Rooftop Solar Energy Roundtable Presentation Final

Los Angeles Solar:

Now and into the Future

J.R. DeShazo, Director, UCLA Luskin Center for InnovaCon Manuel Pastor, Director, USC Program for Environmental and Regional Equity

March 27, 2015

0

100

200

300

400

500

600

700

800

900

Burbank W&P

PG&E SDG&E SMUD SCE Pasadena W&P

Riverside Public UClity

LADWP Anaheim Public UClity

Glendale W&P

Wa#

s per Customer

Los Angeles is in boYom third of uCliCes for solar in California

159 solar waYs per customer

Los Angeles remains heavily dependent on coal

0

500

1,000

1,500

2,000

2,500

3,000

PG & E SMUD Glendale W&P

Burbank W&P

Pasadena W&P

SDG&E SCE LADWP

Coal Cap

acity

(MW)

42% of power mix

Clean Coalition

1,500 MW of in-basin solar by 2025

Clean Coalition 600 MW

1,500 MW

Clean Coalition

1,200 MW

800 MW

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

LA Clean Energy CoaliCons vision for in-basin solar

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Prog

ram Cap

acity

(MW)

Scaling to 1,500 MW of in-basin solar

2025 Goal

900 MW of

expanded feed-in tariff

500 MW of net

metering

100 MW of municipal projects

Feed-in Tariff

Net Metering

Community solar and other municipal projects

Governor Jerry Brown has called for 50% renewables

by 2030

Los Angeles following States lead

To comply with current RPS requirements, LADWP must procure at least 75% of renewable energy from

Category 1 RECs

FiT, community solar and municipal projects receive Category 1 RECs NEM projects receive Category 3 RECs

Achieving in-basin solar goals will create local jobs

Total job years created 35,950 Job years for large projects 17,950

Feed-in tariff 16,155

Community solar 718

Other municipal projects 1,077

Job years for small projects 18,000

Net metering 18,000

Note: Includes 22,950 direct job years and 13,000 indirect job years

remove GHGs and other pollutants

Over 26.4 million metric tons of avoided CO2e

Note: GHG avoided when replacing coal-fire power plant

The equivalent to more than 5.6 million

vehicles removed from Los Angeles

roads

Source: UCLA Luskin Center for InnovaCon Ratepayer Impact Model EPA Greenhouse Gas Equivalencies Calculator

Nearly 39 million MWh of energy produced

and generate clean local energy for Los Angeles homes and businesses

Enough to power over 335,000 Los Angeles homes

per year

Note: Assumes 6,621 kWh average annual LADWP household electricity consumpCon (CEC, 2012)

Local businesses will be able to take advantage of federal tax credits

Even if the 30% Federal Investment Tax Credit is reduced in

2016, Los Angeles businesses can sCll leverage

$552 million in tax credits

Note: Assumes ITC is reduced to 10% in 2017

Total in-basin solar capacity:

153.5 MW

Net metering (NEM):

143 MW

93%

Feed-in tariff (FiT):

6.5 MW 4%

Other in-basin solar:

4 MW 3%

Where are we now with installing rooiop solar in Los Angeles?

1) FiT 100: Five tranches over two years

2) FiT 50: Fiiy MW bundled with out-of-basin solar Contracts have been awarded

LADWP has successfully allocated 150 MW of capacity with the goal of interconnecCon by the end of 2016

Tranche 1 20 MW $0.17 Tranche 2

20 MW $0.16

Tranche 4 15 MW $0.14



February 2013

July 2013

March 2014

August 2014

March 2015

Note: Tranche 4 released 15 MW and Tranche 5 released 25 MW

Over 3,300 job years created $562.5 million invested into Los Angeles Nearly 4 million MWh of clean local energy generated 2.6 million metric tons of avoided CO2e A half million cars removed from Los Angeles roads Over 240,000 homes powered

Benefits of the allocated 150 MW of in-basin solar

0

10

20

30

40

50

60

70

80

Tranche 1 Tranche 2 Tranche 3 Tranche 4

Capa

city (M

W)

Goal

Private industry has responded posiCvely: Program is oversubscribed by 238%

50 MW 250% over- subscripCon


14 MW 7% under- subscripCon


Offered Feb. 13 $0.17 per kWh

Offered Aug. 14 $0.14 per kWh

Offered March 14 $0.15 per kWh

Offered July 13 $0.16 per kWh

Note: In Tranche 4, large projects were over-subscribed. Small projects were undersubscribed by 94%.

