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California Solar Initiative

Low Income

Multifamily

Program

Public WorkshopMarch 17, 2008San Francisco, CA

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Agenda9:00 to 9:20 Introduction of workshop scope and purpose

9:20 to 9:45 Low Income Multifamily Program overview:Background & CSILow Income Program eligibility

9:45 to 10:45 Proposed Low Income Multifamily Program: Program GoalsProgram AdministrationIncentive and Financing StructureBudgetEnergy Efficiency Requirements

10:45 to 11:00 Challenges to designing a solar incentive program for multifamily affordable housing

11:00 to 11:45 Open discussion on remaining issues

11:45 to 12:00 Summary, next steps, and conclusion

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Overview

California Solar Initiative (CSI): $2,167 million over ten years (2007-2017) 3,000 MW of new distributed solar generation by 2017 Self-sustaining solar industry free from ratepayer subsidies by 2017

Program CategoryBudget

($ Million)

General Market Program Subtotal $1,897

Direct Incentives to Consumers $1,707

Program Administration, Marketing & Outreach, Evaluation (10%) $190

Low Income Program (10%) $217

Research, Development, Deployment and Demonstration (RD&D) $50

San Diego Regional Energy Office Solar Hot Water Pilot $2.6

Total CPUC CSI Budget $2,167

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OverviewCSI Low Income Programs:

$217 million 50% ($108 million) Single-Family owner-occupied

CPUC adopted Single-Family program in D.07-11-04550% ($108 million) Multifamily renter-occupied

Eligibility defined in PU Code Section 2852(a)(2) :(A) Housing financed using local, state or federal housing

assistance programs(B) Residential complex in which at least 20 percent of the total

units are sold or rented to lower income households

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Program Goals The staff proposed goals of the Low Income Multifamily Program are

to:1. Stimulate the adoption of solar power in the affordable housing

sector;

2. Improve the energy utilization and overall quality of affordable housing through the application of solar and energy efficiency technologies;

3. Decrease electricity use and costs without increasing monthly household expenses of low income tenants;

4. Increase awareness of and appreciation for the benefits of solar among low income tenants and affordable housing developers.

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Program Administration

• Recommended administrative structure: CSI Program Administrators - PG&E, SCE & CCSE

• Multifamily program targets affordable housing building owners and developers not low-income tenants

• Target audience is more similar to the General Market CSI program than the Single-Family Program

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Incentive and Financing Structure• Track 1: Incentives

Track 1A:

PV system offsets Common Area Load

Track 1B:

PV System offsets Individual Tenant Load

$3.00/watt $4.00/watt

•Track 2: Affordable Housing Solar Grants•$20 million of multifamily budget set aside for AH projects that require additional funds•Applicants must prove added direct benefits to low-income tenants

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Budget

Utility

Percent of total

budgetCSI Budget (in millions)

Low Income Budget

(in millions)

LI MP Budget

(in millions)

PG&E 43.7% $ 947 $ 94.7 $ 47.34

SCE 46.0% $ 997 $ 99.7 $ 49.84

SDG&E 10.3% $ 223 $ 22.3 $ 11.16

Total 100% $ 2,167 $ 216.7 $ 108.34

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Energy Efficiency

• All program applicants must undergo an energy audit

• All applicants must enroll in an IOU energy efficiency program

• Buildings that meet Title 24 standards are exempt

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Challenges to Multifamily Affordable Housing Solar

• Allocating benefits between solar system owner and low income tenants

• Metering issues

• Diversity of the affordable housing market

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Recommendations for overcoming challenges

• Virtual net-metering

• Submetering exemption to master-metered buildings

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Open discussion /questions• Are proposed incentive levels appropriate?

• Are there additional benefits, not described in this proposal that can be passed on to low income tenants?

• Is Virtual Net-Metering a feasible option for the LI MP?

• Are there additional challenges not anticipated in this proposal?

• Additional questions/comments.

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Next Steps

• Comments due March 26, 2008

• Formal comments: Become a party to the proceeding

• Informal comments: Submit to Energy Division

•Letters should be addressed to Melicia Charles

California Solar Initiative

Go Solar California!

For Additional Information:www.cpuc.ca.gov

www.GoSolarCalifornia.ca.gov

Thank You!Curtis Seymour, css@cpuc.ca.gov, 415-703-5404

Melicia Charles, mvc@cpuc.ca.gov, 415-355-5502