Solar for Schools. John E.P. Morrison

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1 Solar for Schools John E.P. Morrison

2 Strata Solar LLC Located in Chapel Hill with affiliates in Canada & California Broad range of experience in project development, mechanical and electrical engineering and construction

3 Design and Install thermal and PV Serve Residential, Commercial, Government and Utility Markets

4 Halifax EMC

11 Solar for Schools

12 150,000 Accumulated Cash Flow 100,000 50,000 0 (50,000) Accumulated Cash Flow of a Solar PV Project (100,000) (150,000) Years

13 150, ,000 Accumulated Cash Flow 50,000 0 (50,000) (100,000) F Federal Tax Credit (30%) (150,000) Years

14 150, ,000 Accumulated Cash Flow 50,000 0 (50,000) (100,000) F Federal Tax Credit (30%) (150,000) State Tax Credit (35%) Years

15 150, ,000 Accumulated Cash Flow 50,000 0 (50,000) (100,000) Accelerated Depreciation F Federal Tax Credit (30%) (150,000) State Tax Credit (35%) Years

16 150,000 Accumulated Cash Flow 100,000 50,000 0 (50,000) (100,000) Accelerated Depreciation F Federal Tax Credit (30%) Energy Revenue (150,000) State Tax Credit (35%) Years

17 150,000 Solar Renewable Energy Certificate(SREC) Revenue Accumulated Cash Flow 100,000 50,000 0 (50,000) (100,000) Accelerated Depreciation F Federal Tax Credit (30%) Energy Revenue (150,000) State Tax Credit (35%) Years

18 Solar Renewable Energy Certificates Intangible Instrument used to show compliance with the NC Renewable and Efficiency Portfolio Standard 1 MWh = 1 REC (1,000 kwh) Utilities Purchase and Retire RECS SREC contracts Negotiated Standard Offer SREC market depends on utility need

19 $$ $$$ $ ULTIMATE ENERGY SOLUTIONS Utility SREC requirements Duke has all the SRECs they need through at least 2014 Progress Energy is buying SRECs through SunSense program (Rooftop up to 500 kw) GreenCo has all the SRECs they need through at least 2014 Some co-ops acting independently Municiple Utilities???????? Dominion export RECS to other states in PJM TVA Power Partners Program (up to 250kW)

20 Energy Revenue Utilities required to buy electrical output at avoided cost approximately $0.08 per kwh It is possible to net meter, but this typically requires time-of-use rate

21 150, ,000 Accumulated Cash Flow 50,000 0 (50,000) (100,000) Accelerated Depreciation F Federal Tax Credit (30%) (150,000) State Tax Credit (35%) Years

22 Tax Credits System Owner must have tax liability For schools this means that a 3 rd party investor owns the system Pays roof lease or sells/donates system after achieving financial returns Sells thermal energy to school

23 The Players in a Solar Project Developer quarterback of the deal Local Development Partner local permits, site control, local face of the deal EPC Designs and builds the system Financing Partner banks, solar funds, individuals Energy Buyer utility (PV) or school (thermal) REC Buyer bundled with electricity or unbundled

24 Solar Development Process I. Locate Identify Target Market Indentify Rooftops Site Due Diligence II. Finance Negotiate Power Agreement Sell RECs Secure Financing III. Build & Operate Secure EPC Contractor Install & Interconnect Operate & Maintain

25 Is my School suitable for Solar? Located in area of state with SREC market Suitable roof At least 15 years of remaining life At least 1,200 sq. ft. unobstructed (with 10 ft. setback from edge) Capable of 3-6 lbs./sq.ft. loading Route to electric service, or hot water heater Solar Access Southern orientation No Shading

26 Is my School suitable for Solar? Hot water load for thermal system Showers, cooking, laundry, pool heating, hot water heating system Load during summer months Willingness of facilities staff to work with developer and installer Administration support (esp. contracting, legal)

27 Useful stats Sizing 120 sq. ft. per kw (minimum 100 kw) 10 ft set back Annual Electrical Output 1,300 1,400 kwh/kw Loading 3-6 lbs./sq. ft. Construction Time 1-4 weeks

28 Case Study - Louisburg College

29 Solar Development Process I. Locate Identify Target Market Indentify Rooftops Site Due Diligence

31 John E.P. Morrison Strata Solar, LLC

New Jersey Solar Roundtable

New Jersey Solar Roundtable Transition to a Market-based REC Financing System Michael Winka, Director NJBPU, Office of Clean Energy Presented at Thomas Edison Institute March 5, 2007 NJ Solar Financing