Solar Photovoltaic · Austin Energy - Residential Solar Loan Program TX Financial Incentive Loan...
Transcript of Solar Photovoltaic · Austin Energy - Residential Solar Loan Program TX Financial Incentive Loan...
Agenda
1
Solar Photovoltaic1. System Implementation and Requirements
March 2015
www.jacobs.com worldwideNorth Central Texas
Council of Governments
• Welcome / Presenter
Introductions / COG –
Jacobs
• Goal of Presentation -
“Overview of Solar PV
system Financial Incentives
and Comparison of Financial
Approaches”
• Audience Polls
Introductions
Solar PV Financial Evaluation
• Presentation Sections:
– Introduction
– Current and Historical PV System Costs
– Rebates and Incentives
– PPAs, Leases, Direct Ownership
– Open Discussion/Questions
Solar PV Financial Evaluation
• Current and Historical PV System Costs per Watt
– PV System cost per watt for Residential and Commercial
• System size and complexity impact cost
– Small system = Higher cost/watt
– Utility scale system (10+ MW) = lowest cost/watt
– Complex system = Higher cost/watt
– Carport Canopy systems = highest cost (added structure and footings)
• Utility energy rates & solar growth
– High Utility rates (CA) results in fast PV growth
– Low Utility rates (FL) results in sluggish PV growth
• PV Cost Trends over time…
– As PV reaches par w/ Utility rates (incl. incentives), PV growth increases
Solar PV Financial Evaluation
• Current and Historical PV System Costs per Watt
Solar PV Financial Evaluation
• Rebates and
Incentives
– Federal Tax Credits
– State Credits
– Oncor Rebates
– Accelerated
Depreciation
Solar PV Financial Evaluation
• PV Rebates & Incentives:
– State and Utility Solar Programs available
– 30% Federal Tax Credit
– Accelerated Depreciation
– REC’s ($.02/kWh)
Solar PV Rebates and Incentives
Name
State/
Territ
ory
CategoryPolicy/Incentive
Type
Qualified Energy Conservation Bonds (QECBs) USFinancial
IncentiveLoan Program
Denton Municipal Electric - GreenSense Energy
Efficiency Rebate ProgramTX
Financial
IncentiveRebate Program
Business Energy Investment Tax Credit (ITC) USFinancial
Incentive
Corporate Tax
Credit
Farmers Electric Cooperative -
Residential/Agricultural Energy Efficiency Rebate
Program
TXFinancial
IncentiveRebate Program
Tribal Energy Program Grant USFinancial
IncentiveGrant Program
Residential Renewable Energy Tax Credit USFinancial
IncentivePersonal Tax Credit
Residential Energy Conservation Subsidy Exclusion
(Personal)US
Financial
Incentive
Personal Tax
Exemption
Renewable Energy Systems Property Tax Exemption TXFinancial
Incentive
Property Tax
Incentive
Modified Accelerated Cost-Recovery System
(MACRS)US
Financial
Incentive
Corporate
Depreciation
USDA - Rural Energy for America Program (REAP)
GrantsUS
Financial
IncentiveGrant Program
USDA - Rural Energy for America Program (REAP)
Loan GuaranteesUS
Financial
IncentiveLoan Program
FHA PowerSaver Loan Program USFinancial
IncentiveLoan Program
USDA - High Energy Cost Grant Program USFinancial
IncentiveGrant Program
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Solar PV Rebates and Incentives
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Name
State/
Territ
ory
CategoryPolicy/Incentive
Type
U.S. Department of Energy - Loan Guarantee
ProgramUS
Financial
IncentiveLoan Program
El Paso Electric Company - Solar PV Pilot Program TXFinancial
IncentiveRebate Program
City of Plano - Smart Energy Loan Program TXFinancial
IncentiveLoan Program
City of Sunset Valley - PV Rebate Program TXFinancial
IncentiveRebate Program
City of Houston - Property Tax Abatement for Green
Commercial BuildingsTX
Financial
Incentive
Property Tax
Incentive
Residential Energy Conservation Subsidy Exclusion
(Corporate)US
Financial
Incentive
Corporate Tax
Exemption
Energy-Efficient Mortgages USFinancial
IncentiveLoan Program
Oncor Electric Delivery - Commercial and Industrial
Rebate ProgramTX
Financial
IncentiveRebate Program
CoServ - Solar Energy Rebate TXFinancial
IncentiveRebate Program
Oncor Electric Delivery - Solar Photovoltaic
Standard Offer ProgramTX
Financial
IncentiveRebate Program
City of San Marcos - Distributed Generation Rebate
ProgramTX
Financial
IncentiveRebate Program
Xcel Energy - Residential and Hard-to-Reach
Standard Offer ProgramTX
Financial
IncentiveRebate Program
Austin Energy - Residential Solar Loan Program TXFinancial
IncentiveLoan Program
Solar PV Rebates and Incentives
TexasIncentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Name
State
/
Territ
ory
CategoryPolicy/Incentive
Type
Denton Municipal Electric - GreenSense Solar
Rebate ProgramTX
Financial
IncentiveRebate Program
CPS Energy - Solar PV Rebate Program TXFinancial
IncentiveRebate Program
Guadalupe Valley Electric Cooperative -
Renewable Energy RebatesTX
Financial
IncentiveRebate Program
LoanSTAR Revolving Loan Program TXFinancial
IncentiveLoan Program
Solar and Wind Energy Device Franchise Tax
DeductionTX
Financial
Incentive
Corporate Tax
Deduction
Solar and Wind Energy Business Franchise Tax
