Multi-Family Solar Event

Agenda

2

Introduction• City goals• Solar programs• Case studies

City of Cambridge & Somerville

15 minutes

Solar for Multi-Family Homes

• Multi-Family Pathways• Resources• Support

Zapotec Energy 20 minutes

Solar Loans• Type of loan• Term/structure/rate• Application process

Naveo Credit Union

5 minutes

Q&A 15 minutes

Sunny Cambridge – The Year of Solar!

NET ZERO EMISSIONS REDUCTION MODEL

20152016

20172018

20192020

20212022

20232024

20252026

20272028

20292030

20312032

20332034

20352036

20372038

20392040

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Energy Efficiency Reductions

70% REDUCTION BY 2040 Renewa

ble Energy Additions

Georgetown University Energy Prize• $5 million prize• 2 years to compete – 2016 is the FINAL year!• 50 cities and towns• Municipal and residential electricity and natural gas

usage

Cambridge Solar MapThe MIT-developed MapDwell tool shows that if photovoltaic panels were installed on all good solar locations, Cambridge could generate about a third of its electricity needs via Solar PV!

Cambridge Solar Growth

Solar Economics 1015kW System, Good Solar Access, No Special Requirements

8

Gross Cost($20,000) Federal Tax

Credit 30%MA Credit $1k

$7,000

Net Cost($13,000)

20 Year Utility Bill Savings$34,000

10 Years of SRECs

$15,000 5 year payback

Net savings of $30,000+

20% return on investment

3% increased property value 20 Year Total

Return$36,000

SunnyCambridge.org

9

• Specify property location• Energy use• System and

financing preferences

1. Homeowners create property profiles

• Use aerial images• Phone, email contact• Submit quotes online

via marketplace

2. Solar installers design systems, submit quotes

• Apples-to-applescomparison of system & financing options

• Live decision support from solar advisors

3. Homeowners compare quotes & select one

Three easy steps: Simple, online comparison-shopping solution

10

Sunny Cambridge Multi-Family Solar

11

Cushing Street

Sunny Cambridge Multi-Family Solar

12

• A two-member Homeowner Association

• Mutual agreement for installation

• No common meter, two unit net meters

• Installed two separate PV systems• Plan to amend condominium

documents

Sunny Cambridge Multi-Family Solar

13

Sunny Cambridge Multi-Family Solar

14

"The folks at EnergySage and Sunny Cambridge were responsive and helpful, and it was also a pleasure working with our installer, Invaleon. They provided sound advice and personalized service; they got our system installed, approved, and up and running within 6 weeks.”

*Larsen-Garceau Family

Solar 102: Solar for Multi-Family, Condo-owners, and Landlords

August 16, 2016

Solarize Somerville:Multi-Family Buildings

Sustainability in SomervilleCarbon neutral by 2050• www.somervillema.gov/sustainaville.

City’s overarching climate change initiative

SolarizeMass Somerville• Aug-Nov 2016, volunteer/City/State

campaign offering reduced-cost solar

SolarFlair• SolarizeMass Somerville selected

installerSolar 102: Solar for Multi-Family, Condo-owners, and Landlords 16

17Solar 102: Solar for Multi-Family, Condo-owners, and Landlords

Emissions & Energy in Somerville

• No-cost Home Energy Assessments

• Make sure your home is running safely and efficient.

• Receive incentives like no-cost air sealing and up to $2,000 off insulation.

• Sign up: MassSave.com

18Solar 102: Solar for Multi-Family, Condo-owners, and Landlords

Over 20% of emissions come from electricity.Approx. 75% of housing is multifamily; 65% renter-occupied.

400

200

600

800

Solar interest in Somerville2014 survey: almost ¾ of interest came from multi-family residents

19

Condo Multi-Family (1-4 units)

Multi-Family (4+ units)

Single Family0

20406080

100120

96 (34%)109 (38%)

4 (1%)

75 (26%)

If you own, what type of home do you own?

