Solar Power Michael Arnold, LEED AP ACI-NA Environmental Committee Meetings June 27, 2011
Some Reasons for Considering Solar Financial Benefit Airport Uses Energy Airport Sells Energy and/or credits Energy Price Stability Goals of the Organization Sustainability Goals Greenhouse Gas/Carbon Reduction Goals Community Good Will
US Energy Profile and Solar
Feasibility Considerations Sun Exposure Cost of Electricity Type of System Compatibility with Airport Operations Environmental Factors Incentives and Rebates Regulatory Provisions (RPS, PPA, etc.) Other factors
Roof Mounted PV Example
Parking Cover Examples
Ground Mounted PV Examples
Incentives and Rebates Grants Rebates Tax Incentives Loan Programs Performance Based Incentives
Regulatory Provisions Renewable Portfolio Standards 3 rd Party Power Purchase Agreements Net Metering Feed in Tariffs
Renewable Portfolio Standards (RPS) Require utilities to achieve specific targets (% of renewable) by specific dates Penalties for non-compliance Tend to accelerate incentives and implementation of renewable energy projects Range between 10 percent and 40 percent for states that have targets Measurement via Renewable Energy Credits (REC)
WA: 15% x 2020* Renewable Portfolio Standards Policies OR: 25% x 2025 (large utilities)* 5% - 10% x 2025 (smaller utilities) MT: 15% x 2015 www.dsireusa.org / March 2011 ND: 10% x 2015 MN: 25% x 2025 (Xcel: 30% x 2020) MI: 10% + 1,100 MW x 2015* VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 SD: 10% x 2015 WI: Varies by utility; 10% x 2015 statewide NY: 29% x 2015 NV: 25% x 2025* IA: 105 MW OH: 25% x 2025 CO: 30% by 2020 (IOUs) CA: 33% x 2020 10% by 2020 (co-ops & large munis)* IL: 25% x 2025 WV: 25% x 2025* UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* MO: 15% x 2021 AZ: 15% x 2025 OK: 15% x 2015 NC: 12.5% x 2021 (IOUs) NM: 20% x 2020 (IOUs) 10% x 2018 (co-ops & munis) 10% x 2020 (co-ops) DC ME: 30% x 2000 New RE: 10% x 2017 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereafter) RI: 16% x 2020 CT: 23% x 2020 PA: ~18% x 2021 NJ: 22.5% x 2021 MD: 20% x 2022 DE: 25% x 2026* DC: 20% x 2020 TX: 5,880 MW x 2015 PR: 20% x 2035 HI: 40% x 2030 Renewable portfolio standard Renewable portfolio goal Solar water heating eligible Minimum solar or customer-sited requirement * Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources 29 states + DC and PR have an RPS (7 states have goals)
Renewable Energy Credits or Certificates (RECs) Used to demonstrate compliance with RPS Credit for renewable energy rests with certificate holder Actively traded (in most cases) Reduces difference in production cost between renewable and non-renewable energy 1 REC = 1 MWh Will decrease in value as supply increases
3 rd Party Purchase Agreement (PPA) Agreement with third party entity Designs and constructs solar infrastructure Owns, operates and maintains Receives tax and other incentives Sells airport power at stable/reduced cost Provides opportunity for numerous different financial scenarios Minimizes up front costs
3 rd -Party Solar PV Power Purchase Agreements (PPAs) www.dsireusa.org / January 2011 UT: limited to certain sectors AZ: limited to certain sectors Authorized by state or otherwise currently in use At least 19 states + PR authorize or allow 3 rd -party solar PV PPAs Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown Puerto Rico Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA.
3 rd Party PPA Restricted in some states such as Florida Anyone can install solar Only a utility can sell power - FS 366.82 (1)(a) Various potential workarounds being explored Limitations place utility in driver s seat Photo source: http://fgcusolar.com/the_project_installation
Net Metering Determines the net flow of power into/out of grid Offsets all or part of energy need Customers only pay for excess energy used Additional energy provided to grid may be carried as credits Larger energy users may never send energy to grid
WA: 100 OR: 25/2,000* CA: 1,000* AK: 25* NV: 1,000* MT: 50* UT: 25/2,000* AZ: no limit* WY: 25* CO: no limit co-ops & munis: 10/25 NM: 80,000* Net Metering www.dsireusa.org / March 2011 ND: 100* NE: 25 KS: 25/200* OK: 100* MN: 40 IA: 500* WI: 20* MO: 100 IL: 40* AR: 25/300 LA: 25/300 MI: 150* OH: no limit* IN: 10* KY: 30* HI: 100 KIUC: 50 State policy PR: 25/1,000 Voluntary utility program(s) only * State policy applies to certain utility types only (e.g., investor-owned utilities) GA: 10/100 VA: 20/500* NC: 1,000* FL: 2,000 ME: 660 co-ops & munis: 100 VT: 20/250/2,200 NH: 100 MA: 60/1,000/2,000/10,000* RI: 1,650/2,250/3,500* CT: 2,000* NY: 10/25/500/1,000/2,000* PA: 50/3,000/5,000* NJ: no limit* DE: 25/100/2,000 co-ops & munis: 25/100/500 MD: 2,000 WV: 25/50/500/2,000 DC: 1,000 43 states + DC & PR have adopted a net metering policy Note: Numbers indicate individual system capacity limit in kw. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes. DC
Feed in Tariff Sell power at a premium directly to utility Performance based May have a cap Income based on performance of equipment Return based on total cost
Key Reference Sites National Renewable Energy Laboratory (NREL) http://www.nrel.gov/ Database of State Initiatives for Renewables & Efficiency (DSIRE Department of Energy) http://www.dsireusa.org/ Technical Guidance for Evaluating Selected Solar Technologies on Airports http://www.faa.gov/airports/environmental/policy_guidance/media/airport_solar_g uide_print.pdf
Thank You! Michael Arnold, LEED AP Vice President 1715 N. Westshore Boulevard Suite 780 Tampa, FL 33607 (407) 312-1294