Challenges and Successes on the Path toward a Solar-Powered Community

San Francisco, California Includes case studies on:• UsingaWeb-basedSolarMaptoProvideSolarInformation tothePublic• TargetingCommercialPropertyOwnersthroughtheMayor’s SolarFounders’Circle• FacilitatingResidentialSolarGroupPurchases• AddressingMulti-TenantBarrierstoGoingSolar October2011

Solar in Action

SanFranciscowasdesignatedbytheU.S.DepartmentofEnergy(DOE)onJune20,2007,asaSolarAmericaCity.SanFranciscowasmakingrelativelysignificantprogresspromotingandenablingsolarpriortoreceivingassistancethroughtheSolarAmericaCitiespartnership.Atthetimeofthedesignation,SanFranciscobenefitedfrom:

• 2001voter-approved$100millionbondinitiativetopayforsolarsystems,energyefficiencyimprovements,andwindturbinesforpublicfacilities

• 2002ElectricityResourcePlanwithambitiousgoals,including50megawatts(MW)ofrenewableenergycapacityby2012with31MWprovidedbysolar

• Prioritypermittingforsolarinstallationsinstitutedin2004,withupdatedstreamlinedproceduresadoptedin2007

• 2004ClimateActionPlangoaltoreduceoverallgreenhousegasemissionsto20%below1990levelsbytheyear2012

• SanFranciscoSolarTaskForceestablishedin2007todeveloppolicyrecommendationstoacceleratethenumberofsolarinstallationsonresidentialandcommercialrooftopsinthecity

• Threemunicipalsolarinstallationswith1.2MWcapacity,includingthe675kilowatt(kW)systemontheMosconeConventionCenter,whichwasthelargestmunicipalinstallationinthecountryatthetime

• Morethan500residentialandcommercialsolarinstallationswithapproximately1.8MWincapacity.

SanFranciscohasverygoodsolarresourcepotential.SanFrancisco’sclearestweatherisduringcoolermonthsinthespring,fall,andwinter,meaningthatthesolarcellsremaincoolandoperatemoreefficientlythaninhotterclimates.

Building Partnerships and Setting Goals SanFranciscosetagoaltobothinstall31MWofsolarandtoreduceoverallgreenhousegasemissionsto20%below1990levelsby2012.Tohelpreachthesegoals,theSanFranciscoDepartmentoftheEnvironment(SFEnvironment)focusedeffortsonseveralapproachestospursolarmarketgrowth:

SanFranciscopromotessolarinthecommunitythroughhigh-profileinstallationsoncity-ownedbuildingssuchastheMosconeConventionCenter,thecity’sfirstlarge-scalesolarinstallationandthelargestmunicipalsystem(675kW)intheUnitedStateswhencompletedin2004.Photo from The City of San Francisco, NREL/PIX 18417

Cover photos from iStock/8809122, View of San Francisco

San Francisco’s Starting Point

About the U.S. Department of Energy’s Solar America Communities program: TheU.S.DepartmentofEnergy(DOE)designated13SolarAmericaCitiesin2007andanadditional12citiesin2008todevelopcomprehensiveapproachestourbansolarenergyusethatcanserveasamodelforcitiesaroundthenation.DOErecognized thatcities,ascentersofpopulationandelectricityloads,haveanimportantroletoplayinacceleratingsolarenergyadoption. Asaresultofwidespreadsuccessinthe25SolarAmericaCities,DOEexpandedtheprogramin2010bylaunchinganationaloutreacheffort,theSolarAmericaCommunitiesOutreachPartnership.AstheSolarAmericaCitiesprogramevolvedtoincludethisnewoutreacheffort,theprogramwasrenamedSolarAmericaCommunitiestoreflectDOE’scommitmenttosupporting solarinitiativesinalltypesoflocaljurisdictions,includingcitiesandcounties.VisitSolarAmericaCommunitiesonlineat www.solaramericacommunities.energy.gov.

