By Kevin Herrera
Daily Press Staff Writer

CITYWIDE — Residents and business owners may be able to generate enough energy to power the entire city, saving money while protecting the environment, according to a study on energy independence.

The study also found that conservation and efficiency measures could reduce the city’s energy consumption by as much as 38 percent, allowing residents to make a profit by selling the excess power they generate through the use of solar and thermal technologies.

The study was part of what’s been called a “community energy independence initiative,” approved in concept by the City Council last week as part of its efforts to protect the environment while also protecting residents and businesses from a volatile energy market, where the price for power can fluctuate greatly from month to month.

“We are future-proofing the community … making ourselves more energy secure and also improving the quality of our buildings by becoming more efficient,” said Susan Munves, City Hall’s energy and green building programs administrator. “We will be saving money that would otherwise be wasted on electricity, and we are protecting the environment.”

The solar study calculates that commercial buildings would account for about 30 percent of the total investment. Industrial and municipal buildings would represent 6 percent and 3 percent, respectively, with residential buildings accounting for the remaining 61 percent.

It also is expected that the initiative would substantially benefit the local economy by creating energy cost savings that may be re-invested locally. The installation of solar panels also may provide employment opportunities, according to the study.

The study identified 17,500 structures here that are physically suitable for the installation of rooftop solar electric or solar thermal systems. While it will take between 15 and 20 years to reach the goal of total energy independence, the council has instructed Munves and her staff to embark on a two-year pilot program to demonstrate how the initiative could work, as well as a cost-benefit analysis.

Current estimates put the cost of the two-year project at $966,000. The study found that the project could generate an estimated net savings of $375,863, with a reduction in carbon dioxide emissions in the amount of 430 tons.

Properties to be included in the pilot project include, but are not limited to, the Village multi-family residential complex to be located in the newly-designed Civic Center, the public beach club to be located at the former Marion Davies estate, the Civic Center parking structure and the Big Blue Bus facility.

A total of 50 buildings — public, private, commercial and residential — will be included in the two-year project, with more public buildings to possibly be added as the project progresses, according to the study.

There is some concern that the initiative will not be able to produce the type of energy generation outlined in the study conducted by Munves and her staff, and that once installed, the equipment will not last long enough to warrant such an investment.

Munves said those are questions she and her staff will answer as they develop a business plan and seek offers from companies who manufacture and install solar panels, turbines and other green technology.

According to Munves, her staff also will have to invest a lot of time and money into educating the public about the project and the benefits of installing solar technology.

Getting businesses and residents to jump on board, however, could prove difficult. According to a survey conducted by City Hall, less than half of the 250 property owners contacted said they were supportive of investing in an integrated energy system.

“The downside to this is that it requires substantial investment at first and the payback is not always fast enough for businesses and their short-term outlook for profits,” Munves said.

For commercial property owners, City Hall could enter into a public/private partnership with investment firms to provide owners with a lease/purchase option to finance and install photovoltaic, or solar electric systems on their buildings, according to the study.

Under that approach, the building owner would enter into a long-term power purchase agreement with the investment firm and receive a savings on Southern California Edison’s utility rate based on the kilowatt-hours produced by the installed systems. The firm would invest a significant portion of the money needed for each installation of solar or other technology and, in exchange, retain ownership of the system and accrue any rebates and tax incentives. City Hall could use its own bond financing to cover the remaining portion of the cost of the systems, be guaranteed reimbursement by the investors, and retain the solar renewable energy credits (SRECS) that could be later sold to pay for additional investment in renewable energy for the community.

For residential property owners, City Hall could solicit prospective hardware suppliers, installers, and local financial institutions to participate in the energy independence initiative. Residents could be offered a pre-qualified package of services and hardware at a reduced cost. After installation, each of the commercial and residential properties would be monitored to ensure that the upgrades perform as designed and, on an ongoing basis, each site would be monitored to calculate energy savings.

In 20 years, Munves said she hopes Santa Monica will be a leader in using renewable energy, with each home generating power from the rays of the sun. City Hall also could invest in technology that harnesses energy generated by ocean waves rolling into the Santa Monica Bay.

“We must be committed to moving away from fossil fuels,” Munves said. “Or else we will choke under global warming.”