2013-04-18-AMOUrbanSymposium-StefanTylak

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					                       April 18th, 2013




Energy Savings: Financing Efficiency through LICs
Case Study on Halifax’s Solar City Program
                                                  “We are like tenant farmers chopping down
                                                  the fence around our house for fuel when we
                                                  should be using Nature's inexhaustible
                                                  sources of energy — sun, wind and tide. ... I'd
                                                  put my money on the sun and solar energy.
                                                  What a source of power! I hope we don't have
                                                  to wait until oil and coal run out before we
                                                  tackle that.”

Stefan Tylak, M.Sc., Solar City Program Officer                     Thomas Edison, 1931
tylaks@halifax.ca, (902) 490-2584
 A Brief History:

How did we get ourselves into this?
• Initiative born out of corporate experiences – energy efficiency,
  renewables (geothermal/solar)…many lessons to be learned!
Why?
• Council’s commitment to reduce GHG emissions by 20% by 2012
• Halifax achieved Fifth Milestone (Corporately) of PCP Program
• Meeting the target Corporately – 20 k tonnes of GHG reductions
  through $15 M of energy efficiency & renewables
• Having a tough time scaling up / engaging community
• 3 economic lenses to the program – residents’, industry, municipality -
  $1.5 B spent on energy in Halifax
                                                                       2
A Brief History:

•   Project development initiated in July 2010 – Solar Water Heating (to start)
•   Vision – first Solar City in Canada!
•   Framework is much more than just the LIC!
•   Key concepts – residential focus, turnkey contracting and financing, achieve
    economies of scale and QC
•   Province passed legislative amendment to HRM Charter in November 2010 to
    secure first lien rights for energy improvements. First jurisdiction in Canada
    (see http://nslegislature.ca/legc/bills/61st_2nd/3rd_read/b112.htm#text)
•   Halifax created by-law in Spring of 2012 (similar to current LIC bylaws) to
    enable financing mechanism
    (http://www.halifax.ca/legislation/bylaws/hrm/documents/By-lawS-500.pdf)



                                                                              3
 Results of public engagement

• Held 5 public sessions with turnout of 1,000 citizens –
  Energy, Environment & Economy
• Extraordinary amount of media attention and public
  interest – The vision? The Sign-up system? The
  Simplicity?
• Visit www.halifax.ca/solarcity to see more
                                     FACT:
                                     Solar City is aiming to install
                                     1000 systems in 18 months.
                                     In 2010, there were about
                                     800 solar thermal installs in
                                     all of Canada; 200 of which
                                     were in Nova Scotia.
                                                                       4
What was basis for financial model?
• Simplicity for the residents
• Costs 100% recovered by municipality. No cross
  subsidization from non-participating tax base –
  user pay program
• Reasonable amortization
• High level of quality control




                                                    5
Rough Numbers

• Total Program Budget             $8 M
       FCM Green Municipal Fund $5.5 M low-interest loan,
                                   $550 k grant
• Cost / home (inc. rebates & HST) $6000 - $7500
• Solar Hot Water Rebates          $2000
• # of participants                1000 (700/300)
• Admin cost                       $600 k
• Average homeowner payment        $800/year (incl. HST)
• Range of ROIs                    - 2 % to 14 %
• Term                             10 years
• Financing interest               3.5%
                                                            6
                                   FACT:

Current Status                     GHG reductions from
                                   solar water heating is
                                   higher in NS than
                                   anywhere else in Canada
                                   due to heavy reliance on
                                   coal fired electricity and
• 1600 residents signed up,        oil heating

       700 on the first day!
• Regional Council approved launch on Dec. 11th, 2012
• 2 - 3 month ramp-up period
• Four open houses since launch, with 400 in attendance
• > 120 homes assessed; 23 screened out
• 80 offers sent, 17 contracts signed
• 7 systems installed, with ribbon cutting Apr 23rd!
• Visit www.halifax.ca/solarcity
                                                                7
Lessons Learned So Far …

• Communications team involved from the start
• Buzz!!
• Do the financial/legal homework – and double
  check!
• Do not under estimate how difficult it is to make
  simple – lots of trail blazing!
• Dialogue and team work (Council, Homeowners,
  Legal, Finance, etc.)

                                                      8
An interesting last graphic…
          wide scale community support…
                             Thank You!




Stefan Tylak, M.Sc., Solar City Program Officer   For project updates visit:
tylaks@halifax.ca, (902) 490-2584                 www.halifax.ca/solarcity

				
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