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San Diego Solar Water Heating Pilot Program

Learn about the Solar Water Heating Pilot Program in California, its policy context, program overview, statistics, lessons learned, changes, and evaluation. Presented by Andrew McAllister and Annie Henderson from the California Center for Sustainable Energy.

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San Diego Solar Water Heating Pilot Program

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  1. Go Solar California! Andrew McAllister Annie Henderson California Center for Sustainable Energy San DiegoSolar Water Heating Pilot Program August 26, 2008

  2. Presentation Road Map • Policy Context • Program Overview • Program Statistics • Lessons Learned to Date • Changes and Modifications • Evaluation Overview

  3. CCSE: Who we are California-based, 501(c)(3) not-for-profit organization • Transportation • Climate Change • Energy Efficiency • Green Building • Renewable Energy Serves as an independent voice on energy issues and is a trusted resource for businesses, consumers and public agencies. www.energycenter.org

  4. SWHPP Policy Context • Approved by CPUC Ruling on February 15, 2007 • Part of the California Solar Initiative; Allocated $2.6M from the overall $2.16B CSI IOU budget • Funded by SDG&E electric ratepayers • Conceived and designed to gather information to enable the CPUC to evaluate the need and potential for a statewide program

  5. Policy Context – AB1470 • AB 1470 authorizes the CPUC to begin a statewide program based on data from the Pilot Program • Signed on October 12, 2007 to create the Solar Water Heating and Efficiency Act of 2007 • $250 million to install 200,000 systems over 10 years • Would be funded by natural gas ratepayers • ARB Scoping Plan incorporated AB1470 goals into status quo; • Identified a potential “stretch” goal of 1.75M SWH systems in the state

  6. The SWHPP – Basics • Provides incentives for residential, commercial and industrial customers in the SDG&E service territory • Program rolled out on July 2, 2007 • Applications will be accepted through Dec. 31, 2009, or until funding is exhausted • All installations to be complete by June 30, 2010 • Performance data to be collected on a sample of installed systems (up to 100) • Goal of 750 residential systems and ~30 commercial systems

  7. Eligibility • Host site must be an SDG&E electrical customer • Residential and commercial retrofit and new construction installations are eligible • Pools and Spas not eligible • Installation must use Solar Rating and Certification Corporation (SRCC) certified equipment and complete certified systems • New solar systems only, but allow replacement of existing systems if all components are replaced except for copper piping • All systems must be permitted

  8. Incentive Options • Prescriptive Method • MUST use an SRCC OG-300 rated system • Residential and small commercial systems • $1,500 or less based on Solar Orientation Factor (SOF) and SRCC Annual Savings Rating • Minimum Rating: 60 therms or 1200 kWh annual savings • Area Method • For larger/innovative systems • Collectors must be SRCC OG100 certified. • $15 - open loop, $20 - closed loop, adjusted for SOF and SRCC rating • Maximum $75,000 per installation

  9. Quality Control Measures • Contractor must qualify for participation • Permits required • Minimum Warranty Requirements: • Collectors: 10 years • Balance of System: 1-5 years per manufacturers’ warranties • Labor and installation: 1 year minimum • 5 year warranty for parts and labor for active, open-loop in CZ7 • System Standards • All new equipment - SRCC certified • Freeze protection appropriate for Climate Zone • Comprehensive inspections by CCSE on all systems • Technical Advisory Board: • Installers, Manufacturers, CPUC, SRCC, CalSEIA, Utilities, NREL/DOE

  10. Program Participants • 29 Approved Contractors • 285 attendees at contractor workshops • 360 attendees at the homeowners educational workshop • 123 Program Applications received through mid-August 2008 • 55 Prescriptive incentives paid or pending payment, $68,659

  11. Project Characteristics - Residential

  12. Changes to the Program • Adaptable to market needs • Review of policies and industry concerns with the Technical Advisory Board • Reduced equipment requirements on anti-scald valves • Increased warranty requirement for open-loop, active systems • Reduced insurance requirements for residential system installation • Consideration of incentive structure (PFM) • Participating Contractors: Please share your experiences and feedback – this is what we are here for!

  13. Changes, cont’d. • Petition to Modify the Program • Enhance interim evaluation* • Frontload data analysis and collection* • Extend program timeline* • Include new construction (separate motion)* • Broaden coverage of the SWHPP • Simplify incentive structure; increase incentives * adopted

  14. Challenges to the Market (San Diego) • Customer awareness, education and trust • Need for workforce development - installer and sales training • Understanding and adoption of SRCC and Uniform Solar Energy Code • Permitting – lack of uniformity across and predictability within jurisdictions. Need education of permitting officials • Cost – additional costs for permitting, reliable freeze protection and adapting to SRCC guidelines • Equipment innovation and interaction - tankless, hybrid • Flexible, scalable business models

  15. Evaluation Plan • Itron contracted since June 2007 • Initial Contractor surveys done in late 2007 • Proposed enhancement of the evaluation to include surveys outside of SD area and throughout the US

  16. Evaluation Objectives • Provide Initial Market Assessment and Baseline Analysis • Determine the Relative Importance of the Various Barriers to SWH Penetration • Measure Energy (Gas and Electric) and Peak Demand (Electric) Savings Achieved • Measure System Cost-Effectiveness • Measure Indicators of Outreach Effectiveness • Compare Price Effects of the Pilot to Market Developments in Area(s) not Covered by the Pilot • Provide Ongoing Feedback and Corrective, Constructive Guidance Regarding Pilot Implementation

  17. Evaluation Objectives - 2 • Assess the Overall Level of Program Performance and Success • Support Feasibility Assessment and Program Design of a Statewide SWH Program Increased Focus on Interim Evaluation (from PFM): • Expand Market Research Statewide • Expanded Cost-Benefit Analysis • Market Behavior Costs and Benefits • System Equipment and Installation Costs • Market Evolution Costs and Benefits

  18. SWHPP Contacts • Andrew McAllister – CCSE Director of Programs andrew.mcallister@energycenter.org • Annie Henderson – SWH Pilot Program Manager annie.henderson@energycenter.org www.swh.energycenter.org

  19. Thank You! 8690 Balboa Ave, Suite 100San Diego, CA 921231-866-SDENERGYwww.energycenter.org August 26, 2008

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