Office for Capital Facilities

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1 Office fr Capital Facilities Guidance Dcument May 2015 Phtvltaic Slar Prjects A resurce cntaining infrmatin related t the acquisitin f phtvltaic slar panels by state-perated campuses.

2 Phtvltaic Slar Prjects Cntents Attachments Intrductin 1. Prgram Opprtunity Ntices Prcurement Methds 2. Sample RFP Prcurement Prcess Pwer Purchase 3. Sample Pwer Purchase Agreement (PPA) Agreement Prcurement Prcess Installatin f State Owned Equipment 4. Sample Perfrmance Guarantee Agreement (PGA) Definitins Intrductin Installing slar phtvltaic (PV) systems n r near the campus has the ptential t significantly decrease the Surce Energy Use Intensity f the campus. Surce Energy Use Intensity is a leading industry indicatr fr measuring all energy use n a square ft basis. This measurement takes int accunt bth the energy use at the campus and the energy required t generate, transmit and distribute that energy frm where it is prduced t where it is used. This metric will be used t assess SUNY s cllective energy perfrmance and prgress against the Build Smart NY - Executive Order 88 (EO88) gal f decreasing energy Surce Energy Use Intensity by 20% by When cnsidering a PV system, the campus must cnsider several factrs, including, but nt limited t, the lcatin f the system, the supprt f the lcal utility prvider and the interactin the system will have with the utility grid. Campuses are encuraged t cntact SUNY s Energy Prcurement and Utility Regulatry Affairs Office when cnsidering the installatin f a PV system. Lcatin Des the campus have land that culd be used fr this purpse? Campuses can cnsider installing a PV system n campus prperty, n prperty wned by an affiliated rganizatin, r n prperty wned by a private entity. When a grund munted system is installed n campus prperty, the campus undertakes a lng-term cmmitment fr the use f the land. Whether the land is leased t a develper r the campus wns the system, the land will be cmmitted either fr the lease term r fr the life f the equipment, generally a perid f 20 t 35 years. Fr many campuses land is valuable and additinal land is nt easily acquired. The campus shuld cnsider its lng-term gals and anticipate what changes may ccur ver the year perid. When cnsidering a rf munted system, the rf warranty, maintenance and building accessibility must be cnsidered. Keep in mind that in many cases the installatin f slar panels n a rf may vid the existing rf warranty. When cnsidering affiliate prperty r private prperty, ther cnsideratins include prper leasing agreements as well as the relatinship f the prperty t the campus and the grid, as further described in the meters sectin belw. Utility Prvider Supprt Befre develping and releasing a frmal Request fr Prpsal fr a PV system, the utility prvider must be cntacted t verify that the gegraphic area being cnsidered fr a PV system is able t supprt an electricity generating system. Several factrs cntribute t the determinatin f whether the utility prvider and assciated infrastructure can supprt the installatin f an electricity generating system. It is als imprtant t determine whether r nt the gegraphic market can accept remte net metered Page 1 State University f New Yrk Office fr Capital Facilities

