Community Solar Ted Kjos
Community Solar
Ted Kjos V.P. Marketing & External Relations SEPA Utility Solar Conference April 23, 2014
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Project Constraints ∗ MN’s regulatory / legislative environment. ∗ G&T’s all requirements contract ∗ No incentives for not-for-profits. ∗ Member to member subsidization. ∗ Cost of member owned vs. community PV. ∗ Acceptable financial return. ∗ System benefits. 3
Reasons To Move Forward ∗ Member satisfaction. ∗ Use as an educational tool. ∗ Learn & assess the potential for system benefits. ∗ Enhance community image. ∗ Preemptive action vs. regulation. ∗ Concern over 3rd party solar. ∗ Build political capital. 4
The Business Model ∗ TEC forms LLC’s to own and operate the array. ∗ Tax Equity Investor puts upfront capital in exchange for Federal tax credits. ∗ TEC Members provide balance of capital in exchange for units of capacity to produce renewable energy. ∗ TEC credits members for kWh’s produced on a monthly basis for 20 years. 5
Member Participation ∗ Minimum level of participation = 1 unit. ∗ 1 unit=410 watts (rated capacity 1 PV module). ∗ Member pays cost/unit upfront. ∗ Member receives on-bill credit for kWh’s (a one-for-one energy off-set)
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PV Technology ∗ Ground mount 73.8 kW PV array. ∗ Located at TEC headquarters facility in Rushford. ∗ Stand alone 120/240 volt single phase service. ∗ Production monitoring interface with TEC website. ∗ Considering battery storage for DSM. 7
Questions? Ted Kjos V.P. Marketing & External Relations
Ted Kjos V.P. Marketing & External Relations SEPA Utility Solar Conference April 23, 2014
2
Project Constraints ∗ MN’s regulatory / legislative environment. ∗ G&T’s all requirements contract ∗ No incentives for not-for-profits. ∗ Member to member subsidization. ∗ Cost of member owned vs. community PV. ∗ Acceptable financial return. ∗ System benefits. 3
Reasons To Move Forward ∗ Member satisfaction. ∗ Use as an educational tool. ∗ Learn & assess the potential for system benefits. ∗ Enhance community image. ∗ Preemptive action vs. regulation. ∗ Concern over 3rd party solar. ∗ Build political capital. 4
The Business Model ∗ TEC forms LLC’s to own and operate the array. ∗ Tax Equity Investor puts upfront capital in exchange for Federal tax credits. ∗ TEC Members provide balance of capital in exchange for units of capacity to produce renewable energy. ∗ TEC credits members for kWh’s produced on a monthly basis for 20 years. 5
Member Participation ∗ Minimum level of participation = 1 unit. ∗ 1 unit=410 watts (rated capacity 1 PV module). ∗ Member pays cost/unit upfront. ∗ Member receives on-bill credit for kWh’s (a one-for-one energy off-set)
6
PV Technology ∗ Ground mount 73.8 kW PV array. ∗ Located at TEC headquarters facility in Rushford. ∗ Stand alone 120/240 volt single phase service. ∗ Production monitoring interface with TEC website. ∗ Considering battery storage for DSM. 7
Questions? Ted Kjos V.P. Marketing & External Relations
