Considerations for Municipal Solar Projects. Ben Frevert Larsen Engineers November 16, 2016

Transcription

1 Considerations for Municipal Solar Projects Ben Frevert Larsen Engineers November 16, 2016

2 Topic Areas Benefits of going green / solar Actions local governments can take Programs and incentives Implementation process 2

3 Solar Overview Solar photovoltaic systems capture energy in sunlight and convert it to electricity. How does that work? 3

4 Solar Overview Silicon is processed into solar cells Solar cells are assembled into panels or modules 4

5 Solar Overview The photovoltaic effect Anti-reflective coating sunlight Front electrode n-type region p-type region Back electrode 5

6 Solar Overview Modules are then installed along with racking, conductor assemblies, combiner boxes, inverters, and other equipment into working systems. These system are then connected to the electricity grid. 6

7 Solar Overview Module characteristics 7

8 System Size Limits DC current AC current kwh Grid PV System Inverter Meter 5 MW ac limit for interconnection 2 MW ac limit for remote net metering 8

9 Solar Overview Source: NREL 9

10 Topic Areas Benefits of going green / solar Actions local governments can take Programs and incentives Implementation process 10

11 Benefits Reductions in greenhouse gas emissions and carbon footprint Advances toward greater levels of resiliency Improved public relations within community Encourage citizens to make similar commitments 11

12 Benefits Improved access to additional funding programs. 12

13 Benefits Potential to save on energy costs. Meter classification Supply and delivery Demand vs. nondemand Third party supply and consolidated billing 13

14 Benefits Savings for members of the community 14

15 Topic Areas Benefits of going green / solar Actions local governments can take Programs and incentives Implementation process 15

16 Local Government Actions Energy use planning 16

17 Local Government Actions Implement solar to offset municipal consumption 17

18 Local Government Actions Implement solar to offset municipal consumption Ownership Lease arrangement Power purchase agreement 18

19 Local Government Actions Update zoning to address solar 19

20 Local Government Actions Adopt unified solar permit Source: NY-Sun Solar Guidebook for Local Governments in New York State 20

21 Local Government Actions Pursue solarize program 21

22 Local Government Actions Engage in state incentive programs to position for future opportunities. 22

23 Topic Areas Benefits of going green / solar Actions local governments can take Programs and incentives Implementation process 23

24 Programs and Incentives NY-Sun Megawatt Block program 24

25 Programs and Incentives NY-Sun Megawatt Block program 25

26 Megawatt Block Grant Value 26

27 Programs and Incentives Renewable Energy Certificates/Credits (RECs) Pending (PSC Case 15-E-0302) 27

28 Programs and Incentives Federal Investment Tax Credit (ITC) 28

29 Programs and Incentives Depreciation Solar PV systems can be completely depreciated using an accelerated depreciation schedule Basis (85% of eligible project costs reduced by ½ of ITC) viewed as a loss over 5 to 6 years Dependent on owner tax rate but value can be an additional 30% of project cost 29

30 Programs and Incentives Net metering Remote net metering (RNM) Community Distributed Generation (CDG) 30

31 Programs and Incentives Net metering kwh Grid Meter PV System 31

32 Programs and Incentives Remote net metering (RNM) kwh Satellite PV System kwh Host Meter Grid kwh Satellite kwh Satellite Host and Satellite meters required to be in the same name 32

33 Programs and Incentives Net metering and remote net metering video Source: The City University of New York with NYSERDA s PV Trainer Network 33

34 Programs and Incentives Community Distributed Generation (CDG) kwh Satellite PV System kwh Host Meter Grid kwh Satellite kwh Satellite Host and Satellite meters not required to be in the same name 34

35 More on CDG Minimum of 10 members (satellites accounts) Each satellite must be allocated a minimum of 1000kWh annually No more than 40% of the excess generation may serve members with an average monthly peak demand of 25kW or more 35

36 More on CDG 36

37 More on CDG Practical considerations Investor concerns about creditworthiness of the members Need for anchor members with allocations that provide a backstop strategy Billing and membership management effort represents additional project O&M cost 37

38 Solarize Aggregate electricity customers to get better solar pricing NYSERDA provides grant funds, technical assistance and other resources 38

39 Other notable programs Community Choice Aggregation Clean Energy Communities 39

40 Topic Areas Benefits of going green / solar Actions local governments can take Programs and incentives Implementation process 40

41 Going Solar - Overview of Process Stakeholder engagement and goal setting 41

42 Going Solar - Overview of Process Planning to Determine system size Identify potential sites or not Project to serve municipality only Or CDG with municipality as anchor 42

43 Going Solar - Overview of Process Competitive process to select a developer Develop and issue RFP Provide: Site Description Historic Energy Usage Data Price Proposal Template/Requirements Aerial Photos Evaluation Criteria Model PPA Request Developer Experience and References System Design Information and Production Estimates Proof of Funding Capacity Timeline for Project Development and Construction Price / Escalator 43

44 Going Solar - Overview of Process Competitive process to select a developer Develop and publish RFP Interconnection Cost PPA $/kwh Esc % PPA $/kwh Esc % PPA $/kwh Esc % $ $ $ $ $ $ $ $ $ 200, , , , , , , ,000 1,000,000 NY-Sun C&I Program Block 6 Block 7 Block 8 44

45 Monthly Cost of Electricity Generated by PV System Going Solar - Overview of Process Competitive process to select a developer Develop and publish RFP Review bids and select a developer $60,000 Electric Utility Grid Supplied Compared to 20-year PPA 20-year Cost Projection System Size (AC) 2,000 kw $50,000 $40,000 Net Present Value of Savings $2,972,767 $30,000 $20,000 $10, /1/2017 1/1/2022 1/1/2027 1/1/2032 1/1/2037

46 Going Solar - Overview of Process Competitive process to select a developer Develop and publish RFP Review bids and select a developer Negotiate contract 46

47 Going Solar - Overview of Process Monitor developer activities Preliminary/supplementary interconnection screening Submit payment for CESIR and obtain acknowledgement NY-Sun incentive application Coordinated Electric Service Interconnection Review (CESIR) 47

48 Going Solar - Overview of Process Monitor developer activities Submit payment for interconnection Complete SEQRA process Finalize system design Address zoning issues if needed 48

49 Going Solar - Overview of Process Monitor developer activities Acquire building permit Construction Remote net metering application Interconnection and commissioning 49

50 Going Solar - Overview of Process Realize credits on bills Pay for energy generated ongoing for term of PPA 50

51 Other Resources NY-Sun Program web site nyserda.ny.gov/all-programs/programs/ny-sun PV Trainers Network training.ny-sun.ny.gov/ Solarize nyserda.ny.gov/all-programs/programs/ny- Sun/Communities/Solarize Solar Procurement Guidelines for Local Governments in New York State 51