Solar Power for our Town

1. An Introductory Proposal for Powering Town-owned Buildings with Photovoltaics (solar energy) Solar Power for our Town

2. Purpose To introduce the concept of using solar energy to supplement the power supply for town buildings The presenter should make it clear that this is an introductory presentation, unless he or others have gone to the extentof assessing municipal buildings for suitability for solar, calculating cost savings and financing options, etc.* The presenter should also stress that the object is to gain sufficient interest and support from town government and votingtownspeople to justify a detailed investigation into the economics and added value of installing solar on town buildings. *If this is the case, he should modify the presentation to include this kind of information. The presenter should make it clear that this is an introductory presentation, unless he or others have gone to the extentof assessing municipal buildings for suitability for solar, calculating cost savings and financing options, etc.* The presenter should also stress that the object is to gain sufficient interest and support from town government and votingtownspeople to justify a detailed investigation into the economics and added value of installing solar on town buildings. *If this is the case, he should modify the presentation to include this kind of information.

3. Overview Photovoltaics What it is Why it�s important What it can do for our town Financial issues Typical savings Different ways of financing system Help from state and federal government Case study: Yarmouth, MA Next steps Why we should take action now This slide gives the audience an outline of what they will see in the presentation; it�s always a good ideato start by �telling them what you�re going to tell them�.This slide gives the audience an outline of what they will see in the presentation; it�s always a good ideato start by �telling them what you�re going to tell them�.

4. What is Solar Photovoltaic Power? solar cells made of semiconducting materials; sunlight liberates electrons from material to produce electricity rooftop, grid-tied or off-grid grid-tied can be 'net metered' payback time a function of upfront cost/avoided utility payments PV effect: Solar cells convert sunlight directly into electricity. They are made of semiconducting materials; when sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. Off-grid: power from panels goes directly into building's system or into batteries for night-time storage. More likely to be found in residential applications. Grid-tied: power connects on Utility's side of the meter, feeds grid. Customer receives credit on electricity bill equivalent to power generated and supplied to the grid (net metering). Avoided utility payments = money no longer paid to the utility, representing the value of the power produced by solar installationPV effect: Solar cells convert sunlight directly into electricity. They are made of semiconducting materials; when sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. Off-grid: power from panels goes directly into building's system or into batteries for night-time storage. More likely to be found in residential applications. Grid-tied: power connects on Utility's side of the meter, feeds grid. Customer receives credit on electricity bill equivalent to power generated and supplied to the grid (net metering). Avoided utility payments = money no longer paid to the utility, representing the value of the power produced by solar installation

5. Where's all the sun? gives monthly average daily total solar radiation (insolation) on a flat plate pointed south and angled up from horizon at angle equal to latitude. UM = kWh/m2/day NM and AZ border w/ Mexico: 6.5 � 7 kWh/m2/day NW Washington state: 3.5 � 4 kWh/m2/day NB: Germany, which has an insolation factor comparable to much of Canada, has more solar installed than any other country. gives monthly average daily total solar radiation (insolation) on a flat plate pointed south and angled up from horizon at angle equal to latitude. UM = kWh/m2/day NM and AZ border w/ Mexico: 6.5 � 7 kWh/m2/day NW Washington state: 3.5 � 4 kWh/m2/day NB: Germany, which has an insolation factor comparable to much of Canada, has more solar installed than any other country.

