Photo: Rob Davis, Fresh Energy MINNESOTA RESIDENTIAL 1
GOOD FOR YOUR WALLET Good for the environment Every month you pay your energy bill. Every month your dollars are used to import and burn fossil fuels, and you have no control over the price. And traditional solar usually requires an up-front investment, a perfect roof, and ongoing maintenance. That s where the US Solar Sunscription comes in, eliminating all of these issues. Our highly efficient Solar Gardens provide residential customers with solar benefits that reduce their utility bill for the long term, with no impact to their roof. EXPECTED SAVINGS $10,000+ FOR THE AVERAGE MINNESOTAN COMMUNITY SOLAR is a program that makes solar more accessible, allowing for multiple people to participate in one large project called a SOLAR GARDEN. YOUR SUNSCRIPTION is an agreement with US Solar designed to provide significant, long-term savings without requiring investment, maintenance, or a suitable rooftop. It represents a portion of the renewable energy produced at the Solar Garden. 2
A SIMPLE SOLUTION It s easy saving green VALUABLE ACCESSIBLE SIMPLE At US Solar, there are no up-front costs or annual fees. You only pay for the energy that is actually produced. We optimize financing and energy production, so you can receive solar benefits at the lowest cost. A Sunscription is connected to your electricity bill, and doesn t physically connect to your home. You subscribe to the energy produced at a Solar Garden, rather than owning the actual materials. We design, build, and operate the Solar Garden. Your monthly payment goes toward initial project costs and long-term maintenance of the Solar Garden. Your Sunscription Dashboard provides convenient access to everything you need, all in one place. Enjoy the benefits of solar, let us do the work. 3
SHARE IN THE SAVINGS The US Solar Advantage NOTHING ON YOUR ROOF No headaches. No hassles. Only pay for the electricity that is actually produced. SAVINGS WITH $0 DOWN Benefit from solar with no upfront cost. Have an extra dinner out each month with the money you saved on your electric bill. LOCK IN YOUR PRICES Enjoy long-term price certainty. Secure your electric rates today to protect yourself from rate hikes tomorrow. ECO FRIENDLY Replace our need for imported fossil fuels with clean, renewable, solar energy. HIGHLY EFFICIENT US Solar uses high quality panels and components to capture the most savings from the sun. PORTABLE & TRANSFERABLE Moving? No problem. Bring your Sunscription with you or transfer it to someone else. US Solar is a leading provider of Solar Garden solutions to schools, cities, and businesses in Minnesota. With our midwestern roots and strong financial background, we ve earned the trust of Minnesotans across the state. Our team believes in doing things the right way, using quality materials, and planning responsibly for the long term. We re dedicated to making Minnesota a better place, one solar project at a time. JOIN US TODAY 4
HOW IT WORKS Your path to solar savings US SOLAR SOLAR GARDEN Make your electric bill work for you, with renewable energy. Take a few minutes to share your past electricity use with us, and we ll send you a personalized proposal. See how much you can save, and secure your spot today. You re on your way to a brighter tomorrow. US Solar constructs and manages the Solar Garden HOW YOU SAVE The Solar Garden generates energy that goes into Xcel s grid +$$$ Receive bill credits from Xcel -$$ Pay US Solar for your Sunscription +$ Save the difference SUBSCRIBER The Subscriber receives Bill Credits from Xcel and pays US Solar for their Sunscription to the Solar Garden XCEL ENERGY Xcel Energy pays the Subscriber in Bill Credits for their Sunscription s portion of the Solar Garden s energy 5
NEW BILL, NEW SAVINGS Adding it up an annual example Xcel puts credits on your bill for subscribing to the Solar Garden s energy. The bill credits reduce, or even eliminate, the amount you owe Xcel. Your monthly payment to US Solar is priced to save you 20% in the first year. NOW NO SAVINGS Utility Bill Charges $1300 WITH YOUR SUNSCRIPTION SM SAVE $300 in the first year Utility Bill US Solar Bill Charges $1300 Credits -$1300 + Charges $1000 Your Savings is equal to the difference between the Bill Credits Xcel applies to your electric bill, and the Payments you make to US Solar. Total $0 This is an illustration of an annual example, and is based on the 2018 Enhanced Applicable Retail Rate (ARR) structure for MN residential customers under the Solar Rewards Community program. Actual savings are subject to a number of factors, including actual solar production, utility electricity rates, and Sunscription Agreement terms. 6
