Solar_Ready_An_Overview_of_Implementation_Practices.pdf

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Contract No. DE-AC36-08GO28308

Solar Ready: An Overview of Implementation Practices Andrea Watson, Linda Giudice, Lars Lisell, Liz Doris, and Sarah Busche

Technical Report

NREL/TP-7A40-51296

January 2012

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

National Renewable Energy Laboratory 1617 Cole Boulevard Golden, Colorado 80401 303-275-3000 • www.nrel.gov

Contract No. DE-AC36-08GO28308

Solar Ready: An Overview of Implementation Practices Andrea Watson, Linda Giudice, Lars Lisell, Liz Doris, and Sarah Busche

Prepared under Task No. SM10.17X6

Technical Report

NREL/TP-7A40-51296

January 2012

NOTICE

This report was prepared as an account of work sponsored by an agency of the United States government.

Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.

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This report was made possible through funding from the U.S. Department of Energy (DOE) Solar America Communities program. To learn more, please visit www.solaramericacommunities.energy.gov.

Acknowledgements

Thanks to Keyes and Fox, LLP; Amanda Bybee, Namaste Solar; Chris Klinga, Lighthouse Solar;

James Critchfield, EPA; Misty Conrad, Sarah Truitt, Jason Coughlin, Sheila Hayter, Jesse Dean, and Rachel Romero, NREL, for their contributions to this report.

http://www.solaramericacommunities.energy.gov/� iv

Table of Contents Introduction Solar Ready and Costs Solar Ready Legislation and Policy Solar Ready Certification Stakeholder Education and Communication Methods Conclusion Appendix A – Trade Organization Resources Appendix B – Sample Solar Ready Legislation Appendix C – Sample of Solar Ready Requirements or Practice by Jurisdiction

Introduction

According to the U.S. Census Bureau and U.S. Department of Housing and Urban Development’s January 19, 2011, report on new residential construction, 7.8 million new, privately-owned housing units were completed in 2010.1

A solar ready building is engineered and designed for solar installation, even if the solar installation does not happen at the time of construction. The solar ready design features, if considered early in the design process, are typically low or no cost. Attention to building orientation, available roof space, roof type, and other features is key to designing solar ready buildings. The Solar Ready Buildings Planning Guide, published by the National Renewable Energy Laboratory (NREL) in 2009, details the technical processes for making buildings solar ready.

These homes, if not compatible with solar technology, represent a large barrier to widespread solar deployment. Once a structure is built, structural and solar access issues can prevent a solar project from being cost effective, and, in some cases, can make it entirely infeasible. Currently, when developers and solar installers assess buildings as potential solar sites, they sometimes dismiss buildings that are incompatible with a solar installation. While solar could be pursued, the potential solar production is significantly reduced, making payback periods longer and financing less appealing. Homes and commercial buildings built “solar ready” offer a solution to overcoming this installation barrier to renewable energy.

Solar ready design is important if photovoltaic (PV) or solar hot water (SHW) technologies are to be installed on a building at any time during the building’s lifespan. Solar ready also allows owners to take advantage of a changing energy market. The economics for installing solar on a new building are not always compelling, but, in the future, that picture could change with rising electricity prices and/or falling solar technology costs. In some locations, installing SHW is now cost effective for new construction projects. Building a home or commercial building that is not solar ready exposes owners to the risk of not being able to take full advantage of future economic scenarios for solar electricity and hot water. Instead, the building owners have no option but to continue to buy conventional power or pursue solar with a lower return on investment due to the structural or solar access barriers on their buildings. While installing solar at the time of construction is encouraged, when this option is cost prohibitive, solar ready could be a standard and common alternative.

In cases in which it is not cost effective or feasible to install a solar system at the time of construction, creating a solar ready structure improves the cost effectiveness of solar when pursued at a later date. This eliminates barriers to future solar applications and facilitates market growth.

It is important to recognize that solar ready itself does not reduce energy use or replace conventional energy with green energy. Solar ready does not contribute toward carbon emissions reduction until actual solar capacity is installed. Instead, solar ready has the potential to act as a

1 Economics and Statistics Administration. New Residential Construction Report.

http://www.esa.doc.gov/sites/default/files/ei/documents/2011/January/new_residential_construction_december_201 0.pdf. Accessed April 2011.

2 L. Lisell, T. Tetreault, and A. Watson. The Solar Ready Buildings Planning Guide. NREL/TP-7A2-46078. Golden, CO: National Renewable Energy Laboratory, December 2009. Available online at http://www.nrel.gov/docs/fy10osti/46078.pdf.

http://www.esa.doc.gov/sites/default/files/ei/documents/2011/January/new_residential_construction_december_2010.pdf� http://www.esa.doc.gov/sites/default/files/ei/documents/2011/January/new_residential_construction_december_2010.pdf� http://www.nrel.gov/docs/fy10osti/46078.pdf� catalyst for future installations and market expansion by reducing balance of system costs at the time of installation. In order to see this benefit, solar ready must become a widespread practice.

