SolarPACE + Storage Expanding Opportunities and Improving Project Economics. Presented By:

Transcription

1 SolarPACE + Storage Expanding Opportunities and Improving Project Economics Presented By:

2 Introductions GELI Geli provides software solutions to help project developers and hardware suppliers bring commercial & industrial energy storage projects to market faster and easier than ever before. Starting with site analysis through to ongoing automation and operations, Geli software provides data continuity and endto-end project intelligence to deliver savings to end customers. 1

3 Introductions CLEANFUND CleanFund is a nationwide financing platform that solves big challenges for the $60 billion energy efficiency and solar market for U.S. commercial properties. Direct capital provider with 100% focus on Commercial PACE. Our products leverage a new financial technology property assessed clean energy (PACE). Payments are billed and collected in the form of property taxes. 2

4 Agenda» Introduction to energy storage» Adding storage to improve solar PV project economics» Assessing the best opportunities for solar + storage» SolarPACE financing overview» Financing solar + storage systems and project economics» SGIP Incentive» Q&A 3

5 1. INTRODUCTION TO ENERGY STORAGE 3

6 4

7 Energy & Demand WHAT DOES THIS MEAN? Energy (kwh) Energy is a measure of the amount of power (kw) consumed over a specific period of time (in this case, hours) Demand (kw) Demand corresponds to instantaneous power (kw) consumed and is typically measured as the average of a 15 minute period Demand (kw) Peak Demand Energy Time (hours) Time 5

8 C&I Energy Use Daily Load Profile Annual Fingerprint Off-Peak Peak Off-Peak Demand (kw) Hour 6

9 Solar PV & Building Load Baseline Load Solar PV Production Net Load with PV 7

10 2. ADDING STORAGE TO IMPROVE SOLAR PV PROJECT ECONOMICS 3

11 Solar + Storage: Why = 3 Baseline Solar PV Only Solar + Storage Demand (kw) Off-Peak Peak Demand (kw) Off-Peak Peak PV kw reduction 800 Demand (kw) Off-Peak Peak ESS kw reduction Hour Hour Hour Gross Building Load Net Building Load Post-Solar Net Building Load Post-Storage Battery State of Charge Solar PV Production Battery Discharges Battery Charges SOC (%)

12 Case Study: Solar + Storage Case Study: Health Care Facility Location: American Southwest Energy Rate: $0.041/kWh Demand Rate: $22.90/kW (avg.) Net Present Value $598,858 Scenario Energy Charges Demand Charges Total (incl. fixed charges) Baseline $249,574 $265,569 $522,385 $318,344 Storage Only $249,579 $238,144 $494,980 Solar PV Only $210,367 $265,549 $483,178 $108,890 Solar + Storage $210,367 $199,355 $416,984 PV Only ESS Only PV+ESS 9

13 3. ASSESSING SOLAR + STORAGE OPPORTUNITIES WITH GELI SOFTWARE 3

14 Key Qualifying Criteria Technology Criteria Hurdle Retail rate >$0.10/kWh Solar PV Net-metering or similar program Compensation >85% retail rate State and/or local incentives Does not handicap project economics Energy Storage High demand charges Short duration peak load events Predictable peak load events >$13/kW <90 min Peak events at regular intervals State and/or local incentives Does not handicap project economics 10

