Financing Solar Energy Projects: The Role of Local Government

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1 Financing Solar Energy Projects: The Role of Local Government National League of Cities: Helping City Leaders Build Better Communities December 2, 2010

2 Saint Paul & Minneapolis Solar America Cities Change local & state policies Develop a variety of financing mechanisms Increase public awareness of solar Integrate solar technology into City infrastructure Educate and train solar installers

3 Solar Cities Partners MN Office of Energy Security Xcel Energy MN Renewable Energy Society Fresh Energy MN League of Cities Neighborhood Energy Connection Center for Energy & Environment SolarFlow Energy International Brotherhood of Electrical Workers (IBEW)

4 Original 25 Solar America Cities

5 Developing Solar Financing Options Xcel Energy s Renewable Development Grant Fund Utility Incentives State Financial Incentives Solar Leasing Power Purchase Agreements (PPAs) Stimulus Funds PACE Legislation Solar Bulk Purchasing

Solar Leasing Option $2 M from Xcel RDF & private capital to develop pilot & business model Nov 2009, SolarFlow Energy installs first leased solar PV system in Minneapolis

6 Solar Leasing Option $2 M from Xcel RDF & private capital to develop pilot & business model Nov 2009, SolarFlow Energy installs first leased solar PV system in Minneapolis Installed 19 residential & 9 commercial 280 kw Terms $1-5,000 down with 15 yr term for residential & 18 yr for commercial with option to buy out at end of lease at Fair Market Value

5 M for grants to install renewable energy in gov t & schools & $2.

7 2009 State Legislation $30 Million Solar Incentives Authorized Xcel Energy s $5 M annual Solar Rewards $3.4 M rebates (More than previous 7 yrs combined.) $4.5 M for grants to install renewable energy in gov t & schools & $2.5 M Solar Testing Lab $1.1 M for solar grants in regional parks $3 M for Solar Cities for high visibility projects along LRT Corridor. 7

Requires an energy audit to participate Requires a 20 year

8 Xcel Solar Rewards Program March 2010, Xcel Energy launched Solar Rewards Program $5 M year for 3 years Requires an energy audit to participate Requires a 20 year REC agreement $2.25 per watt 40 kw net meter limit 140 projects - $1.64 M

commercial systems Available through 2016 Modified

9 Federal Incentives Federal Investment Tax Credit for Wind and Solar 30% tax credit for residential and commercial systems Available through 2016 Modified accelerated depreciation for commercial systems (40% the first year)

10 MN State Programs with ARRA funds $3 M Residential & Small Business rebates Solar Electric Rebate Program $1.50-$1.75 per watt up to 5 kw residential & 10 kw small business 260 PV projects approved Solar Water Heating Rebate Program $25/square foot of net aperture 69 solar thermal Solar Air Heat Rebate Program $25/square foot of net aperture

Minneapolis Convention Center Power Purchase Agreement 600 kw of Power 750,000 kwh annual energy 2,613 PV panels, six inverters Can supply 20% of daytime electricity

11 Minneapolis Convention Center Power Purchase Agreement 600 kw of Power 750,000 kwh annual energy 2,613 PV panels, six inverters Can supply 20% of daytime electricity Provides 5% of total annual electricity Project customers of Xcel Energy through a grant from the funding provided by Renewable Development Fund Installed by Westwood Renewables

13 Racking & Panel Installation

14 Largest MN PV Installation 600 kw

2009 DOE Solar Market Transformation $1 M Grant (ARRA) All 25 Solar America Cities host district energy systems Efficient delivery and consumption of energy Technology widely

15 2009 DOE Solar Market Transformation $1 M Grant (ARRA) All 25 Solar America Cities host district energy systems Efficient delivery and consumption of energy Technology widely used in Europe Systems use steam or hot water to connect hospital, academic campuses, and diverse users within municipalities Expand utility involvement with $1.2 M District Energy

16 District Energy St. Paul

17 Saint Paul RiverCentre

18 About the Installation 1 MW Peak Production Produces an estimated 1,200,000 kwh (Average MN homes consume 24,000 kwh per year.) 21,000 Sq ft of panels. Installation 30,000 sq ft. 220,000 lbs of steel 1600 linear feet of pipe.

19 Largest Solar Thermal Installation

20 2010 Installation

21 About the Collectors 144 commercial-grade flat plate collectors Maximum efficiency technology. Convert 80% of the absorbed sunlight into thermal energy Crucial Operating parameters: Starting Efficiency: 75.4% Heat Loss Coefficient: W/(C *m 2 ) Operating Temperature: 195 F

$3 Million ARRA for Solar Cities Completed 30 solar site assessments at public sites in Saint Paul & Minneapolis Completed structural engineering studies Solar 6-8 Saint Paul

22 $3 Million ARRA for Solar Cities Completed 30 solar site assessments at public sites in Saint Paul & Minneapolis Completed structural engineering studies Solar 6-8 Saint Paul facilities 500 kw Solar on two Mpls fire stations and a maintenance facility totaling kW $50,000 EECBG funds for solar EV charging stations in Saint Paul Leverage $500,000 Xcel rebates

23 Energy Innovation Corridor Four blocks (1/4 mile) adjacent to Central Corridor light rail and all of the University of Minnesota Minneapolis campus.

24 Additional Solar Projects $6.6 M solar parking meters in Minneapolis in Awarded $89,000 grant solar installations in Minneapolis & Saint Paul parks in summer Awarded $150,000 grant for solar thermal for new Saint Paul pool $15,000 EECBG & Solar Cities funds to develop solar thermal bulk purchase

25 Additional Financing Mechanisms for Solar Projects April 2010: Minnesota State Legislature passed PACE enabling financing legislation Minneapolis Saint Paul SAC team hosted policy meetings and a forum for MN policymakers and other stakeholders on solar financing options. Cisco Devries, Renewable Funding, discussed how to craft sound PACE-based programs. Jason Coughlin, NREL, presented on financing large scale PV projects MN Legislature passed $5 M ($5 per watt) incentives for MN solar PV manufactures

26 For More Information Anne Hunt, Environmental Policy Director Mayor Chris Coleman City of Saint Paul 390 City Hall Saint Paul, MN ci.stpaul.mn.us

Solar Energy Update. Transportation & Environment Committee Presentation June 11, 2012

Solar Energy Update. Transportation & Environment Committee Presentation June 11, 2012 Solar Energy Update Transportation & Environment Committee Presentation June 11, 2012 1 Background Purpose: Update from February 13, 2012 briefing Feasible Projects Convention Center Solar Farm(s) DPD/DFD