Pursuing Economic Development through Local Government Solar Programs and Policy.

Pursuing Economic Development through Local Government Solar Programs and Policy

NC Clean Energy Technology Center afproudl@ncsu.edu Autumn Proudlove The Solar Foundation awinn@solarfound.org Alex Winn

The SunShot Solar Outreach Partnership (SolarOPs) is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the US. About the SunShot Solar Outreach Partnership

 Increase installed capacity of solar electricity in U.S. communities  Streamline and standardize permitting and interconnection processes  Improve planning and zoning codes/regulations for solar electric technologies  Increase access to solar financing options About the SunShot Solar Outreach Partnership

We want to get to know you better

Program Overview and Local Policy Context Soft Costs and Local Impacts Break Soft Cost Reduction Strategies Policy and Program Recommendations Lunch and Local Speaker Panel Discussion and Next Steps Agenda 09:15 – 09:55 09:55 – 10:25 10:25 – 10:40 10:40 – 11:40 11:40 – 12:25 12:25 – 1:10 1:10 – 2:00

Solar Technologies 8 Solar Hot WaterConcentrated Solar Power Solar Photovoltaic (PV)

Solar Technologies 9 Solar Hot WaterConcentrated Solar Power Solar Photovoltaic (PV)

Some Basic Terminology Panel / Module Cell

Some Basic Terminology Array

e-e- e-e- Some Basic Terminology Capacity / Power kilowatt (kW) Production Kilowatt-hour (kWh) e-e-

Some Basic Terminology Residence 5 kW Office 50 – 500 kW Factory 1 MW+ Utility 2 MW+

Solar Economic Growth Source: SEIA/GTM Research – 2009/2010/2011/2012 Year in Review Report http://www.seia.org/research-resources/us-solar-market-insight http://www.seia.org/research-resources/us-solar-market-insight 14 ~40% CAGR

Solar Job Growth Source: SEIA Estimates (2006-2009), The Solar Foundation’s National Solar Jobs Census (2010-2013) 15 SEIA Estimates The Solar Foundation

Job Creation Sources: Interstate Renewable Energy Council, The Solar Foundation, Meister Consultants Group 16 90% Correlation

42 Jobs and $4.9 Million The Local Economic Opportunity Source: JEDI Model, NREL In economic output 1 Megawatt of Residential Solar Development in Michigan:

176 solar companies that employ 2,700 people Economic Development in Michigan Source: SEIA, The Solar Foundation There are currently

Economic Development in Michigan Source: SEIA “National Solar Database”

Price Stability Source: ISO New England, Inc. 20

Valuable to Community & Utilities Source: Rocky Mountain Institute (http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf)http://www.rmi.org/Content/Files/eLab-DER_cost_value_Deck_130722.pdf 21

Smart Investment for Homeowners Source: LBNL, Exploring California PV Home Premiums (2013) $8,892 $20,714 $47,312

Smart Investment for Businesses Source: Solar Energy Industries AssociationSolar Energy Industries Association 445 megawatts deployed as of August 2013 – enough to power 73,400 homes

Smart Investment for Governments Source: Borrego Solar 24

Smart Investment for Schools Source: The Solar Foundation (http://schools.tsfcensus.org)http://schools.tsfcensus.org Current: + 3,752 + 40,000 – 72,000 Potential: $ $ = $77.8m $800m =

Michigan Solar Market Source: SEIA/GTM Research, Solar Market Insight ~22 Megawatts Enough to power approx. 2,200 MI homes

Installed Capacity by ZIP Code Source: NREL Open PV

Installed Capacity by ZIP Code Detroit/ Ann Arbor Grand Rapids/ Muskegon Traverse City

US Solar Market Source: IREC, Solar Market Trends 2013 0.2% of US capacity

World Solar Market Source: REN 21 Germany 26 % USA 8.6% ~8.5% of World Total

US Solar Resource Source: National Renewable Energy Laboratory 31

The Cost of Solar PV Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL); Solar Energy Industries Association Solar Market Insight Q2 2014 44% drop in price since 2010 44% drop in price since 2010

