Solar + Storage: How to Develop & Sell High Value Projects September 7, 2016
Speakers Andrew Krulewitz Dir. Marketing & Strategy Fernando de Samaniego Director of Sales Slide 2
About Geli Residential Commercial Industrial Data Power Converter Meter Financial Performance Energy Bill Battery Solar PV System Management Analyze & Design Connect & Automate Manage & Aggregate Slide 3
Agenda Review Basics of Solar + Storage Qualifying Projects Site Analysis Project Economics Project Finance Final Customer Pitch Contact & Questions Slide 4
Energy & Demand Energy (kwh) Peak Demand Energy is a measure of the amount of power (kw) consumed over a specific period of time (in this case, hours) Demand (kw) Demand (kw) Demand corresponds to instantaneous power (kw) consumed and is typically measured as the average of a 15 minute period Time Energy (hours) Time Slide 5
Solar + Storage: Why 1 + 1 = 3 900 Baseline Solar PV Only Solar + Storage Off-Peak Peak Off-Peak Peak Off-Peak Peak 900 900 850 800 850 800 PV kw reduction 850 800 Demand (kw) 750 700 650 600 Demand (kw) 750 700 650 600 Demand (kw) 750 700 650 600 ESS kw reduction 550 550 550 500 500 500 450 4 8 12 16 20 450 4 8 12 16 20 450 4 8 12 16 20 Hour Gross Building Load Solar PV Production Hour 100 Hour Net Building Load Post-Solar Net Building Load Post-Storage Battery Discharges Battery Charges SOC (%) Battery State of Charge 0 Slide 6
Solar + Storage: Why 1 + 1 = 3 Scenario Case Study: Health Care Facility Location: American Southwest Energy Rate: $0.041/kWh Demand Rate: $22.90/kW (avg.) Energy Charges Demand Charges Total (incl. fixed charges) Baseline $249,574 $265,569 $522,385 Storage Only $249,579 $238,144 $494,980 Solar PV Only $210,367 $265,549 $483,178 Solar + Storage $210,367 $199,355 $416,984 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Net Present Value $598,858 $318,344 $108,890 PV Only ESS Only PV+ESS Slide 7
Monetize Demand Savings Fixed Payment Shared Savings PPA 2.0 Real Estate Lease The customer pays a fixed monthly payment to the system owner, similar to a third-party solar PV lease The customer and system owner agree to split the bill savings, similar to efficiency upgrades The customer agrees to purchase all of the solar PV system generation at a rate that accounts for energy and demand savings The system owner pays the customer to site an energy storage system on premises with pass-through of any energy savings (subject to measurement and verification and in lieu of any grid service revenue) Slide 8
PPA 2.0 Qualifying Projects Slide 9
Key Qualifying Criteria Technology Criteria Hurdle Solar PV Energy Storage Retail rate Net-metering or similar program State and/or local incentives High demand charges Short duration peak load events Predictable peak load events State and/or local incentives >$0.10/kWh Compensation >85% retail rate Does not handicap project economics >$13/kW <90 min Peak events at regular intervals Does not handicap project economics Slide 10
Markets State High Energy Costs High Demand Costs Incentives California New York MassachuseCs Hawaii Michigan New Jersey ConnecGcut Kentucky Slide 11
Tariffs Reading the Bill Details of your new charges Your rate: TOU-8-B Billing period: May 4 '16 to Jun 3 '16 (30 days Winter/Summer Season) Delivery charges Facilities rel demand 2,352 kw x $16.89000 x 28/30 days $37,076.93 Facilities rel demand 2,352 kw x $18.21000 x 2/30 days $2,855.33 Energy-Winter Mid peak 480,044 kwh x $0.01792 $8,602.39 Off peak 642,764 kwh x $0.01792 $11,518.33 Energy-Summer On peak 23,592 kwh x $0.01502 $354.35 Mid peak 33,352 kwh x $0.01502 $500.95 Off peak 29,336 kwh x $0.01502 $440.63 DWR bond charge 1,209,088 kwh x $0.00539 $6,516.99 Customer charge $332.65 Customer charge $20.55 Power factor adj 1,616 kvar x $0.51000 x 28/30 days $769.22 Power factor adj 1,616 kvar x $0.55000 x 2/30 days $59.25 Generation charges DWR DWR energy credit 1,209,088 kwh x -$0.00022 -$266.00 SCE Demand-Summer On peak 2,144 kw x $16.74000 x 2/30 days $2,392.70 Mid peak 2,160 kw x $3.16000 x 2/30 days $455.04 Energy-Winter Mid peak 480,044 kwh x $0.04473 $21,472.37 Off peak 642,764 kwh x $0.02985 $19,186.51 Energy-Summer On peak 23,592 kwh x $0.06264 $1,477.80 Mid peak 33,352 kwh x $0.04197 $1,399.78 Off peak 29,336 kwh x $0.02816 $826.10 Subtotal of your new charges $115,991.87 State tax 1,209,088 kwh x $0.00029 $350.64 Your new charges $116,342.51 Energy is a measure of the amount of power (kw) consumed over a specific period of time (in this case, hours) and measured in kwh Demand corresponds to instantaneous power (kw) consumed and is typically measured as the average of a 15 minute period Fixed charges vary between utilities and customer classes, Slide 12
Facilities With Attractive Loads Commercial & Institutional Facilities Hospitals Schools Hotels Malls and retail spaces Car washes Religious facilities Industrial Facilities Farms (i.e. dairy) Oil and gas Plastic injection Small manufacturing Cement production Lumber yards Slide 13
Load Profiles Peaky Load Flat Load Penitentiary University Slide 14
Solar PV Can Improve Load Profiles Without Solar PV With Solar PV Slide 15
Predictable Loads Unpredictable Load Predictable Load EV Charging Station Lumber Yard Slide 16
Solar PV Can Improve Predictability Predictable (But Flat) Predictable (And Peaky) Slide 17
Solar PV Over-generation Baseline Solar PV Only Solar + Storage Slide 18
Project Scorecard Technology Criteria Hurdle Yes/No Solar PV Energy Storage Retail rate Net-metering Incentives Demand charges Peak events Predictability Incentives >$0.10/kWh Compensation >85% retail rate Beneficial >$13/kW <90 min High Beneficial Total If >4 Yes, this project is worth analyzing Slide 19
Case Study Facility Info Utility Info Load Type Location: Greater San Diego Facility type: Small manufacturing Utility: San Diego Gas & Electric Rate: AYTOU Peak energy: $0.1145/kWh Peak demand: $23.45/kW Before PV Peaks Moderate Predictability Moderate After PV: Peaks High Predictability High Slide 20
Case Study Scorecard Technology Criteria Hurdle Yes/No Retail rate >$0.10/kWh Yes Solar PV Net-metering Compensation >85% retail rate Yes Incentives Beneficial Yes Demand charges >$13/kW Yes Energy Storage Peak events <90 min Yes Predictability High Yes Incentives Beneficial Yes Total If >4 Yes, this project is worth analyzing Yes Slide 21
PPA 2.0 Site Analysis Slide 22
What You Need Utility bills Interval data Solar PV production data General understanding of available incentives & costs Slide 23
Utility Bill P.O. Box 300 Rosemead, CA 91772-0001 www.sce.com Your electricity bill STEELSCAPE, LLC / Page 1 of 4 For billing and service inquiries call 1-866-701-7869, For emergency services call 24 hrs a day, 7 days a week Date bill prepared: Jan 30 '16 Customer account 2-19-476-4130 Service account 3-009-8258-98 11190 ARROW RTE RCH CUCAMONGA, CA 91730 STEELSCAPE, LLC / Page 3 of 4 Rotating outage Group N001 Your account summary Usage comparison Jan '14 Jan '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 Net energy metering monthly billing month #9. 