Solar Powering Your Community Workshop · Steve Melink is the founder, owner, and president of Melink Corporation, a provider of building commissioning services, energy-saving kitchen

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Actionable Steps for Adopting Solar in Your Community

Wednesday, September 26, 2012

8:30 a.m.-12:30 p.m.

Hosted by

Ohio-Kentucky-Indiana Regional Council of Governments

About the SunShot Solar Outreach Partnership SolarOPs is a U.S. Department of Energy (DOE) program designed to increase the use and integration of solar energy in communities across the United States. The International City/County Management Association (ICMA) and ICLEI-Local Governments for Sustainability and their partners were competitively selected by DOE to conduct outreach to local governments across the United States, enabling them to replicate successful solar practices and quickly expand local adoption of solar energy. The U.S. Department of Energy SunShot Initiative is a collaborative national effort to make solar energy systems cost-competitive with other forms of energy before 2020. To drive down the cost of solar electricity, the U.S. Department of Energy is supporting efforts by private companies, academia, and national laboratories.

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8:30 Welcome (5-10 Min) Edwin Humphrey, OKI President

8:40 SunShot Intro (5 Min) & Agenda Overview (5 Min) Philip Haddix, Project Manager, The Solar Foundation

8:50 Solar 101 Module (30 Min) Philip Haddix, Project Manager, The Solar Foundation

9:20 Innovative Financing (45 minutes) Justin Barnes, Senior Policy Analyst, North Carolina Solar Center

10:05 Break (10 minutes)

10:15 Expert Panel (60 minutes) Steve Melink, Melink Corporation (20 minutes)

Local project successes and perspective on local challenges Siobhan (Shauvaun) Pritchard, Dovetail Solar &Wind (20 minutes)

Solar Successes in our Community Larry Falkin, City of Cincinnati (20 minutes)

Cincinnati’s solar utilization, solar power purchase agreement and LEED incentive

11:15 Panel/Audience Discussion (30 minutes) Moderated by Julie Jones, Green Umbrella ReNew Action Team Chair What are the opportunities and benefits of solar for our communities and region?

11:45 Wrap Up & Closing Remarks (15 minutes) Travis Miller, OKI Regional Planning Manager

12:00 Boxed Lunch, Networking and Opening of Mini Expo

Regional Solar Workshop: Greater Cincinnati

Agenda

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Justin Barnes co-coordinates the N.C. Solar Center's activities under

the SunShot Solar Outreach Partnership, a project funded by the U.S.

Department of Energy. In addition, Justin leads DSIRE's policy research in Maryland, New Jersey, New York and Pennsylvania, and contributes

heavily to DSIRE's federal policy research. Justin also manages

DSIRE's quantitative RPS research and has spearheaded research on

state-level public benefits funds that support renewables. His research

interests include innovative financing mechanisms, solar renewable

energy certificate (SREC) markets, and net metering in states with retail

electric choice. He joined the N.C. Solar Center in 2007. Justin received

an M.S. in environmental policy from Michigan Technological

Larry Falkin is Director of the City of Cincinnati’s Office of

Environmental Quality (OEQ). OEQ’s mission is to lead Cincinnati city government and the broader community toward sustainability and the practice of good environmental stewardship. OEQ has actively promoted energy efficiency and renewable energy use by Cincinnati City Government and the broader community. The City has completed energy efficiency retrofits on 70 City buildings, reducing energy costs by more than $1 million/year, and has completed solar panel installations on 20 City buildings, with another one currently under construction.

Prior to his current role, Mr. Falkin held positions with: the City of Kansas City, MO; the U.S. EPA; and the Environmental Compliance Oversight Corporation (ECOCorp). Mr. Falkin has a B.A. from SUNY-Binghamton and a J.D. from Pace University.

Philip Haddix, Project Manager: Philip Haddix manages a number of The Solar

Foundation’s projects and performs research in support of new and existing initiatives. Philip is

active in executing the foundation’s duties under the SunShot Solar Outreach Partnership

program and is assisting in the planning and implementation of the organization’s proposed SolarSmart Schools initiative. Philip’s prior professional experiences in the energy and

environmental arena include stints with the Sierra Club/Blue Green Alliance and the Solar

Energy Industries Association. He holds a Masters of Public Affairs from the School of Public

and Environmental Affairs at Indiana University with concentrations in Energy and

Environmental Policy and a bachelor’s degree in Anthropology from the University of West

Georgia. Philip has also been accredited as a LEED Green Associate by the U.S. Green Building

Council. University and a B.S. in geography from the University of Oklahoma.