6. Climate Security: Why Solar is so Important Need to reduce emissions by 80% by 2050 to mitigate worst of climate change effects Phase out coal plants Replace with the optimum mix of non-emitting energy sources to accommodate: all our current electricity demands the increased electricity demands of a growing population the increased electricity demands of new modes of transportation General agreement among climatologists, paleoclimatologists, oceanographers and other scientists that there must be a steady reduction in GHG emissions from now until 2050, when the reduction must be in the order of 80% of 1990 levels to obviate the worst effects of global warming. To those who say that scientists are not in agreement about global warming, it can reasonably be said that disagreements may exist over the level to which we must reduce and by when, or whether the effects of inaction will be catastrophic or merely disastrous, but there is practically no disagreement in the international scientific community that a) global warming is occurring, b) this is a naturally occurring phenomenon exacerbated on this occasion by anthropogenic (i.e., man-made) activity*, and c) globally, we will feel some effects of global warming regardless of what actions we take, but we must still undertake serious mitigation of emissions levels to buffer the planet�s systems against the most extreme effects of the warming. The burning of coal represents the largest single source of GHG emissions, and to date no method of using coal on a commercial scale without large-scale emissions has been demonstrated. The global warming solutions that we find must take into account not just the present-day level of power generation-related emissions, but also the increased levels of electricity demanded by increasing populations and the increased levels of electricity required by new transportation options (e.g., electric or hybrid cars). *The last documentable occurrence of the global warming phenomenon lasted, approximately, from the 9th century to the 14th century. The drought and famine it induced displaced whole peoples from their traditional habitat in areas of South America, North America, East and Southeast Asia, central Asia, parts of Africa and Europe. Many of these areas, which then only supported populations numbering in the thousands, are now home to millions. General agreement among climatologists, paleoclimatologists, oceanographers and other scientists that there must be a steady reduction in GHG emissions from now until 2050, when the reduction must be in the order of 80% of 1990 levels to obviate the worst effects of global warming. To those who say that scientists are not in agreement about global warming, it can reasonably be said that disagreements may exist over the level to which we must reduce and by when, or whether the effects of inaction will be catastrophic or merely disastrous, but there is practically no disagreement in the international scientific community that a) global warming is occurring, b) this is a naturally occurring phenomenon exacerbated on this occasion by anthropogenic (i.e., man-made) activity*, and c) globally, we will feel some effects of global warming regardless of what actions we take, but we must still undertake serious mitigation of emissions levels to buffer the planet�s systems against the most extreme effects of the warming. The burning of coal represents the largest single source of GHG emissions, and to date no method of using coal on a commercial scale without large-scale emissions has been demonstrated. The global warming solutions that we find must take into account not just the present-day level of power generation-related emissions, but also the increased levels of electricity demanded by increasing populations and the increased levels of electricity required by new transportation options (e.g., electric or hybrid cars). *The last documentable occurrence of the global warming phenomenon lasted, approximately, from the 9th century to the 14th century. The drought and famine it induced displaced whole peoples from their traditional habitat in areas of South America, North America, East and Southeast Asia, central Asia, parts of Africa and Europe. Many of these areas, which then only supported populations numbering in the thousands, are now home to millions.

7. What can a Municipal PV System do? Transfer part of municipal energy load to clean, zero-fuel, renewable power source Reduce monthly municipal expenditure on energy, including transmission costs Hedge against future fuel price increases and upward pressure on property taxes Employ local businesses in construction, etc. Create image of town as forward-looking, intelligent community suitable for business investment How much of load gets transferred? That depends on such factors as 1) absolute size of existing load, 2) insolation factor in area in question (see slide 5), 3) size and efficiency of solar array installed, 4) efficiency of location chosen for installation, 5) net metering arrangement in force. $$ reduction? Depends on: 1) financing mechanism and/or capital cost of installation (see financing slides to follow), 2) amount of conventional load payments avoided (related to size and efficiency of solar installation), 3) energy efficiency measures adopted to optimize electricity usage. Don�t forget: you not only save money on the fuel that is NOTused to provide your electricity, but also on avoidance of the costof transmitting that electricity from the power station to you. How much of load gets transferred? That depends on such factors as 1) absolute size of existing load, 2) insolation factor in area in question (see slide 5), 3) size and efficiency of solar array installed, 4) efficiency of location chosen for installation, 5) net metering arrangement in force. $$ reduction? Depends on: 1) financing mechanism and/or capital cost of installation (see financing slides to follow), 2) amount of conventional load payments avoided (related to size and efficiency of solar installation), 3) energy efficiency measures adopted to optimize electricity usage. Don�t forget: you not only save money on the fuel that is NOTused to provide your electricity, but also on avoidance of the costof transmitting that electricity from the power station to you.