Subsidies and Support Source: Management Information Services, Inc. October 2011. 60 Years of Energy Incentives: Analysis of Federal Expenditures for Energy Development; SEIA, May 1, 2012. Federal Energy Incentives Report. 33 $369 Billion $121 Billion

The Cost of Solar in the US Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

The Cost of Solar in the US Profits, Taxes, & Overhead Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

The Cost of Solar in the US Solar Soft Costs Source: NREL (http://www.nrel.gov/docs/fy14osti/60412.pdf)http://www.nrel.gov/docs/fy14osti/60412.pdf LBNL (http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdf)(http://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf )http://emp.lbl.gov/sites/all/files/lbnl-6350e.pdfhttp://www1.eere.energy.gov/solar/pdfs/sunshot_webinar_20130226.pdf

The Cost of Solar in the US $3.32 $3.28 $1.90 No change in soft costs between 2010 and 2012

Session Goal To discuss previously identified and new strategies for enhancing economic development, job creation, and energy customer benefits through solar deployment.

Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond State & Utility Renewable Portfolio Standard Net MeteringInterconnection Solar Access Property Tax Exemption A Policy Driven Market State & Utility

Federal Investment Tax Credit Accelerated Depreciation Qualified Energy Conservation Bond Renewable Portfolio Standard Net MeteringInterconnection Solar Access Property Tax Exemption A Policy Driven Market State & Utility

Type: Tax Credit Eligibility: For-Profit Organization Value: 30% of the installation cost Availability: Through 2016 Investment Tax Credit

Accelerated Depreciation

+ 3.7% + 2.3% $ Qualified Energy Conservation Bond US TreasuryLocal Gov Bond Holders Project QECB

Qualified Energy Conservation Bond Source: Energy Programs Consortium (June 2014) Local GovernmentAmountUse Saginaw County$2,088,779Efficiency improvements to county facilities Osceola County$650,000Efficiency improvements to county annex bldg. Genesee County$4,515,976EECBG City of Greenville$800,000 Ottawa County$2,825,981 Total Used$10,880,736 Total Remaining$92,899,264

Renewable Portfolio Standard Any electricity source Renewable Energy

Renewable Portfolio Standard Any electricity source Solar carve-out Renewable Energy

$ e-e- $ $ e-e- REC Renewable Portfolio Standard Utility Fossil Fuel Renewable Energy Two revenue streams

Michigan RPS Source: DSIRE Any electricity source

29 states, + Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals). 29 states, + Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals). www.dsireusa.org / August 2012. Renewable Portfolio Standard

Net metering allows customers to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage. Net Metering

Net Metering: Market Share Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf More than 93% of distributed PV Installations are net-metered

Net Metering Source: DSIRE (July 2013) 43 states, + Washington DC and 4 territories,have Net Metering Policies

Provides a “report card” for state policy on net metering and interconnection http://freeingthegrid.org/ Net Metering: Resources Resource Freeing the Grid

Net Metering: Michigan Source: Freeing the Grid Net Excess Credit Value Retail Rate (<20 kW) Power Rate (>20 kW System Capacity Limit 150 kW Aggregate Limit 0.75% of peak load Credit Rollover Indefinite B 2007200820092010201120122013 DFBAABB B 2014

Standardized interconnection rules require utilities to provide a fair and transparent pathway for customer-generators and other developers of distributed energy resources to interconnect with the utility’s grid. Interconnection

Interconnection: Michigan Source: Freeing the Grid Applicable Technologies Includes solar PV, as well as other distributed generation technologies System Capacity Limit No limit specified Bonus Insurance waived for generators up to 25 kW; dispute resolution process Applicable Utilities IOUs, electric co-ops 2007200820092010201120122013 DDCCCBC C 2014 C

Solar Access Source: Google Earth A landowner does not have any legal right to the free flow of light and air across the adjoining land of his neighbor. Fontainebleau Hotel Eden Roc Hotel