3 Phtvltaic Slar Prjects applicatins due t limitatins n the amunt f energy that can be put back n t the grid in a given gegraphic area, which is restricted t 3 t 6%. Once a utility has met its bligatin twards renewable installatins they are nt required t apprve any further applicatins. Campuses that purchase their electricity thrugh the Energy Buying Grup r thrugh NYPA must ensure that any electricity generating system installed des nt generate mre revenue r energy credits than the campus has in electricity r transmissin csts since the transmissin and delivery charges will be ffset by the credits frm the slar generatin. If the credits exceed the charges, the campus will build a credit surplus beynd their cntinuing expenditures. There is n mechanism t simply receive the credit back as cash. The Meter The PV system s relatinship t the campus main meter must be determined. Depending n the nature f the prject it might be set up as a behind the meter, net metered r remte net metered prject. Behind the Meter: an electricity generating system that is nt intercnnected with the utility grid. A behind the meter system is usually fr a single building r facility, with the purpse f reducing the amunt f electricity purchased fr the building, ptentially taking the facility "ff the grid" fr sme prtin f its electricity demand. Net Metered: an electricity generating system that is cnnected t the utility grid and permits the campus t sell t the utility any electricity generated that is in excess f what the campus uses. A net meter effectively spins backwards, allwing a measured, reverse flw f electricity t the utility grid. This usually requires specialized meters and intercnnectin equipment that is an additinal expense t the campus. A net metered system requires prir apprval by the utility and an perating agreement called a Standardized Intercnnectin Requirement (SIR). Remte Net Metered: an electricity generating system that is nt physically lcated r cnnected t the entity s main utility meters. The accunt allws excess generatin t be sld t the utility with the credits, either in mnetary frm r cmmdity units, t be used against expenses incurred n ther utility accunts. A remte net metered prject cannt exceed 2 MW. The site f the remte net metered systems meter is called a hst which accumulates credit fr all excess generatin frm that slar system. If there are mre credits earned than that site will use, the campus can designate up t 10 ther campus electricity accunts t share in the credits generated. These accunts are called the satellite accunts. T set up a remte net metered system, there must be sme actual campus use n that site but a single lighting system wuld suffice. This system must als be in the same gegraphic zne as the utility service territry, and the same New Yrk State Independent System Operatr (NYISO) zne as any ther accunts that will be used t receive credits earned by the hst accunt. All f the accunts must be in the same name and use the same crprate identificatin number. Each utility is allwed t set up additinal rules as t the timing and methd f transferring the credit. The credits may be transferred in cmmdity frm, kilwatt hur generated t kilwatt hur delivered t the satellite meter, r in mnetary frm based n the credit price f the hst accunt generatin set by each utility. Similar t the mentin abve, if the credits utpace the expenditures n the accunt, the campus culd find itself with a large credit surplus that grws each mnth, and n way t use it r receive it as cash. This must be cnsidered and negtiated during the creatin f an agreement. Page 2 State University f New Yrk Office fr Capital Facilities

4 Phtvltaic Slar Prjects Prcurement Methds When cnsidering the acquisitin f a PV System, a campus can apprach the prcurement in ne f tw main ways: (1) as the installatin f state-wned equipment n state land; r (2) as a Pwer Purchase Agreement (PPA) accmpanied by a land lease. When cnsidering the acquisitin f a PV system, it is imprtant t engage campus cunsel early n in the prcess, particularly when a land lease r a PPA may be used. 1. The installatin f state-wned equipment invlves the campus purchase, wnership and peratin f the PV System. Depending n the nature f the installatin, the cntract may be handled as a cnstructin cntract r an equipment cntract. Slar PV systems are mst ften installed n campuses as grund penetrating systems, rf munted systems r parking lt canpies. 2. The Pwer Purchase Agreement (PPA) enables a campus t btain the benefits f a slar array withut an upfrnt capital investment r respnsibility fr the peratin and maintenance f the system. A PPA can gvern pwer purchases frm PV systems installed n state-wned prperty and n prperty wned by an affiliated rganizatin r private entity. Under a PPA, a third-party develper/cntractr develps, installs, wns and perates the PV System. The campus then purchases the pwer generated by the PV System frm the third-party under a Pwer Purchase Agreement. There are tw ways that a PPA may be used: (a) (b) The develper/cntractr develps, installs, wns and perates the system n statewned prperty and the campus buys the generated pwer under a PPA. The campus must lease the state-wned land t a develper as permitted by Energy Law 1, which allws a campus t enter int energy perfrmance cntracts fr up t 35 years, prvided that the term f the cntract des nt exceed the useful life f equipment. The develper/cntractr develps and installs the PV system n privately held land. The land may be miles away frm the campus, s lng as it is within the territry f the utility that serves the campus. The develper wns and perates the system and the campus buys the generated pwer under a PPA. This is a remte net metered prject. The campus must lease a prtin f the privately held land, and have a utility accunt assciated with that land held in the campus name in rder t implement remte net metering. Third-party develpers may have access t financial incentives such as tax incentives, r grant funding that is nt available directly t the campus. Fr example, NYSERDA prvides financial incentives fr the installatin f slar PV systems under the NY-Sun Incentive Prgram. Prcurement Prcess Pwer Purchase Agreement 1) Feasibility Study It is highly recmmended that a feasibility study be cnducted prir t entertaining a slar PV system acquisitin. A feasibility study wuld generally cntain a: Slar site analysis, including shading analysis, rientatin, and tilt f the ptential slar array. 1 Sectin 9-103(5) f NYS Energy Law enables the campus t lease state land necessary fr the cnstructin f facilities r the peratin f equipment prvided fr in an energy perfrmance cntract withut btaining grund lease legislatin. Page 3 State University f New Yrk Office fr Capital Facilities

