By Steven Ùgalde, TXSES Marketing & Outreach Coordinator
The City of Houston and the Houston Permitting Center (HPC) have achieved remarkable success in the solar and renewable energy industries, largely attributed to the cutting-edge software development, SolarAPP+. Houston has fully embraced this pioneering platform, propelling the city toward a more sustainable future through rapid solar energy adoption.
SolarAPP+, the solar automated permit processing developed by the National Renewable Energy Laboratory (NREL), represents a groundbreaking online web portal meticulously engineered to revolutionize plan review and permitting procedures for residential photovoltaic (PV) systems while strictly adhering to code compliance.
Through its advanced functionality and utilization of model building, electrical, and fire codes, SolarAPP+ autonomously conducts a comprehensive compliance assessment based on input data, ensuring that proposed solar installations not only meet safety standards but also align with code requirements. The Authority Having Jurisdiction (AHJ) oversees the installation process, assessing practices, workmanship, and alignment with approved designs during thorough inspections.
At no charge to municipalities, this innovative platform significantly expedites the permitting process without incurring any costs for the cities. SolarAPP+ not only accelerates the integration of solar energy but also reinforces sustainable practices. TXSES is spearheading the initiative to support other communities in adopting this cutting-edge technology, thereby advancing SolarAPP+’s mission to streamline installation processes for installers and lower costs for consumers.
Inspired by Houston’s forward-thinking commitment, TXSES Executive Director Patrice Parsons and I hosted a city-wide gathering, uniting key stakeholders, including the HPC, NREL and the 12 approved installers, to draw insights from firsthand experiences of installers using SolarAPP+ and identify areas for potential enhancement.
The meeting presented a unique opportunity for a carefully selected group of stakeholders including passionate solar enthusiasts, seasoned industry professionals, and representatives from NREL to explore SolarAPP+’s multifaceted attributes, its prospective benefits, and the challenges to implement. The central theme revolved around the strategic transition from the pilot phase to full-scale implementation.
Throughout the session, the participants actively engaged in open dialogue with distinguished experts hailing from both NREL and HPC about the transformative influence of SolarAPP+ on the intricate solar permitting procedures. Attendees eagerly contributed their first-hand experiences with the platform, adding a practical dimension to the discussions.
A substantial amount of time and effort was invested in gaining a profound understanding of SolarAPP+’s impact on the solar sector. This meticulous examination allowed attendees to appreciate how this innovative platform is reshaping the industry’s landscape and promoting sustainability.
One significant proposal that emerged from these deliberations involved the implementation of an annual renewal license at the state level. This proposed license would require solar installers to submit new applications each year, ensuring their compliance with a code of ethics and addressing any pending or unresolved projects. Companies failing to address existing installation issues or customer complaints would be temporarily barred from initiating new projects until these issues were appropriately resolved.
One of the most pressing issues revolved around the poaching activities of fraudulent solar companies. These companies, through deceptive advertising, were undermining the integrity of the pilot program and other installers, resulting in financial losses for some consumers. Extensive discussions and collaborative efforts were initiated with other industry players to devise a viable solution to curb this fraudulent poaching issue.
TXSES is taking proactive steps to address these concerns. An all-encompassing meeting is scheduled for early November, which will include companies participating in the pilot program and TXSES’ esteemed business members. This gathering aims to foster collaboration and develop comprehensive strategies for legislative advocacy to enact policies that promote solar equity and justice.
To attend this crucial meeting, individuals are encouraged to become members of TXSES. Inquiries about membership can be directed to me at sugalde@txses.org. Detailed information about the meeting, which will focus on issues related to poaching and compliance, will be provided. For further insights into SolarAPP+, visit our website or feel free to reach out to me at sugalde@txses.org with any questions or concerns.
By Steven Ugalde – TXSES Marketing and Outreach Coordinator
Houston is propelling itself towards a more sustainable and eco-friendly future with a game-changing initiative – the new SolarAPP+. This trailblazing platform has been embraced by Houston to accelerate the adoption of solar energy and pave the way for a greener tomorrow. Intrigued by its visionary approach, TXSES Executive Director Patrice Parsons and I embarked on a visit to the Houston Permitting Center (HPC), keen to experience the transformative influence of SolarAPP+ on driving solar energy adoption throughout the city.
