Merrian Fuller, UC Berkeley Blair Hamilton, Efficiency Vermont & - - PowerPoint PPT Presentation

▶
merrian fuller uc berkeley blair hamilton efficiency
SMART_READER_LITE
LIVE PREVIEW

Merrian Fuller, UC Berkeley Blair Hamilton, Efficiency Vermont & - - PowerPoint PPT Presentation

Aug 25, 2022 409 likes •615 views

Merrian Fuller, UC Berkeley Blair Hamilton, Efficiency Vermont & VEIC Residential EE Financing Case Studies Residential EE Financing Case Studies Conventional On-Bill Financing AFC Firsts Home Energy Loan (PA) BC Hydro (terminated)

slide-1
SLIDE 1

Merrian Fuller, UC Berkeley Blair Hamilton, Efficiency Vermont & VEIC

slide-2
SLIDE 2

Residential EE Financing Case Studies Residential EE Financing Case Studies

  • AFC First’s Home Energy Loan (PA)
  • City of Cambridge (new)
  • BC Hydro (terminated)

Fi t El t i C ti (AR)

On-Bill Financing Conventional

  • City of Cambridge (new)
  • Efficiency Vermont
  • KEMA’s California EE Loan Fund

(terminated)

  • First Electric Cooperative (AR)
  • Manitoba Hydro
  • NW Natural Gas (terminated)

(Portland) ( )

  • MN Center for Energy and

Environment

  • NYSERDA's Energy $mart Loan Fund
  • NYSERDA's HPwES Loan Program

(Portland)

Tariffed Installation Program (TIP) w/ On-Bill Repayment

  • NYSERDA s HPwES Loan Program
  • Nebraska Energy Office
  • Sacramento Municipal Utility District

(SMUD)

  • Maui Electric Company
  • Midwest Energy (KS)

( )

  • Vermont Gas Systems
  • Viewtech Financial Services

Property-Assessed Clean Energy (PACE)

  • New Hampshire Electric Coop

(terminated)

2

  • City of Berkeley (new)
slide-3
SLIDE 3

Tariffed Installation Program (TIP) Tariffed Installation Program (TIP)

$$ Upfront $$ Repaid on

  • Creates approval
  • Applies for financing

$$ Repaid on utility bill process and criteria

  • Provides upfront $$
  • Attaches repayment

bli i h

  • Identifies work & contractor

based on utilities’ criteria

  • Repays financing on utility bill

R bli i

3

  • bligation to the meter
  • Repayment obligation

transfers with tenancy

slide-4
SLIDE 4

Clean Energy Assessment District Clean Energy Assessment District (CEAD) ( )

$$ Upfront $$ Repaid

  • Creates financing district
  • Identifies work & chooses

$$ Repaid

  • n tax bills

& approval process

  • Provides upfront $$
  • Attaches repayment

bli i h b ildi contractor

  • Repays financing as a line

item on the property tax bill R bli i 4

  • bligation to the building
  • Repayment obligation

transfers with ownership

slide-5
SLIDE 5

CEAD Progress CEAD Progress

Enabled in….

▪ California Ca

  • a

▪ Colorado ▪ New Mexico ▪ Virginia ▪ Vermont ▪ Maryland ▪ Hawaii

C tl b i d i O

Currently being pursued in Oregon,

Nevada, Arizona, Texas, New York, Wisconsin and Montana Wisconsin, and Montana.

slide-6
SLIDE 6

Law: Mello-Roos (special tax district) $$: Issuing “baby muni bonds” purchased $$: Issuing baby muni bonds purchased

by a financial partner who can package and resell

Terms: 7.75% for 20 years (varies based on

10-year Treasury plus 3.25%) y y p )