Solar Access Laws: 1.Increase the likelihood that properties will receive sunlight 2.Protect the rights of property owners to install solar 3.Reduce the risk that systems will be shaded after installation Solar Access

Source: Database of State Incentives for Renewables & Efficiency (www.dsireusa.org) Solar Easements Provision Solar Rights Provision Solar Easements and Solar Rights Provisions U.S. Virgin Islands DC Local option to create solar rights provision

A comprehensive review of solar access law in the US – Suggested standards for a model ordinance www.solarabcs.org Solar Access Resource Solar America Board for Codes & Standards

1.What is the status of Detroit’s solar policy, and how does this affect the value of solar to customers? 2.How would different soft cost-cutting policy actions affect the value of solar to customers? Soft Costs & Local Impacts

What are the top 3 barriers to solar adoption in Detroit? A.High upfront cost B.Lack of education C.Lack of policy support D.Lack of utility support E.Private interests F.Lack of HOA support G.Historic preservation H.Reliability concerns I.Environmental impact J.Other

 Most policies that impact soft costs are controlled at the local level – Permitting & Inspections – City Planning/Zoning – Solar Access Rules (municipal & community association level) – Financing Options Solar Policy in Detroit

 Homeowners wishing to install solar must obtain building & electrical permits from the municipal government Permitting & Inspection Source: IREC Efficient Solar Permitting Presentation- Centralina (2014) Pre-Application (accessing requirements & info on process ) Application Submittal (forms & fees) & Review Inspection

 Why is this important? – Adds cost & time to solar installation – City resources could be spent elsewhere – Creates uncertainty for installers Permitting & Inspection Source: Sun Run Report: http://www.sunrunhome.com/solar-lease/cost-of-solar/local-permitting/ Local permitting and inspection add an average of about $0.50 per watt, or $2,516 per residential install!

Permit forms posted online Checklist for building permits and plans o No checklist for solar permit requirements o Solar permit requirements are currently unclear and difficult to find o No special or expedited permitting procedure is apparent for solar o Expedited plan review request is subject to additional fees Permitting & Inspection: Detroit

Source: City of Detroit website

From the City of Detroit’s website: Permitting & Inspection: Detroit Source: City of Detroit website

Taken from Detroit’s electrical permit application: Permitting & Inspection: Detroit Source: City of Detroit website Electrical Permit Fee: $225 (grid- connected PV system)

Planning & Zoning: Solar Access Source: Database of State Incentives for Renewables & Efficiency (www.dsireusa.org) Solar Easements Provision Solar Rights Provision Solar Easements and Solar Rights Provisions U.S. Virgin Islands DC Local option to create solar rights provision

 Detroit Zoning Ordinance (2012) mentions solar 4 times – 3 out of 4 times vaguely refer to solar PV: Planning & Zoning Source: Detroit Zoning Ordinance: http://www.detroitmi.gov/portals/0/docs/legislative/cpc/pdf/Ch%2061%20Nov%2021,%202012.pdf (2012) “Careful consideration should be given to orientation for solar access to both the proposed project and surrounding development”

 Financing options allow more people to choose solar by providing options for those who don’t have the cash to pay for a system out of pocket Financing Source: NREL, Benchmarking Non-Hardware Balance-of-System (Soft) Costs for U.S. Photovoltaic Systems, Using a Bottom-Up Approach and Installer Survey- Second Edition (Oct. 2013) Source: U.S. Census Bureau QuickFacts Median Household Income (2008-2012) Detroit United States $26,955 $48,471 $53,046 Michigan Detroit’s median income is $26,091 below the national median- financing is particularly important

 Loans – Home equity loans – Unsecured loans  PACE (Property Assessed Clean Energy)  Third Party Ownership – Leases – Power Purchase Agreements (PPAs) Types of Financing Options

 Michigan Saves Home Energy Loan Program  Offers loans for $1,000 to $30,000 for energy efficiency improvements, as well as solar installations – Available to residential customers – Term lengths of 12 to 120 months – APR no higher than 7% Financing: Michigan Saves Source: Database of State Incentives for Renewables and Efficiency (DSIRE)

