Download CEAP Preliminary Work Plan

Action: RE SolarPV
ACTION PLAN DETAIL SHEET
Action Full Name: Use Solar Photovoltaic (PV) Energy
Date: _10-05-10____ Work Group: _RCI/ESD__
Recommended Action (actionable/measureable/concrete):
Installation of solar PV on both residential and commercial/industrial/government
buildings to achieve carbon neutrality. Additionally, the development of a utility scale
solar PV farm is recommended.
Action Overview
Interrelationships:
 Actions from other work groups similar to this Action: None
 Other work groups which could contribute to this Action:
 Related Actions from other groups which this Action could contribute to:
Goal/Effect: Achieve Reduction Target of all buildings/residences being carbon neutral by 2050, taking into
account the energy savings accomplished by other CEAP actions. Installation of solar PV systems offsets the
remaining energy consumption to achieve carbon neutrality. A utility-scale solar farm will also serve to increase
the renewable energy generation capacity of our community.
Strategies: (high level activities/steps/tasks to implement the Action)
Install solar PV to offset all remaining energy consumption not accounted for through energy efficiency and
installation of Geoexchange or solar thermal systems. Achieving the target will require utility-scale installations
(i.e. solar farms or community solar gardens) , or distributed arrays (i.e. solar leasing).
This Action aims to capture the vast renewable solar resources of La Plata County in order to reduce the GHG
intensive electricity used by LPEA members (based on Tri-State’s generation mix, ~2% of LPEA power supply is
from renewable sources).
A study on renewable energy generation feasibility in Colorado conducted by the Governor’s Energy Office ranks
La Plata County as having the potential to generate approximately 6,300 to 7,300 kWh/meter2/day of solar power.
It may require more effort and incentives to attract capital investment than higher ranking sites; nonetheless, the
technology is viable in this location.
Basic implementation strategies:

Need an entity to sponsor/fund the project to capture incentives for renewable energy generation projects.
Could be a community group, non-profit, LPEA, government, etc.

Local government incentives for permits/land use/taxes and/or other appropriate measures

Long-term agreement on renewable energy incentives (such as power purchase agreement, RECs, Feed-inTariff, tax credit, etc.)

