Erik caldwell clean generation program pp 04162010
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The City of San Diego is launching a Clean Generation Program to allow property owners to finance renewable energy and energy efficiency upgrades through loans repaid via their property tax bills. The program will be administered by Renewable Funding and the California Center for Sustainable Energy. It offers $20 million in funding at a competitive 8.75% APR over 20 years. Eligible upgrades include solar, energy efficient appliances and insulation. The program aims to create jobs, demonstrate leadership in sustainability and reduce greenhouse gas emissions.
Erik caldwell clean generation program pp 04162010
- 1. The City of San Diego’s Clean Generation Program April 16, 2010 1
- 2. Clean Generation Program Property Assessed Clean Energy Financing (PACE) Purpose: Allows property owners to finance renewable energy and energy efficiency improvements through loans that would be repaid as an item on the property owner's property tax bill. 2
- 3. The Benefits • Loan made to property • Transferable on sale • Competitive 20 year rate • Repayment via property tax bill 3
- 4. Why? • Job / Sector Development – Increase demand for local cleantech products and services • Leadership – Municipal leadership is required – Positive cash flow for participants – Low cost / low risk to the City • Environment – GHG reduction 4
- 5. Clean Generation Program Selected Team Renewable Funding, LLC. • Short term (Gap Financing) • Core administrative services California Center for Sustainable Energy (CCSE) • Administrative services • CSI integration (State of California Solar Incentive Program) 5
- 6. Clean Generation Program Overview Funding: • 20 million dollars with potential for accessing additional funds • Fully loaded APR = 8.75% (Estimated) • Duration of Loan up to 20 years 6
- 7. Clean Generation Program Eligible Measures • Energy Efficiency Retrofits • Renewable Energy Fixtures • Insulation • Solar • Heating and Cooling • Wind Systems • Fuel Cells • A/C retrofits • Water Efficiency Fixtures • Whole House Fan • Low flow fixtures • Water heaters • Reclaimed Water • Pool Pumps Systems • Water Efficient Irrigation 7
- 8. Micro-Bond Process Property Owner Administrator 1 - Submit Application Includes Project Details Package • Verify eligibility 2 - Receive Notice to Proceed Includes Funding Reservation 3 - Install Project 4 - Submit Funding Request Includes Verification Documents • Verify project compliance • Generate contract docs 5 - Receive Assessment Contract Documents 6 - Submit Assessment Contract Package • Place lien • Issue bond 7 - Receive Payment • Remit payment County 8 - Pay Back via Property Taxes 8
- 9. Participation Options • Energy efficiency requirements • Short term goal – Educate and encourage • Long-term goal – Serve as a force for market transformation • Two Phase EE Implementation – Phase I: Thru December 2010 – Phase II: Starts 2011 9
- 10. Prerequisites for all properties • Items that must be replaced: – Central Air Conditioners (SEER ≤ 7) – Single Speed Pool Pumps • Replaced with: – Central Air Conditioners (SEER ≥ 13) – Variable Speed Pool Pumps 10
- 11. Energy Efficiency Prerequisites • HERS or equivalent audit • May bypass audit requirement if you use a BPI certified contractor • Must install fixtures that are pre-approved by the program administrator 11
- 12. Renewable Energy Prerequisites • Home Improvement Path – Phase I • HERS audit • Must install fixtures that are pre-approved by the program administrator • Limited system size (70% of load or 130% of baseline) – Phase II • HERS audit • Participation in prescriptive track of Whole Home Retrofit program or HomeStar Silver • BPI Certified contractor required 12
- 13. Renewable Energy Prerequisites • Home Performance Path – Phase I • HERS audit (Test out: with 20% reduction or HERS II ≤ 100) • Optional participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold – Phase II • HERS audit (Test out: with 20% reduction or HERS II ≤ 100) • Required participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold 13
- 14. Renewable Energy Prerequisites • Already Efficient Homes – Phase I & II • HERS audit (HERS II ≤ 100) or Title 24 2005 / 2008 report • Demonstrate historical annual consumption ≤ 130% of baseline (Tier 1-2) 14
- 15. Clean Generation Program Program Design Program Eligibility: • Allocation: First come first serve • Property must reside within the City of San Diego • Multifamily - four units or less 15
- 16. Clean Generation Program Program Design • Underwriting Criteria – Ownership: Property owner must initiate and sign application – Property Tax Payment / Title History: • Must have a good payment history • No delinquencies in the past 3 years • No involuntary liens may be on property – Loan to Value Ratio, 10:1 is suggested ratio 16
- 17. Clean Generation Program How will people use the program? • Arguably better financing options exist for solar PV • Ideal for property owners who: • Can’t get a home equity line of credit • Are considering a move in the near future • Are considering financing whole home retrofits that include both EE and renewable energy 17
- 18. Sample Costs Financed Project Costs: $24,000 Solar / Energy Efficiency Package • Term: 20 Years • Fixed APR: 8.74% (Estimated) • Annual Payment: $2,615 • Application fee: $300 18
- 19. Clean Generation Program Timeline • April - City Council – Public hearing on district formation – Approval of resolution of intent – Ordinance levying special tax approved – Approval of administrative agreement • May- City Council – 2nd reading of the ordinance levying special tax approved – Hold Public Election • June– Program Goes Live 19
- 20. Clean Generation Program Questions? 20