Actual Solar Blog

MAYOR ANTONIO R. VILLARAIGOSA
City of Los Angeles

MEDIA RELEASE
March 15, 2010

CONTACT:
Sarah Hamilton
(213) 978-0741

MAYOR VILLARAIGOSA ANNOUNCES A CARBON REDUCTION SURCHARGE PROPOSAL THAT WILL INCENTIVIZE USE OF ALTERNATIVE ENERGY AND REDUCE LOS ANGELES’ DEPENDENCE ON FOSSIL FUELS
 
The Carbon Reduction Surcharge will be deposited into a Renewable Energy and Efficiency Trust Fund that is expected to create 18,000 jobs over the next ten years and the foundation for a local green economy

LOS ANGELES  – Mayor Villaraigosa announced today a proposal for a Carbon Reduction Surcharge as part of the Energy Cost Adjustment Factor (ECAF) rate action undertaken by the Board of Water and Power Commissioners this week. This Surcharge will change the way Los Angeles achieves its renewable energy goals while spurring job creation in the City.

“For Los Angeles to be the cleanest, greenest city, we need participation from every Angeleno. This carbon reduction surcharge empowers every person in this city to play a role in building our green future and placing Los Angeles at the forefront of the green revolution,” Mayor Villaraigosa said. “By investing in renewables and energy efficiency, we are building the foundation for an emerging industry that will attract good paying, green collar jobs to Los Angeles.”

The carbon reduction surcharge serves as both a financial incentive and an investment tool. The increase will incentivize stakeholders to use alternative energy, and therefore reduce Los Angeles’ dependence on fossil fuels.  However, the carbon surcharge will not drastically affect the average rate-payer; their average monthly bill will increase by less than $2.50.

The funds from the surcharge will be also be deposited into a Renewable Energy and Efficiency Trust Fund that is expected to generate 18,000 jobs over the next ten years and help lay the foundation for a local green economy. The Trust Fund will specifically invest in two types of programs: energy efficiency and a solar feed-in tariff.

The energy efficiency program will train and deploy Angelenos to conduct efficiency retrofits throughout the City. Working in conjunction with the LA Community College District, the Community Development Department and the Joint Training Institute, the LADWP will recruit entry-level workers, train and deploy them in teams to conduct energy audits and energy efficiency retrofits. These energy efficiency retrofits can save businesses and home-owners money on things like lighting, air-conditioning, and refrigeration. The program can start as early as winter of 2010.

The solar feed-in tariff (FiT) will allow the owner of an in-basin solar facility to sell electricity directly to the LADWP that they will feed directly into the LADWP’s electric grid. The LADWP will pay for the energy through a 20 year power-purchase agreement. The FiT will create jobs in both the public and private sector in manufacturing solar equipment, installation and maintenance, program administration and upgrading utility grids while also reducing electricity use during peak hours, reducing transmission congestion and accelerating deployment of renewable energy resources.

“After carefully studying this policy for many months, the Los Angeles Business Council strongly supports an ambitious Feed-in Tariff (FiT) program in our region,” said Los Angeles Business Council President Mary Leslie. “A well-designed FiT program would unleash a major source of clean, locally generated energy to meet Los Angeles’ renewable goals, providing incentives and cost-savings for businesses, public institutions and residences to produce solar energy and sell it back to our utility.”

To ensure that the Carbon Reduction Surcharge is transparent for ratepayers and stakeholders, a neutral rate-payer advocate will be appointed and placed in the Office of the Controller to oversee it. The Carbon Reduction Surcharge will appear as an itemized charge on the customer’s bill.

Solar power for your home is an increasingly attractive alternative to traditional forms of energy, be they grid electricity or burning fossil fuels in the home. There are a number of reasons for this. There are the economic realities of energy production now and in the future. There is the ethical issue of using a non-renewable energy source and a moral issue with regards to the damage that fossil fuels do to the environment. This article will cover some of these issues and cover how solar power for the home addresses some of these issues.

Grid electricity and the use of fossil fuels costs money and this will only go up as the resources that power grid electricity get harder to find. In California, it is estimated that it is cheaper to make solar electricity than it is to use the grid variety. This is hitting people in their collective wallets and purses and causing a search for alternatives. Again in California, there are many incentives to install solar panel into homes. There are even incentives for building companies to pre-install solar panels in homes.

This seems to make a lot of sense. The major benefit of solar power, after initial cost and installation, is that the power that is created is free provided the Sun keeps on shining. The cost to buy and install solar panels is now not so expensive and the incentives and rebates make it more attractive. It also seems that over time the cost of solar power can only go down. The technology will become more efficient and the technology to build solar panels will become cheaper. Contrast this with the cost of finding and extracting fossil fuels. This cost will only go up over time.