Financing Offered in Wayne County through Michigan Saves:  Ascentium Captial- Business, Multi-Family, & Public Sector financing  Genisys Credit Union- Residential financing; 4.99% interest rate  MSU Federal Credit Union- 4.99% interest rate  Opportunity Resource Fund- Serves customers previously denied; 6.00%-9.00% interest rate Financing: Michigan Saves

 Michigan signed PACE legislation in Dec. 2010  Detroit has a PACE financing program through Lean and Green Michigan  Open to owners of commercial, industrial, and multi-family properties  Typically no down payment Financing: PACE

Benefits  No upfront cost  No O&M costs  Low risk  Predictable payments Drawbacks  Investor needs higher ROI  Not available in all states Financing: Third Party Ownership Source: DSIRE (map)

Financing: Third Party PPAs Source: Database of State Incentives for Renewables and Efficiency (DSIRE)

 U.S. National Average Residential Electricity Rate= 11.9 cents/kWh  DTE Energy Residential Service Rate (D1) – 11.915 cents/kWh for the first 17 kWh per day – 13.260 cents/kWh for all kWh above 17 kWh per day – PLUS rate riders and monthly service charge of $6.00 Electricity Rates in Detroit Source: U.S. Energy Information Administration Form 861; DTE Energy Rate Book Electricity rates in Detroit are higher than the national average

Electricity rates are projected to increase 48% in Detroit over the next 25 years… Solar’s Financial Value Source: U.S. Energy Information Administration – Annual Energy Outlook 2014 …while the cost of solar continues to decline Tracking the Sun VII: The Installed Cost of Photovoltaics in the US from 1998-2013 (LBNL )

 Analysis based on a 5 kW rooftop system – (nat. avg. is 5.3 kW- rounded down to 5)  System located in Detroit- DTE Energy territory  Cost is based on a Q3 2014 regional average (Midwest)*  Typical energy usage patterns (NREL data)  NREL System Advisor Model (SAM) Solar’s Financial Value *Data provided by EnergySage Disclaimer: Values will vary significantly based on household energy usage patterns, system location, etc.

 Avg. Monthly Bill Savings (First Yr): $80.68  First Year Bill Savings: $968.12  Avg. Annual Bill Savings Over 25 Yrs: $1642  Levelized Cost of Energy (LCOE) – Cash purchase: 19.0 cents/kWh – Fully financed: 10.8 cents/kWh Solar’s Financial Value: Today

 Net Present Value as compared to an investment in stocks (S&P 500)--- 6.61% discount rate – Cash purchase: -$549.43 – Fully financed: $5,408.35  After Tax Cash Flow (Total Net Income) – Cash purchase: $26,417 – Fully financed: $11,934  After Tax Net Equity Cost Flow (Total Costs-- does not include value of energy produced) – Cash purchase: -$14,644 – Fully financed: -$29,126 Solar’s Financial Value: Today

 Impact of reducing soft costs by $0.64 cents/Watt*  Levelized Cost of Energy (LCOE) – Cash purchase: 15.6 cents/kWh – Fully financed: 8.87 cents/kWh  Net Present Value as compared to an investment in stocks (S&P 500) – Cash purchase: $1,911.34 – Fully financed: $6,789.36 Impact of Cutting Soft Costs *Figure chosen from LBNL report (How Much Do Local Regulations Matter?) stating impact of soft costs ranges from $0.64-$0.93/W

 After Tax Cash Flow (Total Net Income) – Cash purchase: $28,791 – Fully financed: $16,933  After Tax Net Equity Cost Flow (Total Costs-- does not include value of energy produced) – Cash purchase: -$12,269 – Fully financed: -$24,127 Impact of Cutting Soft Costs

 Impact of a 20% discount on total system cost  Levelized Cost of Energy (LCOE) – Cash purchase: 15.1 cents/kWh – Fully financed: 8.6 cents/kWh  Net Present Value as compared to an investment in stocks (S&P 500) – Cash purchase: $2,295.84 – Fully financed: $7,005.14 Impact of a Solarize Program

