Holcomb R SEPA Community Solar Presentation
Tipmont Community Solar SEPA Utility Solar Conference April 29, 2015
Today’s Topics 1. 2. 3. 4.
Tipmont REMC Overview, Value Drivers and Project Goals The Community Solar Project and High Level Attributes Lessons Learned A Few Pics
Tipmont REMC • A member-owned cooperative providing electric service to more than 22,000 members • Founded in 1939 • Headquartered in Linden, Indiana • Tipmont’s Mission: To empower our communities by providing state of the art essential services
Environmental Factors • Diversity of Membership • Northern service area wraps Lafayette and Purdue University • High interest among some members in environmental sustainability • Highest participation in Envirowatts program in the state • Large agricultural base in southern half of service territory • G&T Membership • All requirements contract • ½ percent exception for distributed generation • Tipmont Board of Directors • Forward leaning and committed to adding member value
Tipmont Value Drivers • Awareness that our obligation is to provide reliable and cost effective energy services – risk managed for the future • Recognition that our members look to us as leaders in the energy space and it is a trust we take very seriously • Commitment to providing the best value to our members – may mean transforming our business in a changing energy marketplace • Recognition that a deliberate and thoughtful move to renewables reduces the risk of fossil fuel price volatility and provides sustainability • Understanding that efficiency programs are necessary to assist members control costs – the best kWh is the one that wasn’t needed
Three Major Project Goals •
Objective One – Voluntary participation and flexibility for members with interest in: • Environmental stewardship • Risk mitigation – avoid long-term fossil fuel risk
•
Objective Two – Staff Education and Experience • Build confidence - hands-on learning • Member engagement
•
Objective Three – Quantify and capture value • Evaluate production value given wholesale power costs • Leverage tax credits
Solution: Community Solar • Objective One – Voluntary Participation and Flexibility • CS model permits voluntary participation • CS overcomes physical, financial, or other barriers common with individual property installations. • CS allows members to purchase solar energy installed off site and benefit through billing and accounting mechanisms • Objective Two – Education and Experience • CS can be scaled for optimal value and risk tolerance • CS provides hands-on experience with construction, operation and maintenance and and continuous access to performance data • CS provides Tipmont credibility with the membership. • Objective Three – Quantify Value • Value of energy production can be evaluated against G&T costs (energy, demand and coincident peak)
Tipmont Solar Array •
100 kW array, 240 panels, 410 watts each
•
south of Linden headquarters
•
on Tipmont-owned property
•
room for additional panels in same area, up to ~ 200 kW
•
proximity to office provides visible connection between solar array and Tipmont REMC
•
opportunity for member tours, media visits, community events, employee training
•
Constructed, operated, and maintained by Tipmont
Member Agreement • $1250 to lease output per panel • One time payment or 1, 2, or 3 years to finance • May lease up to 50% total usage but no more than 10 panels • Agreement for term of 25 years • Can expect an average of $5.00 credit per month in the first year • Credit will increase as rates change over time • Panel stays with member if member moves to new Tipmont location • Option to transfer panel to another member or back to Tipmont • Array is owned, operated, and maintained by Tipmont
Member Financial Impact
Community Solar payment
$1,250.00
Total Projected Production (25 year lease)
14,154 kWh
Calculated cost per kWh
$0.08831
Estimated time to recover initial payment
15.84 years
Projected avoided costs (25 year lease)
$2,280.70
Wholesale Power Cost Trend
Scenario With Zero Panels Subscribed
Scenario With 50% Panels Subscribed
Scenario With 100% Panels Subscribed
A Few Stats • Construction Completed in October 6th, 2014 • Opened to the Public on Cooperative Community Day – Oct 10th • Panels sold to date: 25% • Expected avg. annual production: 144,000 kWh • Average bill credit / month: $5 • Avoided WP cost: $2,000 (six months) • Cover of the Rolling Stone: 1
Lesson Learned – so far • Early focus on financial models, engineering and construction without enough focus on member engagement, marketing and sales. • Response: • Launching updated marketing campaign • Renewed focus on stakeholder communications • Launched optional PPA rate – where member may purchase solar energy on a monthly basis with no commitment
Construction – Anchors
Construction – Rail Assembly
Construction – Module Installation 3
Construction
Construction
Community Day Ribbon Cutting
Thank you
Ron Holcomb [email protected]
Today’s Topics 1. 2. 3. 4.
