02-18-11 BPU RPT 03 - Laserfiche WebLink

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W A 1 E 14 f k E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: February 18, 2011 ITEM NO: 3 SUBJECT: SEIZING OUR DESTINY - SOLAR REBATE PROGRAM ADJUSTMENTS AND ADDITIONAL FUNDING ISSUE: Because of the tremendous success of the Solar Rebate Program, the Board of Public Utilities is requested to consider adjustments to the Solar Rebate per watt and maximum rebate levels, and redirect funds anticipated for energy from the proposed Tequesquite solar project to customer solar rebates. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Adjust the residential solar rebate program level to $2.50 per watt, up to a maximum of $15,000, not to exceed 50% of project cost; 2. Adjust the Non-Residential Flat Rate rebate level to $2.50 per watt, up to a maximum of $25,000, not to exceed 50% of project cost; 3. Adjust the Nan-Residential Demand Rate rebate level to $2.50 per watt, up to a maximum of $75,000, not to exceed 50% of project cost; 4. Adjust the Non-Residential Time-Of-Use Rate rebate level to $2.50 per watt, up to a maximum of$150,000, not to exceed 50% of project cost; 5. Authorize the City Manager or his Designee to award all rebates under proposed program levels directly to participating customers, with the ability to spread rebates in excess of $50,000 over a two or three year period; and 5. Authorize the transfer of $4 million in funds originally budgeted for current year natural gas purchases into an account to fund solar rebates for FY 2010111. BACKGROUND: On December 17, 2010, the Board of Public Utilities approved adjustments to the Solar Rebate Program to reflect significant customer participation and interest in local renewable generation. At that time, the Board authorized the Public Utilities General Manager to suspend the Solar Rebate Program when funding was depleted until future fiscal years; and directed staff to review program participation and customer interest levels. All funding for solar, or photovoltaic (PV), project rebates has been reserved for at least the next 18 months. In light of this tremendous interest, staff recommends changes to Riverside Public Utilities' (RPU) solar rebate programs in order to meet increased customer demand. In 2010, RPU experienced a 91% increase in the number of solar installed systems compared to 2009. In 2009, 49 PV systems were brought online compared with 94 systems brought online in 2010. Significant customer interest exists to the point that RPU has a reservation list for all budgeted rebate funds, and a waiting list for when additional funding becomes available. Nearly 78 projects are in queue representing an interest level of$7 million in potential rebates. Only $3.5 million is currently available in FY 2010111 with $3.98 budgeted for FY 2011112