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Solar Currents - Customer-Owned Expansion Phase 2 Program Overview. MREP Solar Committee Meeting December 12, 2012 Julie Londo, Program Manager. A quick look at the results of Phase 1. 570 projects commissioned as of 12/12/12 (20 pending)
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SolarCurrents - Customer-Owned ExpansionPhase 2 Program Overview MREP Solar Committee Meeting December 12, 2012 Julie Londo, Program Manager
A quick look at the results of Phase 1 • 570 projects commissioned as of 12/12/12 (20 pending) • 75/25 split between residential and non-residential based on number of projects (60/40 based on capacity) • Projects located in all 13 counties of DTE Energy’s electric service territory • Highest concentration of projects by City • - Ann Arbor (54) • - Detroit (21) • - Ypsilanti (15) • Average capacity factor ≈ 12%
Program Incentives – Phase 2 • New pricing reflects updated market pricing in installed cost of PV systems and different economics for residential / commercial customers • Discrete offerings of capacity to control pace of subscriptions and avoid stampede for available kilowatts • Desire to incentivize better system design and maintenance (new pricing reflects 30/70 split between up front and ongoing incentive components vs. 50/50 split in Phase 1) • Note: (over 2.5MW of projects are active in Net Metering Program since Phase 1 concluded with 1.1MW fully commissioned) Program Incentives *Pricing will be reviewed prior to each offering.
Program offering timeline • The new process drives controlled approval, and quicker construction, of projects • Approximately 2 ½ months from program launch until project selection • 10 months from project selection until completion deadline. • Planned offering schedule • Jan 2013– 500kW • Jun 2013– 500kW • Jan 2014 – 500kW • Jun 2014 – 500kW • Feb 2015 – remnants
Random Selection Event Reasons for random project selection award method • Spreading out kW available for length of RPS program 2015 compliance target • Scheduled offerings of kW over time creates opportunities for customers to participate throughout the duration of the program How it works • Applications will be assigned a unique id number keeping customer identities confidential • Numbered balls representing eligible applications will be randomly drawn until the capacity is awarded for the phase • The drawing process stops when total kW capacity exceeds the offering limit • Any capacity not commissioned in an offering will be added the 2015 offering • Any overage of capacity awarded reduces size of next offering • Customers not selected will have to reapply for future offerings • All customers will be informed via email within 24 hours of selection • Results will be posted on the DTE Energy Web site (dteenergy.com/SCresults) within 24 hours of selection
SolarCurrents Agreement New for Phase 2: • Agreement will be mailed upon selection of project • Within 10 months of receiving notification of project selection, project must be ready for DTE Energy commissioning or the project may be subject to removal from participation in the SolarCurrents Customer-owned Pilot Program • The contractual end date for every commissioned project is August 31, 2029 regardless of commissioning year • Customers shall grant access rights to DTE Energy to obtain information regarding design, cost or performance of the solar PV energy system that participates in the DTE Energy SolarCurrents Customer-owned Pilot Program. Customers will be notified prior to scheduled visit.
Process Checklist Step 5: Submit documentation. • Within 40 business days of notification of project selection, provide commitment to complete project within 10 months by submitting: ~ Detailed site plan indicating placement of solar panels, including trees, buildings and other structures near the PV installation, and site orientation relative to True North. ~ Invoice showing proof of equipment purchased or document between installer and customer showing agreement to install solar PV system indicating down payment on project. ~ The completed annual solar production form by visiting the PVWatts website: www.nrel.gov/rredc/pvwatts/grid.html
www.dteenergy.com/solar 313.235.4SUN(4786)
Res vs. Non-Res Pricing Examples Residential example of $0.20/$0.03 Non-Residential example of $0.13/$0.02
To date, Detroit Edison has built or contracted for approximately 700MW of renewable capacity Detroit Edison has already contracted for ~700 MW of new renewable capacity: L’Anse Warden 17 MW Biomass Baraga County Tuscola Bay 120 MW Wind Tuscola County Tuscola Wind 2 100 MW Wind Pending MPSC approval Echo ~110 MW Wind Huron County Stoney Corners 32 MW Wind Missaukee County Thumb Wind Farms ~110 MW Wind Huron & Sanilac County Eagle Valley 3 MW Landfill Gas Oakland County Smiths Creek 3 MW Landfill Gas St. Clair County Gratiot Wind Energy 212 MW* Wind Gratiot County * Detroit Edison’s capacity equals 102.4MW Detroit Edison owned projects Third party owned projects SolarCurrents Pilot: 7 MW contracted Located at customer /company sites across SE MI ~600 customer-owned projects once complete