This report will explore three mechanisms for encouraging solar ready design and construction:

solar ready legislation, certification programs for solar ready design and construction, and stakeholder education. These methods are not mutually exclusive, and all, if implemented well, could contribute to more solar ready construction.

Solar ready legislation is a way to mandate the uptake of solar ready practices. The Solar Ready Legislation and Policy section of this report describes the pros and cons of such an approach and discusses potential interactions with other policies. Appendix B includes sample solar ready legislation.

Certifying solar ready may occur through a solar ready certification program or through integrating solar ready into existing programs, such as the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) ENERGY STAR program3 or the U.S.

Green Buildings Council (USGBC) Leadership in Energy and Environmental Design (LEED)4

Education of stakeholders can occur in conjunction with solar ready legislation or certification or as a standalone effort. Education of stakeholders will be an important step in widespread adoption of solar ready practices.

program. Certifying a building or home as solar ready can work toward the long-term goal of reducing costs and carbon emissions over time. Certification helps the building owner advertise solar ready status and signifies the potential of the structure to take advantage of solar technologies later in the building’s life. In addition, certification helps raise awareness among property owners who may otherwise not have considered solar at all. However, certifying solar ready offers a reward for a measure that does not save energy, produce clean energy, or reduce emissions.

This report is intended for local, state, and federal decision makers as an overview and discussion of tools and methods for promoting widespread solar ready building practices.

3 ENERGY STAR. http://www.energystar.gov/. See “Certification”/“Designed for EnergyStar.” Accessed April 2011.

4 LEED Homes Rating System. http://www.usgbc.org/DisplayPage.aspx?CategoryID=19. Accessed April 2011.

http://www.energystar.gov/� http://www.usgbc.org/DisplayPage.aspx?CategoryID=19�

Solar Ready and Costs

When a building owner attempts to install solar on an existing building that is not solar ready, the owner may experience the following:

• Structural or solar access barriers that prevent installing solar due to insurmountable costs

• A less attractive financial picture due to reduced solar production

• An increase in cost to make the building compatible with solar.

All of these scenarios may slow or stop the rate of solar installations, and all can be avoided through solar ready building practices. This section explores the costs of solar ready, which can be used as background information for discussing the methodologies of promoting solar ready throughout this report.

Cost Prohibitive Scenario In some cases, installing solar on a pre-existing building is cost prohibitive. Structural barriers or solar access issues can create a scenario where it is not feasible to install solar. Table 1 highlights these issues, as well as the cost scenarios that could make a project infeasible, the potential fix with solar ready design, and additional comments.

Table 1. Cost Prohibitive Scenario

Structural or Solar Access Issue Potential Cost Solar Ready Fix Comments

Roofs unable to accept added load of PV or SHW system, especially if ballast system is only option

A cost-intensive roof reinforcement may be the only option, making a solar project cost prohibitive.

Design roofs for anticipated loads associated with a future solar installation during the initial building construction.

This varies by location and may be more common where roofs are not designed for snow loads or where wind loading is especially high.

Significant* number of roof obstructions

Roof obstructions may be numerous enough that the added cost of building around them or moving them, along with the loss of solar production, makes the project infeasible.

Group roof equipment on the north side of the roof or locate vents and other equipment to utilize non-rooftop space.

This will more likely make a project infeasible in the commercial sector.

A third-party financier—crucial to making many commercial solar projects move forward—may dismiss projects lacking sufficient continuous roof space.

Significant* shading Many things, including architectural features, other buildings, and vegetation, can cause significant shading. When the shading is very extensive and unavoidable, the economic case for solar is difficult to justify.

During the design phase, ensure that architectural features and the building’s position on the site minimize shading. Consider landscape architecture that does not shade the roof in the future.

Shading may be more common in highly vegetated areas or places with high-density buildings, such as large cities. The effect of shading on PV power production is greater than that to SHW thermal production.

* The actual value of “significant” will vary by region, sector, or technology.

An entity that could take advantage of a production-based local incentive would be more affected by production losses than one that could take advantage of an installed capacity-based incentive, although some installed capacity-based incentives do consider potential production.

Reduced Production Scenario In many cases, a building with structural or solar access barriers to solar can still be compatible with solar. However, the structural or solar access issues can increase up-front system costs or reduce system output. Structural issues such as roof load limitations require the need for structural reinforcement, in turn increasing up-front costs and total system size. Daily or semi-annual shading and roof obstructions that either shade or reduce the available roof space for solar can reduce the output of a solar system. Likewise, a non-ideal building orientation reduces system output. The example below highlights the difference in production when roof orientation is less than ideal.