2

3

• IncreasingpublicawarenessthroughinstallationofsolarenergysystemsonmunicipalbuildingsandbyconductingoutreachandeducationtoincreaseknowledgeoftheavailabilityandopportunitiesforsolarinSanFrancisco

• Creatingasolarmaptoprovideresidentsandbusinesseswithacomprehensivesolarinformationresource

• Identifyingsitesforlargeinstallationsandmarketingtothosebuildingowners

• Providingtechnicalassistanceforconsumerswantingindependentthird-partyhelpwithproposedsolarprojects.Inparticular,developingaprogramtogroupsolarcustomersintoaggregatedpurchasingpoolstobemarketedtosolarinstallers

• Addressingcostandfinancingissuesthroughsolar-friendlypolicydevelopment,suchasexpeditingpermittingprocessesandexploringwaysthecitycanhelpattractpreferentialpricesandreduceup-frontcosts

• Developingalocalsolarincentiveprogram

• Identifyingandaddressingbarrierstosolaronmulti-tenantbuildings,whichmakeup68%ofresidentialunitsinthecity.

SFEnvironmentidentifiedthefollowingkeyactivitiestomeetoverallsolargoals:

• Developaprogramtogroupsolarcustomersintoaggregatedpurchasingpoolstobemarketedtosolarinstallers

• Identifysitesforlargeinstallationsandmarkettothosebuildingowners

• Identifyandaddressbarrierstoinstallingsolaronmulti-tenantbuildings

• Createasolarmaptoprovideresidentsandbusinesseswithacomprehensivesolarinformationresource

• Developalocalsolarincentiveprogram.

SanFranciscosetagoaltobothinstall31MWofsolarandtoreduceoverallgreenhousegasemissionsto20%below1990levelsby2012.Photo from The City of San Francisco, NREL/PIX 18416

InstalledPVcapacityincreasefromDecember31,2007, toDecember31,2010

Installed PV (kW)

Installed CapacitySan Francisco

0

10,000

5,000

15,000

20,000

PV Capacity (Residential)PV Capacity (Non-residential)

2007 2008 2009 2010

kW

Year End

3Solar in Action

4

Accomplishments and HighlightsTheSolarAmericaCitiesprogramenabledSanFranciscotoexpandthescopeofitssolareffortstoincreasetheamountofinformationandtechnicalassistanceavailabletothepublic.

Thecityalsoworkedtoaddressbarriersposedbythehighupfrontcostofsolaranddifficultiesformulti-tenantsolarprojects.

HighlightsofSanFrancisco’saccomplishmentsincludethefollowing:

• DevelopedtheSanFranciscoSolarMap,whichisthego-toresourceforsolarinformationforcitypropertyowners,receiving1,300visitspermonth.Itservesasa“one-stopshop”Webportalforresidentsandbusinessesinterestedinfindingtheirsolarrooftoppotentialandtheinformationtheyneedtosuccessfullygosolar

• CompletedthreeneighborhoodgrouppurchaseswithsupportfromSFEnvironment,with134residentialsystemstotalingmorethan300kW

• AssistedOneBlockOfftheGrid(1BOG)withthedevelopmentoftheirfirstgrouppurchaserequestforproposal(RFP);1BOGhassincefacilitatedSanFranciscogrouppurchasesof115residentialsystemstotaling300kW

• CreatedtheGoSolarSFlocalincentiveprogram,reaching$10Minreservationsfor4.3MWinthefirst2years,aswellassupporting40newjobsinthelocalsolarindustry

• Installedeightmunicipalsystemswith2-MWcapacityandanother5.4MWinprogress

• LaunchedtheGreenFinanceSFPACE(PropertyAssessedCleanEnergy)financingprogramforrenewableenergy,energyefficiency,andwaterconservationprojectsinApril2010.

