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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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Celebrating Climate Action - 2022 Year in Review

As 2022 comes to a close, we wanted to reflect on all we have accomplished this year as well as share what we have in store for 2023. From fighting for the equitable and sustainable expansion of the rooftop solar industry to successfully advocating for comprehensive and legally-binding climate action plans to managing clean energy initiatives, this year has been packed with local, statewide and national climate action alongside many amazing partners. Thank you for supporting our work! 

Hammond Climate Solutions’ 2022 highlights: 

  • We publicly changed our operations from a social enterprise to Hammond Climate Solutions Foundation, a registered 501(c)(3), which is allowing us to broaden our impact!
  • Our climate policy efforts helped: 
  • Push for a solar-friendly net metering agreement 
  • Provide feedback for the City of San Diego’s Climate Action Plan update and the County of San Diego’s Regional Decarbonization Framework 
  • Launch the Fossil Fuel Free Pledge! 
  • Provide input for San Diego County’s District 3 Environmental Roundtable 
  • The programs and projects we manage continued to make a positive impact in communities across the country:
  • We helped over 20 nonprofit organizations go solar this year through our Solar Moonshot Program and passed the $1,000,000 per year fundraising goal
  • We managed $8,387,418.01 in recoverable grants, which helped nonprofits nationwide afford the switch to clean energy and energy storage
  • We continued managing two e-bike pilot programs and assisted our client BQuest Foundation in supporting an e-bike program for De Anza College in Cupertino, California  
  • We oversaw the installations of an EV charging station at a San Diego-based nonprofits serving communities of concern with two more underway
  • Four more California Electric Vehicle Incentive Project (CALeVIP) rebates that we had applied for were given the green light to proceed, totalling $52,000 
  • In Q1, we accepted two awards - the first was the San Diego Green Building Council’s Sustainable Organization award, and the second was for our founder and executive director, Tara Hammond, who was one of the San Diego State University Alumni’s Rising Aztec winners
  • Our team proudly served in leadership roles on a number of boards and committees including:
  • California Alliance for Community Energy (Steering Committee) 
  • GRID Alternatives (San Diego Board of Directors) 
  • SanDiego350 (SouthBay Eco Justice team) 
  • San Diego Green New Deal Alliance (Steering Committee)
  • San Diego Community Power (Community Advisory Committee and Executive Ad Hoc Committee)
  • Climate Defenders Action Fund (Board of Directors) 
  • San Diego Climate Hub (Hub Manager) 

As 2022 comes to a close, we wanted to reflect on all we have accomplished this year as well as share what we have in store for 2023. From fighting for the equitable and sustainable expansion of the rooftop solar industry to successfully advocating for comprehensive and legally-binding climate action plans to managing clean energy initiatives, this year has been packed with local, statewide and national climate action alongside many amazing partners. Thank you for supporting our work! 

Net Energy Metering 

After a two and a half year battle, the California Public Utilities Commission made a final decision on the future of rooftop solar and approved a new net energy metering tariff. Unfortunately, the decision benefits the investor-owned utilities and will slow California’s advancement towards 100 percent clean energy, using fossil fuels for a longer duration, which accelerates the climate crisis and worsens climate injustices. The tariff makes drastic cuts to the credits customers receive for sharing excess energy with neighbors and makes solar more expensive for everyone, including low-income Californians who are currently paying a disproportionate amount of income towards skyrocketing energy costs. 

Although we are outraged that the commission has sided with the investor-owned utilities and has disregarded the thousands of letters and public comments from climate organizations, nonprofits, schools, cities, elected officials and climate justice organizations urging them to keep rooftop solar growing, we want to take a step back celebrate what our coalition was able to accomplish throughout the course of the proceeding. 

In mid-2020 we were asked by the Solar Rights Alliance to gather San Diego climate leaders to help build a statewide coalition, which became the Save CA Solar coalition, and we are so proud of the coalition’s work. San Diego was a leader in addressing this issue with the most public comments in opposition coming directly from San Diegans. This is undoubtedly due to the amount of work local organizations poured into organizing public comments, giving presentations, meetings with elected officials, organizing rallies and speaking with the media (read more about one of our successful solar rallies here). Although this decision is far from a win, we were able to: 

  • Stop the solar tax 
  • Prevent changes to existing customers 
  • Defeat Assembly Bill 1139, the “anti-solar bill”
  • Build a diverse statewide coalition of over 600 

For now, we will celebrate what we were able to change but this decision serves as a reminder that there is still a lot of work to do to dismantle the fossil fuel industry's influence on politics and to achieve true energy and climate justice. For more background on this topic, check out www.HelpCleanEnergy.org

Local Policy Highlights 

While our team fought endlessly for good policy change at the statewide level, we also helped effectively bring some big changes at our local level in 2022. The City of San Diego passed a comprehensive Climate Action Plan update, which included bold targets for the region to meet in the coming years. More importantly, it came with a promise of an implementation plan and funding plan to be released in early 2023, something the last Climate Action Plan was lacking and resulted in little to no progress on the plan. 

