Item 5- Presentation: Recommendation on Changes to Residential Rooftop Solar Rebate Program — original pdf

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A Resolution Summary Resolution on Changes to Residential Rooftop Solar Rebate Program D. SASARIDIS 25 MARCH 2025 Recall… Feb 3, 2025 – Commissioners Sasaridis, Silverstein, Robbins introduce “Resolution on Changes to Residential Rooftop Solar Rebate Program” – discussed proposed changes to policy, inspection, for both solar and batteries. Feb 18, 2025 – Tim Harvey presents Austin Energy perspective March 25, 2025 – Today – Presenting redlined version of “Resolution on Changes to Residential Rooftop Solar Rebate Program” What’s new in the redlined resolution? 1) All battery-related language removed to avoid potential commissioner interest conflict. 2) Edited to address commissioner & Austin Energy feedback from last meeting (Feb 18) Commissioners’ Feedback – Feb 18 Meeting “Excellent Presentation” Commissioner Gary “Why there is such a high fail rate? Why is there online inspection in other cities?” Vice Chair Robbins “110% rule – is it updated on the website?” Commissioner Schwartz “As a person who used to install these systems, I appreciate the safety concerns that you brought to this. I think people make mistakes on [getting] excited about getting the system and overdoing it sometimes or making mistakes, and I think it's important to really understand it before you go and do it. We are talking about a very complicated device, and there's a whole bunch of moving parts there.” Commissioner Leucke “And so that really helped me see that, particularly as it relates to protecting consumers from unscrupulous vendors. That was giving me pause in, in the resolution about taking away things that, might actually be protecting consumers.” Commissioner Davis Defining the problem Electrification of work previously done by hydrocarbons. Why Residential Matters - Solar at the edge of the grid Relieves constraint https://www.rff.org/publications/explainers/renewables-101-integrating-renewables/ Constraint What Success Looks Like – Australia https://pv-map.apvi.org.au/historical#7/-37.064/146.569 Austin Greater Adelaide Population 0.98 M 1.4 M Solar Penetration 6.6 % ~35 % Solar Cost $3 / W $ 1 / W Austin, TX- 103 MW / 10 kW avg install = 10.3k homes 10.3k / 155 k = 6.6% Sources: https://austinenergy.com/about/company-profile/electric-system/power-plants https://www.infoplease.com/us/census/texas/austin/housing-statistics Solar Equipment Costs are Plummeting Year Cents/W Q2 2023 Q3 2023 Q1 2024 Q3 2024 14.5 12.5 11 9.6 45% drop in <2 years! Source: BloombergNEF, NREL Solar as a Luxury Good Soft costs are high, material costs are low Cost increasing vicious cycle Legitimate installers have high overhead, so they must counter- position as the solution to bad actors, position solar as a luxury good. Low volume, high profit. Installation space attractive to bad actors “You get what you pay for” “Solar is expensive! Don’t cheap out on the install!” Evidence: Solar as a Luxury Good $3.98 / W These two residences in Austin, TX got Solar in the last 3 months. Installs are nearly identical (panels, inverters, batteries). Install complexity is wildly different – price is the same. $3.75 / W Something doesn’t add up. Luxury Solar → Commodity Solar Soft costs are low, material costs are low. Cost reducing virtuous cycle Profit per site is low, market is unattractive to bad actors, they exit. Many installers enter the market, due to low soft costs and decreased sophistication required. Competition decreases profit. “Have you seen how cheap solar installs are these days” “So many installer options to choose from, now there are installers who do good work at a low price! This resolution helps break the cycle by streamlining. Resolution Item How it streamlines Course + Quiz -> Video + Reference Reduces friction, increases solar adoption (install volume) Sizing approval Reduces steps (soft costs, friction) Extra-NEC requirements Increases sameness (soft costs) 75% TSRF 3 kW only Increases system size (volume costs) Asynchronous Inspections Reduces steps, installer labor & time This resolution does not relax consumer protections. Pre-Resolution Post-Resolution Operational complexity drives high soft costs, enabling luxury good paradigm. Bad actors prevalent, oversight required. Solar course and quiz are informative, but information is quickly forgotten, and not referenceable. Competition drives profits low, bad actors occurrence rate is naturally low. Heavy scrutiny not required. Solar video and reference card are engaging and easily referenced AE insists on approval for system size People are able to size systems for future needs. 75% TSRF Maximum 75% TSRF Maximum on 3 kW, customers know to look for TSRF because of reference card! Large sub 75% systems allowed. This resolution adds consumer protections. Resolution Item How it protects Reference quotes Key enabling information for consumers 10-year warranty specifics No security-blanket warranties 75% TSRF for 3 kW Protects AE Rebate investment This resolution does not relax electrical safety. Scope of change from this resolution AE inspects electrical work in person via thorough asynchronous video / picture inspection AE enforcing Master Electrician pull permit and perform work Layers of safety Master Electrician – 12,000 hours and 6 years + Test UL 1741, IEEE 1547-2018, UL 9540, UL 1973. Already required, no additional testing needed. Scope of change from this resolution NFPA 70 – National Electrical Code Source: https://www.tdlr.texas.gov/media/pdf/ELC%2520at%2520a%2520Glance.pdf Video Inspection is safe and common The following items could be easily shown on an asynchronous video inspection: • Electrical arrangement • Distances / spacings • Conductor sizes • Tugging on wires • Fastener torque • Wires touching the roof Why does it matter that we act? This group (RMC) has a moral imperative to be a balance to Austin Energy. RMC is set up to have a different position than AE on purpose. It is our different perspectives, not the goodness of the people within the two groups, that makes this a healthy balance. We are under penetrated on solar, let’s usher in a new era on the terms of the people of Austin, TX.