Closing the Solar Income Gap: Greater Access, Proven Policies, and Community Engagement

Transcription

1 Closing the Solar Income Gap: Greater Access, Proven Policies, and Community Engagement August 12 th, 2015

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3 ICLEI U.S.A. Take your local climate, energy, and sustainability initiatives to the next level Tap the power of ICLEI and our network of over 450 U.S. Cities, towns, and counties, and over 1,100 local governments worldwide

4 SunShot Solar Outreach Partnership The SunShot Solar Outreach Partnership (SolarOPs) is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the US.

5 Complimentary Services Technical Resources Regional Workshops One to One Assistance Strategy Session to request a 20 minute consultation 5

6 SolarOPs Resources Technical Resources Case Studies Fact Sheets How-to Guides Technical Report Toolkits

7 SolarOPs Technical Assistance Technical Assistance Ask an Expert Web Portal Peer Exchange Facilitation In-Depth Consultations Customized Trainings

8 Our Speakers Chad Tudenggongbu Resource Efficiency & Renewable Energy Program Officer, Danielle Baussan Managing Director of Energy Policy Center for American Progress Zach Franklin Vice President of Development and Communications, Grid Alternative Chris Jedd Portfolio Energy Manager The Housing Authority of the City and County of Denver, CO

9 Closing the Solar Income Gap: a National Overview DANIELLE BAU S SAN M A N AGING D I R EC TOR, E N E RGY P O L I C Y C E N T E R FO R A M E R I C A N P R O GRES S

10 Why expand solar to low income communities? A growing industry is meeting increased demand More than 170,000 people in the U.S. have jobs in the solar industry in 2014 More jobs than the crude oil and gas industry in 2014 Source: Solar Foundation

11 Why expand solar to low income communities? Economic opportunity for low income community residents Solar industry jobs typically pay $44, percent higher than the national typical wage and are accessible to people without advanced degrees. An average solar panel installer makes $33,200 with a high school diploma. Only 27.3% percent of workers hired in 2014 had an associate s degree or higher. Sources: Solar Foundation; NRDC

12 Why expand solar to low income communities? Overcoming The Electrical Divide Solar is not, and cannot be solely for the wealthy Low income residents pay more for energy Utility rate increases associated with a decreasing customer base will eventually leave those without access to solar paying more Source:

13 Policy challenges to expanding solar deployment in low income communities Financing Multifamily housing challenges Renters/Landlords Substandard installation space Solar panels on San Diego affordable housing units Source:

14 Political challenges to expanding solar deployment: States Net metering fights: ALEC, the conservative advocacy group, created model legislation to eliminate net metering in 2013, and utilities have argued for caps on net metering. To date these efforts have not been nationally successful but challenges remain.

15 Political challenges to expanding solar deployment: States RES fights ALEC also introduced model legislation to repeal or freeze RPS. - Ohio froze RPS in Challenges in three states - Recently defeated in KS

16 Political challenges to expanding solar deployment: Congress Congressional opposition to ITC In 2005, Congress created the Solar Investment Tax Credit (ITC), a 30% federal tax credit for the residential and commercial installation of solar systems in the U.S. This 30% credit will become a 10% credit after 2016 Currently no majority political will to renew ITC in House or Senate

17 Utility challenges to expanding solar deployment Renewable Tariffs Potential for utilities to begin imposing high monthly fees for solar companies. Example: Salt River in AZ approved a $50 fee for new solar customers; Arizona Public Service proposed an average fee of $21 a month for solar customers (compared to current $5 fee) Lawsuit filed against Salt River in March

18 Signs of Progress: Administrative Actions Low income solar initiative (Announced July 7, 2015) National Community Solar Partnership to help develop community solar programs Goal to install 300 MW of renewable energy in federally subsidized housing and providing technical assistance $520+ million in commitments from investors, states, and cities to advance community solar, increase solar and energy efficiency for lowand moderate- income households. 260 project commitments from 22 Public Housing Authorities and affordable housing providers and new project announcements by private solar companies Source: Ethan Miller/Getty Images

19 Signs of Progress: Administrative Actions Department of Energy $15 million Solar Market Pathways program to streamline regulatory and market barriers to solar deployment at the state and local levels. (April 2014) Solar Instructor Training Network to support community college training programs for 50,000 solar workers through part of a broader DOE goal to train 75,000 solar workers through (May 2014) Source: PV Magazine

20 Signs of Progress: Administrative Actions U.S. Department of Agriculture Rural Utility Service (RUS) Energy Efficiency and Conservation Loan Program partnership with the National Rural Electric Cooperative Association (NRECA) to help assist and finance options for co-ops looking to deploy distributed solar in rural communities and public housing. (April 2014) Sec. Vilsack at a solar-powered brewery Source: wyofile.com

21 Signs of Progress: Congressional Action The Low-income Solar Act (LISA) LISA was introduced this July in the House (H.R.3041) and Senate (S.1713), and is aimed at making solar energy more accessible to low-income families through: Grants for upfront solar expenses Loans for community solar Funds for solar energy in Tribal, Native, and Appalachian communities.

