solar and energy efficiency: moving towards and integrated approach

Greening Your World…

Solar and Energy Efficiency: Moving Toward an Integrated Approach?

Andrew McAllisterCCSE - Director of Programs

September 29, 2009

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Finance & Incentives: Enabling Widespread Adoption

• Current adoption rates of clean energy projects will not come close to meeting CA’s 2020 greenhouse gas goals.• CPUC Target: 13 million residential retrofits statewide

by 2020

• Property owners are accustomed to paying utility bills in simple monthly increments.

• Financing levels the playing field, allows proactive individual decisions.

• Incentives help with cost-effectiveness• However, programs increasingly require energy

efficiency alongside solar.

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Property-Assessed Clean Energy (PACE) Financing Programs• CEC State Energy Program (SEP) will provide support to local

governments for PACE program development. SEP-funded PACE programs must focus first on efficiency:

• Building Assessment (HERS or other) identifies potential measures• Test-in / Test-out to verify performance improvement• Consumption reductions required for financing eligibility

• Or, prescriptive list of basic measures

• Financing for PV contingent on meeting EE requirements

• Contractors: What does this business model look like?

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CA Solar Initiative Energy Efficiency Requirements

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66

77

88

99

1010

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Solar and Energy Efficiency: Natural Partners• Integration can improve property owner cash

flow relative to PV-only• Improved risk profile of project portfolio• Should translate to lower cost of capital over time

• CCSE survey of solar customers in SDG&E territory • N = ~5000• 614 respondents • 85% of respondents have installed or plan to install

at least 1 EE upgrade

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Reasons Apply to Solar and EE….

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Marketplace Evolution needed• Programs moving towards integration – by fiat and common

sense• Solar installers generally not providing broad EE services• Nascent “building performance” ecosystem needs “stimulus!”• Customers need help with EE value proposition, and execution• Streamlined, robust financing programs key for broad adoption

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Messages to Local Gov’ts• Energy-related stimulus $$: 100M+ to SD region…. Can

leverage for long-term impact• Reserve some $$ for community-wide activities: revolving

funds, basic retrofit assistance, program planning, housing stock assessment….

• Workforce: Need to develop a critical mass of clean-energy professionals to scale up

• Cities benefit from regional coordination• Context: SANDAG and the Regional Energy Strategy• Collaborate, pool resources with other jurisdictions

• PACE financing is key component of long-term game plan

Greening Your World…

Thank You!