Solar Power in Schools: Opportunities Marta Tomic Solar Clean - - PowerPoint PPT Presentation

Solar Power in Schools: Opportunities

Marta Tomic Solar Clean Energy Program Manager

Site Specific Nature of Solar

 Solar photovoltaic (PV) pricing depends on site selection

 Roof mount vs ground mount  Orientation to south  Array tilt  System size  Shading impacts  Electrical system upgrades  Roof age / structural enhancements

 System size impacts available financing solutions  Aggregate Net Energy Metering (ANEM) a great solution

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FOR INFORMATIONAL PURPOSES ONLY

Solar Options for Schools

 Purchase

 Estimated 15 year payback

 Power Purchase Agreement:

 Approx. 5 – 20% discount on energy  MD: 7.5 – 10.5 cents / kWh with 2% escalator

Purchase vs. PPA

Years Years Payback Payback FOR INFORMATIONAL PURPOSES ONLY

* For discussion purposes only Image source: http://cleantechnica.com/2014/02/09/solar-leasing-vs-0-solar-loan-scenarios-10-states/

Power Purchase Agreement (PPAs)

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 Necessary Agreements

 PPA  Site Lease  EPC (Engineering,

Procurement, and Construction)

 O&M

 Necessary Resources

 Legal  T

echnical

 Financial

FOR INFORMATIONAL PURPOSES ONLY

Rules of Thumb for PPAs

 Need to achieve economies of scale

 Ground mount:

2 acres

 Flat roof:

60,000 SF

 Standing seam metal:

30,000 SF

 Multiple buildings/sites that aggregate to 500 kW

 Reduced transaction costs with a single host customer

 Alternate option: adjacent lot willing to host array for

your school

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FOR INFORMATIONAL PURPOSES ONLY

Typical PPA Terms

 15 – 25 years  Year 1 PPA rate with annual escalator  Termination values & buyout provisions

 Drop substantially after the 5th year due to recapture period

 End of Term Options

 Purchase System  Renew PPA  Remove System

 Caution!

 Expected savings based on utility rate calculation and escalation

assumptions

 Solar should only offset 80% of total usage. Don’t overpay.

 Insurance, site maintenance & O&M included  System owner keeps SRECs and available incentives

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FOR INFORMATIONAL PURPOSES ONLY

Net Metering: Only kWh charges count

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 kWh for kWh credit

 Flat monthly fees are not included in

your effective kWh rate

 kW demand charges are not

included in your effective kWh rate

 kWh based charges

 Example: $0.11/kWh = all in utility

rate

 70% - 90% will be kWh charges  Remainder not credited via Net

Metering

Image source: http://www.bge.com/myaccount/billsrates/pages/understanding-my-bill.aspx

FOR INFORMATIONAL PURPOSES ONLY

Maryland Commercial Electricity Prices

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FOR INFORMATIONAL PURPOSES ONLY

PPA Options & Expected Savings

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Year 1 PPA Rate: $0.085/kWh Annual PPA Escalator: 2% Grid Escalator: 3%

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425

Example: Typical PPA

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425

Example: Fixed PPA

Year 1 PPA Rate: $0.085/kWh Annual PPA Escalator:0% Grid Escalator: 3%

FOR INFORMATIONAL PURPOSES ONLY

PPA Options & Expected Savings

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Year 1 PPA Rate: $0.085/kWh Annual PPA Escalator: 3% Grid Escalator: 3% Year 1 PPA Rate: $0.085/kWh Rate reset at year ten to 10% discount Annual PPA Escalator: 3% Grid Escalator: 2%

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425

Example: Market Rate PPA

• $20,000

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 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

Example: Rate Reset Option in PPA FOR INFORMATIONAL PURPOSES ONLY

RFP Best Practices - Technical

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 Identify potential install sites

 Multiple sites in RFP acceptable  Could eliminate need for feasibility study  Include copies of utility bills for each site in the RFP to determine

effective kWh rate

 Ensure roof warranty remains in tact  Performance guarantee

 Include PVsyst as part of bid submission  Require PPA provider to meet a minimum of 80% of expected

performance, on average, over a three-year term

 Warranty / O&M:

 Included in PPA Rate  Request warranty and O&M scope of work FOR INFORMATIONAL PURPOSES ONLY

RFP Best Practices

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 Request multiple bid options

 Year 1 with annual escalator  Fixed payments (0% escalator)  Option for rate reset or market-based PPA rate  Potential rate “buy down” if school has available funds  Section for bidder to propose alternate financing solutions

 Include any and all assumptions used to determine the

proposed PPA rate and expected savings

 SRECs pricing, interconnection pricing, utility rate escalator

 Ensure system owner maintains proper insurance  List termination values & include buyout option  Educational program as part of PPA

 Ask for educational kiosk, online access to monitoring, curriculum

support, site tours, etc.

FOR INFORMATIONAL PURPOSES ONLY

MEA’s assistance

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 What is the best way for MEA to provide assistance for

solar on schools?

 Identify top candidate sites for an RFP  T

echnical assessment to determine appropriate PV sizing

 Create a template scope of work for RFP  Perform solar financial feasibility assessments for rehabs, new

construction

FOR INFORMATIONAL PURPOSES ONLY

Net Zero Schools

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 MEA looking for one more Net Zero School

 MEA will work with the Public Schools Construction Program to

identify and administer the program

 $9M funding from Exelon and Constellation merger (BGE)  Three new schools constructed in the BGE service territory

 2 currently selected (Howard County, Baltimore City)  Need one more for 2015 FOR INFORMATIONAL PURPOSES ONLY

Thank You! Marta T

• mic

Solar Clean Energy Program Manager Maryland Energy Administration

http://energy.maryland.gov marta.tomic@maryland.gov 410-260-2608

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Solar Power in Schools: Opportunities

Milton Nagel Interim Superintendent of Schools Caroline County Public Schools Larry Hartwick Director of Design & Construction

• St. Mary’s County Public Schools

Sean Gallager Assistant Manager, Dept. of Facilities Management, Montgomery County Public Schools

Net Zero Schools Contact: Nichele Parker, MEA Program Manager (410) 260-2604 or Nichele.Parker@maryland.gov

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