Case Studies: Successes and ChallengesUsing a Web-based Solar Map to Provide Solar Information to the Public PriortotheSolarAmericaCitiesSanFranciscoSolarInitiative,SFEnvironmentidentifiedalackofpublicawarenessandinformationaboutsolarenergyuseinthecityasabarriertosolarmarketpenetration.Itisimportantthatpropertyownersmakedecisionsaboutsolarenergyusebasedonthecorrectinformation.

ManyresidentswereunawarethatSanFranciscoactuallyhasverygoodsolarpotential.SanFranciscoreceivessolarradiationequivalentto93%ofthatseeninSanDiego,and

coolertemperaturesduringclearmonthsallowformoreefficientenergyproductionthaninhotterareas,becausePVsystemsoperatemoreefficientlyatlowertemperatures.Thecity’smicro-climates,wheresomeneighborhoodsexperiencemorefoggydaysthanothers,contributetoamisperceptionthatsolarwon’tworkwellhere.

Misperceptionsaboutthetimeandcostrequiredforsolarpermittingpersistedeventhoughthepermittingprocessbecameeasierandcheaper.Itwasunclearwheretofindinformationforreputableinstallers,whatquestionstoaskthem,andhowtocomparedifferingbids.

Rebatesandtaxincentivescouldalsobedifficulttoidentifyandunderstand.

Withtheseconcernsinmind,SFEnvironmentdevelopedresourcestoprovideeasyaccesstoalltheinformationnecessarytounderstandwhatittakestopursueandcompleteasuccessfulprojectinthecity,andtopromotethevalueinchoosingtodoso.

TheSunsetReservoir’s5-MWPVsystem,financedthrough aPowerPurchaseAgreement,significantlyboostedsolargenerationinSanFrancisco.Photo from The City of San Francisco, NREL/PIX 18419

Many residents

were unaware that

San Francisco has very

good solar potential.

5

TheSanFranciscoSolarMapoffersacentralizedwebsitewhereuserscanobtainthisinformation.ThemapwasdevelopedinpartnershipwiththeengineeringconsultingfirmCH2MHILL’ssustainabilitysolutionsgroup.Usingnewsoftwaretechnology,themapallowsuserstofindthesolarpotentialofanyrooftopinthecity.Userscanevaluatetheeconomicsofusingsolarataparticularsiteandfindinformationandguidanceforallthestepsalongthepathtosolarinstallationanduse.Themapalsoincludesmarkersandinformationforinstalledsystemsandisupdatedregularlywithrelevantlocalsolarnews.

Targeting Commercial Property Owners through the Mayor’s Solar Founders’ CircleTheMayor’sSolarFounders’Circlewascreatedtotargetownersofthelargestroofs,offeringfreepersonalizedtechnicalanalysisoftheirestimatedsolarpotentialandfinancialanalysisoftheestimatedsystemcostsandbenefits.InSeptember2008,SanFranciscotargetedthe1,500largestrooftopsinthecitywhenthen-MayorGavinNewsomchallengedtheirownerstojointheMayor’sSolarFounders’CirclebyinstallingasolarenergysystembySeptember2009.Thisoutreachcampaignsentlettersnotifyingbuildingownersoftheirsolarpotentialandthesolarbenefitstheycouldenjoybasedoninitialestimates.BusinessesthatrespondedreceivedfreeenergyefficiencyauditsandsolarsiteassessmentsfromSFEnvironmentinadditiontoanextra$1.50perwattGoSolarSFincentive,uptoacapof$10,000.

BetweenOctober2008andMay2009,morethan100buildingownersrespondedwithrequestsforassessments.Siteassessorsvisitedthesepropertiestogathermoredetailedinformation.Theythenanalyzedtheavailableroofareaandsolarexposure,andestimatedthepotentialsize,energyproduction,cost,andpaybackforasolarsystemoneachbuilding.Thisinformationhelpedbuildingownersdecidewhethertomoveforwardwithasolarenergysystem.

Ninety-threebuildingownersfollowedthroughwithprerequisiteenergyaudits,providedtheirutilitybillsforuseintheanalysis,andreceivedfinalsolarassessmentreports.