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Julie Jones, Chief Marketing Officer for Solar Earth and Chair of the

renewable energy action team under the Green Umbrella, has a back ground in high efficiency and green energy projects for fortune 500 companies, major industrial customers, and municipality from her time with Cinergy Solutions (the on-site power division of Cinergy Corp. now Duke). With experience in both traditional and social media marketing, Ms. Jones, is uniquely qualified to put the spot light on solar power and raise awareness of the growing potential and innovation in the solar industry. A self described solar enthusiast, Ms. Jones has been watching the solar field for years and is posed to position Solar Earth as an industry leader.

Steve Melink is the founder, owner, and president of Melink Corporation, a

provider of building commissioning services, energy-saving kitchen ventilation

controls, and solar PV systems for the commercial and institutional building

industry since 1987. Customers include national restaurant, retail, supermarket,

and hotel chains, as well as schools, hospitals, and federal, state, and local

governments.

Steve is a licensed Professional Engineer in Ohio and holds a BSME degree

from Vanderbilt University and MBA from Duke University. He is a board

member of the USGBC Cincinnati Chapter, Cincinnati Green Umbrella, Green

Energy Ohio, and Advance Energy Economy. He is also a member of American Society of

Heating, Refrigeration, and Air Conditioning Engineers and Association of Energy Engineers.

Melink Corporation’s headquarters in Cincinnati is the first LEED-Gold NC and LEED-Platinum

EB certified office building in the State of Ohio. It is also Energy Star certified with a rating of

99 out of 100. In 2010 the Association of Energy Engineers awarded their building the Renewable Energy Project of the Year. And their building is one of the first in the U.S. and

world to become net-zero energy.

Steve’s goal is to help mainstream the sustainability movement through positive leadership. In

addition to walking the talk at his home and business, he has actively promoted energy efficiency

and renewable energy at the local, state and national level. He believes that energy is at the core

of some of our most pressing challenges in the U.S, including economic growth, national

security, environmental health.

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Siobhan C. Pritchard is Dovetail Solar and Wind’s Regional

Development Manager for Southwestern Ohio, Indiana and Kentucky.

Mrs. Pritchard oversees the coordination of project development, integrating the design and project management teams to yield cohesive

project implementation. She joined Dovetail Solar and Wind in July,

2009 after 16 years in technical medical sales with both Pfizer, Inc. and

Care Rehab. Mrs. Pritchard was awarded Green Energy Ohio’s

Southwest Ohio Volunteer of the Year in 2010 for her leadership role in

GEO’s fundraising campaign and is in the NABCEP certification process. She serves as a board

member for the Kentucky Solar Energy Society. Mrs. Pritchard holds a B.A. in Economics and

Business Administration from Transylvania University and a MBA from Vanderbilt University. Some of the projects she has developed include: The Turkey Foot Middle School in Edgewood,

KY, The Well Field Solar Project for the Village of St. Paris, OH, The PPA projects for The City of

Cincinnati, the Waste Water Treatment Plants for the City of Xenia, OH, commercial projects at

The Brazee Street Studios in Cincinnati, OH, BuyCastings Foundry and Offices in Miamisburg,

OH, and the Bowman and Landes Turkey Farm in New Carlisle, OH.

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Solar Powering Your CommunityAddressing Soft Costs and Barriers Introductions & Overview

Solar 101: The Local Solar Policy Environment

Understanding Solar Financing Options

Break

Agenda

08:30 – 08:50

08:50 – 09:20

09:20 – 10:05

10:05 – 10:15

Panel of Local Experts

Panelist and Audience Discussion

Wrap Up and Closing Remarks

Boxed Lunch, Networking, Mini-Expo

10:15 – 11:15

11:15 – 11:45

11:45 – 12:00

12:00

Introductions & Overview



Break

Agenda

08:30 – 08:50

08:50 – 09:20

09:20 – 10:05

10:05 – 10:15





10:15 – 11:15

11:15 – 11:45

11:45 – 12:00

12:00

J ti B Phili H ddiNC Solar Center / DSIRE

[email protected](919) 515 - 5693

Justin BarnesThe Solar Foundation

[email protected](202) 469-3743

Philip Haddix

About the SunShot Solar Outreach Partnership

The SunShot Solar Outreach Partnership (SolarOPs) is a U.S.Department of Energy (DOE) program designed to increase the useand integration of solar energy in communities across the US.

