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Solar System Project Overview

Solar System Project Overview. Presented by: Brandon Robertson, Town Manager April 29, 2014. Why Solar? RFP Process Overview. 2008 – AMS roof plumbed for solar as part of the renovation project

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Solar System Project Overview

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  1. Solar System Project Overview Presented by: Brandon Robertson, Town Manager April 29, 2014

  2. Why Solar? RFP Process Overview • 2008 – AMS roof plumbed for solar as part of the renovation project • 2011 – Avon Energy Plan identifies solar as a viable renewable option to go green, reduce operating costs, and achieve goals. • Summer/Fall 2013 – Town/BOE staff and ACEC met with CCM to discuss Solar RFP • Fall 2013 – Murtha Cullina engaged to manage RFP process • January 31, 2014 – 9 proposals received / reviewed by Murtha • February/March 2014 – Town/BOE interview three firms; SolarCity selected as preferred vendor • April 2014 – seek approvals from elected boards to proceed

  3. What is a PPA? • Power Purchase Agreements (PPA) are long-term contracts to buy electricity at a predetermined rate • Developer absorbs the costs of proposal, design, construction, operation, and maintenance of the system • Customer typically realizes energy cost savings over the length of the contract • Customer stays attached to the electric grid for the balance of their power needs

  4. Key PPA Terms • 15 year PPA to match expected life of roofs and roof warranties • Suitability of roofs is certified by a third party structural engineer (at SolarCity’s expense) • Zero maintenance costs • Performance risk stays with developer • Multiple buy out options • Option to have systems removed by SolarCity at no cost at end of 15 year PPA terms • Option to purchase systems from SolarCity at fair market value to capture residual value in out years

  5. What is a PPA? (cont.) • Avon’s Comprehensive Energy Management Plan provides the following explanation of Power Purchase Agreements as vehicles to achieve energy savings: “While not a capital project funding mechanism, per se, power purchase agreements (“PPAs”) are being increasingly used by public and private entities to secure renewable energy, and most typically solar generated electricity, though PPAs are also executed for wind and landfill gas projects. The Town would execute a PPA with a private company that would purchase, install, own, maintain and operate a renewable energy project at a Town facility. The Town would agree to purchase the power produced by the project at an agreed upon price over some number.”

  6. Why use a PPA? • Zero upfront costs • Hedge against future electricity costs • No operations & maintenance costs • No performance risk • No increase in insurance • Typically immediate energy cost savings • Third party monitors and maintains the system

  7. Benefits • Cost avoidance • Estimated at $350,000+ over 15 years • Approximately $23,000 / year • Projects at AHS, AMS, and DPW • Meet Energy Goals • 15% more efficient by 2015 (on a square foot basis) • 20% Carbon Footprint reduction by 2020 • Integrate real technology (solar) into curriculum • Energy Diversification • Geothermal system at AFPL • Conversion from oil to natural gas across Town/BOE sites • Energy efficiency upgrades • Behavior modification

  8. Recommendation • SolarCity • Largest solar installer in the United States • +$4.0 billion in available project financing • Significant Connecticut municipal experience • Proposed installation at AMS, AHS (new roof sections) and DPW • Competitive ZREC bid ($85) and PPA price (7.4 to 10.2 cents per kwh over the life of the PPA)

  9. Cost Avoidance • AHS • Total savings estimated at $171,622 or $11,441/year • Year 1 production = 362,700 kwh • AMS • Total savings estimated at $129,191 or $$8,613/year • Year 1 production = 200,200 kwh • DPW • Total savings estimated at $51,782 or $3,452/year • Year 1 production = 98,982 kwh Please refer to SolarCity Savings Estimates in packets for details.

  10. AHS System Renderings

  11. What’s Next? • April 3, 2014 TC Meeting to grant easements for all sites and authorize TM to sign DPW PPA • April 22, 2014 BOE Meeting to grant easements for school signs and authorize Superintendent to sign AHS/AMS PPAs • Late April 2014 ZREC RFP Released by CL&P • June 2014 (TBD) Project Bid Forms Due From Solar Developer & Projects go before P&Z for Site Plan Amendment • August 2014 (TBD) Projects Selected by CL&P under ZREC Auction • September 2014 (TBD) Standard Contracts Executed for Projects by Solar Developers & Performance Assurance due from Solar Developers within five days after Standard Contract Execution • October 2014 (TBD) CL&P files Standard Contracts with PURA • December 2014 (TBD) PURA Approves Projects • 2015 (TBD) Project construction

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