Multifamily Affordable Housing with Solar+Storage June 15, 2016 - - PowerPoint PPT Presentation

Reducing Electric Bills in California Multifamily Affordable Housing with Solar+Storage

June 15, 2016

Housekeeping

Who We Are

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www.cleanegroup.org www.resilient-power.org

Resilient Power Project

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• 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

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

California Housing Partnership Wayne Waite, Policy Director wwaite@chpc.net

Opportunities to Bridge California’s Green Divide Through Integrated Energy Solutions

California Housing Partnership | 2

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 | 3

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 | 4

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 | 5

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
• f 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 | 6

TOU Moving to Later Peak Periods

“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

• 9 multifamily

affordable housing properties

• Utility interval data
• Current utility rates:

PG&E, SCE, SDG&E

• Real-world cost data

Economic Analysis

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.

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Analysis: SCE1

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Analysis: SCE1

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Analysis: SCE1 Solar

Original Building Load Building Load After Solar

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Analysis: SCE1 Solar

Original Building Demand Building Demand After Solar

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Analysis: SCE1 Solar

Storage Demand Management

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Storage Peak Shaving

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Peak reduced from 100 kW to 65kW = 35 kW reducti ction

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@ $10/kW = $4,200 200 annual l saving ings @ $20/kW = $8,40 400 0 annual saving ngs

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Analysis: SCE1 Solar+Storage

Adding storage allows building to switch to new utility rate tariff with no demand charges

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Analysis: SCE1 Solar+Storage

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Results: Bill Impact

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Results: Cost/Savings

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Results: Cost/Savings

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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
• f 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

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Tenant Benefits

Seth Mullendore Project Manager Clean Energy Group Email: seth@cleanegroup.org Phone: (802) 223-2554

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Contact Information

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 Performance Clean Transportation Distributed Generation Energy Efficiency Energy Storage Renewable 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

• ffered 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.

What is “Zero Net Energy”?

California Energy Commission: A Zero-Net-Energy Code Building is one where the net amount of energy produced by on-site renewable energy resources is equal to the value of the energy consumed annually by the building, at the level of a single “project” seeking development entitlements and building code permits, measured using the California Energy Commission’s Time Dependent Valuation metric. Department of Energy: A Zero Energy Building is an energy- efficient building, where on a source energy basis, the actual annual delivered energy is less than or equal to the

• n-site renewable exported energy. (September 2015)

California’s ZNE Goals

• All new residential construction will be ZNE by 2020
• All new and 50 percent of existing state-owned

public buildings will be ZNE by 2025

• All new and 50 percent of existing commercial

buildings will be ZNE by 2030

The Need for Energy Storage Resources

“Californians want clean, renewable energy, and energy storage is an important part of that. [AB 2514] will help reduce global warming emissions, improve air quality, and will be a major step towards energy independence.”

• California Governor Jerry Brown
• Sept. 29, 2010

Energy Storage Mandate: Assembly Bill 2514

Storage procurement policy should be guided by 3 purposes:

• 1. Reduction of greenhouse gas emissions
• 2. Integration of renewable energy
• 3. Optimization of the grid

AES is most valuable at the grid “edge”

Source: Moving Energy Storage From Concept to Reality: Southern California Edison’s Approach to Evaluating Energy Storage

Influx of Energy Storage Projects in SGIP

Source: Self Generation Incentive Program Quarterly Statewide Report Last Updated: December 31, 2014

Number of applications

100 200 300 400 500 600 700 800 900 1000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Program Year

Other Advanced Energy Storage Fuel Cell Electric Microturbine Photovoltaic Internal Combustion Fuel Cell CHP

CPUC Actions to Date

• AB 693 implementation is part of NEM proceeding

(R.14-07-002)

• All questions related to AB 693 and the AB 327

alternatives were pushed to Phase 2 of the proceeding, which is just getting started.

• Budget and accounting treatment issues are still TBD.
• PDs for AB 327 and AB 693 implementation issues

expected in 3rd Quarter 2016.

We work nationally in the clean energy industry and are always open to exploring partnership opportunities.

Thank You

Sachu Constantine Director of Policy CSE sachu.constantine@energycenter.org

Thank you for attending our webinar

Seth Mullendore Project Manager Clean Energy Group seth@cleanegroup.org Find us online: www.resilient-power.org www.cleanegroup.org www.facebook.com/clean.energy.group @cleanenergygrp on Twitter @Resilient_Power on Twitter