Solar 102: Solar for Multi-Family, Condo-owners, and Landlords

SOLARIZE SOMERVILLEMary ManganVolunteer Solar Coach

Solarize Goals

• Increase adoption of solar power in our community• Gather the neighbors into a group, so pricing is reduced

Savings typically20%-25%

Compared to MA state averages

Solarize Selection

• Office of Sustainability and Environment

• Housing programs

City Process

• City goal: 100 homes• SolarFlair goal: 200!

Residents Wanted Options• Outright ownership• MassSolarLoan• Power Purchase Agreement (PPA)• Donation to a community purpose

Your Mission

• Research• Tell your neighbors• Stay tuned for more events

Special Event for Multi-family Issues

• Net metering: one meter? More?• Schedule-Z for virtual net metering to other accounts

Our house: 1 net meter + “virtual” net meter

My account = has the net meterMy bill = $0 (I used 204 kWh)(there is a $6.43 delivery charge)1% of production credited to me(this case $8.56 credit)

Housemate = “virtual” net meter via the Schedule-Z formHis bill = credit of $211.2499% of production credited to him

Production: 1349 – 1145 = 204 kW

Sustainaville Website for Info + Contacts

www.somervillema.gov/solarize

Installing Solar Energy forCondominiums & Multi-Family Homes

Zapotec Energy, Inc.

30

Racking Solar Panels Inverter

Solar Panel Inverter “Net” MeterElectrical Panel

Grid

Solar PV System Key Components

31

• Kilowatt-hour (kWh) is the billing unit - 100 watt light bulbs on for 10 hours = 1 kWh

• Cambridge and Somerville residents pay about 22 cents per kWh

• A $100 average monthly bill is about 500kWh per month or 6,000 kWh per year

With inflation*, a $100 monthly bill is about $34,000 over 20 years!

*Assumes 3.5% annual inflation

Utility Bill 101

Example 1:

Example 2:

What to Look for in Your Condo Doc

Zapotec Energy, Inc.

The Master Deed may give specific roof rights to one unit owner:

What to Look for in Your Condo Doc

Zapotec Energy, Inc.

Energy CenterZapotec Energy, Inc.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

200

400

600

800Solar Production = Usage

kWh

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

100200300400500600

Solar Production < Usage

kWh

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

200400600800

1000Solar Production > Usage

kWh

Zapotec Energy, Inc.

• Net Metering: When your PV system produces excess kWh, the utility compensates you with monetized credit that roll over onto your next bill. These credits can be transferred to other accounts in the same utility load zone.

• Complete Schedule Z form to transfer net metering

credits with• Tenants or condo owners• Family or friends in the same Eversource territory

Net Metering with Schedule Z

Zapotec Energy, Inc.

NEMA Load Zone

Zapotec Energy, Inc.

Click here for a complete Schedule Z

Net Metering with Schedule Z

Zapotec Energy, Inc.

Net Metering with Schedule Z

Click here for a complete Schedule ZZapotec Energy, Inc.

Does the landlord live in one of the units?

Is there a common meter in the building?

Case #1

Case #3

Case #2NO

YES

NO

YES

Multi-Family Flow Chart

Zapotec Energy, Inc.

Are all trustees interested in owning the PV system?

NOYES

YESIs more than one trustee interested in owning the PV system?

Do you want to install a shared system?*

YES

NO

Case #6 Case #7

Case #4

Case #5

* See Case #6 to learn more about the benefits of a shared system

Condominium Flow Chart

Zapotec Energy, Inc.

Example of Case #7• A two-member HOA

• Mutual agreement for installation• No common meter, two unit net

meters• Installed two separate PV systems• Plan to amend condominium

documents

Solar PV Installations – Cushing Street

Zapotec Energy, Inc.

Solar PV Installations – Cushing Street

Zapotec Energy, Inc.

Questions?Contact our Multi-Family Solar Advisors:

Abby Barnicle, Office Operations ManagerZapotec Energy, Inc.Email: barnicle@zapotecenergy.comTel: (617) 547-5900 ext. 200

Aaron King, E.I.T., Solar Design EngineerZapotec Energy, Inc.Email: king@zapotecenergy.comTel: (617) 547-5900 ext. 204

Zapotec Energy, Inc.

