HomeMy WebLinkAboutAgenda Report - June 4, 2008 K-01AGENDA ITEM Pt
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AGENDA TITLE: Staff Report on 2008 Lodi Solar Rebate Pilot Project: Implementation of
Project, 'Customer Participation and Solar System Instaliation Permit Fees
(EUD)
MEETING DATE: June 4,2008
PREPARED BY Electric Utility Director
RECOMMENDEDACTION: None required.
BACKGROUND INFORMATION:
Proiectlmplementation Senate Bill (SB) 1, otherwise known as the 'California Solar Initiative'or CSI,
was enacted into state law in August 2006. The CSI requires ALL electric service providers in the state
to maintain a rebate programfor the installationof eligible* photovoltaic/solar systems on residential,
commercial and industrial customer sites. The official start date of the CSI was January 1, 2008, and the
CSI requires utilities to provide a rebate of no less than $2,80/watt in 2008 (the rebate level then drops by
7% each year thereafter).
Lodi's program budget per year, as established by the legislation, is $600,000. This figure is based upon
total energy sales during the fiscal year 2005-2006, utilizing the formula as provided in the CSI (Lodi's
municipal utility percentage share of the CSI is 0.79%; the total rebate dollars for Lodi over 10 years is
approximately $6 million, while the total municipal utility share of the CSI for the 10 years is $784 million).
In order to distribute the available rebate dollars in a fair and equitable manner, the following was
adopted and implemented for 2008:
➢ distribute the rebate budget dollars by 2006 calendar vear utility megawatt hour sales by
customer class; thus for 2008, 25% of the $600,000 budget is allocated for residential rebates
(equaling $150,000) and 75% for all non-residential rebates (equaling $450,000);
➢ rebates are reserved on a first-come, first-served basis; a customer who has reserved funds has
up to 180 days to install the solar system; rebates are issued after installation and inspection;
should any particular customer class NOT utilize funding by November 1, 2008. then customers
from another rate class will have access to those rebate funds.
Customer Participation Response to the 2008 Lodi Solar Rebate Pilot Project has exceeded
expectations, and compared to other Northern California PowerAgency (NCPA) member utilities, the
participation rate has been exceptionally high. As of May 18, 2008 here in Lodi:
➢ ten (10) residential solar rebate applications received;
➢ five (5) residential solar rebates approved and issued;
APPROVED: f
ing, City Manager
Staff Report on 2008 Lodi Solar Rebate Pilot Project; Implementation of Project, Customer Participation and Solar
System Installation Permit Fees (EUD)
June 4,2008
Page 2 of 3
➢ total residential solar rebate funds reserved: $127,947.40 (funds still available: $22,052.60);
➢ total residential solar rebatefunds approved and issued: $83,568.40
➢ six (6) non-residential solar rebate applications received;
➢ zero (0) non-residential solar rebates approved and issued;
➢ total non-residential solar rebate funds resewed: $330,039 (funds still available: $119,961)
➢ NO non-residential solar rebate funds approved/issued
SolarSvstem Installation Permit Fees The City of Lodi Community Development Department charges a
permit fee of $460 for an installed residential solar system and a permit fee of $660 for a non-residential
solar system. Note: for informational purposes, Attachment ' Ais provided as a comparison of various
permitfees around northern California.
For residential solar project permits ($460), the fee is determined as follows:
➢ Plan check 1 hour minimum ($80)
➢ Pre -inspection: To verify adequacy of roof structure and electrical service ( according to the
approved plans and project Engineer's specifications/ calculations ($75)
➢ Rough inspection: inspect wiring and framing ($75)
➢ Final Inspectionbythe Building Department($75)
➢ Final Approval Administration, Re -Inspection. ($95)
➢ Electrical permit ($30)
➢ Sub -Panel (inverter) ea. ($15)
➢ Service panel ($15)
For non-residential solar project permits ($660), the fee is determined as follows:
➢ Plan check 2 hour minimum ($160)
➢ Pre -inspection: To verify adequacy of roof structure and electrical service (according to the
approved plans and project Engineer's specifications/calculations) ($75)
➢ Rough inspection (2): inspect wiring and framing ($150)
➢ Final Inspection by the Building Department( $75)
➢ Final Approval Administration, Re -Inspection. ($140)
➢ Electrical permit ($30)
➢ Sub -Panel (inverter)ea. ($15)
➢ Service panel ($15)
Per state requirement, the Electric Utility Department has prepared the first quarter (January 1— March
31, 2008) results of the Lodi Solar Rebate Pilot Project (all electric utilities in California must providefirst
quarter results to the California Energy Commission on June 1, 2008). Included in this brief report is the
customer participation figures, actual rebate funds provided, total photovoltaic (in kilowatts) units
installed, and other information regarding customer outreach and marketing.
