Solar Photovoltaic · Austin Energy - Residential Solar Loan Program TX Financial Incentive Loan...

Agenda

1

Solar Photovoltaic1. System Implementation and Requirements

March 2015

www.jacobs.com worldwideNorth Central Texas

Council of Governments

• Welcome / Presenter

Introductions / COG –

Jacobs

• Goal of Presentation -

“Overview of Solar PV

system Financial Incentives

and Comparison of Financial

Approaches”

• Audience Polls

Introductions

Solar PV Financial Evaluation

• Presentation Sections:

– Introduction

– Current and Historical PV System Costs

– Rebates and Incentives

– PPAs, Leases, Direct Ownership

– Open Discussion/Questions


• Current and Historical PV System Costs per Watt

– PV System cost per watt for Residential and Commercial

• System size and complexity impact cost

– Small system = Higher cost/watt

– Utility scale system (10+ MW) = lowest cost/watt

– Complex system = Higher cost/watt

– Carport Canopy systems = highest cost (added structure and footings)

• Utility energy rates & solar growth

– High Utility rates (CA) results in fast PV growth

– Low Utility rates (FL) results in sluggish PV growth

• PV Cost Trends over time…

– As PV reaches par w/ Utility rates (incl. incentives), PV growth increases


• Current and Historical PV System Costs per Watt


• Rebates and

Incentives

– Federal Tax Credits

– State Credits

– Oncor Rebates

– Accelerated

Depreciation


• PV Rebates & Incentives:

– State and Utility Solar Programs available

– 30% Federal Tax Credit

– Accelerated Depreciation

– REC’s ($.02/kWh)

Solar PV Rebates and Incentives

Name

State/

Territ

ory

CategoryPolicy/Incentive

Type

Qualified Energy Conservation Bonds (QECBs) USFinancial

IncentiveLoan Program

Denton Municipal Electric - GreenSense Energy

Efficiency Rebate ProgramTX

Financial

IncentiveRebate Program

Business Energy Investment Tax Credit (ITC) USFinancial

Incentive

Corporate Tax

Credit

Farmers Electric Cooperative -

Residential/Agricultural Energy Efficiency Rebate

Program

TXFinancial


Tribal Energy Program Grant USFinancial

IncentiveGrant Program

Residential Renewable Energy Tax Credit USFinancial

IncentivePersonal Tax Credit

Residential Energy Conservation Subsidy Exclusion

(Personal)US

Financial

Incentive

Personal Tax

Exemption

Renewable Energy Systems Property Tax Exemption TXFinancial

Incentive

Property Tax

Incentive

Modified Accelerated Cost-Recovery System

(MACRS)US

Financial

Incentive

Corporate

Depreciation

USDA - Rural Energy for America Program (REAP)

GrantsUS

Financial


USDA - Rural Energy for America Program (REAP)

Loan GuaranteesUS

Financial


FHA PowerSaver Loan Program USFinancial


USDA - High Energy Cost Grant Program USFinancial


TexasIncentives/Policies for Renewables & Efficiency

Financial Incentives

DSIREUSA.org

http://programs.dsireusa.org/system/program/detail/3098













http://www.dsireusa.org/





DSIREUSA.org

Name

State/

Territ

ory


Type

U.S. Department of Energy - Loan Guarantee

ProgramUS

Financial


El Paso Electric Company - Solar PV Pilot Program TXFinancial


City of Plano - Smart Energy Loan Program TXFinancial


City of Sunset Valley - PV Rebate Program TXFinancial


City of Houston - Property Tax Abatement for Green

Commercial BuildingsTX

Financial

Incentive

Property Tax

Incentive

Residential Energy Conservation Subsidy Exclusion

(Corporate)US

Financial

Incentive

Corporate Tax

Exemption

Energy-Efficient Mortgages USFinancial


Oncor Electric Delivery - Commercial and Industrial

Rebate ProgramTX

Financial


CoServ - Solar Energy Rebate TXFinancial


Oncor Electric Delivery - Solar Photovoltaic

Standard Offer ProgramTX

Financial


City of San Marcos - Distributed Generation Rebate

ProgramTX

Financial


Xcel Energy - Residential and Hard-to-Reach

Standard Offer ProgramTX

Financial


Austin Energy - Residential Solar Loan Program TXFinancial




















DSIREUSA.org

Name

State

/

Territ

ory


Type

Denton Municipal Electric - GreenSense Solar

Rebate ProgramTX

Financial


CPS Energy - Solar PV Rebate Program TXFinancial


Guadalupe Valley Electric Cooperative -

Renewable Energy RebatesTX

Financial


LoanSTAR Revolving Loan Program TXFinancial


Solar and Wind Energy Device Franchise Tax

DeductionTX

Financial

Incentive

Corporate Tax

Deduction

Solar and Wind Energy Business Franchise Tax

ExemptionTX

Financial

Incentive

Industry

Recruitment/Suppo

rt

Austin Energy - Residential Solar PV Rebate

ProgramTX

Financial


AEP Texas Central Company - SMART Source

Solar PV Rebate ProgramTX

Financial


AEP Texas North Company - SMART Source Solar

PV Rebate ProgramTX

Financial


Austin Energy - Commercial Solar PV Incentive

ProgramTX

Financial

Incentive

Performance-

Based Incentive

Clean Renewable Energy Bonds (CREBs) USFinancial
















• PV Financing – Owner Purchased:

