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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