HomeMy WebLinkAbout19 Solar Rebate Program Agenda Item # 19
Liblic Utility District
WORKSHOP
To: Board of Directors
From: Kathleen Neus
Date: February 04, 2009
Subject: Discussion of the Solar Rebate Program (SB1) and Green Tags
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop is a review of the District's Solar Program (SB-1) and the District's
Voluntary Green Tag Program.
2. HISTORY
SOLAR PROGRAM (SB-1)
As part of Governor Schwarzenegger's Million Solar Roof Program, public electric
utilities must adopt, implement and finance a solar initiative program by January of
2008. SB-1 imposes a state mandated local program that requires the District to
make program information available to its customers. the District must use rate payer
funds and expend $1,773,408 over ten years; the dollar amount was set by the
California State Legislature. The dollar amount is based upon the District's
percentage of the total statewide load served by all local publicly owned electric
utilities within California. In addition, SB-1 establishes specific requirements for local
programs, including system incentives and a minimum rebate amount.
The District hired Efficiency Services Group in June of 2007 to help the District to
prepare and implement the District's Solar Program as required by SB-1.
VOLUNTARY GREEN TAGS
In an effort to help District customers, residential and commercial to reduce their
individual environmental impact, the District started a Voluntary Green Renewable
Energy Credits Program. Green power or "renewable energy" is considered energy
that is generated form resources that contribute minimal carbon dioxide emissions if
any. Renewable energy sources are wind, Photovoltaic, landfill gases, biomass,
geothermal and hydroelectric.
The District buys Green Tags from Bonneville Environmental Foundation (BEF) a non-
profit organization that was founded in 1998 to fund watershed restoration and to
develop new sources of renewable energy. BEF markets green power products to
public utilities, businesses, government agencies and individuals.
Green Renewable Energy Credits Program is voluntary in nature and the generated
green power is not necessarily fed back into the purchaser's power grid.
One Renewable Energy Credit (RECs) also called "Green Tags" is equal to 100kWh
of clean renewable energy (1,000 kWh of renewable energy is the equivalent of
offsetting 1,500 miles of emissions from a standard car).
3. NEW INFORMATION
SOLAR PROGRAM
The Federal Government not only extended the tax credit for eight years on solar
installations they also increased the tax credit from $2000 to 30% of the cost of the
project. Due to this tax extension some of the applicants have requested to be moved
into 2009 or 2010.
To date there have been 38 applications; 12 commercial applications and 26
residential applications. There were ten completed projects in 2008 representing 35.3
kW of installed solar.
Attached to this report is a summary of the other NCPA Members Utilities rebate
schedule. Efficiency Services Group, the company who helped the District write the
Solar Program oversees the City of Healdsburg's Solar Program; I was told by
Efficiency Services Group that there was not very good participation and that they
were going to rethink the rebates to attract more customers.
VOLUNTARY GREEN TAGS
The District charges and additional 2 cents per kWh to participate. To date the District
has purchased 160 Green-E Certified Green Tags. There are five total participants;
three residential and two commercial. The two commercial participants are actually
owned by the same person just two different locations.
The Voluntary Green Tag Program has received media and other attention. The
Program was detailed on the front page of the Sierra Sun with other instances located
further in the paper. The Program was also discussed at Board Meetings, in the
District's newsletter Current Connections, and applications were available at the
District's booth at the Home Show in May.
There are only a few NCPA Member Utilities that have a Voluntary Green Tag
program; attached to this report is a summary of the other utilities program.