5 Phtvltaic Slar Prjects Electrical system analysis, including an verview f the electrical systems ability t integrate the electrical utput f the PV system and the space available fr related equipment. (An electrical system analysis is nt needed fr remte net metered prjects.) Fr rftp installatins, a structural analysis, including identificatin f limitatins that may prhibit the structure frm supprting the weight f the PV system. Evaluate the financial viability f a Pwer Purchase Agreement vs. Ownership. Evaluate the financial impact f a behind the meter prject, where the electricity generated is used directly by the campus and is nt cnnected t the utility grid vs. remte net metered r net metered prjects that require intercnnectin with the utility grid. Slar PV systems n state-wned prperty can be established as behind the meter, net metered r remte net metered prjects. A slar PV prject n land wned by an affiliated rganizatin r private entity will always be a remte net metered prject. 2) Develp a Request fr Prpsal The campus must develp a Request fr Prpsal (RFP), advertise the prcurement, and evaluate respnsive prpsals frm respnsible vendrs under New Yrk law. The scpe f RFP must cver design, installatin, maintenance and wnership f the System. Awards will mst ften be determined n the basis f Best Value. A sample Request fr Prpsal dcument fr a slar PV installatin using NYSERDA funding is prvided as Attachment 2. These requirements are a starting pint fr develping a RFP fr n-site prjects nly. This is nt a standard template and is nt a template fr a remte net metered prject. Please cnsult campus cunsel when develping a RFP fr slar PV installatin. Als nte that any develper that assists in writing the technical requirements fr the RFP is excluded by law frm bidding n the prject. 3) Ntify the SUNY System Administratin Energy Management and Planning Office (if the campus is a member) The Energy Management and Planning Office prvides versight and purchases utilities fr SUNY. If yur campus is a member f the Energy Buying Grup it is imprtant that yu ntify Kathleen Slusher ( ) f any upcming slar PV installatins. The installatin f a slar PV system may impact the amunt f utilities needed by the campus. The Energy Management and Planning Office will need t accunt fr thse changes when purchasing utilities n behalf f the Energy Buying Grup. 4) Advertise An advertisement in the New Yrk State Cntract Reprter is required in accrdance with NYS Ecnmic Develpment Law 142. A sample advertisement fr a prject using NY-Sun Initiative funding thrugh NYSERDA is prvided in Attachment 1. 5) Frm a Selectin Cmmittee The RFP must define hw the prpsals will be evaluated and scred. The sample RFP prvided as Attachment 2 cntains a sample evaluatin criteria. Hwever, a campus might mdify and adapt thse evaluatin criteria t better fit a particular prject. If a campus anticipates a large number f respnses, it may be helpful t define a prcess fr creating a shrt list f cntractrs. This prcess shuld be defined in writing and placed in the prcurement recrd; it des nt need t be defined in the RFP. Befre issuing the RFP, the campus shuld identify the selectin cmmittee members and the selectin cmmittee chair. The cmmittee shuld cnsist f a minimum f three members wh are able t participate in the full selectin prcess. Althugh nt required, it is recmmended that Page 4 State University f New Yrk Office fr Capital Facilities

