Community Shared Solar for Local Governments

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1 Community Shared Solar for Local Governments Holly Lahd, Minnesota Department of Commerce, Division of Energy Resources Lissa Pawlisch, Clean Energy Resource Teams (CERTs)

2 2013 Solar Energy Legislation 1.5% Solar Energy Standard Value of Solar Tariff Methodology Xcel s Solar*Rewards and Made in Minnesota Incentives Community Solar Gardens 2

3 Community Shared Solar Definition: Centrallylocated solar PV systems that provide electricity to participating subscribers

4 Designed to cover your needs The amount of electricity you use each year helps you decide how much solar to get. Your solar garden subscription can cover as little as 200 watts or up to 120% of your usage.

5 Why Community Shared Solar? Photo from: Photo from: Rosedale Estates II

6 How does it work? Cooperative Utility Programs DEVELOPER: installs & assists financing project UTILITY: hosts & manages garden SUBSCRIBERS: individuals or groups to get solar power Utility contracts with developer to set up the garden. Utility operates garden and handles all aspects of relationship with subscribers.

7 How does it work? 3 rd Party Operator develops & runs garden. Maintains relationship w/ subscriber for payment. Utility provides subscriber w/ bill credit. Xcel Energy Program OPERATOR: primary group running the solar garden SUBSCRIBERS: individuals or groups to get solar power UTILITY: approves garden, tracks production, provides credit.

8 How does it work? Pay Up Front / Pre-Pay Model Subscriber purchases a subscription for a onetime fee that covers the life of the agreement. 20 year project timeline.

9 How does it work? Pay As You Go Subscriber pays in installments over time. Subscriber receives bill credit for their share of output on their energy bill the following month. 20 year project timeline.

10 MEPC Counties Electric Service Areas Wright - Hennepin Connexus Xcel MN Valley Dakota Electric 10

11 Timeline Date Spring 2013 September 30, 2013 April 7, 2014 May 7, 2014 September 17, 2014 December 12, 2014 Action Legislature creates community solar garden statute (Minnesota Statute 216B.1641). Xcel files initial community solar garden plan with Public Utilities Commission. Public Utilities Commission issues first order, rejecting the plan and requiring Xcel to file a revised plan. Xcel files revised plan. Public Utilities Commission approves Xcel s revised plan with modifications. Xcel opens solar garden program 11

12 Current Status Xcel began accepting applications on December 12 th at 9 am. As of December 24 th they had received proposals for 427 gardens. 12

13 CERTs: We re here to help CERTs Mission: Connect individuals and their communities to the resources they need to identify and implement community-based clean energy projects

14 Current CERTs efforts 14

15 Who are the players?

16 What role to play?

17 Subscriber Questions to Ask What are you goals in becoming a subscriber? Which model is right for you? How MUCH do you want to subscribe to? What can your market power get you? What factors are most important to you? Location? Cost? Local jobs? Project viability site control, interconnection, terms and conditions of subscriber agreement Examples of RFPs

18 Host Site Photo from:

19 Host Site Considerations 1. Do you have a good site? 2. Term of lease 25 years or longer 3. Form of payment - $ / month? $ / year? In form of a subscription? 4. How much do you need to be paid to make it worth it? 5. What costs might you incur for site prep, maintenance or restoration? 6. Roof or ground mount?

20 Host Site Considerations Roof Lease How old is your roof? 25 year term (or longer) How much space do you have? 1 MW system needs around 150,000 sq ft. Penetrating or not? If it does, does it violate roof warranty? Maintenance and Access? Whose insurance covers what? Site restoration? Land Lease How much space? 1 MW needs around 5-8 acres. Zoning code issues? Site prep, maintenance, restoration: Who does it? Who pays for it? Special site concerns regarding access, view shed, etc.? Could the land be used for a high-value purpose?

21 Outreach Partner

22 Outreach Possibilities Photo credits: Connexus Energy: Wright Hennepin Cooperative:

23 CERTs: Minnesotans Building a Clean Energy Future Learn More: Download our community solar guide, see frequently asked questions, and find utility programs.

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