8. Typical Savings with PV System Columns 2, 3 & 4 show purchase costs for electricity for the end-user; we are currently closer to the 15-cent price than the others, which have been included for comparison and to give an idea of achievable savings when prices rise to those levels. In example noted, 10-kW system cost $100,000, half of which was paid by Massachusetts Renewable Energy Trust (rebate for small renewables financed by surcharge on utility bills). REC (Renewable Energy Certificate) : a tradable commodity that monetizes the environmental or policy attributes of one megawatt-hour of renewable energy. These certificates are traded separately from the physical electricity generated by a renewable energy plant. So when the owner of the solar system has generated one megawatt-hour of electricity, he has a certificate of defined value that can be traded, creating a revenue stream. Columns 2, 3 & 4 show purchase costs for electricity for the end-user; we are currently closer to the 15-cent price than the others, which have been included for comparison and to give an idea of achievable savings when prices rise to those levels. In example noted, 10-kW system cost $100,000, half of which was paid by Massachusetts Renewable Energy Trust (rebate for small renewables financed by surcharge on utility bills). REC (Renewable Energy Certificate) : a tradable commodity that monetizes the environmental or policy attributes of one megawatt-hour of renewable energy. These certificates are traded separately from the physical electricity generated by a renewable energy plant. So when the owner of the solar system has generated one megawatt-hour of electricity, he has a certificate of defined value that can be traded, creating a revenue stream.

9. Bottom Line: What�s the Price Tag? Rule of thumb: $10/Watt installed (so 10kW system ~$100,000) Deduct federal and/or state subsidies/rebates from this figure. It could cut upfront cost in half!(e.g. In 2008, Massachusetts ratepayer-funded program covered 50% of Yarmouth Town Hall installation) Assuming federal/state assistance and anticipated increases in electricity prices, system may break even in as little as 10 years(with 10-30 years� life remaining)

10. Different Ways of Purchasing System (1)

11. Different Ways of Purchasing System (2)

12. Incentives/Rebates/Grants Available to Towns in State of _______________ (The citizen presenter should customize this slide to the town and state of residence. Data on federal and state assistance for renewables can be found at: http://www.solar-nation.org/why-solar/govt-incentives-for-renewable-energy/) The presenter should prepare this slide with up-to-date information on state and federal assistance for renewable energy installations in his town. Although town governments cannot claim clean energy tax credits, there are funds available to them from state, regional and federal sources for related purposes. (This presentation does not go into detailed parameters for these funds). Much of this information can be found at the DSIRE database: http://www.solar-nation.org/why-solar/govt-incentives-for-renewable-energy/ In general: At the state level there are: 17 state System Benefit trust funds Several more state grant funds 37 state Clean Air Act SIP funds At the regional level there are: RGGI funds (New England & mid-Atlantic states) At the Federal-to-State level there are: USDOE and USEPA state grant programs USDOE loan guarantees IRS (CREBS) loan and bonding programs Glossary: SIP: State Implementation Plan RGGI: Regional Greenhouse Gas Initiative; affects Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont USDOE: Dept. of Energy USEPA: Environmental Protection Agency CREBS: Clean Renewable Energy Bonds The presenter should prepare this slide with up-to-date information on state and federal assistance for renewable energy installations in his town. Although town governments cannot claim clean energy tax credits, there are funds available to them from state, regional and federal sources for related purposes. (This presentation does not go into detailed parameters for these funds). Much of this information can be found at the DSIRE database: http://www.solar-nation.org/why-solar/govt-incentives-for-renewable-energy/ In general: At the state level there are: 17 state System Benefit trust funds Several more state grant funds 37 state Clean Air Act SIP funds At the regional level there are: RGGI funds (New England & mid-Atlantic states) At the Federal-to-State level there are: USDOE and USEPA state grant programs USDOE loan guarantees IRS (CREBS) loan and bonding programs Glossary: SIP: State Implementation Plan RGGI: Regional Greenhouse Gas Initiative; affects Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont USDOE: Dept. of Energy USEPA: Environmental Protection Agency CREBS: Clean Renewable Energy Bonds

13. Alternative Financing Options (1) Outside investor (�3rd Party�) buys, installs & owns system 3rd Party sells power to Town for set period (20 yrs?) at agreed rate 3rd Party enjoys tax credits, incentives, etc. (which town gov�t. may be unable to do) At end of period, Town may buy system or renew PPA Note: solar PPAs tend only to be of interest to third-party investors with larger installation sizes, e.g., 200kW and up. This option may only apply to larger towns and cities.Note: solar PPAs tend only to be of interest to third-party investors with larger installation sizes, e.g., 200kW and up. This option may only apply to larger towns and cities.

