Sustainable Financing Model

for LMI Homeowners &

Recent Legislative Updates for the

Solar Industry In Texas

Pete Parsons

Executive Director

Pparsons@txses.org

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The Texas Department of Housing and Community Affairs has recently received federal government authority within their state plan to use LIHEAP/WAP funding for solar

• However, the rules and processes to deploy solar projects with LIHEAP/WAP funds have not been developed and so program implementation is stalled.

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TXSES secured the participation of Travis County for the pilot program

The pilot program was developed in Austin, TX, in partnership with financial assistance from Austin Energy but hit a bump with Travis County.

• TXSES went back to the State to identify state funding for the pilot.
• The State agreed to modify the existing contract with Travis County to do

the pilot.

• Contract is signed and Travis County is now identifying homeowners

Unlocking LIHEAP Funding for Solar �on Low-Income Texas Homes

To succeed, the pilot must:

• Develop a diverse workforce to successfully complete installations for income-qualified homeowners
• Meet savings to investment ratio criteria: SIR equal to or greater than 1.0

If the pilot is proven successful:

• Solar projects will be made eligible for LIHEAP funding across the state of Texas, greatly increasing solar access for income-qualified homeowners

Project steps in Texas:

• Travis County to identify installers
• Conduct a community meeting in Travis County to invite income qualified homeowner and renters to learn about the pilot. TXSES and Austin Energy to participate to be sure homeowners have realistic expectations.
• Develop Protocol to Scale Program across the State

Program Goals and Metrics

Existing team: TXSES, Austin Energy, Travis County

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Resources still needed: Existing relationships with income-qualified homeowners

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Activities:

Meetings to manage homeowner expectations

• Provide assistance with governmental forms
• Identify installers and manage installations
• Identify housing stock-solar suitable for pilot demonstration

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Proof-of-Concept Requirements:

Demonstrate Savings to Investment Ratio ≥ 1.0

25-year time period

Based on Year 1 savings, does not include escalator

GOAL: Install 3 kW solar systems on 10 income-qualified single-family homes at no-cost to homeowners

Austin-Area Pilot Program

Savings to Investment Ratio = equal or less than 1.0

Permitting - SB 1202

• Streamlines permitting for DER
• Applies to “Home backup power installations,” including BESS, DER, standby systems, and any associated equipment connected at <600 volts
• People authorized to review development docs or conduct inspections can do so without getting it reviewed by the authority; must follow any formats specified by the reg authority and notify reg authority within 15 days
• Specifies such people can use an automated system (SolarApp)
• Reg authority:
• Shall issue permits within 2 business days of receiving notice of the inspection/docs approval; construction can then begin
• Cannot impose fees related to review or inspection; need a fee schedule for any �fees related to permit issuance

Consumer Protection - HB 1640

• Requires the PUC to develop a guide of best practices, resources, and guidelines for prospective solar owners
• Guide must include:
• Suggested questions to ask the utility about its solar offerings (ex. net metering, rebates)
• Identification of provided services
• Design elements to consider for efficiency purposes
• Financial considerations like tax credits and financing costs
• Contact info for a PUC employee who can assist customers
• Utilities must include this link with each bill they send for at least the next 12 months

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Consumer Protection - SB 1036

- Powers and Duties

• Residential Solar Retailer Regulatory Act
• Prevails over all municipal ordinances relating to the topic
• Requires TDLR to adopt rules prohibiting deceptive residential solar retail tactics
• Requires solar retailers/salespeople to provide disclosures and educational materials when selling
• TDLR must regulate the format of a solar sales agreement and establish insurance requirements for solar retailers
• Permitted to collect administrative fees
• TDLR must develop educational materials informing consumers of their rights and may require solar retailers to provide customers with these

Consumer Protection - SB 1036

- Registration

• Requires registration for solar salespeople and retailers
• Have to provide registration info within each sales agreement
• Retailer applications must include:
• Name and registration number of each solar salesperson
• Evidence that the retailer has the required insurance
• TDLR can conduct a criminal history check of applicants
• Retailers are exempt from continuing education requirements

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Consumer Protection - SB 1036

- Practice by Registrants

• Retailers must supervise their salespeople and make “reasonable efforts” to correct violations of this bill
• Retailers and salespeople must comply with any code of conduct and the Truth in Lending Act
• Sales agreement for installation must give electrical contractor info and utility approval (if applicable)
• Buyer can cancel the agreement without penalty within 5 business days
• Third party lenders must cancel buyer loans if the buyer cancels the agreement

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Consumer Protection - SB 1036

- Enforcement

• Prohibited actions include:
• False implication of affiliation with a public utility or gov agency
• Failure to provide disclosure statements
• Violating no soliciting signs
• Allowing installation by someone who isn’t an electrical contractor
• TDLR executive director can deny or refuse to renew registration if the applicant violates these rules
• Can issue a warning and/or cease and desist letter before penalizing
• Penalty for violation: <$2,500 each, <$50k aggregate
• Penalty if a person over 55 was harmed: <$10k each, <$100k aggregate
• TDLR can order cancellation and refund of sale/lease if there’s a violation
• Doesn’t prohibit an injured party from suing

Pete Parsons

Executive Director

pparsons@txses.org

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www.TXSES.org