WinnCompanies Community Solar Photovoltaic to Benefit Affordable Housing Darien Crimmin Vice President of Energy & Sustainability dcrimmin@winnco.com
Lessons Learned Lesson #1: Know your solar policy! 2
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 3
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 4
Massachusetts Solar Policy SREC-II Program “Market Sectors” Market SREC Generation Unit Type Sector 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 A 1 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 B 0.9 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. C 0.8 Managed Unit that does not meet the criteria of Market Sector A, B, or C. 0.7 Growth 5
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 6
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. 7
Lessons Learned Lesson #2: Not every property should install solar 8
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 9
Lessons Learned Lesson #3: Roof mounted solar is more complex and more expensive 10
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 11
Lessons Learned 12
Lessons Learned Lesson #4: Offsite solar is possible through net metering credits 13
Offsite Solar Net Metering Host produces more solar electricity than it consumes (via “net meter”). Utility credits host account with value of net metered credits Example: Value of Net Metered Credits = $0.20/kwh Annual value = 1,250,000 kwh x $0.20/kwh = $250,000 Host Customer = Offsite solar facility Size = 1 megawatt (DC) Annual production = 1,250,000 kWh Payment supports financing of $250,000 in solar facility credits Sale of credits from multiple housing customers via Net Metering Credit $200,000 Purchase Agreements. payment (20% discount) Off-taker = utility customer in same load zone. Greater SREC incentive 14 given to affordable housing
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 15
Credits appear on NGRID bill $23,318 in credits received x 85% = $19,820 owed $3,498 in savings this month 16
Property level savings % used by Annual NMC Annual Site Solar Deal Name KW (DC) Off-taker Distribution 20-Yr Site Savings Winn Delivered 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 17
Lessons Learned Lesson #5: Measure, Monitor, Verify 18
Measure, Monitor, Verify 19
Measure, Monitor, Verify Branch 6 Phase A has a tripped breaker. Needs service 20
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” 21
Questions… Community Solar Photovoltaic to Benefit Affordable Housing Darien Crimmin Vice President of Energy & Sustainability dcrimmin@winnco.com
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