SolarAPP+, the Solar Automated Permit Processing, is an innovative online web portal designed to revolutionize the plan review and permitting process for code-compliant residential photovoltaic (PV) systems. By leveraging model building, electrical, and fire codes, SolarAPP+ independently conducts a comprehensive compliance check using data inputs ensuring the safety and adherence to code requirements of proposed solar installations. Authority Having Jurisdiction (AHJ) verifies installation practices, workmanship, and compliance with the approved design during the meticulous inspection process. This innovative platform expedites permit issuance while upholding the highest safety and quality standards, furthering the integration of solar energy, and reinforcing sustainable practices.
HPC representatives Jaime Cortes, Merle Nevill, Rick Nordquist, Ken Porter, Carlos Rubiano, Heath Wierck, along with Building Official Byron King and Program Director Steve Stelzer, shared valuable feedback regarding the notable reduction in the time required for solar companies to submit their permits for installation.
Their insights highlighted the positive impact of the streamlined process, contributing to increased efficiency and accelerated solar project approvals. “SolarAPP+ ensures consistency and reduces the time spent on repetitive tasks,” said Staff Analyst Wierck.
With online permit applications, electronic document management and automated notifications, approvals are accelerated, and paperwork is reduced. The platform is exceptionally user-friendly for installers, facilitating a seamless registration process and providing a streamlined approach to check the status of applications. This user-centric design ensures that installers quickly become familiar with the system, enabling them to navigate through the process efficiently and effectively.
Analysts have begun utilizing data analytics to identify trends and patterns in the permitting and inspection process. This helps in making data-driven decisions for future process optimization, ensuring that both residents and installation professionals receive proper permit approvals while fostering collaboration between different departments involved in the process. This promotes a more integrated approach, reducing delays and improving coordination. Currently, HPC has confirmed a total of 12 solar companies approved for operation through SolarAPP+.
Thanks to SolarAPP+, installers can now embark on their projects with confidence, knowing that the platform will expedite their permit approvals and ensure compliance with all necessary codes and regulations.
In just 18 months, SolarAPP+ has emerged as transformational for the solar permitting process at HPC making it efficient for both installers and homeowners. “TXSES is eager to help other communities adopt this innovative tool,” said Parsons.
To address and overcome challenges related to SolarAPP+, Parsons and HPC have announced plans to convene a comprehensive city-wide meeting for key stakeholders, including HPC and the 12 approved installers, to engage in an open and collaborative discussion. The primary focus of the meeting is to gain valuable insights from installers’ experiences with Solar APP+ and identify potential areas of improvement.
If you’re interested in learning more about SolarAPP+ and how it might work in your community, contact me, Steven Ùgalde, at sugalde@txses.org.
By Patrice ‘Pete’ Parsons | TXSES Executive Director
It’s June in Texas, another day of unrelenting headlines about excessive heat warnings and triple-digit temperatures and ERCOT asking us to conserve electricity. It’s not surprising that more and more Texans are looking to solar and storage to ensure continued electric service during grid emergencies.
Texas’ solar industry is in overdrive, and it’s not just because of the extreme weather.
With hardware costs down nearly 50 percent over the past decade in the residential and small commercial markets, coupled with the Inflation Reduction Act’s 30 percent tax credit for residential systems installed through 2034, the Texas solar industry can realistically plan for growth and hire more people to respond to the demand. Demand is also on the rise for batteries as homeowners combine solar with storage for reliable backup power. Storage is also eligible for the 30 percent tax credit.
But falling hardware prices and tax credits aren’t the whole picture.
Currently representing about 8 percent, soft costs like permitting, financing and installation make up a growing share of the total solar system’s costs. There is no standardized permitting process. Authorities Having Jurisdiction (AHJ) have their own set of rules and processes for solar that can take anywhere from two weeks to two months. Mistakes in the paperwork and it’s a do-over. This doesn’t include the interconnection process which can take up to six months in certain parts of the state. Ultimately, speed
In 2021 and in response to the overwhelming volume of residential solar permitting applications nationwide, the National Renewable Energy Laboratory (NREL), along with code officials, AHJs and the solar industry developed a standardized plan review software to run compliance checks and speed up building permit approvals for eligible solar rooftop systems. Known as Solar APP+ (Solar Automated Permit Processing), this free, innovative software is a lifesaver for permitting departments. Here are some key facets of the Solar APP+ software:
It integrates with existing government software.
It automates plan review, permit approval, and project tracking.
It standardizes up to 90% of standard system plans.
It provides an inspection checklist and final sign-off after installation.
