Minnesota Community Solar Garden Program

Transcription

1 Minnesota Community Solar Garden Program Community Solar Gardens In 2013 the Minnesota legislature passed the Solar Jobs Act with a new community based program that allows homeowners, municipalities, and Companies to join and purchase their electricity from a centrally located solar farm in their neighborhood, called a Solar Garden. As electricity is produced by the Solar Garden, subscribers earn Xcel electricity bill credits based on the electricity production each month. In exchange for these Xcel electricity bill credits, subscribers will be billed by the Solar Garden for their share of the electricity production each month. The total cost you pay the Solar Garden for electricity is lower than the total savings from the Xcel electricity bill credits, providing the subscriber significant electricity savings each month by entering into a Solar Garden Power Purchase Agreement PPA with WGL Energy. Positive environmental impact Reduction of greenhouse gas emissions Positive community impact Construction is completed with a local workforce, providing jobs and positive local economic impacts Better than building your own solar farm No initial or ongoing capital expenditure System Owner responsible for system maintenance Solar Garden is hosted on third party land The chart below represents the electricity savings that a subscriber can expect to receive over the life of the PPA. Note: Estimated based on 3MW Solar Garden and a 3.0% grid escalator. More information can be found at: ons/renewable_energy_solutions/solarrewards_commun ity MN Solar Project Benefits Our subscribers receive significant benefit from participating in a Solar Garden. We have outlined many of these benefits below. Reduction of electricity costs More than 10% savings on electricity costs Predictable energy rates Fixed electricity prices over the 25 years Community Solar Garden Team WGL Energy, New Energy and Innovative Power have joined together to successfully complete a Solar Garden in your community. The combined companies have completed over 800 solar installations throughout the State of Minnesota and over 1,000 installations, totaling over 130 MW of solar capacity nationally. WGL Energy Overview WGL Energy is an entity that delivers a full ecosystem of energy offerings including natural gas, electricity, green power, carbon reduction, distributed generation and energy efficiency provided by WGL Energy Services, Inc. (formerly Washington Gas Energy Services, Inc.).

2 Minnesota Community Solar Garden Program Innovative Power Systems Overview Innovative Power Systems, based in St. Paul, Minnesota (IPS) designs, installs, and services solar electric, solar thermal, and electric vehicle charging stations for residential, commercial, and utility scale applications. IPS has been a major contributor in establishing Community Solar Gardens (CSGs). IPS has installed over 800 solar systems throughout Minnesota since Minnesota Project Photos The photos below represent many of the WGL Energy, New Energy Equity, and Innovative Power Systems Minnesota Solar Installations. New Energy Equity Overview New Energy Equity is a nationwide end to end solar project development and finance company that has experience in handling all aspects of photovoltaic projects including sourcing financing from private, public and institutional investors and complete project management. New Energy focuses on commercial and small utility scale solar installations throughout the United States between 40 kw and 5 MW. Minnesota Project Portfolio The map below shows the number of solar installations projects completed by WGL, New Energy Equity and IPS in Contact Details Innovative Power Systems 1413 Hunting Valley Road St. Paul, MN New Energy Equity 705 Melvin Avenue Annapolis, MD Tel: jamieb@ips solar.com solar.com Tel: info@newenergyequity.com

3 INNOVATIVE POWER SYSTEMS Renewable Energy Design & Installation About Innovative Power Systems : Innovative Power Systems designs, installs, and services solar electric, wind electric, solar thermal, and EV charging stations for residential, commercial, and utility-scale applications. Innovative Power Systems has designed and installed hundreds of solar energy systems since 1991, by far more than any other contractor in the state. Innovative Power Systems is a NABCEP certified general and electrical contractor for both solar electric and solar thermal systems. IPS has unparalleled experience in the implementation of solar systems throughout Minnesota and the Midwest and has just received a grant from the Renewable Development Fund to install 967kW of solar projects on the light rail corridor (RDF Grant Award EP4-11). Some of our commercial installations include: Science Museum of Minnesota (10kW) Great River Energy HQ (72kW) Splash Products, Inc. (40kW) Eichten Farms (40kW) Pellco Machine (40kW) Quality Bicycle Products (40kW) AGA Medical (40kW) Waconia Ice Arena (40kW) Lessors, Inc. (40kW) East Side Glass (40kW) Mallard Ink (40kW) St. Paul United Church of Christ (40kW) St. Luke Presbyterian Church (40kW) Taylors Falls Elementary (40kW) Chisago Lakes Middle School (40kW) Becker High School (40kW) Annandale Elementary (40kW) Annandale Middle School (40kW) Waconia High School (40kW) Holdingford High School (40kW) Holdingford Elementary (40kW) People of Praise (40kW) Please see our website at to view other projects Hunting Valley Road St. Paul, MN MN General Contractors License # MN Electrical Contractors License # CA06128