15 Geli ESyst Key inputs: Utility bill Interval Data Solar PV Data 11

16 Utility Bills P.O. Box 300 Rosemead, CA Your electricity bill STEELSCAPE, LLC / Page 1 of 4 For billing and service inquiries call , For emergency services call 24 hrs a day, 7 days a week Date bill prepared: Jan 30 '16 Customer account Service account ARROW RTE RCH CUCAMONGA, CA Rotating outage Group N001 STEELSCAPE, LLC / Page 3 of 4 Your account summary Net energy metering monthly billing month #9. Previous Balance $110, Usage comparison Wire credit adjustment -$110, For information concerning your net consumption and Balance forward Jan '14 Jan $0.00 '15 Feb '15 Mar '15 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 generation, please refer to the "Details of your tracked Your new charges $113, charges" section of the bill. Total kwh used 1,482,000 1,500,832 1,569,792 1,610,576 1,676,264 1,743,424 1,681,448 1,947,512 1,871,368 1,946,568 1,902,200 1,928,656 1,798,656 1,719,104 Total amount you owe by Feb 18 '16 $113, Number of days Appx. average kwh 46,312 46,901 52,326 55,537 52,383 58,114 57,980 60,859 64,529 64,885 59,443 66,505 54,504 57,303 used/day Compare the electricity you are using Electricity (kwh) Demand (kw) Details of your new charges Your next billing cycle for meter V345N will - Winter Season Mid peak Consumption 696,784 end on or about Feb 26 '16. 3,936 Your (Jan rate: 15 TOU-8-B '16 10:00 BIP to (Direct 10:15) Access) Off peak 1,022,320 4,384 Billing (Jan period: 20 '16 Dec 05:00 28 '15 to to 05:15) Jan 27 '16 Reactive (30 days) usage is 793,616 kvarh Winter Season NetGeneration Maximum demand is 4,384 kw Delivery charges Reactive demand is 2,112 kvar Mid peak 0 Facilities rel demand 4,384 Firm kw service x $ level is 600 x 4/30 kwdays $8, Off peak 0 Facilities rel demand 4,384 kw x $ x 26/30 days $64, Total 1,719,104 Energy-Winter Your daily average electricity usage (kwh) Mid peak 92,905 kwh x $ $1, Off peak 136,309 kwh x $ $2, Mid peak 603,879 kwh x $ $10, Off peak 886,011 kwh x $ $15, Customer charge $42.60 Customer charge $ Power factor adj 2,112 kvar x $ $1, Win mid pk-bip credit 1,952 kw x -$ $2, Direct Access cost responsibility surcharge * Jan '14 Jan '15 Dec '15 Jan '16 DA CRS DWR bond 229,214 kwh x $ $1, DA CRS DWR bond 1,489,890 kwh x $ $8, PCIA 229,214 kwh x $ $ PCIA 1,489,890 kwh x $ $ CTC 229,214 kwh x -$ $ CTC 1,489,890 kwh x -$ $ Other charges or credits Generation Municipal Surcharge $ Subtotal of your new charges $113, UUT exempt Your new charges $113, Your Delivery charges include: $20, transmission charges $57, distribution charges -$1, nuclear decommissioning charges $18, public purpose programs charge $7, new system generation charge Your overall energy charges include: $1, franchise fees Additional information: Service voltage: 12,000 volts Winter mid peak: hrs Winter off peak: hrs Generation Municipal Surcharge (GMS) factor: Vintage CRS 12

17 Interval Data What is it? Interval data is a collection of 15- minute smart meter readings that record consumption and peak load in that period. Where to get it? Utility website Green Button UtilityAPI One year is 35,040 data points! 13

18 Solar PV Data (8760 data) What is it? Where to get it? PVWatts PVSyst HelioScope 8760 data refers to the number of number of hours in one calendar year! 14

19 Geli ESyst Create your free account at esyst.geli.net 15

20 4. SOLARPACE FINANCING OVERVIEW 3

21 Introduction to PACE Financing» Legal framework for financing energy efficiency and renewable energy projects through property tax assessments repayment via property tax bill» PACE has achieved strong growth nationwide Legislation passed in 33 states & D.C. 44 PACE programs created or being developed» PACE Adds Value: Credit constraints are reduced Up-front cost barriers are eliminated Payments match life of improvements to property Financing of projects that might not be otherwise available 16

22 SolarPACE Financing 17

23 How SolarPACE Works 18

24 Where SolarPACE Works Property Requirements Property in qualifying PACE location Privately owned property, not publically owned Property in a good location with options for repurposing Owner has no bankruptcies in past 7 years No property tax default on subject property for past 3 years No open environmental issues Project Requirements PACE financing is less than 20% of improved property value PACE financing plus outstanding mortgage balance(s) is equal to or less than 100% of the improved property value Lender consent to PACE assessment 19

25 SolarPACE Selling Points 20

26 5. FINANCING SOLAR + STORAGE SYSTEMS AND PROJECT ECONOMICS

27 Financing Solar + Storage SolarPACE + Storage Solution:» Long term financing for entire solar + storage project» Cash flow positive from day 1» Increases the viability of many solar projects» Increases the positive cash flow and NPV of solar projects» Factors in the shorter life of storage and longer life of solar» Factors in SGIP rebate benefit 21