POWERFUL VALUE The benefits of clean energy INCREASE SUSTAINABLE & RENEWABLE ENERGY Why import fossil fuels when the sun is constantly replenishing Minnesota s solar energy supply? Solar keeps our money in the local economy. Each US Solar Solar Garden can power approximately 225 homes. IMPROVE PUBLIC HEALTH & ENVIRONMENTAL QUALITY Air and water pollution from fossil fuels is detrimental to human health. Solar does not emit air pollution and does not require water to operate helping to keep our environment safe for generations to come. REDUCE GLOBAL WARMING EMISSIONS From manufacturing to decommissioning, the solar system life-cycle is easier on the planet. Unlike burning fossil fuels, generating solar energy produces little to no global warming emissions. 7
25 YEARS OF SAVINGS How big can YOU save? We already know that you ll be saving big on harmful emissions, but how much can you save on your electricity costs? Your savings is dependent on how fast Xcel s electric retail rates change, because your Bill Credits are affected by these changes. While we can t predict exactly how many Bill Credits you ll receive, the table to the right demonstrates a realistic range of what you can expect. How Xcel's rate changes can affect Subscriber Savings* Average Annual Increase of Xcel's Retail Rates 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $3,400 $5,600 $8,000 $10,500 $13,300 $16,300** $19,500 *25 year savings estimates based on an average MN home **Xcel s rates have increased an average of 3.5% per year during 2000-2014, but we estimate your savings based on a more conservative 2.5% increase. 8
TAKE IT WITH YOU Moving? No problem. Your Savings helps cover any future change fees. Sunscription Year Estimated Savings Year 1 $300 Year 2 $307 Year 3 $315 Average annual savings Moving? - $0 If you move, bring your Sunscription to your new residence as long as you are still eligible. (Xcel electric customer & adjacent county to Solar Garden) If a size reduction is needed, prorate fees below. No longer eligible? -$200 If you move and are no longer eligible, you can cancel or transfer your Sunscription. Transferring? - $0 You can also transfer your Sunscription to another eligible person at any time. 9
LONG DISTANCE VISION Insight into your Sunscription Your personal Sunscription Dashboard provides convenient access to everything you need: Monitor monthly energy production Review payment history Update payment and contact information Submit customer service requests Just like your Sunscription, your dashboard requires no management (unless you need to make a change). Through automatic payment processing and the project s offsite location, your Sunscription is structured to run on its own. Everything in one place. Our goal is to make solar simple for you. YOU ARE OUR TOP PRIORITY We re committed to providing the best possible service. Whether you need to relocate your Sunscription to a new address, transfer to another person, or simply have a question about your Dashboard; US Solar will make every effort to meet your needs with quality service. The US Solar team truly values your participation. People like you make community solar possible. 10
IT S EASY TO START SAVING The sign-up process Step 1: Your Information First, submit your contact and Xcel account information into the US Solar web form: www.us-solar.com/residential/mn/signup. Step 2: Your Electricity Usage Next, you ll receive an email inviting you to share your electric usage history with us. Follow the provided instructions to allow US Solar to view your Usage History Only on your online Xcel account. This only takes a few minutes. Step 3: Your Sunscription Agreement Last, review your personalized proposal via email. To complete the process, digitally authorize a soft credit check (680+), and digitally sign your Sunscription Agreement and Xcel s Consent Form.! Please Note: the Sunscription Agreement, Credit Check Authorization, and Xcel Account must all be recorded under the same name. CONGRATULATIONS Let s Start Saving! As construction begins, you will be assigned to a specific Solar Garden. Sign in to your Dashboard and set up your automatic monthly payments. After the Solar Garden begins producing energy, your payments and bill credits will begin! QUESTIONS? Please refer to the Sunscription FAQs section of this Overview or the Subscriber Agreement Disclosure Checklist on the Learn More page of our website. 11
