Elizabeth Hutchison February 26, 2016 This event will begin at 10 am New Solar Homes Partnership Program Overview of Renewable Energy Division Funding Programs Hello and welcome to the Overview of Renewable Energy Division Funding Programs. My name is Elizabeth Hutchison and I will be giving an overview of the New Solar Homes Partnership program. Elizabeth Hutchison February 26, 2016

Agenda Purpose Background Statistics Conclusion Questions Here is our agenda for this presentation.

Agenda Purpose Background Statistics Conclusion Questions We are going to start with the purpose of our program.

Purpose Senate Bill 1 (SB 1, Murray, 2006) goals: 3,000 MW of installed DG solar PV capacity Self-sufficient solar industry Solar installed on 50% of new homes NSHP-specific goals: 360 MW of installed solar PV capacity PV on highly efficient residential construction In 2006, Senate Bill 1 was signed, creating the statewide solar program known as the California Solar Initiative, and directed implementation from the CPUC and the Energy Commission. The main goals of the CSI program are to : Install 3000 MW of Distributed Generation Establish a self-sufficient solar industry. Enable solar energy systems to become a mainstream option, We always equate this to something like granite countertops. Where new home buyers will have an option to add or upgrade solar systems to their purchase. And the goal of placing solar energy systems on 50% of new homes. For NSHP specifically…..the program goals were more focused on new homes and consisted of: 360 MW of installed DG on new home construction…AND Ensure High-performance solar systems on energy efficient homes NSHP staff verifies these standards through a variety of methods like maintaining an eligible equipment list and relying on third-party field testing for the Energy Efficiency measures.  

Agenda Purpose Background Statistics Conclusion Questions Next I’m going to talk about some program background and requirements

Background What is our program about? Open to all ratepayers in IOU electric service territory Encourages the installation of PV systems on new energy efficient residential construction Expected Performance Based Incentive with tiered rates for increased efficiency levels of new construction NSHP offers incentives to all ratepayers in the IOU electric service territories. As shown on the map this includes PG&E, SCE, SDG&E and BVES. Our program combines both pv system installations with the construction of high efficiency residential buildings. Participants receive a one time financial incentive based on the expected performance of the system and the efficiency of the new home.

The Basic Process This is the basic NSHP process. First, the applicant submits their application online through the web tool application. Energy commission staff will review and if all documents complete, they may approve the applicant’s project and the incentive is reserved. Next, the applicant will have their PV system and Energy efficiency measures installed on their new home, which will be verified by a third party. The building department must finalize the solar permit, then the applicant can apply for interconnection. At this point, the applicant can submit their payment claim application through the web tool . Once energy commission staff reviews and approves, the incentive will be paid.

Incentive Structure Market Rate Affordable Housing Code Tier I Tier II Reserved volume (MW-AC) $2.25 $2.50 $2.60 55.3 $2.00 $2.35 N/A $1.75 5 $1.50 10 $1.25 15 $1.00 35 $0.75 50 $0.50 60 $0.35 65 $0.25 72 Code Res Unit Reserved volume (MW-AC) $3.25 $3.50 3.3 $2.90 $3.15 N/A $2.55 0.25 $2.20 0.5 $1.85 0.75 $1.50 3.5 $1.15 5.0 $0.80 $1.25 6.0 $0.55 $1.00 6.5 $0.35 $0.75 7.2 Here’s our incentive structure. As megawatt targets are achieved, the incentive levels decline Incentives are limited to the first 7.5 kW AC per unit Currently we are at Market Rate level 8 and Affordable Housing level 6 as shown in green

Project Types Project Type Criteria Large Development Development of 6+ homes and solar on at least 50% Small Development/Solar NOT Standard Less than 6 homes or solar on less than 50% of project Custom Home Single site project Common Area Nonresidential portion of residential development (solar load must benefit residents) Affordable Housing At least 20% of homes/units restricted income VNM Any project qualifying for virtual net-metering Here are the different project types that are eligible to participate in the NSHP program. We have Large developments, small developments, solar Not as standard, custom homes, Common areas which include any nonresidential structure that is intended for the sole use of the residents. This can include a pool house, community center, laundry facilities, hallway lighting etc. Affordable housing projects must have at least 20% of their units specified as low income We also allow virtual net metered projects.

Agenda Purpose Background Statistics Conclusion Questions Next on the agenda I will provide some program statistics

Number of Applications NSHP Program Totals   Number of Applications Number of Systems Dollars (Millions) MW (AC) Under Review 200 6,644 Reserved 908 25,106 92.3 81.1 Installed 2,421* 21,557 141.8 67.3 Total 3,529 53,307 234.1 148.4 This was pulled from the GoSolar web site and we update these monthly. As of February 5th, we had 200 applications under review totaling 6644 systems. We have 908 applications reserved, which equals over 25000 systems, totaling 92.3 million dollars and 81.1 MW. Installed so far is 2421 applications equaling 21,557 systems and 141.8 million dollars and 67.3 MW. Source: Go Solar California as of 2/5/2016

Completed Affordable Housing Projects Since the beginning of the program: 6.22 MW installed in affordable housing projects Installed systems have received $19.1 million in incentives To place a spotlight on the affordable housing portion of our program: -6.22 MW of affordable housing systems has been installed, which is 9.2% of all installed NSHP capacity - $19.1 mil has been paid towards affordable housing projects, which is 13.5% of all funding disbursed

Affordable Housing Capacity Installed by Region Here is a chart showing where the majority of the affordable housing projects are taking place. We see 54% in northern CA, 26% in Southern California and 20% in the central valley Valley: Central Valley region North: Everything above San Luis Obispo area, excludes Valley South: San Luis Obispo and everything south, excluding valley

Funding Reserved - Amount of funding reserved each year for affordable housing projects (in millions) There was an upward trend in the amount reserved from the start of the program up until 2011. Reduction in funding through past couple years could be attributed to incentive level decline.

System Capacity Reserved This graph is showing the MW reserved for affordable housing projects each year This shows a fairly consistent trend. The small amount reserved in 2014 could probably be attributed to a backlog in which some projects weren’t approved until 2015

Available Funding Dollars (millions) MW (AC) Available Funding 51.2 Under Review 19.3 23.2 Remaining Funding 31.9 Here is our available funding as of February 5th, 2016. We have 51.2 million dollars available, but with 19.3 million under review, that leaves us with 31.9 million in remaining funding. Source: Go Solar California as of 2/5/2016

Agenda Purpose Background Statistics Conclusion Questions

Conclusion Changes to the program occur through new editions of the Guidebook This requires public notice and opportunities for comments from the public New Guidebook editions are generally followed by public workshops to help stakeholders with education outreach In Conclusion, we are always trying to find ways to streamline our program requirements in order for applicants to ease through this program. Changes to the program occur through new editions of the guidebook. This requires public notice and gives opportunities for the public to submit comments on our proposed changes Once new guidebooks are adopted, staff generally puts on public workshops to help educate stakeholders and applicants on the new changes to the program

Stay Informed More information about NSHP: http://www.gosolarcalifornia.ca.gov/about/nshp.php Submit applications online at: https://www.newsolarhomes.org/WebPages/Public/Login.aspx Energy Commission Web Site: http://www.energy.ca.gov/

Contact Information Brett Arriaga, NSHP Program Lead Brett.Arriaga@energy.ca.gov (916) 653-4487 Renewables Call Center Renewable@energy.ca.gov (916) 653-0237