According to a 2022 NREL report on Solar APP+ performance, communities that have adopted SolarAPP+ have saved more than 12,800 hours in plan review time, and projects are installed about two weeks faster, given that permits are issued instantly for code-compliant systems. This groundbreaking software has the potential to speed up installations and reduce costs while addressing climate change.
Currently, 15 AHJs have publicly launched SolarAPP+, and 16 more are piloting the platform including AHJs in Tool, Waco and Houston, Texas.
With the relentless growth of solar in the state, we want to help more Texas municipalities adopt Solar APP+, and thanks to our friends at the State Energy Conservation Office (SECO), we’ll be able to do just that.
Once approved by the Department of Energy (DOE), SECO will offer a $25K funding opportunity for each qualified municipality to adopt Solar APP+. In addition to SECO funding, NREL will support the municipalities with free technical assistance and hardware upgrades – this means NO cost to municipalities! It’s our intention to help a minimum of seven additional municipalities adopt Solar APP+ beginning October 1.
If you’re interested in helping your municipality adopt Solar APP+, email me at pparsons@txses.org
With the gaveling of Sine Die on May 29 for the 88th Texas Legislative Session, Texas successfully avoided the passage of catastrophic anti-renewable bills like SB 7 and SB 624. However, several bills, including those that would further subsidize the already taxpayer-laden fossil fuel industry have made their way to Governor Abbott’s desk. Here’s a brief overview of some of the more pertinent bills.
TXSES’ Wins in the Legislature:
Passed:SB 1699 (Johnson), permits aggregated distributed energy resources to participate in the ERCOT wholesale market without having to register with the PUCT as a power generation company. Additionally, the bill permits utility providers to offer and promote demand-response programs when possible and allows them to make use of grant funding for up to 10% of the costs. Demand response, as a concept, seeks to increase grid reliability by reducing energy consumption during times of peak demand through smart-metering technologies and increased energy efficiencies. Sent to Governor Abbott on May 29.
Passed:HB 3526 (Raymond), will forbid municipal or county governments from applying building codes to the construction of solar pergolas (patios with solar panels affixed). The bill was sent to Governor Abbott on May 18.
Killed: HB 4455 (DeAyala), would have increased the ability of homeowner’s associations (HOA) to restrict the location of rooftop solar. Specifically, under current law, if the homeowner can prove that an alternate location outside of the HOA-designated area would result in 10% more electrical generation, the homeowner may use the alternate location. HB 4455 would have raised that bar from 10% to 25%, a more difficult hurdle for solar homeowners. Fortunately, the bill died, having failed to make it out of the House Business & Industry Committee.
Killed:SB 7(Schwertner|King), would have mandated electric utility providers to pay exorbitant fees to generators during unreliable grid conditions. Additionally, the bill offered little regulatory oversight and would incentivize new dispatchable generation facilities. Expert estimates had pinned the cost of SB 7 from $10-$18 billion; however, legislators capped the cost to $1 billion annually. Large generators indicated this was not enough for them to build new facilities.
Killed:SB 624 (Kolkhorst|Middleton), would have imposed excessively stringent permitting processes on renewable energy generators and levied new application fees. Fossil fuel and nuclear plants were exempt from this permitting process. Additionally, non-dispatchable generators (aka renewables) would be required to pay more costly service fees than they currently pay. In sum, the bill required renewables to bankroll further development of fossil fuels.
TXSES’ Losses in the Legislature:
Passed: HB 5 (Hunter|Meyer|Burrows|Shine|Longoria), will replace Chapter 313, a recently expired program that helped oil and gas companies, chip manufacturers and other industries secure billions in tax abatements through local school districts. HB 5 also makes methane gas power plants cited in SB 2627 eligible for tax abatements. While the bill was scaled back from its predecessor and includes more oversight, it still excludes clean energy generators and battery storage facilities from receiving the benefits. HB 5 was sent to Governor Abbott on May 30.
Passed: SB 505 (Nichols) will require electric vehicle (EV) owners to pay a $400 registration fee for new first-time EVs, and a $200 annual registration fee each year after. Some purport that the bill is designed to make up lost revenues from gas taxes; however, the bill will punish rather than reward EV’s economically beneficial carbon reductions. EV advocates proposed a mileage system in addition to a lower registration fee. The bill was signed by Governor Abbott on May 13 and will become effective September 1, 2023
Passed:HB 2127 (Burrows|Meyer|Goldman|King, Ken|Raymond), will claw back the power of home rule cities dramatically. Should cities draft or pass any law that pertains to any of the contents of the Texas Agriculture Code, Civil Practice and Remedies Code, Business & Commerce Code, Finance Code, Insurance Code, Labor Code, Local Government Code, Natural Resources Code, Occupations Code, or Property Code, the law will be considered null. This will dramatically reduce the ability of cities to incentivize the adoption of renewables and disincentivize the continued use of fossil fuel generation. HB 2127 was sent to Governor Abbott on May 24.
