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HomeMy WebLinkAbout2012-03-14-SLC-Solar Install Opts Town of Lexington Solar Installation Options March 14, 2012 Agenda •Solar Industry Update –Overview –Solar Incentives –Solar Energy Performance & Economics •Town of Lexington Electricity Use & Budget •Potential Solar Sites •Cash Flow Models & Financial Analysis Sustainable Lexington Committee Presentation2 Solar Industry Overview •Rapid growth •Lower costs •Higher efficiency •Higher reliability •Longer life Sustainable Lexington Committee Presentation Solar Incentives •RPS Solar Carve Out Program –Solar Renewable Energy Certificates (SRECs) –10 year production incentive –Most recent price closed at $530 / MWh •Commonwealth Solar Rebates –Not available for systems over 10kW •30% Federal Tax Credit •Accelerated & Bonus Depreciation –6 year MACRS plus 50% bonus depreciation Sustainable Lexington Committee Presentation4 SREC Overview •Production-based incentive –1 certificate for each MWh produced –First 10 years of operation •SRECs sold at market price •DOER operates clearinghouse auction @ $300 / MWh floor price •Cap on SREC price set by 10 year ACP rate schedule •Utilities purchase SRECs from system owners to avoid payment of ACP Sustainable Lexington Committee Presentation PV Solar Energy Assumptions •Total system cost dropping rapidly –$3.50 to $4.00 / watt for 100 kW systems –$3.00 to $3.75 / watt for MW size systems •30+ year expected lifespan –25 year 80% performance warranty –0.3% actual annual power decline •Operations & Maintenance costs –Annual cost of $22 / kW •Inverter reliability and costs improving –$0.25 / watt @ 15 years Sustainable Lexington Committee Presentation Solar Energy Performance •Ground mount system (no shade) –250 kW system size / acre –1 MW system generates 1,171 MWh / year –180solar azimuth, 15fixed tilt angle •Flat roof mounted system (no shade) –7 kW system size / 1,000 square feet* –Generates ~8.2 MWh / year *Usable area Sustainable Lexington Committee Presentation Town Electricity Usage •Municipal Buildings –2,500,000 kWh per year –$480,000 budget for 2012 –2.2 MW solar needed to meet demand •School Buildings –6,700,000 kWh per year –$1,280,000 budget for 2012 –5.7 MW solar needed to meet demand Sustainable Lexington Committee Presentation Potential Solar Sites •DPW Hadley Building & Garage •Hartwell Avenue •School Buildings Sustainable Lexington Committee Presentation Hadley Building – Solar Potential •Hadley is an outstanding solar site –Large white roof (56,000 ftusable space) 2 –164& 195azimuth –390 kW array –455,000 kWh / yr •Electricity demand –403,000 kWh / yr •Hadley could be our first net positive building! Sustainable Lexington Committee Presentation PPA Solar Economics – Hadley Sustainable Lexington Committee Presentation Solar Economics – Hadley Town Financed Sustainable Lexington Committee Presentation Hartwell Avenue Site Excellent Solar Site 12 Solar Acres NSTAR Substation 3 MW Installation 3.5M kWh / Year Year 1 Income $1.75M SRECs $330K Savings Positive Cash Flow* $10,700,000 *20 Years Sustainable Lexington Committee Presentation Hartwell Avenue PPA Sustainable Lexington Committee Presentation Hartwell Ave Installation Town Financed Sustainable Lexington Committee Presentation 3MW Environmental Benefits Over the next 20 years a 3MW solar energy system will generate 67,017,243 kWh of clean electricity. This is the equivalent of Your town’s PV system will This is the equivalent of preserving save a total of eliminating 8,304 acres 4,289,103 lbs. 5,252,333 miles of eastern mountain forests. of COemissions each yearof driving each year 2 Sustainable Lexington Committee Presentation Municipal & School Buildings 2.7 MW Total 47% of school’s electricity 1 st Year Income $1.5M SRECs $292K savings Positive Cash Flow* $8,500,000 *20 Years Sustainable Lexington Committee Presentation Municipal Rooftops - PPA Sustainable Lexington Committee Presentation Municipal Rooftops – Town Financed Sustainable Lexington Committee Presentation Solar Energy Conclusion •Solar Power potential: –Can supply 67% of Town’s electricity –Cash Flow Positive from day 1 –Lock in electricity rates for 20+ years –Positive cash flow $19 million over 20 years –First net positive buildings –Huge environmental benefits •160 million pounds of COover 20 years 2 •Equivalent to taking 830 cars off the road Sustainable Lexington Committee Presentation