Status: $1.5 claimed in 9 minutes for the

solar-only pilot round, basic energy and water efficiency improvements required http://www.berkeleyfirst.renewfund.com/ 6

slide-7
SLIDE 7

Law: HB 08-1350 (assessment district) $$: Collecting applications and will issue $$: Collecting applications and will issue

a bond this month

Terms: TBA (max 8.75%), 15 years

Terms: TBA (max 8.75%), 15 years

Status: 1,700 people attended public

workshops in March, $9+ million p claimed by 500+ applicants in April; projects include a wide range of energy efficiency and renewable energy measures li l www.climatesmartloanprogram.org 7

slide-8
SLIDE 8

Law: Redefined “municipal solid waste” $$: Used existing municipal solid waste

$$: Used ex st g u c pa so d aste fund as revolving loan pool

Terms: 3% term varies based on

expected savings

Status: 98 homes have claimed over

$670K in first 6 months for air sealing, insulation, and replacing space heating d h t t t t and hot water systems; est. average savings of 28% per home http://ligreenhomes com http://ligreenhomes.com 8

slide-9
SLIDE 9

150+ E Effi i Fi i 150+ Energy Efficiency Financing Programs in the US… g Success!! Our work is done.

Most programs reach p g less than 0.5% of their potential participants

9

p p p each year

slide-10
SLIDE 10

“Not worth the effort” Lack of convenient, actionable information Uncertainty about the energy savings Uncertainty about the energy savings Few comprehensive service providers Split incentives High upfront cost Others Others…

10

slide-11
SLIDE 11

Lesson: Program Design Details Matter Lesson: Program Design Details Matter

Quality assurance Choose the right

measures for deep p comprehensive savings

Efficiency before Renewables?

Efficiency before Renewables?

Increased rewards Increased rewards

for increased efforts

Education

11

slide-12
SLIDE 12

Lesson: The Role of Contractors Lesson: The Role of Contractors Matter

Contractors are the best

l f ( ) sales force (NY, PA, VT) Ti & i d t

Time & money required to

engage contractors

More training needed

12

slide-13
SLIDE 13

Lesson: Scale Matters Lesson: Scale Matters

Higher volume

programs will be p g significantly lower cost per project

Streamlined process

both for homeowner both for homeowner & contractors k d

Marketing and

  • utreach are KEY for

long term success long-term success

13

slide-14
SLIDE 14

Lesson: Messages and Messengers Matter Lesson: Messages and Messengers Matter

Engage local groups

that already have trust that already have trust & connections

More dynamic,

appealing messages are appealing messages are needed

Package offerings -

make it simple for p customers

14

slide-15
SLIDE 15

Most Important: Financing needs to

N d t dd li it

be available to those who need it

Need to address limits on

credit

Be aware of who is left out

Low/moderate income

/

Renters

S ti

Some options:

Loan guarantees Lower interest rates Lower interest rates Alternative credit measures Additional rebates Pay for handholding Guarantee savings

15

slide-16
SLIDE 16

Most Important: Financing must d h i fi support deep, comprehensive retrofits

Longer terms (~10-30 years) Secured to property, not individual

p p y,

Mortgages

Time of sale ▪ Time of sale ▪ Refinancing

Clean Energy Assessment Districts Tariffed Installation Program

g

16

slide-17
SLIDE 17

Contact: M i F ll i f ll @ il Merrian Fuller, merrianfuller@gmail.com Blair Hamilton, Bhamilton@veic.org Vermont version of the report: www.veic.org/ResourceLibrary.cfm g y PACE Seminar materials and How To Guide (in June): rael.berkeley.edu/financing

slide-18
SLIDE 18
slide-19
SLIDE 19

Law: AB 811 (assessment district) $$: Used general revenue funds to start,

$$ g , then Redevelopment Authority bonds, now looking for additional funds

Terms: 7% up to 20 years Status: $7.5 million claimed since Nov

2008 l h f 206 li ti h lf 2008 launch; of 206 applications over half EE (AC upgrades, pool pumps, insulation) but 70% of funds to solar all but 3 are but 70% of funds to solar, all but 3 are residential projects http://www.cityofpalmdesert.org/Index.as p // y p g/ px?page=484 19

slide-20
SLIDE 20

Law: AB 811 (assessment district) $$: Using County funds to start, may

sell bonds in the future; up to $100M available this year % 20

Terms: 7% up to 20 years Status: $2.1 million claimed since

M h 2009 l h t ffi i March 2009 launch; water efficiency, energy efficiency, and renewable energy projects allowed energy projects allowed www.sonomacountyenergy.org 20