TheSolarEndowment:ASolarDeploymentRoadmapforUSCollegesandUniversities

JaneCowan,MarketResearchCoordinatorAdamMehr,CertificateProgramCoordinator

MidwestRenewableEnergyAssociation

MREAOverview

• REEducationandDemonstration• 3000Midwestmembers• 27th AnnualEnergyFair• NetZeroCampus• MidwestGrowSolarPartnership• TheSolarEndowment• AccreditedCertificateTraining

OurStrategy

1. CampusDeploymentTeams2. SolarTechnicalAssistanceTeam(STAT)3. AppliedCourseinCampusPVDevelopment4. PVDesignandSalesCertificateandInternship5. PVDevelopmentRoadmaps6. SolarUniversityNetwork(SUN)Delegations

TheoryofChange

1. Issuevisibility=learningmoments

2. Workinginvestmentmodelsexist

3. Valuableaspartofadiversifiedportfolio

4. Donorandalumnisupport

Origination,Development&Financing

Development FinancingOperations&Maintenance

(O&M)

Engineering,Procurement&Construction

(EPC)

Origination

SolarProjectDevelopmentSteps

Where Our Efforts Will Focus

OurFocus

SiteSelection EconomicsAnalysis

Permitting&InterconnectionQualification

FeasibilityLevelLayout/

Design

UtilitySolarProject&BuildingEnergyAnalysis

ProjectOriginationSteps

Origination

Origination

Local,StateandFederal

Permitting

Interconnectionapplication,studyprocess

andagreements

Stakeholdereducationandbuy-intotheProject/s

LandDevelopment

Studies(geotech,

environmental,survey,etc.)

ProjectDevelopmentSteps

Development

ConfirmationofFinancingSources/PathtoSuccess

Development

FinancialStructuringAnalysis/Validation

ProcuringSolarFinancingIndustry

UtilizingAllDevelopmentStageDocumentation

FinancingCompany

Negotiations

ValidationofOrigination

AssumptionsforFinancialModeling

ProjectFinanceSteps

Financing

Financing

1. StudentEngagementStrategy2. StakeholderMapping3. Legal,Regulatory,andApprovals4. CampusSitePrioritization,Assessment,and

FinancialModeling5. ContractorSolicitation/Selection6. FinancialConsiderationsandInvestment

Opportunities

PVDevelopmentRoadmaps

1. Siteassessmenttechmentornetwork

2. Legalandregulatoryanalysis3. Campusstakeholder

engagement4. Projectfinancialanalysisand

design5. PVinvestmentvalue/risk

SolarTechnicalAssistanceTeam(STAT)

1. WorkingRoadmapsforEachPilotUniversity2. NewCampusRoadmapDevelopment3. CampusPVDevelopmentCoursefreeandopento

publicAugust2016www.solarendowment.org/courses

4. PVDSCertificateandInternships

Progress

CampusDeploymentTeams

• On-siteteamsmadeupofdifferentcampusstakeholders• Pilotcampuses– ledbygraduatestudent&studentteams• Skills:

• ProjectManagement• Engineering• SiteLayout&FeasibilityDesign• Interconnection• Permitting&LandDevelopment• EnergyAnalysis• BusinessandFinance• Legal

• Studentincentives:• MREAcourses,certificates,andpotentialinternships• Professionaldevelopmentandexperience

AppliedCourseinCampusPV

• Guidesuniversitiesthroughroadmapping process• Hostsworkplans,templates,guides,andwebinarsdesignedaroundeighttopicareas

• Stillpostingresources;allpilotandnewuniversitycampuseshaveaccess

• ComingSoon!!!

Updates:www.solarendowment.org/courses

• BasicPhotovoltaics– PV101

• PVSiteAssessorTraining– PV201

• PVSystemDesign– PV202

• PVSalesandFinance– PV203

OtherMREATrainingCourses

www.solarendowment.org

Certificates

CredentialingPathways

Internships

SiteAssessorInternshipü Pre-screeningü Leadgenerationü Siteassessment

DesignandSalesInternshipü Siteassessmentü Engineering/designü Proposaldevelopment

• TwoCampuses• TwinCitiesCampus:46students• DuluthCampus:6student

• Graduatestudentlead• Fiveteams

1. SiteAssessment– TwinCities2. SiteAssessment– Duluth3. LiDAR Group4. FinanceGroup5. CampusOutreachGroup

• RenewableEnergyPathways– GrandChallengeCurriculum

CampusTeams:UniversityofMinnesota

• Goal:Knowyouraudiences,getaheadoftheprocess,gathersupport,andpublicize

• Identifyandanalyzeperspectivesofkeyoffices,positions,committees,andindividuals

• Learnwhatyoudon’tknowyoudon’tknow• Keystakeholdergroups(notalllisted):

StakeholderMapping

• EnergyOffice• MasterPlanners• InvestmentOffice• SustainabilityOffice• FacultyandStudent

