Shoreview: Community Solar Gardens 101

Community Solar Gardens 101

Shoreview

Agenda1. Energy Efficiency – best bang for your buck

2. Context for Clean Energy in Minnesota

3. Renewable Energy Options

4. Questions

5. Chat with resource experts and solar developers

READY FOR SOLAR? WHY ENERGY EFFICIENCY MATTERS

Mike Rehm

Neighborhood Energy Connection | Energy Advisor

651-328-6224 | [email protected]

Energy Efficiency Solves Problems

• Lower monthly energy consumption

• Lower monthly energy costs

• Solve comfort problems like drafts and cold spots

• Prevent issues like ice dams

• Address uncontrolled moisture and ventilation problems

…all through efficiency improvement projects

(and earn rebates and other incentives and use competitive financing, if needed)

Energy Efficiency Means What Again?

Using less energy to provide the same service

Energy efficient homes have:

• Fully insulated attic & walls

• Efficient lighting and appliances

• Efficient heating system

• Efficient water heater

Energy Efficiency: The Smart Step Toward Solar

The cheapest energy is the energy that you do not use.

increases the % of your home that is powered by solar energy.

Reducing the amount of energy you consume,

Energy Efficiency Lowers Energy Bills

MN

Dep

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of

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gy R

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55% Heating and Air Conditioning

15% Lights & Electronics

15% Appliances

15% Water Heating

The average Roseville household spends

$1,852/year on gas & electric utilities.

Energy Efficiency, with The NEC Every Step of the Way

SOLAR ENERGY

WINDOWS

APPLIANCES

WATER HEATING

HEATING & COOLING

INSULATING & VENTILATION

AIR SEALING

LIGHTING

LOW COST/NO COST

BEHAVIOR

Have an Energy Auditor analyze your home

Your home is unique!

HOME ENERGY AUDIT

Infrared Camera Scan Blower Door Test CO2 Test & More

Get those low cost measures installed by the pros

Sign up today for either a $40 or $20 visit.

HOME ENERGY SQUAD: A quick, hands-on service that installs key energy-saving measures in your home.

After the presentation, stop by the NEC table

• Ask us questions

• Figure out your best next step

• Learn about potential energy efficiency rebates

Sign up for an Xcel Energy audit:

$100 Infrared Audit or a $60 Blower Door Audit

Combine it with a $20 Home Squad Visit

Community Solar Gardens 101

Trevor DrakeMetro Clean Energy Resource Team (Metro CERT)Great Plains Institute

Statewide Partnership & Collaboration

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

Agenda1. Energy Efficiency – best bang for your buck

2. Context for Clean Energy in Minnesota

3. Renewable Energy Options

4. Questions

5. Chat with resource experts and solar developers

Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/

Minnesota Key Energy Policies

1. Conservation Improvement Program (electric and gas):

o Requires utilities to spend a certain amount of annual revenue on efficiency investments (Gas .5%, Electric 1.5%, Xcel 2%)

2. Net Metering (electric): Customers must be compensated for electricity they generate and feed into the local utility’s grid (1,000 kW limit for investor-owned utilities, 40 kW limit for coops and muni’s)

3. Renewable Energy Standards (electric):

o Xcel Energy – generate/procure 30% by 2020, plus 1.5% solar

o Investor-owned utilities – generate/procure 25% by 2025, plus 1.5% solar

o Cooperative and municipal utilities – generate/procure 25% by 2025

Consumer Solar Technologies

1. Electric (PV)

2. Thermal: Air Heat

3. Thermal: Hot Water

Renewable Energy Credits/Certificates (RECs)

A renewable energy certificate (REC) … represents the property rights to the environmental, social and other non-power attributes of renewable electricity generation.

RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Source: https://www.epa.gov/greenpower/renewable-energy-certificates-recs

RECs in brief

1,000 kWh

Trevor Drake

1,123 lbs CO2

Source: Center for Resource Solutions

The Current State of Solar

• Now over 30 GW of solar PV installed in US

• Enough to power over 6 million homes

• Solar represented 29.4% of all new electric generating capacity brought on-line in the U.S. in 2015, more than natural gas!

SEIA Solar Market Insight Report

The Solar PV Future

Is there Enough Sunlight?


Individual Solar

• Need a strong solar resource (incl. property)

• High cost, but opportunity to save money/hedge against electricity price increases long-term

• Incentives and tax credits available

• Most visible renewable energy option

Key Benefits: Independence, Social NormingKey Benefits: Long-term cost savings, independence, social norming

Is My Home Good For Solar?

• Do I have a south facing roof or

location?

• Are there shade issues?

• When do I anticipate re-roofing?

• Is my roof structurally sound?

• Am I going to be in the home for a

while?

• Is my home energy efficient?

• Talk to a solar installer!

The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.

mn.gov/solarapp

mn.gov/solarapp

The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.

mn.gov/solarapp

Other Options: Rooftop Solar

Community Solar Gardens

Point to yours!