At the San Diego County level we helped provide important feedback for the Regional Decarbonization Framework. While the final plan has not been approved, local climate organizations are committed to ensuring this framework is not only comprehensive but provides a path for implementation and includes how we will transition workers from our current gas infrastructure as we decarbonize. We were also invited and participated in the San Diego County District 3 Environmental Roundtable strategy meetings. 

Finally, our team was proud to serve as technical stakeholders to help with the development of a number of local programs and climate boards, most notably, the development of the City of San Diego’s new Climate Advisory Boards, which will advise the city on numerous issues ranging from energy and land conservation to building electrification and stormwater issues.     

Fossil Fuel Free Pledge 

The Fossil Fuel Free Pledge, which was launched by SanDiego350, Surfrider San Diego, BikeSD, San Diego Coastkeeper and Hammond Climate Solutions Foundation, disrupts the fossil fuel industry’s anti-climate agenda by celebrating and providing transparency regarding where nonprofit organizations, elected officials and candidates receive funding. Those who take the pledge commit to not accepting money from fossil fuel companies, demonstrating dedication and seriousness to combatting the climate crisis, dismantling the local fossil fuel industry’s influence and prioritizing a healthy, equitable, ethical, just transition and sustainable world. 

Since the pledge’s soft launch during Earth month, there have been nearly 35 pledgees and we plan to expand the pledge categories in the coming months! To read more about the August launch event, click here, and to take the pledge, please fill out an application on the campaign website: www.fossilfuelfreepledge.org

Solar Moonshot Program

Our Solar Moonshot Program continues to effectively make positive change by assisting nonprofit organizations across the country in adopting clean energy. To date, the Solar Moonshot Program has secured $3,150,000, which so far has assisted over 100 nonprofits, deploying 5,458kW of solar and offsetting 136,049 metric tons of carbon dioxide. These projects are reducing emissions, offering solar and energy storage education to the community, supporting green jobs and allowing nonprofits to save money on utility bills that are reinvested into their missions. 

In recent months we have supported over 20 projects across nine states. The projects range from educational facilities to food pantries, affordable housing and more. Collectively, these projects equate to 853.25kW of solar power, have supported countless green jobs and will reduce the use of dirty energy contributing to climate racism and the climate crisis for decades to come. 

There are always more solar projects to fund. If you know of a foundation, philanthropist or company interested in supporting the Solar Moonshot Program, further expanding our impact, please reach out to maya@hammondclimatesolutions.com.  

New Electric Bike Program

We are excited to be taking part in our fourth electric bike (e-bike) program. This program, in partnership with De Anza College, Cupertino Rotary and BQuest Foundation, will benefit low-income students at De Anza College. The e-bike loaner program will allow students to get to and from the college more easily and provide them with a reliable form of transportation while simultaneously reducing their carbon footprint. The college will be launching this loaner program with 23 e-bikes and we look forward to seeing how the student body benefits as well as how many vehicle miles are offset by the e-bikes!

Electric Vehicle Charging Infrastructure

While there are many public funds available for electric vehicle charging infrastructure, the process of applying for them and ultimately securing them can be daunting and burdensome for nonprofit organizations with little resources. 

We have helped the BQuest Foundation  secure rebates from the California Electric Vehicle Infrastructure Program (CALeVIP), which when paired with the foundation's grants, brings EV charging stations to nonprofit organizations serving communities  at zero cost to the nonprofit.

Our efforts this year have helped secure $42,000 in rebates for nonprofits serving communities of concern across the region and EV charging installations for three nonprofits have been installed or are close to being installed. 

Looking Forward 

In addition to continuing our climate advocacy and policy efforts, climate advising and existing climate programs like the Solar Moonshot Program and our e-bike programs, we plan to expand the Fossil Fuel Free Pledge to other focus areas as well. We’ll be sharing details on other programs for 2023 in the coming weeks, some of which will serve as pilot programs and proof of concept to lay the foundation for bigger programs for cities, community choice programs and legislation. 

Connect with us on social media (Facebook, LinkedIn, Instagram and Twitter) and to ensure you receive updates in the future, sign up for our newsletter.

We look forward to working with all of you in 2023 to create a more just and livable future!

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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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