Tilghman C USC Presentation
TEP Residential Solar Program Carmine Tilghman - Senior Director Energy Supply April 28, 2015
2
Presentation Overview • State of Utility in “competitive” marketplace – Problem – Solution
• TEP Residential Solar Program – Value Propositions
– Example of Average – Contract Key Points / FAQs – Program Process & Documents
– Road Traveled – Timeline 3
The Electric Utility “Problem” • Renewable Portfolio Standard (RPS) – Requires 4.5% of electric sales to come from renewable Distributed Generation (DG) by 2025 – For TEP, this will be roughly 425,000,000 kWh annually of ‘behind the meter’ generation – ~20 MW of residential solar installs each year – ~15 MW of commercial installs annually
4
Tucson Electric Power’s Solution • TEP Owned Residential Solar Program – 2015 REST Plan - Approved December 18th, 2014
– Initial Pilot - $10 million budget, up to 600 homes – ~3.5MW residential solar
– A new customer choice from TEP that offers long-term price stability and greater flexibility!
5
Value to Utility • Reduce impact of cost-shift to non-solar customers • System connected to TEP grid on utility side of meter • Incorporated into distribution management system • Maintain visibility in community as leading energy provider • First significant step away from volumetric rate design • Retention of customers • Mitigation of lost revenue – Residential Solar Tariff
6
TEP Owned Residential Solar Tariff • Available to ALL TEP homeowners in good standing • Based on previous 12 months total usage – creates a “price per installed kW” – $16.50/month per kW
• Energy price fixed for up to 25 years – adjuster at +/- 15% usage
• $250 processing fee once system is complete (covers admin) • Regulatory Out – no fee or penalty to exit program and remove system if ACC changes rate 7
Value to Customer •
Price security and usage flexibility with solar tariff
•
TEP owns, operates, and maintains system at no cost
•
Local solar installer support – design and install system
•
No FICO credit score restrictions
•
Easily transferrable to new home-owners
•
No large, out-of-pocket expense
•
TEP is a 120 year old, stable, reliable community partner
•
Consumer protections afforded through ACC
8
Example
Average residential usage on standard rate Previous 12 months usage: 11,414 kWh - $117.50/month
New Solar Fixed Rate
New Total - Solar Fixed Rate + Taxes
New solar fixed rate: $99.17 - Fixed for up to 25 years New total monthly payment: $111.18 9
Price Security
$99.17 + taxes - Month to month, up to 25 years… 10
Usage Flexibility (+/- 15%) 2921
2556
2191
1826
1460
1095
730
365
0
15,000 kWH
+15% 12,500 kWH
Contracted Usage 10,000 kWH
Annual Usage
-15% 7,500 kWH
Solar payment will remain fixed if your annual usage remains within this +/- 15% range
5,000 kWH 2,500 kWH 0 kWH 1
2
3
4
5
6
7
8
Year in Program
• Contracted usage = 11,414 kWH • +15% upper limit = 13,126 kWH • -15% lower target = 9,702 kWH 11
9
10
11
Contract Key Points • Not a lease – utilizes licensing agreement • 25 years – Stays with property • Buy-out option after year 6 • Exit fee option • Easily transferrable during sale of home • TEP owns, operates, maintains and insures system • Customer responsible for standard roof maintenance
• Regulatory Out 12
Customer Process Overview • Apply Online & Qualify • Site Visit – System Design • Sign Contract & Authorization to Proceed • System Permitting & Material Lists • Installation & Inspection • Interconnection & Commissioning • TEP Acceptance
• Begin New Rate and Pay $250 Processing Fee 13
Contract Workflow
14
Installation Workflow
15
Customer Documents • Program Brochure • Customer Program Proposal • Agreement Terms and Conditions – including…. – Assignment Form – for sale of the home – Notice of Licensing Agreement – recorded in land records • Final Design / Authorization to Proceed • System Manual
16
Road to Implementation • • • • • • • • • • • 17
Legal documents – Customer Contract, Installer SOW, Vendor MSA Installer RFP - Selected three Alliance Contractors (ACs) Vendor RFP – PV Modules (REC) and Inverters (Fronius) Internal program procedures IT reconfigurations for: billing, work management, GIS, website… New interconnection standard Training: Customer Service, ACs, Meter Crews.. Communication and integration strategy Long-term geo-targeting strategy Customer Experience – process and marketing AHJ collaboration & education
Road to Implementation Over 20 TEP departments directly impacted • Weekly internal status meetings and countless sub-team meetings Three Alliance Solar Contractors • Weekly meetings: trainings & collaboration Five jurisdictions within TEP service territory • Multiple gatherings of all affected AHJs
18
Program Implementation • Renewables Team – Program Hub – Point of Contact for customers, alliance contractors, TEP depts
• Partnerships with contractors and suppliers – Alliance Contractors – Site Visit, Design, Permits, Install • Physical and IT Security Clearance – REC Solar – Module Supplier • Providing modules for degradation chamber and test yard – Fronius – Inverter Supplier • Collaborating with communications team – test inverters installed!
19
Available Materials • Program Brochure • Customer Program Proposal • Agreement Terms and Conditions – including….
