TheSolarEndowment:ASolarDeploymentRoadmapforUSCollegesandUniversities
JaneCowan,MarketResearchCoordinatorAdamMehr,CertificateProgramCoordinator
MidwestRenewableEnergyAssociation
MREAOverview
• REEducationandDemonstration• 3000Midwestmembers• 27th AnnualEnergyFair• NetZeroCampus• MidwestGrowSolarPartnership• TheSolarEndowment• AccreditedCertificateTraining
OurStrategy
1. CampusDeploymentTeams2. SolarTechnicalAssistanceTeam(STAT)3. AppliedCourseinCampusPVDevelopment4. PVDesignandSalesCertificateandInternship5. PVDevelopmentRoadmaps6. SolarUniversityNetwork(SUN)Delegations
TheoryofChange
1. Issuevisibility=learningmoments
2. Workinginvestmentmodelsexist
3. Valuableaspartofadiversifiedportfolio
4. Donorandalumnisupport
Origination,Development&Financing
Development FinancingOperations&Maintenance
(O&M)
Engineering,Procurement&Construction
(EPC)
Origination
SolarProjectDevelopmentSteps
Where Our Efforts Will Focus
OurFocus
SiteSelection EconomicsAnalysis
Permitting&InterconnectionQualification
FeasibilityLevelLayout/
Design
UtilitySolarProject&BuildingEnergyAnalysis
ProjectOriginationSteps
Origination
Origination
Local,StateandFederal
Permitting
Interconnectionapplication,studyprocess
andagreements
Stakeholdereducationandbuy-intotheProject/s
LandDevelopment
Studies(geotech,
environmental,survey,etc.)
ProjectDevelopmentSteps
Development
ConfirmationofFinancingSources/PathtoSuccess
Development
FinancialStructuringAnalysis/Validation
ProcuringSolarFinancingIndustry
UtilizingAllDevelopmentStageDocumentation
FinancingCompany
Negotiations
ValidationofOrigination
AssumptionsforFinancialModeling
ProjectFinanceSteps
Financing
Financing
1. StudentEngagementStrategy2. StakeholderMapping3. Legal,Regulatory,andApprovals4. CampusSitePrioritization,Assessment,and
FinancialModeling5. ContractorSolicitation/Selection6. FinancialConsiderationsandInvestment
Opportunities
PVDevelopmentRoadmaps
1. Siteassessmenttechmentornetwork
2. Legalandregulatoryanalysis3. Campusstakeholder
engagement4. Projectfinancialanalysisand
design5. PVinvestmentvalue/risk
SolarTechnicalAssistanceTeam(STAT)
1. WorkingRoadmapsforEachPilotUniversity2. NewCampusRoadmapDevelopment3. CampusPVDevelopmentCoursefreeandopento
publicAugust2016www.solarendowment.org/courses
4. PVDSCertificateandInternships
Progress
CampusDeploymentTeams
• On-siteteamsmadeupofdifferentcampusstakeholders• Pilotcampuses– ledbygraduatestudent&studentteams• Skills:
• ProjectManagement• Engineering• SiteLayout&FeasibilityDesign• Interconnection• Permitting&LandDevelopment• EnergyAnalysis• BusinessandFinance• Legal
• Studentincentives:• MREAcourses,certificates,andpotentialinternships• Professionaldevelopmentandexperience
AppliedCourseinCampusPV
• Guidesuniversitiesthroughroadmapping process• Hostsworkplans,templates,guides,andwebinarsdesignedaroundeighttopicareas
• Stillpostingresources;allpilotandnewuniversitycampuseshaveaccess
• ComingSoon!!!
