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PUC—s Proposed Solar Rebates Draw LAFCO Questions on MECA Funding and Equity
Summary
LAFCO heard an SFPUC briefing on a proposed solar incentive program funded from the Mayor—s Energy Conservation Account (MECA): $3,000–$6,000 residential rebates and $1.50/watt commercial rebates (capped at $10,000). Commissioners and public speakers pressed staff on fund size, equity and whether the program advances or conflicts with community choice aggregation (CCA).
The San Francisco Public Utilities Commission—s proposed solar incentive program, which would use Mayor—s Energy Conservation Account (MECA) funds to offer rebates to homeowners and businesses, drew scrutiny at a LAFCO hearing about how the program intersects with the city—s community choice aggregation (CCA) plans.
Barbara Hale, assistant general manager for power at the SFPUC, summarized the draft ordinance under consideration by the Board of Supervisors and the pilot the PUC proposes to implement. Under the pilot described to LAFCO, rebates would range from $3,000 (base residential) to $6,000 (when the city—s workforce development program is used). Commercial installations would be eligible for about $1.50 per watt up to a $10,000 cap. The pilot would use a one-time $3 million allocation in the current fiscal year; the ordinance contemplates an ongoing annual appropriation in the $2–5 million range thereafter.
Hale said the source of rebate funding is net operating revenues from the PUC power enterprise allocated to the Mayor's Energy Conservation Account (MECA). She told commissioners she believed unencumbered MECA funds were about $16 million (staff noted that figure is subject to check) and that the account has received approximately $50 million since its inception, with roughly $25 million spent on energy efficiency and about $24.3 million on renewables (figures summarized from meeting remarks).
Commissioners asked whether the PUC could proceed while the Board of Supervisors was still vetting the ordinance (Hale said the PUC believes it can proceed on an approved allocation in the current budget) and pressed for analysis of program equity and cost-effectiveness compared with municipal installations. Commissioner Bornstein, among others, expressed concern about means-testing and whether rebates primarily benefit higher-value property owners who can afford up-front installation costs.
Public commenter Eric Brooks asked that any consultant LAFCO hires for CCA promptly review the solar rebate program and other major energy projects (he named large-scale power purchasing agreements and the J Power combustion turbine) to ensure the city—s overall energy strategy is coherent and to guard against unanticipated budgetary drains.
What happens next: the PUC expects to post pilot program materials and begin accepting applications under the pilot program; the Board of Supervisors will continue to vet the ordinance. LAFCO requested staff include solar-program analysis and related items on upcoming agendas (the special April 4 meeting will address consultant hiring and related planning questions).
Direct quotes in this article are attributed to speakers who appear in the meeting transcript.
