SF Solar Incentives - How it really works?

Published by sylvia | Filed under Uncategorized

The San Francisco Public Utilities commission met last 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 our 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.