Example: Effect of Orientation on PV

A 10-kilowatt (kW) PV array in Golden, Colorado, facing south and tilted 25° can be expected to produce 14,304 kW hours (AC) per year with an annual energy value of $1,201.00. (The state average electricity price is 8.4¢ per kW hour.) The same system facing east will produce 11,997 kW hours (AC) per year with an annual energy value of $1007.75.

A west-facing system will produce 10,999 kW hours (AC) per year with an annual energy value of $923.92. This represents a 16% to 23% reduction in PV production and cost savings when oriented 90° away from south. Table 2 presents a simplified financial analysis of this example.

Table 2: Effect of Orientation on Finances for a 10-kW PV Array in Colorado

Orientation Installed cost

Annual solar energy production value (8.4¢)

Cost after utility rebate program of $2/watt (this rebate based on installed capacity, not production)

Approximate cost after incentive mix, about 45% of cost (e.g., income tax credit, accelerated depreciation)

Simple payback period

South $60,000 $1,201.00 $40,000 $22,000 18.3 years East $60,000 $1,007.75 $40,000 $22,000 21.8 years West $60,000 $ 923.92 $40,000 $22,000 23.8 years

The example above illustrates that orienting a building to maximize solar production can shave years off the payback period for a solar installation. In the example, the utility rebate program is based on installed capacity, not system production. Some rebate programs degrade incentive levels for systems that are not optimally configured, but this degradation was not considered here. An incentive program based on production would further increase the simple payback periods for installations facing away from south. Similar calculations can be made to account for reduced array size due to roof obstacles or reduced production due to shading; however, these scenarios will vary greatly from site to site.

When confronted with a scenario in which expected solar production is reduced, some building owners may choose to pursue solar despite the less attractive economics, while others may choose not to proceed at all. Designing a solar ready building can prevent the production losses that negatively affect solar installation economics later in a building’s life. Solar ready buildings designed with continuous roof space uninterrupted by roof equipment, minimal roof shading throughout the year, and a roof oriented on an east-west horizontal axis can increase production and shorten simple payback periods.

Incremental Cost of Solar Retrofit There is always a cost associated with retrofitting a building to accommodate solar. With the proper solar ready preparations, these measures may cost less if done at the time of building construction. The examples below consider cost differences between preparing a building for solar during initial construction and after initial construction. Quantifying these incremental costs is difficult because of site variations. The scenarios below are examples of cost reduction scenarios, but these examples cannot be extended to every situation.

Example: PV System

In this example, the costs are calculated for making a residential building solar ready for a 10-kW PV system. For this example, there are three main measures associated with making the building solar ready that can increase the cost of construction. They include upsizing the electrical panel, installing conduit and wire from the roof to the electrical panel, and installing a combiner box on the roof in which to combine the wiring for the panels. The costs for these measures were estimated using the 2011 edition of RS Means Construction Databook. By these calculations, the building can be made PV ready for $1,729 at the time of construction. See Table 3 for the cost breakdown of the measures.

If there were no solar ready preparations made at the time of construction, the same preparations would cost $4,373 at the time of solar installation. The measures would be more costly after construction for a number of reasons. Installing the measures during construction could be completed by a general contractor already on the site instead of requiring a team of solar contractors to travel to the site. This results in a 75% savings in the labor costs due to reduced travel time. In this example, vent relocation and inhibited roof exposure require the solar panels to be installed on multiple pitches. Both of these additions result in additional expenditures. The cost of the materials was assumed to be the same whether the work is done during or after construction. In this example, the measures completed during construction saved $2,644.

Table 3: Cost to Make a Building Solar Ready5

During Construction After Construction Measures Equipment Labor Total Equipment Labor Total

Increase size of electrical panel $459 $480 $ 939 $459 $1,200 $1,659

Run conduit $374 $416 $ 790 $374 $1,040 $1,414 Relocate vents n/a n/a n/a - $ 300 $ 300 Install panels on multiple pitches n/a n/a n/a - $1,000 $1,000

Total $833 $896 $1,729 $833 $3,540 $4,373

In this example, implementing the solar ready measures during building construction costs 60% less than the measures would cost after construction.

5 Waier, P.R., ed. Green Building Cost Data. RSMeans, 1st Annual Edition, Norwell, MA: RSMeans, 2010.

Example: Solar Hot Water System

In this example, the costs are calculated for making a residential building solar ready for a three-panel, 96-ft2, closed-loop solar thermal system. It is assumed that the system utilizes .75-inch tubing, and that the existing hot water system requires the addition of “stub-outs” in order to allow the SHW system to be incorporated without depressurizing the domestic hot water system. For this system, there are three main measures that will increase the cost of the building construction. They include installing copper pipes from the roof to the utility room, adding tee joints to the existing system where the SHW system can be plumbed in, and adding SHW mounting hardware on the roof of the building. By implementing these measures during construction, the building can be made SHW ready for $1,588.

