WAMU Program on Solar with guest Christophe Tulou (today at noon)

Today's Kojo Nnamdi show on WAMU will cover the topic of residential
solar in DC, Maryland and Virginia.

I would like to encourage everybody to listen and CALL IN with your
experience and comments. Show that the DC Solar community is strong
and active.

What: Kojo Nnamdi show on WAMU

When: Today, Tuesday, March 8; Noon - 2:00 PM

How: Listen 88.5 FM WAMU or listen online at http://www.wamu.org/

CALL: dial 1-800-433-8850 or e-mail kojo@wamu.org

Excellent Showing Today at DC Council Hearing

Today's DC Council hearing on increasing the solar carve out (Renewable Portfolio Standard) was strongly attended by citizens across the City, testifying in favor of the raising the solar RPS up to 4%.  I believe there were more than 40 people testifying in favor of the Bill.  Other than the utilities, who predictably do not want to lose business to citizen-produced solar power, there were not many negative comments about the bill.  The Public Service Commission did raise some concerns that did not seem completely on point.  However, the PSC noted in their comments that they believe that DC's recent decision to remove funding out of the Sustainable Energy Trust Fund may not have been legal.  DDOE Commissioner Tuluo testified in favor of the bill -- giving it his strong support.  There is also an article discussing the issues in City Paper.  See link here.  Were you there?  If so, please comment with your impression.

DDOE Proposes to Reduce Solar Rebate

For those following previous posts, DDOE was given authority by the DC Council to reduce the solar rebate amount.  Yesterday, DDOE published a proposal and is looking for comments on the proposal.  Any first reactions?  If so, feel free to post comments here.  The proposal will reduce the existing rebate in half for most projects.

The dynamics are: solar panel prices have dropped since the original formula was released, DC Council and DDOE have raided the trust fund that provides these rebates - lowering the funding available, and there is a great demand for solar in DC - so DC is looking to fund more projects at a lower rate.  If you are sitting on the sidelines thinking about solar, GET YOUR NAME ON THE WAITING LIST.  It is unclear whether rebates will be offered after the REIP sunsets in 2012.

Text of DDOE Proposal...

DISTRICT DEPARTMENT OF THE ENVIRONMENT

NOTICE OF PUBLIC MEETING

Request for Public Comment on
Revised Rebate Amounts for the Renewable Energy Incentive Program

The District Department of the Environment (“DDOE”) hereby requests public input and comment on a proposal to revise the financial incentive structure for the Renewable Energy Incentive Program (“REIP”) that provides financial incentives to District residents and businesses installing qualified solar photovoltaic systems. Section 3(d) of B18-932, the Sustainable Energy Utility Amendment Act of 2010 (projected effective date April 1, 2011, pending Congressional review) amended L17-250, the Clean and Affordable Energy Act of 2008, to allow the Mayor to issue guidelines that adjust the REIP rebate incentive amounts to reflect market conditions and the prevailing prices of renewable energy systems.

DDOE seeks public comment on the following proposed incentive guidelines for the REIP. Under the proposed guidance, the REIP would provide funding in the following amounts, effective October 1, 2011:

1)    The amount of $1.50 for each of the first 3,000 installed watts or watt-equivalents of capacity;

2)    The amount of $1.00 for each of the next 7,000 installed watts or watt-equivalents of capacity; and

3)    The amount of $0.50 for each of the next 10,000 installed watts or watt-equivalents of capacity.

No additional funding would be provided for installed capacity above 20,000 watts.

DDOE welcomes input and comments on these proposed revised incentive amounts, and will host a public meeting on March 16, 2011 from 2pm – 4pm at 1200 First Street, NE, 5^th Floor, Washington DC 20002 to discuss the proposal and hear comments. All persons and entities wishing to receive subsequent notices or additional information concerning the proposal indicated above should contact Olayinka Kolawole at (202) 671-4096 or

Olayinka.Kolawole@dc.gov.

Additional information and background documentation related to this proposal may be obtained from www.greenenergy.dc.gov or by contacting Mr. Kolawole.

 

Response to DC SUN questions regarding DC Solar Rebates

My previous post included the questions that DC SUN asked Department of Environment Director Christophe Tulou.  Below is the reply.   My next post will have the text of the DDOE proposal to reduce the solar rebate formula.

