Reducing Electric Bills in California Multifamily Affordable Housing with Solar+Storage June 15, 2016
Housekeeping
Who We Are www.cleanegroup.org www.resilient-power.org 3
Resilient Power Project • Increase public/private investment in clean, resilient power systems • Engage city officials to develop resilient power policies/programs • Protect low-income and vulnerable communities • Focus on affordable housing and critical public facilities • Advocate for state and federal supportive policies and programs • Technical assistance for pre-development costs to help agencies/project developers get deals done • See www.resilient-power.org for reports, newsletters, webinar recordings 4
www.resilient-power.org
Today’s Speakers • Lew Milford , President, Clean Energy Group • Wayne Waite , Policy Director, California Housing Partnership • Seth Mullendore , Project Manager, Clean Energy Group • Dr. Zach Ernst , Director of Analytics, Geli • Sachu Constantine , Director of Policy, Center for Sustainable Energy
AB 693 Opportunities to Bridge California’s Green Divide Through Integrated Energy Solutions California Housing Partnership Wayne Waite, Policy Director wwaite@chpc.net
What is AB 693? THE BASICS – ① Attributes Funding Source: Dedicated Cap and Trade Allowances Funding Level: Up to $100 million/year Term: 10 years Market: Affordable Multifamily Rental Properties ② Impacts Scale: At least 300 MW Coverage: Approximately 2,000 properties; Nearly ½ of eligible market (4,165 properties in IOU jurisdictions) California Housing Partnership | 2
Why is AB 693 Important? THE GAME CHANGERS – ① Addresses Barriers to Solar Access - Renters, Split Incentives, ② Tenant and Community Benefits - PV generation primarily for tenants, DACs, Workforce hiring ③ Market Transformation - New framework for scaling across market; Advances Zero Net Energy ④ New Product and Financing Opportunities - Favorable conditions to attract equity financing, Pre-paid leases, On- Bill financing ⑤ Platform for Integrated Energy Solutions - Energy Efficiency, Storage, EV California Housing Partnership | 3
How Will AB 693 be Implemented? THE PROCEEDING – (key Issues) ① Administration ② Project scope - What energy solutions can be supported? Urban property solutions ③ Distributing Benefits - How are PV benefits distributed? Units, Property, Community ④ Sources, Uses, and Cost Controls - Solar cost, Leverage, Tenant contributions, ⑤ Consumer Protections - Financial projections, Risk mitigation, Performance guarantees, ⑥ Preserving the Value of Energy Investments - NEM 2.0, TOU Tariff, Demand Charges, Retention of value California Housing Partnership | 4
Eligibility: Is Storage Included? • “ Solar energy system” means a solar energy photovoltaic device that meets or exceeds the eligibility criteria established pursuant to Section 25782 of the Public Resources Code. Eligibility Criteria: 2) … intended primarily to offset part or all of the consumer's own electricity demand. 6) … connected to electrical distribution system within the state Conditions: - Provides optimal solar energy system performance during periods of peak electricity demand - Includes appropriate energy efficiency improvements in the new or existing home or commercial structure where the solar energy system is installed. California Housing Partnership | 5
TOU Moving to Later Peak Periods California Housing Partnership | 6
“It is difficult to get a man to understand something, when his salary depends on his not understanding it. ” Upton Sinclair
Closing the California Clean Energy Divide: Reducing Electric Bills in Affordable Multifamily Rental Housing with Solar+Storage June 15, 2016 Seth Mullendore Project Manager Clean Energy Group
Economic Analysis • 9 multifamily affordable housing properties • Utility interval data • Current utility rates: PG&E, SCE, SDG&E • Real-world cost data
Key Findings • Adding battery storage to a solar installation can eliminate demand charges for building electricity loads, resulting in a net electricity bill of essentially zero. • Battery storage can almost double the building electricity bill savings achieved over the savings realized through solar alone. • Battery storage can achieve incremental utility bill savings similar to solar for about a third of the cost of the solar system for owners of affordable housing properties. • Solar+storage projects result in a significantly shorter payback period than stand-alone solar projects.