Price ($/kwh) DEEP DIVE: BILL CREDITS $0.35 $0.30 Bill Credit Rates $0.25 $0.20 Energy produced by the Solar Garden is valuable to the local electrical grid. Xcel compensates you financially for this energy by applying a Bill Credit on to your electric bill. The Bill Credit is made up of two components: A variable Applicable Retail Rate ( ARR ) that Xcel charged for electricity in the prior year ($0.13539/kWh in 2018) A fixed renewable enhancement representing the environmental benefit of generating renewable energy ($0.02/kWh) $0.15 $0.10 $0.05 $0.00 1 Years 25 Estimated Bill Credit Rate: 2.5% Sunscription Rate Low Bill Credit Rate: 1.5% High Bill Credit Rate: 3.5% This Bill Credit structure is established in Xcel s regulatory tariff (community solar program rules), and this structure is locked in for the duration of the program. Residential Xcel customers have recently been paying about $0.1354/kWh, which would establish a $0.1354 ARR base Bill Credit value. For a typical Solar Garden, the renewable enhancement is fixed at $0.02/kWh. These two components add up to the 2018 Bill Credit value of $0.15539/kWh. The graph above compares potential Bill Credit Rates over the 25-year Sunscription term. Sunscription Rate: $/kwh paid to US Solar each year. This rate is locked in when you sign your Agreement, so you know the exact price you will pay each year. High Bill Credit Rate: if Xcel s Retail Rates increase an average of 3.5% each year. While we label this increase as high, it actually reflects Xcel s historical rate increases. (Between 2000 and 2014, Xcel s rates have increased an average of 3.5% each year. In more recent years, its rates have increased even faster.) Estimated Bill Credit Rate: if Xcel s rates increase an average of 2.5% each year. We use this more conservative estimate for savings calculations. Low Bill Credit Rate: if Xcel s rates increase an average of 1.5% each year. While less consistent with rate trends, this lower rate of increase is possible. Savings (per kwh) is represented by the area between each Bill Credit Rate line and the Sunscription Rate line. The faster Xcel s Retail Rates increase, the larger the difference between the Credit and Sunscription rates, and the more savings you ll receive. 12
SUNSCRIPTION FAQs KEY POINTS 1. What is a Sunscription? What am I paying for? A Sunscription is designed to save money by allowing you to subscribe to the energy produced at a Solar Garden, rather than owning the actual materials. Through the community solar program, Xcel Energy purchases the energy from the Solar Garden through monetary Bill Credits applied right to your electric bill. US Solar designs, constructs, and operates Solar Gardens. US Solar also organizes the financing for the Solar Garden, so that you have no up-front costs. Your monthly payment to US Solar goes towards covering those initial project costs and the planned maintenance of the Solar Garden. 2. How does my Sunscription save me money? $ Bill Credits $ US Solar Payments = Savings Your savings are equal to the difference between the Bill Credits you receive from Xcel and the payments that you make to US Solar. We don t know the exact amount you ll save, but we estimate the energy production and corresponding Bill Credits to give you an idea of what to expect. Actual savings will vary based on a variety of factors, including actual weather conditions and how fast Xcel s rates increase each year. 3. How much does it cost to sign up? There are no up-front costs or annual fees. You simply make monthly payments for the energy produced by your Sunscription. 4. How long does the Sunscription Agreement last? The Agreement lasts for 25 years. Your Sunscription is portable and transferable your savings move with you as long as you are eligible. See below for additional details on transferring your subscription. 5. What happens if a year is very cloudy or energy production is low? You only pay for the energy that is actually produced. This means that if production is low, you may not save as much money as expected, but you are not harmed financially. This structure incentivizes us to use quality materials and to properly maintain the solar garden. Keep in mind that not all years will produce the same amount of energy. Some years may produce less energy, and some years may produce more. BILL CREDITS & SUNSCRIPTION PAYMENTS 6. How much Bill Credit will I receive? Xcel will apply Bill Credits directly to your electricity bill. The credit amount will be determined by how much energy your Sunscription produces that month and the credit rate for that year. The credit rate starts at $0.1531 per kilowatt hour (kwh) in the first year. Each year that Xcel increases its rates, the