1 / 23

Joshua Brock Environmental Specialist City of San Diego

Financial Pros and Cons of Residential Solar Installations: A Residential and Municipal Perspective. Joshua Brock Environmental Specialist City of San Diego. Outline. Background Goal of the survey and focus groups The Process The Survey Who we surveyed and who responded

aquarius
Download Presentation

Joshua Brock Environmental Specialist City of San Diego

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Pros and Cons of Residential Solar Installations: A Residential and Municipal Perspective Joshua Brock Environmental Specialist City of San Diego

  2. Outline • Background • Goal of the survey and focus groups • The Process • The Survey • Who we surveyed and who responded • Review of results and what they mean • Focus Groups • Breakdown of the 3 groups • What we learned • Bringing it all together • What this means for residents • What this means for a municipality

  3. Background

  4. Background & Goals • Department of Energy, Solar America Initiative Grant • What can the City of San Diego do to increase the penetration of Solar PV in the market • Identify challenges and barriers customers face • Find out what motivates residents to install a PV system • Examine how a PV system affects the value of a property

  5. The Survey

  6. Who Participated? • Residents and Businesses that had installed a solar PV system in the last 10 years; • 2000 surveys mailed, option to reply online or by mail; • 641 responses or about 32%

  7. The Questions • How many years have you occupied the property? • Who purchased the solar system for this property? • How did you find your solar installer? • Were you satisfied with the installation process? • What, if any, were some barriers you encountered? • Would you have installed your solar system without a rebate offered? • Did you do any energy efficiency upgrades before or in conjunction with your solar installation? • Are you more conscious of your energy use after installing your solar system? • Have you had questions or comments from your neighbors about your solar installation? • Do you feel you are saving money on your electric bill as a results of your solar installation? • Did any of your friends or relatives install a solar system due to your example? • Would you expect your solar installation to increase the value of your home? If so, by how much?

  8. What We Learned: • Personal references and Google not NPR and direct mailings; • Incentives and Tax Credits drive the market; • Perceived value of about $5,000/kW installed; • On-going training for Installers and Permitting/Inspections staff; • Residents may not understand why energy efficiency is important;

  9. The Focus Groups

  10. Who Participated • Real Estate Professionals (Sales, Appraisers, Brokers) • Municipal Permitting/Inspection Staff • Homeowners with a PV System • Solar Installers Meeting

  11. Focus Group Results • Real Estate Professionals • Market does not value PV system as high as their costs merit • Bills showing energy savings needed to value the system, but older systems are looked at as a liability • Most real estate agents do not highlight a PV system as a selling point • Municipal Permitting/Inspection Professionals • The Fire Departments role needs to be better defined • On-going training for city staff and installers needed

  12. Focus Group Results, Continued • Homeowners with a PV system • Generally very happy with system. Like having a stable bill • Want to install more but need a financial incentive to do so. • Meeting with Solar Installers • Costs of permits not an issue • Would be willing to pay more for quicker permit processing and inspection

  13. Bringing it All Together: The Residential Sector • Pro’s • Stable utility bill and protection from rate increases • TOU tariff could help reduce payback if exported kWh is properly valued • Con’s • Failure to perform meaningful energy efficiency upgrades early on could mean future upgrades increase system payback • No guarantee that a PV system will increase the sale price of your home.

  14. Example Energy SavingsSolar Only Sample Home: 1500 Sq Ft 3Bd 2Ba Location - Tierrasanta Home Value - $ 467,500 Annual Prop Tax - $ 5,049 PV System Size (AC) - 4.50 kW Energy Efficiency - None Financed Amount - $ 36,638 Loan APR - 7.00% Positive Cash Flow – Year 1 Average Monthly Savings - $ 236.55 Monthly Tax Increase - $ 288.20 30% Federal Tax Credit Loan Paid Off Replace Inverter

  15. Example Energy SavingsSolar and Energy Efficiency Sample Home: 1500 Sq Ft 3Bd 2Ba Location - Tierrasanta Home Value - $ 467,500 Annual Prop Tax - $ 5,049 PV System Size (AC) - 2.40 kW Energy Efficiency - Lighting, Insulation, HVAC, Windows Financed Amount - $ 36,433 Loan APR - 7.00% Positive Cash Flow – Year 1 Average Monthly Savings - $ 304.34 Monthly Tax Increase - $ 286.59 Loan Paid Off 30% Federal Tax Credit Replace Inverter

  16. Bringing it All Together:A Municipal Perspective Pro’s • Permit costs are not an issue from the customers perspective • AB-32 and local Climate/GHG goals • Green Jobs & more disposable income Con’s • We may be missing out on $$! • Rebates/Incentives still driving the market • Undertrained permitting & inspection staff plus inexperienced installers professionals can cause harm

  17. Thanks! Joshua Brock Environmental Specialist City of San Diego 858-492-5033 Jbrock@sandiego.gov

More Related