New Solar Homes PartnershipNew Solar Homes PartnershipProgramProgramProgramProgram

Maggie DimitrovaPacific Gas and Electric CompanyPacific Gas and Electric Company

October 1st, 2010

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Agenda

PG&E’s Integrated Approach

NSHP Program Overview

NSHP Guidebook

Application Process

Energy Efficiency & SolarEnergy Efficiency & Solar

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About PG&EAbout PG&EWhat we do:Deliver safe reliable and environmentally responsible gas and

Employees 19,800

Deliver safe, reliable, and environmentally responsible gas and electricity to approximately 15 million Californians

Electric and gas distribution customers 5.1 MM electric 4.2 MM gas

Electric transmission circuits 18 610 milesElectric transmission circuits 18,610 miles

Gas transmission backbone 6,136 miles

Owned Electric generation capacity 6 000+ MWOwned Electric generation capacity 6,000+ MW

Total Peak Demand 20,000 MW

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We serve 5% of the U.S. population but emit less than 1% of the total CO2 emitted by the utility sector.sector.

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PG&E is creating clean PG&E is creating clean energy at our own facilities

PG&E Service Center is sending energy back to the grid!

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PG&E’ I t g t d A hPG&E’s Integrated ApproachEnergy

Efficiency &

Reduce

Efficiency & Conservation

Energy Use

RenewableNeutralize Renewable Power Supply

EnergyUse

Solar &

WindClimate Smart

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NSHP Program Overview

8SB 1

CPUC(CA Public Utilities Commission)

E R d l

CEC(California Energy Commission)

Existing ResidentialExisting CommercialCommercial New Construction

Residential New ConstructionExisting Low

Income

4. New Solar Homes Partnership (NSHP)

Low Income Solar (LISP)

1. California Solar Initiative (CSI)

3. Single Family2. Multi-family

Program Administrators Program AdministratorsGrid Alternatives

PG&E SCE CCSE SDG&EPG&E SCE BVES

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NSHP ProgramProgram started January 1, 2007 – December 31, 2016

Purpose •Provide incentives and support activities for

installing eligible solar photovoltaic (PV) installing eligible solar photovoltaic (PV) systems on new homes

Statewide Goals Statewide Goals •Create a self-sustaining market for solar

homes where builders incorporate high levels of energy efficiency and high performing solar systems

•400 MW; $400 million budget

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NSHP Administration

Program Administrators – PG&E, SCE, SDG&E, and BVESand BVES

PG&E took over the program administration on June 16, 2008,

The CEC – Guidebook, NSHP web tool, CEC PV Calculator, Marketing & Outreach

New NSHP Guidebook adopted January 27th, 2010

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NSHP EligibilityEligible Technology -

•Solar electric systems (Photovoltaic)

Eligible Housing Type -•New residential construction, including total

building renovations common area of building renovations, common area of housing developments, and qualifying mixed use properties•Custom and production homesCustom and production homes•Single and multifamily buildings

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NSHP Incentive Structure

Incentives•One time up-front expected performance One time, up front, expected performance based incentives (EPBI)•Decline to zero over 10 years as megawatt goals are achieved

Market Rate Housing•Base Incentive (18 months)•Solar as a Standard Feature (36 months)•Solar as a Standard Feature (36 months)

Affordable Housing•Residential Units (36 months)Residential Units (36 months)•Common Area (36 months)

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Market Rate Housing Incentive LevelIncentive Level

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Affordable Housing Incentive LevelIncentive Level

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NSHP Guidebook

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NSHP Requirements• PV system size 1 kW AC or larger

• Grid connected with eligible utility

• Sized to offset the end-use consumer on-site electric loadelectric load

• Expected performance based incentives, calculated with the CECPV calculatorcalculated with the CECPV calculator

• New, certified system components listed on the CEC’s eligible equipment list

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NSHP Requirements (Cont’d)(Cont d)• Equipment seller must be registered with the CECCEC

• Ten year warranty on system components & labor

• Building must achieve energy efficiency above current Title 24

• Third-party field verification of energy efficiency measures and PV system (HERS rater)rater)

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NSHP Energy Efficiency RequirementRequirementTier 1 - minimum building energy efficiency (EE) requirement(EE) requirement

•15% better than Title 24 EE Building CodeTier 2 –

•2005 Title 24 - 35% better than T-24, 40% 2005 Title 24 35% better than T 24, 40% reduction in cooling load

•2008 Title 24* - 30% better than T-24, 30% reduction in cooling loadreduction in cooling load

Energy Star® appliances

* 2008 Title 24 in effect January 1, 2010

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New NSHP GuidebookGuidebook applicability

All new applications must abide by the 3rd edition

Approved applications governed by the 2nd edition

• Exceptions – Lease/PPA agreements; increase system size, but the incentive will be capped at 7.5 kW

• Submit the incentive claim with simplified process outlined in the 3rd editionprocess outlined in the 3rd edition

For incomplete applications, the applicant may opt for either with a written notice

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What’s new?

