gosolarsf: economic & environmental impacts

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In 2008, the City and County of San Francisco adopted GoSolarSF, an incentive and workforce development program designed to help San Francisco become a leader in solar power, expand solar savings and job opportunities to underserved families, reduce the need for polluting fossil fuel power plants, and help achieve the City’s clean energy and climate goals. This report summarizes the market, economic and environmental benefits of solar energy systems installed or in the queue for the GoSolarSF program as of April 2014.

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Page 1: GoSolarSF: Economic & Environmental Impacts

Executive  Summary  In  2008,  the  City  and  County  of  San  Francisco  adopted  GoSolarSF,  an  incentive  and  workforce  development  program  designed  to  help  San  Francisco  become  a  leader  in  solar  power,  expand  solar  savings  and  job  opportunities  to  underserved  families,  reduce  the  need  for  polluting  fossil  fuel  power  plants,  and  help  achieve  the  City’s  clean  energy  and  climate  goals.  This  report  summarizes  the  market,  economic  and  environmental  benefits  of  solar  energy  systems  installed  or  in  the  queue  for  the  GoSolarSF  program  as  of  April  2014.    Solar  Market  Development:  

• More  than  3,070  solar  energy  systems  on  San  Francisco  homes,  businesses,  non-­‐profits  and  local  government  facilities  

• Nearly  10,160  kW  of  total  solar  capacity    • 37%  of  residential  capacity  (kW)  on  qualifying  low-­‐income  single-­‐family  and  multi-­‐family  

homes    Economic  Development:  

• Installations  driving  $65  million  in  investment  in  the  local  San  Francisco  economy  • Installations  supporting  more  than  400  local  jobs  and  $19.5-­‐$22.8  million  in  wages  that  can  

be  reinvested  in  the  local  economy    • Workforce  Development  program  providing  121  direct  solar  job  placements  for  San  

Francisco  residents  who  otherwise  face  barriers  to  employment    • Workers  of  color  representing  the  largest  populations  served  by  the  Workforce  

Development  program  with  40%  Black/African  American  and  22%  Latino/Hispanic  job  placements  

• 31  solar  companies  participating  in  the  local  Workforce  Development  program  • National  solar  leaders  have  chosen  employ  hundreds  of  local  workers  because  of  GoSolarSF  

and  the  City's  nationally-­‐recognized  culture  of  solar  policy  innovation    Environmental  Benefits:  

• Reducing  greenhouse  gas  emissions  by  more  than  172,631,800  pounds  over  the  lifetime  of  installed  systems,  helping  meet  the  City’s  climate  action  goals  

• Reducing  the  need  for  fossil-­‐based  peak  power  generation,  which  has  historically  disproportionately  impacted  the  health  of  low-­‐income  families  

 GoSolarSF  has  encouraged  significant  private  investment  in  San  Francisco’s  local  solar  market,  which  has  delivered  economic  and  environmental  benefits  to  the  greater  community.  The  landmark  solar  program  has  given  thousands  of  San  Francisco  energy  consumers  control  over  their  electricity  sources  and  utility  bills  by  making  solar  power  a  cost-­‐effective  option.  The  program’s  focus  on  empowering  low-­‐income  and  underserved  members  of  the  community  to  participate  in  and  benefit  from  the  city’s  growing  solar  economy  has  proven  particularly  successful.  GoSolarSF  has  helped  make  San  Francisco  a  national  leader  on  clean  energy,  green  jobs  and  climate  action.  

GoSolarSF:  Environmental  &  Economic  Impacts    

Page 2: GoSolarSF: Economic & Environmental Impacts

Introduction  Across  the  country  and  around  the  world,  the  race  is  on  to  build  local  solar  power  markets  -­‐  vibrant  new  hubs  of  job  creation,  energy  innovation  and  economic  opportunity.  In  2008,  the  Mayor,  the  Board  of  Supervisors  and  the  SFPUC  Commission  adopted  GoSolarSF,  a  solar  incentive  and  workforce  development  program  to  help  San  Francisco  become  a  leader  in  this  new  energy  economy.      The  program  was  designed  to  achieve  the  following  goals:  

• Encourage  the  installation  of  solar  power  systems  by  homeowners,  businesses  and  non-­‐profit  organizations  (including  local  government)  through  a  one-­‐time  incentive  payment  to  reduce  solar  project  costs    

• Support  solar  projects  for  low-­‐income  households  and  installations  in  San  Francisco’s  environmental  justice  zip  codes  94107  and  94124  

• Provide  quality  job  opportunities  to  San  Francisco  residents  who  face  barriers  to  such  employment  through  a  Workforce  Development  program  