CASE #1: LANDLORD’S UNIT CONNECTION

• Interconnect the solar PV system to the Landlord’s unit meter

• If there is excess generation, complete a Schedule Z form with other unit dwellers, or family/friends in the same Eversource territory to be able to transfer net metering credits

• System owner files with the IRS for the Federal Investment Tax Credit (ITC)

• System owner collects SRECs, receive state tax credit• Financing Options: PPA, Mass Solar Loan, Lease, Cash

Purchase

Return to flow chartZapotec Energy, Inc.

CASE #2: COMMON METER CONNECTION

• Interconnect the solar PV system to the common meter• If there is excess generation, complete a Schedule Z form with

other unit dwellers, or family/friends in the same Eversource territory to be able to transfer net metering credits

• Adjust agreements with tenants to allow for raise in rent (or a separate compensation agreement), quantifying the savings from solar

• System owner files with the IRS for the Federal Investment Tax Credit (ITC)

• System owner collects SRECs, receive state tax credit• Financing Options: PPA, Mass Solar Loan, Lease, Cash

Purchase

Return to flow chartZapotec Energy, Inc.

• Contact Eversource to install a new net meter for the PV system• Interconnect the solar PV system to the new meter• If there is excess generation, complete a Schedule Z form with

other unit dwellers, or family/friends in the same Eversource territory to be able to transfer net metering credits

• Adjust agreements with tenants to allow for raise in rent (or a separate compensation agreement), quantifying the savings from solar

• System owner files with the IRS for the Federal Investment Tax Credit (ITC)

• System owner collects SRECs, receive state tax creditFinancing Options: PPA, Mass Solar Loan , Lease, Cash Purchase

Return to flow chart

CASE #3: NEW METER INSTALLATION

Zapotec Energy, Inc.

• Install a single PV system to benefit the condo association

• Clarify roof rights in condo documents• Interconnect the PV system to the condo’s common meter or

install a new net meter if there is not already a common meter • Net meter any excess production using Schedule Z• SREC revenue will be collected by the condo association • Consult tax professionals for dividing Federal Investment Tax

Credit (30%) and State Tax Credit ($1,000)• Financing Options: Cash Purchase, Lease/PPA, Mass Solar

Loan

Return to flow chart

CASE #4: ASSOCIATION OWNED

Zapotec Energy, Inc.

CASE #5: SINGLE UNIT, SINGLE SYSTEM OWNER

• Install a single PV system to benefit one unit owner in a condo

• Clarify roof rights in condo documents• Interconnect at the PV system owner’s unit meter• Transfer excess net metering credit to anyone in utility load

zone• System owner collects SRECs, receives federal and state tax

credit• Financing Options: Cash Purchase, PPA/Lease, Mass Solar

Loan

Return to flow chartZapotec Energy, Inc.

CASE #6: SHARED SYSTEM OWNERSHIP

• Install a single PV system to benefit participating unit owners within the condo

• Clarify roof rights in condo documents• Apply and install a new net meter through Eversource• Interconnect the solar PV system to the new meter• Distribute excess net metering credits amongst participating

unit owners• Consult tax professionals for division of the ITC, SRECs, and

State Rebate• Financing Options: Cash Purchase, Lease/PPA, Mass Solar Loan

Return to flow chartZapotec Energy, Inc.

• Install multiple PV systems to be separately owned by participating unit owners

• Clarify roof rights in condo documents• Install one solar PV system for each participating unit owner,

each interconnected to the respective unit meter • Choose an account to receive retail net metering credit rate• Participating system owners separately collect SRECs and file

for Federal and State tax credits• Financing Options: Cash Purchase, Mass Solar Loan,

Lease/PPA

Return to flow chart

CASE #7: SEPARATE SYSTEM OWNERSHIP

Zapotec Energy, Inc.

• Projects in any Massachusetts utility territory (IOU or MLP) are eligible. Projects can be new installations for additions to existing systems.

