New Solar Homes PartnershipNew Solar Homes PartnershipProgramProgram

Maggie DimitrovaPacific Gas and Electric Company

February 24th, 2010

2

AgendaProgram Overview

NSHP Guidebook

Application Process

Energy Efficiency & Solar

3

CPUC(CA Public Utilities Commission)

Existing ResidentialExisting CommercialCommercial New Construction

Residential New Construction

4. New Solar Homes Partnership (NSHP)

PG&E SCE CCSE

Program Administrators

CEC(California Energy Commission)

SDG&EPG&E SCE

SB 1

Program Administrators

Low Income Solar (LISP)

1. California Solar Initiative (CSI)

3. Single Family2. Multi-family

Existing Low Income

Grid Alternatives

BVES

4

NSHP ProgramProgram started January 1, 2007 – December 31, 2016

Purpose •Provide incentives and support activities for

installing eligible solar photovoltaic (PV) systems on new homes

Statewide Goals •Create a self-sustaining market for solar

homes where builders incorporate high levels of energy efficiency and high performing solar systems

•400 MW; $400 million budget

5

NSHP Administration

Program Administrators – PG&E, SCE, SDG&E, and BVES

PG&E took over the program administration on June 16, 2008

•Processing only new reservations

The CEC – Guidebook, NSHP web tool, CEC PV Calculator, marketing & outreach

New NSHP Guidebook adopted January 27th, 2010

6

NSHP EligibilityWho?

•Builders, developers, and custom home owners

What?

•Market segment - residential new construction•Custom and production homes•Single and multifamily buildings•Market rated and affordable housing

7

NSHP Incentive Structure

Incentives•One time, up-front, expected performance based incentives (EPBI)•Decline to zero over 10 years as megawatt goals are achieved

Market Rate Housing•Base Incentive •Solar as a Standard Feature

Affordable Housing•Residential Units •Common Area

8

Market Rate Housing Incentive Level

9

Affordable Housing Incentive Level

10

NSHP Guidebook

11

NSHP Requirements• PV system size 1 kW AC or larger

• Grid connected with eligible utility

• Sized to offset the end-use consumer on-site electric load

• Expected performance based incentives, calculated with the CECPV calculator

• New, certified system components listed on the CEC’s eligible equipment list

12

NSHP Requirements (Cont’d)• Equipment seller must be registered with the CEC

• Ten year warranty on system components & labor

• Building must achieve energy efficiency above current Title 24

• Third-party field verification of energy efficiency measures and PV system (HERS rater)

13

NSHP Energy Efficiency RequirementTier 1 - minimum building energy efficiency (EE) requirement

•15% better than Title 24 EE Building CodeTier 2 –

•2005 Title 24 - 35% better than T-24, 40% reduction in cooling load

•2008 Title 24* - 30% better than T-24, 30% reduction in cooling load

Energy Star® appliances

* 2008 Title 24 in effect January 1, 2010

14

New NSHP GuidebookGuidebook applicability

• All new applications must abide by the 3rd edition • Approved applications governed by the 2nd

edition • Exceptions – Lease/PPA agreements;

increase system size, but the incentive will be capped at 7.5 kW

• Submit the incentive claim with simplified process outlined in the 3rd edition

• For incomplete applications, the applicant may opt for either with a written notice

15

What’s new?

• Clarifies what is considered “new” residence under the NSHP program• Allows third party system ownership• Modifies “Solar as an Option”• Allows builders to apply in phases • Limits the incentives to the first 7.5kW –except common area and virtual net metering projects • Gives applicants the option to designate a representative• Requires inspection of all EE measures installed to exceed T-24

16

Cont’d…•Allows system sizes that have increased after reservation to qualify for the original incentive level• Limits the California Flexible Installation to developments •Eliminates the need for annual retailer registration • Simplifies the NSHP forms and eliminates the NSHP – 1.6 application process• Gives automatic extensions to projects with unexpired, valid reservations as of January 1st, 2010

17

Cont’d…Affordable Housing Projects

• Includes language for Virtual Net Metering• Allows projects with occupancy permit less than 2 years old• Reduces the affordable housing restriction requirement from 45 to 10 years• TCAC projects may submit EE documentation 60 days after reservation approval

