gosolarsf: economic & environmental impacts
DESCRIPTION
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.TRANSCRIPT
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
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
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
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
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
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.