--------------------

Hi Mike --

Thanks for your messages/questions on the REIP.

The recent post on the DDOE website is a communication to those constituents who have already applied or are interested in applying to the Renewable Energy Incentive Program (REIP).   As stated in the update, due to the gap closing plan, the REIP is no longer accepting new prequalification applications until additional funding is available in FY 2012.  

With regard to the 51 applicants who were prequalified and are now experiencing a delay in approval, you will not find them on the waitlist published on the website.  We have communicated informed them directly of both their status and our interest in supporting their projects at the current tier levels.  We are working closely with the Mayor's Office and Council staff to determine whether and how funding can be made available to this group of 51 as expeditiously as possible. This is an involved process with many moving parts and decision-makers, so I am unable to specify a target date at this time. We certainly understand the applicants’ and your interest in a quick decision on that funding.  Whatever happens, we will provide an update on the DDOE website and let the affected folks know directly.

Pending Congressional review of the law (projected to be completed by April 1, 2011), DDOE will have the authority to establish guidelines for the REIP and will issue guidance on the new tier levels.  DDOE is currently performing its own analysis of new tier options, and will publish the proposed new levels in the DC Register by February 25, 2011.  Following posting in the DC Register, there will be a 30-day comment period and DDOE will host a public meeting on the proposed tiers on March 16, 2011 at 1200 First St. NE.   Information regarding the upcoming discussion will be made public on our website, and we look forward to your participation in this process.

Sincerely,

Christophe

Christophe A. G. Tulou
Director
District Department of the Environment

DC SUN Requests Answers from DDOE on Solar Rebate Program

Below is the text of a request sent today to the Director of the DC Department of the Environment.  Many of those on the Waiting List have signed contracts and made commitments to install solar projects based on assurances from DDOE that the DC Solar Rebate was forthcoming.  Many of those residents have now been informed that they may not receive the promised rebate.  When we receive answers to these questions, we will post them here. 

February 7, 2011

Dear Mr Tulou,

We wanted to follow-up on several items from our meeting with you on January 19th.  We would like to provide an update to our members, who are obviously very interested and concerned about the path forward on renewable energy and the solar rebates.  While this note does not include the full list of long-term issues and questions that we have, they get at the most immediate questions that our members are asking.  We would appreciate a response in the next few days.

1. On January 19th, you indicated the DDOE would request that the DC Council approve using the $700K in unspent 2010 funds that have reverted into "fund balance."  You indicated that the paperwork necessary to make this request was imminent.  Has DDOE or the Mayor's office completed this request to Council?  If not, can you provide us with your target date for sending this request forward?

2. On January 19th, you indicated that you agreed that the DDOE Green Energy Website needed to be updated.  We requested that the REIP document and the online application be updated to indicate that program changes are in the works.  We are additionally requesting that the Wait List shown on the DDOE website be classified according to which bin each person in the Waiting List is in.  We think that this is as follows: "Priority 1" - DDOE has made a funding commitment and is planning to use 2011 money to fund the project at original levels; "Priority 2" - DDOE has made a funding commitment based on original rebate levels, but restoration of 2010 fund balance is required before grants can be processed; and "Priority 3" - Wait List will be subject to new rebate formula, which will likely be applied beginning on Oct 1, 2011 when fiscal year 2012 monies become available.  Being transparent about where each person stands in regard to the list is very important to our members.  We understand that some of our members have received letters, but we think DDOE's website should also provide that information.  Will you make these changes to the website, and when?  We also recommend that DDOE put an appendix on the REIP Program Guide explaining what is happening during this period of uncertainty.

3. On January 19th, you indicated that you would be proposing a new formula for those applicants on the waiting list.  We provided you with an initial survey response about various rebate levels (survey is posted on solardc.blogspot.com).  We requested that you provide a proposal with a 30-day comment period, and then move quickly to issue the new rules so that applicants and installers have certainty in regard to the operation of the program until the 2012 funding is expended.  When do you plan to issue the draft formula?  Do you desire any input from us prior to proposing a new formula?

We will follow up with you in the future on many of our longer-term issues and concerns, but would appreciate your answers on these items.

