Is Behind the Meter Solar A Good Idea? 07.2020 Webinar will start - - PowerPoint PPT Presentation

Is Behind the Meter Solar A Good Idea?

07.2020

www. w.Exe xergyE rgyEne nerg rgy.co com

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What Does Exergy Do?

Demand Response Backup Generator Renewable Energy Peak Shaving Batteries Savings up to 15% Onsite Solar

ONE-STOP SOLUTION

Simple Billing

Exergy is a simple and easy to use marketplace for municipalities and businesses that want to be green, resilient and save money.

We are going to take this in 3 parts:

• 1. All Solar is Not the Same
• 2. Example Commercial Solar
• 3. Better Way

The First Place We Turn

78% of companies want to purchase more renewable energy and would like to be 100% Green, if possible. Their first thought is to install solar. Is this the best use of resources and capital for a company that wants to be green?

There are 3 Distinct Solar Markets

• 1. Utility Scale: Large systems typically 10

MW or larger. Connected to the Grid.

• 2. Residential: Home rooftop systems.

Typically net metered.

• 3. Commercial and Industrial: Small to

medium sized systems, typically net metered.

Comparative Markets

Commercial and Industrial Solar Has Been Declining

Why is C&I Solar Lagging / Difficult

• 1. Lower Price Energy. Less Savings
• 2. Complex tariffs with demand charges.
• 3. Complex real estate issues (leases).
• 4. Shorter Planning Horizon. Long PPAs
• 5. Tax Benefits hard to use.
• 6. Roofs are often difficult (other items).
• 7. Costs are >2x the cost of utility electricity.

Less Savings Available

Residential Rates are double Industrial Rates..

Let’s Build Commercial Solar

Industry Average Numbers for small commercial building

• 123,120 kWh per year of consumption
• Insolation area (capacity factor): 1,400 kWh/kWp
• Average energy price = $0.12 kWh (total bill / kWh)
• Standard Commercial Tariff structure (energy + demand)
• Goal to offset 100% of electricity
• Limited Roof space
• No ground-mount area available
• Carport Solar much too expensive

Electric Bill Before Solar

Month Energy (kWh) Peak Demand (kW) Customer Charge Energy Demand Other Total 1 9,897 81 $61 $562 $406 $81 $1,111 2 12,332 83 $57 $711 $448 $96 $1,313 3 11,838 67 $57 $682 $353 $87 $1,179 4 6,654 72 $61 $387 $392 $59 $900 5 10,919 82 $57 $633 $444 $85 $1,219 6 11,911 83 $57 $690 $876 $123 $1,746 7 9,561 25 $57 $554 $265 $64 $940 8 5,657 35 $57 $313 $373 $58 $802 9 12,655 65 $57 $800 $686 $121 $1,664 10 11,370 77 $59 $681 $785 $119 $1,643 11 9,626 57 $57 $559 $505

• $15

$1,106 12 10,700 83 $55 $615 $408 $85 $1,163 Total 123,120 $693 $7,187 $5,941 $964 $14,785

% of Total 48.6% 40.2%

Solar Design

• To cover 100% of annual usage, you need 90 kW of solar
• Assume 330W panel at 19.5 sq. ft. (standard size)
• You need 273 panels, or 5,320 sq. ft. of roof space
• This client has about 5,000 sq. ft. usable. We cannot put

90 kW on their rooftop. Final size limited to 81 kW.

• Full turnkey project cost is $2.20 per watt
• This is super aggressive on sizing. Likely to be smaller.

Solar Effect on Load

How Much Do We Save?

• Theoretically, should save 90% (81 kW / 90 kW)
• Actually save only 58% (or $8,600), declining at

0.5% per year.

• The lack of savings is because the solar output

and the peak demand usage not aligned.

• The percentage of the bill allocated to demand

charges goes up.

What is the ROI?

Year 1 2 3 4 5 (-) Capex (177,540) $ (+) Saving 8,608 $ 8,565 $ 8,522 $ 8,480 $ 8,437 $ (+) ITC 46,160 $ Total Cash Flow (177,540) $ 54,768 $ 8,565 $ 8,522 $ 8,480 $ 8,437 $ IRR 2.19%

Full immediate use of Tax Credit

Year 1 2 3 4 5 (-) Capex (177,540) $ (+) Saving 8,608 $ 8,565 $ 8,522 $ 8,480 $ 8,437 $ (+) ITC 4,616 $ 4,616 $ 4,616 $ 4,616 $ 4,616 $ Total Cash Flow (177,540) $ 13,224 $ 13,181 $ 13,138 $ 13,096 $ 13,053 $ IRR 1.91%

Tax Credit Used Over 10 Years

Hardly a Slam Dunk Investment Return

Is There A Better Way?

• Exergy’s Always Green, Always On is a much better

solution.

• Supply 100% Renewable Energy from less expensive

utility-scale renewables. Matched to the load.

• Exergy supplies a natural gas backup generator to

keep you running if the grid goes down.

• Saves you 10-15% on current spend.
• Zero upfront cost or investment.

What is the Outlook?

“Energy prices are forecasted to fall 10% over the period in response to continued low cost natural gas and declining costs of renewables. Transmission and Distribution costs are expected to grow 24% and 25% respectively

• ver the period, due to the need to replace

aging infrastructure and accommodate new reliability standards.”

• Energy Information Administration

Questions?

ENERGY

RGY STORAGE RAGE DEVELO LOPMENT PMENT

PARTNER

RTNERS

Want to be Green and Resilient? Let Exergy Do it for you

Demand Response Backup Generator Renewable Energy Peak Shaving Batteries Savings up to 15% Onsite Solar

ONE-STOP SOLUTION

Simple Billing

Thank you.

CONTACT ACT David id March rch march@ ch@exer exergye gyenergy. nergy.com com (704) 4) 788-19 1909 09