Www.energycenter.org California’s MASH Low Income Solar PV Incentive Program October 5, 2011...

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California’s MASH Low Income Solar PV Incentive Program

October 5, 2011

Melanie McCutchanSenior AnalystCalifornia Center for Sustainable Energy

2www.energycenter.org

Presentation Overview

About CCSE

Multifamily Affordable Solar Housing (MASH) Program

• Goals

• Structure

• Challenges

• Strategies

• Lessons Learned


• 501(c)3 Non profit organization

• Based in San Diego, CA

• 70 employees


CCSE’s Role:

Catalyst for Clean Energy Market Transformation


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


Multifamily Affordable Solar Housing

MASH Program


Study Available at:

https://energycenter.org/index.php/incentive-programs/multifamily-affordable-solar-housing


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)


CSI Program Progress


CSI Budget


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


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


Virtual Net Metering

MASH Program- Structure


What is Net Metering?

• Net metering is a method of “banking” excess electricity credits.


How does Net Metering work?

- Producing more than consuming(spinning the meter backwards)

- Consuming more than producing(spinning the meter forward)



Simply a way to distribute

solar generation credits from

a single PV system

mathematically (virtually)

across multiple meters


Without Virtual Net Metering

Source: CA Public Utilities Commission (CPUC)


With Virtual Net Metering

Source: CA Public Utilities Commission (CPUC)


MASH Program - Progress

From: MASH July 2011 Semi Annual Progress Report http://www.cpuc.ca.gov/PUC/energy/Solar/legreports.htm


MASH Program - Challenges

• Capital constraints


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


MASH Participants- System Ownership

From: Navigant Consulting’s MASH Program Evaluationhttp://www.cpuc.ca.gov/PUC/energy/Solar/evaluation.htm




• Regulated rents limit cash flows to property owners-

utility allowance adjustments difficult for retrofits


California Utility Allowance Calculator




• Regulated rents limit cash flows to property owners-

utility allowance adjustments difficult for retrofits• High learning curve for affordable housing property

owners and lenders


MASH Program - Strategies

• Large incentives helped bring solar providers to the

sector


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




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




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)


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


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


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







Thank you for your attention

Feel free to contact me:

Melanie McCutchan [email protected]

Www.energycenter.org California’s MASH Low Income Solar PV Incentive Program October 5, 2011...

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