Basedonfollow-upconversations,therehavebeennoinstallsbyprogramparticipants,withmostcitingtheinabilitytoprovideorsecuretheupfrontcapitalnecessarytoinstall.

However,13sitesfollowedrecommendationsfromtheenergyauditstomakeenergyefficiencyupgradesestimatedtosave770,000kilowatthoursperyear(kWh/yr),equivalenttoabout450kWofsolar.

Throughthisprocess,SanFranciscoidentifiedalackoffinancingoptionsforsmall-tomid-sizecommercialsolarprojectsasanadditionalbarrier.ThisissueisbeingaddressedwithSanFrancisco’sSolarAmericaCitiesSpecialProject,launchedin2010.

Facilitating Residential Solar Group PurchasesTheinstalledcostforsmallersolarsystemsistypicallyhigherwhenapproachedone-by-onethroughindividualpurchasesbecauseofthetimerequiredbyinstallerstomarket,pursue

Aerialviewofthe675-kWPVinstallationattheMosconeConventionCenterinSanFrancisco.Photo from The City of San Francisco, NREL/PIX 18417

Then-MayorGavinNewsomandJohnLushetsky,DOE’sSolarEnergyTechnologiesprogrammanager,celebrateSanFrancisco’sdesignationasaSolarAmericaCity.Photo from The City of San Francisco, NREL/PIX 18421

6

leads,assessthesolarfeasibilityofsites,andcompletethesale.Thecustomerpaysforhighertransactioncostsrelatedtothisinvestedtime.

Groupingindividualsintolarger,aggregatedpurchasingpoolsisoneapproachthathasbeenproventoallowcustomerstoreceivethebestprice.Organizedgroupshavetheadvantageofprovidinginstallerswithalargepoolofalreadyinterestedleads,reducingtheindividualtransactioncosts,andachievinggreaterpurchasingpowerthroughaneconomyofscale.

Withthisinmind,SanFranciscoidentifiedneighborhoodgroupsinterestedinorganizingsolargrouppurchasesandprovidedthemwithassistancetoreachthisgoal.

SFEnvironmentworkedwiththeseneighborhoodgroupstoeducatethemonthedetailsofsolarenergyuse,assesstheirsolarpotential,anddevelopdocumentstheyneededtofacilitatethisprocess.WithhelpfromtechnicaladvisorsattheNationalRenewableEnergyLaboratory(NREL),grouppurchaseRFPsandcontracttemplateswerecreatedandmadeavailabletotheseresidents.

ThreegrouppurchasesweresupportedbySFEnvironment,leadingtoatotalof134residentialinstallationswithacombinedcapacityofmorethan300kW.Participatingresidentswereabletoinstallsolaratpricesdiscountedby20%ormore.

Alongwiththesupportofcommunity-ledsolarpurchasinggroups,SanFranciscoalsoprovidedassistanceto1BOG.Thisnewlyformedorganizationofferedtogatherprospectivecustomersintosolarpurchasingpoolsandmanagetheentireprocessforthem.SFEnvironmentandNRELtechnicaladvisorsworkedwith1BOGtodeveloptheirfirstRFP.

1BOGhasbeensuccessfulinSanFrancisco,with115membersinstallingresidentialsystemswithacombinedcapacityof300kW.FollowinginitialsuccesswiththismodelinSanFrancisco,1BOGexpandeditscampaignsto16citiesinninestates,andplanstomoveintomorecitiesinthefuture.

IntheirmostrecentSanFranciscocampaign,1BOGobtainedabasepriceof$5.39perwattfortheirmembers,whichwasmorethan30%belowtheaveragemarketpriceforindividualresidentialsystemsinstalledinthecity.

Addressing Multi-Tenant Barriers to Going SolarOfSanFrancisco’s346,000housingunits,68%arewithinmulti-tenantbuildings,withnearly35%oftheseinbuildingshavingbetweentwoandnineunitsandtheother33%inbuildingshaving10unitsormore.Therearenumerouscomplexissuesassociatedwithgettingsolarontothesebuildings.Barrierstosolarexistformostmulti-tenantrentalhousing,aswellasowner-occupiedunits,suchascondominiums.

