renovate america bi-annual report · 2018. 2. 9. · repor ng start date (approx. july 1, 2017)...

Renovate America Bi-Annual Report

Copyright © Renovate America 2018All rights reserved.

Select Program acvity betweenJuly 1, 2017 and December 31, 2017.

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CaliforniaHERO Program

Table of Contents


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1.02.03.03.13.23.33.43.5

IntroduconExecuve SummarySummary ReportAssessment OriginaonsProduct Categories FinancedEconomic BenefitsDefaulted and Delinquent Assessments in CaliforniaAge Distribuon of Homeowners

Appendix: Overview of Methodology

33444566

1.0 Introduc on


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2.0 Execu ve Summary

California’s Senate Bill 242 (SB 242) contains data-repor ng requirements for administrators of PACE programs. Data repor ng provides transparency that is cri cal to be er understanding the PACE product, how PACE operates in the home improvement industry, as well as the benefits of PACE programs.

SB 242 requires PACE administrators to publicly report biannually topics such as the performance of PACE, the environmental benefits of PACE, the demographics of PACE borrowers by city, state, zip code, county and age. Specifically, requirements include: number of, aggregate amount, average amount of PACE assessments by city, county, ZIP; category, percentage, number, and dollar amount of PACE improvements (energy, water, etc.) by city, county and zip code; average and median amount of PACE assessments, by city, county and zip code; total amount of delinquencies/defaults; number and dates of missed payments a ributed to delinquencies/defaults; delinquencies and defaults broken down by city, county and zip code; for defaults specifically, the total number, percentage of total PACE by zip code, and years of default for each property; es mated energy/water savings, renewable produc on, jobs created, and GHG reduc on; and the number and percentage of property owners over 60 by city, county and zip code.

This report is produced by Renovate America, the administrator of HERO. It is a compila on of HERO ac vity across the state of California during the period of July 1, 2017 - December 31, 2017. Informa on contained in this report is based on es ma ons.

During the period of July 1, 2017 to December 31, 2017, Renovate America’s HERO Property Assessed Clean Energy program financed nearly$346 million in home improvements across 14,350 assessments in the State of California.

Nearly 75% of the assessments covered energy-efficiency improvements that are projected to save homeowners over $180 million on theiru lity bills over the expected life me of the products installed. Over 11,600 of the more than 19,000 energy-efficiency assessments involvedequipment that exceeds the enhanced energy-efficiency standards of the federal Energy Star program. For example, to qualify for the EnergyStar label, central air-condi oning units must carry a minimum seasonal energy-efficiency ra o (SEER) ra ng of at least 15. The average SEERra ng for central air condi oning units installed using HERO financing during the repor ng period was over 16.

Nearly a quarter of the assessments funded renewable-energy improvements such as roo op solar PV systems that are projected to savehomeowners over $223 million on electricity bills during the expected life me of the products installed.

More than 1,600 water-saving improvements were installed using HERO financing, which are projected to save over 1.67 billion gallons ofwater over the expected life me of the products installed. This is equivalent to the amount of water that would fill over 2,500 Olympic-sizedswimming pools.

The HERO-financed improvements during the repor ng period are projected to reduce carbon emissions by over 542,000 tons over thelife me of the products installed. This is equivalent to taking over 105,000 cars off the road for a year.

The home-improvement ac vity spurred by HERO financing during this period helped create an es mated 3,116 jobs and generated morethan $533 million in economic impact across the state.


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3.0 Summary Report

Total Assessments Total AmountFinanced

Average TotalAmount Financed

Median TotalAmount Financed

Total AnnualAssessment

Average AnnualAssessment

Median AnnualAssessment

$2,285$2,679$38,441,128$20,138$24,107$345,939,90514,350

3.1 Assessment Originaons

EnergyEfficiency

RenewableEnergy

WaterEfficiency

SeismicImprovement

% of Total Assessments

% of Improvement Total Financed 0.00%

0.00%

6.47%

7.45%

31.19%

24.67%

62.34%

74.29%

3.2 Product Categories Financed[1]

Product Type Average Efficiency Rang HERO Minimum Eligibility Requirement

Air Sealing 944.90 Reducon Target BPI, Energy Star or ASHRAE 62.2 Compliant

Air Source Heat Pump 16.06 SEER >= 14 SEER

A c Insulaon 40.44 R-Value >= 30 R-Value

Biomass Furnace 63.00 Efficiency % EPA Cerfied

Central Air Condioner 16.16 SEER >= 14 SEER

Cool Roof - Prescripve 0.24 Aged Solar ReflectanceAged Solar Reflectance: 0.15 (Steep); 0.5 (Low)