Tipmont REMC Overview, Value Drivers and Project Goals The Community Solar Project and High Level Attributes Lessons Learned A Few Pics
Tipmont REMC • A member-owned cooperative providing electric service to more than 22,000 members • Founded in 1939 • Headquartered in Linden, Indiana • Tipmont’s Mission: To empower our communities by providing state of the art essential services
Environmental Factors • Diversity of Membership • Northern service area wraps Lafayette and Purdue University • High interest among some members in environmental sustainability • Highest participation in Envirowatts program in the state • Large agricultural base in southern half of service territory • G&T Membership • All requirements contract • ½ percent exception for distributed generation • Tipmont Board of Directors • Forward leaning and committed to adding member value
Tipmont Value Drivers • Awareness that our obligation is to provide reliable and cost effective energy services – risk managed for the future • Recognition that our members look to us as leaders in the energy space and it is a trust we take very seriously • Commitment to providing the best value to our members – may mean transforming our business in a changing energy marketplace • Recognition that a deliberate and thoughtful move to renewables reduces the risk of fossil fuel price volatility and provides sustainability • Understanding that efficiency programs are necessary to assist members control costs – the best kWh is the one that wasn’t needed
Three Major Project Goals •
Objective One – Voluntary participation and flexibility for members with interest in: • Environmental stewardship • Risk mitigation – avoid long-term fossil fuel risk
•
Objective Two – Staff Education and Experience • Build confidence - hands-on learning • Member engagement
•
Objective Three – Quantify and capture value • Evaluate production value given wholesale power costs • Leverage tax credits
Solution: Community Solar • Objective One – Voluntary Participation and Flexibility • CS model permits voluntary participation • CS overcomes physical, financial, or other barriers common with individual property installations. • CS allows members to purchase solar energy installed off site and benefit through billing and accounting mechanisms • Objective Two – Education and Experience • CS can be scaled for optimal value and risk tolerance • CS provides hands-on experience with construction, operation and maintenance and and continuous access to performance data • CS provides Tipmont credibility with the membership. • Objective Three – Quantify Value • Value of energy production can be evaluated against G&T costs (energy, demand and coincident peak)
Tipmont Solar Array •
100 kW array, 240 panels, 410 watts each
•
south of Linden headquarters
•
on Tipmont-owned property
•
room for additional panels in same area, up to ~ 200 kW
•
proximity to office provides visible connection between solar array and Tipmont REMC
•
opportunity for member tours, media visits, community events, employee training
•
Constructed, operated, and maintained by Tipmont
Member Agreement • $1250 to lease output per panel • One time payment or 1, 2, or 3 years to finance • May lease up to 50% total usage but no more than 10 panels • Agreement for term of 25 years • Can expect an average of $5.00 credit per month in the first year • Credit will increase as rates change over time • Panel stays with member if member moves to new Tipmont location • Option to transfer panel to another member or back to Tipmont • Array is owned, operated, and maintained by Tipmont
Member Financial Impact
Community Solar payment
$1,250.00
Total Projected Production (25 year lease)
14,154 kWh
Calculated cost per kWh
$0.08831
Estimated time to recover initial payment
15.84 years
Projected avoided costs (25 year lease)
$2,280.70
Wholesale Power Cost Trend
Scenario With Zero Panels Subscribed
Scenario With 50% Panels Subscribed
Scenario With 100% Panels Subscribed
A Few Stats • Construction Completed in October 6th, 2014 • Opened to the Public on Cooperative Community Day – Oct 10th • Panels sold to date: 25% • Expected avg. annual production: 144,000 kWh • Average bill credit / month: $5 • Avoided WP cost: $2,000 (six months) • Cover of the Rolling Stone: 1
Lesson Learned – so far • Early focus on financial models, engineering and construction without enough focus on member engagement, marketing and sales. • Response: • Launching updated marketing campaign • Renewed focus on stakeholder communications • Launched optional PPA rate – where member may purchase solar energy on a monthly basis with no commitment
Construction – Anchors
Construction – Rail Assembly
Construction – Module Installation 3
Construction
Construction
Community Day Ribbon Cutting
Thank you
Ron Holcomb [email protected]