Given the finite nature of fossil fuels, solar power and other alternative methods of creating power seem to be far more accepted than the other alternative – nuclear power. The average person in the street is generally uncertain, if not, opposed to nuclear power, given the numerous nuclear accidents that have occurred. Having said this, governments seem to prefer nuclear power because it is more reliable on a large scale than solar power or wind power. However, this is not the case for the individual home. It seems that solar panels on the roofs of suburban homes will soon be a common place site rather than an unusual one.

You can save money with Solar Power Tax Rebates And Residential Solar Power Grants.

In January 2006, the California Public Utilities Commission (CPUC) adopted a program — the California Solar Initiative (CSI) — to provide more than $3 billion in incentives for solar-energy projects with the objective of providing 3,000 megawatts (MW) of solar capacity by 2016. The CPUC manages the solar program for non-residential projects and projects on existing homes ($2+ billion), while the CEC oversees the New Solar Homes Partnership, targeting the residential new construction market (~$400 million). Together, these two programs comprise the effort to expand the presence of photovoltaics (PV) throughout the state, Go Solar California.  
 
Originally limited to customers of the state’s investor-owned utilities, the CSI was expanded in August 2006, as a result of Senate Bill 1, to encompass municipal utility territories as well. Municipal utilities are required to offer incentives beginning in 2008 (nearly $800 million); many already offer PV rebates.  
 
CSI Incentives for Non-residential Buildings and Existing Homes:  
The CSI includes a transition to performance-based and expected performance-based incentives (as opposed to capacity-based buydowns), with the aim of promoting effective system design and installation. CSI incentive levels will automatically be reduced over the duration of the program in 10 steps based on the aggregate capacity of solar installed. (Click here for current incentive levels for each utility.) In this way, incentive reductions are linked to levels of solar demand rather than an arbitrary timetable.  
 
Expected Performance-Based Buydowns for systems under 30 kW began in 2007 at $2.50/W AC for residential and commercial systems (adjusted based on expected performance) and $3.25/W AC for government entities and nonprofits (adjusted based on expected performance). The incentive levels decline as the aggregate capacity of PV installations increases. Incentives will be awarded as a one-time, up-front payment based on expected performance, which is calculated using equipment ratings and installation factors such as geographic location, tilt, orientation and shading. Click here for current incentive levels for each utility. Systems under 30 kW also have the option of opting for a performance-based incentive rather than the incentive based on expected performance.  
 
Performance-Based Incentives (PBI) for systems 30 kW and larger began in 2007 at $0.39/kWh for the first five years for taxable entities, and $$0.50/kWh for the first five years for government entities and nonprofits. The incentive levels decline as the aggregate capacity of PV installations increases. PBI will be paid monthly based on the actual amount of energy produced for a period of five years. Residential and small commercial projects under the 30 kW threshold can also choose to opt in to the PBI rather than the upfront Expected Performance-Based Buydown approach. However, all installations of 30 kW or larger must take the PBI. Click here for current incentive levels for each utility  
 
The program is managed by the Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and the California Center for Sustainable Energy.  
 
Low-Income Programs  
Ten percent of the CSI Program budget ($216 million) has been allocated to two low-income solar incentive programs. As of March 2009, the single family low income program is still being developed; but SCE, PG&E and CCSE are accepting applications for Track 1 of the multi-family affordable solar housing (MASH) program. Rebates are available through Track 1 in the amount of $3.30/W for PV systems offsetting common area loads, and $4.00/W for systems offsetting tenant loads. As required by the CPUC, the utilities are developing virtual net energy metering (VNEM) tariffs which will allow MASH participants to allocate the kWh credits from a single solar system across several electric accounts at the same building complex.  
 
Incentives for Other Solar Electric Generating Technologies  
The CSI Handbook released in January 2008 clarified the eligibility of other solar electric generating technologies which either produce electricity or displace electricity. Incentives for other solar electric generating technologies are available for CSI incentives effective October 1, 2008. The CPUC specifically recognizes electric generating solar thermal as including dish stirling, solar trough, and concentrating solar technologies, while technologies that displace electricity include solar forced air heating, and solar cooling or air conditioning. The budget for electric displacing technologies is capped at $100.8 million. While solar water heaters can also displace electricity, the CPUC excludes them from the CSI because they plan to offer incentives for solar water heaters through a separate program based on the pilot program currently in operation within the service territory of San Diego Gas and Electric. Future CSI rulemaking activities will address energy-efficiency requirements, additional affordable housing incentives, and other program elements.  
 
 
Click here for a fact sheet on the California Solar Initiative.

The City of Santa Monica adopted an ordinance in August 2005 to encourage the construction of sustainable buildings. The ordinance, incorporated into the Municipal Code of Santa Monica, allows for priority plan check processing for building projects that are registered with the United States Green Building Council for certification under the Leadership in Energy and Environmental Design (LEED*) Green Building Rating System. The ordinance applies to all new buildings and major renovations which total an amount exceeding fifty percent of their replacement cost. All applicants wishing to receive priority plan check processing must submit proof of LEED registration and a checklist indicating all of the credits they plan to pursue before they can receive expedited permitting. Applicants must also clearly specify the materials, systems and strategies they will use to achieve the credits in the plans submitted to the City for plan check approval.  
 
