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HUD Phoenix Energy WorkshopSeptember 16-17, 2008
Citation preview
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Solar for Low-Income HomeownersIncorporating Solar Energy Into City Programs
Sept 16, 2008
Erica MackieExecutive DirectorGRID Alternatives
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Outline•Introduction to GRID Alternatives•Solar Basics and Benefits•Economics of Solar
•Rebates•Tax Credits
•City Housing Programs and Solar•GRID Alternatives’ Model and Protecting Families
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Background
Non-profit organization
CA licensed C-10 electrical contractor
Mission: to empower communitiesin need by providing renewable energy and energy efficiency services, equipment and training
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Energy Efficiency Team ProgramVolunteer teams perform energy upgrades and water conservation measures for low-income, elderly, and disabled homeowners in partnership with local chapters of Rebuilding Together.
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Solar Affordable Housing Program
Volunteer recruitment and training to provide free installation of solar electric systems
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Solar BasicsPhoto – voltaic
Solar Electric Systems:- Use the sun’s light, not heat-Offset electricity usage not gas - Different from solar hot water and thermal systems-Grid-tied not off grid
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Why Solar for Low-Income Families•Environment
Reduction of green house gases
•Environmental JusticePower plants often sited in low-income communitiesHigh rates of asthma
•Economic High energy costsSignificant savings
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Why Local Housing Departments?Know their communities and are mission driven
Provide breadth of rehab services tailored to low-income families•Enable homeowners to continue living safely in their homes•Low-income homes often not solar ready (roofs, fuses)
Able to offer loan terms that can make it possible for day one positive cash flow
Flexible so homeowners are not in jeopardy of defaulting on bankloan and losing their home
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Why A Non-Profit?Mission to serve low-income families
Outreach and education are as important as design and installationHow to maintain a solar electric systemHow to read and understand changes to utility bill How to use energy responsibly
Sweat equity investment gives a greater sense of ownership
Free installation makes solar affordable for low-income families
Community involvement educates and brings together the whole community and proves solar is a viable solution in any community
Provides “hands-on” experience for job training programs
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 1. Client identified either by GRID Alternatives or by Housing Dept
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 2. GRID conducts site visit and determines solar feasibility
• Is there adequate roof space?-120 square feet per kW for pitched roof-175 square feet per kW for flat roof
• Is the roof space unshaded?• Is the roof space facing south or southwest?• If working on retrofit project, is the roof in good condition or is reroofing planned?
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 3. GRID educates homeowner and provides costs/savings numbers
Determine system size by matching system output with annual electricity use
-Accounting for energy efficiency savings
-Be conservative to avoid oversizing system
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 4. Housing Dept conducts site visit and determines
additional scope of work, helps hire other contractors, and processes loan
Housing Rehabilitation Program
Home Improvement Program Neighborhood Services
Program
HUD – CDBGLoansGrants
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 5. GRID coordinates directly with roofer and electrical contractor
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 6. GRID processes all rebate, utility, and permit paperwork
-Submit rebate reservation-Order materials-Pull permit-Submit utility interconnection agreement-Pass inspections-Submit Incentive Claim Form
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 7. GRID conducts mandatory training for volunteers
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 8. Housing Dept issues check from loan payable to solar
equipment supplier
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 9. GRID installs system once all other rehab work is complete
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Working TogetherStep 10. GRID provides warranty and homeowner follow up and education
Industry-standard warranties:25-year Module warranty15-year Inverter warranty10-year Labor warranty
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Retail Cost of System•Cost of System Retail
•Panels (approx. $6 per Watt)•Inverter (approx. $1 per Watt)•Balance of System (approx. $1 per Watt)•Installation (approx. $1-2 per Watt)
2.0 KW system approximately $20k
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Solar Resourceswww.dsireusa.org – Database of State Incentives for
Renewables and Efficiency
www.azsolarcenter.com – Arizona Solar Center –Non-profit promoting the use and utilization of solar energy
www.arizonasolarindustry.org – Arizona Solar Energy Industries Association – Non-profit trade association
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
APS•$3/Watt DC
SPR•$3/Watt DC
Tuscan Electric Power (TEP) and UniSource Energy (USE)•$3/Watt DC•Capped at 60% of costs•Combined tax credit plus rebate can be no more than 85% of costs (customer must pay 15% out of pocket)
Available Rebates
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Tax CreditsArizona State Tax Credit
•25% on up to $4,000 (max $1,000 tax credit)
Federal Tax Credit•30% of out of pocket cost (after rebate)•$2,000 cap for residential and no cap for commercial
Homeowner must have tax liability to take advantage of it
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Economic Benefit to the Homeowner
$8,400Net Savings to Homeowner (after loan payments at 3% interest over 30 years and inverter replacement at 15 years)
$18,000Estimated Savings Over System Lifetime (3% electricity price inflation)
/month$ 36 Estimated Monthly Savings (6.5 Sunhrs/day, $0.09/kWh)
$ 7,000Net Cost of PV System (with free installation from GRID Alternatives)
$ 6,000Rebate ($3/Watt DC Incentive)
$19,000Retail Cost of PV System ($9.50/W)
kW2.0Typical Size of PV System
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
Protecting Low-Income Families• Positive cash flow from day 1• Extensive homeowner outreach and education throughout the
process• Homeowner engagement and post installation education (how
to read bill, how to save for inverter replacement, maintenance)• Mission based loan to assure not putting homeowners in
jeopardy of loosing their home.• Coordination between loan program and solar installer to make
sure additional health and safety issues are address and adequate coordination between roofer, electrical, and solar
• Conservative savings estimates (Nameplate watts vs real world conditions, local sunhours, and utility price inflation)
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
• Outreach, homeowner education, community involvement, and installation costs funded from separate grants and donations (not passed on to homeowners)
• GRID Alternatives assumes rebate cash flow for homeowners• Local government home rehab loan helps homeowner finance after
rebate, after free installation hard equipment costs• Non-profit, mission based installer model with extensive
homeowner education and follow-up (including labor warrantee)
GRID Alternatives and HUD Partnership Model
GRID Alternatives
Generating Renewable Ideas for Development Alternatives
GRID Alternatives1610 Harrison Street, Ste C
Oakland, CA 94612www.gridalternatives.orgTel: 510-550-8535 x314
Erica Mackieemackie@gridalternatives.org
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