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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
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
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
About the SunShot Solar Outreach Partnership
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
About the SunShot Solar Outreach Partnership
Resource Solar Powering Your Community Guide
gsolar markets.
www.energy.gov
Case Studies
Fact Sheets
How-To Guides
About the SunShot Solar Outreach Partnership
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
About the SunShot Solar Outreach Partnership
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
Ri h N D i S i Aft B k
What is the greatest barrier to solar adoption inyour community? [Green Card]
Right Now During Session After Break
Write answer on card Compile results Group discussion
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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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)
The Cost of Solar in the US
Profits, Taxes, &
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)
Overhead
The Cost of Solar in the US
Solar Soft Costs
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)
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
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
Some Basic Terminology
Array
Some Basic Terminology
e-e-
Capacity / Powerkilowatt (kW)
ProductionKilowatt-hour (kWh)
e-
Some Basic Terminology
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-
Renewable Portfolio Standard
Fossil Fuel
$e- $REC
Utility
Renewable Energy
Two revenue streamsTwo revenue streams
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Renewable Portfolio Standard
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.
Renewable Portfolio Standard
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!
www.dsireusa.org / August 2012.
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
Source: Freeing the Grid
Net Metering: Ohio
Recommendations:
Source: Freeing the Grid
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
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
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
Power Purchase Agreement
e-
DeveloperCustomer
e
$ REC
Pros
No upfront cost
No O&M costs
Cons
Market electricity price risk
Opportunities may be
Third Party Ownership
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
www.dsireusa.org / August 2012.
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: Case Study
Select Marketing & Enrollment Site Decision
&
Solarize Mass Harvard
Installer & Workshops
Enrollment Assessment & Installation
April 2011 Dec 2011
April 2011
Group Purchasing
Average PV Cost July 2011: $5.75 / watt
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Solarize: Case Study
Select Marketing & Enrollment Site Decision
&
Solarize Mass Harvard
Installer & Workshops
Enrollment Assessment & Installation
April 2011 Dec 2011
May – July 2011
Marketing Strategy:
Electronic survey of 1,100 households
Email newsletters and direct mailings
Solarize: Case Study
Float in July 4 parade
Articles and advertisements in local newspaper
Facebook page and online discussion board
Source: Vote Solar
Solarize: Case Study
Select Marketing & Enrollment Site Decision
&
Solarize Mass Harvard429 households
signed up429 households
signed up
Installer & Workshops
Enrollment Assessment & Installation
April 2011 Dec 2011
June – Oct 2011
Solarize: Case Study
Select Marketing & Enrollment Site Decision
&
Solarize Mass Harvard151 feasible households151 feasible households
Installer & Workshops
Enrollment Assessment & Installation
April 2011 Dec 2011
Oct 2011
Solarize: Case Study
Select Marketing & Enrollment Site Decision
&
Solarize Mass Harvard75 Contracts75 Contracts
Installer & Workshops
Enrollment Assessment & Installation
April 2011 Dec 2011
Oct –Dec 2011
Group Purchasing
403 kW capacity contracted
403 kW capacity contracted
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Solarize: Case Study
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
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
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
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INSERT LOCAL EXPERT DECK
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
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
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
J ti B Phili H ddiNC Solar Center / DSIRE
[email protected](919) 515 - 5693
Justin BarnesThe Solar Foundation
Philip Haddix
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
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[Results from Survey][ y]
Activity: Addressing Barriers
Ri h N D i S i Aft B k
What is the greatest barrier to solar adoption inyour community? [Green Card]
Right Now During Session After Break
Write answer on card Compile results Group discussion
[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
Option 2: Third Party Ownership
Third Party Ownership
Process
Location Selection
Site Assessment
Finance Project
Installer Procurement
Construction
Decide on
Direct Ownership
ecide onOwnership Structure
Option 2: Third Party Ownership
Third Party 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
Installer Procurement
Construction
Decide on
Direct Ownership
Decide on Ownership Structure
Option 2: Third Party Ownership
Third Party 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
Installer Procurement
Construction
Decide on
Direct Ownership
ecide onOwnership Structure
Option 2: Third Party Ownership
Third Party Ownership
Direct purchase
Grant financed
ESCO/performance contracting
Step 3: Finance Project
ESCO/performance contracting
Loans
Bonds
Process
Location Selection
Site Assessment
Finance Project
Installer Procurement
Construction
Decide on
Direct Ownership
ecide onOwnership Structure
Option 2: Third Party Ownership
Third Party 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
Installer Procurement
Construction
Decide on
Direct Ownership
Decide on Ownership Structure
Option 2: Third Party Ownership
Third Party 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
ecide onOwnership Structure
Third Party Ownership
Process
Decide on
Direct Ownership
Location Selection
Developer Procurement
PPA & Lease Negotiation
Construction
ecide onOwnership Structure
Third Party Ownership
Process
Decide on
Direct Ownership
Location Selection
Developer Procurement
PPA & Lease Negotiation
Construction
ecide onOwnership Structure
Third Party Ownership
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
Developer Procurement
PPA & Lease Negotiation
Construction
ecide onOwnership Structure
Third Party Ownership
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
Developer Procurement
PPA & Lease Negotiation
Construction
ecide onOwnership Structure
Third Party Ownership
Pros
No upfront cost
No O&M costs
Cons
Market electricity price risk
Limited opportunity in
Third Party Ownership
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
Developer Procurement
PPA & Lease Negotiation
Construction
ecide onOwnership Structure
Third Party Ownership
Proposals due July 2012
Proposals due July 2012
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OKI Solar Workshop
Presenter Name
Title
Phone
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
Power Purchase Agreement
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
Discussion and Q&A
Siobhan C. Pritchard
Dovetail Solar & Wind
(513) 535-7445
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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Copyright 2009 Dovetail Solar and Wind
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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Copyright 2009 Dovetail Solar and Wind
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
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