• Deliver  additional  economic,  climate  and  public  health  benefits  by  making  San  Francisco  a  leader  in  our  nation’s  growing  solar  industry  

 GoSolarSF  is  administered  by  the  San  Francisco  Public  Utilities  Commission  (SFPUC)  Power  Enterprise  and  is  based  on  the  Solar  Energy  Incentive  Program  ordinance,  which  outlines  a  10-­‐year  program  with  the  objective  of  a  budget  of  $2  million  to  $5  million  annually.      This  report  quantifies  market,  economic  and  environment  impacts  of  the  GoSolarSF  from  its  inception  through  April  2014.      Solar  Market  Development:  Stable,  transparent  incentive  programs  can  help  lower  the  cost  of  going  solar  for  customers  and  build  a  strong  local  solar  marketplace  that  further  drives  down  costs.  GoSolarSF  provides  one-­‐time  incentive  payments  to  spur  solar  installations  on  San  Francisco  homes,  businesses  and  non-­‐profit  organizations  (including  local  government  facilities).      Since  2008,  the  GoSolarSF  program  has  provided  $19.4  million  in  market-­‐building  incentives.  In  that  time,  the  program  has  resulted  in  the  installation  of  more  than  2,761  solar  energy  systems  on  San  Francisco  homes,  businesses,  non-­‐profits  and  local  government  facilities,  with  an  additional  310  systems  in  the  queue  to  receive  GoSolarSF  incentives.  Those  3,701  total  systems  represent  nearly  10,160  kilowatts  (kW)  of  installed  capacity.  Annual  installations  have  varied  by  fiscal  year  as  program  funding  has  varied  with  market  demand  often  exceeding  available  incentives.    

Year   2008   2009   2010   2011   2012   2013  2014  (April)  

TOTAL  

Systems   362   710   362   475   348   580   234   3071  

 

GoSolarSF:  Number  of  Systems  Installed  or  In  Queue  

Page 3: GoSolarSF: Economic & Environmental Impacts

Low-­‐Income  Focus:  The  GoSolarSF  program  provides  additional  solar  incentives  for  low-­‐income  single-­‐  and  multi-­‐family  homes  and  in  the  city’s  economic  justice  zip  codes.  These  provisions  are  designed  to  ensure  that  utility  bill  savings  and  the  other  benefits  of  going  solar  are  accessible  to  disadvantaged  families  who  need  them  most.    Program  data  shows  that  GoSolarSF’s  has  proven  successful  in  making  solar  accessible  to  low-­‐income  San  Francisco  families.  Fully  37%  of  the  total  residential  capacity  installed  or  in  the  queue  for  the  program  to  date  has  been  on  qualifying  low-­‐income  properties.    

General  Residendal  63%  

Single-­‐Family  Low-­‐Income  16%  

Muld-­‐Family  Low-­‐Income  21%  

GoSolarSF:  Residential  Installed  Capacity  (kW)  

GoSolarSF  Benefits  Those  Who  Need  It  Most    ESPANOLA  JACKSON,  a  community  and  environmental  justice  advocate  for  more  than  50  years,  is  affectionately  referred  to  as  “The  Godmother  of  Hunters  Point.”    She  is  a  veteran  of  decades  of  on-­‐the-­‐ground  efforts  to  shut  down  polluting  power  plants  in  San  Francisco’s  southeast  neighborhoods  and  is  proud  to  be  one  of  the  first  homeowners  to  utilize  GoSolarSF’s  low-­‐income  incentive.      “Back  in  early  2009  I  read  in  the  paper  that  low-­‐income  San  Franciscans  were  not  utilizing  the  solar  incentive  that  is  available  to  those  of  modest  means,”  said  Jackson.    “I’m  retired  on  a  fixed  income  so  I  called  up  [environmental  justice  non-­‐profit]  Brightline  to  help  me  put  together  my  low-­‐income  application  to  go  solar.”  

   A  few  months  later,  Jackson  helped  kicked  off  a  solar  revolution  in  the  Bayview  Hunters  Point  community  with  the  help  of  local  solar  company  Luminalt  and  non-­‐profit  installer  GRID  Alternatives.          Jackson  has  paid  an  average  of  less  than  $10  a  month  for  her  electricity  ever  since  and  she  remains  one  of  GoSolarSF’s  strongest  supporters,  even  testifying  before  the  California  state  legislature  about  the  impact  that  solar  has  had  on  her  community.  

“We  made  a  community  celebration  out  of  it  on  Memorial  Day  weekend  with  a  barbecue  and  free  solar  training  for  15  local  young  people  thanks  to  Luminalt  and  GRID.    “It  was  all  over  the  news  and  within  a  month,  my  neighbors  and  people  all  across  Hunters  Point  were  applying  for  their  own  solar  power.”  

