HomeMy WebLinkAboutAgenda Report - August 17, 2005 K-01AGENDA ITEM Y"I
CITY OF Low
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt resolution au#xwk kng the City Manager to amend the existing Lodi
Solar Rootlops Pilot Project (EUD)
MEETING DATE: August 17, 2005
PREPAINED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to amend the
existing Lodi Solar Rooftops Pilot Project.
BACKGROUND INFORMATION: In April of this year, the City Council approved the Lodi Solar
Rooftops Pilot Project. The current program provides rebates or
grants of up to $5,100 to Lodi electric utility customers who install a
photovoltaic (solar) system on their rooftop or property. The existing rebate formula or criteria is as
follows:
➢ $1,700 per MN of installed photovoltaictsolar panels and system, with a maximum 3kW system
eligible for rebate ($1,700')e 3kW = $5,100 maximum rebate).
Electric Utility staff is proposing to increase the rebate amount to $3,400 per kW of installed solar, with a
maximum rebate amount allowable of $6,800 ($3,400')e 2kW = $6,800).
With essentially 3.5 months of the existing program "under our belts,' it has been determined that the
current rebate amount of $1,700 is not incentive enough for customers to pursue installing a solar system
at their property. This conclusion has been reached following numerous conversations with Lodi electric
utility customers (those customers who are seriously considering solar as an option at their home or
business), with fellow electric service providers throughout northern California that have similar rebate
programs (such as the City of Redding, City of Palo Alto, Sacramento Municipal Utility District, and
others), and with solar installation professionals from around the Lodi, Modesto and Sacramento area.
After careful consideration and discussion, Electric Utility staff is now respectfully requesting, and
recommending, that the current Lodi Solar Rooftops Pilot Project be amended to increase the rebate
amount per kW of installed solar from $1,700 to $3,400 per kW. Also, by way of this Council action, the
total amount of the installed photovoltaic system will decrease from 3kW to 2kW (we have found over the
past few months of fine-tuning this program, that a majority of the homes in Lodi have appropriate roof
space to accommodate a 2k N- or less- photovoltaic system; hence the proposed "cap" of 2kW).
FISCAL IMPACT: The budget for this pilot project, approved by the Lodi City Council in April, is
$51,000. As of this time, no rebates for solar projects have been awarded to Lodi
customers. If customers do pursue the installation of a photovoltaic project at their
APPROVED:
Blair Ki , City Manager
Adopt reaWufian auMod*V the City Manager to artMZnd the exhOM Lodi Solar Rooftops Pilot Project (EUD)
August 17, 2006
Page 2 of 2
home, Md they install the maximum 2WV system; the pilot project could accommodate 7.5 photovoltaic
projects. The pilot project is funded through the City of Lodi Public Benefits Program, under the category
of Renewable Energy Resources and Technologies. The total fiscal impact (revenue loss) to the City of
Lodi as a result of these potential instated solar projects will be assessed once the projects are installed
and fully operational for a twelve-month period,
FUNDING AVAILABLE: As approved in the 2005-2006 fiscal year budget —164608 (Public Benefits
gram; Category: Ren le Energy Resource & Technologies)
es R. Krueger, Fin6n6e Director
A // ddt--
Alan N. Vallow
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Services and Programs
ANVIRLAst
C: City Attorney
RESOLUTION NO. 2005-172
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO AMEND THE
EXISTING LODI SOLAR ROOFTOPS PILOT PROJECT
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes
the City Manager to amend the Lodi Solar Rooftops Pilot Project to increase the rebate amount
per kW of installed solar from $1,700 to $3,400 per kW; and
BE IT FURTHER RESOLVED that the City Council further approves decreasing the
total amount of the installed photovoltaic system from 3kW to 2kW.
Dated: August 17, 2005
I hereby certify that Resolution No. 2005-172 was passed and adopted by the Lodi City
Council in a regular meeting held August 17, 2005, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Mounce, and
Mayor Beckman
NOES: COUNCIL MEMBERS — Johnson
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLA STON
City Clerk
2005-172