Sunny Cambridge – The Year of Solar!
Agenda
City of Cambridge
10 minutes
Introduction
• City goals / GEUP • Solar goals • Housing stock
EnergySage
10 minutes
Solar 101
• How solar works • Solar economics • SRECs
Naveo Bank
10 minutes
Solar Loans
• Type of loan • Term/structure/rate • Application process
EnergySage
10 minutes
Sunny Cambridge Program
• • • •
Q&A
Program website Creating an account Online quotes Resources
15 minutes 2
Introduction
3
City Greenhouse Gas Emissions 17%
1%
18%
Residential Commercial/Industrial Transportation Waste
64%
Over 80% of GHG emissions are from building energy use, and about 2/3 is from the commercial, institutional, and industrial sectors; existing building stock is key
NET ZERO EMISSIONS REDUCTION MODEL 1,200,000
1,000,000
Energy Efficiency Reductions
800,000
600,000
400,000
200,000
-
70% REDUCTION BY 2040
Renewable Energy Additions
Cambridge Energy Alliance
Engage owners of existing buildings in all sectors to make efficiency improvements and install renewable energy
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 Map The 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!
Solar 101
9
Solar Panel Systems – Key Components Racking
Solar Panel
Solar Panels
Inverter
Electrical Panel
Inverter
Bi-Directional Meter
Grid 10
Utility Bill 101 • Kilowatt-hour (kWh) is the billing unit 100 watt light bulbs on for 10 hours = 1 kWh (50 hours for a 100W LED!) • Cambridge 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! 11 *Assumes 3.5% annual inflation
Solar Economics 101 5kW System, Good Solar Access, No Special Requirements 10 Years of SRECs $15,000
5 year payback
Net savings of $30,000+ 20% return on investment 3% increased property value
Gross Cost ($20,000)
$7,000
20 Year Utility Bill Savings $34,000
20 Year Total Return $36,000
Net Cost ($13,000)
Federal Tax Credit 30% MA Credit $1k 12
Solar Renewable Energy Credits (SRECs) What is an SREC? It is a measure of solar energy production that was created by the DOER to encourage solar energy adoption and investment by improving the economic returns to system owners
• 1,000 kWh = 1 minted SREC • A market-based commodity purchased by utilities (and others) • Minted on a quarterly basis, no fractional minting • Current market price is $270 • Option to sell as minted, at a target price or at annual auction 13
Solar Loans
14
What is the Mass Solar Loan?
Initiative of the Massachusetts Department of Energy Resource and the Massachusetts Clean Energy Center (MassCEC) in partnership with banks.
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
3.25% APR* fixed rate; as low as 1.75% APR* on projects for Cambridge homeowners
Up to 12 months of interest-only payments during construction, 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
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.
Loan Disbursement
When your loan closes, bank 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.
Bank 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.
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 a Mass Solar Loan Lender and provide with the technical confirmation ID# once received.
To apply for a Solar Loan online with 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
Borrowers must be eligible for and establish membership at Naveo.
Sunny Cambridge Program
19
SunnyCambridge.org
20
Three easy steps: Simple, online comparisonshopping solution
1. Homeowners create property profiles
2. Solar installers design systems, submit quotes
• Specify property location
• Use aerial images
• Energy use
• Phone, email contact
• System and
• Submit quotes online
financing preferences
via marketplace
3. Homeowners compare quotes & select one • Apples-to-apples
comparison of system & financing options • Live decision support
from solar advisors 21
Why compare quotes online? Installer 1
Installer 2
Installer 3
Standardized assumptions and financial metrics Equipment quality Installer experience and reviews Simplified decisionsupport Solar Advisor assistance
22
A special process for complex properties – Introducing the “Multi-family Solar Consultant”
Properties with more complex ownership structures will qualify for a consultation with Zapotec Energy Each qualified property will receive up to 6 hours of consultation – phone, email and in-person meetings The purpose is to determine the feasibility of solar and to gather all needed information to get the project “solar ready” for online quotes After the consultation and approval, an info package will be added to your EnergySage property profile to help installers develop quotes
The normal online comparison-shopping approach follows with assistance provided by EnergySage Solar Advisors 23
Q&A
24
Get Started Today! WWW.SunnyCambridge.org 888-838-4638
Zapotec Energy
