SOLARA: Green, Smart, Sustainable Development

Anne Wilson Vice President Real Estate Development

Community HousingWorks

IPED - Investing in the Future

February 21-22, 2008

SOLARAThe first apartment complex in CA fully powered by the sun

SOLARA

SOLARA = Photovoltaic Electricity for residents and common area

SOLARA Photovoltaic

Cost (approx) $1,103,000

Sources

CEC Rebates (State) $409,000 Tax Credit Basis Boost (State) 405,000 Investment Tax Credit (30%) (Fed) 208,000 Perm Mortgage (project based UA) 81,000

Total Sources $1,103,000

CA Green Initiatives

• CA Tax Credit Agency:-5% basis boost for PV-4% basis boost for energy efficiency/Green

-Note: 9% deals pay for PV 100%; 4% doesn’t • California Energy Commission/Public Utility

Commission-Rebates New Construction (decrease as more built)-Grants to Nonprofits to provide TA, training, modeling

CA – High Energy Efficiency Standards

California’s Energy code- “Title 24” since 1974 Perspective: If CA not changed code in

1974, would need 1 nuclear plant every 8 miles between San Diego and San Francisco!

Per Capita Energy use in CA – lowest in US, level

SOLARA exceeded CA Title 24 by >42% (2001) SOLARA exceeded national IBC ASHRAE 2001

standards by 80%!

What is Green?

Not Just photovoltaic electricity What 5 elements make a project “green”?

Energy Efficiency - Reduce energy demand by 60-70%, use renewable energy to supply balance of demand

Renewable(s) – Energy Supply Water Efficiency Recycled / Recyclable Materials Indoor Air Quality (IAQ)

SOLARA Green Elements: Site

Public Art

Policy Needs - Funding

State and Local Gov must support PV and Green - Rebates work best

Federal ITC – excellent, preserve Local Gov - Expedite permits and review process Utility Companies – create incentive & expedite

programs Requires state by state policy changes

(federal Section 42 incentives? Programs to help projects plan retro fit of existing

utilities to address potential spike in op expenses.

SOLARA Photovoltaic