4 Company Overview New Energy Equity Overview New Energy Equity is a nationwide end-to-end solar project development and finance company that has experience in handling all aspects of photovoltaic projects including sourcing financing from private, public and institutional investors and complete project management. New Energy Equity works with the most reputable solar construction companies to complete engineering, permitting, construction and commissioning of our solar transactions. We are well positioned to guarantee a successful and beneficial transaction for all parties involved. Minnesota Project Photos The photos below represent many of the New Energy Equity Minnesota Solar Installations. New Energy focuses on commercial and small utility scale solar installations throughout the United States between 200 kw and 5 MW. New Energy Equity has led the successful financing of 18 solar projects throughout the state of Minnesota in the last year. The solar installations are savings school districts, municipalities and non-profits thousands of dollars in electricity payments over the contract life. Other NEE projects are located in New York, Rhode Island, New Jersey, Georgia, and Hawaii. Minnesota Project Portfolio The map below shows the number of installed completed by New Energy Equity in Contact Details New Energy Equity LLC 705 Melvin Avenue, Suite 100 Annapolis, MD Tel: info@newenergyequity.com

5 Model Inputs PPA Rate: $ System Size (Watts): 2,700,000 Yearly Escalator: 0.00% Estimated Production (kwh): 3,500,000 Grid Rate: $ Term (Years:) 25 Grid Escalator: 2.75% Degradation Factor: 0.50% Columbia Heights Public Schools Solar Garden Cashflow Electricity Total kwh Year Rate* PPA Rate Bill Savings Solar Payments Annual Savings Cumulative Savings Year 1 3,500,000 $ $ $400,960 $384,650 $16,310 $16,310 Year 2 3,482,500 $ $ $409,926 $382,727 $27,200 $43,510 Year 3 3,465,088 $ $ $419,093 $380,813 $38,280 $81,790 Year 4 3,447,762 $ $ $428,465 $378,909 $49,556 $131,346 Year 5 3,430,523 $ $ $438,047 $377,015 $61,032 $192,379 Year 6 3,413,371 $ $ $447,843 $375,129 $72,713 $265,092 Year 7 3,396,304 $ $ $457,858 $373,254 $84,604 $349,696 Year 8 3,379,322 $ $ $468,097 $371,388 $96,709 $446,405 Year 9 3,362,426 $ $ $478,564 $369,531 $109,034 $555,439 Year 10 3,345,614 $ $ $489,266 $367,683 $121,583 $677,022 Year 11 3,328,885 $ $ $500,207 $365,845 $134,363 $811,385 Year 12 3,312,241 $ $ $511,393 $364,015 $147,378 $958,763 Year 13 3,295,680 $ $ $522,829 $362,195 $160,634 $1,119,397 Year 14 3,279,201 $ $ $534,521 $360,384 $174,137 $1,293,534 Year 15 3,262,805 $ $ $546,474 $358,582 $187,892 $1,481,426 Year 16 3,246,491 $ $ $558,695 $356,789 $201,906 $1,683,332 Year 17 3,230,259 $ $ $571,189 $355,005 $216,183 $1,899,515 Year 18 3,214,108 $ $ $583,962 $353,230 $230,732 $2,130,247 Year 19 3,198,037 $ $ $597,021 $351,464 $245,557 $2,375,803 Year 20 3,182,047 $ $ $610,372 $349,707 $260,665 $2,636,468 Year 21 3,166,137 $ $ $624,021 $347,958 $276,063 $2,912,531 Year 22 3,150,306 $ $ $637,976 $346,219 $291,757 $3,204,288 Year 23 3,134,554 $ $ $652,243 $344,488 $307,755 $3,512,043 Year 24 3,118,882 $ $ $666,828 $342,765 $324,063 $3,836,106 Year 25 3,103,287 $ $ $681,740 $341,051 $340,689 $4,176,795 * Assumes 2.75% Grid Escalator

6 March 18, 2015 Columbia Heights Public Schools th Ave NE Columbia Heights, MN Re: Columbia Heights Public Schools Community Solar Garden Subscription Dear Columbia Heights Public Schools: This Letter of Intent ( LOI ) sets forth the preliminary terms and conditions of New Energy Equity, LLC s ( NEE ) proposed installation of, and Columbia Heights Public Schools ( Host Customer ), purchase of a subscription to purchase solar array generated electricity, herein a Subscription, in one or more Community Solar Garden Projects located throughout the State of Minnesota herein the Transaction. For the purposes of this LOI, NEE and Host Customer may collectively be referred to as the Parties or individually referred to as a Party. 1. Transaction Description and Assumptions NEE has made the following assumptions for the purpose of evaluating the viability of the Transaction whereby NEE will pay for the installation and serve as the financier and long term owner of the Transaction and Host Customer will purchase electricity in accordance with the terms outlined below. The following is a list of information provided and/or assumptions made by NEE as of the date of this LOI: I. Total Subscription: 3,500,000 kwh per year II. Power Purchase Agreement (PPA) Energy price: [$.1099 / kwh] III. PPA Yearly Escalator: 0% IV. PPA Term: 25 Years The Host Customer has made the following assumptions for the purpose of evaluating the viability of the Transaction whereby the Host Customer will purchase electricity from Community Solar Garden Transaction under a Power Purchase Agreement as outlined in the terms below. The following is a list of information provided and/or assumptions made as of the date of this LOI: I. Total Subscription: 3,500,000 kwh per year II. Power Purchase Agreement (PPA) Energy price: [$.1099 / kwh] III. PPA Yearly Escalator: 0% IV. PPA Term: 25 Years V. Xcel Year 1 Community Solar Garden Credit: [$.1146] 705 Melvin Avenue Suite 100 Annapolis, MD Main number:

7 VI. Construction Completion: Within 12 months of signing of Power Purchase Agreement (PPA) with Host Customer. 2. Transaction Diligence and Conditions During the term of this LOI, NEE shall assess various additional diligence items as it relates to construction viability and NEE s requirements for the financing of the Transaction. Successful completion of the Transaction will be dependent on the satisfactory review/completion of the following items: 3. Exclusivity I. Due diligence and approval of the financial condition of Host Customer; II. Successful negotiation and execution of Power Purchase Agreement with Host Customer; III. Successful application and award of a Community Solar Garden by Xcel Energy and/or its affiliates; IV. Final approval of the Transaction by NEE s financing partners. NEE is aware that, prior to the date of this LOI, Host Customer may have had several discussions with one or more third parties concerning a possible transaction or transactions which may or may not be similar to the Transaction proposed by NEE. Notwithstanding the foregoing and upon execution of this LOI, Host Customer will not and will cause Host Customer s members, officers, employees, and other agents not to at any time during the three hundred and sixty five (365) day period commencing upon execution of this LOI (the Exclusivity Period ), directly or indirectly, (a) submit, solicit, initiate, encourage or discuss any proposals or offers from any person regarding the Transaction, or (b) enter into any agreement or commitment related to the Transaction, or (c) further participate in any negotiations regarding, or furnish to any other person any additional nonpublic information with respect to, or otherwise further cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other person other than NEE to do or seek any of the foregoing. If NEE notifies Host Customer that NEE will proceed with the Transaction as a result of all diligence items being satisfied, then the Parties shall execute the negotiated Power Purchase Agreement and this LOI shall be terminated. 4. Choice of Law The LOI and contemplated agreements would be governed by Minnesota law, without regard to conflicts of laws principles. 705 Melvin Avenue Suite 100 Annapolis, MD Main number:

8 5. Intellectual Property Any intellectual property of whatever nature and in whatever form contained, which is owned by either Party before or during the term of this LOI, together with any and all enhancements and modifications thereof (and whether used or made available for any purpose in any way connected with the subject-matter of this LOI) shall be and remain the sole and absolute property of such Party and no other Party shall obtain any right, title or interest whatsoever to such intellectual property. 6. Fees and Expenses The Parties will each be responsible for its own fees, costs and expenses (including, but not limited to legal, due diligence, financial advisors, commissions, advisory fees and accounting fees or expenses) incurred in connection with the contemplated Transaction. 7. Access to Information From the date of this LOI through the termination of this LOI, the Parties shall cooperate to furnish to each other such information as from time to time reasonably requested by any other Party for the purpose of completing additional due diligence, preparing proposals and/or procuring the execution and delivery of other agreements. 8. Publicity The Parties shall advise and consult each other prior to the issuance of any public reports, statements or releases pertaining to this LOI or its implementation, or any matters relating to the activities contemplated by this LOI or its implementation. 9. Termination The obligations of each Party to this LOI may be terminated as follows: 10. Binding effect I. by mutual agreement between the Parties; II. execution of a definitive PPA between the Parties; Except for Sections 3, 4, 5, 6, 7, 8, 9, 11, 12 and this Section 10, this letter is not intended to be a binding agreement between the Parties and is only intended to be an expression of mutual understandings until definitive agreements are executed and delivered. Notwithstanding the foregoing, Sections 3, 4, 5, 6, 7, 8, 9, 11, 12 and this Section 10 will bind and inure to the benefit of the Parties and their respective successors and permitted assigns. The termination of this LOI or any failure of the Parties to execute and deliver any or all the agreements contemplated by this LOI for any reason whatsoever shall not give rise to any right whatsoever on the part of either Party to claim for damages, whether under contract, tort, at law or in equity. 705 Melvin Avenue Suite 100 Annapolis, MD Main number:

9 11. Assignment This letter may not be assigned without the other Party's prior written consent. 12. Execution in Counterparts This LOI may be executed in one or more counterparts and by one or more Parties to any counterpart, each of which shall be deemed an original and all of which together shall constitute one and the same LOI. Each signer below represents that they are authorized to execute the LOI on behalf of their respective organizations. New Energy Equity is extremely excited to work with you to bring this Transaction to a successful close. We look forward to building a mutually beneficial relationship that will hopefully lead to many successful future transactions. Please do not hesitate to or call with any questions. Matthew Hankey New Energy Equity LLC mhankey@newenergyequity.com (443) (office) (443) (cell) SIGNATURE PAGE FOLLOWS 705 Melvin Avenue Suite 100 Annapolis, MD Main number:

10 New Energy Equity, LLC Matthew Hankey COO Agreed to and Accepted, as of ( ), 2015, by: Columbia Heights Public Schools By: Name Title 705 Melvin Avenue Suite 100 Annapolis, MD Main number: