Workshop E Financing & Implementing Solar (PV) & Storage - - PDF document

Workshop E

Financing & Implementing Solar (PV) & Storage Projects in Ohio’s Changing Energy Climate

Tuesday, February 19, 2019 10:45 a.m. to Noon

Biographical Information

Mike Foley, Director of the Department of Sustainability Cuyahoga County, 2079 E. 9th St., Cleveland, OH 44115-1302 216-443-3055 mfoley@cuyahogacounty.us Mike Foley is the first Director of the Department of Sustainability for Cuyahoga

• County. He was appointed to lead the office in February 2015 by Executive

Armond Budish after having served in the Ohio General Assembly from 2006-

• 2014. Foley represented the 120,000 people of the 14th House District and was

active in the legislature on environmental, utility, revenue and budget issues. Term limits prevented Foley from running for office after 2014. Prior to being in the General Assembly, Foley was Executive Director of the Cleveland Tenants Organization (CTO) for almost ten years and has extensive experience in affordable rental housing issues both locally and those involving national policy. Before CTO he was the Court Administrator for Cleveland Municipal Housing

• Court. Mike has been married to his wife Chris for 31 years, and they have 4

children. Patrick Smith, Vice President, IGS Solar 6100 Emerald Parkway, Dublin, OH 43016 614.659.5089 Patrick.Smith@igs.com Patrick joined IGS in 2013 as one of the first employees of its distributed generation companies. He helped to establish IGS Solar in 2015, which has now grown to one of the largest solar development and financing companies in the

• US. Patrick is currently responsible for commercial business development of IGS

Solar across the U.S. with a focus on strategic national accounts. Prior to joining IGS, he held sales and operations management roles within the electric power and utility construction sectors. Patrick has nearly 20 years of experience with start-up, middle-market, and global companies. A proud “OU Bobcat”, Patrick holds two degrees from Ohio University. He and his wife Erin have 3 children and reside in Gahanna, OH.

Solar Industry & Storage Updates

IGS Introduction

Introduction to IGS

Our Companies

IGS Solar Portfolio Overview

IGS Solar – Our Services

Solar Industry Snapshot

Solar is Viable Nationally

Most Americans Support Green Activity

Strong Growth Projections

Community Support for Solar

Investment Tax Credit Impact

Solar is a Key Contributor to Job Growth

Solar Industry Creates Jobs

Community Support for Solar

Solar Costs Less Every Year

Solar Leads New Renewable Capacity

The Shift To Renewables

The Shift To Renewables

US is a Leader in the Global Solar Market

Considerations for Solar

Solar in Ohio

Solar Installed: 190MW National Ranking: 28th Homes Powered: 22,000 % of State’s Electricity: 0.24% Solar Jobs and Ranking: 6,518 (11th) Solar Companies in State: 292 Total Investment: $565 million Growth Projections: 1,023MW in 5 years (18th in US)

Ohio’s Electric Rates

Ohio’s Solar Resources

Net Metering

• Net metering is allowed
• System size is limited to

120% of usage

• Recover only avoided

costs

• Cannot offset demand

charges or capacity

• Retail suppliers must

provide credits under separate contract

• Can net meter to adjacent

parcels

Considerations for Going Solar

General Considerations:

• Do you have sustainability goals?
• Is “immediate” savings a requirement, or a

hedge against volatility?

• Is there a budget for sustainability – in

marketing, procurement, operations?

• Have you done other EE measures?
• Do you have year‐round consistent usage?
• Are you supplied by the utility, a municipality
• r a retail supplier?

For Employee Attraction / Retention: Millennials see a company’s commitment to responsible business practices as a key factor in their employment decisions:

• 75% would take a pay cut to work for a responsible

company

• 83% would be more loyal to a company that helps

them contribute to social and environmental issues

• 76% consider a company’s social and environmental

commitments when deciding where to work

• 64% won’t take a job from a company that doesn’t

have strong practices

Consider The Ownership Structure

For PPA’s:

• Do you own or lease?
• Do you have access to a field or rooftop?
• Are you able to sign a multi‐year contract?
• Does your roof have +15 years of life?
• Do you have investment‐grade credit?

For Ownership:

• Can you monetize the tax benefits?
• Do your ROI hurdles match the investment?
• Is the best use of your capital?
• Who will mange contracting, construction, performance and maintenance?

Why Now?

Case Study

Cuyahoga County Solar Farm

https://www.youtube.com/watch?v=aWL0NuShHN8

Project Overview

• 3.99MW / 17 acres / 35,000 solar panels
• Built on closed landfill in Brooklyn, OH
• Cuyahoga County / Cleveland Public Power / IGS Solar
• Operates under a 10‐yr. + 10‐yr. PPA
• Most “Ohio” project of its kind
• 5m kWh per year – enough for ~500 homes

Project Overview

• Project History
• Reasons for Going Solar
• Challenges and Successes
• Development Process
• Results
• Winning the 2018 Project of the Year

What’s Next for Ohio?

Ohio Controls its Own Destiny

Rate Design:

• Empower customers to control energy

costs and adopt new technologies that provide utility benefits

• Maintain a customer’s right to reduce

their grid electricity use

• Follow the principles of gradualism,

grandfathering, and predictability Net Metering:

• Maintain a customer’s right to self‐

generate, connect to the grid, and reduce grid electricity use

• Properly value solar electricity and

adequately compensate solar customers Incentives:

• To grow a local industry and bring down

‘soft costs’ incentive programs should be stable, predictable, and declining over time Interconnection:

• Govern the process by which

distributed energy physically connect to the grid

• Should be transparent, uniform,

streamlined, predictable, and cost‐ effective

Solar in Ohio Means…

Creative Solutions Non Net‐ Metered Systems Partnering with Munis Policy the Industry Can Support Improved Cost Efficiency Realistic Expectations

Storage Industry Snapshot

Cumulative Energy Storage Deployed

Storage Policy – Starting on the Edges

C&I Storage Growing with Incentive Programs

Storage Costs Continue to Plummet

Capital cost of a utility‐scale lithium‐ion battery storage system sliding another 52% between 2018 and 2030, on top of the steep declines seen earlier this decade. This will transform the economic case for batteries in both the vehicle and the electricity sector. ‐ BNEF Long‐Term Energy Storage Outlook

• “Demand charge is the strongest predictor and battery cost is the

second strongest predictor of whether or not a BESS will be economically viable.” –NREL

• “Commercial energy storage has been the fastest‐growing storage
• segment. . . driven in large part by a single value stream — demand

charge management.” –GTM

Utilities’ interest in providing storage options to non‐ residential customers was greater providing options for residential customers. The reason—non‐residential customers accounted for 65%

• f electricity sold by volume –

and often in peak periods.” ‐ SEPA

Market Economics for Demand‐Charge Savings

Q&A