6 Phtvltaic Slar Prjects selectin cmmittees cnsist f fur r mre members. Each cmmittee member must adhere t the prcedures set frth in Prcurement Lbbying Prcedure Item #7552, and have n unauthrized cntact with cnsultants during the selectin perid. 6) Make a Selectin Based n the selectin criteria defined in the RFP the selectin cmmittee evaluates and selects a develper/cntractr. If interviews are held, each must be attended by all selectin cmmittee members. Any member that fails t participate in all interviews will nt be permitted t submit ratings fr purpses f determining the selected firm. Such member may, hwever, participate in Selectin Cmmittee meetings and discussins. 7) Assist the develper/cntractr in cmpleting the NYSERDA applicatin (if applicable) T access the financial incentives under the NY-Sun Incentive Prgram, a participating develper/cntractr submits an applicatin t NYSERDA, which identifies the campus as the custmer. With the campus assistance, the develper/cntractr cmpletes and submits the applicatin t NYSERDA. The applicatin will likely include the Prject applicatin frm, a site map/plan, phts, a ne r three-line drawing, a system utput and system lss analysis, utility bills, cpies f permits, and an envirnmental assessment. Incentives are paid directly t develper/cntractr, and must be applied in full t the cst f the slar PV system. Fr infrmatin related t the current Prgram Opprtunity Ntice please see Attachment 1 f this dcument, r refer t NYSERDA s website. 8) Execute a land lease with the develper/cntractr (if the system is n state-wned prperty) If the slar PV system is installed n state-wned prperty, a land lease is required either as part f the Pwer Purchase Agreement r as a stand-alne lease agreement. NYS Energy Law allws campuses t lease state land fr slar facilities withut btaining grund lease legislatin. Hwever, all real estate cntracts must be reviewed and apprved by bth the Attrney General and the Office f the State Cmptrller regardless f their value. 9) Execute a Pwer Purchase Agreement with the develper/cntractr The campus negtiates a Pwer Purchase Agreement (PPA) with the develper/cntractr wh is respnsible fr the design, installatin, and maintenance f the PV System. A sample PPA is prvided as Attachment 4. This dcument is an example and a starting pint fr develping a PPA; it is nt a standard template. Please cnsult campus cunsel when develping and negtiating a PPA fr slar PV installatin. It is highly recmmended that campuses engage their campus cunsel early n in this prcess. The PPA must be apprved by bth the Attrney General and the Office f the State Cmptrller because its value will exceed $250, Perfrmance Guarantee Agreement and Cntract Mnitring A perfrmance guarantee frm the develper/cntractr is required. This guarantee may be negtiated as part f the Pwer Purchase Agreement r it may be established as a separate agreement. If the campus is buying pwer and nt the system itself, a Perfrmance Guarantee Agreement (PGA) will guarantee that the system will generate a certain guaranteed kilwatt-hurs (kwh) ver the term f the agreement. The develper may insist n excluding r mdifying the terms f the agreement; negtiate any mdificatins t the terms with the assistance f yur campus cunsel. A sample Perfrmance Guarantee Agreement is prvided as Attachment 4. This dcument is an example, and a starting pint fr develping a PGA; it is nt a standard template. Please cnsult campus cunsel when develping and negtiating a PGA fr slar PV installatin. Page 5 State University f New Yrk Office fr Capital Facilities

7 Phtvltaic Slar Prjects If the cumulative Actual kwh generated by the System is less than the Guaranteed kwh the develper is required t prvide the campus with a refund check in accrdance with the guarantee agreement. 11) Slar PV Systems n prperty wned by affiliated rganizatins r private entities When the system is cnstructed ff-site n affiliated rganizatin r private land, the Develper enters int a lease with the affiliated rganizatin r private entity, r the Develper may be the landwner. The campus enters int a PPA with the Develper t purchase the pwer. Under any f these scenaris, the prject will be a remte net metered prject. Remte net metered prjects reduce an agency s surce energy use intensity and cntribute t the Gvernr s Executive Order 88 gals in the same way as an n-campus prject. They preserve pen space n campuses and require n feasibility studies f campus electric systems and n electrical upgrades t capital facilities, because remte net metering is strictly a system f mnetary credits. The electricity generated is sld t the utility. The utility measures and prices the electricity at current rates and applies a mnetary credit t the campus electric bill. T satisfy the requirements f the remte net metering statute, the system cannt exceed 2 MW in size and the campus must meet the fllwing requirements: 1. the campus must wn r lease the prperty upn which the generating facilities are sited, and the leased prperty must be within the same utility service territry as the campus; 2. the campus must establish a Hst electric accunt n the site; and 3. the campus must have at least sme respnsibility fr perating the system. These requirements can be met as fllws: 1. the campus may enter int a lease with the affiliated rganizatin r private entity fr a very small area, n larger than is needed t erect a utility ple with a light that cnsumes electricity; and 2. the campus establishes an accunt with the utility t receive electric service t the utility ple light. This is knwn as the Hst accunt. The Pwer Purchase Agreement must cntain a prvisin giving the campus c-peratinal respnsibility fr sme small aspect f the system peratin. Fr example, Purchaser will, frm time t time prvide management and technical expertise n the peratin f the generatin facilities. Alternatively, the campus may add an educatinal cmpnent and take respnsibility fr that aspect. Request fr Prpsal Cnsideratins Fr prjects t be built n land wned by affiliated rganizatins, the RFP must name the Lessr, attach a cpy f the mdel grund lease, and require the bidder t include a lease cmmitment letter frm Lessr with its bid. Fr prjects t be built n private land wned by utside entities, the RFP must require the bidder t dcument the size and lcatin f the prperty; prvide a cpy f the lease between Develper and Prperty Owner, r alternatively, prvide a lease cmmitment letter frm the Prperty Owner stating that if Develper wins the bid, Prperty Owner will enter int the lease. The RFP must state that the campus will have certain c-peratinal respnsibilities. Fr example: Page 6 State University f New Yrk Office fr Capital Facilities