In closing, the Electric Utility Departmentwill provide the City Council with another solar program update
in either December 2008 or January 2009.
FISCAL IMPACT
Not Applicable.
FUNDING: Not Applicable.
Staff Report on 2008 Lodi Solar Rebate Pilot Project: Implementatlonof Project, Customer Participation and Solar
System Installation Permit Fees (EUD)
June 4,2008
Page 2 of 3
h ' 4S
George F. Worrow
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service and Programs
GFMlrslllst
Attachments
cc: Rob Lechner. EUD
Dennis Canright, Comm. Dev. Dept.
Peter Pimejad. Comm. Dev. Dept.
Attachment `A'
This first section reflects a random sampling of NCPA-member utilities, and
whether the CITIES in which these utilities are located charge a solar
system installation permit fee:
City Fee Comments
Turlock
Yes
$800 average fee
Silicon Valley Power
Yes
1 % of dollar value of project
(average system cost is
$30,000; 1 % of that figure =
$300 permit fee
Roseville
Yes
1% of dollar value of
installed project (average
permit fee has equaled
approximately $300 for
residential
Plumas-Sierra
Yes
$350 permit fee (flat rate)
Redding
Yes
$40 flat rate plus $50/kW of
installed solar (average
permit has equaled
approximately $300 for
residential)
Alameda
Yes
$104 permit fee flat rate
Palo Alto
Yes
$320 permit fee, on
average, for residential;
$2,000 average permit fee
for non-residential
Healdsburg
Yes
$130 permit fee (flat rate)
Lompoc
Yes
$700 average permit fee for
residential; $3,500 average
permit fee for non-
residential permit fee
Gridley
Yes
$200 to $300 flat rate
Sacramento
No
(note: SMUD service
territory; not a member of
NCPA)
Lodi
Yes
$460 residential permit fee;
$660 non-residential permit
fee
1.
This section reflects a random sampling of NCPA-member utilities and how
much of their solar rebate funds have been expended (or Leserveo thus far
in calendar year 2008:
utility
Status of Rebate Funds
Palo Alto
35% of ten-year program is reserved
(approximately $4,550,000
Plumas-Sierra
10% of rebate funds paid out for 2008
Roseville
50% of solar rebate funds reserved
through June 30, 2008
Lompoc
28% of total rebate funds paid out for 2008
Biggs
no rebate funds reserved as of May 18,
2008
Alameda
$8,400 out of $420,000 total solar rebate
funds reserved
Lodi
85% of residential rebate funds reserved
for 2008; 73% of non-residential rebate
funds reserved for 2008
2.
Lodi Solar Rebate
Pilot Program (K-1)
Lodi City Council
June 4, 2008
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Overview
• Program is required under Senate Bill 1
(SB1)
• Lodi, in full compliance with SB1, launched
the Lodi Solar Rebate Program on 1/1/08
• SB1 requires that rebates for installed solar
systems begin at $2.80/watt;
• Decreases by 7% each year starting in
2009 (through the 2017 life of the program
2
FY09 Budget
• Total annual budget for solar
$600,000 (roughly $6 million
run of the program)
rebates
over the
IS
ten year
• 25% of the $600,000 is earmarked for
solar rebates; 75% for non-residential
rebates during the 2008 calendar year
residential
solar
• To fund the rebates, there is the `California Solar
Surcharge'— it appears on all monthly customer
utility bills (.00125 cents/kWh)
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Customer Participation
As of May 18, 2008:
• 10 residential solar rebate applications
received, totaling $127,947.40
• 5 residential solar rebates issued,
totaling $83,568.40
• 6non-residential solar rebate
applications received, totaling $330,039
• No non-residential solar rebates issued
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Marketing & Customer Outreach
• To market the program, which is a requirement
of SB1, Lodi Electric Utility has:
-Published 2 articles in the Lodi Utility News newsletter
- Run 6 ads in the Lodi News -Sentinel
- Issued 2 press advisories
- Held 2 Lodi Solar Fair community events
- Program information posted at
www.lodielectric.com
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Solar Permit Fees
• $460 flat fee for residential projects
• $660 flat fee for non-residential projects
Next Steps
• Conduct a 3rd Lodi Solar Fair this
summer (date TBD; will be advertised in
newspaper)
• Continue to track developments at the
state level (changes to CA Solar
Initiative could be coming)
• Report back to City Council with another
staff report in either December'08 or January `09
Program Information
• For more information, citizens are urged to
visit our website at: www.lodielectric.com
• Once there, click on the Lodi Solar Rebate
Program icon
• Or call us at 333-6815
Lodi Solar Rebate Pilot Program
• Questions?
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