28 Sample Project 1 Solar Only PV size: PV price: PV production: 375 kw $2.10 / W 1,480 kwh / kw Cumulative Operational Savings* Yr 1: -$8,400 Yr 5: -$26,700 PV Yr 1 savings: $60,570 Yr 10: -$10,700 Value of solar: $0.10 / kwh NPV = $119,750 Yr 15: $52,200 Yr 20: $168,700 Yr 25: $345,800 Yr 30: $591,100 *No income tax benefits or adjustments considered 22

29 Sample Project 1 Adding Storage PV size: 375 kw Cumulative Operational Savings* PV price: $2.10 / W PV production: 1,480 kwh / kw PV Yr 1 Savings: $60,570 Value of Solar: $0.10 / kwh ESS kwh: 900 ESS price: $800 / kwh ESS Yr 1 Savings: $57,970 NPV = $221,744 Yr 1: $17,800 Yr 5: $104,500 Yr 10: $166,000 Yr 15: $275,000 Yr 20: $313,500 Yr 25: $412,700 Yr 30: $581,300 *No income tax benefits or adjustments considered 23

30 Sample Project 2 Solar Only PV size: PV price: PV production: 300 kw $2.23 / W 1,449 kwh / kw Cumulative Operational Savings* Yr 1: $5,200 Yr 5: $42,400 PV Yr 1 savings: $64,170 Yr 10: $129,200 Value of solar: $0.15 / kwh NPV = $301,256 Yr 15: $266,100 Yr 20: $459,800 Yr 25: $717,600 Yr 30: $1,047,900 *No income tax benefits or adjustments considered 24

31 Sample Project 2 Adding Storage PV size: 300 kw PV price: $2.23 / W PV production: 1,449 kwh / kw PV Yr 1 Savings: $64,170 Value of Solar: $0.15 / kwh ESS kwh: 160 ESS price: $2,180 / kwh ESS Yr 1 Savings: $20,280 NPV = $329,605 Cumulative Operational Savings* Yr 1: $13,900 Yr 5: $85,700 Yr 10: $163,800 Yr 15: $291,900 Yr 20: $488,000 Yr 25: $748,200 Yr 30: $1,081,000 *No income tax benefits or adjustments considered 25

32 Results of Adding Storage Tangible:» Improve operational cash flow» Make marginal projects more viable Intangible:» Insulate customers against rate structure changes» Provide leading edge solution to customers» Add urgency to sales efforts declining SGIP rebate 26

33 6. SGIP INCENTIVE FOR CALIFORNIA PROJECTS

34 Self Generation Incentive Program (CSI for Storage!)»PG&E Pacific Gas & Electric»SCE Southern California Edison»CSE (SDG&E) Center for Sustainable Energy»SoCalGas Southern California Gas Company 27

35 Funding Amounts Program Step No ITC w/ ITC $ Available MWh Step 1 $0.50/Wh $0.36/Wh $34.4M 68.8 Step 2 $0.45/Wh $0.32/Wh $94.7M Step 3 $0.40/Wh $0.29/Wh $92.9M Step 4 $0.35/Wh $0.25/Wh $92.9M Step 5 $0.30/Wh $0.22/Wh $34.4M

36 Incentive caps Duration (hrs) % of Base Capacity (MWh) % of Base % % % % % % Max size for 100% incentive rate is 1 MW / 2 MWh 29

37 How to Apply 1. Online Reservation Request Form 2. Application Fee 3. Equipment Specifications 4. Utility Bill + Interval Data 5. Preliminary Monitoring Plan See the Geli Guide to SGIP 30

38 Next Steps 1. Sign up for ESyst 2. Design a system and confirm ESS pricing with selected vendor 3. Send Geli output files Analysis Report PDF and Financial Model Excel to CleanFund 4. CleanFund will prepare SolarPACE economic analysis for end-client presentation

39 THANKS! Q&A Andrew Krulewitz Geli Brandon Deno CleanFund

40 Geli ESyst Demo Create your free account at esyst.geli.net