Municipal Services Committee - Item 3 - SOLAR SYSTEM INSTALLATIONS & PERMITTING PROCESS

Sep 13, 2026

Email correspondence supporting Agenda Item 3 on solar system installations and permitting, referencing an MSC presentation delivered on April 8, 2025. The correspondence summarizes slide content changes from a November 12, 2024 baseline, highlighting a major revision to mid-day customer credit ($0.1381 per kWh) and its impact on household savings calculations. It clarifies that customer savings does not equal ROI, adds new discussion points on grid benefits and strategic plan direction, and evaluates which slides show no or minor progress since November. It urges policy and code updates to advance rooftop solar aligned with Resolution 9977.

LanguageEnglish

CategoryLetters

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Pages2

Reading Time1 min

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Agenda Item 3: Solar System Installations & Permitting Process

Key revisions to customer credit and bill calculations

Clarification: savings vs. ROI

New information and progress assessment

Policy/code update recommendations

From: To: Jones, Justin; Rick Cole; Hampton, Tyron; Lyon, Jason Cc: cityclerk Subject: Item 3. SOLAR SYSTEM INSTALLATIONS & PERMITTING PROCESS Date: Monday, April 7, 2025 10:16:19 PM [ ] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you know the content is safe. Report phish using the Phish Alert Button. For more information about the Phish Alert Button view article "KB0011474" on the DoIT portal. The slide presentation for Agenda Item 3 is little changed from slides for a presentation to MSC on November 12, 2024 (2024-11-12-Municipal-Services-Committee-Agenda.pdf Item 2) . Most slides are identical or have only minor alterations and updates. MAJOR REVISION is found in Slide 14-Mid-day Credit: Customer CREDIT of $0.1381 per kWh (pdf Page 46), formerly Customer CREDIT of $0.2291 per kWh (11 .12.2024 pdf Page 46) . This change is reflected in the calculations on SLIDES 16 (11 .12.2024 and 04.08.2025) . For the November 2024 presentation, Mid-day Customer Credit was $0.2291 per kWh (Total Energy Credits) . For the April 8, 2025 presentation, Mid-day Customer Credit is $0.1381 per kWh, the amount of the Energy Charge Credit only. (See Table below) Bill Components (SLIDE 16) | Energy Charge with PCA | $0.1381 | Energy Charge Credit | ($0.1381) | | --- | --- | --- | --- | | Transmission Charge | $0.0161 | Renewable Energy Credit | ($0.0250) | | Distribution Charge | $0.0575 | Bi-monthly Net Metering Credit | ($0.0660) | | Total Energy Charges | $0.2117 | Total Energy Credits | ($0.2291) | For household use of 750 kWh per month, the November 2024 calculation using Total Energy Credits yielded a savings of $108.03 per month while the April 2025 calculation using only the Energy Charge Credit would yield a savings of $87.45 per month but does not include the cost of energy purchased from the grid for total household use of 750 kWh/month as stated in the example. | NO Net Export (Export = Import) 11.12.2024 Example | | | | | | --- | --- | --- | --- | --- | | Behind the Meter | 500 kWh @ | $0.2117 | $105.85 | Internal Use: Full Retail Amt | | Behind the Meter | 125 kWh @ | $0.2291 | $28.64 | Export to Grid – credit/month | | Import from Grid | 125 kWh @ | ($0.2117) | ($26.46) | Total Energy Charge paid | | Amount Saved per mo. | | | $108.83 | Includes Import from Grid | | NO Net Export (Export = Import) 04.08.2025 Example | | | | | | --- | --- | --- | --- | --- | | Behind the Meter | 250 kWh @ | $0.2117 | $52.93 | Internal Use: Full Retail Amt | | Behind the Meter | 250 kWh @ | $0.2291 | $34.53 | Export to Grid – credit/month | | Amount Saved per mo. | | | $87.45 | Behind the Meter Only | | LESS: Energy Import Cost | | | | | | Import from Grid | 250 kWh @ | ($0.2117) | ($52.93) | Total Energy Charge paid | | NET SAVED per month | | | $34.52 | Includes Import from Grid | CUSTOMER SAVINGS DOES NOT EQUAL RETURN ON INVESTMENT (ROI) as stated in these slides. Return On Investment is a ratio that compares the net profit or gain from an investment to its cost. In the case of rooftop solar,“gain” would be total savings over time compared to the cost of installation, usually measured over a period of years. ROI helps assess the profitability of an investment by comparing the gain or loss to the initial investment cost. Two examples of important NEW INFORMATION are: Slide 8 – Solar Systems and Pasadena’s Electric Grid (pdf Page 40) which includes new discussion of Benefits, Opportunities, and Moving Forward; and Slide 17-Solar Program Case Studies: Pasadena, Burbank, Glendale, LADWP, Edison (pdf Page 49) . The Optimized Strategic Plan Update presented as Item 2 on today’s agenda makes clear that a major increase in rooftop solar (Distributed Energy Generation or “DER”) is essential to the success of Pasadena’s Climate Emergency Resolution 9977 mandating carbon-free electric power in 2030. However, the following slides with NO CHANGE o

FAQs

What is the major revision noted for Slide 14 regarding customer credit?

Slide 14’s mid-day Customer Credit is revised to $0.1381 per kWh from $0.2291 per kWh, and the change is reflected in subsequent calculations.

Why does the correspondence state that customer savings does not equal ROI?

ROI is defined as a ratio comparing net gain over time to the installation cost; the slides’ savings figures do not by themselves represent that profitability comparison.

What new information is highlighted from the April 8, 2025 materials?

The email cites Slide 8 on solar systems and Pasadena’s electric grid and Slide 17 on solar program case studies across Pasadena, Burbank, Glendale, LADWP, and Edison.

Sep 13, 2026

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