woodbury community solar garden workshop & developer fair

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Community Solar Workshop & Fair Woodbury

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Community Solar Workshop & Fair

Woodbury

Agenda1. Energy Efficiency – best bang for your buck2. Context for Clean Energy in Minnesota3. Renewable Energy Options4. Questions5. Chat with resource experts and solar

developers

READY FOR SOLAR? WHY ENERGY EFFICIENCY MATTERS

Terry ChaneyNeighborhood Energy Connection | Home Energy Squad Outreach Specialist651-338-6226 | [email protected]

Energy Efficiency Solves Problems

• Lower monthly energy consumption • Lower monthly energy costs• Solve comfort problems like drafts and cold spots• Prevent issues like ice dams• Address uncontrolled moisture and ventilation problems

…all through efficiency improvement projects (and earn rebates and other incentives and use competitive financing, if needed)

Energy Efficiency Means What Again?Using less energy to provide the same service

Energy efficient homes have:

• Fully insulated attic & walls• Efficient lighting and appliances

• Efficient heating system• Efficient water heater

Energy Efficiency: The Smart Step Toward Solar

The cheapest energy is the energy that you do not use.

increases the % of your home that is powered by solar energy.

Reducing the amount of energy you consume,

Energy Efficiency Lowers Energy Bills

MN

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55% Heating and Air Conditioning

15% Lights & Electronics15% Appliances

15% Water Heating

The average Roseville household spends

$1,852/year on gas & electric utilities.

Energy Efficiency, with The NEC Every Step of the Way

SOLAR ENERGYWINDOWS

APPLIANCES

WATER HEATING

HEATING & COOLING

INSULATING & VENTILATION

AIR SEALING

LIGHTING

LOW COST/NO COST

BEHAVIOR

Have an Energy Auditor analyze your homeYour home is unique!

HOME ENERGY AUDIT

Infrared Camera Scan Blower Door Test CO2 Test & More

Get those low cost measures installed by the pros

Sign up today for either a $40 or $20 visit.

HOME ENERGY SQUAD: A quick, hands-on service that installs key energy-saving measures in your home.

After the presentation, stop by the NEC table

• Ask us questions• Figure out your best next step• Learn about potential energy efficiency rebates

Sign up for an Xcel Energy audit: $100 Infrared Audit or a $60 Blower Door Audit

Combine it with a $20 Home Squad Visit

Community Solar Gardens 101Lissa PawlischClean Energy Resource Teams (CERTs)UM Extension Regional Sustainable Development Partnerships

Statewide Partnership & Collaboration

CERTs: We’re here to help

CERTs Mission: Connect individuals and their communities to the resources they need to identify and implement community-based clean energy projects

Agenda1. Energy Efficiency – best bang for your buck2. Context for Clean Energy in Minnesota3. Renewable Energy Options – On-site Solar,

Community Solar, Green Pricing4. Questions5. Chat with resource experts and solar

developers

Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/

Minnesota Key Energy Policies1. Conservation Improvement Program (electric and gas):

o Requires utilities to spend a certain amount of annual revenue on efficiency investments (Gas .5%, Electric 1.5%, Xcel 2%)

2. Net Metering (electric): Customers must be compensated for electricity they generate and feed into the local utility’s grid (1,000 kW limit for investor-owned utilities, 40 kW limit for coops and muni’s)

3. Renewable Energy Standards (electric):o Xcel Energy – generate/procure 30% by 2020, plus 1.5% solaro Investor-owned utilities – generate/procure 25% by 2025, plus

1.5% solaro Cooperative and municipal utilities – generate/procure 25% by

2025

Consumer Solar Technologies

1. Electric (PV)

2. Thermal: Air Heat

3. Thermal: Hot Water

The Current State of Solar

• Now over 30 GW of solar PV installed in US

• Enough to power > 6 million homesSEIA Solar Market Insight Report

Solar Prices are Falling

Source: http://cleantechnica.com/2014/09/04/solar-panel-cost-trends-10-charts/

The Solar PV Future

Is there Enough Sunlight?

Is My Site Good For Solar?• Do I have a south facing roof or location? • Are there shade issues?• When do I anticipate re-roofing? • Is my roof structurally sound? • Am I going to be in the

home for a while? • Is my home energy

efficient?… talk to a solar installer!

The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.

mn.gov/solarapp

mn.gov/solarapp

The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.

mn.gov/solarapp

Other Options: Rooftop Solar

Community Solar Gardens

Point to yours!

Definition:Centrally-located solar PV systemsthat provide electricity to participating subscribers

Community Solar Gardens

solargardens.mncerts.org

How does it work?Xcel Energy Program

OPERATOR: primary group running the solar garden

UTILITY: approves garden, tracks production, provides credit.

SUBSCRIBERS: individuals or groups to get solar power

3rd Party Operator develops & runs garden. Maintains relationship w/ subscriber for payment. Utility provides subscriber w/ bill credit.

Subscribing to a Solar Garden

Source: WaterproofPaper.com

Subscribing to a Solar Garden

Washington CountyActive Application: 64MW Active Applications: 48Initial: 1In Review: 2Reviewed: 33Design and Construction: 28Complete: 0

Developers with Solar Gardens Serving Washington County

Here at the event tonight:• Able Energy• MN Community Solar / Novel Energy• Cooperative Energy Futures

Selling but not in attendance:• NRG• SolarCity

Sold out in Washington County:• Community Energy• GreenMark / Ameresco• SunShare

Not currently working with residents:• Geronimo Energy• Innovative Power Systems• SoCore

How to get started?