22 2016 Outlook for solar: Democrats Hillary Clinton presidential goals: Produce 33 percent of nation s electricity from renewable sources by 2027 (seven percent today) Install half a billion solar panels by 2020 Generate enough energy from carbon free sources to power every home in the U.S. by 2027 Martin O Malley presidential goals: 100 percent of energy from renewable sources by 2050 Clean Energy Jobs Corps Launch a Clean Energy Financing Authority to support community wind and solar, and work with rural coops for affordable solar energy Bernie Sanders: No presidential announcement, but a strong legislative agenda

23 2016 Outlook for solar: Republicans Solar Supporters in the Field: Chris Christie Has supported renewable energy in New Jersey and does not oppose federal tax credits for renewable energy Rand Paul Has indicated support for ITC; does not oppose renewable energy development Image: Aljazeera.com

24 Future actions for solar Possible State Actions Use LIHEAP funds for low-income solar power. Standardized permitting for solar: DOE s Sun Shot program is working on reducing the soft costs (financing, permitting, inspection, etc.) of solar installations. California s successful SASH and MASH programs could be adopted in other states.

25 Thank you Danielle Baussan Center for American Progress

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27 Our Vision A successful transition to clean, renewable energy that includes everyone.

28 Our Model The country s largest nonprofit solar installer GRID trains and leads job trainees and other volunteers to install solar for low-income families who most need the savings, but have the least access Focus on LI single-family homes, but increasing work with multifamily housing Workforce development and energy efficiency integration

29 GRID History Founded in 2001 First solar installations in 2004 in the SF Bay Area Expanded to seven offices throughout California National expansion Colorado, New York/Tri-State, Mid-Atlantic Tribal Solar Initiative International Program

30 Our Triple Bottom Line People: Long-term savings for working families struggling to keep up with basic expenses Planet: Reduced greenhouse gas emissions, while ensuring that low-income families have access to clean power Employment: Real-world, handson training and experience to help workers access jobs in the rapidly growing solar industry

31 Accomplishments to Date Installed 5,600 systems totaling 19 megawatts $140 million in long-term savings for low-income families 21,000 individuals trained 440,000 tons of long-term GHG emissions prevented Honored by the White House as a Champion of Change for Solar Deployment

32 Successfully implemented SASH incentive for CPUC Integrating low-income solar into CA Cap-And-Trade Program Work w/ NYSERDA on lowincome components of NY-SUN Partnering with HUD on the President s call for 300 MW on federally assisted housing SolarCorps Fellowship Program with AmeriCorps Policy Implementation

33 GRID s solar installation model creates a classroom on the roof for local job training programs & community colleges Employer partnerships to facilitate job placement RISE Initiative - focus on increasing diversity & inclusion in the solar workforce Installer jobs growing by 20% and pay $20-$24/hour no degree required, just experience (Source: 2014 Solar Jobs Census by the Solar Foundation) Workforce Development

34 Key to Success: Partnerships Community college & job training partners Affordable housing providers Energy efficiency/ weatherization partnerships Industry partnerships Utility partnerships Local governments

35 Case Study: Richmond, CA Mid-sized, high poverty city in the SF Bay Area Programmatic partnership since 2006, with a focus on providing hands-on training to participants in the City s RichmondBUILD workforce development program City has secured funding from a variety of sources: Community Development Block Grants (CDBG) Stimulus funds EECBG/R3 program Funding from agreement with local Chevron refinery City helps find clients through mailers, City home rehab loan program, & City-funded housing organizations Multifamily project opportunities w/ Housing Authority

36 Case Study: Grand Valley Power Rural electric cooperative serving 17,000 customers in Grand Junction, CO area Partnered with GRID Alternatives to complete a first-ofits-kind, 100% low-income community solar array System is owned by Grand Valley Power, and the utility allocates benefits from a single shared solar array to many low-income customers Partnership with local nonprofit Housing Resources of Western Colorado to identify and qualify recipients Workforce development opportunities built into installation process

37 Case Study: Washington DC District Department of Environment (DDOE) and DC Sustainable Energy Utility (DCSEU) created and funded with $1.4 million a dedicated low-income solar rebate, Solar Advantage Plus $2.50/Watt rebate, up to $10K max, for low-income homeowners earning less than 60% of the area median income GRID Alternatives partners with the City on installation, leveraging additional outside financial resources, and integrating workforce development opportunities for local job training organizations