-­‐-­‐  Espanola  Jackson,  Solar  Customer  

Page 4: GoSolarSF: Economic & Environmental Impacts

Economic  Development:  Investment  in  distributed  solar  ensures  that  energy  dollars  stay  in  the  community  and  deliver  returns  throughout  the  local  economy.  GoSolarSF  was  intended  to  leverage  public  incentive  dollars  to  unlock  such  private  investment  the  community.    Solar  energy  systems  that  have  been  installed  or  are  in  the  queue  to  participate  in  the  GoSolarSF  program  will  drive  $65  million  in  total  public-­‐private  investment.  That  means,  on  average,  every  $1  of  public  funds  provided  by  the  City  has  resulted  in  a  $3.35  investment  in  the  local  San  Francisco  economy.      Job  Creation:  Solar  creates  more  jobs  per  energy  unit  than  any  other  electricity  resource.  The  majority  of  solar’s  tremendous  job  creation  opportunity  is  related  to  project  development  and  installation,  representing  employment  opportunities  that  are  inherently  local  to  the  communities  they  serve.  These  are  high-­‐quality  jobs  across  a  range  of  education  requirements  and  sectors.    

GoSolarSF  Drives  Local  Business  Growth    JEANINE  COTTER  is  the  co-­‐founder  and  CEO  of  San  Francisco-­‐based  solar  installer  Luminalt.  Founded  in  2004,  Luminalt  is  San  Francisco’s  only  certified  Women  Business  Enterprise  solar  installer.  The  company  has  installed  more  San  Francisco  solar  systems  than  any  other  installer  based  on  California’s  solar  incentive  program  data.  “We  build  high  performing  beautiful  solar  systems  with  talented  well  trained  installers  and  office  support,  many  of  whom  came  to  Luminalt  through  local  training  organizations  that  work  with  disadvantaged  communities”  says  Cotter.      Luminalt  was  the  first  San  Francisco  installer  to  become  GoSolarSF  workforce  development-­‐certified.  GoSolarSF  local  hiring  guidelines  have  led  to  121  jobs  for  disadvantaged  San  Franciscans  at  companies  such  as  Luminalt,  SolarCity,  Occidental  Power,  and  Real  Goods  Solar.    For  a  250  kW  installation  at  Fort  Mason,  Luminalt  partnered  with  the  Laborers  Unions  to  build  one  of  San  Francisco’s  biggest  solar  projects  in  recent  years.      “There  is  a  wealth  of  talent  that  is  untapped  and  often  overlooked  in  neighborhoods  that  have  been  plagued  by  income  disparity,  joblessness  and  environmental  degradation,”  says  Jeanine  one  of  few  women  who  holds  a  California  solar  specialty  contractor’s  license,  “GoSolarSF  creates  jobs  for  these  individuals  and  grows  the  local  solar  economy.”  

19.4  

65  

GoSolarSF  Incendve   Total  Solar  Investment  

Local  Investment:  $  (Millions)  

“San  Francisco  continues  to  innovate  with  programs  that  drive  objectives  which  we  care  about  as  a  community.  GoSolarSF  is  unlike  any  solar  incentive  program  in  the  country.  It  makes  solar  possible  for  low-­‐income  customers,  non-­‐profits,  tenants,  and  businesses  while  creating  good  local  jobs.”    -­‐-­‐  Jeanine  Cotter,  Business  Owner  

Page 5: GoSolarSF: Economic & Environmental Impacts

Based  on  an  approximate  average  labor  costs  on  qualifying  installations,  systems  installed  or  in  the  queue  for  GoSolarSF  have  directly  supported  406-­‐474  solar  jobs  and  $19.5-­‐$22.8  million  in  solar  wages.1  National  solar  leaders  such  as  Sunrun  have  chosen  to  headquarter  in  San  Francisco  and  employ  hundreds  of  local  workers  because  of  GoSolarSF  and  the  City's  nationally  recognized  culture  of  solar  policy  innovation.  The  program  has  also  supported  additional  indirect  jobs  and  economic  activity  through  a  multiplier  effect,  as  those  solar  wages  are  largely  spent  within  the  community  at  local  businesses.      Workforce  Development:  In  addition  to  tapping  into  solar’s  general  job  creation  ability,  the  GoSolarSF  program  is  intended  to  provide  a  pathway  to  employment  in  the  sector  for  disadvantaged  residents.  As  such,  installations  receiving  GoSolarSF  incentive  payments  must  be  performed  by  contractors  employing  graduates  of  the  City’s  Workforce  Development  Program.  This  requirement  does  not  apply  to  non-­‐profit  installers  or  to  installers  with  three  or  fewer  employees  operating  their  principal  place  of  business  in  San  Francisco.    To  date,  GoSolarSF’s  Workforce  Development  program  has  provided  121  solar  job  placements  for  San  Francisco  residents  who  otherwise  face  barriers  to  employment.  Thirty-­‐one  solar  companies  have  hired  graduates  of  this  community  based  job-­‐training  program.  Workers  of  color  represented  the  largest  populations  served  by  the  Workforce  Development  program  with  40%  of  job  placements  reporting  as  Black  or  African  American  and  22%  reporting  as  Latino  or  Hispanic.  2  

