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Solutions for Overcoming Barriers to Solar Adoption in Communities of Concern

Advocacy
Image of a happy family in front of an ongoing solar installation at their home

As California, America’s leading solar state, continues to evaluate its future solar agreement (net energy metering), it is important to acknowledge the current gaps in adoption of clean energy technologies. Although rooftop solar has become increasingly accessible to low-and-moderate income households in recent years due to a decrease in solar prices, increased financing options and an attractive current solar agreement known as net energy metering 2.0, there are still a number of barriers to adoption. The state has said that California needs to triple the amount of rooftop solar in order to meet our climate goals and that will not happen if we don’t include solutions for our communities of concern. 


1. Overcoming the barrier of homeownership through on-bill financing, community solar and incentives for multifamily solar

The primary barrier to the adoption of solar is home ownership and in order to overcome this barrier, we need to be creative and rethink the traditional financing structures for solar. Thankfully, other states have already addressed this barrier successfully and have developed innovative financing structures that allow renters to receive the benefits of solar. The first strategy is on-bill solar financing which ties re-payment for solar and energy efficiency upgrades to the meter, rather than an individual. Hawaii has successfully created the Green Money $aver program (GEM$), which is the first on-bill financing program that requires no upfront cost or credit check which are two other large barriers to adoption. Renters will enjoy an estimated 10 percent reduction on their utility bill at no upfront cost to the tenant or property owner and the credit can be transferred to the next renter. Another innovative way to overcome the barrier of homeownership is community solar, where renters can subscribe to a portion of a community solar project which will then credit against their utility bill, saving them money and letting them get their energy from clean sources. While California has excelled as the nation's number one solar state, we have fallen behind in our ability to enact legislation that supports community solar projects. Finally, the market for multifamily solar, which makes up about 30 percent of California’s housing market, cannot be ignored. Previous statewide incentive programs played a huge role in rapidly accelerating adoption for single family homes but the adoption for multifamily hasn’t had as much success. The Solar on Multifamily Affordable Housing (“SOMAH”) program is addressing this barrier by providing incentives for multifamily affordable housing that can cover the entire cost of the system. The program is funded through state cap-and-trade funds and has a billion dollar budget over the next 10 years. 

2. Addressing cost barriers through upfront incentive payments 

Another large barrier is high upfront costs for rooftop solar for cash purchases or for portions of state rebates and the 26 percent federal tax credit. California has put billions of dollars behind incentive programs that offer rebates for going solar, however rebates are usually distributed once the system has been installed and interconnected and usually after a lengthy application process, leaving homeowners and property owners to pay the costs for installation and permitting before they ever see a rebate check. Offering upfront payments for incentive programs can eliminate this barrier altogether. Since incentive programs for single family homeowners are beginning to sunset, it's important to also consider no upfront cost financing to address this barrier moving forward, especially for the multifamily sector. Jurisdictions could offer bridge financing programs to address this barrier, which some philanthropists and foundations are currently working to address on a smaller level. 

3. Mending relationships and lack of trust in communities of concern through partnerships with community based organizations

While many solar companies have good intentions, the solar industry has created a barrier because of the lack of trust they have created in communities of concern, which has been plagued by misinformation about solar programs and issues with some less than reputable contractors. Those few bad apples have given the industry a black eye and it’s hurting solar adoption in communities that could benefit from solar the most. It is extremely important that the solar and storage industry, along with program administrators, begin to repair the relationship with communities of concern by partnering with trusted community voices who can provide reliable information to community members in ways that are culturally appropriate and in native languages. The states’ Solar on Multifamily Affordable Housing program has done a good job recognizing this barrier and contracts with local and statewide community-based organizations to conduct education and outreach to property owners and tenants to provide information about the program and overall benefits of clean energy. Partnering with trusted community partners, in addition to offering solar marketing materials, proposals and contracts in various languages, is a starting point to start building trust. 

4. Protecting existing solar customers from evolving solar policies

Finally, expanding access to rooftop solar will not happen when statewide legislation and changing statewide solar policies continue to threaten the investment that people have made or are considering making. Fighting for strong policies for new solar customers and ensuring that solar continues to grow is one fight, but when policies threaten the contracts that people have signed and been promised, it creates a distrust in the government and cities who have pushed for people to go solar and solar companies who promised customers their contracts would last for 20 years. The investor-owned utilities are getting bolder in their attempts to kill rooftop solar, weaponizing communities of concern in their attempts to kill rooftop solar, forcing utility-scale solar to be a main solution to meeting 100 percent clean energy targets, which would increase rates for all ratepayers. 

