55B - RESO - SOLAR PERMIT FEE WAIVER

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MEMORANDUM To: From: Executive Director Planning & Building Agency Matt Foulkes, Management Aide Subject: SOLAR PERMIT FEE WAIVER PROGRAM ANALYSIS In 2008, the City Council adopted Resolution No. 2008-027 establishing a 2-year program to encourage the use of solar technology in the City. This memo will provide a brief background of the program and solar energy in California, an overview of the current ordinance and an analysis of Santa Ana's program to date. Backaround: Initial discussion of this program began with the City Council Development Committee as part of a larger effort to broaden the City's environmental agenda. The Committee recommended to the City Council at its February 7, 2008 meeting that the City adopts a pilot program to encourage installation of solar technologies in Santa Ana. The Committee felt that the opportunities to encourage solar technologies are immediate and represent a significant step toward creating a more sustainable community. The two primary uses of solar energy include: • Solar hot water systems - Using the sun to heat water, typically for pools and spas. • Photovoltaic systems - Using the sun to generate electricity. Total Installations - California 60,000 -- ------------ 40,000 L ---- 20,000 -- -- - Date: February 8, 2011 g ener gy prices an improvements in soar technology have resulted in a substantial increase in the number of solar installations in California over the last 3-years to over 50,000. This increase in the number of solar energy systems has occurred primarily at the lower end of the system size spectrum indicating the continued growth in residential solar installations. Ordinance Details: Average System Size (kW) 10.0 -- 8.0 6.0 ----- 4.0 2.0 0.0 00 m O r, N M ? Ln W ? 00 M m M O O O O O O O O O O 0) 0) O O O O O O O O O O N rl N N N N N N N N N N Solar installations require both a building and electrical permit as well as their associated plan checks and inspections. The two-year program waives these fees as an incentive to encourage solar installations. The fee waiver applies to all types of solar energy systems including both residential and commercial. Prior to the adoption of the program, the costs associated with offering free permits, plan check and inspections were calculated. The time required for processing was EXHIBIT 1 Both systems have been available for over 30-years but had seen limited use due to the high cost of installation and lack of efficiency. However, increasin d ' I 55B-3