Item 13 - Staff Briefing Presentation on Solar Program Portfolio — original pdf

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Customer Renewable Solutions Program Overview Tim Harvey Manager, Customer Renewable Solutions March 2025 © Austin Energy Customer Renewable Solutions Customer Offerings GreenChoice for Business GreenChoice for Residential Community Solar for Residential Solar Standard Offer for Commercial Solar Solutions for Business Solar Solutions for Multifamily Solar Solutions for Homeowners 2 Customer Subscription Programs 3 GreenChoice Business Offerings Austin Energy makes it easy for businesses to choose renewable Texas wind energy. Businesses can choose from three plans: BusinessCents, Energizer or Patron. Energy usage billed at GreenChoice rates may claim zero emissions. GreenChoice is Green-e® Energy Certified. Contact Information AustinEnergy.com/GreenChoice 4 GreenChoice Business Offerings 5 GreenChoice for Residential Customers GreenChoice lets Austin Energy customers harness Texas wind power at a smart, convenient price. GreenChoice residential customers pay a premium of about $7.50 a month to choose renewable Texas wind energy. Customers must have an active Austin Energy account in good standing to enroll. GreenChoice is Green-e® Energy Certified. Contact Information AustinEnergy.com/GreenChoice 6 Community Solar Austin Energy's Community Solar program gives residential customers access to solar energy — no installation required. This is a great solution for renters or buildings not suitable for solar. Customers enrolled in the Customer Assistance Program (CAP) are subscribed at a reduced rate. Austin Energy invests in local solar projects to match 100% of subscribers' electricity needs. This program is fully subscribed as of 2024. Austin Energy anticipates adding capacity to the program. Customers can check availability and get on the waiting list to participate. The GreenChoice program is a green energy alternative that is currently available to customers. Community Solar is Green-e® Energy Certified. Contact Information AustinEnergy.com/CommunitySolar CommunitySolar@AustinEnergy.com 7 Community Solar Subscription Programs Fiscal Year Metrics • Program budget: Self-sustaining Savings goal: Community Solar contributes to local solar goals Key Projects and Initiatives • Provide customers with the opportunity to subscribe to renewable energy. Provide moderate and limited-income customers preferential access to community solar programs. • • Program Team Customer Renewable Solutions Manager Tim Harvey Program Manager Valerie Paxton Program Coordinator Sam McClendon 8 Customer On-Site Solar Programs 9 Solar Standard Offer Program The Solar Standard Offer Program is an innovative initiative by Austin Energy to increase local solar adoption on commercial properties. This program allows property owners to lease roof or parking space to solar developers, creating new revenue streams without upfront capital investments. The energy produced supports Austin Energy’s Community Solar program and contributes to Austin’s carbon-neutrality goals. Contact Information AustinEnergy.com/CommercialSolar 10 Solar Standard Offer Program Eligibility System Hosts must be current Austin Energy commercial customers. System Owners must be registered vendors with the City of Austin. Participating Contractors must be registered with Austin Energy Solar Programs. Participation Process • System Owners should connect with system hosts and participating solar contractors to submit applications to the Solar Standard Offer Program. The Participating Solar Contractor selected will apply for the Solar Standard Offer Program on the System Owner’s behalf. The contractor will complete a Customer Agreement Form and then seek System Owner and System Host signatures to confirm project details. Austin Energy will review the application to determine eligibility and program capacity. • • • Solar Standard Offer Rider • Austin Energy will compensate System Owners at the Standard Offer Rate for all solar production: $0.1124 per kilowatt hour for systems less than 1 MW, and $0.0841 per kilowatt hour for larger systems. The rate will be updated every three years based on a rolling average of five years of avoided cost analysis. Benefits The Solar Standard Offer Program benefits commercial property owners (System Hosts), System Owners, and the community at large. • For System Hosts: Potential leasing income* without upfront solar installation costs. Acknowledgement and appreciation from Austin Energy through program communication. For System Owners: Energy payments (Standard Offer Rate), potential federal tax incentives*, and transparent energy value. Acknowledgement and appreciation through program communication. For the Community: More equitable and accessible renewable energy options for locally installed solar energy and environmental benefits. • • *Denotes benefits not provided nor guaranteed by Austin Energy. 11 Solar Solutions for Business Austin Energy offers two solar incentive options for business and non-profit customers to help reduce the cost of solar installation. Commercial customers can apply for either: • • The Performance-Based Incentive (PBI), which provides a five-year bill credit on monthly utility bills The Capacity-Based Incentive (CBI), which offers a one-time upfront incentive after installation Additionally, solar customers receive monthly Value of Solar bill credits for the energy they produce. Contact Information AustinEnergy.com/CommercialSolar 12 Solar Solutions for Business Eligibility • System must be installed by a participating solar contractor to be eligible for an Austin Energy incentive. • Systems must meet shading requirements. • Customer must be installing new materials. Capacity-Based Incentive (CBI): For 501(c)(3) and 501(c)(4) non-profits or for-profit companies installing less than 100 kW • CBI customers will receive the Value of Solar credit on their monthly bill. Performance-Based Incentive (PBI): For installations larger than 100 kW • • • Commercial projects over 1 MW must comply with section D of the Austin Energy Distribution Interconnection Guide (pdf). Participation Process • Customer chooses incentive program. • Customer contacts a participating solar contractor to request bids. Participating solar contractor applies for the Austin Energy incentive on the customer’s behalf. After the system has been energized: • • • Performance-Based Incentive (PBI) participants receive a PBI credits on their monthly bill along with the Value of Solar standard solar credit. • Customers who have opted to receive a Capacity- Based Incentive (CBI) are mailed a check. 