Analysis: SCE1 4
Analysis: SCE1 5
Analysis: SCE1 Solar Original Building Load Building Load After Solar 6
Analysis: SCE1 Solar Original Building Demand Building Demand After Solar 7
Analysis: SCE1 Solar 8
Storage Demand Management 9
Storage Peak Shaving Peak reduced from 100 kW to 65kW = 35 kW reducti ction on @ $10/kW = $4,200 200 annual l saving ings @ $20/kW = $8,40 400 0 annual saving ngs 10
Analysis: SCE1 Solar+Storage Adding storage allows building to switch to new utility rate tariff with no demand charges 11
Analysis: SCE1 Solar+Storage 12
Results: Bill Impact 13
Results: Cost/Savings 14
Results: Cost/Savings 15
Tenant Benefits • Greater share of solar generation being allocated to offset tenant electricity usage • Enable more participation by properties with limited suitable space for solar panels • Shared savings model where tenants are allocated a portion of demand charge savings • Applying some of the expected savings to cover the additional cost of making a building more power resilient during power outages • Preserve value of solar from changes to utility rate design and net metering policies 16
Tenant Benefits 17
Contact Information Seth Mullendore Project Manager Clean Energy Group Email: seth@cleanegroup.org Phone: (802) 223-2554 18
AB 693: Aligning Affordable Solar Roofs with California’s Energy Policies Reducing Electric Bills in CA Multifamily Affordable Housing with Solar+Storage June 15, 2016 Sachu Constantine, Director of Policy
Our Mission: Accelerate the transition to a sustainable world powered by clean energy
Areas of Expertise Building Clean Distributed Performance Transportation Generation Energy Energy Renewable Efficiency Storage Energy
Starting Points for CA Energy Policy • Reducing GHG and other pollutant emissions is an environmental priority • Reducing dependence on price-volatile, finite fossil fuel supplies is an economic and political priority • Creating sustainable markets and job growth in the clean energy sector is an economic priority • Ensuring equitable access to sustainable energy is also a moral and ethical priority • Integrating renewable resources while maintaining reliability is an operational necessity • Enhancing Resiliency is a critical need
AB 693 Regulatory and Policy Context • CPUC seeks Grid Modernization, GHG Reductions, and Consumer Empowerment – Distribution Resources Plans (DRP) – Integrated Demand Side Management (IDSM) – Marketing, Education and Outreach (Energy Upgrade California- EUC) • CEC is focused on Energy Performance and Transparency – Title 24 Part 6 updates, “Zero Net Energy” buildings – Benchmarking and Disclosure
AB 693 Regulatory and Policy Context • SB 350: Golden State Standards, 2015 – Market Transformation and a 50% RPS • AB 32: Global Warming Solutions Act, 2006 – Cap and Trade; Sets “cap” through 2020 (Needs an update!) • AB 327: Rate Reform, 2013 – NEM Successor Tariff • AB 2514: Energy Storage, 2010
Smart Grid
Three approaches to estimating grid value Equalize benefits to consumers and the system Align incentives with beneficial performance Market sets value through competition
New vision of consumer choice • Empower people and communities, particularly low income • Offer a diverse set of benefits • Offer choices that are good for society/grid • Offer optimal solutions for households, not homework
Relation to AB 327 (Perea) • AB 693 expressly authorizes the CPUC to fit this program within the AB 327 requirement that IOUs provide specific alternatives for residents in DACs. – “(b) (1) Adoption and implementation of the Multifamily Affordable Housing Solar Roofs Program may count toward the satisfaction of the commission’s obligation to ensure that specific alternatives designed for growth among residential customers in disadvantaged communities are offered as part of the standard contract or tariff authorized pursuant to paragraph (1) of subdivision (b) of Section 2827.1.” • IOUs are allowed to go above and beyond, though.
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