 After Tax Cash Flow (Total Net Income) – Cash purchase: $29,162 – Fully financed: $17,714  After Tax Net Equity Cost Flow (Total Costs-- does not include value of energy produced) – Cash purchase: -$11,898 – Fully financed: -$23,346 Impact of a Solarize Program

Local Policy Planning for Solar Solar in Development Regulation Effective Solar Permitting Process Solar Market Development Tools Effective Local Solar Policy Local Solar Policy

Neighborhood Plans Corridor Plans Special District Plans Green Infrastructure Plans Energy Plan Climate Action Plan Planning for Solar Development Source: American Planning Association Communitywide Comprehensive Plan

Detroit Master Plan of Policies (2009) Citywide Policies: Environment and Energy The City’s central location among the Great Lakes necessitates sound environmental policy. Current environmental trends require new directions in local policy that will help sustain our vital ecosystem and insure a high quality of life for all residents. Environmental and energy considerations transcend political boundaries and require regional cooperation… Existing Goals

Environment and Energy Goal 2: Ensure Environmentally Healthy Neighborhoods Goal 3: Minimize Resource Use and Waste Policy 3.1: Promote the use of renewable and/or sustainable resources Policy 3.4: Provide incentives to attract green industry and to encourage retooling of existing industries to incorporate sustainable practices. Goal 5: Improve Air Quality Health and Social Services Goal 4: Reduce Health Risks for Young Children Existing Goals: Citywide

Environment and Energy “Attract industries that emphasize pollution minimizing technology and research.” Cluster 4 Middle East Central Upper East Central Cluster 5 Springwells West Riverfront Existing Goals: Neighborhoods

A guide for planners on determining and implementing local solar goals, objectives, policies, and actions www.planning.org Resource Planning for Solar Energy Technical Resources

Zoning Standards Source: American Planning Association SectionTopics to Address DefinitionsDefine technologies & terms ApplicabilityPrimary vs. accessory use Dimensional Standards Height Size Setbacks Lot coverage Design Standards Signage Disconnect Screening Fencing

Typical Requirements:  Permitted as accessory use  Minimize visibility if feasible  Requirements: – District height – Lot coverage – Setback Zoning Standards: Small Solar

Typical Requirements:  Allowed for primary use in limited locations  Requirements: – Height limits – Lot coverage – Setback – Fencing and Enclosure Zoning Standards: Large Solar

Zoning Standards: Model Ordinances Resource American Planning Association Bethany Beach, Town of. 2010. Ordinance no. 455: An Ordinance to Add A New Chapter 484 “Solar Energy Systems” To the Town Code of Bethany Beach. Allows solar energy systems for on-site energy use as permitted accessory uses in all zoning districts. Encourages rooftop panels on side and back roof slopes rather than ground-mounted systems. Commercial solar energy installations are prohibited. https://www.planning.org/pas/infopackets/open/pdf/30intro.pdf

Typical Requirements:  Prevent permanent loss of “character defining” features  Possible design requirements – Ground mounted – Flat roof with setback – Panels flush with roof – Blend color Zoning Standards: Historic Source: SolarCentury

Zoning Standards: Historic Resource North Carolina Clean Energy Technology Center Provides sample design principles and example regulations incorporating historic preservation into sustainability and energy projects. www.solaroutreach.org

Private Rules on Residential Solar Resource The Solar Foundation Guide for HOAs on solar access law and simple recommendations for reducing barriers to solar in association-governed communities. www.solaroutreach.org

Provide clear, unambiguous design guidelines Post rules and requirements online Provide a list of all required documents Waive design rules that significantly increase cost or decrease performance Allow exceptions from tree removal rules for solar Solar in HOAs: Best Practices

Installation Soft Costs 116 $0.55 Per watt

Solar Ready Construction: Preparing a building for solar at the outset can help make future solar installations easier and more cost effective. Update Building Code

Require builders to: Minimize rooftop equipment Plan for structure orientation to avoid shading Install a roof that will support the load of a solar array Record roof specifications on drawings Plan for wiring and inverter placement Update Building Code

