San Francisco Solar Energy Incentive Program Info

The San Francisco Public Utilities commission met Wednesday with local solar installers to go over the logistics of the subsidy that is now San Francisco Law.

There are a few changes between the original draft and the new ad final version of the solar program that is now written into law. Here is my best attempt at clearly explaining those differences:

(btw, with the varying subsidy levels, some based on geography, income, installer location, it can get damn confusing, but just know that except for the special new “low income” incentive, they are all mutually exclusive. That means you only get one, so it’s either $3000, $4000, $5000, or $6000. Just figure out the highest number you would qualify for and that is the one you get.)

1. The $5000 “Environmental Justice Districts” was extended to low income individuals. It now includes not just zip codes 94107 and 94124, but also anyone who qualifies as “low income” by the Mayor’s office of housing (MOH), or anyone who qualifies for the PG&E CARE program. To qualify at the MOH you must make less than $63,350 for a household of one up to $97,700 for a family of 5. The MOH may also be able to help you with low interest financing for a solar project. The MOH website is here. These loans are generally 3%. Wow. I’ll scan their handout when I get back from out of town.

2. An Additive Low-Income subsidy of extra $5000 - all of the other subsidies are not additive and are mutually exclusive, except this one. If you qualify in the same manner as above (by qualifying as low income from the MOH or through the PG&E care program) you can get an additional $5000 to install solar. That’s pretty huge.

3. The addition of the $6000 workforce development incentive. Personally, I’m not pleased with this addition because it makes the subsidy confusing and makes people think they have to wait when that may not be the case. Don’t be fooled by any marketing from installers concerning who can offer the $6000 and who can’t, because it’s a brand new program and hasn’t even started yet (Starts in July). The positive note about it, though, is that it trumps the “local installer” incentive so that it gives out-of-towner installation companies a chance to compete, and competition is good for the consumer, and solar in general.

So how does it work? Well basically, a solar installer must hire a worker from this San Francisco Workforce Development Program, like one from Citybuild, and then use him or her on the installation on which the subsidy is being applied for. It’s relatively simple, but it’s new and there are kinks to be worked out. Personally, I feel like installers should also be able to hire them to do work other than installing, such as clerical or warehouse work, but it’s a great start.

4. Qualifications for the $4000 “Local Installer” incentive have changed. The wording used to require a “business license with an SF address.” That part has not changed, but now that business address must be your “principal” office.

(To establish a principal place of business in San Francisco, as distinct from an office, a business must demonstrate that the majority of its principals are based in the San Francisco office, and that it pays San Francisco payroll taxes on at least 51% of its total payroll. See here.)

5. The Non-Profit Pilot Program - in addition to the original subsidy, a $1.5M pilot program with very hearty subsidies for non-profits was passed. These include an uncapped $1500/kW incentive for non-profits, and $4500/kW (capped at $30,000) for multi-unit non-profit housing. These are big incentives.

NEW THINGS, NOT CHANGES, CONCERNING THE POLICY:

Solar Fairs - The Department of the Environment will be hosting what is more or less “open houses,” for solar installs where different installers and experts will be there to field your questions and provide you with materials. Here are the first two:

Saturday, July 12th
Southeast Community Facility
Alex L. Pitcher, Jr. Community Room
1800 Oakdale Avenue
10am-12noon

Saturday, July 26th
Eureka Valley Recreation Center
100 Collingwood
1:30pm – 3:30

New date for receiving applications - The solar incentive program will begin accepting applications July 1st.

If you have questions, add them here and I’ll try to answer them:

“Can I install a PV system for each of my tenants in an 8 unit building and receive 8 per meter incentives?”

Yes you can. One incentive amount per meter. All solar systems in California are completely isolated per meter.

“I’ve heard horror stories about passing st electrical inspections…are there any provisions in the new program that will facilitate the process?
often the electrical work is performed by non-union electricians.. Which leads to some wired politics..building officials seem to lean on the non union jobs a bit harder making it difficult to pass inspections and racking up costs to the purchaser..what has anyone heard about this? Is this rolled into the ” streamlined” process?”

The permitting for solar has already been streamlined to eliminate structural permits, if the installers is using approved mounting equipment. As for the electrical permit, there seems to be one inspector who is particularly picky, but this shouldn’t impact you. Your installer simply has to do whatever the inspector says to get it signed off, before they get the rebate assigned to them. The only way I could see a difficult electrical inspector being an issue is if you hired a very small or budget operation that only did the install itself and left you with all the paperwork.

“Has there been any recent development on clarifying the requirements for the “workforce development initiative” incentive?”

They are now saying August 8th they will have logistics of the hiring procedures hammered out.  Believe me, there is a lot of pressure on them as every installer in SF knows they have to hire one to remain competitive.  The small players can’t take on a new full time installer, and are going to be out of the game, which is one of the many reasons why uneven subsidies for solar energy are, in my opinion, a bad idea.  They goof with free market forces in dangerous ways, and in this case, hurt instead of help the consumer.

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