Increase installed capacity of solar electricity in U.S. communities

Streamline and standardize permitting and interconnection processes


interconnection processes

Improve planning and zoning codes/regulations for solar electric technologies

Increase access to solar financing options

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A comprehensive resource toassist local governments andstakeholders in building local


Resource Solar Powering Your Community Guide

gsolar markets.

www.energy.gov

Case Studies

Fact Sheets

How-To Guides


Resource Sunshot Resource Center

How To Guides

Model Ordinances

Technical Reports

Sample Government Docs

www4.eere.energy.gov/solar/sunshot/resource_center

‘Ask an Expert’ Live Web Forums

‘Ask an Expert’ Web Portal

Peer Exchange Facilitation


Technical Support

Peer Exchange Facilitation

In-Depth Consultations

Customized Trainings

www4.eere.energy.gov/solar/sunshot/resource_center

For more information email: [email protected]

PollWho’s in the room?

PollWhat is your experience with y psolar?

Enable local governments to replicatef l l ti d d

Workshop Goal

successful solar practices and expandlocal adoption of solar energy

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Explore benefits

and

Overcome barriers

Activity: Identifying Benefits

Ri h N D i S i Aft B k

What is the greatest benefit solar can bring toyour community? [Blue Card]

Right Now During Session After Break

Write answer on card Compile results Group discussion

Activity: Addressing Barriers


What is the greatest barrier to solar adoption inyour community? [Green Card]



Installed Capacity

Germany

http://www.map.ren21.net/GSR/GSR2012.pdf

y35.6%

Installed Capacity

Total installed solarcapacity in the US 4 GW

http://www.map.ren21.net/GSR/GSR2012.pdf

Capacity installed inGermany in Dec 2011 4 GW

The Cost of Solar in the US

Source: NREL (http://ases.conference-services.net/resources/252/2859/pdf/SOLAR2012_0599_full%20paper.pdf) (http://www.nrel.gov/docs/fy12osti/53347.pdf) (http://www.nrel.gov/docs/fy12osti/54689.pdf)

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Profits, Taxes, &


Overhead


Solar Soft Costs





Break

Agenda

08:30 – 08:50

08:50 – 09:20

09:20 – 10:05

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10:15 – 11:15

11:15 – 11:45

11:45 – 12:00

12:00

Solar Technologies

23

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

Solar Technologies

24

Solar Hot Water Concentrated Solar PowerSolar Photovoltaic (PV)

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Some Basic Terminology

Cell

Panel / Module


Array


e-e-

Capacity / Powerkilowatt (kW)

ProductionKilowatt-hour (kWh)

e-


Residence5 kW

Factory1 MW+

Office50 – 500 kW

Utility2 MW+

Local economy growth

Local jobs

Energy independence

Benefits of Solar Energy

Stabilizes price volatility

Valuable to utilities

Smart investment

29

Fact: Solar works across the US

Source: National Renewable Energy Laboratory 30

4.62 KWh/m2/day4.62 KWh/m2/day

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Regional Solar Market

10

15

20

nstalled Cap

acity

Source: IREC

0

5

2008 2009 2010 2011

Megawatts In

Ohio Indiana Kentucky

Comparison: Regional PV Financial Incentives

Ohio Kentucky Indiana

Rebates AEP Ohio: $1.50/W up to 50% of cost or $12k/$75k

‐ IP&L Rebate:$2.00/W up to 19.9kW

State Grants ‐ ‐ ‐

State Loans ECO‐Link; Revolving Loans for State ‐;Energy Loan Fund

gAgencies

PACE Financing Local Option ‐ ‐

Prod. Incentives SRECs TVA Programs IP&L Rate REPNIPSCO Feed‐in Tariff

Corp. Tax Credits ‐ $3.00/W;Max. $1,000 ‐

Pers. Tax Credits ‐ $3.00/W;Max. $500 ‐

Prop. Tax Incentives

OAQDA Incentives; Commercial/ Utility Exemptions

‐ Assessed value of PV system is exempt from Res/Com/Ind Prop. Tax

Energy Conservation for Ohioans (ECO-Link): Offers homeowners reduced interest rates on loans for

renewable energy or energy efficiency upgrades offered by participating banks; maximum incentive = 3% rate reduction for

up to $50,000 and 7 years of the bank loan

Ohio State Loan Programs

Energy Loan Fund: Offers public entities, manufacturers, and small

businesses loans for RE and EE upgradesPublic and nonprofit entities:

90% of project costs or $1 million

Multi-Sector, esp. Residential, Commercial, Public, Nonprofit

$1.50/W

Max incentive: 50% of system t t $12 000

AEP Ohio: Solar Rebates

costs up to $12,000 (Residential) or $75,000 (Non-residential)

Net metering and Interconnection to AEP grid

Surrender RECs (15 yrs.)