Table 4 shows the cost breakdown of the measures. If there were no solar ready preparations made at the time of construction, the same preparations would cost $4,645 as a retrofit. The measures would be more costly after construction for a number of reasons. Installing the measures during construction could be completed by a general contractor already on the site instead of requiring a team of solar contractors to travel to the site. In this example, the result is a 72% savings in the labor costs due to reduced travel time. In this scenario, there are vents that need to be relocated and roof exposure that cannot be optimized, resulting in panels that need to be installed on multiple pitches. Both of these additions require additional expenditure.6

Table 4: Cost to Make a Building SHW Ready

The cost of the materials was assumed to be the same whether the work is done during or after construction. In this example, the measures completed during construction saved $3,057.

During Construction After Construction Measures Equipment Labor Total Equipment Labor Total

Add mounting hardware SHW $8.00 $20.00 $28.00 $8.00 $50.00 $58.00 Pipes to roof $407.00 $1,109.00 $1,516.00 $407.00 $2,773.00 $3,180.00 Stub-out pipes $2.00 $43.00 $45.00 $2.00 $ 106.00 $ 108.00 Relocate Vents n/a n/a n/a – $ 300.00 $ 300.00 Install panels on multiple pitches n/a n/a n/a – $1,000.00 $1,000.00 Total $417.00 $1,172.00 $1,589.00 $417.00 $4,229.00 $4,646.00

In this example, implementing the solar ready measures during building construction costs 66% less than the measures would cost after construction.

6 Waier, P.R., ed. Facilities Maintenance & Repair Cost Data. RSMeans, 18th Annual Edition, Norwell, MA:

RSMeans, 2010.

7 Waier, P.R., ed. Green Building Cost Data. RSMeans, 1st Annual Edition, Norwell, MA: RSMeans, 2010.

Solar Ready Legislation and Policy

This section discusses solar ready legislation or policy tools that may be useful in promoting solar ready. In preparing the sample legislation in Appendix B, NREL worked with Keyes and Fox, LLP, to evaluate a variety of different approaches that have been taken by states and municipalities in requiring new building construction to be solar ready. Keyes and Fox, LLP, drafted the sample legislation in Appendix B to provide a starting point for jurisdictions interested in creating solar ready legislation.

There are a number of policies that could be considered when designing solar ready legislation and several that can act as standalone policies to promote solar ready. The following solar ready legislation discussion explains some of the choices reflected in the sample presented in Appendix B. This section also highlights some complementary policies and options that could strengthen the effectiveness of solar ready legislation.

Requiring solar ready construction through legislative or regulatory mechanisms has certain advantages, but may work best when combined with some of the other tools discussed below, such as certification programs or education strategies. One of the biggest challenges of legislation is the ability to craft stringent rules requiring buildings to be solar ready while also allowing developers to achieve established requirements in a manner well suited to a particular building type and a developer’s design goals. Working in coordination with developers and builders helps make legislation more politically feasible. It is also important that legislation enables the use of the most cost- and resource-efficient technologies as they evolve.

Currently, several jurisdictions have put in place some sort of policy that promotes solar ready construction (see Appendix C). However, there is currently little data on the effectiveness of these policies by metrics. More data, such as the number of new solar ready structures as a result of policy or the increase in the number of solar installations, needs to be collected on existing policies. Future policies should also plan for data collection and verification of policy effectiveness.

Mandating Solar Ready Buildings or a Solar Ready Option It is important to highlight the difference between solar ready legislation that mandates solar ready versus legislation that requires a solar ready option. A number of states have required that the option of solar readiness be expressly given to homebuyers at the time of construction. 8,9,10

8 New Jersey AB 1558.

Instead of imposing a requirement on new construction to be solar ready, this option focuses on educating the homeowner about solar technologies, providing them with the information to decide if the added cost of building solar ready is of value to them when they consider how future energy costs will impact their budget. Conversely, the sample legislation in Appendix B has been drafted to require that new residential and commercial construction be solar ready. One of the limitations of the “option” approach is that relatively few homes and commercial buildings http://www.njleg.state.nj.us/2008/Bills/PL09/33_.PDF. Accessed April 2011.

9 General Assembly of the State of Colorado: Section 1, Article 35.7 of title 38, Colorado Revised Statutes.

http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&fil e=1149_enr.pdf. Accessed April 2011.

