1.
Agenda
Solar Photovoltaic
System Implementation and Requirements
March 2015
1
North Central Texas
Council of Governments
www.jacobs.com
worldwide
Introductions
• Welcome / Presenter
Introductions / COG –
Jacobs
• Goal of Presentation “Overview of Solar PV
system Financial Incentives
and Comparison of Financial
Approaches”
• Audience Polls
Solar PV Financial Evaluation
• Presentation Sections:
–
–
–
–
–
Introduction
Current and Historical PV System Costs
Rebates and Incentives
PPAs, Leases, Direct Ownership
Open Discussion/Questions
Solar PV Financial Evaluation
• 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
Solar PV Financial Evaluation
• Current and Historical PV System Costs per Watt
Solar PV Financial Evaluation
• Rebates and
Incentives
–
–
–
–
Federal Tax Credits
State Credits
Oncor Rebates
Accelerated
Depreciation
Solar PV Financial Evaluation
• PV Rebates & Incentives:
–
–
–
–
State and Utility Solar Programs available
30% Federal Tax Credit
Accelerated Depreciation
REC’s ($.02/kWh)
Solar PV Rebates and Incentives
State/
Territ
ory
Category
Policy/Incentive
Type
Qualified Energy Conservation Bonds (QECBs)
US
Financial
Incentive
Loan Program
Denton Municipal Electric - GreenSense Energy
Efficiency Rebate Program
TX
Financial
Incentive
Rebate Program
Business Energy Investment Tax Credit (ITC)
US
Financial
Incentive
Corporate Tax
Credit
Farmers Electric Cooperative Residential/Agricultural Energy Efficiency Rebate
Program
TX
Financial
Incentive
Rebate Program
Tribal Energy Program Grant
US
Financial
Incentive
Grant Program
Residential Renewable Energy Tax Credit
US
Financial
Incentive
Personal Tax Credit
Residential Energy Conservation Subsidy Exclusion
(Personal)
US
Financial
Incentive
Personal Tax
Exemption
Renewable Energy Systems Property Tax Exemption
TX
Financial
Incentive
Property Tax
Incentive
Modified Accelerated Cost-Recovery System
(MACRS)
US
Financial
Incentive
Corporate
Depreciation
USDA - Rural Energy for America Program (REAP)
Grants
US
Financial
Incentive
Grant Program
USDA - Rural Energy for America Program (REAP)
Loan Guarantees
US
Financial
Incentive
Loan Program
FHA PowerSaver Loan Program
US
Financial
Incentive
Loan Program
USDA - High Energy Cost Grant Program
US
Financial
Incentive
Grant Program
Name
Texas
Incentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Solar PV Rebates and Incentives
State/
Territ
ory
Category
Policy/Incentive
Type
U.S. Department of Energy - Loan Guarantee
Program
US
Financial
Incentive
Loan Program
El Paso Electric Company - Solar PV Pilot Program
TX
Financial
Incentive
Rebate Program
City of Plano - Smart Energy Loan Program
TX
Financial
Incentive
Loan Program
City of Sunset Valley - PV Rebate Program
TX
Financial
Incentive
Rebate Program
City of Houston - Property Tax Abatement for Green
Commercial Buildings
TX
Financial
Incentive
Property Tax
Incentive
Residential Energy Conservation Subsidy Exclusion
(Corporate)
US
Financial
Incentive
Corporate Tax
Exemption
Energy-Efficient Mortgages
US
Financial
Incentive
Loan Program
Oncor Electric Delivery - Commercial and Industrial
Rebate Program
TX
Financial
Incentive
Rebate Program
CoServ - Solar Energy Rebate
TX
Financial
Incentive
Rebate Program
Oncor Electric Delivery - Solar Photovoltaic
Standard Offer Program
TX
Financial
Incentive
Rebate Program
City of San Marcos - Distributed Generation Rebate
Program
TX
Financial
Incentive
Rebate Program
Xcel Energy - Residential and Hard-to-Reach
Standard Offer Program
TX
Financial
Incentive
Rebate Program
Austin Energy - Residential Solar Loan Program
TX
Financial
Incentive
Loan Program
Name
Texas
Incentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Solar PV Rebates and Incentives
State
/
Territ
ory