Source: Solar Ready: An Overview of Implementation Practices [Draft]. NREL, Feb. 18, 2011. 60% Savings when a building is solar ready 60% Savings when a building is solar ready

Source: NREL (http://www.nrel.gov/docs/fy13osti/59155.pdf)http://www.nrel.gov/docs/fy13osti/59155.pdf 120 Installation Labor Roadmap

18,000+ local jurisdictions with unique zoning and permitting requirements Challenge: Inconsistency Source: http://www.nrel.gov/docs/fy12osti/54689.pdfhttp://www.nrel.gov/docs/fy12osti/54689.pdf

Consumer Challenges Source: Forbes

Regulatory Barriers $0.17 Per Watt

Planning & Permitting Roadmap

Permitting: Best Practices Resource Interstate Renewable Energy Council Outlines leading best practices in residential solar permitting and provides examples of implementation. http://projectpermit.org/wp-content/uploads/2013/04/Expanded-Best-Practices-7.23.13_VSI.pdf

Financing Costs 127 $0.30 Per watt

Third Party Ownership: Cost

Fewer than 5% of the 6,500 banks in the US are actively financing solar PV projects Engage Local Lenders

A guide for local governments seeking to engage financial institutions www.solaroutreach.org Engage Local Lenders: Resources Resource Local Lending for Solar PV

 City Goals – Boost the local economy and employment – Help residents and businesses save on energy expenses – Find ways for the city to save energy – Don’t get “left behind” on solar Policy & Program Recommendations Others?

 Streamline City’s Solar Permitting Process  Revise Zoning Codes to Address Solar  Residential Bulk Purchasing (Solarize) Program  Engaging Local Lenders  Performance Contracting Policy & Program Recommendations

Solar Permitting Best Practices: Post Requirements Online Implement an Expedited Permit Process Enable Online Permit Processing Ensure a Fast Turn Around Time Streamlined Permitting Source: IREC/ Vote Solar

Transparent process Source: Breckenridge, CO (http://www.townofbreckenridge.com/index.aspx?page=694)http://www.townofbreckenridge.com/index.aspx?page=694 Permit checklist Electronic materials

Solar Permitting Best Practices: Collect Reasonable Permitting Fees Narrow Inspection Appointment Windows Eliminate Excessive Inspections Train Permitting Staff in Solar Streamlined Permitting Source: IREC/Vote Solar

Expedited Permitting:  Simplifies requirements for PV applications  Facilitates efficient review of content  Minimize need for detailed studies and unnecessary delays Model Expedited Permitting Process Resource Solar America Board for Codes & Standards 1-1. Example Design Criteria: Size < 10-15 kW Code compliant Weight < 5 lb / sqft 4 strings or less 1-1. Example Design Criteria: Size < 10-15 kW Code compliant Weight < 5 lb / sqft 4 strings or less

 List out all current requirements with permitting staff  Examine Solar ABCS model permitting process & streamlined processes from other cities  Identify opportunities to streamline Detroit’s process or consider adopting the Solar ABCS model  Ensure fees represent staff time required  Clarify solar permitting requirements- list on website  Consider creating an expedited process for systems meeting certain requirements Permitting Next Steps

Revise Zoning Code  Consider utilizing a model zoning ordinance for solar energy systems  Specifically address:  Definitions  Uses  Siting Preferences  Design Preferences

 Planning & Visioning– What are Detroit’s solar goals?  Look at Massachusetts and North Carolina model solar development ordinances  Utilize existing model ordinances and adapt to Detroit’s needs for both large solar and small solar Zoning Next Steps

 Reduce the upfront cost of solar for residential customers in Detroit (other programs have seen reductions of 20%!)  Expand access to solar & help more residents save on energy costs  Consider streamlining permitting first and engaging local lenders to offer solar financing products to participants Solarize Source: Solarize Plano

Barriers High upfront cost Complexity Customer inertia Solutions Group purchase Community outreach Limited-time offer The Solarize Program