38 Case Study: San Francisco Long-term partnership since 2005, started with funding thru Duke Energy settlement from 2001 energy crisis Created dedicated low-income solar incentive program as part of a broader citywide GoSolarSF program, with incentives to target EJ communities and for local hiring Partnerships with local job training organizations targeting key communities Swords to Plowshares (veterans); Young Community Developers (youth from targeted Bayview/Hunter s Point community) City/GRID partnership around client outreach City funding for roof repairs/replacement

39 Key Take-Aways Well-designed programs can overcome the solar adoption barriers facing low-income families, while ensuring consumer protection and broader community benefits Long-term vision to develop a sustainable low-income market segment Long-term financial commitment, while being creative about looking at different funding sources Comprehensive strategy that integrates low-income energy efficiency and workforce development programs Working with mission-aligned partners and community members is essential to program success

40 Programmatic Contacts California: Bay Area: Renee Sharp Greater Los Angeles: Michael Kadish San Diego: Paul Cleary Central Valley: Tom Esqueda Inland Empire: Bambi Tran Central Coast: Justin Hitchcock North Valley/Sacramento: Bob Gragson Colorado: Chuck Watkins New York/Tri-State: Kate Shackford Mid Atlantic: Nicole Steele Tribal: Tim Willink Policy/Expansion: Ingrid Schwingler

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42 Closing the Solar Income Gap Greater Access, Proven Policies, and Community Engagement Chris Jedd Portfolio Energy Manager Denver Housing Authority 8/10/15

43 Denver Housing Authority 5,116 housing units in 30 properties 3,706 Traditional Public Housing 628 Subsidized units 782 Mixed income units Administer 6,700 tenant based vouchers 7+ LEED Certified Buildings 3,500 existing units with energy upgrades 8/10/15

44 Why Solar for DHA? Clean renewable energy Long term fixed energy pricing Financial incentives Aligns with HUD s goals Availability of sunlight 8/10/15

45 Power Purchase Agreement What? Third Party Private Entity: Finances, constructs, owns, manages, and maintains the solar panels Site Host: Provides the land and or roof tops and purchases generated electricity through a long term fixed rate contract Why? Little to no up front capital required from site host Financial and tax incentives are maximized Operations and maintenance are with an experienced firm Install renewables on existing properties 8/10/15

46 Power Purchase Agreement Risks Project development / construction (schedule) Capturing financial incentives (ITC, REC, depreciation, etc) Insolation (sunlight to panels) Change in policy and laws Approvals, insurance, other legal issues Tax issues Investment tax credit (ITC) 30% Depreciation of equipment 8/10/15

47 How? Power Purchase Agreement Competitive procurement through a request for proposal (RFP) for project developers The Housing Authority of the City and County of Denver invites responses from qualified entities to provide cost effective solar photovoltaic generating systems at multiple DHA sites by providing all design, construction, operation, application and financing services necessary to the successful installation and operation of said systems. 8/10/15

48 How? Power Purchase Agreement 1. Issue an RFP 2. Project Design 3. Project Financing 4. Construction 5. Operations and Maintenance 8/10/15

49 Denver Housing Authority s PPA $10 million in solar panels 2.5 Megawatts 666 homes 20 year contract DHA can purchase at 75% discount after 6 years 8/10/15

50 Denver Housing Authority s PPA Generate 3.4 million kwh annually CO2 reduction of 3,300 tons annually Long term predictable energy pricing Revenue from site license agreement Reduction in utility costs 8/10/15

51 Denver Housing Authority s PPA Lessons learned / challenges Ancillary costs: roof and electrical upgrades Accurate and timely accounting and billing Operations and maintenance Damage and tampering with panels Trees and shading 8/10/15

52 8/10/15 Chris Jedd Denver Housing Authority - Portfolio Energy Manager cjedd@denverhousing.org

53 Contact us at

54 Archived Webinar Sessions Archived Sessions: 07/31/13 - Solar Powering Your Community Association: Updating Design Guidelines for Solar 08/14/13 Commercial PACE: Program Development and Implementation 09/18/13 Maximum Solar at the Heart of Urban Forests 11/26/13 Solarize North Carolina 03/12/14 Utility Community Solar 04/16/14 Job and Economic Impact of Solar 05 08/14 Solar Permitting & Inspection Webinar Series 09/17/14 Solar For All: Minimum Costs to Local Governments and Maximum Solar for Their Community 11/05/14 Getting to A Win-Win: Distributed Solar and Utility Cost Recovery 02/18/15 Going Solar in America: Demonstrating Rooftop Solar PV s Dollars & Cents Value in America s 50 Largest Cities 04/13/15 Solar Power Purchase Agreements: A Toolkit for Local Governments STAY INFORMED THROUGH ICLEI USA inews: Subscribe here