Utility and/or government mechanisms to promote renewable energy generation
Coverage: All residences with appropriate solar gain and other built square footage in La Plata County; potential
solar farm locations
Timing: 2012 to 2050 – the target time period for achieving carbon neutrality.
Roles and Responsibilities
Responsibility (who/what agency would need to implement this Action):
 Education regarding the cost/benefit of solar PV systems could be tied into 4CORE’s community-wide
outreach and education programming.
 Some solar PV installations would be the responsibility of individual homeowners or building owners,
however in order to reach our GHG reduction targets, local government entities and/or utility providers
Page 1 of 4
File: RE_SolarPV.pdf
Action: RE SolarPV
ACTION PLAN DETAIL SHEET
Action Full Name: Use Solar Photovoltaic (PV) Energy
would have to coordinate efforts towards creating larger utility-scale solar arrays. These facilities may
vary in size and electricity production depending on location and technology, however the main feature
will be using a large area to set up solar arrays or concentrated solar power to generate electricity to sell to
the grid. There are scenarios in which this Action may be successfully implemented, which depend on
several factors, such as site and transmission, investors, renewable energy mechanisms (such as utility
policies, regulatory conditions, or tax credits), technology costs, etc. The Action may be implemented by
a local government, a community organization or a private entity. Colorado passed State House Bill 1342
in June 2010 which facilitates implementation of community ‘solar gardens’.
Coordination/Support required to implement Action Plan:
Entity / Function
Name
Phone
Email
4CORE
Aileen Tracy
(970) 259-1916
[email protected]
Shaw Solar
Solarworks!
John Shaw
Derek
Wadsworth
Mark
Schwantes
Ken Francis
(970) 759-1227
(970) 382-2624
[email protected]
Derek@durangosolar
works.com
[email protected]
op
francis_k@fortlewis.
edu
LPEA
FLC
Date contacted to discuss
feasibility of action plan
and response
Contacted regarding outreach
efforts 02-22-10. Would also
be the initial contact to local
governments and utilities
regarding large scale
renewable installations.
Implementation Opportunities, Barriers and Strategies
Educational (Training/Awareness) Strategies: Clearly communicate the cost/benefit of solar PV systems,
including available federal, state and local rebates and incentives available. Two renewable installers interviewed
regarding this action mentioned that 90-100% of their business occurs when state rebates are available in addition
to federal rebates.
Implementation Mechanisms: (Law/Policy/Code Changes; Incentives (Economic, Payments, Market, nonmonetary); Livelihood and Business Opportunities; Other (explain). Provide specifics):
1. Business Opportunity: All renewable installation creates business for system installers. Solar leasing is a
business opportunity in which a third party provides renewable energy generation services to households
and businesses. The solar lessor orchestrates installation and receives available rebates in order to
discount the generation rate, then charges a monthly leasing fee to households and businesses interested in
buying into the system.
2. Incentives: Current incentives include a 30% federal rebate (no price cap) on the installation (materials
and labor) of all renewable systems. LPEA provides a rebate for installation of Solar PV offering a fixed
amount-per-kilowatt. Rebate amounts start at $700/kW in 2010, incrementally reduced to $100/kW by
2019. State rebates are available periodically through the Governor’s Energy Office. Current amounts are
up to $1.50/watt for the first 3 kW of Solar PV.
(http://rechargecolorado.com/index.php/residential_resources/geo_rebate_overview/)
3. Senator Udall’s SUN Act would expand the Federal tax credit for residential solar installations to off-site
installations. This change in policy could potentially effect the structure and availability of solar farms or
community solar gardens. (http://markudall.senate.gov/?p=press_release&id=528)
4. An effective feed-in-tariff policy would increase sharply the number of large renewable installations.
Potential Barriers to Consensus and Suggested Alternative Solutions: See below.
Page 2 of 4
File: RE_SolarPV.pdf
Action: RE SolarPV
ACTION PLAN DETAIL SHEET
Action Full Name: Use Solar Photovoltaic (PV) Energy
Potential Implementation Barriers and Suggestions to Overcome Barriers: While La Plata County has
valuable solar resources, implementation will also require significant capital investment as well as land
acquisition/leasing, utility connection and agreements, environmental compliance, and other negotiations either
by a government entity, community group or private entity that pursues the project. It is anticipated that local,
state and/or federal government and utility incentives will facilitate the process.
As indicated in the section “Educational Strategies,” rebate availability is a successful incentive for renewable
installation throughout the community. However, as indicated by the incrementally decreasing LPEA rebate,
supplies are finite and appear to be planned only as a holdover until communities and markets evolve to find a
more sustainable source of renewable power incentives, such as feed-in-tariffs.