10 Online Code and Environment Advocacy Network (Ocean). http://bcap-ocean.org/state-country/colorado.

Accessed April 2011.

http://www.njleg.state.nj.us/2008/Bills/PL09/33_.PDF� http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&file=1149_enr.pdf� http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&file=1149_enr.pdf� http://bcap-ocean.org/state-country/colorado� are constructed with the ultimate buyer in mind. Unless the developer or builder will be the ultimate owner of a structure, choosing the solar ready option may not be appealing.

Consideration of the variety of owners of a building over its usable lifetime increases the appeal of solar ready construction so that a long-term tenant or future owner could easily install solar.

Installing a solar system on a solar ready building can be more cost effective than installing solar on a building that is not designed to accommodate solar. Some features, such as orientation or shading, may not be reasonable to modify at a later date (see “Solar Ready and Costs” section).

In addition, requiring a building to be constructed solar ready from the start may provide additional motivation for initial building owners to look more seriously at solar options in connection with the initial investment in constructing a residential or commercial building.

Along with mandating solar readiness for new construction, it may be effective to also require that future building owners be informed of options for having a solar system installed at the time a building is first constructed. Colorado and New Jersey have instituted requirements of this sort.11,12 Software tools, such as In My Backyard,13 can provide information to an owner/developer on what a building’s exposed surface area could produce with a PV array installed. Likewise, the NREL SolOpt14

Solar Ready Sample Legislation tool can be used to determine if solar hot water or PV makes more sense for a given amount of roof space on a particular building. Developers could be required to provide such information to educate buyers on the potential benefits of installing a solar system.

The sample legislation in Appendix B has been drafted such that state or local agencies have the opportunity to consider local conditions and policy appetite in promulgating detailed regulations for solar ready building requirements. Although detailed requirements could simply be included in statutory language itself, there are a number of advantages to having the detailed

11 General Assembly of the State of Colorado: Section 1, Article 35.7 of title 38, Colorado Revised Statutes.

www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&file=114 9_enr.pdf. Accessed April 2011.

12 New Jersey AB 1558. www.njleg.state.nj.us/2008/Bills/PL09/33_.PDF. Accessed April 2011.

13 NREL. In My Backyard. www.nrel.gov/eis/imby/. Accessed April 2011.

14 SolOpt Optimization Tool, available at the Solar America Communities website.

http://solaramericacommunities.energy.gov/Publications.aspx. Accessed April 2011.

Colorado HB 1149

In Colorado, HB 1149 was enacted in May 2009, requiring builders of single-family homes to offer solar as a standard feature to all prospective homebuyers. Builders are required to give the buyer the option to either have a PV system or a SHW system installed on the new home, or to have all the necessary wiring and/or plumbing installed so that the homeowner can easily add a solar system at a later date. The builder must also provide the buyer with a list, maintained by the Governor's Energy Office, of every solar installer in the area so the buyer can obtain expert help in determining if the home’s location is suitable for solar and what the estimated cost savings would be (General Assembly of the State of Colorado:

Section 1, Article 35.7 of title 38, Colorado Revised Statutes).

http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&file=1149_enr.pdf� http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont3/56DAD78B9D26BD5187257539006E7FF9?open&file=1149_enr.pdf� http://www.njleg.state.nj.us/2008/Bills/PL09/33_.PDF� http://www.nrel.gov/eis/imby/� http://solaramericacommunities.energy.gov/Publications.aspx� specifications included in regulations. Principally, regulations are generally easier to update and modify over time. Given that technologies change, the ability to update technical requirements without action from the legislature is important to providing necessary flexibility. However, legislators can include more prescriptive language about technical requirements in the legislation if preferred. The technical requirements that NREL currently recommends have been provided in footnotes to the sample legislation for further guidance to implementing agencies.

If time and resources are not available at an implementing agency level, an effective solar ready statute can be drafted that avoids the need for further regulatory action by including specific requirements directly in a statute itself.

Commercial and Residential Considerations The sample legislation in Appendix B applies to both commercial and residential construction.

Although many of the existing solar ready mandates adopted in the United States only apply to single-family residential buildings, there are similar cost challenges associated with modifying commercial construction that make extension of these mandates to such buildings a sensible approach. In particular, commercial buildings often have flat roofs that require ballast-mounted systems. Commercial building roofs need to be designed to withstand the added weight of solar systems. The varied nature of commercial buildings requires more detailed regulations to be adopted to accommodate a range of building types. States may also want to consider whether multi-family residential and multi-unit commercial buildings warrant separate regulatory guidance.

Sample Legislation and Incentives The sample legislation in Appendix B includes a provision to make it clear that compliance with solar ready mandates is not required for homes constructed prior to the statute to access any available incentives for solar installations. A new building that complies with the statute should also be able to access incentives under the theory that the costs of installation will be less.

