Having aimed for Valentine’s Day and missed, those Cupid’s helpers over at LADWP have transmogrified themselves into lucky Leprechauns as they reset their sights onto everyone’s favorite feast day, Saint Patrick’s Day (aka, March 17 for the uninitiated).
Somewhat less tongue-in-cheek, DWP has announced that the third 20 MW tranche of solar project allocations under LA’s Feed-in Tariff (FiT) will open for applications on Monday, March 17. Under their guidelines, all applications received by Friday, March 21 will be assigned a sequence number and then a lottery will be held to allocate the 20 MW among the applicants. LADWP has some updated materials on their FiT website (access it here), but no key to what changes have been made (the proposed changes were very modest) and a promised Frequently Asked Questions section is still to come.
This third tranche has been delayed for weeks while DWP staff prepared their changes.
During the February 18 Board meeting to discuss changes to the program, Staff’s suggestion on how to move things along was to impose a 10-business day deadline to cure deficiencies in FiT application paperwork. Of course, that is the same amount of time that LADWP gives contractors to cure deficiencies in residential solar rebate applications—even though LADWP has taken five times as long to identify those “deficiencies." Given the far greater complexity with the FiT paperwork requirements, we can only hope that LADWP’s review of that paperwork is more insightful and the subsequent interactions more collaborative.
Happy St. Paddy’s Day!
UPDATE: The postponement is “until further notice.” We have a more detailed report on the delay of the third tranche of LA’s FiT here.
UPDATE: LADWP has informed us that the meeting scheduled for tomorrow has been postponed. As soon as we learn more, we will update this post.
LADWP has announced that the third 20 MW tranche of its Feed-in Tariff program will launch on Friday, February 14, pending Commission approval.
Outgoing GM Ron Nichols signed off on the Board Packet, and the tweaks to the program suggested therein are set to be reviewed and approved on Tuesday, February 4 at 11:00 a.m.—that is, tomorrow morning—according to the email DWP sent out Friday afternoon. (Can you say, “Friday news dump,” anyone?)
Apparently DWP made an update presentation to the Board on December 3. We say apparently since it is referenced in the new materials, but we cannot find a copy of the report anywhere online. We wonder, for example, if the Board was informed about the surprisingly low number of contracts that have been executed under the FiT so far? As we reported back in early January (going just on published data and without access to the report to the Board), out of 109 projects that originally “won” in the First Tranche lottery, only 3—a 2.7% success rate—have signed contracts.
Hard to say whether any of the “tweaks” being proposed will do much to address that problem.
We observe with some dismay DWP’s observation that “numerous developers have been confused or inexperienced with designing solar for the California market, ” since that could have been avoided (or at least reduced) if the program had given preference to local developers. After all, one of the stated purposes of the FiT was to develop local jobs.
Seems like a missed opportunity and one that has delayed successful project implementation while the out-of-towners get educated on the mysteries and joys of doing solar in the City of the Angels.
Other tweaks include:
Beyond those changes, “staff will post updated sample forms and contracts, answers to frequently asked questions, and checklists on the FiT Website to provide guidance and transparency." A noble goal, to be sure, but it would be a start if they could post their own Board presentations in a consistent manner.
Assuming the Board approves these modifications, the window will open on the Third Tranche on February 14, with a base price for energy of 15¢/kWh. The window will stay open for five business days and all completed applications will enter a lottery to see who will be part of the 20 MW allocation. Happy Valentine’s Day, everyone - may your solar dreams come true.
The Feed-in Tariff (FiT) program for LADWP has been up and running for nearly a year with the first two tranches in the books. Which raises the question: how have those proposals that were accepted, performed? Here’s our first take…
LADWP quietly posted some update statistics about its program the week before Christmas and we stumbled upon it while looking for information about the timing for the Third Trache (presumably set for later this month, although the DWP website simply says that launch info is “coming soon").
The FiT data comes in the form of an Excel spreadsheet, without supporting documentation, which leaves it open to interpretation.
Collectively, the data reports on 256 total projects, 136 from the first tranche and 120 from the second. Interestingly, the data only records three different status values for these projects: Cancelled, In-Progress and Waiting - there is no category in the data for “Completed".
From the first tranche, out of that total of 136 projects, 20 have been cancelled (14.7%), 45 are in-progress (33%) and 71 - over 52% - are listed as “waiting", though the data does not identify upon whom or what the projects have stalled. The data is somewhat more encouraging for the second tranche with only 1 project cancelled so far (0.8%), 64 are in-progress (53.3%) and 55 are waiting (45.8%). This trend suggests that as projects age they are more likely to either be cancelled or end up waiting on something.
