la dwp program modifications and re-launch board briefing presentation

8/6/2019 LA DWP Program Modifications and Re-Launch Board Briefing Presentation

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SOLAR INCENTIVE PROGRAM:

Board BriefingProgram Modifications and Re-launch

August 2, 2011

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1

Solar PV Inc ent ive Prog ram

Inc ent ive Dol la rs

(All numbers are cumulative)


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Prog ram Suspension & Review

On April 8, 2011, LADWP suspended the program forat least 90 days, per Section 2.9 of SIP Guidelines.

Progress Report

Doubled funding levels to $66 Million for the next 3 years and financedas capital expenditure.

Reduced backlog of applications & reservations requests from 800 to 0.

Accelerated and reduced inspection backlog; streamlined internalprocess.

Energized 3.6 MW, representing 555 new customer solar systems;36 MW more are pending construction completion.

Issued 550+ rebate checks totaling $24 Million.


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Public Meeting Summary

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Four Public Presentations & workshops

July 14, 9 am to 12 pm & 2 pm to 5 pm.

July 15, 9 am to 12 pm & 2 pm to 5 pm.

Approximately 430 total participants in attendance,100 via phone.

Comments were received through Wednesday,July 20th.

Black & Veatch monitored the workshops andprovided a final summary report on feedback.


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Positive Feedback

PowerClerkGeneral excitement that implementation of PowerClerkwill be a positive change for the SIP and will make application easierand more transparent for applicants.

Increase Funding LevelsParticipants supported the increase inprogram funding and the use of bonds to finance the program

expenditures, providing program stability.

Government & School Systems Allowed 3 YearsParticipants

viewed this as a very positive change for the program.


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Major Topics of Feedback & LADWPs Response

Proposal Feedback Response

LADBS PermitRequired Prior toApplication.

Some support. Complaintsincluded project delays andadditional cost.

Provide permit within 60 days ofreservation confirmation with the abilityto apply for an extension.

6 Month ProgramDisqualificationfor RepeatDeficiencies.

Uncertainty over what deficientmeant. Also concern that the 6month disqualification is toolengthy.

Defined deficient as missing contract orenergy efficiency requirements, missingor bounced deposit check & > 10 hrs. ofunauthorized operation. Reduceddisqualification time to 3 months.

Incentive LevelModification

Many unsupportive, somesupportive of lower incentivesresulting in more MW and betterbudget control. Some requested

increasing level ifundersubscribed.

Plan to monitor program and modifyincentive levels if participation proves tobe too low.


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LADWP vs. St at e Com m erc ia l

Inc ent ive Leve ls

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

1 2 3 4 5 6 7 8 9 10

Step

IncentiveLevel

($/Watt)

ExistingIncentiveLevels ProposedIncentiveLevels StateIncentiveLevels


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LADWP vs. St at e Gover nm ent

Non-Prof i t /Inc ent ive Levels

Step

IncentiveLevel

($/Watt)

ExistingIncentiveLevels ProposedIncentiveLevels StateIncentiveLevels


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Major Topics of Feedback & LADWPs Response Cont.


Increase ProgramFunding throughBond Financing.

Strong support. Some questions onwhy we limit the budget at all.

Will increase incentivepayment budget to $60M/yrand provide program status onwebsite to show remainingfunding levels.

Annual reservationlimit of $40M.

Some concern over boom & bust ifsuspended again. Concern overknowing when program will besuspended. Concern over equitabledistribution of $40M.

Will provide running totals ofannual reservation requests.


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Major Topics of Feedback & LADWPs Response Cont.


All leases to be paid atcommercial level.

Some support, but some alsofelt proposal penalized leasesand with combined incentivereduction would result in a

large drop in leases.

Currently, residential leases maytake advantage of accelerateddepreciation which other residentialprojects cannot. This gives a

disadvantage to non-leases.Residential incentives are higherthan commercial for this reason.

Incentive ineligibility for

more than 10 hours ofoperation.

Mixed feedback regarding

proposal. Many felt losingincentive was too harsh apenalty.

Will eliminate incentive payment

disqualification penalty. Will countinverter operation over 10 hours asdeficient which will count towardscontractor suspension.


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Other Issues

Concern Response

Participants need more certainty formLADWP regarding solar inspectionturnaround times going forward.

Should the full solar inspectionbacklog exceed 2 weeks, LADWP willimmediately implement the

accelerated inspection procedure toenable installation of the solar netmeter within 2 weeks.

Partic ipants want more program

transparency for the entire process.

PowerClerk will provide process

transparency and the LADWP websitewill be updated frequently withprogram metrics.


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Response t o Com m issioners Quest ions

f rom J u ly 6 , 2011 Board Meet ing

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How does LADWPsresidential solar payback

compare to SCE and otherSCPPA uti li ties?

With the proposed incentive levels, LADWPs residential solarpayback is 14 15 years, compared to SCEs payback of 10

years. The reason for SCEs low payback is that their electricrates for high use customers are about double LADWPsrates. The payback for SCPPA utilities ranges from 13 15years.

What is LADWP doing toencourage the installationof solar on multi-family

housing?

The proposed Feed-in Tariff program will be the mostappropriate option for multi-family housing.

Is the Solar IncentiveProgram sufficiently

staffed to manage existingand anticipated applicationlevels?

Adequate staffing levels will be maintained through exempt orcivil service hires.


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Response t o Com m issioners

Quest ions Cont .

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How many jobs has theSolar Incentive Program

produced?

Based on the Sacramento Regional Research InstitutesStimulus Calculation Tool, the Solar Incentive Program has

supported the creation of 1,560 job-years in the City of LosAngeles.

How much solar energy is

being produced in the Cityof Los Angeles?

Approximately 34 MegaWattsof customer owned solar is

installed in Los Angeles, producing roughly 56,000MegaWatt-hours a year. 36 additional MegaWattsarepending construction completion.


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la dwp program modifications and re-launch board briefing presentation

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