credit rate will increase about the same amount. Actual Bill Credits will vary based on actual energy production and how fast Xcel s rates increase each year. 7. How much will I pay? Our pricing is set to provide you with real value. Your Sunscription Payments are based on three things: Price: the dollar amount you pay US Solar per unit of energy ($/kwh) Price Escalator: how much the price will increase each year Energy Production: amount of electricity (kwh) your Sunscription produces You will receive specific pricing information when we offer you the Sunscription Agreement. Your price and price escalator is locked in when you sign the Agreement. This means there s no surprises, your pricing is predictable from day one. 8. How will my electricity billing change? Now you will have two bills instead of one. You will receive your usual Xcel electricity bill, but it will be reduced based on your Bill Credits for that month. (In the first year, your Bill Credit amount will typically cover most of your bill. As time passes, the panels will produce slightly less energy, so your Bill Credits may no longer cover your whole bill.) You will also receive a separate bill from US Solar for your Sunscription Payment. We have provided a visual example of this on the fourth page of this Overview. 9. Will my credit and payment amounts be the same each month? Your Bill Credit amount and Sunscription Payment will vary each month. In Minnesota, solar panels produce more energy in the summer months and less energy in the winter months. You can expect higher credits and payments in the summer, as these amounts reflect the amount of energy produced. If there is excess credit on your bill, the credit will roll over to cover your charges on the next month s bill. If any excess credits are more than 12 months old, once per year Xcel will zero out your account and pay you the excess amount directly (usually in March).
SUNSCRIPTION FAQs TRANSFER & TERMINATION 10. Can I transfer my Sunscription to someone else? Yes, you can transfer your Sunscription to another eligible person. There is no Transfer Fee. 11. What happens if I move? You can bring your Sunscription with you to your new residence. Just be sure to notify us in advance. There is no fee to relocate your Sunscription to a new address. 12. What happens if I move and am no longer eligible? You can either transfer or terminate your Sunscription Agreement. We recommend that you transfer your Sunscription to another eligible person because the fee is smaller. The full Cancellation Amount for subscribers that are no longer eligible is $200. In the event of death, the fee will be waived. 13. Can I end my Sunscription Agreement early if I m still eligible? Sunscription Agreements are intentionally structured to be long-term commitments, providing the greatest savings for subscribers. If you are still eligible but no longer wish to participate, we recommend you transfer your Sunscription to another eligible person. Otherwise, the fee is equal to your remaining Sunscription Payments or will be reduced to no less than $500 if the US Solar team finds a replacement subscriber for you. REQUIRED INFORMATION 14. What does US Solar need from me? To confirm your eligibility and set up your Sunscription, you need to: provide your contact and Xcel account information, sign the 25-year Sunscription Agreement and Xcel Consent Form, perform a soft credit check, and set up your ACH or Credit/Debit automatic payment information within our secure platform. 15. What information is available from US Solar? Along with your Agreement, we provide your Xcel Consent Form and our Solar Garden contract with Xcel. After the Solar Garden is constructed, we will provide copies of the panel warranty, certificate of insurance, and maintenance plan. You ll also be able to view your payment history and monitor your Sunscription s solar production at any time. MISCELLANEOUS 16. Why is the Price Escalator important? The lower the Price Escalator, the slower your price will increase - and the more secure and predictable your savings will be. On average, Xcel s rates have increased 3.5% each year between 2000 and 2014. In recent years, the increases have been even higher. Our Price Escalator is set significantly lower than Xcel s historical average. 17. When do I start seeing Benefits? You will not make any Sunscription Payments until you start seeing Bill Credits on your electric bill. We expect to have your Solar Garden online within a year of signing your Agreement, but it could take up to 24 months. 