ExemptionTX
Financial
Incentive
Industry
Recruitment/Suppo
rt
Austin Energy - Residential Solar PV Rebate
ProgramTX
Financial
IncentiveRebate Program
AEP Texas Central Company - SMART Source
Solar PV Rebate ProgramTX
Financial
IncentiveRebate Program
AEP Texas North Company - SMART Source Solar
PV Rebate ProgramTX
Financial
IncentiveRebate Program
Austin Energy - Commercial Solar PV Incentive
ProgramTX
Financial
Incentive
Performance-
Based Incentive
Clean Renewable Energy Bonds (CREBs) USFinancial
IncentiveLoan Program
Solar PV Rebates and Incentives
• PV Financing – Owner Purchased:
– Requires capital to finance
– Owner responsible for O&M
– Owner monetizes rebates/incentives
– Generally most advantageous to private (taxable)
entities
– Not a common approach for Government entities due to
lack of taxable benefits (unless PV grants are available)
Solar PV Rebates and Incentives
• PV Financing – Power Purchase Agreement
(PPA):
– Agreement w/ LLC to own, operate, finance, install and
maintain PV system
– Facility owner agrees to purchase all power generated
at a fixed or escalating rate for a fixed period (typ 20
yrs)
– Requires no capital investment
– Generally most advantageous to Government (non-
taxable) entities
– PPA is typically for PV systems 250 kW and larger
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PPA Comparison:
– Pros:
• No capital is required by the Client
• Client can focus on its mission instead of energy production
• No system maintenance by Client
• Client only pays for actual power produced
• Cost of power is generally slightly lower than utility rate
• Rebates and Incentives are monetized into the PPA
– Cons:
• Overall cost of energy savings are minimal
• Limited control of the PV system on site
• Monthly electric bills to PPA provider and utility
Solar PV Rebates and Incentives
• PV Financing – Lease:
– Requires down payment
– Typical 15 year term
– System owner (3rd party) monetizes rebates/incentives
– Lease payment is fixed rate not tied to the power
generated
– Common for government entities where PPA is not
allowed
– System owner is responsible for O&M
Solar PV Rebates and Incentives
• PV Financing:
– 7 year buyout of PPA or “Flip”
– Operations budget versus Capitol Improvement budget
www.jacobs.com | worldwide31 March 2015 Jacobs© Copyright
Questions / Discussion
DFW Airport PV Economics
March 31, 2015
Jerry R. Dennis, CEM, CEP
Energy Manager
NCTCOG Solar Energy System Training – March 31, 2015
Agenda
Introduction
ADE Office Building
ADE PV Array Installation
2012 Economics With and Without Subsidies
Today’s Economics
Conclusion
Airport Development & Engineering (ADE)
NCTCOG Solar Energy System Training – March 31, 2015
Introductions
Jerry R. Dennis, CEM, CEP
Energy Manager
Dallas / Fort Worth International Airport
2000 to Present
TXU Energy (regulated electric utility)
1980 to 2000
NCTCOG Solar Energy System Training – March 31, 2015
ADE Office Building
Constructed in 2000
Size – 41,344 sq.ft.
Use – Office Building for
Airport Staff
Energy Usage Before PV
Install
244 kW Peak Demand
1,128,930 kWh Annually
NCTCOG Solar Energy System Training – March 31, 2015
ADE PV Array Installation
Install Date
January 2012
737 PV Panels
Two Inverters
100 kW
50 kW
Total Production Capacity
186 kW (DC)
150 kW (AC)
Installation Cost
$1,134,226
NCTCOG Solar Energy System Training – March 31, 2015
2012 PV Economics (With and Without Subsidies)
Installation Cost
$1,134,226
ARRA Grant (funded through SECO)
$922,322
Oncor Incentive
$201,712
DFW Airport Contribution
$10,191
PV Array Savings
Produces, On Average, 25%
of Building’s Energy Needs
270,000 kWh Annually
Average Annual Savings
$18,000
Simple Payback With Subsidies - $10,191 / $18,000 = 7 months
Simple Payback Without Subsidies - $1,134,226 / $18,000 = 63
years
NCTCOG Solar Energy System Training – March 31, 2015
Today’s Economic (Without Subsidies)
Installation Cost
Based on $3 per Watt
150 kW x $3 = $450,000
PV Array Savings
Produces, On Average, 25%
of Building’s Energy Needs
270,000 kWh
Average Annual Savings
$18,000
Simple Payback Without Subsidies - $450,000 / $18,000 = 25
years
NCTCOG Solar Energy System Training – March 31, 2015
March 30, 2015 @ 10:28 am
March Savings: 17,123 kWh x $0.067 = $1,147.24
Lifetime Savings: 864,287 x $0.067 = $57,907.23 (~3 years)
NCTCOG Solar Energy System Training – March 31, 2015
Environmental Benefits
DFW Airport’s Solar PV Array Website:
http://texas.kiosk-view.com/dfw-airport
NCTCOG Solar Energy System Training – March 31, 2015
Conclusion
Solar PV is a perfect fit for the Texas environment.
When we are most in need of additional generation (hot summer days),
Solar PV is at its maximum output.
The technology is reliable and continues to improve.
The initial cost of the technology is dropping rapidly.
Utilities, installers, and code inspectors are becoming more familiar
with the technology.
Without significant subsidies, the technology is not competitive with
grid power prices.