Shenandoah Sunshine: Harves0ng Solar Power in the Valley Building Power for Solar in Virginia: EMU and W&L Solar PV Projects Climate Action
Alliance of the Valley
Feb 28, 2012
Anthony E. Smith
CEO and President
Secure Futures Value Innova1on in the Valley Capital-­‐free investment Maintenance free installa1on Guaranteed performance and reliability Hedge against electricity price spikes and uncertainty •  Thought leadership and brand value •
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66% of students weigh sustainability; and 23% strongly weigh sustainability in their college choices hHp://www.aashe.org/blog/how-­‐do-­‐campus-­‐sustainability-­‐ini1a1ves-­‐affect-­‐college-­‐admissions Two projects one year apart: from 104 kW to 444 kW Annualized Green Valley Metrics Leveraging Public/Private Finance through PPAs or Lease Plus… •  PPA or lease-­‐plus financing: the single most effecDve means to privately finance solar PV in the United States –  Eastern Mennonite University (EMU) solar PV project – commissioned Nov 3, 2010 – 104 kW –  Washington and Lee University (W&L) solar PV project – commissioned December 29, 2011 – 444 kW •  PPAs and lease-­‐plus leverage Investment Tax Credits and other tax benefits to customers (up to 63% savings) –  Leveraging federal investment tax credits (ITCs) to finance projects Leases to tax-­‐exempt en11es do not qualify for ITCs or for accelerated deprecia1on –  Lease plus structures achieve the benefits of PPAs EMU Solar Project -­‐ 2010 •  104 kW •  Largest privately financed solar PV project in Virginia •  2% of EMU’s annual electricity requirements •  Output exceeded guarantees
by over 9% in first year
http://www.emu.edu/solar
EMU signs first Solar PPA in Virginia with Secure Futures •  20 Year Power
Purchase Agreement
•  EMU pre-paid 10 years
of electricity based on
guaranteed output
•  PPA signed on
September 23, 2010
•  System completed
4 ½ weeks later
EMU Solar Project Milestones Seeking bank financing (3 mos) Overcoming u1lity opposi1on (6 mos) Securing local tax exemp1on (5 mos) Subtotal: 14 months vs •  Installing VA’s largest solar PV project in 2010 (4 1/2 weeks) •  Dedicated 8 ½ weeks aier PPA signed •
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EMU Solar PV Project on Dedica1on Event Nov 15, 2010 60 days after signing PPA….
Our Teaming Partners W&L Project 2011 Lewis Hall Roof Array 1,016 SunPower 320 W
panels
325 kW Total
Parking Deck Solar Canopy Array W&L Go Solar video
540 Sanyo HIT 220 W panels
119 kW total
Steel canopy locally
engineered and fabricated
Results: Local Investment Johann Zimmerman, structural engineer from Harrisonburg, VA,
designed the parking deck steel support structure.
Harman Construction, Inc. of Harrisonburg, VA served as
general contractor for installing the parking deck structure.
Liphart Steel in Verona, VA, an employee-owned company,
fabricated the steel and erected the steel structure.
The Sanyo solar panels on the parking deck solar canopy, and
the SunPower panels on Lewis Hall, are certified Americanmade products.
All contractors on the project paid wages at or above prevailing
(union scale) levels.
W&L Steel Solar Canopy Steelworkers completed installation in less than half the time
As we install the W&L solar project… •  Cease and desist: leHer(s) from Dominion •  Issue: selling electricity to W&L •  SCC Pe11on # PUE-­‐2011-­‐00107 hHp://docket.scc.virginia.gov •  Pe11oners: Secure Futures and W&L University From li1ga1on to legisla1on… •  Withdrew pe11on -­‐ without recovering legal fees; •  Converted PPA into a lease -­‐ gave up significant tax benefits while maintaining same economic value for customer; •  Sought legisla1ve solu1on (HB 129) –  Sponsored by Delegate Kilgore (passed House 97-­‐0) and –  Tabled in the Senate Commerce CommiHee Our public policy collaborators… Virginia Chapter
Print Media Editorial Boards
Washington Post Op-Ed
Staunton News Leader
Richmond Times-Dispatch
Solar Industry Media
Local Television
What we’ve learned about the barriers to Solar PV in VA Economics: Among the lowest electricity rates in the country Local taxes: M&T taxes eat as much as 20-­‐30% of the economic benefits; RegulaDons: •  Green tariff rules to keep 3rd party renewable generators out; •  No mandatory RPS requirements for u1li1es to use renewable energy; •  Residen1al solar standby charges eat 25-­‐30% of the benefits; Regulated Electrical Monopolies •  Ac1ve, organized and profitable opposi1on to distributed solar in VA •  Rewarded for investments in pre WWII hydro and wind •  Deep-­‐seated poli1cal influence •  Unlimited legal and lobbying resources Solar Photovoltaic (PV) Technology Solar PV technology for commercial use has been in use for more than 50 years with many PV installa1ons s1ll in constant use since the 1970’s. The know-how…
Private financing for
distributed solar
requires proactive public policy
877-358-3008
info@securefutures.us