Post on 14-Dec-2015
www.energycenter.org
California’s MASH Low Income Solar PV Incentive Program
October 5, 2011
Melanie McCutchanSenior AnalystCalifornia Center for Sustainable Energy
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Presentation Overview
About CCSE
Multifamily Affordable Solar Housing (MASH) Program
• Goals
• Structure
• Challenges
• Strategies
• Lessons Learned
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• 501(c)3 Non profit organization
• Based in San Diego, CA
• 70 employees
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CCSE’s Role:
Catalyst for Clean Energy Market Transformation
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Our Core Activities:
• Incentive Program Administration
• Energy Efficiency
• Distributed Energy Resources
• Clean Transportation
• Sustainable Energy Education and Outreach
• Energy Policy and Planning
• Research and Consulting Services
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Multifamily Affordable Solar Housing
MASH Program
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Study Available at:
https://energycenter.org/index.php/incentive-programs/multifamily-affordable-solar-housing
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California SolarInitiative (CSI)
• $2.1 billion program for 10 years
(2007-2016)
• Financed through rate-payers
• 10% of funds set aside for low-
income ratepayers
Solar incentive program in California for IOU customers: Pacific Gas and Electric Southern California Edison, and San Diego Gas & Electric (administered by CCSE)
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CSI Program Progress
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CSI Budget
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MASH Program - Goals
1. Stimulate adoption of solar power in the affordable housing sector
2. Improve energy utilization and overall quality of affordable housing through application of solar and energy efficiency technologies
3. Decrease electricity use and costs without increasing monthly household expenses for affordable housing building occupants
4. Increase awareness and appreciation of the benefits of solar among affordable housing occupants and developers
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MASH Program- Structure
Different incentive for:
• common area meters $3.30/Watt-AC• tenant meters $4.00/Watt-AC
Program required at least 20% of incentive dollars to go tooffsetting tenant load
Solar Costs about $6-8/Watt-AC
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Virtual Net Metering
MASH Program- Structure
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What is Net Metering?
• Net metering is a method of “banking” excess electricity credits.
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How does Net Metering work?
- Producing more than consuming(spinning the meter backwards)
- Consuming more than producing(spinning the meter forward)
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Virtual Net Metering
Simply a way to distribute
solar generation credits from
a single PV system
mathematically (virtually)
across multiple meters
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Without Virtual Net Metering
Source: CA Public Utilities Commission (CPUC)
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With Virtual Net Metering
Source: CA Public Utilities Commission (CPUC)
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Virtual Net Metering
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MASH Program - Progress
From: MASH July 2011 Semi Annual Progress Report http://www.cpuc.ca.gov/PUC/energy/Solar/legreports.htm
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MASH Program - Challenges
• Capital constraints
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Solar PV Tax Benefits
-
50,000
100,000
150,000
200,000
250,000
300,000
Taxable Entity Tax-Exempt Entity
$ D
oll
ars
30 kW-DC System at $7/Watt-AC
ITC Tax Credit
Depreciation Benefits
Total Costs
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MASH Participants- System Ownership
From: Navigant Consulting’s MASH Program Evaluationhttp://www.cpuc.ca.gov/PUC/energy/Solar/evaluation.htm
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MASH Program - Challenges
• Capital constraints
• Regulated rents limit cash flows to property owners-
utility allowance adjustments difficult for retrofits
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California Utility Allowance Calculator
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MASH Program - Challenges
• Capital constraints
• Regulated rents limit cash flows to property owners-
utility allowance adjustments difficult for retrofits• High learning curve for affordable housing property
owners and lenders
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MASH Program - Strategies
• Large incentives helped bring solar providers to the
sector
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CA Solar PV Incentives
Solar Incentives
Existing Buildings New Construction
MASH CSI NSHP
Common Area Load
$1.90/Watt -AC
$0.25/Watt -AC
$2.97/Watt -AC
Tenant Load $2.80/Watt -AC
$0.25/Watt -AC
$3.15/Watt -AC
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MASH Program - Strategies
• Large incentives helped bring solar providers to the
sector
• Marketing, Outreach, and Education
• Educated contractors and used their marketing
channels
• Reached out to affordable housing sector through
conferences/workshops/trade association meetings
• Gave property owners and contractors tools to educate
lenders/ financing partners
http://energycenter.org/index.php/incentive-programs/multifamily-affordable-solar-housing/mash-workshops
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MASH Program - Strategies
• Large incentives helped bring solar providers to the
sector
• Marketing, Outreach, and Education
• Educated contractors and used their marketing
channels
• Reached out to affordable housing sector at
conferences/workshops/trade association meetings
• Gave property owners and contractors tools to educate
lenders/ financing partners
• Program progress has relied on a relatively small
core of motivated property owners/managers and
solar contractors (early adopters)
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MASH Program – Lessons Learned
• Marketing, Outreach, & Education
• Leverage contractors’ marketing channels for M&O
• Flatten learning curve for property owners and lenders
through targeted educational efforts
• Don’t “over-incentivize” PV dedicated to common area
meters
• Meaningful energy efficiency requirements can increase
participant/utility/societal benefits
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Considerations for DC
• Characterize your affordable housing building stock and market as it relates to solar:• Electricity usage and costs• Roof to living space ratio• Metering- Master metered or individual tenant meters
• Consider a variety of models, community solar, on-site solar
• Foster cross program collaboration with energy efficiency efforts
• Evaluate other technologies- SWH, Fuel cells
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Useful Resources/Links
CSI SASH and MASH Market Assessment Report
http://www.cpuc.ca.gov/PUC/energy/Solar/evaluation.htm
Solar PV Retrofits in Multifamily Affordable HousingImpacts of Virtual Net Metering and MASH Incentives on Project Economics
http://energycenter.org/index.php/incentive-programs/multifamily-affordable-solar-housingUpper Right Hand Corner of Site
CCSE MASH Program Workshops
http://energycenter.org/index.php/incentive-programs/multifamily-affordable-solar-housing/mash-workshops
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Thank you for your attention
Feel free to contact me:
Melanie McCutchan melanie.mccutchan@energycenter.org858-244-1177