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.

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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