13 Solar Solutions for Multifamily Austin Energy offers a variety of programs for Multifamily Housing. • The Multifamily Capacity-Based Incentive (CBI) program allows property owners to share the benefits of solar with residentially metered tenants. Austin Energy offers rebates to property owners, while the Value of Solar bill credits work to lower tenant utility bills. • Solar Solutions for Business serves commercial meters at multifamily properties. • Property owners can also host Solar Standard Offer arrays. Contact Information austinenergy.formstack.com/forms/value_of_solar 512.482.5346 14 Solar Solutions for Multifamily Eligibility • For properties of 5 to 500 residential units with a single street address. • Non-profit customers benefit from a higher incentive. The benefitting units must have residential meters. • Commercial meters are not eligible. The property must be a participant in the Austin Energy Multifamily Partnership Program (MPP). • Must work with a participating solar contractor. The multifamily property cannot be a part of the City of Austin’s Repeat Offender Program. • • • Participation Process • Customer enrolls in in Austin Energy’s Multifamily Partnership Program (MPP). • Customer finds a participating solar contractor. • Participating solar contractor applies for the Austin Energy incentive on the customer’s behalf. After the customer’s system has been energized: • • • Tenants receive the Value of Solar credit on their bill. Property owners are mailed a one-time check. 15 Solar Solutions for Homeowners Austin Energy offers education to help homeowners navigate the process of evaluating and installing solar along with an incentive to reduce the upfront costs of installing solar. Additionally, all solar systems receive monthly Value of Solar bill credits for the energy they produce. Contact Information AustinEnergy.com/Solar “Austin Energy provided in depth explanation of what to expect. The learning modules explained options clearly. System parts and functions were explained in easy-to-understand terms. We are glad to see a real savings in our energy bill.” –Austin Energy solar customer 16 Solar Solutions for Homeowners Eligibility • Must obtain a rebate confirmation letter before installing Incentives • Must work with an Austin Energy participating solar the system. contractor. Participation Process • Customer must meet eligibility requirements. • Customer completes the Austin Energy Solar Education course and passes a short quiz to confirm understanding of the course. • Customer selects a participating contractor. • Participating contractor completes the rebate application on the customer’s behalf. • Austin Energy Rebate: Customers can earn a $2,500 rebate by successfully completing Austin Energy’s solar education course and installing a qualifying solar system on their homes. • Austin Energy’s Value of Solar Bill Credits: Customers with qualifying solar systems receive monthly Value of Solar bill credits for the energy they produce. • Customers may qualify for a federal tax credit based on the cost of the solar system, including labor costs. • Customers may also qualify for a property tax exemption. 17 Customer Renewable Solutions Residential and Multifamily Programs Fiscal Year Metrics Program budget: $3 million • Savings goal: 7 MW Average job cost: Residential $26,806; Multifamily $168,011 Average rebate amount: Residential $2,500; Multifamily $83,713 Key Projects and Initiatives • Achieve a total of 405 MW of local solar capacity by 2035, as per Austin Energy's Generation Resource Plan to 2035. Expand a shared solar program for multifamily housing, as per Austin Energy's Generation Resource Plan to 2030. • • • • Program Team Customer Renewable Solutions Manager Tim Harvey Program Manager Valerie Paxton Solar Program Coordinator Athena Combs-Hurtado 18 Customer Renewable Solutions Commercial Programs Fiscal Year Metrics Program budget: $4 million • Savings goal: 5 MW • • • Average job cost: CBI $230,795; PBI $677,155 Average rebate amount: CBI $86,744; PBI $222,661 Key Projects and Initiatives • Achieve a total of 405 MW of local solar capacity by 2035, as per Austin Energy's Generation Resource Plan to 2035. Program Team Customer Renewable Solutions Manager Tim Harvey Program Manager Valerie Paxton Solar Program Coordinator Athena Combs-Hurtado 19 Solar for All 20 Solar For All Grant Through Solar for All, the Greenhouse Gas Reduction Fund will transform the status quo, putting billions of dollars of solar panels on the homes of low-income families and closing the equity gap in access to solar energy. EPA Funded $7B and 60 Awards, Texas Coalition awarded $250M, Austin Energy receiving $31.59 million. Environmental • • • • • 18 MWs of Solar 30 MWs/40 MWhs of Batteries 50 Commercial Hosts 2,500 Residential Hosts 3,000 Low Income Customers receiving 20% Bill savings for 15 Years 21 Benefits of Solar for All Community Ownership Low-Income Household Savings Broaden Access to Solar Resilience Benefits Environmental Benefits Workforce Development 22 What is Solar for All Solar for All is an Austin Energy program funded by the EPA’s Greenhouse Gas Reduction Fund to bring affordable solar energy to low-income and disadvantaged communities. It aims to install solar panels and battery storage on 2,500+ homes and community facilities, delivering at least 20% savings on electricity bills while promoting equity, environmental benefits, and resilience during grid outages. The program also creates workforce development opportunities and fosters community ownership of renewable energy assets. Launching in 2026, it represents a step toward a more sustainable Austin. 23 Climate and Economic Justice Screening Map Solar for All Eligibility • To be eligible, participants must live in the Austin Energy service territory. • All hosts will need to live in concentrated areas of poverty. • All subscribers will need to be low- income Austin Energy customers. AUSTIN ENERGY SERVICE AREA AUSTIN CITY LIMTS CONCENTRATED AREAS OF POVERTY 24 ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.