NEW STUDY: BENEFITS OF SOLAR HOT WATER FAR OUTWEIGH COSTS TO STATE
Industry, Environmentalists, Legislators Call for Rollout of State Rebate Program
FOR IMMEDIATE RELEASE: January 27, 2009

To download the report: calseia-report_swh-value-proposition2

Sacramento – A new study released by the California Solar Energy Industry Association (CALSEIA) quantifies the value of solar water heating and demonstrates how consumer rebates will pay for themselves many times over in the form of energy savings, cleaner air and economic development. Industry leaders, environmental groups and policy makers called on the California Public Utilities Commission to immediately rollout a statewide consumer rebate program created in 2007 by the Solar Water Heating Efficiency (AB 1470, Huffman).

“This study demonstrates that the state will benefit from a robust solar water heating industry in California,” said CALSEIA Executive Director, Sue Kateley. “For every 40 cents invested in solar water heating technologies, ratepayers will conservatively reap between 90 cents and $3.50 in energy, health impacts, greenhouse gas reductions, and job creation.”

The study, The Value Proposition of Solar Water Heating in California, is the first of its kind in quantifying the value of reducing California’s dependence on natural gas to heat water for homes and businesses. In California, natural gas used for water heating accounts for 38% of the more than 5,000 million therms of residential natural gas consumed each year in California. By reducing the consumption of natural gas in a typical home by up to 50%, solar water heaters can make a significant contribution to the state’s greenhouse gas goals and energy independence goals, all while bringing more jobs and spurring economic development.

“Solar water heating is an extremely powerful, yet underutilized renewable energy resource in California,” said Assembly member Jared Huffman, author of AB 1470. “By launching a statewide rebate program, California can make solar water heating a mainstream energy technology for all Californians to enjoy.”

One of the major benefits of solar water heating technologies is their ability to reduce the state’s greenhouse gas emissions. According to the California Air Resources Board, implementing AB 1470 and installing 200,000 solar hot water systems by 2017 will reduce more than 100,000 tons of global warming pollution each year.

In comments filed in 2008 at the California Public Utilities Commission, Pacific Gas and Electric stated that, “PG&E believes SWH technology can help deliver material and measurable reductions in green house gas (GHG) emissions. This could help contribute to the AB32 goal of reducing green house gas emissions to 1990 levels by 2020.”

 “CALSEIA’s report provides helpful information about the value of solar hot water that CPUC staff can review as we consider expanded solar hot water incentives under  AB 1470,” said Molly Tirpak Sterkel, project supervisor for the California Solar Initiative at the California Public Utilities Commission.
As part of its efforts to implement AB 1470 and establish the State’s leadership on solar hot water, the CPUC initiated a solar hot water pilot program in San Diego in 2007. The CPUC’s evaluation contractor recently released an interim evaluation of the pilot.  “The  interim evaluation finds that a statewide solar hot water incentive program can help address the barriers that must be overcome to facilitate widespread commercial adoption of solar water heating systems, including costly local permits, initial system cost, lack of customer awareness of current technology and its benefits, and a shortage of experienced installers,” said Sterkel.
“Investing in solar power is a no-brainer in California,” said Bernadette Del Chiaro, Clean Energy Advocate with Environment California, sponsors of AB 1470. “California should waste no time in jumpstarting a mainstream market for this promising technology.”

California is not the only state considering major investments in solar water heating technologies. Beginning next year, solar water heating will be mandated on all new homes in Hawaii. Despite recent progress, the United States ranks last in solar water heating installed capacity, behind China, Europe, Australia, New Zealand, Albania, Israel, Mexico, South Africa and Japan.

A typical solar water heating system consists of a 40 square foot panel mounted on the roof, a storage tank for the solar-heated water, a low-speed pump, and a controller to activate energy collection. Some systems are configured in a manner that places the storage tank above the solar panel, which eliminates the need for a pump. The solar panels and systems are rated for performance and durability by the Solar Rating Certification Corporation, and independent testing organization. Solar Water Heating Systems qualify for Energy Star Ratings.