GoSolarSF  Creates  Jobs  for  Disadvantaged  San  Franciscans      ASIAN  NEIGHBORHOOD  DESIGN  (AND)  was  founded  in  1973  by  a  group  of  UC  Berkeley  architecture  students  determined  to  improve  living  conditions  for  low-­‐income  immigrant  families  and  seniors  in  San  Francisco  and  Oakland  Chinatowns.    AND’s  Employment  Training  Center  (ETC)  was  established  five  years  later  with  a  goal  of  providing  job  training  to  at-­‐risk  jobseekers  with  barriers  to  employment.    Since  2008,  the  ETC’s  green  construction  training  program  has  been  the  most  successful  launching  pad  for  economically  disadvantaged  workers  seeking  jobs  through  GoSolarSF.    In  fact,  more  than  half  of  GoSolarSF’s  121  workforce  development  hires  to  date  are  AND  graduates.  Graduates  of  AND’s  14-­‐week  green  construction  training  program  have  found  employment  with  solar  companies  such  as  Luminalt,  SolarCity,  Sungevity,  and  Real  Goods.    AND  has  helped  elevate  GoSolarSF’s  profile  as  not  only  a  successful  solar  program  but  a  job  generator  for  low-­‐income  communities  of  color  and  workers  that  policy  makers  seek  to  serve  in  advancing  equity  in  the  green  economy.  

“We’re  proud  of  our  track  record  of  delivering  on  the  promise  of  equal  opportunity  in  the  green  economy.  GoSolarSF  is  a  workforce  development  program  that  has  created  green  jobs  that  have  helped  80%  of  our  graduates  secure  employment  within  6  months.”    

-­‐-­‐  Erica  Sklar,  AND  Executive  Director  

Page 6: GoSolarSF: Economic & Environmental Impacts

 

End  Notes:  1  Estimated  based  on  an  approximate  30-­35%  labor  costs  on  covered  installations  and  an  average  $48,000  annual  salary  for  full-­time  employment  2  SF  OEWD  program  data  3NAACP,  “Just  Energy  Policies:  Reducing  Pollution  and  Creating  Jobs,"  2013.  4  20-­year  production  total  based  off  of  .5%/year  degradation,  assumptions  from  PV  Watts,  and  using  PGE  ClimateSmart  GHG  emissions  factor  (0.524  lbs  CO2  per  kWh)      Prepared  June  2014    Report  Authors:  Rosalind  Jackson,  Vote  Solar  Kevin  Armstrong,  Vote  Solar    Acknowledgements:    Brightline  Defense    Luminalt    Photo  Credits:  Luminalt,  Bob  Carmichael    Thank  you  to  the  San  Francisco  Public  Utilities  Commission  and  San  Francisco  Office  of  Workforce  Development  for  providing  GoSolarSF  incentive  participation  and  workforce  data.      About  Vote  Solar:  Headquartered  in  San  Francisco  since  2002,  Vote  Solar  is  a  non-­‐profit  grassroots  organization  working  to  make  solar  a  mainstream  energy  resource  across  the  U.S.  www.votesolar.org  

Environmental  Benefits:  Clean,  reliable  electricity  from  the  sun  reduces  the  need  for  fossil  power  generation,  a  major  source  of  greenhouse  gas  emissions  and  other  harmful  air  pollution.      The  solar  energy  systems  installed  through  GoSolarSF  reduce  the  need  for  fossil-­‐based  peak  power  generation,  which  has  historically  disproportionately  impacted  the  health  of  low-­‐income  families.  3  Assuming  a  minimum  20-­‐year  system  lifetime,  systems  installed  or  in  the  queue  for  GoSolarSF  will  also  reduce  harmful  carbon  pollution  by  172,631,800  pounds.  4  Because  the  City  retains  the  renewable  energy  credits  generated  by  the  program,  GoSolarSF  provides  a  real  economic  and  regulatory  compliance  value  as  San  Francisco  seeks  to  meet  its  climate  action  goals.