Overcoming the barriers to solar adoption won’t be easy, but they are necessary in order to ensure that we are meeting local climate action plans and statewide climate goals. Hammond Climate Solutions along with partners at Protect Our Communities Foundation, Brevian Energy and the San Diego Urban Sustainability Coalition, recently submitted a National Renewable Energy Laboratory (NREL) Grant with a proposal for a program that will expand solar in communities of concern using tactics highlighted earlier in this blog. Communities of concern have long been left out of the clean energy transition and its time to invest resources to accelerate the adoption of clean energy technologies for communities who suffer disportionately from the effects of climate injustices and the climate crisis and are also paying a disproportionate amount of income towards skyrocketing energy bills. Learn more about the current attacks on solar and how you can help defend rooftop solar and expand equitable access to all ratepayers. 

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Californians rally across the state to show support for rooftop solar

On December 1, hundreds of Californians across the state rallied, presumably one last time, to show their support for rooftop solar ahead of the California Public Utilities Commission's December 15 meeting, where they will vote on an anti-solar proposal.

On December 1, hundreds of Californians across the state rallied, presumably one last time, to show their support for rooftop solar ahead of the California Public Utilities Commission's December 15 meeting, where they will vote on an anti-solar proposal.  

Over the course of two years, the California Public Utilities Commission (CPUC) has had a proceeding open to make changes to the state’s net energy metering (NEM) program, with the investor-owned utilities and their surrogates on one side of the isle advocating for drastic cuts to the benefits rooftop solar customers receive while environmental and climate justice organizations, schools, churches, nonprofit organizations, unions, Community Choice Energy providers, consumer protection groups and others on the opposite end advocating to keep rooftop solar growing in California and to make it more accessible. 

In December 2021, the CPUC released a proposed decision that included a fee for solar which essentially taxed solar customers simply for having solar interconnected to the grid (and providing local clean energy) and included retroactive changes to current solar customer agreements. Thankfully, our coalition of over 600+ organizations across the state representing millions of people put enough pressure on both the CPUC and Governor Gavin Newsom, which caused the governor to publicly tell Californians that the proposal needed more work. Since then, our coalition has continued to hold numerous rallies, call in to several CPUC voting meetings to make public comments (with some public comment periods lasting over seven hours), hold meetings with elected officials and submitting letters to Governor Newsom. 

Finally, last month, the CPUC released their anxiously awaited revised proposed decision, which is still way too extreme and would send solar off of a cliff. The proposal includes a dramatic 75 percent reduction to the credits customers receive for sharing their excess energy with their neighbors. Cutting these credits means solar will not pencil out for nonprofits, schools, churches and working class families across the state. In San Diego where we pay the highest rates in the nation for energy, rooftop solar is the only way for working class families to alleviate the burden of skyrocketing energy costs. Solar and storage is a clean way to provide reliable backup power when the utilities cut off power, which is happening more and more frequently, helping families maintain needed medical equipment while avoiding potentially wasting perishable food.

At the San Diego solar event today, one of 10 in the state held at 11 a.m., activists and solar installers who are concerned over their jobs rallied in front of St. Stephen’s Church of God in Christ, a church that has been a pillar of the community that has just recently installed solar panels to help with the cost of energy bills and be able to reinvest money back into the community. Pastor Glenn McKinney spoke to the CPUC and state leaders directly, “We should be gathering at churches like ours to celebrate going solar, not having to ask state leaders to halt their efforts to make solar less accessible to everyone, especially communities of concern and nonprofit organizations.” He continued by sharing why it's important for rooftop solar to remain an option for communities of concern. “We do not have a robust tree canopy like some communities and it’s getting hotter and hotter here in San Diego where we pay the highest energy rates in the nation. Without rooftop solar, we have no other options than to pay for expensive energy that’s making fossil fuel companies and their shareholders a lot of money while San Diegans are forced to choose to pay their energy bill or medicine or food”.

The CPUC will vote on the proposal on December 15 and our coalition knows the power we have when we stand together and make our voices heard. Please visit helpcleanenergy.org to see how you can help!      