4. FISCAL IMPACT
SOLAR PROGRAM
The Board approved a customer charge to fund the District's Solar Program. The
customer charge to raise $177, 400 annually is as follows:
Residential $ 0.60 per month
Small Commercial $ 5.00 per month
Medium Commercial $10.00 per month
Large Commercial $15.00 per month
VOLUNTARY GREEN TAGS
The Board approved a $0.02 per kilowatt hour (kWh) usage for those interested in
participating in the program.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Michael D. Holley
General Manager
NCPA Publically Owned Utility Members- Solar Rebates
Utility Rebate per Watt Utility Rebate per Watt
City of Alameda $2.60 City of Roseville $3.00
City of Biggs No information City of Santa Clara
available (Silicon Valley Power) $3.75 6
City of Gridley $2.80 City of Ukiah $2.52/$2.24
City of Lodi $2.60 City of Healdsburg $2.80
City of Lompoc $3.50 Truckee Donner PUD $4.50
City of Palo Alto $2.003 Turlock Irrigation District $3.00
City of Redding $2.80 Port of Oakland No information
available
Plumas Sierra Rural $2.60
Electric
' Alameda - has had a rebate of $3.50 per watt rebate in place for nine years; with only 46
customers. SB-1 deccreases 20 cents per year for 10 years.
2 Lompoc —2008 Rebate: $3.50 per watt but not to exceed '/z the cost of a system or a maximum
of $15,000. 2009 Rebate amount
3 Palo Alto - $2.00 per watt for residential; $2.80 for Small & Medium Commercial; $2.20 for Large
Commercial; $3.75 for Non-Profit/ Public Sector since they are not eligible for the federal solar
investment tax credit.
4 Redding - $2.80 per watt with interconnection to the REU electrical system AND installed with
an orientation ranging from 1600 (Southwest) to 2700 (due West) with panels set with an incline of
50 to 450 tilt.
$3.55 per watt for systems that are installed on a dual tracking system that automatically
adjusts the panels tilt and oreintation from east to west
OR $3.55 per watt with an orientation ranging from 2250 (Southwest) to 2700 (due West)
with panels set with an incline of 450 to 550 tilt.
5 Roseville - $3.00 per watt, maximum rebate per customer is $10,000. Have 90 days from to
complete the project once the confirmation letter has been sent.
6 Santa Clara - $3.75 per watt with a maximum size of 10 kW. Once the system has been
approved, the system must be installed within 6 months.
City of Ukiah - Rebate is on a fiscal year. 2008-2009: $2.52; 2009-2010: $2.24.
8 Truckee Donner PUD - Rebate 2009: $4.50; 2010: $4.05.
Some local NCPA members and what they offer their customers:
Utility Program Name Type of Cost Inception Date
Generation
City of Palo Alto Palo Alto Green Wind, PV $0.015 / kWh / Month- Res 2000/2003
$0.015/ kWh / Month or $15.00 per
1000kWh blocks
Roseville Electric Green Roseville Wind, PV $0.015 / kWh / Month- Res & Small 2005
Com
SMUD Greenergy Wind, landfill gas, 100% - $6.00/ Month 1997
hydro, PV 50% - $3.00 /month
SolarShares PV 2007
Silicone Valley Santa Clara Green Wind, PV 100% - $15.00/ Month 2004
Power Power
PG&E Climate Smart Coastal Redwood $0.00254per kWh (for electricity)
Program Forestland $0.06528 per therm (for natural gas)
Silicone Valley Power—Large Commercial and Industrial customers can purchase Green Tags in 1000 kWh blocks for$15.00 per block.
City of Palo Alto—Business Operators depending on usage can choose$0.015 per kWh per month or pay$15.00 per 1000 kWh blocks.
Roseville Electric—Residential and Small commercial $0.015 per kWh or$15.00 per month for 100% energy usage.
Large Businesses pay$15.00 per 1000 kWh blocks.
PG&E—2009 monthly costs
SKIGreen (Bonneville Environmental Foundation) ski resorts participating in clean energy initiatives. When purchasing a lift ticket, the
individual can request a two dollar contribution towards wind energy which is added to the cost of the lift ticket. Local participating Ski
Resorts include Alpine Meadows, Kirkwood, Mt. Rose and Northstar-at-Tahoe.
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