This presentation was given as part of a workshop on November 14, Presenters were:

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2 This presentation was given as part of a workshop on November 14, Presenters were: Andrew Valainis, Montana Renewable Energy Association Bryan Von Lossberg Paul Herendeen, Missoula Federal Credit Union Amy Cilimburg, Climate Smart Missoula Please contact Climate Smart Missoula with any questions: info@climatesmartmissoula.org

3 Montana Renewable Energy Association Mission: To expand the use of renewable energy in Montana, affect public policy in favor of renewable energy, and to educate and inform the residents of Montana of the benefits and uses of renewable energy Focus areas: Education and Outreach Policy and Advocacy Industry Engagement

4 SolSmart Helping communities become Solar Ready Making the process of going solar easier Addresses and lowers soft costs, i.e. nonhardware costs Program focuses on soft costs for PV, including: Streamlining permitting and inspection processes Fees and reducing overhead costs Planning and Zoning Utility outreach Contractor education Consumer education Missoula, Missoula County, Bozeman, Helena, Whitefish

5 Since 2016, 100+ designees SolSmart goal: 300+ by October 2019

6 Montana s Solar Landscape Small, rooftop systems: ~ 8.5 MW since 2000 Shared solar by CoOps: ~ 500 kw since 2015 Utility scale solar: 17 MW, in 2017 alone Today: approximately 26 MW of installed solar capacity Solar still makes up a fraction of a percentage of Montana s electricity supply NREL (2016): rooftop solar alone could produce 28% of Montana s electricity needs

7 Net Metering The ability to get on-bill credit for excess energy that you produce from your own system but export for use on the grid If you have solar, want to have solar, or generally support solar you should be watching the net metering debate very closely!* NWE cap: 50kW NWE on-bill credit: retail rate (~$0.11/kWh) 12-month cycle to use excess credits, then forfeited *shameless plug:

8 Federal Income Tax Credit ( The ITC ) Up to 30% of total installed cost, no maximum Year Future Credit, Residential Credit, Commercial 30% 30% 30% 26% 22% 10% 0% 30% 30% 30% 26% 22% 10% 10% Montana Alternative Energy Systems Credit $500 per taxpayer, up to $1,000 per household Solar PV, solar thermal, small wind, biomass, geothermal Does not expire

9 Shared solar? NWE customers No MEC members Yes Can buy a portion or share of a larger array Acts just as if the array way on your own home CoOps leading the way Photos: (Top) MEC Solar I; (Bottom) MEC Solar II

10 Why Go Solar?

11 Solar Energy & Net Metering

12 Solar Panels The most typical solar panel size used for residential installations is 5 5 by 3 3. This 10-panel system is approx. 11 high by 16 wide. Typical panel produces 265 watts, but you might see panels that produce 210, 280, or 320 watts. 10 panels X 265 watts = 2,650 watts or 2.65 kw system

13 Installations

14 The Ecstasy of Information

15 Simple path: Attend a workshop Contact a local installer Get a free site assessment physical installation your energy usage Review cost & financing options Sign a contract Go solar!

16 Installer Qualifications NorthWestern Energy Qualified Solar PV Installer Local experience California SB1 eligible equipment Licenses and insurance Equipment and workmanship warranties Reference checks

17 Pricing Data & Trends Average price of residential PV installation in Q1 2017: <$3.00/Watt

18 2017 solar prices: average cost per watt by state

19 Does Solar Make Financial Sense?

20 Intro Details in report NPV = N n=0 C n 1 + d n Available at

21 Intro Lots of details / assumptions Photo by Mark Longair. Licensed under Creative Commons CC BY-SA 2.0 (

22 Montana Average Electricity Price (c/kwh, nominal) Intro Lots of details / assumptions

23 Intro No One Metric Good investment? What s the payback? Buy now or wait?

24 Base Case System size Price 5 kw $3/W Production 1,200 kwh/kw-year Photo by Emily Mills. Licensed under Creative Commons CC BY-ND 2.0 (

25 Internal rate of return Is Solar A Good Investment? 10% 8% 6% 4% 2% 0% 20 year Treasury Solar PV Total stock market

26 Internal rate of return Is Solar A Good Investment? 10% 8% 6% 4% 2% 0% 20 year Treasury Solar PV Total stock market

27 Internal rate of return Is Solar A Good Investment? 10% 8% 6% 4% 2% 0% 25% rate decline 20 year Treasury Solar PV Total stock market

28 Internal rate of return Is Solar A Good Investment? 10% 8% 6% 4% 25% rate increase 2% 0% 20 year Treasury Solar PV Total stock market

29 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Insolation (W/m^2) What s the Payback? How Much Will I Save? 250, , , ,000 50,000 - Monthly Savings (Avg) $56 Payback 13 years

30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Insolation (W/m^2) What s the Payback? How Much Will I Save? 250, , , ,000 50,000 - Monthly Savings (Avg) $56 Payback 13 years Loan Payment $100 - $140

31 Buy Now, or Wait?

32 Buy Now, or Wait? Price ($/W) $3.00 $2.76 $2.54 $2.34 Alternative Rate of Return (%/yr) n/a 1.25% 1.25% 1.50% Gross Cost $15,000 $13,800 $12,696 $11,680 State Tax Credit $(1,000) $(1,000) $(1,000) $(1,000) Federal Tax Credit (4,500) $(4,140) $(3,809) $(3,037) Additional electric cost n/a $678 $1,374 $2,087 Interim Interest Earned n/a $(188) $(377) $(685) Total Cost $9,500 $9,151 $8,883 $9,046

33 Buy Now, or Wait? Price ($/W) $3.00 $2.76 $2.54 $2.34 Alternative Rate of Return (%/yr) n/a 1.25% 1.25% 1.50% Gross Cost $15,000 $13,800 $12,696 $11,680 State Tax Credit $(1,000) $(1,000) $(1,000) $(1,000) Federal Tax Credit (4,500) $(4,140) $(3,809) $(3,037) Additional Electric Cost n/a $678 $1,374 $2,087 Interim Interest Earned n/a $(188) $(377) $(685) Total Cost $9,500 $9,151 $8,883 $9,046

34 Buy Now, or Wait? $10,000 Projected System Price (net) $8,000 $6,000 $4,000 $2,000 $

35 What About Home Value?

36 What About Home Value?

37 What About Home Value?

38 What About Home Value?

39 Other Questions Loan or cash? What size should my system be? What type of loan is best?

40 Putting it All Together 1. Pick Your Questions 2. Collect Data Electric rate Installed Price Production 3. Calculate!

41 Available Loans Alternative Energy Revolving Loan Program 10 years $40, % Secured Contact: Ben Brouwer Home Energy Loan 15 years $25, % Reamortization Unsecured, easy-access Solar Home Equity Loan 20 years $150, % Secured Deductible interest

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44 Investment Tax Credit