– Requires capital to finance

– Owner responsible for O&M

– Owner monetizes rebates/incentives

– Generally most advantageous to private (taxable)

entities

– Not a common approach for Government entities due to

lack of taxable benefits (unless PV grants are available)


• PV Financing – Power Purchase Agreement

(PPA):

– Agreement w/ LLC to own, operate, finance, install and

maintain PV system

– Facility owner agrees to purchase all power generated

at a fixed or escalating rate for a fixed period (typ 20

yrs)

– Requires no capital investment

– Generally most advantageous to Government (non-

taxable) entities

– PPA is typically for PV systems 250 kW and larger


• PV Financing – PPA Comparison


• PPA Comparison:

– Pros:

• No capital is required by the Client

• Client can focus on its mission instead of energy production

• No system maintenance by Client

• Client only pays for actual power produced

• Cost of power is generally slightly lower than utility rate

• Rebates and Incentives are monetized into the PPA

– Cons:

• Overall cost of energy savings are minimal

• Limited control of the PV system on site

• Monthly electric bills to PPA provider and utility


• PV Financing – Lease:

– Requires down payment

– Typical 15 year term

– System owner (3rd party) monetizes rebates/incentives

– Lease payment is fixed rate not tied to the power

generated

– Common for government entities where PPA is not

allowed

– System owner is responsible for O&M


• PV Financing:

– 7 year buyout of PPA or “Flip”

– Operations budget versus Capitol Improvement budget

www.jacobs.com | worldwide31 March 2015 Jacobs© Copyright

Questions / Discussion

DFW Airport PV Economics

March 31, 2015

Jerry R. Dennis, CEM, CEP

Energy Manager

NCTCOG Solar Energy System Training – March 31, 2015

Agenda

Introduction

ADE Office Building

ADE PV Array Installation

2012 Economics With and Without Subsidies

Today’s Economics

Conclusion

Airport Development & Engineering (ADE)


Introductions

Jerry R. Dennis, CEM, CEP

Energy Manager

Dallas / Fort Worth International Airport

2000 to Present

TXU Energy (regulated electric utility)

1980 to 2000


ADE Office Building

Constructed in 2000

Size – 41,344 sq.ft.

Use – Office Building for

Airport Staff

Energy Usage Before PV

Install

244 kW Peak Demand

1,128,930 kWh Annually


ADE PV Array Installation

Install Date

January 2012

737 PV Panels

Two Inverters

100 kW

50 kW

Total Production Capacity

186 kW (DC)

150 kW (AC)

Installation Cost

$1,134,226


2012 PV Economics (With and Without Subsidies)

Installation Cost

$1,134,226

ARRA Grant (funded through SECO)

$922,322

Oncor Incentive

$201,712

DFW Airport Contribution

$10,191

PV Array Savings

Produces, On Average, 25%

of Building’s Energy Needs

270,000 kWh Annually

Average Annual Savings

$18,000

Simple Payback With Subsidies - $10,191 / $18,000 = 7 months

Simple Payback Without Subsidies - $1,134,226 / $18,000 = 63

years


Today’s Economic (Without Subsidies)

Installation Cost

Based on $3 per Watt

150 kW x $3 = $450,000

PV Array Savings

Produces, On Average, 25%

of Building’s Energy Needs

270,000 kWh

Average Annual Savings

$18,000

Simple Payback Without Subsidies - $450,000 / $18,000 = 25

years


March 30, 2015 @ 10:28 am

March Savings: 17,123 kWh x $0.067 = $1,147.24

Lifetime Savings: 864,287 x $0.067 = $57,907.23 (~3 years)


Environmental Benefits

DFW Airport’s Solar PV Array Website:

http://texas.kiosk-view.com/dfw-airport

http://texas.kiosk-view.com/dfw-airport


Conclusion

Solar PV is a perfect fit for the Texas environment.

When we are most in need of additional generation (hot summer days),

Solar PV is at its maximum output.

The technology is reliable and continues to improve.

The initial cost of the technology is dropping rapidly.

Utilities, installers, and code inspectors are becoming more familiar

with the technology.

Without significant subsidies, the technology is not competitive with

grid power prices.

Solar Photovoltaic · Austin Energy - Residential Solar Loan Program TX Financial Incentive Loan...

Documents

Transcript of Solar Photovoltaic · Austin Energy - Residential Solar Loan Program TX Financial Incentive Loan...