– Assignment Form – for sale of the home – Notice of Licensing Agreement – recorded in land records • Final Design / Authorization to Proceed
• Installer RFP Documents – SoW, MSA • Interconnection Standard – EC-1340 • Process Flowcharts
• Frequently Asked Questions • Tariff 20
Contact Information • Carmine Tilghman – Program Architect – [email protected]
• Justin Orkney – Technical Development – [email protected]
• Sam Molina Jr. – Business Development – [email protected] 21
2
Presentation Overview • State of Utility in “competitive” marketplace – Problem – Solution
• TEP Residential Solar Program – Value Propositions
– Example of Average – Contract Key Points / FAQs – Program Process & Documents
– Road Traveled – Timeline 3
The Electric Utility “Problem” • Renewable Portfolio Standard (RPS) – Requires 4.5% of electric sales to come from renewable Distributed Generation (DG) by 2025 – For TEP, this will be roughly 425,000,000 kWh annually of ‘behind the meter’ generation – ~20 MW of residential solar installs each year – ~15 MW of commercial installs annually
4
Tucson Electric Power’s Solution • TEP Owned Residential Solar Program – 2015 REST Plan - Approved December 18th, 2014
– Initial Pilot - $10 million budget, up to 600 homes – ~3.5MW residential solar
– A new customer choice from TEP that offers long-term price stability and greater flexibility!
5
Value to Utility • Reduce impact of cost-shift to non-solar customers • System connected to TEP grid on utility side of meter • Incorporated into distribution management system • Maintain visibility in community as leading energy provider • First significant step away from volumetric rate design • Retention of customers • Mitigation of lost revenue – Residential Solar Tariff
6
TEP Owned Residential Solar Tariff • Available to ALL TEP homeowners in good standing • Based on previous 12 months total usage – creates a “price per installed kW” – $16.50/month per kW
• Energy price fixed for up to 25 years – adjuster at +/- 15% usage
• $250 processing fee once system is complete (covers admin) • Regulatory Out – no fee or penalty to exit program and remove system if ACC changes rate 7
Value to Customer •
Price security and usage flexibility with solar tariff
•
TEP owns, operates, and maintains system at no cost
•
Local solar installer support – design and install system
•
No FICO credit score restrictions
•
Easily transferrable to new home-owners
•
No large, out-of-pocket expense
•
TEP is a 120 year old, stable, reliable community partner
•
Consumer protections afforded through ACC
8
Example
Average residential usage on standard rate Previous 12 months usage: 11,414 kWh - $117.50/month
New Solar Fixed Rate
New Total - Solar Fixed Rate + Taxes
New solar fixed rate: $99.17 - Fixed for up to 25 years New total monthly payment: $111.18 9
Price Security
$99.17 + taxes - Month to month, up to 25 years… 10
Usage Flexibility (+/- 15%) 2921
2556
2191
1826
1460
1095
730
365
0
15,000 kWH
+15% 12,500 kWH
Contracted Usage 10,000 kWH
Annual Usage
-15% 7,500 kWH
Solar payment will remain fixed if your annual usage remains within this +/- 15% range
5,000 kWH 2,500 kWH 0 kWH 1
2
3
4
5
6
7
8
Year in Program
• Contracted usage = 11,414 kWH • +15% upper limit = 13,126 kWH • -15% lower target = 9,702 kWH 11
9
10
11
Contract Key Points • Not a lease – utilizes licensing agreement • 25 years – Stays with property • Buy-out option after year 6 • Exit fee option • Easily transferrable during sale of home • TEP owns, operates, maintains and insures system • Customer responsible for standard roof maintenance
• Regulatory Out 12
Customer Process Overview • Apply Online & Qualify • Site Visit – System Design • Sign Contract & Authorization to Proceed • System Permitting & Material Lists • Installation & Inspection • Interconnection & Commissioning • TEP Acceptance
• Begin New Rate and Pay $250 Processing Fee 13
Contract Workflow
14
Installation Workflow
15
Customer Documents • Program Brochure • Customer Program Proposal • Agreement Terms and Conditions – including…. – Assignment Form – for sale of the home – Notice of Licensing Agreement – recorded in land records • Final Design / Authorization to Proceed • System Manual
16
Road to Implementation • • • • • • • • • • • 17
Legal documents – Customer Contract, Installer SOW, Vendor MSA Installer RFP - Selected three Alliance Contractors (ACs) Vendor RFP – PV Modules (REC) and Inverters (Fronius) Internal program procedures IT reconfigurations for: billing, work management, GIS, website… New interconnection standard Training: Customer Service, ACs, Meter Crews.. Communication and integration strategy Long-term geo-targeting strategy Customer Experience – process and marketing AHJ collaboration & education
Road to Implementation Over 20 TEP departments directly impacted • Weekly internal status meetings and countless sub-team meetings Three Alliance Solar Contractors • Weekly meetings: trainings & collaboration Five jurisdictions within TEP service territory • Multiple gatherings of all affected AHJs
18
Program Implementation • Renewables Team – Program Hub – Point of Contact for customers, alliance contractors, TEP depts
• Partnerships with contractors and suppliers – Alliance Contractors – Site Visit, Design, Permits, Install • Physical and IT Security Clearance – REC Solar – Module Supplier • Providing modules for degradation chamber and test yard – Fronius – Inverter Supplier • Collaborating with communications team – test inverters installed!
19
Available Materials • Program Brochure • Customer Program Proposal • Agreement Terms and Conditions – including….
– Assignment Form – for sale of the home – Notice of Licensing Agreement – recorded in land records • Final Design / Authorization to Proceed
• Installer RFP Documents – SoW, MSA • Interconnection Standard – EC-1340 • Process Flowcharts
• Frequently Asked Questions • Tariff 20
Contact Information • Carmine Tilghman – Program Architect – [email protected]
• Justin Orkney – Technical Development – [email protected]
• Sam Molina Jr. – Business Development – [email protected] 21