Tranche 1 Total wait Cme: 425 days



0

50

100

150

200

250

300

350

400

450

Med

ian Wait T

ime (days)

LADWP execuCng FiT contracts more quickly

So far, only 6.5 MW of the released 100 MW have been built with

another 8.1 MW contracted

0 10 20 30 40 50 60 70 80 90 100 Program Capacity (MW)

However, several improvements are needed

6.5 MW

8.1 MW

Tranche 1 February 13

Tranche 2 July 13

Tranche 3 March 14

Tranche 4 August 14

Tranche 5 March 15

But aYriCon rates are high

0

5

10

15

20

25

30

35

Tranche 1 Tranche 2 Tranche 3 Tranche 4

Capa

city Lost (MW)

AYriCon rates have been high

61% of applicaCons drop out




0

10

20

30

40

50

60

70

80

90

100

Contracted

Cap

acity

(MW)

500% Increase in SOPPA ExecuCon

Business as Usual

and LADWP will need to interconnect over 4 MW per month to achieve interconnecCon goals

2016 Goal

Note: Based on rate of SOPPA execuCons

LADWPs current interconnecCon pace is 271 kW per month

FiT does advance solar related equity goals

Training programs which frequently target less

advantaged workers generally in or near these opportunity

areas

40% of all installed or acCve capacity falls within equity hot

spots

Equity Hot Spots are defined as census tracts in:

BoYom 1/3 of household income and

BoYom 1/3 high school graduaCon rate and Top 1/3 unemployment rate and/or

Top 10% CalEnviroScreen

When it works . . .

PermaCitys Forever 21 Project

5.1 MW (Net Metering + FiT) Project in Lincoln Heights Local hiring from programs training

disadvantaged workers

UClized racking system manu-factured locally & invented by PermaCity

And how could it do more?

Maximize the connecCon between high-need communiCes, equity opportuniCes and the FiT through codified programs and incenCves

Examples: PrioriCze solar equity projects and incenCvize hiring disadvantaged workers

Work with training programs to beYer arCculate and develop career pathways

And how could it leverage more? CalEnviroScreen is designed to

distribute Cap and Trade proceeds clear overlap with

equity hot spots

A share of S.B. 535 Investment Funds can be used for energy

efficiency goals, with priority for low-income mulC-family units

RecommendaCons

1. Ask for bolstered staffing plan on which LADWP reports quarterly in order to create capacity and insCtuConal knowledge On January 2013, LADWP approved a 150 MW FiT program and requested 30 FTE from the Board of Commissioners. As of today, only 3 FTE are dedicated to the FiT as well as consulCng assistance (LADWP Board TransmiYal, 2013).

2. Call on Board to ask LADWP Staff for a waitlist management plan including strategy to review and prioriCze waitlisted projects based on: Quality of applicaCon Projects in solar equity hot spots Economic development opportuniCes

Hiring from high need areas/disadvantaged workers

RecommendaCons 3. Review Expanded FiT proposal based on

lessons learned from FiT 100 Evaluate pricing, waitlist management, recruitment, technical assistance and other program features

4. AcCvely encourage linkages to less advantaged workers Hiring credits for employing workers from high need areas/ disadvantaged workers; arCculate Prop. 47 opportunity; facilitate smaller projects; measure equity on Mayors dashboard

5. Seek advice of LADWP and other stakeholders on addiConal improvements

Users can sort by: ZIP code City council district Property owner Property use System size

Other announcements: A new tool from the LABC InsCtute

Online resource to idenCfy potenCal sites for rooiop solar installaCons

Access at hYp://solar.labcinsCtute.org

Includes nearly 8,000 properCes

Thank you

J.R. DeShazo [email protected]

Manuel Pastor

[email protected]

All FiT analysis based on Current FiT Review Priority List released March 5, 2015

Direct investment assumes $4.56 per waY for NEM, and $3.23 per waY for FiT and community solar Also includes a 5% annual decrease in cost per waY and a 5% discount rate

Equity hotspots include census tracts in boYom third of household income AND boYom third of high school graduaCon rates AND top third of unemployment AND/OR top 10% CalEnviroScreen score

See next slides for job year assumpCons

Sources and AssumpCons

Direct Jobs MulCpliers FTE per MW

BOS components 3.0 System integraCon 2.8

InstallaCon 2.1 Annual O&M 0.4

UClity network upgrade 1.5 Program administraCon 1.5

Total direct jobs 11.3 Note: Does not include wafer, cell and module job creaCon Source: Navigant, 2008

Indirect Job MulCpliers FTE per MW

Manufacturing 4.20 ConstrucCon 2.45

Total indirect jobs 6.65

Job Years Created for Large Projects AssumpCons

Source: NaConal Renewable Energy Laboratory Note: Manufacturing is BOS * 1.4; ConstrucCon is system integraCon and installaCon * 0.5

Direct Jobs MulCpliers FTE per MW

BOS components 3.0 System integraCon 7.8

InstallaCon 9.2 Annual O&M 0.3

UClity network upgrade 1.5 Program administraCon 1.5

Total direct jobs 23.3 Note: Does not include wafer, cell and module job creaCon Source: Navigant, 2008

Indirect Job MulCpliers FTE per MW

Manufacturing 4.2 ConstrucCon 8.5

Total indirect jobs 12.7

Job Years Created for Small Projects AssumpCons

Source: NaConal Renewable Energy Laboratory Note: Manufacturing is BOS * 1.4; ConstrucCon is system integraCon and installaCon * 0.5

Rooftop Solar Energy Roundtable Presentation Final

Documents

Transcript of Rooftop Solar Energy Roundtable Presentation Final