Unlocking Solar for Low- and Moderate-income Residents: A Matrix of - - PowerPoint PPT Presentation

▶
unlocking solar for low and moderate income
SMART_READER_LITE
LIVE PREVIEW

Unlocking Solar for Low- and Moderate-income Residents: A Matrix of - - PowerPoint PPT Presentation

Jul 27, 2023 109 likes •362 views

Unlocking Solar for Low- and Moderate-income Residents: A Matrix of Financing Options by Resident and Housing Type Jeff Cook and Lori Bird 9/6/2017 Project Objective Objective o Develop a matrix of the top financing options for various

slide-1
SLIDE 1

Unlocking Solar for Low- and Moderate-income Residents: A Matrix of Financing Options by Resident and Housing Type

Jeff Cook and Lori Bird

9/6/2017

slide-2
SLIDE 2

2

  • Objective
  • Develop a matrix of the top financing
  • ptions for various housing types
  • Understand factors that impact

effectiveness of financing approaches

  • Focus is on 3 common housing types:
  • Single-family Housing
  • Multi-family Housing (2+ units)
  • Manufactured Housing

Project Objective

slide-3
SLIDE 3

3

  • Key factors that influence the effectiveness of

financing options for LMI customers:

  • Housing type
  • Renter vs homeowner
  • Federal housing subsidies (e.g., HUD)
  • We evaluated the applicability of 13 financing
  • ptions for LMI residents
  • Financing options vary for:
  • LMI residents
  • Building owners/developers who can provide

LMI solar access

Background

slide-4
SLIDE 4

4

  • Key barriers against LMI resident adoption of solar

including:

  • Upfront costs or high cost of participation
  • Homeownership
  • Unsuitable home conditions
  • Financing options can have key tradeoffs that may be

important to policymakers:

  • Cost to taxpayers
  • Upfront cost barrier
  • Deployment potential
  • LMI customer benefits

Barriers and Considerations for Financing Options

slide-5
SLIDE 5

5

Financing Options

slide-6
SLIDE 6

Top Financing Options by Housing Type

slide-7
SLIDE 7

7

Federally-supported Housing Considerations

  • Federal subsidies can

influence the financing

  • ptions available to LMI

residents

  • Subsidies can impact:

– Benefits to residents – Approvals needed

  • U.S. Department of

Housing and Urban Development (HUD)

  • The Low Income

Housing Tax Credit Housing (LIHTC)

0.0 1.0 2.0 3.0 4.0 5.0 6.0

Hud-assisted Units LIHTC-assisted Units Housing Units (in millions)

Federally-supported Housing by Type

slide-8
SLIDE 8

8

  • HUD Programs
  • Public Housing
  • Project-based Rental Assistance
  • Tenant-based Rental Assistance
  • HUD caps a resident’s rent and utilities to 30% of

income

  • Any monetary benefit from solar that goes directly

to a HUD-assisted resident factors into those payments as income

  • HUD must approve solar in public housing and

project-based systems Considerations for HUD-subsidized Housing

slide-9
SLIDE 9

9

Considerations for LIHTC Housing

  • LIHTC housing is NOT

regulated by HUD

– Implementing state agencies manage this program

  • HUD approval is not

required for solar

– Additional research may be needed to determine solar requirements on a state-by-state basis

LIHTC Housing Size Characteristics from 1995 – 2015

0% 5% 10% 15% 20% 25% 30% 35% 40%

0-10 Units 11-20 Units 21-50 Units 51-99 Units 100+ Units Percentage of All Reported Projects (1995 -2015) Number of Units

slide-10
SLIDE 10

Single-family Housing

slide-11
SLIDE 11

11

  • Key Challenges
  • Homeownership
  • Building condition
  • Owners
  • On-site: available
  • Off-site: available
  • Renters
  • On-site: limited
  • Off-site: available

Single Family Homes (Detached)

slide-12
SLIDE 12

12

Top Financing Options for Owner-occupied Homes

  • LIHEAP/WAP

– Colorado Rooftop Solar Program

  • Direct Cash Incentives

– California Single-family Affordable Solar Housing

  • On-bill Financing

– Ouachita Cooperative in Arkansas

  • Loans

– Massachusetts’ Solar Loan Program

  • Third-party Leasing/ESA

– PosiGen in Connecticut

slide-13
SLIDE 13

Multi-family Housing

slide-14
SLIDE 14

14

  • Key Challenges
  • Landlord approval requirements
  • Building Metering

– Mass metered – Individually metered

  • Landlord
  • On-site solar: available
  • Off-site solar: available
  • Resident
  • On-site solar: limited
  • Off-site solar: limited

Multi-family Housing

slide-15
SLIDE 15

15

Top Financing Options for Multi-family Housing Providers

  • Capital Refinancing

– Anecdotal evidence

  • Third-party Leasing/ESA

– Denver Housing Authority

  • LIHEAP/WAP
  • On-bill Financing
  • PACE

– California has launched a PACE pilot

slide-16
SLIDE 16

Manufactured Housing

slide-17
SLIDE 17

17

  • Key Challenges
  • Ownership structure

– Home AND lot

  • Roof suitability
  • Landlord
  • On-site solar: available
  • Off-site solar: limited
  • Resident
  • On-site solar: limited
  • Off-site solar: available

Manufactured Housing

slide-18
SLIDE 18

18

Top Financing Options for Manufactured Housing Providers

  • LIHEAP/WAP

– Eligibility uncertain for ground-mounted systems

  • Third-party Leasing/ESA
  • Direct Cash Incentives

– Vermont McKnight Lane Project

  • Tax Incentives

– Huntington Shorecliffs in California

  • PACE

– Huntington Shorecliffs in California

slide-19
SLIDE 19

Community Solar

slide-20
SLIDE 20

20

Community Solar Financing Options for Residents

  • On-bill Financing

– Green Valley Power Cooperative in Colorado

  • Loans

– Massachusetts Solar Loan Program

  • Direct Cash Incentives

– Rhode Island: $500 grant for LMI customer participation

  • Tax Incentives

– Alpine Bank in Colorado

  • LIHEAP/WAP
slide-21
SLIDE 21

21

  • Direct Cash Incentives
  • Colorado LMI community solar demonstration

projects

  • Production Incentives
  • Massachusetts SREC-II program
  • Tax Incentives
  • New Market Tax Credit
  • Crowdfunding
  • Net Metering

Community Solar Financing Options for Developers

slide-22
SLIDE 22

Summary Financing Matrix

slide-23
SLIDE 23

23

slide-24
SLIDE 24

Questions

For further information related to the content of this presentation contact: Jeff Cook and Lori Bird Strategic Energy Analysis Center National Renewable Energy Laboratory Jeff.cook@nrel.gov and lori.bird@nrel.gov