Renewable Portfolio Standard

Renewable Energy

Any electricity source

$e-


Fossil Fuel

$e- $REC

Utility

Renewable Energy

Two revenue streamsTwo revenue streams

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Solar carve-out

Renewable Energy

Any electricity source

Three Requirements:RPS solar carve out

Unbundled, tradeable credits

Solar Renewable Energy Credits (SRECs)

Unbundled, tradeable credits

Penalty for non-compliance– solar alternative compliance payment (SACP)

12.5% from renewables by 2024 for

IOUs and retail suppliers

At least half of this renewable energy

must be generated at facilities in Ohio

Alternative Energy Portfolio Standard

must be generated at facilities in Ohio

12.5% from advanced energy resources

by 2024

Solar carve-out of 0.5% of total electricity supply by2024

SACP: $350/MWh (2012 and 2013); declines by $50 bi-annually

Two Markets:

SRECs in Ohio

In-State (50%)Out-of-State (50%)PA, IN, KY, WV, MI

www.dsireusa.org / August 2012.


29 states,+ Washington DC and 2

territories,have Renewable Portfolio

Standards(8 states and 2 territories have

renewable portfolio goals).

Indianapolis Power & LightRate Renewable Energy Production (REP)15 year contract; $0.24/kWh (20 kW – 100 kW);

$0.20/kWh (100 kW – 10 MW)

Performance Incentives: IN

NIPSCO Feed-in Tariff:15 year max. contract term; $0.30/kWh (10 kW or less); $0.26/kWh (10kW – 2 MW); 500 kW allocated for small

scale solar (≤ 10 kW)

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TVA Generation Partners: Up to 50 kW; $1,000 + $0.12/kWh above retail;

10-yr. contract;

TVA Mid-Size Program Standard Offer:

Performance Incentives: KY

50 kW – 20 MW; variable seasonal/TOD rates from $0.035/kWh - $0.16/kWh; Avg. $0.055/kWh (3% escalation);

10 to 20-yr. contract

Net metering allows customers to exportpower to the grid during times of excess

Net Metering

p g ggeneration, and receive credits that can beapplied to later electricity usage

Net Metering: OverviewMorning

Customer Utility

Net Metering: OverviewAfternoon

Excess CreditsExcess Credits

Customer Utility

Net Metering: OverviewNight

Customer Utility

Solar covers 100% of the customer’s load, even at night!Solar covers 100% of the customer’s load, even at night!


Net Metering: State Policies

DC

43 states,+ Washington DC

& 4 territories,haveadopted a net

metering policy.

Note: Numbers indicate individual system capacity limit in kilowatts. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

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Net Metering: Market Share

More than 93% of distributed

Source: IREC (http://www.irecusa.org/wp-content/uploads/IRECSolarMarketTrends-2012-web.pdf)

PV Installations are net-metered

Provides a “report card” forstate policy on net meteringand interconnection

Net Metering: Resources

Resource Freeing the Grid

http://freeingthegrid.org/

Net Metering: Ohio

Source: Freeing the Grid

Net Metering: Ohio


Net Metering: Ohio

Recommendations:


Credit Net Excess Generation at theretail rate and provide the option ofindefinite rollover

Adopt safe harbor language to protectcustomer-sited generators from extraand/or unanticipated fees

Specify that RECs belong to thecustomer

IREC developed its modelrules in an effort to capturebest practices in state net

Net Metering: Resources

Resource Interstate Renewable Energy Council

metering policies.

www.irecusa.org

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5,000+ utilities

Interconnection

with unique interconnection procedures

Source: NREL (http://www.nrel.gov/docs/fy12osti/54689.pdf

1. Use standard formsand agreements

2. Implement expeditedprocess

Interconnection: Best Practices

process

3. Implement simplifiedprocedure for smallsolar arrays

Interconnection: Ohio

Recommendations:

Remove requirements for redundantexternal disconnect switch

Expand interconnection proceduresto all utilities (i.e., munis and co-ops)

IREC developed modelinterconnection proceduresin an effort to capture

Interconnection: Resources

Resource Interstate Renewable Energy Council

emerging best practices inthis vital area.

www.irecusa.org

Ohio Air Quality Development AuthorityAir-Quality Improvement Tax Incentives

Qualifying projects (including PV) financed through OAQDA bonds or notes can receive a 100% exemption from

personal and real property taxes

PV and Property Taxes

p p p y

Qualified Energy Property Tax Exemptions:Systems ≤ 250 kW exempt from utility real and property

taxesSystems > 250 kW also exempt, but requires payment in

lieu of taxes of $7,000/MWApplies to facilities that generate electricity for sale to 3rd

parties

Solar Access Laws:

1. Increase the likelihood that properties will receive sunlight

2 Protect the rights of property owners to install

Solar Access

2. Protect the rights of property owners to install solar

3. Reduce the risk that systems will be shaded after installation

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Solar Access

DC

Source: DSIRE

Solar Easements Provision

Solar Rights Provision

Solar Easements and Solar Rights Provisions

U.S. Virgin Islands

Local option to create solar rights provision

Ohio law allows property owners to createbinding solar easements for the purpose ofprotecting and maintaining proper access to

Solar Easements: Ohio

sunlight. Easements must be executed in writingand are subject to the same conveyance andrecording requirements as other easements.

A comprehensive review ofsolar access law in the US –Suggested standards for amodel ordinance

Solar Access

Resource Solar ABCs

www.solarabcs.org

Q & AQ & A




Break

Agenda

08:30 – 08:50

08:50 – 09:20

09:20 – 10:05

10:05 – 10:15





10:15 – 11:15

11:15 – 11:45

11:45 – 12:00

12:00

Understanding Solar Financing

Private

PACE

PPA/Lease

Sponsored Loan

New Model?

FinancingLoan

Public

QECBs

PPA/Lease

Non‐QECB Debt

Morris Model

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Third Party Ownership

Power Purchase Agreement


e-

DeveloperCustomer

e

$ REC

Pros

No upfront cost

No O&M costs

Cons

Market electricity price risk

Opportunities may be


Low risk

Predictable payments

Opportunities may be limited in some locations

Don’t keep RECs

3rd-Party Solar PV Power Purchase Agreements (PPAs)

www.dsireusa.org / August 2012

UT: limited to certain sectors

VA: see notes

RI: may be limited to certain sectors

Apparently disallowed by state or otherwise restricted by legal barriers

Status unclear or unknown

Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the statePuerto Rico

At least 22 states + PR authorize or

allow 3rd-party solar PV PPAs

Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making bindingfinancial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.

AZ: limited to certain sectors

What?– Tax credit or direct payment subsidy

Why?– Subsidy lowers the effective cost of capital

R l f S l ?

Qualified Energy Conservation Bonds

Relevance for Solar?– Financing public facilities (numerous)– “Green Community” programs (a few)

How?– State allocation or automatic allocation

Qualified Energy Conservation Bonds

Source: National Association of State Energy State Energy Officials: State Financing Energy Resources.

Local Examples???• Kentucky: Allocation mostly gone ($3M left) • Ohio: 11 issuances to date ($95M left)• Indiana: 2 issuances to date ($8.4M in state

allocation remaining)

Property Assessed Clean Energy

Property ownerpays assessment through propertytax bill

Proceeds fromrevenue bond or other financing provided to

Property ownersvoluntarily sign-up for financing and make energy

City creates type of land-securedfinancing districtor similar legal

(up to 20 years)property ownerto pay for energy project

improvementsmechanism (a special assessment district)

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Property Assessed Clean Energy


28 states,+ Washington DC,

authorize PACE (27 states have passed legislation and HI

permits it based on existing law).

.

*The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided.

PACE financing authorized by the state*

Innovative: Morris Model

Public Debt

PPA MORRIS MODEL

Source: NREL . 2011. Financing Solar PV at Government Sites with PPAs and Public Debt

Legality of PPA Model

Laws Governing Public Contracts

Replication of Morris Model

Laws Governing Bonding

Laws Government Procurement

Source: NREL . 2011. Financing Solar PV at Government Sites with PPAs and Public Debt

Innovative: PACE + PPA

PACE PPA Untested

Source. Vote Solar. 2012. Commercial Scale Solar Financing – PACE and Third-Party Ownership

Mitigate Soft Costs

$0.56 per Watt

Source: NREL (http://www.nrel.gov/docs/fy12osti/54689.pdf)

Customer Acquisition

SolarizeSolarizeGroup Purchasing

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Barriers

High upfront cost

Solutions

Group purchase

Solarize: Advantages

Complexity

Customer inertia

Community outreach

Limited-time offer

Benefits to Local Government:

Low implementation cost: $10,000 - $20,000

Solarize: Advantages

Quick turn-around: 9 Months

Long-term impact: Sustainable ecosystem

Solarize: Process

Select Marketing & Enrollment Site Decision

& Installer & Workshops

Enrollment Assessment & Installation

Solarize: Case Study

Source: Wikipedia

Harvard, MassachusettsPopulation: 6,520



&

Solarize Mass Harvard

Installer & Workshops


April 2011 Dec 2011

April 2011

Group Purchasing

Average PV Cost July 2011: $5.75 / watt

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&

Solarize Mass Harvard



April 2011 Dec 2011

May – July 2011

Marketing Strategy:

Electronic survey of 1,100 households

Email newsletters and direct mailings


Float in July 4 parade

Articles and advertisements in local newspaper

Facebook page and online discussion board

Source: Vote Solar



&

Solarize Mass Harvard429 households

signed up429 households

signed up



April 2011 Dec 2011

June – Oct 2011



&

Solarize Mass Harvard151 feasible households151 feasible households



April 2011 Dec 2011

Oct 2011



&

Solarize Mass Harvard75 Contracts75 Contracts



April 2011 Dec 2011

Oct –Dec 2011

Group Purchasing

403 kW capacity contracted

403 kW capacity contracted

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75 new installations totaling 403 kW

30% d ti30% reduction in installation costs

575% increase in residential installations

Solarize: Lasting Impact

Source: NREL

Lasting ImpactLasting Impact

A roadmap for projectplanners and solar advocateswho want to create their own

f l S l i i

Solarize: Resources

Resource The Solarize Guidebook

successful Solarize campaigns.

www.nrel.gov

Q & AQ & A




Break

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Break

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INSERT LOCAL EXPERT DECK




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Break

Agenda

08:30 – 08:50

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Break

Agenda

08:30 – 08:50

08:50 – 09:20

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10:15 – 11:15

11:15 – 11:45

11:45 – 12:00

12:00

J ti B Phili H ddiNC Solar Center / DSIRE

[email protected](919) 515 - 5693

Justin BarnesThe Solar Foundation

[email protected]

Philip Haddix

Activity: Identifying Benefits


What is the greatest benefit solar can bring toyour community? [Blue Card]



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[Results from Survey][ y]

Activity: Addressing Barriers


What is the greatest barrier to solar adoption inyour community? [Green Card]



[Results from Survey][ y]

Activity: Next Steps

What do you pledge to do when you leavetoday’s workshop? [Orange Card]

Net Metering: Virtual

Town HallTown Hall

LandfillLandfill

SchoolSchool

Police StationPolice Station

No direct connection necessary

Net Metering: Meter Aggregation

DC

Aggregation of some from authorized by state

B I ’ li d

• Ownership requirements

• Contiguous vs. non‐contiguous properties

• Multiple customers

• Multiple generators

• Modified system/aggregate system size limits

• Rollover rates

• Distance limitations

• Number of accounts

• How to address accounts on different tariffs

But…It’s complicated

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Process

Option 1: Direct Ownership

Decide on

Option 2: Third Party Ownership

Decide on Ownership Structure

Are you a taxpaying entity?

Do you have access to financing or available cash?

How does this compare to other opportunities?

C i l ?

Ownership Structure Decision

Can you enter into long-term contracts?

Do you want to own the system?

Do you have a municipal utility?

Do you need the RECs for compliance?

Process

Location Selection

Site Assessment

Finance Project

Installer Procurement

Construction

Decide on

Direct Ownership

ecide onOwnership Structure



Process

Location Selection

Site Assessment

Finance Project


Construction

Decide on

Direct Ownership




Who is using the energy?

Where is the energy being used?

Step 1: Location Selection

What is the user’s energy load?

What is the user’s energy cost?

Step 1: Location Selection

Rooftop Ground

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Process

Location Selection

Site Assessment

Finance Project


Construction

Decide on

Direct Ownership




Solar Access Rights

Interconnection

Wind loading

Step 2: Site Assessment

Roof age, type, & warranty

Electrical configuration

Slope, Shading and orientation

Usable acreage

Slope

Step 2: Site Assessment

Distance to transmission lines

Distance to graded roads

Conservation areas

Process

Location Selection

Site Assessment

Finance Project


Construction

Decide on

Direct Ownership




Direct purchase

Grant financed

ESCO/performance contracting

Step 3: Finance Project

ESCO/performance contracting

Loans

Bonds

Process

Location Selection

Site Assessment

Finance Project


Construction

Decide on

Direct Ownership




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Designs the project

Completes necessary permitting requirements

EPC = Engineer, Procure, Construct

Step 4: Installer Procurement

Works with the utility to file for interconnection

Assists in procuring components

Applies for incentives

Manages project construction

Process

Location Selection

Site Assessment

Finance Project


Construction

Decide on

Direct Ownership




Pros

Low – cost electricity

REC revenue

Cons

Large upfront cost

Long term management

Direct Ownership

Maximize underutilized spaces

Can’t take all incentives

Development risk

Performance risk

Process

Decide on

Direct Ownership

Location Selection

Developer Procurement

PPA & Lease Negotiation

Construction



Process

Decide on

Direct Ownership

Location Selection



Construction



Process

Decide on

Direct Ownership

Location Selection



Construction



RFP vs RFQRFP vs RFQ

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Avoid Five Common Pitfalls:

RFP/RFQ specifications are too restrictive or too unstructured

Competing measures of system efficiency

Step 2: Developer Procurement

Competing measures of system efficiency

Finding sufficient number of qualified bidders

Lack of effective O&M program

Lack of strong monitoring program

Source: NREL Webinar “Procuring and Implementing Solar Projects on Public Buildings: How to Avoid Common Pitfalls” December 8, 2010

In Santa Clara County, CA, nine municipalitiescollaboratively bid out 47 sites. Benefits include:

Step 2: Developer Procurement

50%

Source: NREL Webinar “Procuring and Implementing Solar Projects on Public Buildings: How to Avoid Common Pitfalls” December 8, 2010

10-15% reduction in energy cost

50% savings in administrative costs

Process

Decide on

Direct Ownership

Location Selection



Construction



Negotiation points: Fixed or floating electricity price

Price escalator

Contract term length

Step 3: Contract Negotiation

Contract term length

Property taxes

Liability

Performance guarantee

Regulatory risk

Process

Decide on

Direct Ownership

Location Selection



Construction



Pros

No upfront cost

No O&M costs

Cons

Market electricity price risk

Limited opportunity in


Low risk

Predictable payments

te oppo tu ty PA

Don’t keep RECs

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States that allow PPA providers to operate without being regulated as utility

State financial incentives – tax credit or rebate

Factors PPA Providers Look For

REC market

Good net metering and interconnection

PPA providers allowed to net meter

Case Study: Kansas City

Source: Solar Ready KC

The City will lease 40 – 80 rooftop grid connected 25 kW solar PV installations

Case Study: Kansas City

Decide on

Direct Ownership

Location Selection



Construction



Proposals due July 2012

Proposals due July 2012

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OKI Solar Workshop

Presenter Name

Title

Phone

Email

Cincinnati Zoo Solar CanopyCase Study

September 26, 2012

Project Goals

• Solidify Cincinnati Zoo as Nation’s Greenest

• Demonstrate and Educate the Region On Solar PV

• More Predictable Power Cost For The Zoo

• Spur Economic Development in the Uptown Area

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Project Challenges

• Cost Of Electric Power Relatively Low

• Additional Cost Of Elevated Structure

• Additional Cost Of Reconfiguring Active Parking Lot

• Additional Cost To Upgrade Electrical Infrastructure

• Major Incentive – 1603 Grant ‐Was Time Sensitive

$0 07

$0.08

$0.09

$0.10

$0.11

e Per kWh

4.1% CAGR

5.2% CAGR12.4% Gap

Electric Rate Inflation

$0.04

$0.05

$0.06

$0.07

2003 2004 2005 2006 2007 2008

Price

US Commercial US Industrial Ohio Commercial Ohio Industrial

6.0% CAGR

5.3% CAGR

10.4% Gap

• Aging Coal Fleet Will Require New Generation

• Utilities Must Meet Ohio Renewable Portfolio Standards– Renewable Energy– Advanced Energy: Clean Coal, Nuclear, Energy Efficiency

Utility Rate Shocks Are Possible

• Federal Energy Policy and/or Clean Air Regulation

• Smart Grid

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Global PV Industry Is Growing Rapidly

Growth 1978 – 2008 From 1‐MWp to >5‐GWp

5491.8

4000.0

4500.0

5000.0

5500.0

6000.0

2003-2008 CAGR: 61.5%

1.0 5.3 17.5 24.9 54.1 114.1252.0

1049.8

1984.6

3073.0

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

Cincinnati Zoo Savings – Years 8‐25

ua

l Sa

vin

gs

$500,000

$600,000

$700,000

$800,000

5% Inflation

Year

An

nu

$0

$100,000

$200,000

$300,000

$400,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

5% Inflation

7% Inflation

9% Inflation


Variable

Period

Amount

25 Years

Driver

No Upfront Cost

Energy Cost

Energy Cost Inflation

$0.08

5.5%

Current Rate

Future Expectations

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Financing Factors

• Type of Installation • Solar Radiation

• Current Electric Rates• Federal Incentives• State Incentives – SRECs• NMTCs• Debt Interest Rate• Equity Investor ROR

