Starting Solar Projects the Right Way Benchmarking Your District's Energy & Water Use Mark Jewell, EEFG, Inc., San Francisco, CA Using Solar Master Plans

Starting Solar Projects the Right Way

Benchmarking Your District's Energy & Water Use

Mark Jewell, EEFG, Inc., San Francisco, CAUsing Solar Master Plans to Assure Success

Tom Kelly, KyotoUSA, Berkeley, CA

School Energy Coalition March 13, 2012

Objectives of the Webinar

To introduce the Solar Master Plan and its components to the School Energy Coalition community.

To describe a process for engaging school districts in the planning, financing, and procurement of solar PV systems and for optimizing their value to a school district’s General Fund.

Wednesday, April 19, 2023 2

Presentation Overview

1. Background / purpose of the Solar Master Plan2. Aerial assessments of selected PV sites3. Procurement for district-owned PV systems4. Financing 5. Q & A



1. Background and Purpose

of the Solar Master Plan


What drives the California solar market?

1) Renewal Portfolio Standard (RPS) – 33% by 2020

2) California Solar Initiative (CSI) – rebates3) Governor Brown’s push for 12,000 MW of

Distributed Generation by 20204) Global Warming Solutions Act (AB 32)5) Increasing electricity costs6) Reduced solar panel and installation costs7) Community Choice energy

Summary of California Schools

Schools by TypeState of California, 2010-11

Number of Schools Enrollment

Elementary 5,759 3,049,423

Middle 1,266 1,025,743

Junior High 39 25,071

High School 1,290 1,808,490

K-12 181 102,136

Alternative 246 64,045

Special Education 133 24,125

Continuation 497 69,507

County Community 75 18,381

TOTAL 9,486 6,186,921

Wednesday, April 19, 2023


Hercules Middle/High School

Culver City Schools

Berkeley Unified: Washington Elementary

2007 annual electricity cost: $24,762



BSE (Before Solar Era)

SE (Solar Era)


2010 annual electricity cost: $237

Wednesday, April 19, 2023 © 2009 SEIA 9


In partnership with:

Development of the Solar Master Plan

Chapters in the Solar Master Plan

1) Benchmarking with ENERGY STAR’s Portfolio Manager – How much energy are we using and what does it cost us?

2) Selecting and Prioritizing Renewable Energy Sites – Which district sites are the best candidates for solar? 3) Structural Evaluations – Can a roof support the gravitational, wind, and seismic loads of a PV system?

4) Aerial Assessments of Selected Sites – How much PV is possible? How much electricity will it generate? - What will it cost? What are the savings?

5) Solar Voltaic Technology Overview – What are the best equipment options available?

11Wednesday, April 19, 2023

Chapters in the Solar Master Plan (cont.)

6) Design-Build Contract for PV System Installation – How to procure a PV system that provides the best possible value?

7) Financing Options for Solar Installations on California Schools – How to deliver the most cost-effective solution for the District? - Can we achieve a “revenue positive” outcome?

8) Choosing the Best Electricity Rates – Which utility tariff/rate makes sense for the proposed PV project?

9) Going Solar at San Ramon Valley Unified School District (case study) – One school district’s transition to renewable energy and the student who started it all.


All school data provided by Ed-Data (Education Data Partnership) http://www.ed-data.k12.ca.us/Pages/Home.aspx

Schools and Students

Oakland, West Contra Costa and Berkeley school districts combined:– 200 schools– 85,500 students– 11.9 million square feet of building space



Electricity Consumption and Cost(for the 3 assessed school districts)

Number of schools and facilities assessed: 134

Annual electricity consumption: 44,863,183 kWh

Annual electricity cost: $7,178,712


PV Capacity, kWh Generation, Benefits (for the 3 assessed school districts)

Full Scale 75% of Load

PV Capacity (kWp) 38,050 20,366

Annual electricity production (kWh)

51,238,650 27,458,898

Value of avoided electricity ($)

$9,818,855 $5,277,590

Avoided greenhouse gas emissions annually

6,853 MT

Renewable energy credits generated annually

26,981


2. Benchmarking a District’s Energy Use and Cost

Benchmarking with ENERGY STAR’s Portfolio Manager

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Benchmarking with ENERGY STAR’s Portfolio Manager

18


3. Aerial Assessments of Selected PV Sites

Aerial Assessments of Selected Sites

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Aerial Assessments of Selected Sites

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Aerial Assessments of Selected SitesPhase II


4. Procurement for District-Owned PV Systems

Request for Proposals – why do it?