Category
Policy/Incentive
Type
TX
Financial
Incentive
Rebate Program
CPS Energy - Solar PV Rebate Program
TX
Financial
Incentive
Rebate Program
Guadalupe Valley Electric Cooperative Renewable Energy Rebates
TX
Financial
Incentive
Rebate Program
LoanSTAR Revolving Loan Program
TX
Financial
Incentive
Loan Program
Solar and Wind Energy Device Franchise Tax
Deduction
TX
Financial
Incentive
Corporate Tax
Deduction
Solar and Wind Energy Business Franchise Tax
Exemption
TX
Financial
Incentive
Industry
Recruitment/Suppo
rt
Austin Energy - Residential Solar PV Rebate
Program
TX
Financial
Incentive
Rebate Program
AEP Texas Central Company - SMART Source
Solar PV Rebate Program
TX
Financial
Incentive
Rebate Program
AEP Texas North Company - SMART Source Solar
PV Rebate Program
TX
Financial
Incentive
Rebate Program
Austin Energy - Commercial Solar PV Incentive
Program
TX
Financial
Incentive
PerformanceBased Incentive
Clean Renewable Energy Bonds (CREBs)
US
Financial
Incentive
Loan Program
Name
Denton Municipal Electric - GreenSense Solar
Rebate Program
Texas
Incentives/Policies for Renewables & Efficiency
Financial Incentives
DSIREUSA.org
Solar PV Rebates and Incentives
• PV Financing – Owner Purchased:
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–
–
–
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)
Solar PV Rebates and Incentives
• 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 (nontaxable) entities
– PPA is typically for PV systems 250 kW and larger
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• PV Financing – PPA Comparison
Solar PV Rebates and Incentives
• 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
Solar PV Rebates and Incentives
• 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
Solar PV Rebates and Incentives
• PV Financing:
– 7 year buyout of PPA or “Flip”
– Operations budget versus Capitol Improvement budget
Questions / Discussion
31
© Copyright
March 2015 Jacobs
www.jacobs.com | worldwide
DFW Airport PV Economics
March 31, 2015
Jerry R. Dennis, CEM, CEP
Energy Manager
NCTCOG Solar Energy System Training – March 31, 2015
Agenda
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
Introduction
ADE Office Building
ADE PV Array Installation
2012 Economics With and Without Subsidies
Today’s Economics
Conclusion
Airport Development & Engineering (ADE)
NCTCOG Solar Energy System Training – March 31, 2015
Introductions
 Jerry R. Dennis, CEM, CEP
 Energy Manager
 Dallas / Fort Worth International Airport
 2000 to Present
 TXU Energy (regulated electric utility)
 1980 to 2000
NCTCOG Solar Energy System Training – March 31, 2015
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
NCTCOG Solar Energy System Training – March 31, 2015
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
NCTCOG Solar Energy System Training – March 31, 2015
2012 PV Economics (With and Without Subsidies)
 Installation Cost
 $1,134,226
 ARRA Grant (funded through SECO)
 $922,322
 Oncor Incentive
 $201,712
 PV Array Savings
 Produces, On Average, 25%
of Building’s Energy Needs
 270,000 kWh Annually
 Average Annual Savings
 $18,000
 DFW Airport Contribution
 $10,191
Simple Payback With Subsidies - $10,191 / $18,000 = 7 months
Simple Payback Without Subsidies - $1,134,226 / $18,000 = 63
years
NCTCOG Solar Energy System Training – March 31, 2015
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
NCTCOG Solar Energy System Training – March 31, 2015
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)
NCTCOG Solar Energy System Training – March 31, 2015
Environmental Benefits
DFW Airport’s Solar PV Array Website:
http://texas.kiosk-view.com/dfw-airport
NCTCOG Solar Energy System Training – March 31, 2015
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.