1,500,832 1,569,792 1,610,576 1,676,264 1,743,424 1,681,448 Previous Balance used$110,021.97 1,482,000 Total kwh 1,947,512 1,871,368 1,946,568 1,902,200 1,928,656 1,798,656 1,719,104 Number of days -$110,021.97 32 For information concerning your net consumption and 29 30 32 29 33 30 Wire credit adjustment 32 30 29 32 30 29 32 $0.00 generation, please to "Details of your tracked Balance forward refer the 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 $113,601.64 charges" section of the bill. Your new charges used/day Total amount you owe by Feb 18 '16 $113,601.64 Details of your new charges Compare the electricity you are Your using rate: TOU-8-B BIP (Direct Access) Billing period: Dec 28 '15 to Jan 27 '16 (30 days) Electricity (kwh) Demand (kw) Your next billing cycle for meter V345N-000403 will Winter Season - Consumption Delivery charges end on or about Feb 26 '16. 4,384 kw x $14.88000 Mid peak 696,784 3,936 (Jan Facilities 15 '16 10:00 rel demand to 10:15) x 4/30 days $8,697.86 Facilities rel demand Reactive 4,384 usage kw is x 793,616 $16.89000 kvarh x 26/30 days $64,172.99 20 '16 05:00 to 05:15) Off peak 1,022,320 4,384 (Jan Winter Season NetGeneration Energy-Winter Maximum demand is 4,384 kw Reactive demand 92,905 kwh is 2,112 x $0.01974 kvar Mid peak 0 Mid peak $1,833.94 Off peak Firm service 136,309 level kwh is 600 x $0.01974 kw $2,690.74 Off peak 0 Mid peak 603,879 kwh x $0.01792 $10,821.51 Total 1,719,104 Off peak 886,011 kwh x $0.01792 $15,877.32 Your daily average electricity usage (kwh) Customer charge $42.60 Customer charge $308.89 57303 Power factor adj 2,112 kvar x $0.51000 $1,077.12 Win mid pk-bip credit 1,952 kw x -$1.16000 -$2,264.32 38202 Direct Access cost responsibility surcharge * 19101 DA CRS DWR bond 229,214 kwh x $0.00526 $1,205.67 DA CRS DWR bond 1,489,890 kwh x $0.00539 $8,030.51 0 PCIA 229,214 kwh x $0.00329 $754.11 '16PCIA 1,489,890 kwh x $0.00008 $119.19 Jan '14 Jan '15 Dec '15 Jan CTC 229,214 kwh x -$0.00099 -$226.92 CTC 1,489,890 kwh x -$0.00008 -$119.19 Other charges or credits Generation Municipal Surcharge $579.62 Subtotal of your new charges $113,601.64 UUT exempt Your new charges $113,601.64 Your Delivery charges include: $20,598.46 transmission charges $57,830.61 distribution charges -$1,202.23 nuclear decommissioning charges $18,402.44 public purpose programs charge $7,082.71 new system generation charge Your overall energy charges include: $1,024.21 franchise fees Additional information: Service voltage: 12,000 volts Winter mid peak: 273.00 hrs Winter off peak: 447.00 hrs Generation Municipal Surcharge (GMS) factor: 0.009062 2001 Vintage CRS Slide 24
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. One year is 35,040 data points! Where to get it? Utility website Green Button UtilityAPI Slide 25
No Metering? Then you ll need to install a low-cost meter to gather data for site analysis EKM Metering egauge Systems
Solar Production (8760 Data) What is it? 8760 data refers to the number of number of hours in one calendar year! Where to get it? PVWatts PVSyst HelioScope Slide 27
Analysis Tool: Geli ESyst Upload interval data here Upload 8760 data here Slide 28
Facility Fingerprint Slide 29
Financial Assumptions Project Term Taxes Depreciation Discount Rate Utility Assumptions Slide 30
Cost Assumptions Solar PV Energy Storage Things to consider: $1000/kWh is an estimation for turn-key system prices today There are minimal soft cost synergies for solar + storage Slide 31
Site Analysis Outputs Compare system size combinations, savings, and financial performance Selecting a system generates a PDF report & project proforma Slide 32
PPA 2.0 Project Economics Slide 33
Site Survey: Indoor vs. Outdoor Parking Lot Slide 34
Get System Quotes It s more than hardware costs: Turn-key hardware Delivery & payment terms Warranty options Ongoing system operations Est. installation cost Slide 35
Re-run Project Economics Revise CAPEX Estimates Input Ongoing Costs Things to consider: Software monitoring Hardware maintenance Utility rate escalators Future component costs (such as batteries and inverters) Slide 36
PPA 2.0 Project Finance Slide 37