   

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Senator Schumer discussing the Inflation Reduction Act in public

Breaking Down the Clean Energy Incentives in the Inflation Reduction Act

Last month President Joe Biden signed a bill that secured the largest investment in the United States’ history to combat climate change and invest in clean technologies. An analysis of the bill from Senate Democrats predicts that the bill will help the United States lower greenhouse gas emissions by about 40 percent by 2030.

Last month President Joe Biden signed a bill that secured the largest investment in the United States’ history to combat climate change and invest in clean technologies. An analysis of the bill from Senate Democrats predicts that the bill will help the United States lower greenhouse gas emissions by about 40 percent by 2030. 

The Inflation Reduction Act is 730 pages of not-so-easy to read legislation with topics covering healthcare, energy, electric vehicles, corporate taxes and more. Keeping in mind that reading through federal legislation is time consuming and may not be easy to understand, this blog will break down the key points relating to clean energy from the Inflation Reduction Act from the information that’s available at this time. 

Changes to the investment tax credit 

The tax credit that’s received for installing clean energy technologies has now increased from 26 percent back up to 30 percent and will be in effect until 2032. The tax credit will be available for both residential and commercial projects installed this year and moving forward. The investment tax credit will decrease to 26 percent in 2033 and 22 percent in 2034. 

The biggest change relating to the tax credit is that it includes a direct pay provision for a nonprofit or a state, local or tribal government. Previously, those entities were not able to use the tax credit available so often entered into power purchase agreements or leases to utilize the tax credit. We are excited for our nonprofit Solar Moonshot Program participants, which will now be able to utilize direct pay and own their systems outright from the day their rooftop solar power systems are energized. Unfortunately, residential customers are not eligible for the direct pay provision, however, residential customers who do not have the tax appetite to make use of the tax credit, are now about to transfer or sell the credits. 

There are also a number of adders that may increase the percentage of the tax credit. An additional 10 percent is available if the system is installed in an area with significant fossil fuel extraction or a brownfield. Another additional 10 percent is available for using domestic materials, which requires all steel and iron to be sourced from the United States and 40-55 percent of the value of manufactured products to be from the United States.  Finally, an additional 10 percent adder is available for solar projects that sell their electricity via community solar to low income households. The adders are also stackable meaning if a project has the 30 percent tax credit, a 10 percent adder for domestic materials, a 10 percent adder for being located in a fossil fuel community and another 10 percent for being a community solar project, the tax credits could potentially reach up to 60 percent of the total system cost. 

Prevailing wage and apprenticeship requirements 

New employment requirements exist for large clean energy projects 1MW or more. In order to be eligible for the standard 30 percent tax credit, workers installing solar projects must be paid prevailing wages and be part of an electrical apprenticeship program. Violations will not only result in projects unable to claim up to 24 percent of the 30 percent tax credit but also heavy fines of $5,000 for each worker who is underpaid. Furthermore, if the inability to meet the wage requirements is found to be intentional, the fine will double to $10,000 per worker.  

Additional incentives and information

There are many other investments in the bill including tax credits for electric vehicles, electrical panels and more. There are also details that are not determined yet, for instance about the time it will take for direct pay to be paid out, which we’ll update you on as the information becomes available. Sign up for our newsletter to be notified when part two of this blog, which will dive into transportation investments, is available.

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Climate activists knee deep in water at the Fossil Fuel Free San Diego press event

Climate Activists Launch the Fossil Fuel Free Pledge Knee Deep in Mission Bay

On August 11, leading climate organizations, elected officials, candidates and local activists stood knee deep in the waters of Mission Bay to demonstrate the effects the climate crisis will have locally and launch the Fossil Fuel Free Pledge. The initiative aims to end the fossil fuel industry’s anti-climate agenda while celebrating and providing transparency regarding where organizations, elected officials and candidates receive funding. Those who take the pledge agree to not accept any fossil fuel money as part of their commitment to an equitable and climate safe future.

On August 11, leading climate organizations, elected officials, candidates and local activists stood knee deep in the waters of Mission Bay to demonstrate the effects the climate crisis will have locally and launch the Fossil Fuel Free Pledge. The initiative aims to end the fossil fuel industry’s anti-climate agenda while celebrating and providing transparency regarding where organizations, elected officials and candidates receive funding. Those who take the pledge agree to not accept any fossil fuel money as part of their commitment to an equitable and climate safe future.  Speakers at the event included Carlsbad Councilmember Priya Bhat-Patel, candidate Tommy Hough and representatives with San Diego Coastkeeper, SanDiego350’s Youth4Climate, CleanEarth4Kids, Hammond Climate Solutions Foundation and San Diego Urban Sustainability Coalition. Additional attendees included Surfrider San Diego, SD-SEQUEL, candidate Georgette Gòmez and other climate activists. 