Solarize: Process Select Installer Marketing & Workshops Enrollment Site Assessment Decision & Installation

A household is 0.78% more likely to adopt solar for each additional installation in their zip code Solarize: Lasting Impact Source: NYU Stern and Yale School of Forestry – Peer Effects in the Diffusion of Solar Panels

Solarize: Lasting Impact Source: NREL Lasting Impact

 Reach out to trusted local organizations & those with renewable energy expertise  Provide support for a Solarize campaign run by a local organization  Officially back the program  Advertise the program  Streamline permitting  Ensure financing is available to participants Solarize Next Steps

 Work with local banks and credit unions to offer solar loans  Expands access to solar to those who do not have the cash upfront to pay for a system  Solarize campaigns often work with local lenders Engaging Local Lenders

 Municipal Loans – City of Pendleton, OR  Bank or Credit Union Loans – Home equity loans, unsecured loans – Admirals Bank, local credit unions  PACE Financing  Solar Leases or PPAs (3 rd Party Ownership)  Utility Loans Engaging Local Lenders

 Municipal Loans – City of Pendleton, OR  Bank or Credit Union Loans – Home equity loans, unsecured loans – Admirals Bank, local credit unions  PACE Financing  Solar Leases or PPAs (3 rd Party Ownership)  Utility Loans Engaging Local Lenders

 Resource Information on types of solar financing and what local governments can do to make financing options available to customers www.solaroutreach.org Engaging Local Lenders

 Connect with Michigan Saves and Lean and Green Michigan to identify and publicize existing financing options  Meet with local financial institutions to encourage additional financing options  Coordinate with Solarize organizers to offer financing for participants  Educate consumers on the options available to them Engaging Local Lenders Next Steps

 Incorporating solar into an energy services performance contract (ESPC) Performance Contracting Source: Integrating Solar PV Into Energy Services Performance Contracts: Options for Local Governments Nationwide (NC Solar Center, 2014)

 Limited to no upfront capital required  Guaranteed long-term financial savings  May help stem further job losses and enhance delivery of government services Performance Contracting Source: Integrating Solar PV Into Energy Services Performance Contracts: Options for Local Governments Nationwide (NC Solar Center, 2014)  Knoxville, TN: $1.1M/year shared savings  Cincinnati, OH: shared savings of $153,732/year (phase 1) and $324,819/year (phase 2)

 Identify Energy Services Companies (ESCOs) in your area)  Consider issuing a Request for Proposals (RFP) to select an ESCO  Include ability to include a solar array in the RFP criteria  Network with other cities to learn more about their experiences with this option Performance Contracting Next Steps

 Streamline City’s Solar Permitting Process  Revise Zoning Codes to Address Solar  Residential Bulk Purchasing (Solarize) Program  Engaging Local Lenders  Performance Contracting Policy & Program Recommendations Questions?

1.Recognize successes 2.Identify opportunities 3.Select strategies & best practices 4.Outline implementation plan 5.Discuss barriers to implementation Activity: Solar in Your Community

Part 1: Take 5 minutes to complete the questions in the Developing Effective Solar Policies in Your Community handout.

Activity: Solar in Your Community Spend the next 10 minutes discussing next steps and potential obstacles with others at your table.

Which “best practice” should be pursued first? A.Integrate solar in plans B.Address solar in zoning code C.Adopt solar ready guidelines D.Define permitting process E.Expedite typical solar permits F.Implement fair permit fees G.Expand financing options H.Implement solarize program

How difficult will it be to implement this policy/program? 1.Very easy 2.Somewhat easy 3.Moderate 4.Somewhat difficult 5.Very difficult

Discussion What obstacles stand in the way of implementation?

Discussion What are possible strategies to overcome those obstacles?

Activity: Next Steps What do you pledge to do when you leave today’s workshop? [Orange Card]

NC Clean Energy Technology Center afproudl@ncsu.edu Autumn Proudlove The Solar Foundation awinn@solarfound.org Alex Winn

Pursuing Economic Development through Local Government Solar Programs and Policy.

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