What Motivates Districts to Procure PV Systems?

Almost always, to reduce General Fund obligations -- so strong cost effectiveness is key to a successful project.

Environmental sustainability objectives are often one of the driving forces – but don’t come into play until the economics have been addressed.

Educational benefits.

Peer pressure.


What holds districts back?

“Great idea, but can’t afford it.” “No new debt!” Confusion about technology and distrust that savings

are real. Hearing about districts where the project failed to meet

expectations. Lack of understanding of the technology, its economics,

and how to go about the procurement process.Don’t know how to:

– Identify the appropriate sites– Calculate savings– Ensure good quality systems are procured– Ensure long-term performance


How these goals and obstacles can be reconciled:

Obtain good baseline information such as what is described in the previous slides and presentation.

When a district doesn’t have sufficient capital resources, secure a good financial advisor to help structure a financing strategy.

Use a competitive process for a design-build solar PV system(s).

What to look for in a Consultant: A person who understands the true benefits of solar, Who has no attachments to solar vendors or outcomes, Who has the requisite expertise, knowledge, and who can

manage a rigorous competitive procurement process on behalf of the district that is fair to vendors and school district alike.



5. Financing


Financing Options for Solar Installations

Two ways to acquire PV:– District Ownership– Third Party Ownership

The Solar Master Plan is intended to prepare a district to seek voter approval for a General Obligation (G.O.) bond.

Two types of G.O. bonds in California:– 55% voter approval

(Proposition 39)– 2/3rd voter approval


Financing Options for Solar Installations

1. Cash on hand 2. Tax Exempt Lease Financing3. New Construction Grants (50/50 split with State)4. Modernization Grants (60/40 split with State)5. California Energy Commission loans6. High Performance Incentive program

- through Collaborative for High Performance Schools

7. Qualified Tax Credit Bonds – e.g. QZABs8. Rebates9. Grants (rarely)10.Any combination of the above

In addition to General Obligation bonds:


Current financing possibilities for Districts that are prepared to respond:

• Qualified Zone Academy Bonds-$209M for CaliforniaDeadline: open

• Qualified Energy Conservation Bonds-$22.3M now available in CADeadline: May 18, 2012

• California Energy Commission -Energy Efficiency and Energy Generation Projects loans @ 3% interest – up to $3MDeadline: open


District Ownership: Direct Benefits

All electricity savings accrue to General Fund Rebates, if any, go to school district Retain Renewable Energy Credits (RECs) O&M can be included in transaction Performance guarantee can be included in

transaction Education component can be included in transaction Other benefits:

– High profile / high visibility systems generate a “buzz”– Inspires students and schools to expand “green” projects


District Ownership: Challenges

Transaction complexity Staff expertise not a good fit (time / knowledge) Frequently changing incentives Budget shortfall / uncertainty No bonding authority Property value declines limit bonding capacity


Success Stories, So Far!

Berkeley USD used its SMP as the basis for asking voters for $7M for solar as part of a construction bond in 2010.

San Ramon Valley USD received $25M in Qualified School Construction Bonds that it used to build 3.3 MW of new solar. The district is considering a new bond for 2012 which will include $$ for more solar.

West Contra Costa USD is installing another 700 kW.

Oakland USD has applied for CSI rebates for 17 sites = > 5 MW of new solar. Considering a bond for 2012.


Tom [email protected]

800 Hearst Ave.Berkeley, CA 94710

(510) 704-8626 (work)(510) 684-6484 (cell)

www.kyotousa.orgwww.heliosproject.org

Thanks! You’ve been a great audience!


6. Q & A

Documents

Starting Solar Projects the Right Way Benchmarking Your District's Energy & Water Use Mark Jewell, EEFG, Inc., San Francisco, CA Using Solar Master Plans