Passed:SB 2627 (Schwertner), will establish a special fund for dispatchable (non-renewable) generators to receive 2% interest loans for up to 60% of the cost of developing new facilities. While the bill will not go into effect without the enabling legislation SJR 93, it will still withhold taxpayer dollars and provide up to 20% of costs in the form of bonuses. All the while generators have admitted that the extra financing is not necessary. SB 2627 was sent to Governor Abbott on May 29.
SJR 93, the enabling legislation for SB 2627, proposes a constitutional amendment to create the State Energy Fund Amendment and authorizes other funding mechanisms for the construction, maintenance, modernization and operation of electric generating facilities. It was filed with the Secretary of State on May 30 and will be on the general election ballot statewide on November 7, 2023.
Passed:SB 1290 (Perry) will direct the Texas Department of Agriculture and Texas A&M Agrilife + Forest Service to study the effects of the operation of, and the impacts of the disposal of solar, wind, and energy storage equipment. The bill was sent to Governor Abbott on May 29.
Killed: HB 3010 (Zwiener), would have streamlined the municipal permitting process for solar installations significantly. The bill would have required cities to use the National Renewable Energy Laboratory’s SolarAPP+ program to expedite permitting and reduce costly wait times. Despite maneuvering and attempting to add the language as an amendment to other bills, HB 3010 did not make it out of House State Affairs Committee.
Killed: HB 4542 (Moody), would have required utility providers operating outside of ERCOT to institute a net-metering buyback program for homeowners with rooftop solar that produces excess generation. HB 4542 was placed on the intent calendar on May 24.
Indeterminate Impact
Passed: HB 1500 (Holland|Bell, Keith|Canales|Goldman|Clardy), the sunset bill for the Public Utility Commission (PUCT), was one of the more harrowing pieces of legislation in the 88th. Under the Texas Sunset Act, all state agencies go through sunset review to determine if that agency is still necessary, or if some of the functions of the sunsetting agency should be moved to another agency in order to improve efficiency/effectiveness. While amendments are often added in sunset legislation, it’s considered bad practice. The bill was amended to include some provisions of SB 7, the so-called “performance credit mechanism,” and SB 624, a discriminatory permitting process for solar and wind projects only.
Included in HB 1500:
Caps the cost of the PCM at $1 billion. Renewables are excluded but battery storage should be able to participate.
Mandates the “firming” of renewables at the portfolio level by 2027; includes battery storage as an acceptable firming method.
Mandates the PUCT to conduct a study of cost allocation of ancillary services by 2026.
Requires the PUCT to establish a reasonable allowance for transmission-owning utility costs associated with interconnection.
Mandates the PUCT to implement a Dispatchable Reliability Reserve Service (DRRS) by the end of 2024.
Establishes a termination date for the Renewable Generation Requirement – known in other states as the Renewable Portfolio Standard (RPS) – on September 1st, 2025.
HB 1500 was sent to Governor Abbott on May 30.
Passed: SB 1015 (King), will amend the Texas Utilities Code to provide the Public Utility Commission of Texas (PUCT) with sole regulatory control over tariff/rate-making adjustments. Revisions replace the 60-day minimum with a 60-day maximum process and establish limits to the frequency with which electric utilities may request adjustments. The bill was sent to Governor Abbott on May 29.
We’ve been following three solar-related bills this session. For the most current information about any legislation, visit LegiScan.
HB 3010 by Rep. Zwiener (D-45) requiring municipal/county governments to use SolarApp+ (or another online program with similar capabilities) to streamline the solar permitting process. Never had a hearing in State Affairs Committee.
HB 4455 by Rep. DeAyala (Dist 133), amends Sec. 202.010 of the Texas Property Code changing the requirement from 10% to a 25% increase in energy production if the solar energy device is located in an area not designated by the property owner’s association. Never heard in House Business and Industry Committee.
SB 2257 Sen. Cesar Blanco (Dist 29) & HB 4542 Rep. Joseph Moody (D-78) never left their committees (Senate Business and Commerce and House State Affairs respectively). The bills would have required electric utility providers (municipal utilities, co-ops, and retail electric providers) to use a net-metering buyback plan for homeowners with excess generation to interconnect to the grid.
