From:
To: Jones, Justin; Rick Cole; Hampton, Tyron; Lyon, Jason Cc: cityclerk
Subject: Item 3. SOLAR SYSTEM INSTALLATIONS & PERMITTING PROCESS Date: Monday, April 7, 2025 10:16:19 PM
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The slide presentation for Agenda Item 3 is little changed from slides for a presentation to MSC on November 12, 2024 (2024-11-12-Municipal-Services-Committee-Agenda.pdf Item 2).
Most slides are identical or have only minor alterations and updates.
MAJOR REVISION is found in Slide 14 - Mid-day Credit:
Customer CREDIT of $0.1381 per
kWh (pdf Page 46), formerly Customer CREDIT of $0.2291 per kWh (11.12.2024 pdf Page 46).
This change is reflected in the calculations on SLIDES 16 (11.12.2024 and
04.08.2025).
For the November 2024 presentation, Mid-day Customer Credit was $0.2291 per kWh (Total Energy Credits).
For the April 8, 2025 presentation, Mid-day Customer Credit is $0.1381 per kWh, the amount of the Energy Charge Credit only.
(See Table below)
Bill Components (SLIDE 16)
Energy Charge with PCA $0.1381 Energy Charge Credit ($0.1381) Transmission Charge $0.0161 Renewable Energy Credit ($0.0250) Distribution Charge $0.0575 Bi-monthly Net Metering Credit ($0.0660) Total Energy Charges $0.2117 Total Energy Credits ($0.2291)
For household use of 750 kWh per month, the November 2024 calculation using Total Energy Credits yielded a
savings of $108.03 per month while the April 2025 calculation using only the Energy Charge Credit would yield a savings of $87.45 per month but does not include the cost of energy purchased from the grid for total household use of 750 kWh/month as stated in the example.
NO Net Export (Export = Import) 11.12.2024 Example
Behind the Meter 500 kWh @ $0.2117 $105.85 Internal Use: Full Retail Amt Behind the Meter 125 kWh @ $0.2291 $28.64 Export to Grid – credit/month Import from Grid 125 kWh @ ($0.2117) ($26.46) Total Energy Charge paid Amount Saved per mo. $108.83 Includes Import from Grid
NO Net Export (Export = Import) 04.08.2025 Example
Behind the Meter 250 kWh @ $0.2117 $52.93 Internal Use: Full Retail Amt Behind the Meter 250 kWh @ $0.2291 $34.53 Export to Grid – credit/month Amount Saved per mo.
$87.45 Behind the Meter Only
LESS: Energy Import
Cost
Import from Grid 250 kWh @ ($0.2117) ($52.93) Total Energy Charge paid NET SAVED per month $34.52 Includes Import from Grid
CUSTOMER SAVINGS DOES NOT EQUAL RETURN ON INVESTMENT (ROI) as stated in these slides. Return On Investment is a ratio that compares the net profit or gain from an investment to its cost. In the case of rooftop solar, “gain” would be total savings over time compared to the cost of installation, usually measured over a period of years. ROI helps assess the profitability of an investment by comparing the gain or loss to the initial investment cost.
Two examples of important NEW INFORMATION are:
Slide 8 – Solar Systems and Pasadena’s Electric Grid (pdf Page 40) which includes new discussion of Benefits, Opportunities, and Moving Forward; and Slide 17 - Solar Program Case Studies: Pasadena, Burbank, Glendale, LADWP, Edison (pdf Page 49).
The Optimized Strategic Plan Update presented as Item 2 on today’s agenda makes clear that a major increase in rooftop solar (Distributed Energy Generation or “DER”) is essential to the success of Pasadena’s Climate Emergency Resolution 9977 mandating carbon-free electric power in 2030. However, the following slides with NO CHANGE or MINOR CHANGE appear to indicate that little or no progress has been made in solar system installation and permitting since November:
Slide 6 – Solar Installations by Customer Sector and Capacity Slide 7 – Pasadena Municipal Code 13.04.188 and Pasadena Regulations 21 and 23 Slide 21 – City Improvements Since Last Update (pdf Page 53) is unchanged from November 12, 2024 indicating that there has been no change during the past six months.
Slide 22 – PWP Improvements Since Last Update (pdf Page 54; clarification but no actual change from November 12, 2024)
Municipal Code 13.04.188 Net Energy Metering was last amended in 2012. It is time for new policies and a code revision supporting and encouraging rooftop solar investment by private property owners, and installation of solar panels with corresponding battery backup on city properties.
Regulation 21. Electric Service Requirements were last amended in March 2022.
Regulation 23. Distributed Generation Facilities Interconnection Requirements were last revised in April 2018.
The Municipal Services Committee must lead the way to implement changes fulfilling the mandate of Resolution 9977. City departments must work together to implement robust policy changes that encourage solar investment by private property owners, to develop programs such as community solar for multifamily properties and lower-income households, and to mandate installation of solar generation with battery storage for city properties.
Sincerely,
Genette Foster
Council District 2