1. Determine how much electricity you use per year

2. Decide how much of your usage you want to offset/can offset.

3. Sign up via subscription model that’s right for you.

4. Watch for credits on your bill

1. What is your annual electricity usage?

Subscribing to a Solar Garden (Xcel Energy Program)

1. What is your annual electricity usage?

o 9,600 kWh

Subscribing to a Solar Garden (Xcel Energy Program)

1. What is your annual electricity usage?

o 9,600 kWh

2. How much of your usage do you want to offset with solar?

Subscribing to a Solar Garden (Xcel Energy Program)

1. Determine how much electricity you use per year

o 9,600 kWh

2. How much of your usage do you want to offset with solar?

o 100%

Subscribing to a Solar Garden (Xcel Energy Program)

8 kW of solar could provide 100% of the electricity

used by the typical MN home

1. Determine how much electricity you use per year

o 9,600 kWh

2. How much of your usage do you want to offset with solar?

o 100%

3. Which company has an offer that meets your goals?

Subscribing to a Solar Garden (Xcel Energy Program)

8 kW of solar could provide 100% of the electricity

used by the typical MN home

AVAILABLE CSG PROJECTS

cleanenergyprojectbuilder.org

Research Solar Developers…

Visit the CERTs table later to get a flyer with the web

address!

Find a company that you like

• Pricing: What is the pricing structure? Is payment tied to production?

• Transferability or Early Termination: What happens if you move or want to cancel? What are the fees associated with that?

• Project Construction and Timing: At what stage in the process is the project? When can you expect your first bill credit?

• YOUR Goals and Values: Garden location? Developer business model? Customer service? Cost Savings?

Subscribing to a Solar Garden (Xcel Energy Program)

1. Determine how much electricity you use per year

o 9,600 kWh

2. How much of your usage do you want to offset with solar?

o 100%

3. Which company has an offer that meets your goals?

Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)

Subscription paymentBill credits

How much does it cost?

$/kWh$/kWh

Set annually by Public Utilities Commission, based on average

electricity prices

Set by developer, explained in contract

Once the garden begins producing electricity…You will… Key DetailsA) Begin making payments

to the developer for your subscription

• Pay in dollars per unit electricity produced (most contracts)

• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator

Polar Solar Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)

Once the garden begins producing electricity…You will… Key DetailsA) Begin making payments

to the developer for your subscription

• Pay in dollars per unit electricity produced (most contracts)

• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator

B) Begin receiving credits on your monthly Xcel bill

• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities

Commission to match changing electricity prices

Standard rate (retail cost of electricity: $.12596/kWh

Standard + $.02 incentive (Gardens > 250 kW): $.14596/kWh

Standard + $.03 incentive (Gardens ≤ 250 kW): $.15506/kWh

MOST COMMON

Once the garden begins producing electricity…You will… Key DetailsA) Begin making payments

to the developer for your subscription

• Pay in dollars per unit electricity produced (most contracts)

• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator

B) Begin receiving credits on your monthly Xcel bill

• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities

Commission to match changing electricity prices

C) Continue to pay your monthly Xcel bill…

• If monthly bill > $0, you pay the difference• If monthly bill < $0, a credit is carried to the following

month• If annual credits > annual bills, Xcel will write you a

check at end of year

Monthly costs/savings(800kWh/month @ 100% subscribed)

MONTH 1Without Solar Garden Subscription

With Solar Garden Subscription

Monthly Xcel Energy Bill($.12596/kWh) $100.77 $100.77

Bill Credit($.14596/kWh) N/A -$116.77

Payment to Solar Garden Developer

($.14000/kWh)N/A $112

TOTAL Monthly Cost $100.77 $96

$0.1400

$0.268

$0.146

$0.308

$0.08

$0.13

$0.18

$0.23

$0.28

$0.33

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

$/kW

h Pr

oduc

ed b

y G

arde

n SUBSCRIPTION RATE

BILL CREDIT RATE (3.5% Annual Increase)

Years Subscribed

Rates over 25 years(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)

Costs/Savings at specific points in time(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)

Monthly Costs/Savings at Different Points in Time(Monthly

difference between bill credit and

payment to the developer)

Year 5$ per month

Year 10$ per month

Year 15$ per month

Year 20$ per month

Year 25$ per month

$6.80 $10.36 $15.37 $22.20 $31.31

Cumulative Savings over 25 Years(Cumulative

difference between bill credits and

payments to the developer)

Savings after 5 years

Savings after 10 years

Savings after 15 years

Savings after 20

years

Savings after 25 years

$341 $852 $1,599 $2,662 $4,137

Bill Credits Changing

2017 Gardens:Value of Solar (VOS) Rate

Bill credit? $0.0995

Pre-2017 Gardens:ARR + REC

Bill credit? $0.14596

MNCERTs.org/solargardens

Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/

Alternatives: Green Pricing

Solar Garden Green PricingPricing Opportunity to save money Small cost

Renewable Energy Contribute to state mandates Always beyond state mandates

Simplicity Complex sign-up process Easy sign-up process

Term 20-25 years 1 year

Amount Any amount up to 120% of usage

100 kWh blocks OR 100% of usage

Key Contact Private Developer Utility Company

Delivery of benefit Utility bill Utility bill

Which option meets your needs?

Lissa PawlischCERT Director

UM Extension Regional Sustainable Development [email protected]

Terry ChaneyHome Energy Squad Outreach Specialist

Neighborhood Energy [email protected]

Questions?

Tips for Your Networking

Networking with Developers