CALSSA Survey of Member Companies •  CALSSA surveyed its members on the impacts of COVID on their businesses •  Responses received 4/16-4/21 •  212 respondents - including residential installers, commercial project developers, engineering firms, financers, manufacturers 1 COVID Impact on Business 1% 1% 6% Extremely Negative 46% 46% Somewhat Negative No Change Slight Improvement Significant Improvement 2 Layoffs, Furloughs, Pay Cuts Shut down 24% 30% Companies report laying off 21% of employees. If this is true across the whole industry, it equates to 15,000 layoffs. Furloughs only Layoffs only Pay cuts only Furloughs and layoffs 13% 4% 3% Layoffs and pay cuts 5% 7% 3% Furloughs and pay cuts 11% All three None of the above 3 Workforce Cut Job Loss by Size of Company 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 6-10 11-25 26-50 51-100 101-250 More than 251 Number of Employees Before COVID 4 Impact on Sales 2% 1% 8% Shut down completely/Not doing business at this time Sales have declined more than 50% Sales have declined 25-50% 11% 17% Sales have declined 5-25% 40% 21% No change Sales have increased 5-25% 5 Permii Daia 1250 1000 750 500 250 California 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/2 3/9 3/16 3/23 3/30 4/6 4/13 Data Sources: San Jose, Sacramento, San Diego San Diego County, Fresno, Stockton,Clovis, Oakland, Contra Costa County, Victorville, Placer County, Fremont, Kern County, Sacramento County, Los Angeles, San Francisco. GALIFUHNIA SULAH STORAGE ASSDUIATIIJN Source: Ohm@Ana ytiCS 6 The Hole Is Getting Deeper •  The longer the shutdown lasts, the harder it will be to bounce back •  Non-payment of invoices disrupts the whole value chain •  Leads go cold fast •  Hard to bring back jobs without solid pipeline; hard to develop solid pipeline without employees •  Programs are disrupted when participants cannot meet objectives 7 “Shovel Ready” Resilient Businesses •  Residential installations can be made ready to install quickly •  Commercial installations take more planning but can still be deployed much faster than most infrastructure projects •  Supply chain is ready to deliver hardware 8 Solar Industry Optimism Next 3 Months Very optimistic Somewhat optimistic Next 6 Months Neutral Somewhat pessimistic Very pessimistic Next 12 Months 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9 Solar & Storage Pipeline Projects in Pipeline Number of Companies Capacity in Pipeline Number of Companies 1-25 projects 126 10-100 kW 55 26-50 projects 18 101-400 kW 38 50+ projects 28 500+ kW 21 1 MW+ 47 10 Three Levels of Response A Allow installers to work under safe conditions and allow customers to invest in energy security and savings B Short-term changes to program rules where COVID makes compliance difficult or impossible C Encourage local energy development as economic stimulus Service planning timeline and coordination 11 A. Allow Market Activity •  PG&E should resume performing disconnects immediately •  CPUC should provide guidance to state and local health officials that customer-sited energy installations are key part of energy infrastructure and community resilience •  Local jurisdictions are generally to be commended for their efforts to issue permits and perform inspections but more need to be done 12 B. Address Program Rules for COVID-Related Problems •  Demand response providers that cannot shed load because there is no load to shed should not be penalized •  SGIP field discharge data should not be required if situation prevents discharge •  Relax cycling requirement where needed •  SGIP PAs should announce that they will grant extensions to installation deadlines due to COVID delays •  CSI-Thermal termination date should be extended (needs legislation) 13 C. Economic Stimulus •  Simplify SGIP rules •  Virtual “no touch” inspections – promised a year ago; no reason for delay •  War room mentality to fix database and implement pre-approved equipment in the portal •  Accelerate incentive payments to help cash-strapped companies begin projects and bring back idle workforce •  Grant full RA credit for discharge from battery fleets •  Technical assistance for microgrid customers •  Paid consultant for system design •  Utility help for interconnection •  Grants for microgrids at schools and critical facilities; Tax credits for energy storage; ITC extension •  Economic stimulus mentality to get people back to work, maximize multiplier effect in local communities 14 ThankYuu! Brad Heavner Policy Director BALIFUHNIA SIJLAH STUHAGEASSUBIATIUN brad @Calssa.org