Solar System Project Overview
Presented by:
Brandon Robertson, Town Manager
April 29, 2014
Why Solar? RFP Process Overview
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2008 – AMS roof plumbed for solar as part of the renovation
project
2011 – Avon Energy Plan identifies solar as a viable renewable
option to go green, reduce operating costs, and achieve goals.
Summer/Fall 2013 – Town/BOE staff and ACEC met with CCM
to discuss Solar RFP
Fall 2013 – Murtha Cullina engaged to manage RFP process
January 31, 2014 – 9 proposals received / reviewed by Murtha
February/March 2014 – Town/BOE interview three firms;
SolarCity selected as preferred vendor
April 2014 – seek approvals from elected boards to proceed
What is a PPA?
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Power Purchase Agreements (PPA) are long-term contracts to
buy electricity at a predetermined rate
Developer absorbs the costs of proposal, design, construction,
operation, and maintenance of the system
Customer typically realizes energy cost savings over the length
of the contract
Customer stays attached to the electric grid for the balance of
their power needs
Key PPA Terms
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15 year PPA to match expected life of roofs and roof
warranties
Suitability of roofs is certified by a third party structural
engineer (at SolarCity’s expense)
Zero maintenance costs
Performance risk stays with developer
Multiple buy out options
– Option to have systems removed by SolarCity at no cost at
end of 15 year PPA terms
– Option to purchase systems from SolarCity at fair market
value to capture residual value in out years
What is a PPA? (cont.)
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Avon’s Comprehensive Energy Management Plan provides
the following explanation of Power Purchase Agreements as
vehicles to achieve energy savings:
“While not a capital project funding mechanism, per se, power
purchase agreements (“PPAs”) are being increasingly used by
public and private entities to secure renewable energy, and
most typically solar generated electricity, though PPAs are also
executed for wind and landfill gas projects.
The Town would execute a PPA with a private company that
would purchase, install, own, maintain and operate a
renewable energy project at a Town facility. The Town would
agree to purchase the power produced by the project at an
agreed upon price over some number.”
Why use a PPA?
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Zero upfront costs
Hedge against future electricity costs
No operations & maintenance costs
No performance risk
No increase in insurance
Typically immediate energy cost savings
Third party monitors and maintains the system
Benefits
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Cost avoidance
– Estimated at $350,000+ over 15 years
– Approximately $23,000 / year
– Projects at AHS, AMS, and DPW
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Meet Energy Goals
– 15% more efficient by 2015 (on a square foot basis)
– 20% Carbon Footprint reduction by 2020
– Integrate real technology (solar) into curriculum
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Energy Diversification
– Geothermal system at AFPL
– Conversion from oil to natural gas across Town/BOE sites
– Energy efficiency upgrades
– Behavior modification
Recommendation
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SolarCity
– Largest solar installer in the United States
– +$4.0 billion in available project financing
– Significant Connecticut municipal experience
– Proposed installation at AMS, AHS (new roof sections) and
DPW
– Competitive ZREC bid ($85) and PPA price (7.4 to 10.2
cents per kwh over the life of the PPA)
Cost Avoidance
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AHS
– Total savings estimated at $171,622 or $11,441/year
– Year 1 production = 362,700 kwh
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AMS
– Total savings estimated at $129,191 or $$8,613/year
– Year 1 production = 200,200 kwh
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DPW
– Total savings estimated at $51,782 or $3,452/year
– Year 1 production = 98,982 kwh
Please refer to SolarCity Savings Estimates in packets for details.
AHS System Renderings
What’s Next?
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April 3, 2014
TC Meeting to grant easements for all sites and authorize TM to
sign DPW PPA
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April 22, 2014
BOE Meeting to grant easements for school signs and authorize
Superintendent to sign AHS/AMS PPAs
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Late April 2014
ZREC RFP Released by CL&P
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June 2014 (TBD)
Project Bid Forms Due From Solar Developer &
Projects go before P&Z for Site Plan Amendment
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August 2014 (TBD)
Projects Selected by CL&P under ZREC Auction
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September 2014 (TBD)
Standard Contracts Executed for Projects by Solar Developers &
Performance Assurance due from Solar Developers within five
days after Standard Contract Execution
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October 2014 (TBD)
CL&P files Standard Contracts with PURA
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December 2014 (TBD)
PURA Approves Projects
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2015 (TBD)
Project construction