Grid Alternatives Solar - EE in HOME Workshop

GRID Alternatives

Generating Renewable Ideas for Development Alternatives

Solar for Low-Income HomeownersIncorporating Solar Energy Into City Programs

June 10 & 12, 2008

Erica MackieExecutive DirectorGRID Alternatives

GRID Alternatives


Outline•Introduction to GRID Alternatives•Solar Basics and Benefits•Economics of Solar

•Rebates•Tax Credits

•City Housing Programs and Solar•The California Solar Initiative & The Future

GRID Alternatives


Background

Non-profit organization

CA licensed C-10 electrical contractor

Mission: to empower communitiesin need by providing renewable energy and energy efficiency services, equipment and training

GRID Alternatives


Energy Efficiency Team ProgramVolunteer 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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Solar Affordable Housing Program

Volunteer recruitment and training to provide free installation of solar electric systems

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Solar BasicsPhoto – 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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Why Solar for Low-Income Families•Environment

Reduction of green house gases

•Environmental JusticePower plants often sited in low-income communitiesHigh rates of asthma

•Economic High energy costsSignificant savings

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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 bankloan and losing their home

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Why A Non-Profit?Mission to serve low-income families

Outreach and education are as important as design and installationHow to maintain a solar electric systemHow 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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Working TogetherStep 1. Client identified either by GRID Alternatives or by Housing Dept

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Working TogetherStep 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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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

Working Together

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Working TogetherStep 4. Housing Dept conducts site visit and determines

additional scope of work, helps hire other contractors, and processes loan

Housing Rehabilitation Program

Home Improvement Program Neighborhood Services

Program

HUD – CDBGLoansGrants

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Working TogetherStep 5. GRID coordinates directly with roofer and electrical contractor

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Working TogetherStep 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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Working TogetherStep 7. GRID conducts mandatory training for volunteers

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Working TogetherStep 8. Housing Dept issues check from loan payable to solar

equipment supplier

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Working TogetherStep 9. GRID installs system once all other rehab work is complete

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Working TogetherStep 10. GRID provides warranty and homeowner follow up and education

Industry-standard warranties:25-year Module warranty15-year Inverter warranty10-year Labor warranty

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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)

1.7 KW system approximately $16-$17k

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Available RebatesCSI – California Solar Initiative

•Administered by PG&E, SCE, and California Center for Sustainable Energy (San Diego)•Existing homes or buildings•$1.90 – $2.50/Watt•Increased rebate for government and non-profit owned buildings•Decreases as MW goals are met

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New Solar Homes Partnership•Administered by California Energy Commission•New Construction•$2.50/Watt for under 6 units•$2.60/Watt for over 6 units with at least 50% solar•Increased rebate for affordable housing projects

Available Rebates

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Tax CreditsFederal 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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Economic Benefit to the HomeownerTypical Size of PV System 1.7 kWRetail Cost of PV System ($9.50/W) $16,150Rebate (CSI Incentive As of 5/6/08) $ 4,250Net Cost of PV System (with free installation from GRID Alternatives)

$ 6,800

Estimated Monthly Savings $ 45 /monthEstimated Savings Over System Lifetime $16,200Net Savings to Homeowner $9,400

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The California Solar InitiativeAnd Low-Income Families

$216 Million Set Aside for Low-Income Families • $108M to go to multi-family rental affordable housing• $108M to go to single family homeowner program• Will substantially subsidize solar for low-income families• In SCE, SDG&E and PG&E territories• RFP recently released by SCE/California Public Utilities Commission

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Making it happen Now• Approximately $6,000–7,000 per home in home rehab loan funds• Funding to support GRID Alternatives services

Making it happen in the Future (As early as September 2008)• Potentially only $3,000 per home required in home rehab loan funds• No additional support required for homeowner education, system installation

(i.e. GRID Alternatives)

The California Solar InitiativeAnd Low-Income Families

GRID Alternatives


GRID Alternatives1610 Harrison Street, Ste C

Oakland, CA 94612www.gridalternatives.orgTel: 510-550-8535 x314

Erica [email protected]

Economy & Finance

Grid Alternatives Solar - EE in HOME Workshop