The data tracks four milestone dates post lottery selection: Technical Screening Completed, Interconnection Study Completed, Customer Executed Contracts Received, and SOPPA Execution Date. Curiously, for the projects with a status of “waiting", not a single one of those dates is indicated. As it is hard to fathom how 110 out of 256 projects haven’t even passed the technical screening stage, we conclude that the “waiting” status is unreliable and needs to be corrected by DWP.
Turning to the cancelled projects, all but 3 of them reflect passing of the technical screening, and 15 of the 21 have completed interconnection studies. Since it is at that stage that you would expect a project to be dropped if the interconnection cost has turned out to be prohibitively expensive, it is not surprising that only seven got to the point of submitting their contracts. However, DWP had not executed any of those contracts according to the data. Which means that seven projects got so far as to submit binding contracts before dropping out.
Which leaves the category of “in-progress” projects. Out of a total of 109 so designated projects, only three have executed contracts from DWP, and all three of those were executed on September 13, 2013. This makes for a pretty dramatic winnowing process:
109 start -> 89 pass screening ->31 complete interconnection study -> 20 submit contracts -> 3 have those contracts executed, nearly a year after the process began (all of those with executed contracts came from last February’s first tranche).
Unfortunately, the data does not reveal why we are looking at such a dismal success rate one year on. Perhaps things would look different if the “waiting” segment were more revealing, but it is not.
Here’s hoping that 2014 will provide both greater success in getting projects over the finish line, as well as greater clarity in the process.
We wrote last month about how Glendale was late getting to its required Feed-in Tariff program and that the design that they were advancing was seriously flawed. Well the window on the FiT has finally opened and guess what - it is worse than we thought!
When we first looked at the details of GWP’s FiT we were concerned that there had been no public input into the program’s design. Moreover, the amounts that were going to be offered - based on the staff’s report to the City Council - revealed energy prices so low that no intelligent developer would go anywhere near the program.
The published proposed price for FiT energy - 9.292¢/kWh for peak time delivery and 7.251¢/kWh for off-peak - were well below what a program needed to be subscribed. In fact, those prices were very close to what was being offered in Anaheim and Riverside - two program which had not seen a single FiT application in two years!
Well as bad as we thought all of that to be, we just learned that the reality is far worse. GWP just kicked off their FiT website (which curiously has the title: Revenue for Demand Response) which includes a link to the current Offer Price. As of July 1 (though really not available until today) here is GWP’s actual offer price for FiT energy:
These new prices are 15% lower for peak deliveries and 10% lower for off-peak from the prices described to the City Council just last month! (Interestingly, their fees have not reflected a similar price reduction.) We previously calculated the FiT payment in Year 1 for a 100 kW project to be $13,599 based on the allocation of energy by peak versus off-peak times. Under the new rate structure that payment in Year 1 declines to just $11,688, a 14% hit.
The website is typically devoid of any data explaining how the new price was calculated, but does it really stand to reason that GWP’s “avoided costs” for energy declined by 15% in the past month for peak time deliveries? While the materials submitted to the City Council contained a sample calculation showing how staff reached the originally proposed values, no such calculation is visible on the GWP website. Were the numbers used last month simply fictitious? Or has there been some amazing change in fortunes for GWP’s ability to purchase energy - mind you this at a time when energy prices throughout Southern California are spiking up 59% due to the loss of the San Onofre Nuclear Generating Station. Amazing.
Looks like I won’t have to be making good on my bet come September. Pity.
We have reviewed the data coming from LADWP for the results of the second tranche lottery - here is our analysis.
Our first observation is that for some inexplicable reason, LADWP chose to present the data in Adobe pdf format instead of the Excel spreadsheets used previously. This made the process of analyzing the data far more tedious than it should have been. Heads up, DWP, please provide data in a data format. We have nothing against pdf files but that is not the way to publish this type of data.
Second, there was no Owens Valley data here. We cannot tell if there were no projects submitted from Owens Valley (there were in the first tranche) but none of these projects come from outside the Los Angeles Basin.
Third, one of these proposed projects was for biogas and not solar! That proposed project, submitted by MM Lopez Energy LLC, was for a 2.95 MW biogas system in Lake View Terrace. Unfortunately, the tranche was already oversubscribed by 572 kW by the time their lottery number turned up. This is a first for the FiT (which theoretically is technology neutral) - all of the proposed projects in the first tranche were for solar.
Collectively, the data released documents a total of 112 proposed solar projects, 63 in the large category (>150 kW) and 49 in the small category (30-150 kW).