14. Alternative Financing Options (2) Outside investor and Town jointly fund system thru� Special Purpose Entity (SPE)--often an LLC--with investor as majority owner SPE sells power to Town for set period (20 yrs?) at agreed rate SPE enjoys tax credits, incentives, etc. (which Town may be unable to do) At agreed point (6 yrs. +?), Town becomes majority owner, may buy system at discount

15. Bottom Line for $$ Spent State and/or federal gov�t. may significantly reduce initial outlay, irrespective of financing model used Lease-to-own or �flip� financing model may significantly reduce initial outlay, irrespective of government assistance One building generally too small for SPPA, but treat all municipal buildings as one project to attract investor. Even so, lease-to-own may be more realistic for small-to-medium size towns How do you quantify putting your town ahead of the curve of history!? Municipal buildings could include town offices, police headquarters, fire/EMT building, water treatment plant, transfer station/waste treatment facility, schools, libraries, recreation department, bus station, community center, municipal golf course buildings, chamber of commerce, hospital, courthouse, and many more. It�s important for the audience to understand that there�s no going back; renewable energy is the way the world must go to: Maintain some semblance of the lifestyle it has come to expect with conventional energy b) Reduce the levels of pollution it is currently creating c) Slow down the onset of global climate disruption In purely financial terms, however, adopting these measures as a town will send a message to the business community that the town is looking to the future and should be considered an ideal place for business investment.Imagine getting solar panels on the roof of your town hall before the Carter panels are replaced on the White House roof! Municipal buildings could include town offices, police headquarters, fire/EMT building, water treatment plant, transfer station/waste treatment facility, schools, libraries, recreation department, bus station, community center, municipal golf course buildings, chamber of commerce, hospital, courthouse, and many more. It�s important for the audience to understand that there�s no going back; renewable energy is the way the world must go to: Maintain some semblance of the lifestyle it has come to expect with conventional energy b) Reduce the levels of pollution it is currently creating c) Slow down the onset of global climate disruption In purely financial terms, however, adopting these measures as a town will send a message to the business community that the town is looking to the future and should be considered an ideal place for business investment.Imagine getting solar panels on the roof of your town hall before the Carter panels are replaced on the White House roof!

16. Case Study: Yarmouth, MA Photo is of Yarmouth Town Hall with 10.5-kW grid-connected PV system in operation on roof.Photo is of Yarmouth Town Hall with 10.5-kW grid-connected PV system in operation on roof.

17. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it�s the only thing that ever has. -Margaret Mead Peter White organized 10 residents of Yarmouth to put article on Town Meeting warrant for solarizing town hall MA Technology Collaborative�s Small Renewables Initiative Grant offered to match town�s contribution to cost New England towns follow the Town Meeting model of town government, but all states allow citizens to make representations to their town in some form.New England towns follow the Town Meeting model of town government, but all states allow citizens to make representations to their town in some form.

18. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it�s the only thing that ever has. -Margaret Mead Liz Argo of SolarWrights Inc. proposed 10.5kW system (60 panels) System produces 12,000kWh per year, saving ~$2400 (based on existing rate of $0.20/kWh) Total system cost $100,000 Town paid $50,000 State paid $50,000

19. With predictable rise in electrical costs, payback should be <13 yrs. 9 months after commissioning, total kW output is at least as much as forecast >20,000lbs. of CO2, 31lbs. of NO, & 94lbs. of SO2 prevented from entering atmosphere every year Benefit equivalent to planting 3 acres of trees Town is now building 2nd installation at Chamber of Commerce/Rec. Dept. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it�s the only thing that ever has.-Margaret Mead Point to note: The original system went on-line in late March 2008; output was increased to 12.7kW shortly thereafter. As of mid-January 2009, the system had produced 12,746 kW*, so is performing at least as well as predicted. *per Fat Spaniel monitoring, viewable at: http://view2.fatspaniel.net/PV2Web/merge?&view=PV/detailDC/HostedAdmin&eid=105854 Point to note: The original system went on-line in late March 2008; output was increased to 12.7kW shortly thereafter. As of mid-January 2009, the system had produced 12,746 kW*, so is performing at least as well as predicted. *per Fat Spaniel monitoring, viewable at: http://view2.fatspaniel.net/PV2Web/merge?&view=PV/detailDC/HostedAdmin&eid=105854

20. Two Other Towns that �Got the Message� Lagunitas School District, San Geronimo, CA (49.3kW system) Water treatment plant, Pendleton, OR(100kW system) Both of these installations were financed through solar PPAs.Both of these installations were financed through solar PPAs.

