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					Solar for All: Including Renters
and Condo Owners



Bruce Karney
July 8, 2009

bkarney@comcast.net
Agenda
1.   What’s the problem?
2.   What’s the solution?
3.   Why adopting Solar for All is urgent
4.   Why solar leasing is critical
5.   How homeowners benefit too



                                        2
What’s 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



                                          3
Not a homeowner? Ride back here




                                  4
Single family homeowners
are a minority in California
          4%             Owner occupied
                         single family
                         home
                         Owner occupied
                         condominium
  38%              45%
                         Renters


                         Mobile home

          13%


                                          5
… but a privileged one
   Households earning less than $50,000
    – 41% home ownership rate


   Households earning $150,000 or more
    – 87% home ownership rate




                                       6
Biggest residential CSI rebates
1.   $375,215 for 210 kW in Atherton
2.   $319,188 for 200 kW in Newcastle
3.   $238,358 for 156 kW in Napa
4.   $137,895 for 69 kW in Woodside
5.   $137,216 for 62 kW in Bishop



                                        7
What’s the solution?




                       8
Solar for All
1.   Allow ALL residential customers to offset
     their bill – just like homeowners already
     can – with power generated by equipment
     they own at “solar farms”
2.   Allow solar farm customers the option to
     lease their equipment – just like
     homeowners already can
3.   Authorize Remote Net Metering for solar
     farm customers
                                            9
Solar farms can be urban or rural




                                    10
Low-cost “commercial solar”
technologies are welcome
 Divisible into < 6 kW sub-systems
 CSI-eligible




    Solyndra     Cool Earth    Lumeta




               Skyline Solar
                                        11
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

                                        12
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
                                                        13
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
                                                14
Everything balances over the year

               $60
 Bill
               $40

               $20

Monthly bill
                $0
 or credit            Jan   Feb   Mar   Apr   May Jun   Jul   Aug Sep   Oct   Nov Dec

               -$20

               -$40

Credit         -$60

                                                                                        15
Economies of scale: 4 kW of PV
                              Single     1,000 kW     Percent
                              Family    Solar Farm   Improve-
                               Roof                     ment
          Price per DC kW     $7,500        $6,000       20%
Price for 4 kW (DC) system   $30,000       $24,000       20%
             CSI incentive   ($5,000)     ($5,000)
        Federal Tax Credit   ($7,500)     ($5,700)
                 Net Price   $17,500       $13,300       24%




                                                         16
Better siting improves output
                                 Single     1,000 kW Percent
                                 Family    Solar Farm Improve-
                                  Roof                   ment
                    Net Price    $17,500     $13,300      24%
Avg. kWh per DC kW per year        1,250       1,450      16%
kWh produced over 30 years       150,000     174,000      16%
                      $ / kWh      $.117       $.076      35%
    (ignoring time value of $)
                   $ / kWh         $.225       $.148      34%
(assuming 5% discount rate)


                                                           17
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
                                           18
Why adopting Solar for All
is urgent




                             19
Million solar roofs: 3 programs
1. CPUC: CSI program $2,167 Million, 1,940
   mW, PG&E, SCE & SDG&E territory, existing
   homes, new & existing commercial,
   government, agriculture
2. Publicly Owned Utilities, $784 Million, 700
   mW, all systems in POU areas
3. CEC: NSHP program, $400 Million, 360 mW,
   IOU territory, new homes

    Total: $3,351 Million, 3,000 mW

                                          20
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 PG&E residential “General
    Market” incentives are already paid or
    reserved

                                                 21
Rebates are going fast
            SCE SDG&E        PG&E
$3.00
$2.50
$2.00
$1.50
        2 3
$1.00       4        5
$0.50                    6
                                7
$0.00
                                          8     9     10
        0      100        200       300       400   500
                         Cum. mW Residential PV

                                                           22
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


                                       23
Why solar leasing is critical




                                24
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.

                                              25
Do any residential systems qualify?
Example: 77% of generation is exported!
                      Example of daily solar generation & energy consumption

                              25 kWh of Solar Generation       25 kWh of Consumption

              5

              4
  Kilowatts




              3

              2
                                                 Exported
              1

              0
                  1       3    5     7     9     11    13      15   17    19    21     23
                                                 Hour of day
                                                                                            26
No uncertainty about leased systems

   There are no federal tax issues with
    the leased version of Solar for All




                                           27
Solar leasing value proposition
          $195 per month
$200                                 $200
                                             $30/mo. Savings
$150                                 $150
$100      Old Electric Bill          $100    Lease Payment
 $50                                  $50    New Electric Bill
  $0                                   $0


$500
$400                                           Savings
$300
$200                                           Lease Payment
$100                                           New Electric Bill
  $0
   2009       2014            2019    2024
                                                                   28
                           Current price for leased solar
                          50¢
Cents per Kilowatt-hour




                          25¢
                                                      Leased PV today – 21-25 ¢


                                                      Tier 3          Tier 4          Tier 5
                                Tier 1       Tier 2
                                                      26.0¢           37.9¢           44.1¢
                                11.5¢        13.1¢


                                          100%                 200%            300%        400%
                                         Percent of Baseline Electricity Usage                 29
                           Solar for All: Lease PV for 15¢/kWh
                          50¢
Cents per Kilowatt-hour




                          25¢


                                          Leased PV at Solar Farm: 15¢
                                                      Tier 3          Tier 4          Tier 5
                                Tier 1       Tier 2
                                                      26.0¢           37.9¢           44.1¢
                                11.5¢        13.1¢


                                          100%                 200%            300%        400%
                                         Percent of Baseline Electricity Usage                 30
How homeowners benefit too




                             31
Solar for All solves homeowners’
most common concerns
1.   Aesthetics
2.   Worries about roof warranty or leaks
3.   Roof replacement needed soon
4.   Outdated service panel or other “adders”
5.   Too much shade
6.   Roof poorly oriented or pitched
7.   Concerns about roof strength
8.   “What happens when we move?”
                                           32
Size of the homeowner market
        23,400
   homeowners have
   bought PV under the
   CSI program

       ~ 117,000                   What fraction would
   homeowners have                 sign up for Solar for All?
   gotten a site visit but              1/5 = 23,400
   NOT purchased yet                    1/3 = 39,000
                                        1/2 = 58,500

* Assume 1 win per 6 site visits


                                                           33
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 Fong’s office:
     Monica.Smith@asm.ca.gov

                                            34
Everybody move to the front of the bus!

                          Bruce Karney
                   bkarney@comcast.net
                           650 450-0332




                                    35

				
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