WinnCompanies Community Solar Photovoltaic to Benefit Affordable - - PowerPoint PPT Presentation

WinnCompanies

Community Solar Photovoltaic to Benefit Affordable Housing Darien Crimmin Vice President of Energy & Sustainability dcrimmin@winnco.com

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Lessons Learned

Lesson #1: Know your solar policy!

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Massachusetts Solar Policy

SREC-I Program

– 2010 through April 2014 – Production based incentive over 40 quarters – SRECs - Solar Renewable Energy Certificates – 1 SREC = 1 megawatt hour of production – Auction floor ($285/SREC) supports price while allowing for market dynamics. – Program was very successful in establishing stable solar market and reaching 400 MW of capacity sooner than expected

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Massachusetts Solar Policy

SREC-II Program

– Began in April 2014, sunset in 2016 – Production based incentive over 40 quarters – Auction floor decreases each year ($285 drops to $189/SREC) – Value of SREC corresponds to Market Sectors designed to guide solar deployment based on state priorities – Goal of 1,600 MW by 2020 will be reached much sooner

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Massachusetts Solar Policy

SREC-II Program “Market Sectors”

Market Sector Generation Unit Type SREC Factor

• 1. Generation Units with a capacity of <=25 kW DC
• 2. Solar Canopy Generation Units
• 3. Emergency Power Generation Units
• 4. Community Shared Solar Generation Units
• 5. Low or Moderate Income Housing Generation Units
• 1. Building Mounted Generation Units
• 2. Ground mounted Generation Units with a capacity > 25 kW DC with 67% or more of the

electric output on an annual basis used by an on-site load

• 1. Generation Units sited on Eligible Landfills
• 2. Generation Units sited on Brownfields
• 3. Ground mounted Generation Units with a capacity of <= 650 kW with less than 67% of the

electrical output on an annual basis used by an on-site load. Managed Growth Unit that does not meet the criteria of Market Sector A, B, or C. 0.7 A 1 B 0.9 C 0.8

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Massachusetts Solar Policy

SREC-3 Program?

– Under development – Not likely to be SRECs, but rather a block grant administered by utilities – Value of solar incentives will be reduced compared to SREC 2 – Concept of Market Sectors based on state priorities likely to remain

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Massachusetts Solar Policy

Solar Net Metering

• In 2016, MA regulations changed which will devalue

the net metering credit by 40% for all private Class II and Class III projects

• Across the country, utility companies are advocating

and lobbying for policies that restrict net metering.

• Policy trend restricts net metering and devalues

distributed generation.

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Lessons Learned

Lesson #2: Not every property should install solar

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Lessons Learned

• Efficiency First!
• Only 20% of roofs are good candidates
• Other Equipment
• Orientation
• Site Shading
• Interconnection restrictions
• Roof Age

DON’T PUT SOLAR ON ANY ROOF OLDER THAN 5 YEARS

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Lessons Learned

Lesson #3: Roof mounted solar is more complex and more expensive

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Lessons Learned

• Challenges include:
• Lender Consent
• Limited Partner Consent
• Mechanical attachments
• Roof warranties and leak prevention
• Resident disruptions
• Cost difference between roof mounted and ground

mounted is significant

• 20-40% more expensive for roof mounted projects

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Lessons Learned

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Lessons Learned

Lesson #4: Offsite solar is possible through net metering credits

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Offsite Solar Net Metering

Host Customer = Offsite solar facility Size = 1 megawatt (DC) Annual production = 1,250,000 kWh

Host produces more solar electricity than it consumes (via “net meter”). Utility credits host account with value

• f net metered credits

Example: Value of Net Metered Credits = $0.20/kwh Annual value = 1,250,000 kwh x $0.20/kwh = $250,000

Sale of credits from multiple housing customers via Net Metering Credit Purchase Agreements.

$250,000 in credits Off-taker = utility customer in same load zone. Greater SREC incentive given to affordable housing $200,000 payment (20% discount) Payment supports financing of solar facility

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MA Solar Net Metering Credits

• Credits can be transferred from the Host

Account to any Recipient Account (“Off-taker”) within the same utility load zone

• Utility company allocates credits via form called

“Schedule Z”

• Net Metering Credit Purchase Agreements are

the key legal document establishing the transaction between private parties

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Credits appear on NGRID bill

$23,318 in credits received x 85% = $19,820 owed $3,498 in savings this month

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Property level savings

Solar Deal Name KW (DC) % used by Winn Annual NMC Delivered Off-taker Distribution Annual Site Savings 20-Yr Site Savings East Bridgewater 206 100% $60,119 One Site; 1 Account $12,024 240,476 $ WS3 411 100% $104,000 Two Sites; 2 Accounts $10,400 207,999 $ Beverly 1,083 100% $249,635 One Site; 2 Accounts $37,445 748,904 $ Fairhaven 1,050 49% $109,755 Two Sites; 2 Accounts $16,463 329,265 $ Onset 650 53% $153,326 Two Sites: 2 Accounts $19,794 395,876 $ Lenox 550 100% $73,918 One Site; 2 Accounts $7,392 147,836 $ Hubbardston 839 100% $199,263 Two Sites; 2 Accounts $35,643 712,862 $ Shirley 1,300 100% $156,673 Four Sites; 10 Accounts $38,998 779,968 $ Ayer 1,300 14% $37,840 Five Sites; 9 Accounts $5,676 113,519 $ Dedham 1,317 100% $490,925 Five Sites; 15 Accounts $73,602 1,472,038 $ TOTAL 8,706 $1,635,453 $257,437 $5,148,743

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Lessons Learned

Lesson #5: Measure, Monitor, Verify

Measure, Monitor, Verify

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Measure, Monitor, Verify

Branch 6 Phase A has a tripped breaker. Needs service

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Topics for Discussion

– What is right value for NMC paid by offtaker?

• Fixed rate?
• % discount?
• Floor price?

– How can solar net metering credits directly benefit residents, in addition to the housing community? – Utility and political pushback on solar incentives and NMC rates has significant impact – Establishing the right incentives and proper “Value of Solar”

Questions…

Community Solar Photovoltaic to Benefit Affordable Housing Darien Crimmin Vice President of Energy & Sustainability dcrimmin@winnco.com