Joshua Brock Environmental Specialist City of San Diego
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Transcript of Joshua Brock Environmental Specialist City of San Diego
Financial Pros and Cons of Residential Solar Installations: A Residential and Municipal Perspective
Joshua BrockEnvironmental Specialist
City of San Diego
Outline
Background– Goal of the survey and focus groups
– The Process
The Survey– Who we surveyed and who responded
– Review of results and what they mean
Focus Groups– Breakdown of the 3 groups
– What we learned
Bringing it all together– What this means for residents
– What this means for a municipality
Background
Background & Goals
Department of Energy, Solar America Initiative Grant
What can the City of San Diego do to increase the penetration of Solar PV in the market– Identify challenges and barriers customers face
– Find out what motivates residents to install a PV system
– Examine how a PV system affects the value of a property
The Survey
Who Participated?
Residents and Businesses that had installed a solar PV system in the last 10 years;
2000 surveys mailed, option to reply online or by mail;
641 responses or about 32%
The QuestionsHow many years have you occupied the property?
Who purchased the solar system for this property?
How did you find your solar installer?
Were you satisfied with the installation process?
What, if any, were some barriers you encountered?
Would you have installed your solar system without a rebate offered?
Did you do any energy efficiency upgrades before or in conjunction with your solar installation?
Are you more conscious of your energy use after installing your solar system?
Have you had questions or comments from your neighbors about your solar installation?
Do you feel you are saving money on your electric bill as a results of your solar installation?
Did any of your friends or relatives install a solar system due to your example?
Would you expect your solar installation to increase the value of your home? If so, by how much?
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Building Occupancy Time Histogram
Years Occupied
Num
ber o
f Res
pond
ents
Personal Reference
Yellow pages / Internet search engine
Professional Reference
In-Store Display
Other (please explain)
Fair / Home Show
California Center for Sustainable Energy (formerly San Deigo Regional Energy Office)
Self Install
Print Ad
Radio/Television
Direct Mail / Cold Call
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How did you find your solar installer?
None
Permitting
Inspections
Cost
Installer
Roof Orientation
Availability of Solar Panels
Other
Shading
Electric Panel
Home Owner's Association
Inverter
0 50 100 150 200 250 300 350
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What, if any, were some of the barriers you encountered when installing solar?
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Average Barriers per Response
Total City
2001 2002 2003 2004 2005 2006 2007 20080.00
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Average Permitting Barriers per Response
Total City
Cost
General In-terest
Savings
Installer
Functionality
Payback Period
Satisfaction
Aesthetics (Positive)
Aesthetics (Negative)
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Have you had questions or comments from your neighbors about your solar installation regarding the following
choices?
Yes28%
No72%
Did any of your friends or relatives install a solar system due to your
example?
$1,000 or less
$2,001 - $3,000
$4,001 - $5,000
$6,001 - $7,000
$8,001 - $9,000
$10,001 - $11,000
$12,001 - $13,000
$14,001 - $15,000
$16,001 - $17,000
$18,001 - $19,000
$20,001 - $21,000
$22,001 - $23,000
$24,001 - $25,000
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Normalized expected increase in home value($/kW)
What We Learned:
Personal references and Google not NPR and direct mailings;
Incentives and Tax Credits drive the market;
Perceived value of about $5,000/kW installed;
On-going training for Installers and Permitting/Inspections staff;
Residents may not understand why energy efficiency is important;
The Focus Groups
Who Participated
Real Estate Professionals (Sales, Appraisers, Brokers)
Municipal Permitting/Inspection Staff
Homeowners with a PV System
Solar Installers Meeting
Focus Group Results
Real Estate Professionals– Market does not value PV system as high as their costs
merit
– Bills showing energy savings needed to value the system, but older systems are looked at as a liability
– Most real estate agents do not highlight a PV system as a selling point
Municipal Permitting/Inspection Professionals– The Fire Departments role needs to be better defined
– On-going training for city staff and installers needed
Focus Group Results, Continued
Homeowners with a PV system– Generally very happy with system. Like having a
stable bill
– Want to install more but need a financial incentive to do so.
Meeting with Solar Installers– Costs of permits not an issue
– Would be willing to pay more for quicker permit processing and inspection
Bringing it All Together: The Residential Sector
Pro’s – Stable utility bill and protection from rate increases
– TOU tariff could help reduce payback if exported kWh is properly valued
Con’s– Failure to perform meaningful energy efficiency
upgrades early on could mean future upgrades increase system payback
– No guarantee that a PV system will increase the sale price of your home.
Example Energy SavingsSolar Only
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Sample Home: 1500 Sq Ft 3Bd 2Ba
Location - TierrasantaHome Value - $ 467,500Annual Prop Tax - $ 5,049
PV System Size (AC) - 4.50 kW
Energy Efficiency - NoneFinanced Amount - $ 36,638Loan APR - 7.00%Positive Cash Flow – Year 1 Average Monthly Savings - $ 236.55Monthly Tax Increase - $ 288.20
30% Federal Tax Credit
Replace Inverter
Loan Paid Off
Example Energy SavingsSolar and Energy Efficiency
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Sample Home: 1500 Sq Ft 3Bd 2Ba
Location - TierrasantaHome Value - $ 467,500Annual Prop Tax - $ 5,049
PV System Size (AC) - 2.40 kWEnergy Efficiency - Lighting, Insulation, HVAC, Windows
Financed Amount - $ 36,433Loan APR - 7.00%Positive Cash Flow – Year 1 Average Monthly Savings - $ 304.34Monthly Tax Increase - $ 286.59
30% Federal Tax Credit Replace Inverter
Loan Paid Off
Bringing it All Together:A Municipal PerspectivePro’s
Permit costs are not an issue from the customers perspective
AB-32 and local Climate/GHG goals
Green Jobs & more disposable income
Con’s
We may be missing out on $$!
Rebates/Incentives still driving the market
Undertrained permitting & inspection staff plus inexperienced installers professionals can cause harm
Thanks!
Joshua Brock
Environmental Specialist
City of San Diego
858-492-5033