Mike Barrette, Capitol Hill Energy Coop & DC Solar United Neighborhoods (DC SUN)
Anya Schoolman, Mt Pleasant Solar Coop & DC SUN

The Future of Solar in DC - Major Changes to Solar Program are Anticipated

The Future of Solar In DC – Update on Recent Developments that will Impact the Growth of Locally-Produced Renewable Energy and Jobs.

Wednesday January 21, 2011

The solar movement in the District of Columbia took a major step forward in 2010, in part, due to the work of neighborhood cooperatives.  Hundreds of installs were completed or are soon to be completed – in part because the economic incentives made solar installations a good  financial investment.  Because solar is not yet to the point that it is economically viable on its own, this recent spike in solar installations in DC owes to the combination of Federal Tax credits, Solar Renewable Energy Credits—which are modest carbon credits that accrue to solar producers, and DC’s Renewable Energy Incentive Program rebates.  Over this same time period we have seen the development of the District’s solar facilities has brought over $7 million of direct investment into the city in the last 24 months, hundreds of full time employees living and working within the District, and a job growth rate of around 50%.

DC Solar United Neighborhoods (DC SUN), a coalition of a dozen cooperatives from across the City, is very concerned that this momentum will be lost unless the Mayor, the Council, and the Department of the Environment (DOE) come together to fix several problems relating to carbon credits and DC rebates.  On Wednesday, January 19^th, DC SUN met with Director Tulou from the Department of the Environment, DDOE and Council staff to discuss the future of the program.  Here are the basics of what we learned: 

·         Citizens that are not already on the waiting list for a rebate will most likely not be able to participate in the current incentive program. 

·         While interest in solar energy is growing, the lack of funding will kill this successful program without quick action.  There are currently nearly 500 who are on the waiting list or in the grant application process.

·         What are the problems and possible solutions??? 

o   As a short-term measure, the Council needs to vote to restore to DDOE $800K in funds that were left unspent in 2010.  DOE agrees that this funding should be restored to the program. This money will go to people who have already gotten a funding commitment from DDOE.

o   As a medium-term measure, DDOE plans to re-adjust the amount of awards for those that have not been promised a certain amount.  Re-adjusting the award to half its level now will provide twice as many rebates in 2012, at which point, the program ends.  DC  SUN believes that cutting the award by more than half that will stifle future solar installations.

o   In the long-term, the Council and DOE are not showing leadership in developing a successor to the REIP, but instead believe that leadership should be left to the Sustainable Energy Utility (SEU).  Unfortunately, the SEU approval process is moving very slowly so there is currently no clear path forward for this program.  If SEU will provide the answers, let’s get it running now, otherwise, abandon the idea so we can move forward with existing agencies!

o   Funding from utility ratepayers continues to flow to the fund that is designed to provide rebates, so if DC does not plan to continue the program, that surcharge should be discontinued.  DC SUN favors keeping the surcharge, but only if it is put to use as intended.

·         With rebate funding waning, DC needs other options.  DC is behind the curve in regard to creating a market for solar energy.  Currently, power suppliers are required to buy only a small percent of their power from DC solar producers (less than .4%).  Councilmember Cheh has introduced legislation to raise this to 2.5% which is comparable to other states with solar programs such as Maryland This legislation is critical, because with the dwindling incentives, at least homeowners that install solar can able to sell their carbon credits at a rate that will make their solar investment prudent.

·         Until DC government figures out a path forward, hopefully with our help, it is difficult for our organizations to promote the renewable energy economy in the City. 

If you are on the waiting list, or are considering solar, here are some of the details....

After the budget cuts –the total that will be available for the solar rebate (REIP) program this year is $1.1 million.  We originally expected this year to have $2 million plus $800k roll over from the previous year.

Apparently, there are 132 people who have been told that they are “pre-qualified” for a rebate and have been instructed to proceed to submitting a full rebate. Of those, there are funds still left on hand to cover roughly 75 people. Those people will be informed within a week that that they are ok to move forward.  In addition, there are roughly 57 “pre-qualified” folks that will be told that their applications are on hold pending future funding.  There are two possibilities for funding this group. One, if DDOE is successful in getting the DC Council to re-program unspent $800K from last year. This may take a number of months and requires Council action.  The other option is that those people would have to wait until FY 12.  The basic DDOE commitment is that if you are one of the 132 on the pre-approved list you will get funded at the current rebate level.