Green Building Codes Solar ready requirements can be a low-cost and effective addition to existing green building codes. Jurisdictions with green building codes using a points-based system may consider assigning points for aspects of solar ready construction, while providing additional points for homes that have actual solar systems installed. The text box highlights the residential rating system used in Pima County, Arizona. While this program is designed to promote solar ready and ultimately increase the number of solar installations, preliminary data needs to be collected on whether this program is effective or if most developers choose not to comply.

Pima County Regional Residential Rating System – Tucson, Arizona15

The Pima County Regional Residential Rating System was developed to promote the construction of sustainable homes specifically designed for Pima County. Homes are rated and awarded points for environmentally responsible criteria including location, lot design, and development as well as resource and energy efficiency. Solar ready (SHW and PV stub-outs) qualifies for points within this system. There are four levels of certification available that range from Bronze (75–100 points) to Emerald (over 160 points). This voluntary, no-cost program is combined with the permit and inspection process. The procedure for obtaining the rating includes looking at site development and resource, energy, and water efficiency. Once one completes the procedure of complying with the requirements of the program, the building receives a certificate indicating the award level and becomes eligible to receive a building plaque to commemorate the achievement. For more information, see www.pimaxpress.com/green.

Homeowners’ Associations Jurisdictions may consider including language that addresses how solar ready requirements interact with limitations imposed by homeowners’ associations or common interest communities (CICs) rules. Although homeowners’ associations cannot trump requirements imposed by state law, homeowners’ associations that adopt rules directly or indirectly prohibiting the installation of solar equipment may undermine the intent of requirements that buildings be constructed solar ready. For example, states and localities include provisions that explicitly prohibit homeowners’ associations from implementing restrictions that prevent homeowners from installing solar energy equipment on their own property (e.g., Arizona16). In this case, jurisdictions may consider expressly preempting homeowners’ associations from prohibiting solar installations when enacting solar ready legislation. In Colorado, HB 08-1270 revised an existing law so that installation of renewable energy or energy efficiency equipment cannot be prohibited.17 The bill prevents CICs from making rules that would explicitly prevent the installation of such equipment; however, the bill allows reasonable restrictions based on aesthetic considerations, safety requirements, and—in the case of wind-electric generators—noise.18

15 Pima County Regional Residential Rating System, Tucson, Ariz. http://www.pimaxpress.com/green. Accessed April 2011.

16 Database of State Incentives for Renewables & Efficiency (DSIRE). Arizona: Solar Rights http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=AZ07R&re=1&ee=1. Accessed April 2011.

17 Colorado General Assembly. House Bill 08-120.

www.leg.state.co.us/clics/clics2008a/csl.nsf/fsbillcont3/3F45E0C88F60DD39872573680059F7E2?open&file=1270 _enr.pdf. Accessed April 2011.

18 Colorado General Assembly. Digest of Bills.

www.state.co.us/gov_dir/leg_dir/olls/digest2008a/PROPERTY.htm#08-1270. Accessed April 2011.

http://www.pimaxpress.com/green/� http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=AZ07R&re=1&ee=1� http://www.pimaxpress.com/green� http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=AZ07R&re=1&ee=1� http://www.leg.state.co.us/clics/clics2008a/csl.nsf/fsbillcont3/3F45E0C88F60DD39872573680059F7E2?open&file=1270_enr.pdf� http://www.leg.state.co.us/clics/clics2008a/csl.nsf/fsbillcont3/3F45E0C88F60DD39872573680059F7E2?open&file=1270_enr.pdf� http://www.state.co.us/gov_dir/leg_dir/olls/digest2008a/PROPERTY.htm#08-1270�

Historic Structures The sample legislation in Appendix B only applies to new construction, so it is not likely to impact existing historic structures. However, new construction within a designated historic district may be under restrictions that inhibit the ability of a developer, or eventual owner, to install a solar system. As with homeowners’ associations, it may be wise to consider expressly preempting any such restrictions or to provide for an exemption for particular circumstances.

Solar Access Laws Another potential companion provision may be the creation or enhancement of solar access rights. There is an exception from compliance in the sample in Appendix B for buildings that do not have sufficient solar resources to warrant the addition of solar readiness at the time of construction; however, this exception does not protect a building that may have sufficient solar resources at the time of construction from future obstructions that may diminish access to solar resources. To ensure that initial investment in solar ready construction maintains its value over time, it may be worth considering companion provisions to enact solar access protections.

Nearly 80% of the states and a number of localities have implemented some type of a solar access law. As these policies are designed to meet the unique needs of the constituents, they vary greatly. For example, some of these policies allow parties to voluntarily enter into an agreement to protect the solar easement rights of either or both parties (e.g., Georgia19). Other policies require that solar access is not impeded (e.g., the City of Sebastopol, California20

Like many solar ready policies, data is needed on the effectiveness of these laws to protect solar access and encourage solar installation.