*The USGBC LEED Rating System is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. Click here for more information on the national LEED program.  

More on this program

Random people around the States saying that they can’t go solar because of this or that, including expense and physical limitations. Some of these concerns are valid, but others not. So, here’s the Top 10 Myths about going solar.

Myth#1: Solar is too expensive.

This really depends on your State and utility. There are more and more solar friendly states that are cutting the price of solar in half if not more, plus the Federal 30% tax rate. Check out out the right hand side of this page and the DSIRE website for a summary of all the State programs now available. If you finance through your home equity or second mortgage, you also get the benefit of a tax write off on the interest. I also just recently wrote about how solar raises the value of your home.

Myth#2: Even if it’s less expensive, I don’t have the upfront money.

One of my most read group of posts is Cash Poor financing series. These talk about solar leasing, solar PPAs, 0 Down financing, and the growing number of cities financing solar through tax assessments. All of these require very little money down. Similarly, a second home mortgage or government energy efficiency mortgage also has little upfront costs.

Myth#3: Solar will get cheaper, so I might as well wait.

While it’s true that improvements in technology and competition is making solar panels cheaper, the current number of State and Federal incentives are also getting less generous as these prices come down. So if you’re already in a solar friendly State or municipality (see #1 above), then yes, wait until local incentives improve. On the other hand, if you are in a solar friendly State, the price is going to remain about the same for the next 10 years, so might as well start saving on your electric bills now. For more on why it might not make sense to wait, check out Dan’s recent post: The cost of the “let’s wait and see” solar buying reaction.

Myth#4: Making solar panels causes more pollution than the clean energy they produce.

Nope. A study by the US Department of Energy shows that, depending on your solar panels, the energy payback is 1 to 4 years. Solar panels usually last 25 years, so solar manufacturing is very green. That said, if you buy American made panels, it saves more carbon from the transport costs. Something to consider in choosing your panels.

Myth#5: Solar panels will cause more harm to the environment when they’re thrown away in 25 years.

Actually, most panel manufacturers will recycle the panels after you’re through in 25 years. If they don’t, don’t buy those panels. However, it’s hard to say whether people will actually recycle them because most panels are still being used today. So it’s up to you find out about the manufacturer’s panel recycling program. From what I understand, they will come to you and take them away at no charge.

Myth#6: Solar will look ugly on my roof.

They’re making solar panels these days to look just like regular roofs or shingles. Yeah, they’re a little more expensive, but they should still pay for themselves during their lifetime. Plus, remember that any solar panel, no matter what they look like, can raise the value of your home. In California, this improvement is exempt from a tax reassessment. Plus, many home buyers see solar as an attractive green statement, so your home might sell faster than another in your neighborhood.

Myth#7: Solar is hard to maintain.

If you buy a system that is connected to your utility, as most electric systems are, your solar panels are easy to maintain. They just need to be cleaned off with water to get off dust or debris or snow. And by the way, panels are pretty hardy, designed to withstand hail, sleet, and snow. On the other hand, if you buy a battery based system, then yes, this will require more attention–and expense. But grid connected systems without batteries are the most inexpensive and common for most home owners.

Myth#8: I live in a cloudy, cold, climate, so Solar doesn’t work.

Solar works just fine in cloudy or cold climates. See the above photo and also this video about a Seattle installation. The payback will be slower, that’s true, because you’ll be using more utility power than if you lived in a more sunny state. But remember that solar panels are guaranteed for 25 years, typically, but often keep going for 30 years and more. And by the way, solar panels like sun, but not heat, so cold climates can actually make the panels more efficient.

Myth#9: The utility grid can’t handle my solar panels.

First of all, residential solar systems carry relatively little energy, so it’s not going to affect most existing wires unless they already needed repairs. What is true and has been in the news lately is that these large solar and wind farms need some serious infrastructure to carry their green energy from the rural open spaces where they’re being built to the grid. Also, the U.S. grid remains one of the most reliable electric systems in the world. Overall, the grid is working fine 99% of the time. That’s why for most urban and suburban people, battery back up systems aren’t that cost effective. That being said, the grid is behind in terms of being “smart,” so we do need new technology to more efficiently allocate all of our energy, whether solar or coal.

Myth#10: I don’t know if my house is right for solar.

Fair enough. First, learn about doing a little self evaluating for solar. Then find an installer in your area to give you a free quote. An on the ground solar installer is usually your best source of real info. If you fill out our form, we’ll  set up a time to give you that free evaluation. Free is good, so what you can you lose?

If solar is not right for you, no worries. At least you know and you learned a lot about solar. Pass that knowledge on to someone on Face Book who may be right.

Schedule Free Solar Consultation With Actual Solar and Get an idea about the right system and cost for your home.

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