By Karl Stahlkopf Project Overview After conducting an initial - - PowerPoint PPT Presentation

By Karl Stahlkopf

Project Overview

• After conducting an initial review of available installation space at Hawaii Theatre,

the purposed project development consortium has purposed a 116 kW Solar PV system mounted on the roof of Hawaii Theatre

• The purpose of this meeting is for the board of Hawaii Theatre to review the

purposed realized savings , and whether the economic benefit is sufficient for the use of the Theatre’s roof space

• Given HT’s current true energy, and the purposed PPA at rate of $.22 / kWh, the

realized savings should be in excess of 10% within the first year, and should continuously expand into the future given the PPA escalation rate of 3% per annum and HECO’s 20 year average of 5% per annum escalation

Recommended Vendor, Inclusions & Analysis Assumptions

Recommended Vendor: Hawaii Energy Connection / Kala Capital Inclusions

• O&M Contract for five years
• Manufacturer Warranty for 25 years for panels and inverters
• Manufacturer Warranty for 10 years for racking of installed system

Analysis Assumptions

• All roofs proposed to have a system placed in service on them are in the physical

condition to accept installation

• For Fair Market Value buyout NPV analysis it was assumed that Hawaii Theatre

would not lever the required capital investment for execution of the buyout

System Option #1 – “Core” System

Item Name: Option # 1 - Core System Size: 116.5 kW Annual Production: 192,570 kWh Module: LG 255S1C-63 / Sharp ND-i240q2, Warranty: 25 Yr MFR Inverter: Enphase M215 Micro Inverter, Warranty 25 Yr MFR Racking: Anodized Rack / SS Hanger Blt, Warranty: 10 Yr MFR PPA Rate $ .22 Escalation 3% Estimated Nominal 20 Year Savings - PPA $ 548,215 Estimated NPV7.5 20 Year Savings - PPA $ 238,913 Estimated Nominal 20 Year Savings – EBO YR 6 $ 1,154,975 Estimated NPV7.5 20 Year Savings – EBO YR 6 $ 412,973 Estimated Nominal 20 Year Savings – EBO YR 10 $ 960,113 Estimated NPV7.5 20 Year Savings – EBO YR 10 $ 334,831

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 PPA 20 Yr - Core System, 5% PPA 20 Yr - Core System, EBO 6 Yr, 5% PPA 20 Yr - Core System, EBO 10 Yr, 5%

20 Yr Cumulative Nominal Savings

20 Yr NPV7.5 Cumulative Savings $- $100,000 $200,000 $300,000 $400,000 $500,000 PPA 20 Yr - Core System, 5% PPA 20 Yr - Core System, EBO 6 Yr, 5% PPA 20 Yr - Core System, EBO 10 Yr, 5%

20 Yr NPV7.5 Cumulative Savings

20 Yr NPV7.5 Cumulative Savings

“Core” System Layout

Aerial Photo of Hawaii Theater from Google Earth

Kala Capital Qualifications

Hawaii Energy Connection – Qualifications

RECOMMENDATIONS

 Subject to final review and approval of the Finance

Committee the Board approve the Kala Capital financed installation of a Solar PV system on the Hawaii Theatre.

 The installation would be coordinated with the

installation of the new sound system to insure that Theatre operations would not be impacted.

Appendix – 20 YR PPA

Appendix – EBO Yr 6

Appendix – EBO Yr 10