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Community Solar. Community Solar Objectives. Increasing solar access where there is none Developing decentralized green power generation Creating of community models that can be replicated across Maryland Making solar more affordable Providing technical support and assistance
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Community Solar Objectives • Increasing solar access where there is none • Developing decentralized green power generation • Creating of community models that can be replicated across Maryland • Making solar more affordable • Providing technical support and assistance • Information-sharing with other community groups and faith-based organizations • Reducing greenhouse gas emissions especially from fossil fuel-powered electric generating plants • Expanding the Maryland solar network
Why is there not more solar? • According to the US Department of Energy as many as 90% of Americans are favorably disposed to solar, however, More than 80% of American families cannot install solar on their homes for a variety of reasons including: Shade, orientation, roofing complications, historic district restrictions, multi-family building ownership complications, and system costs.
Three community solar approaches • Stand alone community-organized, financed and situated solar installations • Bulk purchasing by groups of families for solar installations on multiple properties • Virtual net metering solar installations
Two Solar Technologies • Photovoltaics (PV) electric generation Can be located on any site – roof mounted, pole mounted in a field or parking lot. • Thermal (hot water ) Can be used to preheat water wherever there is a hot water need 365 days of the year – restaurants, laundromats, car washes, hospitals.
Key Players University Park Community Solar LLC (Community organization, financier, and owner of the solar array) University Park Church of the Brethren (Host site and property owner) Standard Solar Inc. (Solar installer)
Organizing Documents • Prospectus • Operating agreement (between LLC members) • Power purchase agreement (between the LLC and the host site) • Installation contract (between the LLC and the installer) • Subscription agreement & investor questionnaire
The Project Financials 35 investors provided on average about $4,000.00 • The cost of the solar installation was $133,500.00 • The LLC should break even on its investment in about 6-7 years • Over the 20-year contract member investors should receive about a 7-8% return on their investment • The Church of the Brethren is buying solar electricity from the LLC at about 13% below what it would pay PEPCO • In December of 2010 the LLC received a US Treasury check of $39,995.00 or 30% as part of the Federal stimulus bill • During this first year of operation our LLC sold solar renewable energy certificates (SRECs) for about $300.00 apiece.
Financials – Year 1 • Cost of installation $133,500.00 • Operating expenses year 1 $2,300.00 (insurance, property tax, and bookkeeping) • Electricity sales to the Church 20,954 kWh @$0.13/kWh = $2,724.00 • Estimated income from the sale of excess electricity to PEPCO 7080 kWh @ $0.096 = $680.00 per the Maryland net metering law.
4-Year Totals • Estimated kwhrs 104,444 • Actual kwhrs 110,400 • Difference 5.7% • Generation vs Demand 132% • PEPCO netmetering payment $2097.00 • SRECs sold 97 • Sale price (ave. $181.00) $17,607.00
State and Federal Assistance • Maryland Energy Administration demonstration grant of $10,400.00 • Federal stimulus program grant of $39,995.00
Community Solar Model Difficulties • Finding a host site • Working within the State and Federal securities laws • Need for lots of volunteer hours on the part of the community organizing group
Things that can make community solar work • Using bulk purchasing approach when possible • Reducing operation/maintenance costs (bringing accounting in-house, for example) • Shortening the project period time from 20 years to 10 or less • Selling system to host to help realize an acceptable profit for investors • Covering insurance costs by host (property owner) • Finding other funding sources • Looking for special situations, laws, regulations that may make a community project more feasible (solar thermal has more valuable SRECs than PV; there is a limited number of Maryland suburban areas where SRECs can be sold in the much more lucrative DC market • Seeking a few larger investors to increase capital for hybrid financing
University Park Elementary School – A 65 KW project was completed in August of 2013
University Park Elementary School PV Installation • System funded by grant from US DOE for $250,000.00 • The town of University Park owns the system and the electric is used to power the town hall and other town electrical needs. • The school leases roof space to the town for a fee and shares the sale of SRECs with the town.
University Park Elementary School • Is an ideal site with more than an acre of unshaded roof space • The school is the center of our community with our children attending classes there, it is where our town council meets, and numerous community functions held there annually • The solar installation will provide education opportunities for the students to learn about renewable energy and the environment.
Bulk Purchasing • The bulk purchase is based on the same principal as buying at Costco. By buying a larger number of panels, a group of home owners can get a lower price on the solar equipment and save on the total cost of installation. • This works because the solar installer does not have to advertise, find leads, or spend sales time. Savings can be passed on to the customer (single family homeowners or community group) that is providing a number of homes sites in close proximity to each other. In this approach all work in union but each owns his/her system separately.
Economics of Bulk Purchasing • Cost to install 3.0 kW system before incentives$13,500 • MD Clean Energy Grant ($1,000/system [-$1,000] • Federal tax credit (30% of system cost) [-$3,300] • Solar Renewable Energy Credit Upfront Payment for 3.0 kW system [-$1,050] • Bulk Purchase Discount (~20% of cost) [-$2,500] • Total of going solar cost after incentives $5,650
Green Jobs Potential • Bulk purchasing efforts by groups of homeowners or small to midsize solar projects financed by local groups and installed on churches, schools, county and municipal buildings, warehouses, and multi-family residential buildings offer business and employment opportunities to the Maryland economy that at this time remain untapped. These local jobs cannot be shipped overseas.
Franklin’s Solar Thermal System Specifics • Cost - $34,200.00 • A new LLC was formed called “Community Solar Thermal LLC”, is comprised of 30 members, and has raised more than $30,000.00. • MD State and the American Biophysical Society grants equal $6.500.00 • The solar thermal system will be installed in the Spring of 2015. • Over 20 years, water pre-heated by the solar collectors will save approximately $26,000.00 in gas utilities. • During that same time period, the system will reduce greenhouse gas production by 185 tons.
Farm produce is transported to city schools, neighborhoods, and farmer markets
“Solar shed” under construction in 2012 will be the site of the PV system
The Bigger Picture Climate change, strange weather patterns, record warming trends, sea level rise, impacts on our Bay & coastlines. Safe upper limit of CO2 in the global atmosphere: 350 ppm Current level: 400+ ppm and rising There must be a new urgency to act, to move us away from our dependency on fossil fuels – natural gas, coal, and oil Dual purpose buildings – Making our homes, churches, schools, offices, warehouses, not only places of shelter and habitation but also renewable energy generators
The Solar Potential Nationally • Undeveloped or underdeveloped land as a place to generate all of our country’s electrical power needs of over 2 million megawatts: • Superhighway right of ways (4 million miles) If 10% were solarized we would generate 100% of our total energy needs. • Commercial parking lots (600,000 acres) If 10% were covered with solar panels we would produce 1% of our power needs. • High voltage transmission line right of ways (155,000 miles /2.8 million acres) If solar photovoltaics were placed on 10% of these right of ways, we would be able to provide 4% of the nation’s power.
One stretch of Maryland’s 2000 miles of power line R.O.W. near Sandy Spring
For more information • Contact: • David Brosch, • davidcbrosch@comcast.net • 301-779-3168 • 240-888-1225 (c)