It’s no secret that fossil fuel companies give funding to nonprofits and elected officials, and activists note that allegiance is often expected in return for those funds. Some nonprofit organizations that have accepted fossil fuel money have publicly supported a fossil fuel company’s anti-climate initiative, even when the initiative conflicts with the organizations’ mission, values and hurts the communities being served by the nonprofit. Fossil fuel companies have also invested billion of dollars to support elected officials and candidates who will vote for policies and laws that continue to benefit polluters. 

Locally, two big fossil fuel corporations contributing funds to nonprofit organizations and candidate campaigns are San Diego Gas & Electric (SDG&E) and its parent company, Sempra Energy. SDG&E touts its renewable energy content in its state-mandated renewable portfolio standard program, although Voice of San Diego reported last year that SDG&E Walks Back Claim it Delivers 45 Percent Renewable Energy, citing only 31 percent of energy San Diegans consume is zero carbon. While SDG&E claims to support clean energy, their net energy metering proposal at the California Public Utilities Commission would erode the economics of rooftop solar, making solar out of reach for many Californians while setting what activists say is a dangerous nationwide precedent to rely on dirty energy for a longer period of time. If SDG&E’s net metering proposal is adopted, it would also lessen the benefits that the City of San Diego’s new Solar Equity Program has for San Diegans in communities of concern. Meanwhile Sempra Energy sold off renewable assets and continues to invest heavily in fossil fuels, primarily fracked gas, which accelerates the climate crisis and contributes to various climate injustices in California. 

“You cannot buy my destruction. You cannot pay to poison my children. You cannot pay to poison my communities,” said Yusef Miller, a board member of CleanEarth4Kids and a NAACP North County leader, in a passionate message to the local fossil fuel company SDG&E. Miller’s high school aged son also spoke at the event.  

With the climate crisis worsening, scientists, leaders and climate activists say it is now more urgent than ever to end our reliance on fossil fuels. Divesting from fossil fuel support and standing behind companies that prioritize clean energy, green jobs and communities of concern has never been more critical. In fact, earlier this year, the San Diego County’s Board of Supervisors made the unanimous decision to divest from fossil fuel companies. This allows the County to invest its money in companies that do not detrimentally impact the environment and accelerate the climate crisis.

"The fossil fuel industry has invested millions of dollars towards campaign contributions, organizations and front groups to ensure billions of dollars in subsidies and laws that benefit polluters,” said Karinna Gonzalez, Climate Justice Policy Manager with Hammond Climate Solutions Foundation. “The Fossil Fuel Free Pledge is starting here in San Diego, and it will cut off the fossil fuel industry’s influence so that we can make meaningful progress towards a just and livable future."

Fossil Fuel Free pledgees include SanDiego350, Hammond Climate Solutions Foundation, Bike San Diego, San Diego Coastkeeper, Surfrider San Diego, San Diego Urban Sustainability Coalition, CleanEarth4Kids, Democratic Socialists of America San Diego, North County Climate Change Alliance, SD-SEQUEL, San Diego Bike Coalition, South Bay Sustainable Communities, Climate Reality Project San Diego, Environmental Center of San Diego, University Christian Church, City of San Diego Councilmember Monica Montgomery Steppe, Carlsbad City Councilmember Priya Bhat-Patel and candidates Tommy Hough, Georgette Gómez, Tiffany Boyd-Hodgson and Cody Petterson. All local elected officials, candidates and nonprofit organizations are invited to take the pledge and join the movement for a healthier and more equitable future. 

“As we stand here knee-deep in water, I would be remiss if I did not point out that this is our future if we allow fossil fuel companies to donate a penny to the environment while spending thousands to destroy it,” said Lucero Sanchez, Campaigns Manager with San Diego Coastkeeper.

The Fossil Fuel Free Pledge launched targeting nonprofit organizations, elected officials and candidates, however, there are plans to expand the categories as well as the geographic region. For more information or to take the Fossil Fuel Free Pledge or to get involved, visit www.fossilfuelfreepledge.org.

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