• Homeowner eligibility includes owners of the following types of residential property:

• Single-family homes• Individual condominiums and townhomes, with the

homeowner association’s written approval• Owner-occupants of residences with up to three units.

Are You Eligible for the Mass Solar Loan?

• Minimum requirements to qualify for a Community Shared Solar (CSS) project include, but are not limited to, the following:

• Participants must demonstrate a direct ownership stake in a solar project as net metering off-taker of 25 kW or less

• Participants must demonstrate a direct ownership stake in solar project through an LLC, cooperative, condo association, or other collaboration subject to MassCEC approval

• Project must meet Mass Solar Loan program technical eligibility criteria • For projects larger than 100 kW DC, the definition of Community Shared Solar

Generation Unit as contained in the RPS Class I regulation shall determine eligibility as a CSS project under the Program.

• For projects sized 100 kW DC or less, all participants must receive net metering credits or electricity from the project in shares of 25 kW DC or less

• Participating lender must be qualified under the Mass Solar Loan Program• The project CSS participant need not be a homeowner, but must meet

requirements in Program Manual and Lender underwriting criteria

Mass Solar Loan and CSS Projects

Mass Solar LoanPresented by:

Albert Pinho, Vice President of Lending

What is the Mass Solar Loan? Initiative in partnership with the Massachusetts

Department of Energy Resource and the Massachusetts Clean Energy Center (MassCEC).

Low interest loan to finance the purchase and installation of eligible solar panel projects.

Terms up to 20 years Borrow $5,000 to $60,000 Rates as low as 1.00% APR*. Rate dependent on

credit worthiness, term and loan amount. Up to 12 months of interest-only payments during

installation, followed by regular monthly payments after system is fully operational.

Borrowers with low or medium household income may qualify for direct up-front payments of up to 30% of the cost of the solar panel system.

*APR=Annual Percentage Rate

Type of Loan The Solar Loan may be unsecured, secured by a

UCC1 lien on the solar panel system, or secured by a junior mortgage on the home.

The type of collateral and interest rate will be determined by the loan amount, the term of the loan (how many years to repay) and by the credit score of the borrowers.

Generally, loans will be unsecured, or secured by a UCC1 lien, if: Borrowers have excellent credit (scores of 720 or better) Loan is short term (10 years or less) and Loan is for moderate amount (less than $35,000).

Eligibility Solar panel systems to be purchased by the

homeowner/resident are eligible. Financing available on primary residences or

vacation homes in Massachusetts only. Solar panel systems must be connected to the

electricity distribution grid. Solar panel systems may not have previously

received incentives from the Massachusetts Clean Energy Center.

Borrowers must be eligible for and establish membership at Naveo.

Steps to Apply Receive a price quote from a pre-qualified Mass

Solar Loan installer. Select an installer and sign a solar installation

contract. Work with your installer to complete the Mass

Solar Loan technical application. Provide your tax information online (if you are

applying for income-based subsidy). Apply with Naveo Credit Union and provide us

with the technical confirmation ID# once received.

Loan Disbursement When your loan closes, Naveo advances 35% of the loan to

cover initial construction costs. Until the system is fully operational, you make interest-only

payments monthly. After your solar system is connected by your utility, your

installer files your project completion documents with MassCEC.

When the project receives a completion approval from MassCEC, we will call you to come in and complete additional loan documents.

Naveo disburses the final 65% of your loan to you and your installer.

Your regular monthly payments of principal and interest will start approx. 30 days after loan closing.

Applying at Naveo Apply for a Solar Loan online at naveo.org/solar

You can apply for pre-approval before you receive your Technical Confirmation ID#.

Apply via phone by calling: 617-702-5101 with Elizabeth Cabral

Questions?Elizabeth Cabral 617-702-5101 ECabral@Naveo.orgAlbert Pinho 617-702-5113APinho@Naveo.org

www.naveo.org/solar

Get Started Today!www.SunnyCambridge.org

www.somervillema.gov/solarize

Zapotec Energy