, can place restrictions on vegetation and building construction if it impedes on solar easements).

Roof Warranties The requirements outlined in Appendix B require that roofs be designed to accommodate installations of solar PV systems and/or SWH systems. In light of this, it is important that roof warranties accommodate the ultimate installation of a solar system without the fear of a warranty being voided by the installation of a system. Jurisdictions adopting solar ready mandates may

19 Database of State Incentives for Renewables & Efficiency (DSIRE). Georgia: Solar Easements http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=GA01R&re=1&ee=1. Accessed April 2011.

20 Database of State Incentives for Renewables & Efficiency (DSIRE). California: City of Sebastopol Solar Access http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=CA33R&re=1&ee=1. Accessed April 2011.

*The Colorado law uses the term energy efficiency, which includes renewable energy like solar.

Session Laws of Colorado 2008, Second Regular Session, 66th General Assembly

Concerning the removal of restrictions on the use of energy efficiency* measures in connection with real property.

38-30-168. Unreasonable restrictions on renewable energy generation devices -definitions. (1)(a) A covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property that effectively prohibits or restricts the installation or use of a renewable energy generation device is void and unenforceable.

http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=GA01R&re=1&ee=1� http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=CA33R&re=1&ee=1� want to consider including requirements that will ensure that roof warranties are compatible with, and not voided by, the proper installation of a solar system.

Sample of Solar Ready Requirements or Practices by Jurisdiction Appendix C summarizes the jurisdictions that have adopted solar ready into existing legislation, codes, or ordinances. The DSIRE website was a primary source for these excerpted entries.21

Data on the effectiveness of these different approaches to solar ready would be useful for other jurisdictions looking to adopt similar policies. While outside of the scope of this report, compiling information on participation, increased number of solar ready structures, and increased number of solar installations as a result of these policies would help jurisdictions choose the most appropriate policy for their area. Similarly, new policies put in place should consider how to evaluate the effectiveness of those policies in promoting solar ready and solar installations.

A few others were obtained through direct e-mail or telephone contact with various jurisdictions.

Of the examples cited, most require measures related to PV and SHW systems. Technical requirements range from SHW stub-outs to full PV site/situational plans (see Tucson, Arizona).

It should be noted that there appear to be a number of jurisdictions where elements of solar ready are practiced, but not mandated (see the City of Boulder or Aspen/Pitkin County).

Incentives Incentives are a mechanism used by governments for the purpose of encouraging the use of technologies considered to have public benefits. These can be financial incentives that reduce the cost of clean energy technologies, which are typically advanced, higher-cost technologies.

Examples of financial incentives include tax credits or deductions, rebates, and reduced interest rates on loans. These increase access to clean energy technologies into broader markets.

Alternatively, incentives can be non-financial, in which a benefit other than money is used to encourage the use of technologies. Examples of non-financial incentives are expedited permitting and “density bonuses,” which allow developers to increase the maximum allowable development on a property in exchange for acting in the public good.22

Making incentives available could raise the profile of building solar ready as well as encourage developers to do so. Such incentives would need to be carefully structured. Creating financial incentives for solar ready buildings is complicated because the buildings result in a potential for clean energy development, not actual clean energy production. Therefore, calculating the expected public good resulting from solar ready development is challenging. Non-financial incentives may be more straightforward, as they result in little direct cost to the government, so justification for the implementation of the incentive may be more politically palatable.

While both types of incentives could be used to promote solar ready building, neither is currently used to do so. A literature review found no current incentives for solar ready construction.

21 Database of State Incentives for Renewables & Efficiency (DSIRE). See “State Incentives/Policies for Solar.”

www.dsireusa.org/solar/.

22 University of Wisconsin Center for Land Use Education. 2005. “Planning Implementation Tools: Density Bonus.”

www.uwsp.edu/cnr/landcenter/pdffiles/implementation/densitybonus.pdf. Accessed April 2011.

http://www.dsireusa.org/solar/� http://www.uwsp.edu/cnr/landcenter/pdffiles/implementation/densitybonus.pdf�

Conclusion Legislating solar ready construction is one method for promoting solar energy deployment. As opposed to the other methods discussed next, this method effectively requires developers to consider solar ready design. Pursuing solar ready through legislation should take into account a diverse group of stakeholders. Combined with training and educational tools, solar ready legislation could effectively increase solar ready design practices. Other methods for implementing solar ready may prove faster to initiate and offer more flexibility to stakeholders.

Solar Ready Certification

Certification Programs This section discusses the use of certification programs as an option for advancing solar ready implementation. Solar ready certification could act as a standalone program or be integrated into existing programs such as ENERGY STAR and LEED. This section will discuss both approaches.