18

Application Process

19

Before you Apply

•Establish electric service from PG&E

•Submit application for Net Energy Metering

•Participate in PG&E’s Energy Efficiency Program for additional incentives

•Review NSHP Guidebook

•Apply online at https://newsolarhomes.org

20

Application Process for All Projects, Except for Solar as an Option

20

•NSHP-1 Form•Building Permit/Final Subdivision Map•EPBI Documentation

•CF-1R-PV Form•.emf and .her files

•Equipment Purchase Agreement and Installation Contract•Energy Efficiency Documentation

•CF-1R/PERF-1 Form•.bld or .mp7/.mp8 file•Construction plan set

Incentive Reservation

21

Additional DocumentsAffordable Housing Projects Third-Party Ownership Projects

• Appropriate housing type documents

• Regulatory Agreement• Energy efficiency

documentation can be submitted later for TCAC projects

• Lease/Power Purchase Agreement for 10 years

• Status report for the first 5 years

• Equipment purchase agreement waived

• Installation contract includes equipment for each site

21

22

Application Process for Solar as an Option

Reservation Documents•NSHP-1 Form•Final Subdivision Map•Equipment Purchase Agreement and Installation Contract•Build-Out Schedule

22

23

Application Process for Solar as an Option

Update Documents•NSHP-1.5 Form•EPBI Documentation

•CF-1R-PV Form•.emf and .her files

•Energy Efficiency Documentation

•CF-1R/PERF-1 Form•.bld or .mp7/mp8 file•Construction plan set

•Project Status Report 18 months into reservation

23

24

Payment Claim

Required Documents -

• NSHP 2 Payment Claim Form

• NSHP 3 - 10 year warranty

• Payee data record (STD-204)

• Certificate of field verification & diagnostic testing• Energy Efficiency - CF-4R and CF-4R-NSHP• PV system - CF-4R-PV one per system• New CF-1R-PV and input files if equipment

changes• Permission to operate letter received

• Lease agreement, if applicable

25

Energy Efficiency & Solar

26

26

PG&E’s Integrated Approach

Reduce Energy

Use

Renewable Power Supply

NeutralizeEnergy

Use

Energy Efficiency

Solar &

WindClimate Smart

27

2727

Why energy efficiency?Homeowner

•Savings – lower energy bill•Comfort – energy efficient, solar home•Environment – reduced carbon footprint

Builder/Developer•Differentiation from competition•Incentives for both energy efficiency and solar•Ease of access and reduced paperwork

Solar Contractor•Differentiation from competition•Customer satisfaction

28

28

California Advanced Homes Program

Timeline - January 1, 2010 through December 31, 2015

Performance – based approach

Building Type•Single-family detached homes•Duplex

Non – Qualifying Facilities •Remodels, additions, mobil homes, residential care facilities, hotels, motels, dormitories

29

CAHP Incentive Structure• The baseline is 15% better than 2008 T-24 Energy Efficiency Code

• Incentives increase incrementally as the performance of the structure increases

• A calculator is provided with the agreement

30

30

Additional IncentivesCalifornia ENERGY STAR® New Homes – 10% bonus

Green Home Certification – 10% bonus

Compact Homes – 15% bonus

kW reduction (Working Toward Zero Peak Homes)

New Solar Homes Partnership (NSHP) Tier II -

$1,000

Design Team Incentive – 50% of cost up to $5,000

31

3131

California Multifamily New Homes ProgramAdministered by PG&E and implemented by Heschong Mahone Group, Inc.

HMG facilitates EE design and construction in Multifamily housing

•Design assistance and training•Financial incentives•Program coordination

2010 – 12 application materials and incentive structure will be announced by the end of Q1

•Accepting “Letter of Intent”

32

Additional ResourcesPG&E NSHP Website: www.pge.com/nshp; 1-877-743-4112

State Solar Website: www.gosolarcalifornia.ca.gov

NSHP web tool: https://newsolarhomes.org

California Advanced Homes Program: www.pge.com/newhomes; 1-800-342-7737

California Multifamily New Homes Program:www.h-m-g.com/multifamily/CMFNH

33