Duct Replacement 6.98 R-Value >= 6 R-Value

Electric Heat Pump Water Heater 3.01 Energy Factor (EF) >= 2.0 EF

Evaporave Cooler 2078.85 Air Flow (CFM) CEC Approved

Exterior Doors 0.27 U-Factor U-Factor: Any (Opaque); Any (<= 1/2-Lite); <= 0.32 (> 1/2-Lite)

Exterior Windows 0.27 U-Factor <= 0.32 U-Factor

Furnace 84.46 AFUE (%) Oil: AFUE >= 83%; Gas: AFUE >= 80%

Gas Tankless Water Heater 0.95 Energy Factor (EF) >= 0.9 EF

High-Efficiency Faucets 1.50 GPM <= 1.5 GPM

High-Efficiency Showerhead 2.00 GPM <= 2.0 GPM

High-Efficiency Toilet Fixtures 1.28 GPF <= 1.28 GPF

Mini-Split Air Condioner 18.68 SEER >= 14 SEER

Mini-Split Heat Pump 19.29 SEER >= 14 SEER

Natural Gas Storage Water Heater 0.69 Energy Factor (EF) >= 0.67 EF

Skylights and Tubular Daylighng Devi..0.40 U-Factor <= 0.58 U-Factor

Under Floor Insulaon 19.93 R-Value >= 19 R-ValueWall Insulaon 16.12 R-Value >= 13 R-Value

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3.2.1 Product Type Efficiency[2]


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Energy Star Other Grand Total

Improvements

Est. Annual Energy Savings

Est. Life me Energy Savings

Est. Annual Energy Bill Savings

Est. Life me Energy Bill Savings $180,273,123

$7,102,234

1,368,825,069 kWh

81,767,825 kWh

19,269

$55,892,626

$1,890,978

426,281,042 kWh

23,288,713 kWh

7,583

$124,380,497

$5,211,256

942,544,027 kWh

58,479,112 kWh

11,686

3.2.2 Energy Efficiency[3]

WaterSense Other Grand Total

Improvements

Est. Annual Water Savings

Est. Life me Water Savings

Est. Annual Water Bill Savings

Est. Life me Water Bill Savings $16,820,575

$430,324

1,677,230,550 gal

95,535,000 gal

1,642

$16,218,607

$419,031

1,627,247,800 gal

93,025,525 gal

1,408

$601,968

$11,293

49,982,750 gal

2,509,475 gal

234

3.2.3 Water Efficiency[4]

Improvements Average Solar PVSystem Size

Median Solar PVSystem Size

Est. Annual EnergyProduced

Est. Annual Energy BillSavings

Est. Life me EnergyBill Savings

$223,344,664$8,308,13133,730,231 kWh5.8 kW6.2 kW7,144

3.2.2 Renewable Energy[5]

Est. Annual EmissionReduc on

Est. Life me EmissionReduc on

542,054 tons CO230,047 tons CO2

3.2.5 Greenhouse Gas[6]

Est. Jobs Created Est. Economic Impact

$533,850,6953,116

3.3 Economic Benefits[7]


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15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+

0.6% 0.2%

7.6%8.9%

16.2%

21.1%

23.3%

25.2%

23.4%24.4%

16.2%14.8%

9.0%

4.3% 3.8%

0.9%

3.5 Age Distribu on of Homeowners[9]

Tax Year

Repor ng Start Date (Approx. July 1, 2017)Defaulted

Assessments Defaulted Rate Defaulted Amount

Repor ng End Date (Approx. December 31, 2017)Defaulted

Assessments Defaulted Rate Defaulted Amount

2015 - 2016

2016 - 2017 $1,990,238

$76,544

1.80%

0.33%

757

25

$774,924

$61,309

0.64%

0.23%

264

17

Defaulted Assessments

HERO data represent all homeowners who financed an assessment within the repor ng period and par cipa ng communi es.

Census data are based on the 2015 5-year American Community Survey and represent the en re state of California.