Contracting Structures Fixed Payment Shared Savings PPA 2.0 Real Estate Lease The customer pays a fixed monthly payment to the system owner, similar to a third-party solar PV lease The customer and system owner agree to split the bill savings, similar to efficiency upgrades The customer agrees to purchase all of the solar PV system generation at a rate that accounts for energy and demand savings The system owner pays the customer to site an energy storage system on premises with pass-through of any energy savings (subject to measurement and verification and in lieu of any grid service revenue) Slide 38
Risk Allocation Customer Owner Backup Power/Microgrid Demand Charge Management Demand Response PV Self Consumption PV Curtailment Fixed Payment PPA 2.0 Shared Savings Real Estate Lease Frequency Regulation /Grid Services Backup Power/Microgrid Demand Response Solar + Storage Battery Frequency Regulation Solar + Storage Battery Battery Group /Grid Services umption PV Curtailment Solar PV Backup Power/Microgrid Demand Response Frequency Regulation Solar + Storage Battery Battery Group /Grid Services Customer Shared Shared Owner EV Charger/Electric Office/Commerical Vehicle Power Converter Generator Geli Node/Geli Jar Meter Lightbulb House Building Electric le Battery Power Converter Battery Group Generator Geli Node/Geli Jar Meter Lightbulb House Office/Commerical Building Something Terrible Factory/Industrial Site Grid/Utility Pole Grid Scale Power Plant Savings Energy Use Power Coming In Power Going Out No Power Change Has Happened y Pole Grid Scale Power Plant Office/Commerical Savings Energy Use Power Coming In Power Going Out No Power Change House Building Owner Owner Owner Shared Something Terrible Has Happened PV Self Consumption PV Curtailment Backup Power/Microgrid Demand Response Frequency Regulation Computer Paper Report Paper Report Graph Data 1 Load Profile Security 1 Security 2 /Grid Cloud Services Alarm 1 Solar + Storage Battery Battery Group No Power Change Something Terrible Has Happened port Paper Report Something Terrible Graph Data 1 Load Profile Security 1 Security 2 Cloud Alarm 1 No Power Change Has Happened Alarm 2 Interoperability Renewable Smoothing Time-of-Use Shifting Financial Savings 2 Customer Customer Shared Varies EV Charger/Electric ability Renewable Smoothing Time-of-Use Shifting Cloud Vehicle Alarm 1 Financial Savings 2 Power Converter Generator Geli Node/Geli Jar Meter Lightbulb House Office/Commerical Building Graph Data 1 Load Profile Security 1 Security 2 Cloud Alarm 1 Customer Customer Shared Varies te Grid/Utility Pole Grid Scale Power Plant Savings Energy Use Power Coming In Power Going Out No Power Change Something Terrible Has Happened g Time-of-Use Shifting Slide 39
Engage With Financiers Does your existing financier provide solar + storage finance solutions? If not, engage with Geli to determine best fit finance solution Slide 40
Re-run Project Economics Just as with a solar PV project, you must consider how the cost of project finance will affect nomoney-down options Slide 41
PPA 2.0 Present the Business Case Slide 42
Selling the Customer Savings should be meaningful Hedge against rising demand charges Previous solar + storage or energy storage experience preferred, but not required Backup power can be more attractive than savings Existing relationships are key Protect against potential large additions to load Slide 43
Contact Fernando de Samaniego Director of Sales e: fernando@geli.net p: 415-823-9680 Introducing the Android for Grid Batteries Energy Storage It s All About the Software Growing Energy Labs, Inc. 657 Mission St., Suite 500 San Francisco, CA 94105 Behind-the-Meter Energy Storage Goes Wholesale Slide 44