• Natural Gas Use Reduction. California uses 5 billion therms of natural gas for water heating - roughly 38% of all of the residential natural gas consumed each year in.   When AB 1470 is implemented California will save 26 million therms of natural gas every year with 200,000 solar water heaters. If the use of Solar Water Heating is expanded to 1.75 million installations, California will save 1.2 billion therms per year.

• Greenhouse Gas Emission Reduction. When AB 1470 is implemented, California will reduce Greenhouse Gas emissions by 0.14 million metric tons. Solar water heating will also reduce of 600 pounds per day each of lung-damaging NOx emissions and PM2.5 as well as other unhealthy emissions. Californians can be part of the solution to addressing Climate Change and help reduce public health costs from harmful emissions.

• Job Creation.  200,000 Solar Water Heater installations will require up to 32 hours of labor per installation. The statewide median annual wages for labor related to installing a solar hot water system range from 31,200 to 83,200 per year.  Implementing AB 1470 will create good paying jobs that will be spread throughout communities in California.

• Lagging the rest of the World. In a survey of 48 countries, the United States is last in its use of solar thermal solar thermal (including Austria, Germany, China, Taiwan, Japan, Brazil, South Africa, and Switzerland).

The study can be downloaded at www.calseia.org

The California Solar Energy Industry Association (CALSEIA) was founded in 1977. CALSEIA’s mission is to expand the use of all solar technologies in California and establish a sustainable industry for a clean energy future. CALSEIA’s members include solar thermal and solar electric companies actively doing business in California, including: manufacturers, distributors, installers, designers, architects, consultants, and utilities.
 

 

SOLAR INDUSTRY SUPPORTS LOS ANGELES SOLAR PLAN, EXPRESSES CONCERNS
JANUARY 19, 2009

Download position paper: calseia-position-on-los-angeles-solar-proposal_final

The proposed Los Angeles Solar Plan advocates a far reaching, comprehensive program that will increase the use of solar throughout Los Angeles to private citizens and businesses, and add utility owned solar generation. CALSEIA is generally supportive of the Los Angeles Plan but has concerns about how the plan will impact the private solar companies doing business in and around Los Angeles. CALSEIA has reviewed and discussed the plan with its proponents. CALSEIA has concerns.

The California Solar Energy Industries Association (CALSEIA) supports the expanded use of all solar technologies, including both residential and large-scale solar projects, as well as solar generation within a community (sometimes called distributed generation). Solar technologies include solar thermal, solar electric, and solar pool heating. Each of these technologies contribute to reduced demand for natural gas and electricity, reduced pollution in the community, and reducing greenhouse gas emissions. The solar industry is also creating new opportunities for jobs at all skill levels for a variety of occupations: administration, financing, installation, inventory/warehouse, etc.

1. ELEMENTS OF THE LOS ANGELES SOLAR PLAN ARE OUTSTANDING. The Plan identifies elements that would address increasing private ownership of solar equipment, workforce training, permit streamlining, increased private sector participation, financing and standard power purchase contracts, low-income/economic justice, and greenhouse gas emission reductions through solar thermal programs. If successfully implemented, this program can serve as a Blueprint for other publicly owned utilities throughout the United States. As a result, CALSEIA is committed to helping the City and the Department of Water and Power at each step of the program’s implementation to ensure its success.

2. ONE COMPONENT CREATES UNNECCESSARY HIGHER COST OF SOLAR GENERATION. One aspect of the Los Angeles plan proposes that the City build 400 megawatts of solar generation. This component envisions using City employees, within the Department of Water and Power, to install the systems. We understand that LADWP will release a financial impact study in the upcoming weeks.  This study should compare the costs of installation between the Department of Water and Power and industry to compare the cost to ratepayers, especially given that the ratepayers will bear the entire cost of installation and maintenance of the installed capacity as defined by the current plan. The long-term cost implications to the City to employ and maintain this workforce after the City has completed these projects should be assessed as well as its impact on decreasing employment opportunities for local solar business owners. Regardless of who installs, the installation and maintenance costs must be affordable to ratepayers.  CALSEIA has already provided information to the City and the Department of Water and Power which identifies mechanisms to lower these costs, and looks forward to continuing to work with the City.  (The City already requires prevailing wage rate be paid so this program component would have the effect of displacing good, private sector jobs). If this component was not implemented, it would be likely that the City would have to increase goals in other program elements – which may be a better approach.

3. INACCURATE COST COMPARISON OF ENERGY RESOURCES. The Plan includes a chart on page 7 comparing energy resource costs. While coal may be a baseload energy generation resource for the City of Los Angeles, it should not be included as a comparison against other in-basin generation. It simply is not an option for the City to build new in-basin coal generation and it is almost as likely that it will not build new in-basin natural gas generation. Therefore, it is misleading to include technologies that are not a possible option for the City. CALSEIA recommends that the chart be revised to show only the costs of generation that is possible in the basin. CALSEIA suggests that an out-of-basin generation chart be added showing true costs of new out-of-basin generation and related transmission costs from point of generation to point of delivery, factoring in transmission losses and transmission maintenance, environmental and greenhouse gas emission costs.  This will be helpful for citizens assessing the rate impacts to understand that the options are more limited than the chart suggests.

Measure B. CALSEIA takes no position on Measure B. Whether Measure B passes or fails, CALSEIA believes the City of Los Angeles will take the necessary steps to meet its commitment to using renewable energy for 20% of retail electric sales by 2010 and 35% by 2020.

CALSEIA is committed to helping the City of Los Angeles successfully implement its Los Angeles Solar Plan. Notwithstanding its concerns, CALSEIA can support the majority of the Plan and recommends the City and Department of Water & Power move forward now to implement components of the plan that are not affected by Measure B.

FOR IMMEDIATE RELEASE
SOLAR INDUSTRY PROPOSES CHANGES TO MARIN CLEAN ENERGY PROPOSAL
January 13, 2009

Download position paper: calseia-position_marin-clean-energy-plan

The proposed Marin Clean Energy Plan proposes allowing the citizens of Marin County to bypass PG&E for purposes of buying energy through a Community Choice Aggregation structure. CALSEIA has reviewed the plan and discussed the plan with its proponents. CALSEIA has concerns.

The California Solar Energy Industries Association (CALSEIA) supports the expanded use of all solar technologies, including residential, large-scale, and generation within a community (sometimes called distributed generation). Solar technologies include solar thermal, solar electric, and solar pool heating. Each of these technologies contribute to reducing demand for natural gas and electricity, reduce pollution in the community, and contribute to reducing greenhouse gas emissions. The solar industry is also creating new opportunities for jobs at all skill levels for a variety of jobs: administration, financing, installation, inventory/warehouse, etc.

1. LOCAL BUSINESSES AND JOBS COULD BE ADVERSELY IMPACTED. The business plan targets 13MW of locally-sourced solar energy by 2019.  This means that the majority of Marin’s renewable energy will not be generated in Marin County. The Marin Clean Energy proponents have suggested that, if approved, it may establish local supply targets.
2. DRAFT BUSINESS PLAN DOES NOT INCLUDE SOLAR. The underlying assumptions for the plan do not include any solar procurement. Out of 200 megawatts of renewable procurement planned by 2014, zero megawatts are assumed to be solar.
3. THE TITLE MARIN CLEAN ENERGY IS CONFUSING. Local governments may believe they are voting for a clean energy initiative when they will actually be using natural gas, not renewable energy, for much of their electricity generation. According to the plan, natural gas will provide as much as 75% of the electricity generated. This is important to the solar industry as it relates to the first two points – voters could believe that the program will use solar and will foster local jobs, when it appears that this is not likely to be the case. The only incentives for solar will be those provided through the PG&E rebate program – the same as currently exists from PG&E.

CALSEIA appreciates that Marin Clean Energy proponents have provided assurances to us, such as forming a local solar advisory council after the plan is approved to provide recommendations regarding installation sites and plans for rate structures, encourage Marin county residents and businesses to install distributed generation, and possibly create goals for renewable distributed generation.  However, CALSEIA remains concerned that the commitment to local renewable projects may not materialize.

CALSEIA recommends that the Marin Clean Energy Proposal make a firm commitment to local solar power through this plan or through alternative means.