Tax Year

Repor ng Start Date (Approx. July 1, 2017)Delinquent

Assessments Delinquency Rate DelinquentAmount

Repor ng End Date (Approx. December 31, 2017)Delinquent

Assessments Delinquency Rate DelinquentAmount

2017 - 2018 0 $2,862,1572.62%1,699

Delinquent Assessments

Delinquencies refer to late payments during a given tax year. At the end of the tax year, property tax bills that are s ll delinquent are considered to be indefault. Delinquency rates are typically higher than default rates, because property owners whose tax payments are delinquent o en make latepayments prior to the point at which a default occurs. For example, property-tax tracking provider Lereta reported property-tax delinquency rates inCalifornia of 3.0%, 2.5% and 3.3% in 2013, 2014 and 2015, respec vely. By comparison, the California State Controller reported property-tax defaultrates in California of 1.6%, 1.3% and 1.2% in 2012/2013, 2013/2014 and 2014/2015, respec vely. Similarly, delinquency rates and default rates eachtend to decline over me as back taxes are paid.

CensusHERO

3.4 Defaulted & Delinquent Assessments[8]

N/A N/A N/A


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Appendix: Overview of Methodology for Calcula ng HERO Impacts

1 “% of Total Assessments” column sums to over 100% because some assessments fall into mul ple Improvement Categories.

2 The Product Type Efficiency table reflects only product types with defined efficiency ra ngs.

3 Energy savings and u lity bill savings es mates are modeled for each home energy efficiency improvement project using calcula on methodologies derived primarily from the U.S. Department of Energy (DOE) and the U.S. Energy Informa on Administra on. Savings es mates are customized to each project based on various inputs that are either specific to the property or predicted based on analysis of public survey data (including the California Energy Commission Residen al Appliance Satura on Survey (RASS), U.S. EIA Residen al Energy Consump on Survey (RECS), and the U.S. Census Bureau American Community Housing Survey), including: Climate Zone; Year Built; Condi oned Square Footage; Number of Occupants; Number of Stories; Roof Type; Wall/Floor/A c Insula on Levels; Air Leakage Levels; Window & Door Types; Hea ng & Cooling Type/Efficiency; DuctInsula on/Leakage Level; Water Hea ng Type/Efficiency; U lity Retail Electric Rates; Historical Electric Rate Infla on; U lity Retail Natural Gas Rates; Historical Natural Gas Rate Infla on; Product Lifespan.

4 Water savings and u lity bills savings es mates are modeled for each indoor and outdoor water improvement project using calcula on methodologies derived primarily from the U.S. Environmental Protec on Agency WaterSense program, California Department of Water Resources, and the California Ins tute for Public Policy. Savings es mates are customized to each project based on various inputs that are specific to each project, including: Property Loca on; Home Vintage; Number of Fixtures Replaced; Area of Lawn Replaced; U lity Retail Water Rate; Historical Electric Rate Infla on; Product Lifespan.

5 Renewable energy genera on and u lity bill savings es mates are modeled for each solar photovoltaic installa on project using calcula on methodologies derived from the Na onal Renewable Energy Laboratory’s PV Wa s® Calculator. Savings es mates are customized to each project based on the various inputs that are specific to each project, including: Property Loca on; System Size; Moun ng Type; Module Type/Efficiency; Inverter Type/Efficiency; U lity Retail Electric Rates; Historical Electric Rate Infla on; Product Lifespan.

6 Greenhouse gas (GHG) emission reduc ons are es mated for the resul ng energy savings of energy efficiency and renewable energy projects using calcula on methodologies derived from the U.S. Environmental Protec on Agency’s eGRID Power Profiler and GHG Equivalency Calculator tools. Savings es mates are customized to each project based on the following model inputs that are specific to the project: Property Loca on; Electric kWh Savings/Genera on; Natural Gas Therms Savings; Product Lifespan.

7 The es mates of the number of jobs created and overall economic impact are derived by applying RIMS II mul pliers for the residen al home improvement industry to the total funded amount. RIMS II (Regional Input-Output Modeling System) is a regional economic model developed by the Bureau of Economic Analysis. The model is used to measure the regional impact of industry-specific economic ac vity.

8 Delinquency and default data provided in this report were obtained by David Taussig & Associates from publicly available sources. These data reflect delinquencies and defaults as of the approximate start and end dates of the repor ng period, which runs from July 1, 2017 through December 31, 2017, and correspond to assessments originated between March 2015 and April 2017, the en re historical period for which HERO data are available. As reflected in this report, “delinquent” refers to an assessment installment that has not been paid by December 10 or April 10, as applicable, and“default” refers to one or more assessment installments that have not been paid by June 30. Delinquency and default data contained in the Summary Report sec on include HERO assessments across all public agencies par cipa ng in HERO statewide.

9 During the repor ng period, 5,191 property owners over the age of 60 obtained HERO financing statewide.

renovate america bi-annual report · 2018. 2. 9. · repor ng start date (approx. july 1, 2017)...

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