2018-126 GreenSense Incentive ProgramDate: September 14, 2018 Report No. 2018-126
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
GreenSense Incentive Program Processes and Requirements
BACKGROUND:
The purpose of this report is to provide additional information requested by City Council during
the August 21 City Council meeting on the GreenSense Incentive Program.
DISCUSSION:
The Finance Department presented Denton Municipal Electric’s proposed budget for fiscal year
2018-2019 to City Council on August 21. During the Work Session, Council requested the
following:
1. Currently, the solar rebate cannot exceed 50% of the installed cost. Provide financial
analysis showing the impact of increasing the percentage to 60%, 70%, etc.
2. What are the pros and cons of implementing ‘roll-over’ solar power credits, similar to
phone roll-over minutes?
3. What zoning issues have come up regarding solar and what changes in zoning are needed
to allow more residential solar?
4. Additional flexibility for daytime charging of electric vehicles.
5. What would it look like if the solar rebate budget was divided between residential and
commercial installs?
CONCLUSION:
1. DME has reviewed the solar rebates given in the past three years. In both FY2018 and
FY2017, the average rebate was 18% of the installation cost. In FY2016, the average
rebate was 37% of the installation cost. Increasing the percentage cap for the solar
program would not impact the amount of rebate paid as the incentive level itself
effectively prevents the rebate from reaching 50% of the installation costs. (Staff will
likely propose to eliminate the cap in FY 2020’s GreenSense program).
2. If a customer were to have enough excess generation to cover their entire utility bill, a
credit will be applied for the following month.
3. Currently, there are no zoning restrictions or design criteria requirements for solar
photovoltaic systems.
Date: September 14, 2018 Report No. 2018-126
4. DME asks that electric vehicles be charged during off peak hours because the objective
of the GreenSense Incentive Program is to reduce energy peak demand and consumption.
However, there is not currently a mechanism in place to offer time-of-day pricing for
electric vehicle charging.
5. DME has reviewed solar rebates over the past three years. On average, commercial solar
installations comprise 16% of the rebate funds. If the budget were to be divided 20/80,
residential rebate funds would be $400,000 and commercial would be $100,000. Based
on this historical level of commercial rebates, a formal split of the GreenSense rebate
budget is not likely to provide any additional funds for residential rebates, but could be
reconsidered for FY 2019-2020.
STAFF CONTACT:
George Morrow, DME General Manager
(940) 349-8487
George.Morrow@cityofdenton.com