislative Update on