Neighborhood Groups Call on DC to Renew Solar Rebates and Quadruple Solar Installations

Rebates for residential solar installations in Washington DC have spurred job creation and have literally energized almost 1,000 homeowners across the City.  The highly successful four-year rebate program will end in 2012 – casting uncertainty over the prospects for solar energy in the District.  DC Solar United Neighborhoods (DC SUN - www.dcsun.org), a grassroots coalition of residents that promote solar energy in the District, are urging the City Council and Mayor to extend this effective program for four more years – allowing 4,000 new projects to be completed.  DC SUN believes that in four years, falling prices for solar panels will make the economics of solar so good, that rebates can be completely phased out.

To reach specific goals in four years, DC SUN is proposing rebate reductions, which will essentially double the number of installations supported each year until the program is phased out. In addition, DC SUN proposes that half of the solar rebates be dedicated specifically to go to low income homes.  DC SUN proposes that DC offer fixed rebates of - $4,000 per project in 2013, $3,000 in 2014, $2,000 in 2015, and $1,000 in 2016.  These rebates, in conjunction with available Federal tax credits and solar Renewable Energy Credits, will make solar an unbeatable investment that allows the City to shift to renewable, locally-produced energy.  The rebate program has created jobs in DC, and will create more jobs if renewed.  Atta Kiarash, Vice President of DC-based installer Solar Solution LLC, remarked that the rebate program has been essential to creating demand for solar projects -- indicating that it would be foolish for DC to discontinue a program with such broad support and a record of success.  He stated, "taking away this grant not only hurts DC homeowners, but also local businesses that provide services to residents."

While solar is still a good investment without DC rebates, our analysis shows that DC residents that are considering solar are looking for a 6-year payback period. Current solar prices offer about a 10-year payback period – and DC rebate program will tip the scales for many consumers (see www.dcsun.org “One Roof” solar price evaluation).  This investment will not require the City to raise new funding because the energy surcharge that exists on your bill is already being used to fund solar rebates.  Under DC SUN’s proposal, this existing funding stream would continue to be used to fund solar rebates.  

The existing program has created jobs in DC!  Atta Kiarash of DC-based installer Solar Solution, LLC has directly attributed the rebate program to job growth for his business, indicating that failure to renew the rebate program with such strong support base .  Atta Kiarash, Vice President of Solar Solution, LLC

DC SUN is urging the Mayor, Department of the Environment, and the Sustainable Energy Utility to implement this proposal plan as part of the Sustainable DC initiative.  DC SUN thinks the plan can be announced and implemented quickly with funding that is already coming into the City.  You can register your support for solar rebates as part of the Sustainable DC voting process.  As November 22nd, the continuation of solar rebates has received the second highest number of votes of all submitted ideas.

“One-Roof Solar Evaluation” Documents Dropping Solar Costs in DC

FOR IMMEDIATE RELEASE - 11/16/11

“One-Roof Solar Evaluation” Documents Dropping Solar Costs in DC

DC Solar United Neighborhoods (DC SUN), a consortium of cooperatives, has completed a cost comparison by inviting vendors to bid on the same job.  Four vendors participated in the bidding (Lighthouse Solar, SolarCity, Solar Solution and Astrum Solar), while several other vendors completed an online survey.  The DC SUN website documents the findings in more detail, provides bid information and provides an online evaluation tool for your solar project (click here for One Roof Evaluation information).

Key Findings  

• Now is the time to invest in a rooftop solar electric system in Washington, DC. Panel prices are a record-lows, installer competition is high, and Solar Renewable Energy Credits, along with a 30% federal income tax credit and the monthly savings in your electric bill all combine to allow you to do well while doing good.

• Return on investment can be far better than one can receive for most other investments. Compared to the current rates for savings accounts, certificates of deposits or stocks and bonds, investing is a rooftop solar electric system has great financial returns. The returns from solar electricity are tax-free in that money you don't have to spend on your electric bill is money you don't have to earn and pay taxes on.

• Even if you don't have cash upfront to purchase a photovoltaic system at this time, a leasing option can still reduce your monthly electricity bill. You'll pay PEPCO less and generate renewable energy on your own roof.

The Details

• Gross system cost (before any incentives) for purchasing a system averaged $25,061, ranging from $19,382 to $34,320.  Since 2009, the costs to install have dropped more than 20%.
• Net system cost (after tax and other incentives) for purchasing a system averaged $12,854, ranging from $9,922 to $16,784.   The reduced net costs factor in Federal tax credits and solar Renewable Energy Credits (sRECs) that vendors will help you leverage.
• For the lease options, the Initial System Cost averaged $3,639, ranging from $0 $7,278. Two of the lease options had annual payments, averaging $44/month, ranging from $516 to $816 per year.
• Simple Payback for purchase averaged 13 years, ranging from 12 to 15 years. For leasing, the average was ~11 years, excluding the $0 down option.
• Internal Rate of Return for purchase averaged 5.8%, ranging from 4.6% to 7.5%. For leasing, the average was 10.0%, excluding the $0 down option.
• Energy savings ranged from 29% to more than 100% - your vendor can help you with this calculation, which depends on system size, energy consumption patterns and weatherization.
• DC SUN suggests that weatherization be done prior to, or in conjunction with solar installations.  DC SUN also recommends that systems not be sized greater than 100% because current DC laws do not allow you to take advantage of “overproduction” that occurs over a year’s time frame.

Analysis

Solar is a great long-term investment and DC SUN believes now is the time to go solar!  DC SUN, in previous surveys and member polls, has determined that despite the favorable return on investment, that many homeowners are motivated by the need to re-coup their investment on a shorter time horizon than currently achievable – closer to 6-8 years.  Because the District of Columbia’s solar rebate program sunsets this year and has a full waiting list, explosive growth in residential solar will likely require a re-commitment to providing small rebates over the next 4 years to bring the payback down to the 6-8 year time horizon.  Within four years, the price of panels is projected to continue dropping – which will drive solar installations without additional rebates from the District.  If you want to urge DC to establish a new solar rebate program, click here and register your vote for new solar incentives.

The detailed results of each bid, and additional worksheets allowing consumers to calculate their own rate of return are now posted on www.dcsun.org.  DC SUN strongly suggests getting multiple bids before going forward.

DC SUN sets up fund for solar!

Well, in a way, we have grown tired of waiting for rebates that come and go, so we decided to set up our own program. Our target is to expand the solar market-- especially by funding high profile projects in organizations that are important to our communities. What do I mean?? Well-- churches, schools, non-profits, small local businesses. Many of these organizations can go solar now, but they don't know it. DC SUN can help.

What is it? DC SUN has now launched the NEW Community emPOWERment Fund. Many local installers will now provide a donation to DC SUN’s emPOWERment Fund if their customer is a member of DC SUN. Money in the fund goes to support solar projects for non-profits, churches, and other community organizations. So, when you talk to an installer, tell ‘em DC SUN or your local solar coop sent you!

· The six charter installers contributing to the Fund are:

• Kenergy Solar
• Lighthouse Solar
• Skyline Innovations
• SolarCity
• Solar Solutions
• Volt Energy

·

Click here to learn more

There are lots of ways to get engaged. We will start on-line fundraising for specific project. You can volunteer with DC Sun and get trained to be a solar ambassador to help worthy organizations go solar.. Or you can nominate you favorite local community organization to receive a grant toward a new solar system. Fill out our online form to nominate an organization YOU think should receive a Community emPOWERment Fund grant.

The market and prices are there to go solar now! It is just going to take a bit of effort to get the word out to ALL parts of the city. JOIN US!

--Anya