8 Phtvltaic Slar Prjects Fr educatinal purpses, the successful bidder will crdinate with the cllege s Infrmatin Systems persnnel t prvide the equipment and services necessary t mnitr, analyze, and display histrical and live slar electricity generatin data. The data acquisitin system shall be designed fr turnkey, remte peratin. Data shall be transmitted via internet r telephne frm the site t a server managed by the cllege s Infrmatin Systems. Bidders shuld describe in their prpsals the equipment, services and regularly cllected data that wuld be made available t the cllege t meet this requirement. Any develper that assists in writing the technical requirements fr the RFP is excluded by law frm bidding n the prject. Pwer Purchase Agreement Cnsideratins The campus purchases the electricity generated under a PPA with the develper. The generated electricity is measured at the Hst accunt meter and supplied directly t the utility grid. The utility calculates the mnetary value f the electricity it receives frm the prject at the per kwh rate applicable t the Hst Accunt s service classificatin. Each mnth, the mnetary credit is first applied t the Hst accunt and the excess is applied t the campus ther electric accunts, knwn as satellite accunts. T satisfy the remte net metering statute, the PPA must include a de minimus c-peratinal respnsibility as described in the Request fr Prpsal Cnsideratins sectin abve. Prcurement Prcess Installatin f State-Owned Equipment The installatin f state wned equipment invlves the campus purchase, wnership and peratin f the PV System. Depending n the nature f the installatin, the cntract may be handled as a cnstructin cntract r an equipment cntract. Slar PV systems are mst ften installed n campuses as grund penetrating systems, rf munted systems r parking lt canpies. Campuses are respnsible fr ensuring cmpliance with all applicable NYS laws, rules and regulatins. Depending n the nature f the installatin cnstructin permitting and prevailing wages may apply. 1) Feasibility Study It is highly recmmended that a feasibility study be cnducted prir t entertaining a slar PV system installatin. A feasibility study wuld generally cntain a: Slar site analysis, including shading analysis, rientatin, and tilt f the ptential slar array. Electrical system analysis, including an verview f the electrical systems ability t integrate the electrical utput f the PV system and the space available fr related equipment (an electrical system analysis is nt needed fr remte net metered prjects). Fr rftp installatins, a structural analysis, including identificatin f limitatins that may prhibit the structure frm supprting the weight f the PV system. Evaluate the financial viability f a Pwer Purchase Agreement vs. Ownership. Evaluate the financial impact f a behind the meter prject, where the electricity generated is used directly by the campus and is nt cnnected t the utility grid vs. net metered prjects that require intercnnectin with the utility grid. Slar PV systems n state-wned prperty can be established as behind the meter, net metered r remte Page 7 State University f New Yrk Office fr Capital Facilities

