phoenix grid alternatives solar rehabilitation presentation

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


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


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


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


Solar Affordable Housing Program

Volunteer recruitment and training to provide free installation of solar electric systems

GRID 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


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


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


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


Working TogetherStep 1. Client identified either by GRID Alternatives or by Housing Dept

GRID 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


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


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


Working TogetherStep 5. GRID coordinates directly with roofer and electrical contractor

GRID 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


Working TogetherStep 7. GRID conducts mandatory training for volunteers

GRID Alternatives


Working TogetherStep 8. Housing Dept issues check from loan payable to solar

equipment supplier

GRID Alternatives


Working TogetherStep 9. GRID installs system once all other rehab work is complete

GRID 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


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


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


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


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


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


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


• 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


GRID Alternatives1610 Harrison Street, Ste C

Oakland, CA 94612www.gridalternatives.orgTel: 510-550-8535 x314

Erica [email protected]

phoenix grid alternatives solar rehabilitation presentation

Economy & Finance

development alternatives

grid alternatives solar

grid alternativesworking

grid processes

grid coordinates

grid alternativeswhy

renewable energy

homegenerating renewable