Authored by Schwetner and King. Currently, the bill has been placed on the Major State Calendar, and has passed out of both House and Senate committee assignments. The bill would establish a so-called “performance credit mechanism” with little regulatory oversight to help spur the construction of new dispatchable generation facilities. Estimates have pinned the cost at around $9B to taxpayers, however, the bill does have a $1B/yr annual limit which large generators have specifically indicated is not enough for them to warrant the construction of new facilities.
Authored by Kolhorst and Middleton. Currently referred to in the House State Affairs Committee. The bill would impose extreme permitting processes for utility-scale renewable energy facilities (specifically proposed solar and wind electricity generating facilities). Unless this passes out of committee tomorrow, it is DOA.
Authored by Perry. Currently, the bill has been placed on the Local, Consent, and Resolutions Calendars, and has passed out of both House and Senate committee assignments. The bill would direct the Texas Department of Agriculture and Texas A&M Agrilife + Forest Service to study the effects of the operation of and the impacts of the disposal of solar, wind, and energy storage equipment.
Authored by King. Currently, the bill has been postponed, but has passed out of both House and Senate committee assignments. The bill would establish an allowance to be applied on a per-megawatt basis, to assist in covering the costs of interconnecting new dispatchable, non-renewable energy sources to the ERCOT grid, and would act as a de jure subsidy for the fossil fuel industry.
Authored by Hughes. Currently, the bill has been sent to the Governor, where it awaits his signature. The bill would require any municipal climate charter (climate plan, action plan, vulnerability assessment, etc.), to be specifically approved by the state legislature before it can be voted on by the municipal voters and passed into municipal law. Since the Texas Legislature only meets only two years, it would significantly slow the adoption of local climate legislation. Additionally, the bill would limit the ability of municipalities, as the government closest to the people, to exercise their will, and would instead interject state politics into local issues.
Authored by Schwertner. Currently, the bill has been placed on the Major State Calendar, and has passed out of both House and Senate committee assignments. The bill would establish a special fund for dispatchable (non-renewable) utility generators to tap to receive 2% interest loans for up to 60% of the cost of developing new dispatchable generation facilities by 2029. While the bill would not go into effect without the enabling legislation of SJR 93, it would still withhold taxpayer dollars; would provide up to 20% of costs in the form of company bonuses; and, generators have admitted that the extra financing is not necessary. Although the bill is technically meant for building any on-demand power, it excludes batteries that are typically used to store wind or solar power.
SJR 0093 is authored by Schwertner. Currently, the bill has been placed on the Constitutional Amendments Calendar, and has passed out of both House and Senate committee assignments. The bill would serve as enabling legislation for SB 2627, another of Schwertner’s bills aimed at using taxpayer funds to subsidize the development of new natural gas powered electric generation facilities.
Authored by Moody, and identical to Blanco’s SB 2257. Currently, the committee report was printed and distributed to the general legislature after passing out of both the House and the Senate committees to which they were referred. The bill would require areas outside of ERCOT to implement net-metering programs for solar homeowners to receive buybacks for excess electricity produced.
Authored by Craddick, Capriglione, and Cooke. Currently, the bill has been laid on the table subject to call, having passed out of the House but not the Senate. The bill is in contrast to SB 1860. Rather than requiring approval from the politically-driven legislature, the approval of climate charters would have to come from relevant state agencies. The bill would be much more receptive to municipal charters, and would be significantly more nonpartisan.
Finally, other bills of relevance include the following:
SB 624Kolkhorst R (D-18) imposing permitting restrictions and fines on solar and wind energy projects in the state. Engrossed on April 24 and sent to House State Affairs on May 8.
SB 114 Menendez D (D-26) requires electric companies to create residential demand response programs, creating incentives for Texans to reduce energy use during peak electric demand periods. Engrossed on May 3, referred to House State Affairs on May 6; placed on general state calendar on May 23.
SB 1699 Johnson D (D-16) provides that a retail electric provider may aggregate distributed energy resources; and (2) a person may generate electricity if the person is aggregating distributed energy resources. Placed on General State Calendar on May 22.
SB 2112 Johnson D (D-16) would accelerate the state’s reliability process by establishing the Texas Power Resiliency Fund that would provide grants to critical public safety and health facilities — such as fire and police stations, hospitals, and nursing homes — to help them develop and plug into standard VPP (or microgrid) packages. Engrossed on April 25. Referred to House State Affairs on May 4 where it was left pending.