21. Next Steps Define scope of project Identify possible installation locations Assess energy efficiency measures and costs Research more accurate installation costs Confirm rebate/subsidy entitlements from state and federal sources Decide on financing model to be used and find investors/partners/vendors appropriate to that model Negotiate contract Scope: How many buildings? Would larger project better attract investors? Or if going after ownership model, what is practical budget? Location, location, location. Town offices may not have optimum orientation for solar. Solar installer can give advice; check also: local chapter of SEIA, if any local chapter of ASES, if any local renewable/sustainable energy society (These orgs. could be good resources in all sorts of ways.) Energy efficiency: this should be done regardless of source of power - many ways of reducing municipal load exist. Some of these will compete with solar program for available funds.For every dollar spent on energy efficiency, five dollars of savings are realized. Installation costs could be affected downward by competition and technology advances, or upward by increased material costs and tighter credit. Also, less-than-optimum building orientations may impose unusual costs. State/federal grants/rebates/subsidies may, if generous enough, allow for ownership of installation by town, rather than PPA/lease model. Scope: How many buildings? Would larger project better attract investors? Or if going after ownership model, what is practical budget? Location, location, location. Town offices may not have optimum orientation for solar. Solar installer can give advice; check also: local chapter of SEIA, if any local chapter of ASES, if any local renewable/sustainable energy society (These orgs. could be good resources in all sorts of ways.) Energy efficiency: this should be done regardless of source of power - many ways of reducing municipal load exist. Some of these will compete with solar program for available funds.For every dollar spent on energy efficiency, five dollars of savings are realized. Installation costs could be affected downward by competition and technology advances, or upward by increased material costs and tighter credit. Also, less-than-optimum building orientations may impose unusual costs. State/federal grants/rebates/subsidies may, if generous enough, allow for ownership of installation by town, rather than PPA/lease model.

22. Resources and References

23. Why Should we Take Action Now? Electricity prices based on fossil fuels will continue to rise Need to reduce GHG emissions for climate security affects every part of the economy State and/or federal rebates/credits in force now (and may not be later) Fossil fuel prices: it�s well understood that the current drop in the price of oil is due to lack of demand, a consequence of the poor worldwide economic situation. But oil is at or near the �peak oil� point, and can only continue to increase in price as demand is restored, especially in rapidly developing countries like India and China. Natural gas has also experienced a manyfold increase in price in recent years. While coal has doubled in price recently, it is still the cheapest form of fuel for electricity in the U.S. However, these fuels will certainly be burdened with a government-imposed carbon penalty soon, which will impact coal more than any other fuel, and if subsidies currently enjoyed by fossil fuels are removed or reduced, then their pricing will more accurately reflect their total impact on the environment, and renewables will compare more favorably. GHG emissions: mostly caused by power generation, but that is a consequence of demand; we must find, in all fields of activity, ways to reduce our need for emissions-causing fuels and the activities that demand their use. This includes making buildings more efficient, rethinking mass transportation, fueling vehicles with renewable, cleaner power sources, reforesting the world, etc. As fossil fuels continue to rise in price and renewables become more comparably priced, government assistance for renewables investment will weaken. Eventually there will be no need for tax credits etc. for an energy source that costs no more than fossil-based alternatives.Fossil fuel prices: it�s well understood that the current drop in the price of oil is due to lack of demand, a consequence of the poor worldwide economic situation. But oil is at or near the �peak oil� point, and can only continue to increase in price as demand is restored, especially in rapidly developing countries like India and China. Natural gas has also experienced a manyfold increase in price in recent years. While coal has doubled in price recently, it is still the cheapest form of fuel for electricity in the U.S. However, these fuels will certainly be burdened with a government-imposed carbon penalty soon, which will impact coal more than any other fuel, and if subsidies currently enjoyed by fossil fuels are removed or reduced, then their pricing will more accurately reflect their total impact on the environment, and renewables will compare more favorably. GHG emissions: mostly caused by power generation, but that is a consequence of demand; we must find, in all fields of activity, ways to reduce our need for emissions-causing fuels and the activities that demand their use. This includes making buildings more efficient, rethinking mass transportation, fueling vehicles with renewable, cleaner power sources, reforesting the world, etc. As fossil fuels continue to rise in price and renewables become more comparably priced, government assistance for renewables investment will weaken. Eventually there will be no need for tax credits etc. for an energy source that costs no more than fossil-based alternatives.

24. Any Questions? Solar Power for our Town