Organizations• LocalUtility

• CampusLandOwners• UniversityDepartments

– academicprogramming

• UtilityRegulatoryCommission

• CampusLeaders

FullPurdueandISURoadmapsatwww.solarendowment.org/resources

StakeholderMapping:Purdue

• Goal:Identifyrules,regulations,procedures,andotherriskfactorsthatinfluencedesign,siting,andfinancingofaPVprojectoncampusesandassociationproperties

• Includes(notalllisted):• Utilityinterconnectionrequirementsandfees• Permittingandinspectionrequirementsandfees• Planning/zoningrestrictions• Statepoliciesandincentives• Utilitytariffsandincentives• Campusrulesandprocedures• Equipmentwarrantees,O&M,andsafetyrequirements• Liens,restrictions,andagreementsre:propertyuse

ApprovalsandLegal/RegulatoryConsiderations

• Goal:IdentifyanddescribeprioritysitesforPVdeploymentoncampusandassociatedproperties

• Includes(notalllisted):• Generalsitedescriptionsandmaps• Currentsiteuseanddevelopmentplans• Descriptionofelectricalinfrastructurewithdetailsonpotentialinterconnectionsites

• Analysisofelectricityratesassociatedwithinterconnection• Systemsizeestimate• Estimationofsystemproduction• Costestimates

OnCampusPVSitePrioritization

TableOfContents

ExecutiveSummary………………………………………………..ClientContactInformation……………………………………..ClientProfile…………………………………………………………..ClientEnergyProfile……………………………………………….UtilityProfile…………………………………………………………..SiteProfile………………………………………………………………AHJProfile……………………………………………………………..AvailableIncentives/Grants/Taxcredits………………SiteVisitDataCollectionForms………………………………

PVArray– Option#1………………………………………………PVArray– Option#2………………………………………………PVProjectSummaryandRecommendations………….

SiteAssessmentTemplateandGuidance

SitePrioritization:Purdue

• Goal:Definefinancialstructuresandmodelperformanceofproposedprojects

• Tools:• MREAPVFinanceTool• NRELSystemAdvisorModel(sam.nrel.gov)• NRELRenewableEnergyPlanning&Optimization(www.nrel.gov/tech_deployment/tools_universities.html)

• KeyMetrics(notalllisted):• Electricitycostwithand

withoutREsystem• Electricitysavings• Netpresentvalue• Paybackperiod

• Levelized costofenergy• Internalrateofreturn• Utilityinflationrates• Installationcosts• O&Mcosts

SystemFinancialAnalysis

LeaseLand/RoofOnly

BuySolarElectricityOnly

SolarasanInvestmentforUniversityEndowment

Fund

EnergyGenerationAssetforOperations

BuySolarRECsontheOpenMarketOnly

Easiest(&LowestValue)toMostComplex(&HighestValue)

Third party owned-solar project financing structures

First party owned-solar project financing

structures

*First big decision is ownership decision and what level of complexity and risk the culture will allow for.

ProjectFinancialDesign:OnandOffCampus

1. On-Site:DirectOwnership• Loadreduction• UtilityPowerPurchaseAgreement(PPA)

2. On-Site:Partnership• Third-PartyPPA• DonorLease• LandLease

3. Off-Site• DirectPPA(De-regulated)• VirtualPPA/ ContractforDifferences(Regulated)• SharedSolarSubscription• ProjectEquityInvestor

UniversitySolarProcurementModels

1. Complexityofcampusenergypurchasesandcontracts

2. Densityofuniversitygovernanceanddecision-making:treasurerandcomptroller vs operationsvsinvestments

3. TaxEquityPartneraddscomplexity/riskforon-campusinstallations

4. Directequityinvestmentsbyendowmenthaveyettooccur(toourknowledge)

ChallengestoGreaterAdoption

• Goal:Identifyandpursuefinancialstructuresthatmaximizebenefitsandmeetuniversityrequirements

• Options• Landlease:Purdue,UofM,andVCU• ThirdpartyPPA:MREA,ISU,MS&T,UofM• DonorPPA:LutherCollege• Sharedsolar:UofM,MREA• UtilityPartnerships:MS&T,Purdue,VCU• Large-ScalePPA:ISU• VirtualPPA:All• EquityInvestment:TBD

ProjectFinancialDesign:OnandOffCampus

Goal:Developmodelandrecommendationsforcompetitiveprocurementthatmeetuniversityrequirementsandsatisfycontractorneeds

• Engagestakeholderstodefineobjectivesandoutcomes• DevelopmodelRFI,RFQ,RFP• Definecriteriaforreviewandselection• GuidesandTools

• https://www.epa.gov/greenpower/gpp-webinar-solar-procurement-templates-and-tools-higher-education

UniversitySolarProcurement

MidwestRenewableEnergyAssociation

www.midwestrenew.org

JaneCowanMarketResearchCoordinator,MREA

651-789-5719janec@midwestrenew.org

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Thanks!

AdamMehrCertificateProgramCoordinator,MREA

651-789-5732adam@midwestrenew.org