55B - RESO - SOLAR PERMIT FEE WAIVER

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 4, 2011 TITLE: RESOLUTION AUTHORIZING A TWO-YEAR EXTENSION OF THE SOLAR PERMIT FEE WAIVER PROGRAM CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on I" Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a resolution authorizing a two year program to encourage solar installations by temporarily waiving permitting fees. DISCUSSION In 2008, the City Council adopted a two-year solar permit fee waiver program to encourage solar installations for both residential and commercial properties Citywide. The two primary uses of solar energy include using the sun to heat water and/or to generate electricity. Both rely on widely tested and proven technologies, however, their application has in the past been limited by the high acquisition/construction costs compared to potential cost savings. This dynamic continues to shift, however, given the ever increasing cost of energy as well as various programs offered by both the State and local utility companies incentivizing solar installations. Additionally, advances in solar energy manufacturing technologies, as well as expanded markets for solar energy products are continuing to improve the cost/benefit equation. Prior to the adoption of the solar permit fee waiver, the city processed relatively few solar energy projects (less than five projects per year). This number has increased substantially, and in 2010, the City processed over 40 solar permit applications, a 227 percent increase from 2009 (Exhibit 1). This increase is consistent with growth in solar projects statewide as California leads the nation in solar installations with nearly 77,000 installations generating 779 megawatts. Amongst California counties, Orange County ranks 6th in Megawatts installed and 4th in number of solar installations. Studies have shown that an average sized residential solar installation will save 50- 65 percent on monthly electricity costs and offset the equivalent carbon dioxide (C02) emissions of driving a car 22,600 miles. The City's review of solar energy projects involves both plan check and inspection services. The amount of time required for these reviews depends primarily on the size and complexity of the solar installation. For example, a passive solar water heater requires an average of one staff- hour to review while a large commercial or industrial solar installation may require as many as ten staff-hours. 55B-1