In addition, there are more than 360 people on the waiting list. DDOE is planning to adjust the level of the rebate before moving through the waiting list.  They have not decided what level to set the rebate at.  The group urged them to make the decision quickly AND to provide a fair and transparent opportunity for homeowners, Coop members, installers, non-profits, low income housing advocates and other stakeholders to provide input into the decision.  There are many interesting and creative ideas how to move forward with the rebate program—but there is no consensus about the best way to do this.  All that being said, the solar program is only authorized through 2012. DDOE has no plans nor proposals for how they might be engaged once the program sunsets.  There was a broad discussion about whether the SEU would take a role, if the PACE program might play a role, and the potential to lobby and create a new grant program.

The Future of Solar….

In this vacuum of leadership and vision we expect the Solar Coops, the DC-based installers and solar industry and other key stakeholders to join together to design a program that propels DC to national headlines. We would like extensive solar, affordable solar and accessible solar.  There are many ways to get there. Here is our opportunity to take stock—both of the amazing jobs we have created, and the amazing support we have provided to homeowners and families who now have Pepco bills dropping by two thirds or more, not to mention we have started DC on a path toward greater energy independence, reliability, and lower carbon emissions.  How do we expand and broaden this progress? How do we get to the next level?

We will first need to pass a new bill to put the basic market on sound footing.  Luckily that work is well underway and the Council so far, is showing very strong support for the bill. The Distributed Generation Amendment Act of 2011 (B19-0010), if passed, will increase in the solar requirements of the District’s Renewable Energy Portfolio Standard (RPS) from 0.4% of energy delivered into the District in 2020 to 2.5% of energy delivered in 2020. It also clarifies the existing RPS preference for District-located solar facilities by requiring that these facilities be located on the distribution grid that serves the District of Columbia for the purposes of increased grid reliability through local generation.

Next we need a solar gardens bill this will allow folks who are renters, or live in apartment buildings to own solar panels somewhere else in DC and have the electricity their panels generate credited to their bill. 

When we fully evaluate the economic benefit of the solar program: including money we no longer export out of the city for energy payments, in terms of jobs, in terms of income, payroll and sales tax revenue to the city, and in terms of money saved to DC based consumers, and businesses—we won’t have to fight hard for the program in the future.  There are very few investments this small that the DC Council can make that produce real and measureable jobs and economic benefits.  Perhaps the solution is to move the solar program out of the Department of the Environment and into an office dedicated to job creation or economic development. We would also like to see the solar program evaluated against other programs designed to reduce carbon emissions.  Because the District Government investment in solar leverages so much Federal and private investment, as well as generates significant income to the city in tax revenue-- we believe that the solar program is likely to be the most  cost effective way for DC to achieve significant Co2 reductions. What does the future look like for DC and how do we get there?

It is time to get real and grow to the next level! All of your ideas and hard work are appreciated and needed.

Anya Schoolman, MT Pleasant Solar Coop

Michael Barrette, Capitol Hill Energy Coop

Follow developments or comment at our blog http://solardc.blogspot.com or join our DC SUN listserve (sign up link for Google listserve is at http://www.capitolhillenergycoop.org ).

Opinion Poll Regarding DC's Solar Rebate Program

DC has not only been slashing the amount of funding available to the solar rebate program, but they are also considering reductions, possibly significant, to the amount that individuals would receive if they were approved for a rebate.  DC Solar United Neighborhoods (DC SUN), which is a consortium of all cooperatives from across DC, conducted an online poll examining the decision point to go solar (in relationship to the size of rebate).   The findings from this survey are available at this LINK.

I think most people expect the rebate to go down, due to: a) the extremely high demand for rebates, and b) the recent raid by DC on the trust fund that was established for this program.  The question at this point is what will be the new formula employed by DC for future rebates.  The survey examines this issue, and also provides perspective on the program from many of our members.  If you have your own opinions on the program, please join our discussion by commenting here.  If you are not a member of DC SUN and would like to join our google listserve, you can find a link to it at www.capitolhillenergycoop.org.

- Mike