18. Who is eligible for a Sunscription with US Solar? If you are an Xcel customer and have a FICO of 680 or higher, you are eligible for a Sunscription. To participate in a specific Solar Garden, you must be located in the same, or an adjacent, county. Go to our Sign-Up page to see what counties have projects available. 19. Will you share my personal information? Your privacy and security is important to us. We will not sell or rent your contact information. We do not store any data necessary to check your credit; you will submit this data directly to the credit organization. We do not store any banking information; your financial data will be submitted directly to the financial transaction organization. 20. Do I get to pick which Solar Garden my Sunscription is at? No, we will select an eligible Solar Garden for you and assign your Sunscription to it. This will not affect your pricing. 21. Do I own Renewable Energy Credits from the Solar Garden? No, Xcel will own all Renewable Energy Credits (RECs) associated with your Sunscription s energy production. This is part of the reason you receive a Bill Credit. Don t worry though your Sunscription is still producing clean, renewable energy! Additional Questions? Call or email the US Solar Team 612.294.6892 I community@us-solar.com
SUNSCRIPTION GLOSSARY APPLICABLE RETAIL RATE The rate that Xcel charges customers for electricity. In this case, the rate used for residential customers. BILL CREDIT A dollar amount applied to a subscriber s Xcel electric bill as compensation for their Sunscription s energy production. (Rate x monthly kwh) BILL CREDIT RATE A dollar amount per kwh used to determine bill credits. In this case, the Enhanced Applicable Retail Rate is used to compensate subscribers. COMMUNITY SOLAR A program that makes solar more accessible, allowing for multiple people to participate in one large project. Also called Shared Solar. CONSENT FORM The contract between Xcel and a subscriber, detailing the subscriber s agreement to participate in a Solar Garden. DASHBOARD The online platform where subscribers can view important information related to their Sunscription. DELEGATE A user with view-only access to a subscriber s Xcel electrical history. This is the way a subscriber shares their electrical history with US Solar. DISCLOSURE CHECKLIST A roadmap for the subscriber, outlining where in the Sunscription Agreement important information can be found. DOCUSIGN An online application that provides a secure platform to electronically sign the Sunscription documents. ELIGIBILITY US Solar and Xcel have certain requirements that must be met in order to participate in a Solar Garden. FOSSIL FUELS A general term for the buried remains of ancient animals and plants that can be burned to generate energy; such as crude oil, coal, or natural gas. KWH (KILOWATT HOURS) A standard unit to measure how much electricity is generated or consumed. PRICE ESCALATOR The increase in the price, or Sunscription Rate, each year. REC (RENEWABLE ENERGY CERTIFICATE) The verification that electricity was generated by solar. Xcel compensates you for RECs associated with your Sunscription to prove that they are meeting their renewable energy goals. RESIDENTIAL SUBSCRIBER A Minnesotan homeowner or renter that subscribes, or participates, in a Solar Garden. SAVINGS The expected amount of money saved by an average Minnesota resident over 25 years, when subscribed to a Solar Garden. This amount is only an estimate. Savings = Bill Credits Sunscription Payments SOLAR GARDEN A large-scale solar project that allows for multiple subscribers, or customers, to enjoy the benefits of solar. SOLAR PRODUCTION The amount of energy the Solar Garden generates. SOLAR REWARDS*COMMUNITY PROGRAM Xcel s community solar program. SUBSCRIBE To join or participate in a Solar Garden. An alternative to owning a solar project or putting solar on your own property. SUNSCRIPTION A portion of the Solar Garden assigned to a subscriber. All the subscriber s Bill Credits and Subscriber Payments will result from the energy produced by their Sunscription. SUNSCRIPTION AGREEMENT The 25-year contract between US Solar and a subscriber, detailing the subscriber s participation in a Solar Garden. SUNSCRIPTION PAYMENT The amount of money a subscriber pays each month to US Solar for their participation in a Solar Garden. (Rate x monthly kwh) US SOLAR A local solar developer, with headquarters in Minneapolis. We arrange the design, financing, construction, and operation of Solar Gardens. XCEL ENERGY The MN utility that provides electricity and bill credits to a subscriber.
YOU RE ON YOUR WAY TO A BRIGHTER TOMORROW! SIGN UP TODAY US-SOLAR.COM