California Center for Sustainable Energy

We’re disappointed by the Federal Housing Finance Agency’s decision this month to recommend Fannie Mae, Freddie Mac and Federal Home Loan Banks take steps that effectively prevent the spread of property assessed clean energy ( PACE) programs. It means the City of San Diego’s Clean Generation Program is on hold, as well as similar programs throughout California and across the nation. We continue to believe that PACE programs will make the clean energy transition easier, and while this is a setback we certainly are not discouraged. There are lots of good indicators that sustainable energy is strong and growing in San Diego.

• Since the beginning of 2010, there has been an upsurge in solar photovoltaic ( PV) projects submitted for California Solar Initiative rebates. The San Diego region has about 80 megawatts ( MW) of small-scale solar PV installed today, with annual installation growth rates of 30 to 50 percent for the last decade.  By 2015 we should hit 200 MW; and 1000 MW in the following 15 years is eminently doable if, as we believe, the solar market continues to mature and reduce costs.

• New rebates are now available for residential and commercial solar water heating, which will help unlock its huge potential to reduce greenhouse gas emissions in the region and state, most directly by avoiding natural gas combustion. This has air quality benefits and is a good investment that protects the homeowner from natural gas price fluctuations.

• Non-solar projects are increasing with increased applications for wind/fuel cell projects being made to CCSE’s Self-Generation Incentive Program. There are three wind projects – two at Indian reservations and one private – and 16 fuel cell projects with biogas (renewable) in the pipeline. Combined they represent approximately 10 MW of generation and $30 million in incentives.

Although PACE programs may be in intensive care for the moment, we are optimistic they can be resuscitated by legislation and litigation aimed at ameliorating the situation. Instead of waiting for the situation to play out, we are working with many constituencies locally and on the federal level to identify and look at other options and alternatives.

In Portland, clean energy home retrofit projects are financed by a nonprofit community bank rather than a commercial lender. In Pennsylvania, the state treasury is providing low-interest loans for clean energy projects, aggregating them and utilizing its bonding authority to stimulate this very new market for clean energy securities. The Department of Housing and Urban Development has a long-standing program that may fit the bill for many residents – not limited to low-income – to finance energy-related home upgrades.  We are confident that there will be viable options available for most residents and business owners.

The timeline of PACE financing programs is uncertain, but there are lots of possibilities. You can be assured that we are working with other PACE stakeholders to resolve the issues and that we will let you know more as developments take place. The race to a clean energy future is still very much on.

If you would like further information about the latest developments concerning PACE programs or actions you can take in support of them, we suggest visiting the following websites: PACE NOW at www.pacenow.org, Efficiency First at www.efficiencyfirst.org and Vote Solar Initiative at www.votesolar.org.

Continue reading July's newsletter.