Solar Ready Certification’s Potential Benefits In general, certification is used in green building to promote a standard and ensure desirable characteristics such as design, quality, environmental friendliness, safety, reliability, efficiency, and interchangeability.

If it is not cost-effective or feasible to install solar at the time of construction or retrofit, creating a solar ready structure will save money and time when solar is pursued at a later date. This would eliminate barriers to future solar applications and facilitate market growth. In addition, certifying a building or home as solar ready helps the building owner advertise solar ready status and signifies the potential of the structure to take advantage of solar technologies later in the building’s life. Lastly, it helps raise awareness among property owners who may otherwise not have considered solar from the outset.

To summarize the potential benefits, certification of solar ready:

• Ensures a certain level of quality. Currently, any property could be advertised as solar ready, but the lack of a standard definition or technical requirements prevents this claim from carrying any weight.

• Signifies the opportunity to take advantage of changing electricity and solar markets.

• Allows building owners an easy avenue for advertising the status of their properties or homes.

• Provides a measurable metric.

• Is voluntary and may be more palatable to building owners or developers than legislation.

• Can serve as a form of communication, awareness, and education on solar.

• May promote solar ready as a catalyst for market expansion by overcoming barriers that prevent solar projects from going forward.

Challenges of Solar Ready Certification One of the clear disadvantages of a solar ready certification program is that it does not guarantee installation of solar systems. If this becomes the norm, then the perceived value of solar ready programs could be diminished. Furthermore, solar ready itself does not reduce energy use or replace conventional energy with green energy, which raises the question as to whether solar ready should even be rewarded with a certification.

When certification schemes are adopted, they regularly cite statistics regarding improved standards, benefits, and financial savings. Yet, sometimes they can fail to reach their potential.

For certification schemes to work, they require proper design and management to achieve the intended results.23

A Solar Ready Certification Label

Similar to the ENERGY STAR or LEED label, guidelines could be established for achieving a solar ready label that stands separate from these existing programs.24

There are several advantages of a standalone solar ready label that is specific to the achievement of being solar ready. If solar ready is incorporated into a more comprehensive green building program, making a structure solar ready would likely be one of several choices of green building measures one could choose from to obtain certification. This could inherently dilute the number of structures that become solar ready. A solar ready label would only be applied to buildings that were indeed solar ready. Furthermore, a standalone solar ready label would be positioned to gain brand recognition, raising awareness about solar installations and solar ready buildings. This brand could be developed into a sticker or plaque that could be put on infrastructure such as electrical panels that have room for solar interconnection, conduit, or pipes to signify solar ready status to future users.

An easy way to make sure a building is solar ready would be to find out if it has been solar ready certified. This label could be government based like ENERGY STAR or nonprofit backed like LEED. Local jurisdictions could also consider creating a solar ready certification and label. Any building may be able to earn a solar ready certification label if the building meets the established requirements.

A disadvantage of having solar ready as a standalone label as opposed to part of an existing certification program might be the more limited visibility and participation. However, it remains a good option for local jurisdictions or other entities wishing to emphasize the importance of solar ready. Additionally, too many certifications and label programs for this sector could complicate the market to the point where the solar ready label has little value.

Solar Ready Certification Status

ENERGY STAR

From a review of existing solar ready initiatives, there does not appear to be a certification program dedicated exclusively to solar ready practices in the United States. However, at this writing, actions have been taken to incorporate solar ready into ENERGY STAR and LEED certification programs.

ENERGY STAR is a DOE and EPA program focusing on improving energy performance in buildings as a method of reducing greenhouse gas emissions. ENERGY STAR recognition is available as an indicator of superior energy performance. Projects can alternatively achieve Designed to Earn ENERGY STAR to recognize architects’ intent that buildings operate at

23 Peters, Katherine McIntire. “ENERGY STAR Program Comes Under Attack.” March 30, 2010.

http://www.govexec.com/dailyfed/0310/033010kp1.htm. Accessed April 2011.

24 ENERGY STAR. “Apply for the ENERGY STAR for Your Buildings.”

http://www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager_intro. Accessed April 2011.

http://www.govexec.com/dailyfed/0310/033010kp1.htm� http://www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager_intro� superior energy efficiency when built. Once the buildings are occupied and operating, they can earn the ENERGY STAR label.25

The EPA has developed renewable energy ready home specifications to incorporate into the ENERGY STAR Concept Home Version 4 program requirements (ENERGY STAR Version 3 will be fully adopted as the mandatory base program guidelines by January 1, 2012, followed by Version 4).

26 The content of Version 4 was rolled out before 2012, but it will be an optional guideline until it is completely phased into the program, replacing Version 3 (date of complete phase-in to be determined).27

In early 2012, the EPA plans to pre-release…