Agenda

1. Developing a Solar Hot Water Deployment ProgramLessons From the Toronto Solar Neighbourhoods InitiativeApril 28, 2010 - Rob McMonagle, Toronto Atmospheric Fund

2. Agenda • Toronto’s Interest in Solar • Solar Neighbourhoods Backgrounder • Overcoming the Regulatory Challenges • Learning by Doing • Cost of Solar • Marketing • Opportunities

3. The Reason to Go Solar (Toronto’s Perspective) Toronto Solar Neighbourhoods Initiative

4. Why Toronto is Going Solar? • The main drivers • Climate Change • The Local Economy • Reduce our energy dollar outflow • Local job creation

5. Climate Change will Increase the Number of Hot Days in Toronto 1. A Scan of Climate Change Impacts on Toronto – Clean Air Partnership

6. Energy Usage in Toronto(70% Natural Gas and Growing) Total energy consumption = 72,000,000,000 kWh/year Note: Deep Lake Water Cooling provides 89,000,000 kWh/year (0.1% of total) City of Toronto Electricity Natural Gas City of Toronto

7. Residential Hot Water’s Role in CO2 Reductions • It is the single largest reducer of CO2 that a homeowner can make • Plus it is highly visible (unlike caulking or weather-stripping) • Homeowners want to be seen as Green – solar is the new BMW in the driveway • SDHW Systems can provide 0.4 – 0.7 t CO2/year reduction in Toronto (but more in high carbon energy jurisdictions) • Over system life (20 years) = 8 - 15 t CO2

8. How Much is Toronto Spending on Energy? (A: $4.5 billion per year)and where it goes… Natural Gas $1,760,000,00 Electricity $2,690,000,000 Spent by Energy Utilities in Toronto $??? Dividends from Energy Firms $??? City of Toronto (corporate) Energy Bill (2005): $232,000,000 Toronto Energy Bill (2005): $1,700/capita Head offices of Energy Firms $???

9. Economic Considerations on Local Deployment of Solar • Every GJ/kWh saved by solar (and other renewables) reduces the outflow of energy dollars from the local economy • Solar water heating employees 10xs as many workers per energy unit than the fossil fuel industry – and the jobs are in the local economy • And... • Will solar prices go up or down in the future? • Will fossil fuel prices go up or down in the future?

10. Solar Neighbours and Neighbourhoods Toronto Solar Neighbourhoods Initiative

11. Toronto’s Community Solar Initiative • Prior to 2007 30-50 systems were installed in Toronto annually (without building permits) • Action item from the Climate Change Plan (2007): “develop a pilot residential solar domestic hot water program” • The Toronto Solar Neighbourhoods Initiative was developed to identify challenges and support barrier resolutions • Target of 100 system sales in one neighbourhood

12. Why “Neighbourhood” Solar? • Early adoption needs high profile • Focusing on one community allows us to allocate the resources needed to build that profile • “A solar system on every street” • Need to get the comfort level up of homeowners • “No – you’re not alone” • Get the community involved • Take advantage of social marketing

13. Residential Systems Sold in Canada • Based on annual survey by NRCan sales of residential systems now about 800-1,200 systems per year • Solar Neighbourhoods (2009) – 100 systems in one ward • It this was replicated across Toronto – 4,000 systems/year • But using Austrian levels of installation – 2,200 installed in just the one ward and 90,000 in Toronto!

14. Toronto Solar Neighbourhoods Pilot– the Highest Density of SDHW Systems in Canada

15. Canadian Financial Support for Solar Hot Water has been Growing Support has grown rapidly over the past two years. In 2008 total was $500 Peaked May-Dec 2010 at $4,400 However, there has been a dramatic reversal in last few months with the cancellation of the ecoENERGY for Homes program

16. Government Support is now Uncertain

17. Overcoming the Regulatory Barriers Toronto Solar Neighbourhoods Initiative

18. Regulatory Challenges of Solar • Solar industry has been operating outside the regulatory framework • The small size of the solar industry has kept it from adequately reviewing and advocating for regulatory changes • Regulatory challenges have kept the industry underground doing “guerrilla solar” since the 1980s • Lack of solar issue knowledge in regulatory sector agencies plus an industry that has not self advocated for regulatory changes until recently

19. Regulatory Solutions

20. Toronto’s Solar Documents

21. The Cost of Regulatory Compliance in Toronto - Before

22. The Cost of Regulatory Compliance in Toronto - Now

23. Toronto Building is getting Better at Issuing Building Permits

24. Learning from the Neighbours Toronto Solar Neighbourhoods Initiative

25. What is the Price of a System? Contractor

26. How Should Governments Support SDHW Sales? • Offered 2 options: • Interest Free Loan • 10 years, <$10,000 • no down payment • $1,000 up front support • Paid to contractor • “No waiting” • 70% took the loan

27. Overcoming the “1st on the Block” Syndrome • 36% of sales occurred in clusters of 2, 3 or 4 projects on the same block

28. Important Factors in Selecting a Contractor

29. Drivers to Purchasing a System

30. How Can Low NG Prices be Good for SDHW Deployment?

31. Potential of fuel switching to electricity This moves SDHW into electrical load displacement It’s Now Cheaper to Heat Water with Electricity

32. Early Learnings for Solar Neighbourhood • Pilot is now complete • Report is now being prepared along with recommendations • Key learnings on: • Regulatory challenges • Building industry capacity • Marketing • Report Available early June

33. City of Toronto Contacts Rob McMonagle SolarCity Program Manager Toronto Atmospheric Fund 416-393-6371 rmcmonagle@tafund.org Solar Neighbourhoods Information Line 416-393-6370 www.solarneighbourhoods.ca Solar Permits www.SolarPermits.ca