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Past lessons shape new Palo Alto solar hot water program
Palo Alto, Calif., residents who install clean, efficient solar water heaters can look forward to saving on their natural gas bills—and to getting a check from the City of Palo Alto Utilities (CPAU). The municipal utility is now offering a solar water heater (SWH) rebate to residential, commercial and industrial customers. Residential systems may receive a rebate of up to $1,500, based on the estimated performance. Larger systems for commercial and industrial customers are eligible for up to $75,000, calculated by multiplying three variables:
The program is set up for the rebate to go directly to the contractor, who applies it to the customer's total installation bill. CPAU launched the rebate program in May, ahead of a new state law requiring natural gas utilities to offer solar water heating incentive programs. If that seems like quick work, it is because the utilities department was already considering the program as part of its 10-year energy-efficiency portfolio plan. "We already knew it was great idea," said Utilities Account Representative Amanda Cox, who is managing the program. Palo Alto offered a SWH rebate in the 1980s that gave a discounted billing rate to residents with the units. The old incentive is being phased out in favor of the one-time rebate based on the system's energy savings rating. "The old program had run its course," Cox stated. "It taught us a lot that we incorporated into the current program." Experience makes the differenceBased on those lessons, CPAU built several safeguards into the program design to ensure success:
Annie Henderson of the California Center for Sustainable Energy (CCSE) summed up the goal of those measures. "We learned from those early systems that solar water heaters deliver highest customer satisfaction if they are properly engineered and installed." Palo Alto contracted with CCSE to make sure that happens and to provide coordination and technical support. The independent nonprofit is operating a similar pilot program for the state in San Diego. Cox pointed to CCSE's experience as a major reason for the contract, noting, "They know what works." "The San Diego pilot helped us to discover key points about installation and inspection that we can apply in Palo Alto," Henderson acknowledged. Working with local industryCCSE is presenting the mandatory, one-day training contractors must complete to be added to CPAU's list of approved vendors, a prerequisite for receiving the rebate. To recruit contractors for the pool, Cox talked to professionals from the California Solar Energy Industries Association. She compiled a list of local solar businesses from Web sites like Find Solar, and sent an e-mail inviting them to participate in the classes. The vendor response was surprisingly strong. CCSE has held three training sessions, each one more heavily attended than the last. "We aren't planning to do any more until 2009, but we may schedule one sooner to accommodate the demand," said Henderson. So far, about 150 contractors have taken the class, and 14 vendors have completed all the eligibility requirements. Henderson explained that some companies send sales people and customer service representatives along with installers. There are also some repeat enrollees. "Some just want to learn more about SHW systems," added Cox. In addition to taking the class, contractors must fill out a participation application; provide standard warranty documentation; and hold general liability, workers' compensation and auto insurance. Cox observed that a fringe benefit of the program will be a better-trained, more competitive, local pool of solar technicians. Training sets installation standardThe core of the classes is the OG-300, Operating Guidelines and Minimum Standards for Certifying Solar Water Heating Systems, developed by SRCC. Since 1980, the SRCC has provided third-party testing and certification for solar collectors and complete water heater systems. "Some of those first installations really suffered for lack of standardization," Henderson admitted. A system must qualify under the OG-300 standard to earn CPAU's incentive. Collectors must also have SRCC certification for the Federal tax credit. CPAU uses the OG300 rating for estimated performance to calculate the rebate the customer will receive. The higher the performance number, the larger the incentive, said Cox, "Because that's ratepayers' money, and we want them to get the most energy savings for their investment." Customers may install their own systems, but they must attend the contractor training class, too, in order to collect their rebates. CPAU has received one application from a self-installer that is pending approval. "I've talked a lot with the applicant and with other customers who want to put in SWHs," said Henderson. "There is a lot to learn about OG-300 requirements." Poised for successCCSE conducted inspections on the first three installations in mid-October, and three more homeowners have applied to the program. CPAU is promoting the technology through bill inserts, public outreach events, and the contractors who take the training. "Our goal is to install 100 units the first year," said Cox. "The applications have been a little slow coming in, but our office is getting lots of calls for them, so interest is clearly building." Henderson thinks that the Palo Alto rebate may ultimately be more successful than the San Diego program. "Palo Alto is a very progressive community," she noted. "Also, there are a lot of homes in the city with radiant space heating, so solar water heaters can have a significant impact on the customer's overall heating bill." The logistics of installation are easier, too, for a municipal utility. If a project hit a snag in San Diego, Henderson recalled, CCSE had to work with several different parties, not all of them invested in the rebate program. In Palo Alto, the utility and the permitting office are part of a larger entity—the city—that is committed to an overarching energy-efficiency plan. It may be, too, that it is the right time to offer consumers another option for installing their own renewable energy system. Both energy costs and concern over the environment are on the rise. Requiring only one or two panels and costing around $6,000-$9,000, SWHs offer individuals a relatively affordable way to take action—and reduce utility bills. That is a winning formula for an energy efficiency program, something that Palo Alto Utilities has learned from experience. |
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ResourcesSolar water heater (SWH) rebate Solar Rating and Certification Corporation California Center for Sustainable Energy |
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