Questions?Q

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Copyright 2009 Dovetail Solar and Wind

Solar Makes Sense in Our Communities and Businesses

The City of PowellSt P iSt. Paris

Washington Court HouseThe City of Xenia

City of AthensThe City of Cincinnati

Siobhan C. PritchardRegional Development Manager

The Reasons Are ClearWhy Solar Makes Sense

Cost savings over the long term (longer now with SREC declines)

Locks in a long term stable cost of electricity

Moves a portion of operational expense to depreciable Moves a portion of operational expense to depreciable capital expense (if using a PPA, depreciation is monetized and passed to end user)

Reductions in greenhouse gas emissions

Enables you/your community or business to be viewed as an environmental steward

The Requirements/Attributes of Funded PPA’s

1. Investment Grade Host; What is Your Bond Rating?

2. Favorable Site Conditions

3. Quality Component Selection

4. Realistic Production Modeling

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City of Powell Live Cameras

Powell Building and System Monitoring

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TURKEY FOOT MIDDLE SCHOOL

384.5kW Roof PV System

58kW Solar Bus Canopy

Village of St. Paris Ohio

66kW Well Field

Washington Court House

250kW Service Center

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City of Xenia, Ford Road Waste Water

City of Xenia, Glady Run Waste Water

Glady Run Waste Water Treatment Plant, 158kW

Glady Run Waste Water Treatment Plant

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Athens Community Center225 KW Solar Canopies

City of Cincinnati, College Hill Recreation Center 158.76kW

City of Cincinnati, College Hill Recreation Ctr. 158kW

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City of Cincinnati, Beekman Garage, 209kW

Beekman Garage, 209.49kW

How Did These Municipalities Make Solar Work?

Powell: Federal Energy Efficiency Grant of which solar was a component

St. Paris: State of Ohio Department of Development 50% Grant, Monetized

Depreciation, SRECs, 30% Federal ITC

Washington Court House: State of Ohio Department of Development 50% Grant, Monetized

Depreciation, SRECs, 30% Federal ITC

City of Xenia: PPA, SRECs, Monetized Depreciation, 30% Federal ITC

City of Cincinnati: PPA, SRECs, Monetized Depreciation, 30% FITC

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The Take Away Points

Be Ready When Opportunity Knocks!

Work with Reputable, Experienced EPC Contractors

Start reviewing possible sites: Start reviewing possible sites: Flat, unobstructed land, or

Unobstructed rooftops with newer roofs

Close to load centers

Considerable loads, 200kW and above

Power costs of 8-9 cents per kwatt hour and above

Meadow Springs Farm

Bowman & LandesTurkey Farm

Cincinnati Zoo Schott Education Center The City of Washington Courthouse, Ohio

Twenty First Century Energy

Corp. Beightler Armory Turkey Foot Middle School

Dovetail Solar and Wind

Founded in 1995 - one of Ohio’s oldest & largest renewable energy design and installation firms

Implement Solar Electric, Wind, & Solar Thermal systems throughout Solar Thermal systems throughout Ohio and surrounding states

Offices in Athens, Cleveland, Columbus, Cincinnati, Toledo and Southern Michigan

Over 240 systems installed (more than 4.5 MegaWatts)

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Discussion and Q&A

Siobhan C. Pritchard

Dovetail Solar & Wind

(513) 535-7445

[email protected]

www.dovetailsolar.com

Commercial Solar, Pitched Metal Roof

Payback of under 10 years on roof or ground mounts

Bowman and Landes Turkey Farms, New Carlisle, OH, 51kW

Commercial Flat Roof

Fortin Ironworks, Columbus, OH 69kW

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Commercial Metal Roof

Downing Enterprises, near Akron, OH, 44.8kW

Dual Purpose Raised Solar Structures

Challenges

Costs

Financing

Z iZoning

Permitting

FAA-- https://oeaaa.faa.gov/oeaaa/external/portal.jsp

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Within 10,000 feet of an airport,

Within 5,000 feet of a public use heliport,

Any highway, railroad or other traverse way whose prescribed adjusted height would exceed standards,

FAA Criteria

p j g ,

When requested by the FAA,

Any construction or alteration located on a public use airport or heliport regardless of height or location,

Within an “undetermined” distance of a navigational beacon

Discussion and Q&A

Dovetail Solar & Wind

Siobhan Pritchard

SouthwesternOhio

(513) 535-7445

[email protected]

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Documents

Solar Powering Your Community Workshop · Steve Melink is the founder, owner, and president of Melink Corporation, a provider of building commissioning services, energy-saving kitchen