Multi- Family Solar Event 1
Agenda 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 2
Sunny Cambridge The Year of Solar! 3
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 - 4
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 5
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! 6
Total KW Capacity Cambridge Solar Growth 5000 Total PV Capacity in Cambridge, MA 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Date 7
Solar Economics 101 5kW System, Good Solar Access, No Special Requirements 5 year payback Net savings of $30,000+ 20% return on investment 3% increased property value 20 Year Utility Bill Savings $34,000 10 Years of SRECs $15,000 20 Year Total Return $36,000 Gross Cost $7,000 ($20,000) Federal Tax Credit 30% MA Credit $1k Net Cost ($13,000) 8
SunnyCambridge.org 9
Three easy steps: Simple, online comparisonshopping solution 1. Homeowners create property profiles Specify property location Energy use System and financing preferences 2. Solar installers design systems, submit quotes Use aerial images Phone, email contact Submit quotes online via marketplace 3. Homeowners compare quotes & select one Apples-to-apples comparison of system & financing options Live decision support from solar advisors 10
Sunny Cambridge Multi-Family Solar Cushing Street 11
Sunny Cambridge Multi-Family Solar 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 12
Sunny Cambridge Multi-Family Solar 13
Sunny Cambridge Multi-Family Solar "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 14
15 Solarize Somerville: Multi-Family Buildings Solar 102: Solar for Multi-Family, Condo-owners, and Landlords August 16, 2016
Sustainability in Somerville Carbon 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 installer 16
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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 18
Solar interest in Somerville 2014 survey: almost ¾ of interest came from multi-family residents 120 100 80 60 40 20 0 If you own, what type of home do you own? 96 (34%) 109 (38%) Condo Multi-Family (1-4 units) 4 (1%) Multi-Family (4+ units) 75 (26%) Single Family 19
20 SOLARIZE SOMERVILLE Mary Mangan Volunteer Solar Coach
Solarize Goals Increase adoption of solar power in our community Savings typically 20%-25% Compared to MA state averages Gather the neighbors into a group, so pricing is reduced 21
22 Solarize Selection Office of Sustainability and Environment Housing programs
23 City Process City goal: 100 homes SolarFlair goal: 200!
24 Residents Wanted Options Outright ownership MassSolarLoan Power Purchase Agreement (PPA) Donation to a community purpose
25 Your Mission Research Tell your neighbors Stay tuned for more events
26 Special Event for Multi-family Issues Net metering: one meter? More? Schedule-Z for virtual net metering to other accounts
27 Our house: 1 net meter + virtual net meter My account = has the net meter My 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 form His bill = credit of $211.24 99% of production credited to him Production: 1349 1145 = 204 kw
28 Sustainaville Website for Info + Contacts www.somervillema.gov/solarize
Installing Solar Energy for Condominiums & Multi-Family Homes Zapotec Energy, Inc. 29
Solar PV System Key Components Racking Solar Panels Inverter Solar Panel Inverter Electrical Net Meter Panel Grid 30
Utility Bill 101 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 31
What to Look for in Your Condo Doc Example 1: Example 2: Zapotec Energy, Inc. 32
What to Look for in Your Condo Doc The Master Deed may give specific roof rights to one unit owner: Zapotec Energy, Inc. 33
Zapotec Energy, Inc. Energy Center 34
kwh kwh kwh 1000 Solar Production = Usage 500 600 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Solar Production < Usage 400 200 0 1000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Solar Production > Usage 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Zapotec Energy, Inc. 35
Net Metering with Schedule Z 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 Zapotec Energy, Inc. 36
NEMA Load Zone Zapotec Energy, Inc. 37
Net Metering with Schedule Z Zapotec Energy, Inc. 38 Click here for a complete Schedule Z
Net Metering with Schedule Z Zapotec Energy, Inc. 39 Click here for a complete Schedule Z
Multi-Family Flow Chart Case #3 Does the landlord live in one of the units? NO Is there a common meter in the building? NO YES Case #2 YES Case #1 Zapotec Energy, Inc. Click on a case to link to it directly 40
Condominium Flow Chart NO Is more than one trustee interested in owning the PV system? YES Do you want to install a shared system?* Are all trustees interested in owning the PV system? NO Case #5 YES Case #6 Case #7 YES Case #4 Zapotec Energy, Inc. Click on a case to link to it directly * See Case #6 to learn more about the benefits of a shared system 41
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: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. 42 Return to flow chart
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: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. 43 Return to flow chart
CASE #3: NEW METER INSTALLATION 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 credit Financing Options: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. 44 Return to flow chart
CASE #4: ASSOCIATION OWNED 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 Zapotec Energy, Inc. Return to flow 45chart
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: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. Return to flow 46chart
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: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. Return to flow 47 chart
CASE #7: SEPARATE SYSTEM OWNERSHIP 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: Mass Solar Loan, Cash Purchase, Lease, PPA Zapotec Energy, Inc. 48 Return to flow chart
Solar PV Installations Cushing Street 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 Zapotec Energy, Inc. 49
Are You Eligible for the Mass Solar Loan? 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. 50
Mass Solar Loan and CSS Projects 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 51
Questions? Contact our Multi-Family Solar Advisors: Aaron King, E.I.T., Solar Design Engineer Zapotec Energy, Inc. Email: king@zapotecenergy.com Tel: (617) 547-5900 ext. 204 Abby Barnicle, Office Operations Manager Zapotec Energy, Inc. Email: barnicle@zapotecenergy.com Tel: (617) 547-5900 ext. 200 Zapotec Energy, Inc. 52
Mass Solar Loan Presented by: Albert Pinho, Vice President of Lending 53
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 54
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). 55
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. 56
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. 57
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 interestonly 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. 58
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 59
Questions? Elizabeth Cabral 617-702-5101 ECabral@Naveo.org Albert Pinho 617-702-5113 APinho@Naveo.org www.naveo.org/solar 60
Get Started Today! www.sunnycambridge.org www.somervillema.gov/solarize 61 Zapotec Energy