2020-103 Solar Rebate Program UpdateDate: December 11, 2020 Report No. 2020-103
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update on the City’s Solar Rebate Program funds.
BACKGROUND:
The City of Denton implemented the Solar Rebate Program in 2009 to help offset initial equipment
costs related to solar installations. Over the last several years, solar prices have decreased, leading
to an increase in solar installations, system sizes, and rebate amounts.
On October 1, 2020 the City of Denton's Solar Rebate Program started with a budget of $500,000
for solar installations. To date the City has received 91 solar applications qualifying for $422,193
in rebates. The remaining fund balance for the solar rebates is $77,807 and is expected to be
depleted by December 11, 2020—when 19 solar applications, currently under review, are
approved.
DISCUSSION:
The rapid disbursement of solar rebate funds is driven by the decrease in solar installation costs
which has led to an increase in installations and system sizes. To put into perspective, for FY2018-
2019, the $500,000 designated to the Solar Rebate Program lasted until June of 2019 (8 months).
For the FY2019-2020, $500,000 in rebate funds lasted until February of 2020 (3 months). For
FY2020-2021, solar rebate funds lasted until early December of 2020
(2 months).
It is also worth noting that customers are choosing to install solar systems without receiving a
rebate. If we compare FY2018-2019 and FY2019-2020 we see that while the total number of solar
installations increased by 56 from 132 to 188, installations that received a rebate actually decreased
from 116 to 108 but solar installations that did not receive a rebate increased 400% from 16 to 80.
Another factor contributing to the quick allocation of solar rebates is the size of the systems. Low
solar installation costs have allowed customers to purchase more solar equipment, which has led
to higher rebate amounts since rebates are based on the system's size. For example, the average
system size for FY2018-2019, FY2019-2020, and FY2021-2021 are 7.27AC kW, 7.60AC kW,
and 8.45AC kW, respectively.
This fiscal year it only took two months to commit the solar rebate funds entirely and we are on
track to exceed previous last year’s record installation numbers for systems that did not receive a
rebate.
Date: December 11, 2020 Report No. 2020-103
Below are a table and graphs showing the total number of solar installations per fiscal year since
2015.
Table A
Solar Installation and Rebate Award per Fiscal Year
Fiscal Year 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Rebates
Given 14 32 55 116 108 91
Installs
w/o
Rebates
2 13 27 16 80 N/A
Systems
Installed 16 45 82 132 188 14
Installs w/
Rebates
Pending
Revision
N/A N/A N/A N/A N/A 19
Graph A
STAFF CONTACT:
Chris Lutrick
(940) 349-7152
Chris.Lutrick@cityofdenton.com
STAFF TIME TO COMPLETE: Juan Pagoada-Reyes – 1.0 Hours