Solar Garden Subscriptions

• In Xcel program, subscriptions offered by 3rd-party developers

o Possible to shop for different offers

o You join by signing a “subscription agreement” – a contract written by the developer that explains the details of your subscription

o Developers are NOT regulated

• Term of agreement is normally 25 years

o Exit clauses allow you to end earlier if you move, die, or decide you don’t want to continue (sometimes incur a fee)

• Possible to lower your electricity bill starting on day 1

o Best if your payment is tied to garden production (e.g., you only pay for electricity that is actually produced)

Join others in buying into a larger solar array; get credits on your electricity bill proportional to your subscription

Definition:Centrally-located solar PV systemsthat provide electricity to participating subscribers

Community Solar Gardens

solargardens.mncerts.org

How does it work?

Xcel Energy Program

OPERATOR: primary group running the solar garden

UTILITY: approves garden, tracks production, provides credit.

SUBSCRIBERS: individuals or groups to get solar power

3rd Party Operator develops & runs garden. Maintains relationship w/ subscriber for payment. Utility provides subscriber w/ bill credit.

1. What is your annual electricity usage?

Subscribing to a Solar Garden (Xcel Energy Program)


o 9,600 kWh



o 9,600 kWh

2. How much of your usage do you want to offset with solar?


1. Determine how much electricity you use per year

o 9,600 kWh


o 100%



o 9,600 kWh


o 100%

3. Which company has an offer that meets your goals?


AVAILABLE CSG PROJECTS

cleanenergyprojectbuilder.org

Research Solar Developers…

Visit the CERTs table later to get a flyer with the web

address!

Find a company that you like

• Pricing: What is the pricing structure? Is payment tied to production?

• Transferability or Early Termination: What happens if you move or want to cancel?

• Project Construction and Timing: What stage is the project currently at? When can you expect your first bill credit?

• YOUR Goals and Values: Garden location? Developer business model? Customer service?



o 9,600 kWh


o 100%

3. Which company has an offer that meets your goals?

Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)

Once the garden begins producing electricity…

You will… Key Details

A) Begin making paymentsto the developer for your subscription

• Pay in dollars per unit electricity produced (most contracts)

• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator

Polar Solar Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)






B) Begin receiving credits on your monthly Xcel bill

• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities

Commission to match changing electricity prices

Standard rate (retail cost of electricity: $.12596/kWh

Standard + $.02 incentive (Gardens > 250 kW): $.14596/kWh

Standard + $.03 incentive (Gardens ≤ 250 kW): $.15506/kWh

MOST COMMON






B) Begin receiving credits on your monthly Xcel bill

• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities

Commission to match changing electricity prices

C) Continue to pay your monthly Xcel bill…

• If monthly bill > $0, you pay the difference

• If monthly bill < $0, a credit is carried to the following month

• If annual credits > annual bills, Xcel will write you a check at end of year

Monthly costs/savings(800kWh/month @ 100% subscribed)

MONTH 1Without Solar Garden Subscription

With Solar Garden Subscription

Monthly Xcel Energy Bill($.12596/kWh)

$100.77 $100.77

Bill Credit($.14596/kWh)

N/A -$116.77

Payment to Solar Garden Developer

($.14000/kWh)N/A $112

TOTAL Monthly Cost $100.77 $96

Costs/Savings at specific points in time(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)

Monthly Costs/Savings at Different Points in Time

(Monthly difference between

bill credit and payment to the

developer)

Year 5$ per month

Year 10$ per month

Year 15$ per month

Year 20$ per month

Year 25$ per month

$6.80 $10.36 $15.37 $22.20 $31.31

Cumulative Savings over 25 Years(Cumulative

difference between bill credits and

payments to the developer)

Savings after 5 years



Savings after 20

years


$341 $852 $1,599 $2,662 $4,137

$0.1400

$0.268

$0.146

$0.308

$0.08

$0.13

$0.18

$0.23

$0.28

$0.33

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

$/k

Wh

Pro

du

ced

by

Gar

de

n SUBSCRIPTION RATE

BILL CREDIT RATE (3.5% Annual Increase)

Years Subscribed

Rates over 25 years(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)

Bill Credits Changing (Effective January 1st, 2017)

• “Value of Solar” (VOS) = All benefits - all costs

• 2016 VOS rate was $.0995

Current residential bill credit rate at $.14596

• Applies to garden applications “deemed complete” – early stage of solar garden development

Subscriptions under the old rate will still be available for some time

MNCERTs.org/solargardens


Green Pricing – “Windsource”

• Sign up online with your utility (takes about 5 minutes)

• You pay for renewable energy, but DON’T pay for fossil fuel costs

• Net average cost in Xcel’s program is $.85 per 100 kWh

o Average customer would pay an additional $6.80 per month

• Adds renewable energy BEYOND state mandates

• 1 year initial term, then can cancel at any time

Pay a small premium to offset your usage with up to 100% renewable energy

Solar Garden Green Pricing

Pricing Opportunity to save money Small cost

RenewableEnergy

Contribute to state mandatesAlways beyond state

mandates

Simplicity Complex sign-up process Easy sign-up process

Term 20-25 years 1 year

Amount Any amount up to 120% of usage100 kWh blocks OR 100%

of usage

Key Contact Private Developer Utility Company

Delivery of benefit

Utility bill Utility bill

Which option meets your needs?

Trevor DrakeMetro CERT Co-Director

Great Plains [email protected]

Mike RehmEnergy Advisor

Center for Energy and [email protected]

Questions?

Shoreview: Community Solar Gardens 101

Education

Transcript of Shoreview: Community Solar Gardens 101