Placer Neil Community Solar Final Slides
Maximizing the Value of Community Solar Neil Placer Sr. Manager, Renewable Energy Solutions Tennessee Valley Authority SEPA Utility Solar Conference April 29, 2015
Do you believe community solar constructs can be enhanced to leverage more of the solar value stream?
2
Community Solar Value Streams
Component
Value
Return on Investment
kWh = $
Renewable Energy Credits
RECs = Claims = Meeting Goals = $ Commodities Intangibles
Voluntary Contributions
Beyond $ 4
Are community solar constructs leveraging all three of these value streams effectively?
5
What if we put the value streams together?
A novel approach – Combining all 3 value components in one community solar offering Component
#1 Return on Investment
#2 Renewable Energy Credits
#3 Voluntary Contributions
Focus
Upfront investment in exchange for monthly bill credit
REC purchases
Voluntary contributions for recognition or to drive future projects
Existing Program Analog
Renewable Generation Programs or PPAs
Green Pricing Programs for Business Customers
Green Pricing Programs for Residential Customers
7
Less is More or More is More?
Utilizing One CS Component
Combining Multiple CS Components
Simplicity in Communication
Greater Financial Leveraging
Ease of Implementation
Increased Customer Optionality 8
What is more important to you… Simplicity and Ease? or Greater Financial Potential & Customer Optionality? 9
Example of Combining Multiple Components Make it easy and accessible to customers Apply appropriate price points across the various product offerings #1 Return on Investment
#2 Renewable Energy Credits
#3 Voluntary Contributions
Upfront investment in exchange for monthly bill credit
Annual REC purchases
Voluntary contributions for recognition & to drive future projects
Upfront investment Minimum Purchase of Panels 10 panels = 3 kW $5,250 $5,250
Minimum Annual REC Purchase 500 RECs
One-time Voluntary Contribution Various virtual recognition levels & drive future project commitment/location
Monthly Bill Credit Monthly $30/month (flat (flat credit) credit) $30/month
Minimum Annual Investment $2,500($5/REC) ($5/REC) $2,500
No website recognition < $100 Bronze - $100-$199 (website image on 1 panel) Silver - $200-$499 (image over 2 panels + name on virtual plaque) Gold - $500-$999 (image over 5 panels + name on virtual gold billboard) Platinum >$1000 (name on large virtual platinum banner)
11
Focus on Voluntary Component Example #3 Voluntary Contributions
Voluntary contributions for recognition & to drive future projects One-time Voluntary Contribution Example
Voluntary Contributions
No website recognition < $100 Bronze - $100-$199 (website image on 1 panel) Silver - $200-$499 (image over 2 panels + name on virtual plaque) Gold - $500-$999 (image over 5 panels + name on virtual gold billboard) Platinum >$1000 (name on large virtual platinum banner) A certain funding level = future project commitment Location determined by community members?
Are undervalued in community solar design Offer large potential for creativity in customer engagement 12
Leveraging Social Media
13
Feedback
What would you change about this construct to further maximize value?
Other thoughts?
14
16
Do you believe community solar constructs can be enhanced to leverage more of the solar value stream?
2
Community Solar Value Streams
Component
Value
Return on Investment
kWh = $
Renewable Energy Credits
RECs = Claims = Meeting Goals = $ Commodities Intangibles
Voluntary Contributions
Beyond $ 4
Are community solar constructs leveraging all three of these value streams effectively?
5
What if we put the value streams together?
A novel approach – Combining all 3 value components in one community solar offering Component
#1 Return on Investment
#2 Renewable Energy Credits
#3 Voluntary Contributions
Focus
Upfront investment in exchange for monthly bill credit
REC purchases
Voluntary contributions for recognition or to drive future projects
Existing Program Analog
Renewable Generation Programs or PPAs
Green Pricing Programs for Business Customers
Green Pricing Programs for Residential Customers
7
Less is More or More is More?
Utilizing One CS Component
Combining Multiple CS Components
Simplicity in Communication
Greater Financial Leveraging
Ease of Implementation
Increased Customer Optionality 8
What is more important to you… Simplicity and Ease? or Greater Financial Potential & Customer Optionality? 9
Example of Combining Multiple Components Make it easy and accessible to customers Apply appropriate price points across the various product offerings #1 Return on Investment
#2 Renewable Energy Credits
#3 Voluntary Contributions
Upfront investment in exchange for monthly bill credit
Annual REC purchases
Voluntary contributions for recognition & to drive future projects
Upfront investment Minimum Purchase of Panels 10 panels = 3 kW $5,250 $5,250
Minimum Annual REC Purchase 500 RECs
One-time Voluntary Contribution Various virtual recognition levels & drive future project commitment/location
Monthly Bill Credit Monthly $30/month (flat (flat credit) credit) $30/month
Minimum Annual Investment $2,500($5/REC) ($5/REC) $2,500
No website recognition < $100 Bronze - $100-$199 (website image on 1 panel) Silver - $200-$499 (image over 2 panels + name on virtual plaque) Gold - $500-$999 (image over 5 panels + name on virtual gold billboard) Platinum >$1000 (name on large virtual platinum banner)
11
Focus on Voluntary Component Example #3 Voluntary Contributions
Voluntary contributions for recognition & to drive future projects One-time Voluntary Contribution Example
Voluntary Contributions
No website recognition < $100 Bronze - $100-$199 (website image on 1 panel) Silver - $200-$499 (image over 2 panels + name on virtual plaque) Gold - $500-$999 (image over 5 panels + name on virtual gold billboard) Platinum >$1000 (name on large virtual platinum banner) A certain funding level = future project commitment Location determined by community members?
Are undervalued in community solar design Offer large potential for creativity in customer engagement 12
Leveraging Social Media
13
Feedback
What would you change about this construct to further maximize value?
Other thoughts?
14
16