SanFranciscoorganizedmeetingsamongsolarinstallers,landlords,tenants,andrelevantcitydepartmentstoidentifythebarrierstomulti-tenantsolar.Fromthesemeetings,a

numberofissuessurfaced.OneissuethatwasdealtwithrelativelyquicklyandeasilywaschangingtherequirementthatstipulatedtheGoSolarSFlocalincentivepaymentgotothehostcustomer(accountholder)ratherthanallowingittogotothelandlordwhopurchasedthesystem.

Amoredifficultissuetoaddresswasthatofnet-meteringinrentalproperties.Thevastmajorityofmulti-tenantbuildingsinSanFranciscoaresub-meteredforelectricityratherthanmaster-metered,meaningeachunithasitsownelectricaccountheldandpaidforbythetenant.Currentnet-meteringrulesrequireeachaccount(meter)beconnectedtoitsownsolarsystem,andcreditscanonlygotooffsettheelectricityusebythataccount.Inthissituation,theeconomiccaseforsolarishardtomaketolandlordswhomake

boththedecisionwhethertousesolarandthesystempurchase.

Sincethelandlorddoesn’tpaytheelectricbillfortenantunits,heorsheisunabletoreceivethebenefitofthesavingsprovidedbyoffsettingutilityusewithsolarenergy.

ItalsoisunclearwhetherlandlordscanreceiveapprovalfromtheSanFranciscoRentBoardtopasssolarsystemcoststhroughtotenantswhobenefit.

SFEnvironmentandtheRentBoardamendedtherentordinancetospecifysolarasa“qualifiedrenewableenergyimprovement,”buthavebeenunabletogetthislegislationthroughtheBoardofSupervisors.Itispossiblethatlandlordscouldgetpass-throughapproval,butitisuncertainbecause,todate,nolandlordhaspursuedthisandsetprecedent.

San Francisco met with installers, landlords,

and tenants to identify barriers to

multi-tenant solar.

TheGoSolarSFincentivehasprovidedsomeabilitytoovercometheeconomicbarriersbyallowingbuildingownerstotakearesidentialincentiveforeachmeterservedbysolar.

Additionalobstaclesidentifiedincludethedifficultylandlordsandinstallershaveobtainingtenants’electricalusagehistoryfromthelocalutility,whichisneededtosizesystemsappropriately;theamountofduplicatepaperworkrequiredtoapplyforasolarrebateforeachmeterservedunderboththestateCaliforniaSolarInitiative(CSI)andGoSolarSFprograms;andthelimitedamountofroofareaavailableforsolar,manytimesmakingitimpossibletoservemorethanthecommonarealoadsofthebuildings.

Mostbuildingsaremaster-meteredforgasuseandlandlordspaythebill.WiththenewCSI-Thermalstateincentiveprogramforsolarwaterheating(SWH),theabilitytomaketheeconomiccaseforSWHiseasierthanforphotovoltaics(PV)onthesebuildings.SWHalsoneedsmuchlessroofareathanPVtoproduceenoughenergyfortherelatedload.Forthesereasons,SanFranciscohasturneditsfocusonmulti-tenantsolartowaterheatingratherthanPVinstallations.

Top TakeawaysSanFranciscohasthefollowingrecommendationsforotherlocalgovernmentslookingtosupportsolarenergy:

• Provideeasyaccesstoacomprehensiveinformationresourceforresidentsexploringthesolaroptionandleadbyexamplewithhigh-profilemunicipalsolarprojects.

• Reducethecostofsolartobringmorecustomersintothemarketthroughorganizedgrouppurchasesandlocalincentiveprograms.