• Clarifies what is considered “new” residence under the NSHP program• Allows third party system ownership• Allows third party system ownership• Modifies “Solar as an Option” • Allows builders to apply in phases

Limits the incentives to the first 7 5kW • Limits the incentives to the first 7.5kW –except common area and virtual net metering projects

Gi li t th ti t d ig t • Gives applicants the option to designate a representative• Requires inspection of all EE measures i t ll d t d T 24installed to exceed T-24

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Cont’d…•Allows system sizes that have increased after reservation to qualify for the original incentive levelincentive level• Limits the California Flexible Installation to developments •Eliminates the need for annual retailer Eliminates the need for annual retailer registration • Simplifies the NSHP forms •Gives automatic extensions to projects with Gives automatic extensions to projects with unexpired, valid reservations as of January 1st, 2010

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Cont’d…Affordable Housing Projects

• Includes language for Virtual Net Meteringg g g• Allows projects with occupancy permit less than 2 years old• Reduces the affordable housing restriction grequirement from 45 to 10 years• TCAC projects may submit EE documentation 60 days after reservation yapproval

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Application Process

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Before you Apply

•Establish electric service from PG&E

•Submit application for Net Energy Metering

•Participate in PG&E’s Energy Efficiency Program for additional incentives Program for additional incentives

•Review NSHP Guidebook

•Apply online at https://newsolarhomes.org

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Incentive ReservationApplication Process for All Projects, Except f S Ofor Solar as an Option

•NSHP-1 Form•Building Permit/Final S bdi i i MSubdivision Map•EPBI Documentation

•CF-1R-PV Form•.emf and .her files

E i t P h •Equipment Purchase Agreement and Installation Contract•Energy Efficiency D t tiDocumentation

•CF-1R/PERF-1 Form•.bld or .mp7/.mp8 file

C t ti l t

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•Construction plan set

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Additional DocumentsAffordable Housing Projects Third-Party Ownership Projects

• Appropriate housing type documents

• Lease/Power Purchase Agreement for 10 yearsdocuments

• Regulatory Agreement• Energy efficiency

documentation can be submitted later for TCAC

Agreement for 10 years• Status report for the first

5 years• Equipment purchase

agreement waivedprojects • Installation contract

includes equipment for each site

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Application Process for Solar as an Optionp

Reservation Documents•NSHP-1 Form•Final Subdivision Map•Equipment Purchase Equipment Purchase Agreement and Installation Contract•Build-Out Schedule

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Application Process for Solar as an Option

Update Documents•NSHP-1.5 Form•EPBI Documentation

•CF-1R-PV Form• emf and her files•.emf and .her files

•Energy Efficiency Documentation

•CF-1R/PERF-1 Form•.bld or .mp7/mp8 file

C t ti l t•Construction plan set

•Project Status Report 18 months into reservation

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Payment Claim

Required Documents -

• NSHP 2 Payment Claim Formy

• NSHP 3 - 10 year warranty

• Payee data record (STD-204) Payee data record (STD 204)

• Certificate of field verification & diagnostic testing• Energy Efficiency - CF-4R and CF-4R-NSHP• PV system - CF-4R-PV one per system• PV system - CF-4R-PV one per system• New CF-1R-PV and input files if equipment

changes• Permission to operate letter received

• Lease agreement, if applicable

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Energy Efficiency & Solar

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Why energy efficiency?Homeowner

•Savings – lower energy bill•Comfort – energy efficient solar homeComfort energy efficient, solar home•Environment – reduced carbon footprint

Builder/Developer•Differentiation from competition•Incentives for both energy efficiency and solar•Ease of access and reduced paperwork

Solar Contractor•Differentiation from competition•Customer satisfaction

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Customer satisfaction

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California Advanced Homes Programg

Timeline - January 1, 2010 through December 31, 2015

Performance – based approach

Building TypeBuilding Type•Single-family detached homes•Duplex

Non – Qualifying Facilities • Remodels, additions, mobil homes, residential

care facilities, hotels, motels, dormitories

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CAHP Incentive Structure

• The baseline is 15% better than 2008 T-24 Energy Efficiency Code

• Incentives increase incrementally as the performance of the performance of the structure increases

• A calculator is A calculator is provided with the agreement

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Additional IncentivesCalifornia ENERGY STAR® New Homes – 10% bonus

Green Home Certification – 10% bonus

Compact Homes – 15% bonus

kW reduction (Working Toward Zero Peak Homes)

New Solar Homes Partnership (NSHP) Tier II -

$1,000

Design Team Incentive – 50% of cost up to $5,000

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California Multifamily New Homes ProgramAdministered by PG&E and implemented by Heschong Mahone Group, Inc.

Financial incentivesFinancial incentivesEnergy design assistanceProject roundtableProgram coordination gEducational opportunities

Program timeline – complete construction and verification by December 31 2015verification by December 31, 2015

Building types – multifamily buildings of 3 or more units

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more units

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Incentive StructureDeveloper incentives:

The baseline is 15% above code - $100 per unitIncremental incentives based on the energy savingsHERS verification incentive: $60 per unit (max of

$12,000 per project)

Energy Consultant incentives:$50 per unit (max of $10,000 per project)

CMFNH 2010-12 Incentives

t

20%$0.24/kWh$0.97/therm$38.96/kW

25%$0.30/kWh$1.22/therm$50.29/kW

30%$0.37/kWh$1.46/therm$61.63/kW

35%$0.43/kWh$1.70/therm$72.96/kW

40%$0.49/kWh$1.94/therm$84.29/kW

45%$0.55/kWh$2.18/therm$95.63/kW

15%$0.18/kWh$0.73/therm$27.63/kW

Ince

ntiv

e Am

ount

363615% 20% 25% 30% 35% 40% 45%

Percent Better Than Title 24 $/kWh $/therm $/kW

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Additional ResourcesPG&E NSHP Website: www.pge.com/nshp; 1-877-743-4112pg / p;

State Solar Website: www.gosolarcalifornia.ca.gov

NSHP b t l htt // l h gNSHP web tool: https://newsolarhomes.org

California Advanced Homes Program: www pge com/newhomes; 1-800-342-7737www.pge.com/newhomes; 1-800-342-7737

California Multifamily New Homes Program:www.h-m-g.com/multifamily/CMFNHg / y/

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