9 Phtvltaic Slar Prjects net metered prjects. A slar PV prject n land wned by an affiliated rganizatin r private entity will always be a remte net metered prject. Definitins are prvided in the definitins sectin f this guidance dcument. 2) Develp a Request fr Prpsal A campus must develp Request fr Prpsal (RFP), advertise the prcurement, and evaluate respnsive prpsals frm respnsible vendrs under New Yrk State law. 3) Ntify the SUNY System Administratin Energy Management and Planning Office (if campus is a member) The Energy Management and Planning Office prvides versight and purchases utilities fr SUNY. If yur campus is a member f the Energy Buying Grup it is imprtant that yu ntify Kathleen Slusher ( ) f any upcming slar PV installatins. The installatin f a slar PV system may impact the amunt f utilities needed by the campus. The Energy Management and Planning Office will need t accunt fr thse changes when purchasing utilities n behalf f the Energy Buying Grup. 4) Advertise An advertisement in the New Yrk State Cntract Reprter is required in accrdance with NYS Ecnmic Develpment Law ) Frm a Selectin Cmmittee When the prcurement is being treated as a purchase and install, the RFP must define hw the prpsals will be evaluated and scred, mst ften the prcurement will be evaluated n the basis f Best Value. If a campus anticipates a large number f respnses, it may be helpful t define a prcess fr creating a shrt list f cntractrs. This prcess shuld be defined in writing and placed in the prcurement recrd; it des nt need t be defined in the RFP. Befre issuing the RFP, the campus shuld identify the selectin cmmittee members and the selectin cmmittee chair. The cmmittee shuld cnsist f a minimum f three members wh are able t participate in the full selectin prcess. Althugh nt required, it is recmmended that selectin cmmittees cnsist f fur r mre members. Each cmmittee member must adhere t the prcedures set frth in Prcurement Lbbying Prcedure Item 7552, and have n unauthrized cntact with cnsultants during the selectin perid. 6) Assist the develper/cntractr in cmpleting the NYSERDA applicatin (if applicable) T access the financial incentives under the NY-Sun Incentive Prgram, a participating develper/cntractr submits an applicatin t NYSERDA, which identifies the campus as the custmer. With the campus assistance, the develper/cntractr cmpletes and submits the applicatin t NYSERDA. The applicatin will likely include the Prject applicatin frm, a site map/plan, phts, a ne r three-line drawing, a system utput and system lss analysis, utility bills, cpies f permits, and an envirnmental assessment. Incentives are paid directly t develper/cntractr, and must be applied in full t the cst f the slar PV system. Fr infrmatin related t the current Prgram Opprtunity Ntice please see Attachment 1 f this dcument, r refer t NYSERDA s website. 7) Make a Selectin and Make an Award Based n the selectin criteria defined in the RFP the selectin cmmittee evaluates and selects a develper/cntractr. If interviews are held, each must be attended by all selectin cmmittee members. Any member that fails t participate in all interviews will nt be permitted t submit Page 8 State University f New Yrk Office fr Capital Facilities

10 Phtvltaic Slar Prjects ratings fr purpses f determining the selected firm. Such member may, hwever, participate in selectin cmmittee meetings and discussins. 8) Managing the Slar PV System When a Slar PV System is installed as state-wned equipment, the campus is respnsible fr maintenance f the system. A campus culd chse, hwever, t cntract with a third party fr the maintenance f the system. The campus is als respnsible fr establishing an intercnnectin agreement with the utility cmpany if the system is net-metered. Page 9 State University f New Yrk Office fr Capital Facilities

11 Phtvltaic Slar Prjects Definitins: Behind the Meter: an electricity generating system that is nt intercnnected with the utility grid. A behind the meter system is usually fr a single building r facility, with the purpse f reducing the amunt f electricity purchased fr the building, ptentially taking the facility "ff the grid" fr sme prtin f its electricity demand. Net Metered: an electricity generating system that is cnnected t the utility grid and permits the campus t sell t the utility any electricity generated that is in excess f what the campus uses. A net meter effectively spins backwards, allwing a measured, reverse flw f electricity t the utility grid. This usually requires specialized meters and intercnnectin equipment that is an additinal expense t the campus. A net metered system requires prir apprval by the utility and an perating agreement called a Standardized Intercnnectin Requirement (SIR). Remte Net Metered: an electricity generating system that is nt physically lcated r cnnected t the entity s main utility meters. The accunt allws excess generatin t be sld t the utility with the credits, either in mnetary frm r cmmdity units, t be used against expenses incurred n ther utility accunts. A remte net metered prject cannt exceed 2 MW. Intercnnectin Agreements r Standardized Intercnnectin Requirements (SIR): cntracts that gvern the cnnectin f the electricity generating system t the electric grid. An intercnnectin agreement with the lcal utility cmpany is required when installing a net metered r remte net metered PV system. Satellite Accunt: an electric accunt with the utility that receives excess credits as a result f a remte net metered system. Hst Accunt: an electric accunt with the utility that resides at the site f the generatin facility. The hst site must cnsume at least sme electricity. Typically, a utility ple with a light will suffice. Each mnth, the electricity generated exceeds the amunt f electricity cnsumed at the hst site. The excess energy is cnverted t the equivalent mnetary value at the per kwh rate applicable t the Hst Accunt s service classificatin. The mnetary credit is applied first t the Hst Accunt s electric bill. Remaining mnetary credit is allcated t the campus ther electric accunts, called satellite accunts. The Hst and Satellite accunts may be miles apart, but must be n prperty that is wned r leased by the same custmer and they must be within the same utility service territry. A remte net metered prject cannt exceed 2 MW. Page 10 State University f New Yrk Office fr Capital Facilities

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