Download Case Study: Padre Dam

Solar Case Studies for Tax Exempt Entities
Presented By:
Richard Raeke
Director of Project Finance
Borrego Solar Systems, Inc.
www.borregosolar.com
Financing Options for Tax Exempt Entities
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Solar is expensive at roughly $7,000/kilowatt (or $0.45/kWh)
•
On a typical solar project, the federal tax incentives pay for more than
1/3, local or state incentive programs pay for 1/3 and the last 1/3
comes from debt or owner equity.
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As tax-exempt entities, universities cannot receive the federal
Investment Tax Credit/Grant and bonus depreciation on a purchase.
•
Tax Exempt Entities have to look to more creative structures, such as
PPAs, in order to monetize the tax credits.
•
Without monetizing the tax credit, a customer would have to look to
another funding source, such as grants or donations to make the
system economically viable.
A Power Purchase Agreement (PPA)
•
Long term agreement to purchase electricity from a third party
financier (PPA Provider) – 20 year terms, predictable cost increases
•
No equipment to purchase, no capital investment
•
No annual maintenance expense, no asset to manage
•
Customers purchase only the power produced by the system
State Solar Programs
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Solar PV works in states with viable incentive programs
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Massachusetts – Commonwealth Solar Initiative
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California – Production Based Incentive (PBI)
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New Jersey – SREC program
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Others include Connecticut, New York, Pennsylvania,
Arizona, Colorado, New Mexico, Oregon and Hawaii
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The ARRA
•
Stay tuned – incentive programs are evolving.
Case Study: Boston Community Capital
•
Boston Community Capital received $10 million from Massachusetts
through the Green Affordable Housing Initiative
•
BCC had mission of creating the most economical solution for putting
on solar on affordable housing statewide
•
BCC issued an RFP for an installation/financing partner
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Chose Borrego to help identify best sites and install systems
•
Letters sent to dozens of affordable housing owners across state
•
Based on responses, Borrego began evaluating sites
•
BCC created a PPA provider – Solar Energy Advantage Program
•
Five initial sites – Cambridge, Charlestown, Webster and Pittsfield
•
Second round of installations to follow this year
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: PPA Solution
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Boston Community Capital PPA
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100 KW
•
Sharp 175 modules
•
SMA inverters
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Uni Rac ULA racking
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15 degree tilt – SSW
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Solar on 6 buildings
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Reduce common load kWh by 60%
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20 year $.165 / kWh PPA
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Annual 1.25% escalator
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms
•
100 KW
•
Sharp 175 modules
•
SMA inverters
•
Uni Rac ULA racking
•
15 degree tilt - SSW
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Roof Mounts and Racking
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Roof Mounts and Racking
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Roof Mounts and Racking
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Electrical Conduit Installation
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Module Installation
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Module Installation
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Inverter Installation
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Completed Arrays
Generate Change. Choose Solar.
Case Study: Cambridge Housing Authority
Washington Elms: Completed Arrays
Generate Change. Choose Solar.
Case Study: UCSD
• Borrego won RFP issued
by UCSD
• Partnered with Solar Power
Partners to provide financing
• Borrego signs EPC contract
with SPP
• SPP signs PPA with UCSD
• Roughly $0.15/kWh
• 20 year contract
• UCSD keeps RECs
• UCSD provides insurance
Case Study: UCSD
Site Evaluation
• Customer preferences
• Electricity consumption
• Cost per kWh
• Available space
• Meter location
• Trenching
• Conduit runs
Generate Change. Choose Solar.
Case Study: UCSD
Prefabrication of arrays
Generate Change. Choose Solar.
Case Study: UCSD
Carport Construction
Crane day
Generate Change. Choose Solar.
Case Study: UCSD
Carport construction
Generate Change. Choose Solar.
Case Study: UCSD
Generate Change. Choose Solar.
Case Study: UCSD
Generate Change. Choose Solar.
Case Study: Padre Dam Municipal Water District
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862 kW of thin film over three sites and on 15-foot tall carports
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546 day sales process
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Borrego awarded RFP
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Expensive installation due to carports
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Borrego signed PPA and Site-Lease Agreement with Padre Dam
•
Section 48 ITC faced expiration system needed completion by Dec. 31
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Borrego assigned PPA to a third-party at quoted price
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EPC negotiations finished mid-September 2008
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Construction finished and system interconnected mid-December
•
Bonus depreciation preserved
Generate Change. Choose Solar.
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Case Study: Padre Dam
www.borregosolar.com
Solar Case Studies
for
Tax-Exempt Entities
Richard Raeke
Director of Project Finance
Borrego Solar Systems, Inc.
[email protected]
(510) 849-5414
www.borregosolar.com
www.borregosolar.com