Low and Moderate-Income Solar Part 3: Finance Options for - - PowerPoint PPT Presentation

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Low and Moderate-Income Solar Part 3: Finance Options for - - PowerPoint PPT Presentation

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Principles and Policies for Low and Moderate-Income Solar Part 3: Finance Options for Low-Income Solar Bentham Paulos, PaulosAnalysis October 6, 2017 This content is provided to assist teams participating in the Solar in Your Community

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Bentham Paulos, PaulosAnalysis October 6, 2017

Part 3: Finance Options for Low-Income Solar

This content is provided to assist teams participating in the Solar in Your Community Challenge, a prize program sponsored by the U.S. Department of Energy SunShot Initiative. This content is free for general public use.

Principles and Policies for Low and Moderate-Income Solar

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Learning Objectives

  • To understand the difficulties in financing LMI solar

projects.

  • To be familiar with some solutions that have been

implemented or proposed for financing low-income solar.

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Who

  • About 130m housing

units, 75m are above 2x the federal poverty level (FPL)

  • Slightly more rental

units under 2x FPL than homeowners

  • Many more under the

FPL

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Owner Renter 200 percent or more 150 to 199 percent 100 to 149 percent 50 to 99 percent Less than 50 percent

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What and where

  • 30m homes under 150% of federal

poverty level: by region,

  • wnership, urban/rural

29,790 2,908 6,264 5,836 7,959 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Total Mfrd & mobile homes Black alone Hispanic Elderly (+65)

Households Under 150% of FPL

Northeast 17% Midwest 21% South 41% West 21% Central city 36% Not central city 41% Outside MSA 23% Owner 44% Renter 56%

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Conundrums

  • Solar can save a low-income person money, but

they don’t have savings to invest. A solution is to finance it, but low-income people are considered a credit risk, so most vendors shy away.

  • Many low-income people don’t own their homes or

live in multi-family housing. But off-site policies and programs are rare.

  • Should policies seek leverage, or just give away

solar systems? Leverage reaches more customers, but give away increases savings and reduces risk.

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Big debate

  • Should low-income homeowners take on more

debt to go solar?

  • Risk: default could be catastrophic if the debt is secured

by the home (PACE, HELOC)

  • But unsecured debt (credit card) can be very expensive,

especially for customers with poor credit

  • 3rd party PPA vendors (no money down) avoid risky

customers

  • Should loan eligibility be based an ability to repay,

credit scores, or alternative measures?

  • Some states have policy to reduce risk and reduce

cost of borrowing for low-income households

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Solutions for low-income solar

  • Preserve the value: NEM, rate design
  • Lower the cost: rebates, bulk purchases, donations,

cut soft costs

  • De-risk the finance: low-interest loans, guarantees

for developers, on-bill finance

  • Community solar for renters: VNEM
  • Enabling policies for affordable housing: tax credits,

finance, HUD policies

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More information

  • Clean Energy States Alliance (CESA.org)
  • Bringing the Benefits of Solar to Low-

Income Customers

  • Directory of State Clean Energy Policies and

Programs for Low-Income Residents

  • Publicly Supported Solar Loan Programs
  • And more!
  • Database of State Incentives for

Renewable Energy (DSIREusa.org)

  • Solar Market Pathways

(http://solarmarketpathways.org/)

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Contact Information

Bentham Paulos Principal, PaulosAnalysis ben@paulosanalysis.com www.PaulosAnalysis.com

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Thank you for attending our webinar

Visit CESA’s Solar In Your Community Challenge webpage for more info and resources: www.cesa.org/projects/sustainable-solar/solar-in-your-community-challenge-webinar-series Find us online: www.cesa.org facebook.com/cleanenergystates @CESA_news on Twitter

Questions? Contact: Diana Chace Program Associate, CESA diana@cleanegroup.org

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This webinar series is divided into two four-part webinars.

About This Webinar Series

Webinar recordings and registration forms are available on CESA’s website at: www.cesa.org/projects/sustainable-solar/solar-in-your-community-challenge-webinar-series

Principles and Policies for Low and Moderate Income Solar, Part 1 Friday, October 6, 2017

  • 1. Opportunities and Challenges
  • 2. Case Studies
  • 3. Financing Options
  • 4. Direct Incentives

Principles and Policies for Low and Moderate-Income Solar, Part 2 Friday, November 17, 2017

  • 1. Presenting solar information to LMI

consumers

  • 2. Engaging LMI communities
  • 3. Solar+storage for LMI communities
  • 4. Community solar for LMI customers
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Principles and Policies for Low and Moderate-Income Solar, Part 2

Friday, November 17, 12-2pm ET Topics to be covered:

  • Presenting solar information to LMI consumers
  • Engaging LMI communities
  • Solar+storage for LMI communities
  • Community solar for LMI customers

Sign up at: http://bit.ly/CESA-Webinar-11-17

Virtual Office Hours

The instructors will be available for one-on-one consultations with Challenge participants after the webinars, through virtual office hours. To schedule a consultation, contact Diana Chace at diana@cleanegroup.org