• Identifyandunderstandbarriers,suchasthoseexperiencedbymulti-tenantbuildingownersinSanFrancisco.However,thisisonlyhalfthebattle.Mostsolutionsarefairlycomplex.Forexample,avirtualnetmeteringprogramrequiresacombinationoftechnical(metering),administrative(billing),andlegal/equity(determininghowcreditsareapportioned)considerations,tonameafew.Potentialsolutionsincludecreatingarobustfeed-in

tariffprogramthatdisconnectson-sitedemandfromsolargenerationpayments,or,barringthat,somesortofvirtualmeteringsolutionsimilartowhatSanDiegoispilotingfortheCSIprogram.

Next StepsSupportedinpartbytheSolarAmericaCitiesSpecialProjectsfunding,SanFranciscowillfocusonthefollowingactivities:

• Developinganinnovativesolarfinancingoptionforsmalltomid-sizecommercialsites

• Developinganinnovativesolarfinancingoptionforschools

• SupportingtheMayor’sOfficeofHousinginthedevelopmentofinnovativedebtfinancingforsolarwaterheatingonaffordablehousingbuildings.

SanFranciscowillcontinuewithsolareffortsoutsideoftheSolarAmericaCitiesSpecialProjects,including:

• Continuedplanninganddevelopmentofnewmunicipalsolarinstallations

• StreamlinedpermittingforSWH

• Optionsforprovidingadditionalincentivesforin-citysolargenerationincoordinationwithSanFrancisco’sCommunityChoiceAggregationprogram,CleanPowerSF

• Explorationoftheoptionsavailablefordevelopinga“communitysolar”program,suchasSacramentoMunicipalUtilityDistrict’sSolarShares,toallowresidentswhoareunabletoinstalltheirownsolarsystemstocontributetoandreceivebenefitfromanoff-sitesolarsystem.

7

Additional Resources• SFEnvironment:www.sfenvironment.org/renewableenergy

• SanFranciscoSolarMap:sf.solarmap.org

• GoSolarSF:www.solarsf.org

• GreenFinanceSF:www.greenfinancesf.org

• CleanPowerSF:www.cleanpowersf.org

For more city information, contact: DepartmentoftheEnvironment,CityofSanFranciscoEmail:sfenvironment@sfgov.orgTelephone:415-355-3700 Formoreinformationongoingsolarinyourcommunity,visit Solar Powering Your Community: A Guide for Local Governments at http://solaramericacommunities.energy.gov/resources/guide_for_local_governments/

Formoreinformationonindividualcities’solaractivities,visitwww.solaramericacommunities.energy.gov/solaramericacities/action_areas/

EERE Information Center1-877-EERE-INFO(1-877-337-3463)www.eere.energy.gov/informationcenter

Printedwitharenewable-sourceinkonpapercontainingatleast50%wastepaper,including10%postconsumerwaste.

PreparedbytheNationalRenewableEnergyLaboratory(NREL)NRELisanationallaboratoryoftheU.S.DepartmentofEnergyOfficeofEnergyEfficiencyandRenewableEnergyOperatedbytheAllianceforSustainableEnergy,LLC

DOE/GO-102011-3220•October2011

AnnArbor AustinBerkeleyBostonDenverHoustonKnoxvilleMadisonMilwaukeeMinneapolis-SaintPaulNewOrleansNewYorkOrlandoPhiladelphia PittsburghPortlandSacramentoSaltLakeCitySanAntonioSanDiegoSan FranciscoSanJoséSantaRosaSeattleTucson

Clockwise from top left: Photovoltaic system in Philadelphia Center City district (photo from Mercury Solar Solutions); rooftop solar electric system at sunset (photo from SunPower, NREL/PIX 15279); Premier Homes development with building-integrated PV roofing, near Sacramento (photo from Premier Homes, NREL/PIX 15610); PV on Calvin L. Rampton Salt Palace Convention Center in Salt Lake City (photo from Utah Clean Energy); PV on the Denver Museum of Nature and Science (photo from Denver Museum of Nature & Science); and solar parking structure system at the Cal Expo in Sacramento, California (photo from Kyocera Solar, NREL/PIX 09435)