This is proven technology that can be adapted to various financing structures, energy generation capacities, site
characteristics and other considerations. However, strong local support, permitting, market mechanisms affecting
GHG emissions and renewable energy generation, long-term planning, and, most of all, capital investment are
necessary to implement the measure
Once a business plan is developed and the financing and investment is available, it is anticipated that a solar farm
could be constructed and operational within a year. Land use permitting by the County and/or PUC will affect
time frame.
Suggested Funding Mechanism: The cost of small-scale solar PV installations will fall on individual property
owners who are able to utilize the aforementioned rebates. There are various options available for financing a
utility-scale solar farm:
1. La Plata County residents could create an investment structure to locally fund and profit from the project,
as has been done in other communities.
2. A local government could manage the project.
3. LPEA could potentially be the owner/operator on behalf of its members.
4. Or, the more traditional structure would involve an investment from a business venture. Close
coordination with LPEA will be necessary; it may also require land use review from the County and/or
Public Utility Commission.
The costs and financial viability will be determined by the amount of energy produced in combination with the
economic incentives for producing renewable energy (be it RECs, tax credits, feed-in-tariff or other mechanism).
Regulation of GHG at a local, state, regional and/or federal level, as is anticipated, will significantly affect
financial models for this measure. Also, technological advances may justify re-evaluation of costs in subsequent
years to see if the return on investment period has been reduced. The Colorado Governors Energy Office (GEO)
and the USDA may have grants and loans available that could be used as potential funding sources
Collateral Benefits: Community-wide self-sufficiency through local energy production, job creation, lower longterm electricity costs for the community and increased local awareness and education on solar power potential.
Community-owned solar farms would allow for individuals to invest in solar without tying it to their residence,
thus solving issues of location, historic building limitations, shady rooftops, non-property owners, HOA rules, etc.
Precedent(s) of Successful Implementation
Example/Story of Successful Precedent of Implementation: A community-owned solar-garden has been
developed in Carbondale, CO, providing proof that it can be successfully implemented in this region.
http://www.ases.org/index.php?option=com_content&view=article&id=1204&Itemid=23
Berkeley, CA will pay the full cost of PV systems for homeowners, who agree to pay it back over 20 years
through a property tax assessment. The city can borrow at lower interest rates than homeowners could, and
savings on utility bills pay for the property tax increase.
For more information, see www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/10/26/MNAIT0DQO.DTL
Page 3 of 4
File: RE_SolarPV.pdf
Action: RE SolarPV
ACTION PLAN DETAIL SHEET
Action Full Name: Use Solar Photovoltaic (PV) Energy
Cambridge, MA installed a 28 kW PV system on the city hall annex, providing about 10% of the electric needs of
the building.
For more information, see http://oikos.com/library/showcase/cambridge/index.html
More Resources:
National Renewable Energy Lab Solar
Radiation Maps
National Renewable Energy Center PVWATTS Calculator
The Customer's Guide to Solar Power Purchase
Agreements
Database of State and Federal Renewable Energy
Incentives
Go Solar California - Good General Resource
Documentation of CAPPA Inputs (Dick White 10/31/10)
 kW of PV installed
o To date, there has been 823 kW of grid-tied renewables installed in La Plata County, almost all solar.
Off-grid systems would add some to this.
o The above figure includes 357 kW installed through about August of this year. To get a lower limit
for 2015, assume that this is the rate of installation from 2010 through 2015, yielding 2608 kW.
Round to 2600 kW.
o Britt Bassett’s FIT presentation on October 7 formulated a scenario in which the installation rate
would rise to 2.3 MW/year. If this started in 2012, the result would an additional 9.2 MW in 20122015. LPEA reported 466 kW through 2009; figuring 400 kW in 2010 and 600 kW in 2011, there
would be 1.5 MW before the FIT kicked in, for a total of 10.7 MW.
o The resulting mid-range value would be 6.6 MW in 2015.
o Extrapolating to 2020 yields 4393 kW ≈ 4.4 MW by 2020 under the Low estimate, 22.2 MW under
the High estimate, with a Mid-range of 13.3 MW.
 Price of electricity. Standard.
 Sun hours per day. 5 (RCI: http://www.solarcraft.net/sun-hours-map.htm (winter peak)
 Cost of PV installation. High, $7500/kW, Low = High -30% federal -$1.50 GEO = $3750, round down for
convenience, giving Medium = $5600. This is reasonable for 2015. 2020 is likely to be cheaper, especially
for the higher implementation estimates. Assume Low drops to $1900.
Evaluation Weights
 Capital Cost
 O&M Cost
 ROI
 Timeframe
 Gov Staff Time
 Gov Control
1
5
1
2
5
2
very costly
very low maintenance
long payback
ambiguous; some is happening, but scale up takes years
none; private sector
“cheerleading”
Page 4 of 4
File: RE_SolarPV.pdf