Updates:www.solarendowment.org/courses
• BasicPhotovoltaics– PV101
• PVSiteAssessorTraining– PV201
• PVSystemDesign– PV202
• PVSalesandFinance– PV203
OtherMREATrainingCourses
www.solarendowment.org
Certificates
CredentialingPathways
Internships
SiteAssessorInternshipü Pre-screeningü Leadgenerationü Siteassessment
DesignandSalesInternshipü Siteassessmentü Engineering/designü Proposaldevelopment
• TwoCampuses• TwinCitiesCampus:46students• DuluthCampus:6student
• Graduatestudentlead• Fiveteams
1. SiteAssessment– TwinCities2. SiteAssessment– Duluth3. LiDAR Group4. FinanceGroup5. CampusOutreachGroup
• RenewableEnergyPathways– GrandChallengeCurriculum
CampusTeams:UniversityofMinnesota
• Goal:Knowyouraudiences,getaheadoftheprocess,gathersupport,andpublicize
• Identifyandanalyzeperspectivesofkeyoffices,positions,committees,andindividuals
• Learnwhatyoudon’tknowyoudon’tknow• Keystakeholdergroups(notalllisted):
StakeholderMapping
• EnergyOffice• MasterPlanners• InvestmentOffice• SustainabilityOffice• FacultyandStudent
Organizations• LocalUtility
• CampusLandOwners• UniversityDepartments
– academicprogramming
• UtilityRegulatoryCommission
• CampusLeaders
FullPurdueandISURoadmapsatwww.solarendowment.org/resources
StakeholderMapping:Purdue
• Goal:Identifyrules,regulations,procedures,andotherriskfactorsthatinfluencedesign,siting,andfinancingofaPVprojectoncampusesandassociationproperties
• Includes(notalllisted):• Utilityinterconnectionrequirementsandfees• Permittingandinspectionrequirementsandfees• Planning/zoningrestrictions• Statepoliciesandincentives• Utilitytariffsandincentives• Campusrulesandprocedures• Equipmentwarrantees,O&M,andsafetyrequirements• Liens,restrictions,andagreementsre:propertyuse
ApprovalsandLegal/RegulatoryConsiderations
• Goal:IdentifyanddescribeprioritysitesforPVdeploymentoncampusandassociatedproperties
• Includes(notalllisted):• Generalsitedescriptionsandmaps• Currentsiteuseanddevelopmentplans• Descriptionofelectricalinfrastructurewithdetailsonpotentialinterconnectionsites
• Analysisofelectricityratesassociatedwithinterconnection• Systemsizeestimate• Estimationofsystemproduction• Costestimates
OnCampusPVSitePrioritization
TableOfContents
ExecutiveSummary………………………………………………..ClientContactInformation……………………………………..ClientProfile…………………………………………………………..ClientEnergyProfile……………………………………………….UtilityProfile…………………………………………………………..SiteProfile………………………………………………………………AHJProfile……………………………………………………………..AvailableIncentives/Grants/Taxcredits………………SiteVisitDataCollectionForms………………………………
PVArray– Option#1………………………………………………PVArray– Option#2………………………………………………PVProjectSummaryandRecommendations………….
SiteAssessmentTemplateandGuidance
SitePrioritization:Purdue
• Goal:Definefinancialstructuresandmodelperformanceofproposedprojects
• Tools:• MREAPVFinanceTool• NRELSystemAdvisorModel(sam.nrel.gov)• NRELRenewableEnergyPlanning&Optimization(www.nrel.gov/tech_deployment/tools_universities.html)
• KeyMetrics(notalllisted):• Electricitycostwithand
withoutREsystem• Electricitysavings• Netpresentvalue• Paybackperiod
• Levelized costofenergy• Internalrateofreturn• Utilityinflationrates• Installationcosts• O&Mcosts
SystemFinancialAnalysis
LeaseLand/RoofOnly
BuySolarElectricityOnly
SolarasanInvestmentforUniversityEndowment
Fund
EnergyGenerationAssetforOperations
BuySolarRECsontheOpenMarketOnly
Easiest(&LowestValue)toMostComplex(&HighestValue)
Third party owned-solar project financing structures
First party owned-solar project financing
structures
*First big decision is ownership decision and what level of complexity and risk the culture will allow for.
ProjectFinancialDesign:OnandOffCampus
1. On-Site:DirectOwnership• Loadreduction• UtilityPowerPurchaseAgreement(PPA)
2. On-Site:Partnership• Third-PartyPPA• DonorLease• LandLease
3. Off-Site• DirectPPA(De-regulated)• VirtualPPA/ ContractforDifferences(Regulated)• SharedSolarSubscription• ProjectEquityInvestor
UniversitySolarProcurementModels
1. Complexityofcampusenergypurchasesandcontracts
2. Densityofuniversitygovernanceanddecision-making:treasurerandcomptroller vs operationsvsinvestments
3. TaxEquityPartneraddscomplexity/riskforon-campusinstallations
4. Directequityinvestmentsbyendowmenthaveyettooccur(toourknowledge)
ChallengestoGreaterAdoption
• Goal:Identifyandpursuefinancialstructuresthatmaximizebenefitsandmeetuniversityrequirements
• Options• Landlease:Purdue,UofM,andVCU• ThirdpartyPPA:MREA,ISU,MS&T,UofM• DonorPPA:LutherCollege• Sharedsolar:UofM,MREA• UtilityPartnerships:MS&T,Purdue,VCU• Large-ScalePPA:ISU• VirtualPPA:All• EquityInvestment:TBD
ProjectFinancialDesign:OnandOffCampus
Goal:Developmodelandrecommendationsforcompetitiveprocurementthatmeetuniversityrequirementsandsatisfycontractorneeds
• Engagestakeholderstodefineobjectivesandoutcomes• DevelopmodelRFI,RFQ,RFP• Definecriteriaforreviewandselection• GuidesandTools
• https://www.epa.gov/greenpower/gpp-webinar-solar-procurement-templates-and-tools-higher-education
UniversitySolarProcurement
MidwestRenewableEnergyAssociation
www.midwestrenew.org
JaneCowanMarketResearchCoordinator,MREA
31
Thanks!
AdamMehrCertificateProgramCoordinator,MREA
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