While there were a total of 64 projects in the large category, it only took 19 to fully subscribe the 16 MW capacity cap available to large projects, and the last project to make the cut will have to downsize by 263 kW (from its proposed 800 kW) to stay within the cap. Here are the companies that were successful in the lottery along with the number of successful projects and the total capacity they are authorized to install:
Only three companies ended up with more than one project: OM Solar LLC (3 projects), Oakdale Ventures LLC (2) and SunStarter Solar LLC (2). The largest project appears destined for a warehouse building owned by Forever 21 coming in at just under the program limit of 3 MW.
One non-commercial entity made the list, LA’s Metropolitan Transit District will be installing 350 kW for its Division 13 bus operations center.
Far more numerous, however, were the losing proposals - here they are:
One of the first things that jumps out here is the amount of overlap. Each of the companies with multiple unsuccessful project proposals also had at least one project that made the cut. In particular, OM Solar LLC lost on 9 but was successful on 3, SunStarter Solar LLC lost on 8 but succeeded on 2, Haizenberg Solar LLC lost on 3, succeeded on 1, PLH LLC lost on 2, succeeded on 1, and SunRay Power LLC lost on 2 but succeeded on 1.
On average, the successful projects were somewhat smaller than the ones that missed the cut. Successful projects averaged 856 kW in size whereas projects that missed the cut were 1,113 kW.
Total proposed capacity was 66.38 MW, or 415% of the available 16 MW. Interestingly, this compares to 44.3 MW that were proposed in the first tranche - despite a lower energy price, the number of proposed projects increased!
Overall, the average proposed system size was 964 kW.
There were fewer participants in the small category, with a total of 49 projects of which 47 came within the 4 MW capacity cutoff (although the last project to make the cut will have to trim down by 3.3 kW from its proposed 38.7 kW). Average system size for a successful small project was right in the middle of the allowed range at 85 kW. The two projects that missed the cut were for 41 and 108 kW.
Here are the winners:
SunStarter Solar LLC was the big winner here with 10 successful proposals. Broadstreet, which finished right behind with 9 selected projects was also the bidder on the two that didn’t make the cut. Interestingly, the average system size for SunStarter was more than twice that from Broadstreet.
As before, the successful projects are scattered about the Basin. Here’s a listing by city:
Not surprisingly, LA itself is the big winner with thirty projects in the city proper reaching nearly 8 MW of installed capacity. Seventeen other neighborhoods are also participating overall, with North Hollywood capturing the second greatest number of projects (8) while Sunland comes in second for amount of capacity to be installed (3 MW).
Breaking the same data down by zip code shows that the top 10 zip codes account for 28 of the 68 projects (41%) but 15.7 MW of total capacity (77%).
Here is the breakdown by top ten zip codes:
Greatest capacity is set to occur in 91040 (Sunland) with three projects totaling exactly 3 MW, whereas 91605 (North Hollywood) has the greatest number of projects at seven worth a total capacity of 1.1 MW.
Once again we turned to the folks at batchgeo.com to give this data some visual perspective. We mapped all of the approved projects by zip code including the size of the project, the project name and the company responsible. The result is the following map where the different color pins represent the size of the projects accumulated in that zip code. (Unfortunately they do not allow you to represent size by a larger dot on the map - but hey, its a free system!)
As with the first tranche, there are a great many specially created entities in the list of company names which makes it harder to know who is actually scheduled to do the work. For example, there are numerous proposed projects from companies with names like 17000 Ventura, LLC or Luxe Apartments, LLC - not a lot of insight provided there. Frankly, since the LADWP FiT requirements call for the experience of the installation team as a basis for possible rejection, the published data should identify the installer and not just the project developer.
Here are the top ten companies by capacity of winning proposals:
Once again, as in the first tranche, OM Solar is the big winner (they had seven projects worth 5.2 MW back then). OM Solar is headquartered in Torrance. SunStarter and Broadstreet Energy were also big players in the first tranche: SunStarter had 6 projects worth 3 MW then and Broadstreet had 4 for 1.3 MW. Broadstreet is headquartered in Stevenson Ranch. SunStarter Solar has a residential installation group in LA, but the company behind these projects is Solar Provider Group, headquartered in Toronto. PLH LLC appears to be a property management company out of Oregon. Oakdale Ventures LLC is listed as a foreign (i.e., out-of-state) entity with offices in Chatsworth. Lazben Investments is headquartered in Van Nuys. Heizenberg Solar LLC filed as a business in California on June 7 and appears to be a Delaware corporation headquartered in Denver. No information could be found about Central Plaza. SunRay Power LLC appears linked to something called Lakewood Six Solar LLC in New York City.
A few take-aways from this second tranche:
We said after the first tranche data was released that it appeared that the program was off to a good start and the results for this second tranche appear to confirm that assessment. Now we need to see the success rate of these projects actually being developed.
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