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Maximizing Solar Energy Efficiency for California Schools

Explore how combining solar energy and efficiency projects can lower costs and reduce carbon footprint for California schools. Learn about PG&E's programs, incentives, and financing options for enhancing energy efficiency. Discover the benefits of integrated projects and the California Solar Initiative.

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Maximizing Solar Energy Efficiency for California Schools

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  1. State Allocation Board HearingSolar Energy and Energy Efficiency Project Options for California Schools Mark Johnson, Energy Solutions Manager - Schools SegmentPacific Gas & Electric Company Kim Ngo, Program Manager – Solar and Customer Generation Pacific Gas & Electric Company December 5, 2011

  2. Progressive Energy Policy • Long-standing State policies lower carbon footprint • 30+ years of energy efficiency programs facilitated by “decoupling” of rates • California Energy Action Plan’s preferred loading order: • 1. Customer Energy Efficiency and Demand Response • 2. New Renewable and Distributed Generation • 3. Clean gas-fired plants

  3. PG&E Energy Efficiency Programs Impact on Schools Segment • From January 2010 – September 2011 • Represents EE programs only (does not include DG programs) • PG&E system wide, all projects under Schools segment NAICS codes.

  4. Energy Efficiency Integrated with Solar • Solar projects typically take 2 – 3 times longer to payback verses Energy Efficiency projects. • The “blended” financials (EE + Solar) typically result in EE making Solar more affordable when evaluated as an integrated project. • Solar / DG size and cost can be reduced ( less power required ). • This can result in lower overall project costs, less risk due to better financials, greater comfort & control usually result too! Self - Generation Carbon Offsets Demand Response Energy Efficiency

  5. PG&E Retrofit Incentive Programs • Energy Savings Rebates • The fastest and easiest approach for common retrofits • Customized Retrofit Incentives • Calculated approach for more comprehensive projects • Retrocommissioning incentive program • Focuses on “tuning up” controls • Third Party Programs • Over 80 select programs with offerings that address specific needs of a market segment (i.e. schools) OR a specific technology (i.e. lighting, HVAC, etc).

  6. Energy Efficiency Supporting Programs Energy Efficiency Financing Program Bill Neutrality – Loan payments equal to estimated energy savings Zero Interest - no cost to customer for life of the loan Public Schools/Gov. - Up to 10 yr loan term, $250,000 per meter Large Integrated Audit Program Investment grade integrated energy audits for larger facilities (i.e. High Schools) that address evaluating Energy Efficiency, Demand Response, Solar, Distributed Generation. Project Engineering & Calculation Assistance Specialized local engineering support for project and energy saving calculation assistance.

  7. Kim Ngo, Program Manager – Solar and Customer Generation Pacific Gas & Electric Company California Solar Initiative Program

  8. Integration of EE and Renewables EE should be considered prior to Renewables Why? California’s loading order encourages that EE be implemented prior to DG EE is typically much more cost-effective than Renewables Decreasing a facility’s consumption with EE reduces the size (and cost) of a Renewable system necessary to offset facility’s load The capital investment on EE projects are typically a lot less and easier to implement than a large solar deployment.

  9. The California Solar Initiative PG&E began administering program in 2007 PG&E will provide $1 billion in incentives over life of the program Statewide Objective: 3,000 MW by 2016 (PG&E’s goal 764.8 MW) Customers must perform energy efficiency audit to be eligible for incentives Includes retrofit, low income, and new homes elements • PG&E CSI • Received more than 39,000 applications Since January 2007 • Completed over 33,000 projects for a total of over 365 MW (CEC AC) Data as of 11/21/11

  10. The California Solar Initiative

  11. The California Solar Initiative • Senate Bill 585: • Increases the total cost of the CSI Program funded by customers of PG&E, Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) by $200 million statewide • Revises the PBI payment rates for Steps 8, 9, and 10 for all new CSI applicants (both residential and non-residential) to incorporate a 4% discount rate rather than the 8% rate previously incorporated into PBI payments

  12. CSI Schools (K-12) Participation Approximately 29% of Completed K-12 Projects are PPAs *Active includes reserved and projects under review

  13. 14 Questions ? Thank You !

  14. Appendix

  15. Customer Financing Overview Approximately 29% of Completed K-12 Projects are PPAs

  16. Financing Options Full Purchase (Cash or Financing) School District Solar Company Owner of system Borrow money or pay cash Full payment up front Maintain and monitor system Economics: Cash / total savings Loan pmt. / monthly savings Design and install Sell Honor warranties (equipment & labor) $

  17. Common Financing Options for Schools PPA Solar Company School District $ Owner of system Design and install Sell power Maintain and monitor system Honor warranties (equipment & labor) Remove system at end if needed Low or no money down Monthly power payment Possible buyout in the future Economics: Monthly pmt. / monthly savings

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