Sierra Nevada Annual Conference. Prop 39 and Solar PV Project Development. September 26, 2015

Transcription

1 Sierra Nevada Annual Conference Prop 39 and Solar PV Project Development September 26, 2015

2 TerraVerde Overview To date: selected by 35 Districts to support Prop 39 implementation; 20 Expenditure Plans approved by CEC; 15 in RFP, design or construction phase Solar projects completed at 120 sites to date; another 20 sites under construction Fall 2015, and 44 more projects starting between January 2015 and June 2016 Completed over $100 Million in solar & energy efficiency projects, on time and on budget; helped secure over $35 Million in low-interest financing for solar and energy efficiency projects(cec Loans, Build America Bonds, QSCBs, CREBs) Completed first solar plus battery storage School District project in California (9 sites); another under construction (8 sites) and several more in RFP phase Wide ranging experience with solar PV, energy efficiency, advanced energy storage, alternative financing, multi-site construction, specification driven RFQ processes, public agency-centric policies and regulations, ADA, DSA, and turnkey design/build management 2

3 Solar and Prop 39 Program & Policy Issues Prop 39 First Three Years Allocation Statewide ~$300 Million/year Prop 39 Expenditure Plans must be submitted by June 30, 2018; projects completed by June 30, 2020 Solar Tariffs Net Metering (NEM) PG&E A6; SCE s Option R NEMA aggregated NEM RES-BCT Policy Issues Federal Investment Tax Credit Reduction (12/31/16) Net Metering Rules Changing (est. January, 2017) Option R Cap (Late 2016) 3

4 Public Agency & School Challenge Achieve verifiable cost savings that match projections and expectations Analyze large quantities of data, variables, and site conditions across multiple facilities/sites Evaluate many technologies and financing methods Accurately discern highest value projects: Achieve net positive cash flow savings with minimal upfront expense Alleviate burden on staff and disruption to Operations: from initial project development thru implementation On-going management of O&M, warranties, performance monitoring and reporting 4

5 Battery Storage Paired With Solar PV Peak demand charge is normally calculated as the highest peak demand during the monthly billings cycle based on a 15 minute interval. Adding solar energy generation reduces utility energy (kwh) use/cost, but often has little effect on peak demand (kw) charges. Summer peak demands often occur during the late afternoon and early evenings when solar energy output drops off. For many commercial customers the peak demand part of their utility bill can be percent of their total electric bill. 5

6 Best Practices: Asset Management Monitor and Maintain Systems for Peak Performance Monitor on an hourly basis, compare to predicted output Schedule PMs & panel washing based on soiling loss calculations Respond to any monitoring alarms and contact District Initiate warranty claims and dispatch technicians as required Compare actual meter values to projected output and identify cause of any discrepancies. Report findings to District Provide quarterly production/performance reports with usage breakdowns (solar kwh & utility kwh) Provide annual realized savings report and future maintenance budget forecast 6

7 Case Study: NEM 1.0 vs. 2.0 Phase 1 Solar Implemented MWs; 22 School and District site GO Bond Financed $2.7 Million Annual Savings Phase 2 Solar See Pro forma 7

8 Contact Information Rick Brown, PhD, President TerraVerde Renewable Partners, LLC 1100 Larkspur Landing, Suite 155 Larkspur, CA (707)

9 About TerraVerde Renewable Partners Since 2009, TerraVerde has been California s leading independent solar energy advisor Recognized leader in project development consulting services: Energy Efficiency, Solar PV, Energy Storage In house engineering, structured finance, financial modeling, Installation & PPA contracts, Owner s Representative project management, and post-installation Asset Management Services Serving all of California (offices in So Cal & Nor Cal) Solar energy industry veteran principals are directly involved in project development, financial analysis, technical specs Unique engagement model mitigates project risks during development 9

10 TerraVerde s Mission Assist California public agencies achieve energy independence, while obtaining meaningful cost savings, and a reduced carbon footprint Serve as an independent advisor and owner s rep, to develop & implement high value energy projects while mitigating risk Set realistic goals & objectives Educate clients about technologies, Utility tariffs/programs, project funding & financing options, incentives, regulations, contracts Leverage advanced knowledge, tools, methods, and experience Develop Client-specific comprehensive energy management programs Demand management Energy efficiency measures Renewable energy generation systems Systematic analysis and evaluation to deliver maximum benefit projects Client-centric services: from concepts & plans to life-long operations management 10

11 Our Approach Comprehensive, independent project development and feasibility assessment via systematic due diligence Define SOW, systems specifications, and project costs Determine optimum system capacity and Utility rates Detailed 25-year Savings cash flow pro-formas for various financing scenarios Run turnkey RFP process using open-book bidding Manage contracts, design, engineering, construction, commissioning and system performance validation Manage on-going O&M, warranty support, performance monitoring and reporting 11

12 TerraVerde s Experience Projects Completed To Date: $100 Million Projects Under Development: $45 Million Sample clients: Clovis USD Lancaster USD Rancho CA Water District Visalia USD Clovis USD Sonoma County Family YMCA Hemet USD Eastern Sierra CSD Inyo County Burton City Schools Petaluma City Schools Golden Valley USD City of Woodland City of Lathrop City of Bishop 12

13 What Our Clients Say TerraVerde emphasizes education and transparency. We feel confident that they provide us an unbiased assessment of the risks and benefits. Don Ulrich, Assistant Superintendant, Clovis USD TerraVerde is the best partner I have ever worked with in my 28 years of school construction experience. Eric Cederquist, Superintendent, Fowler Unified School District TVRP paid special attention to our unique needs and requirements throughout the development and implementation process. Most importantly, they have worked as a true partner, providing information in a fully transparent manner and have worked collaboratively with us to address issues and problems that inevitably arise during the development process. Steve Bolman, Superintendant, Petaluma City Schools It is my pleasure to provide my highest recommendation for TerraVerde. As their name implies, they have truly become our partner in all energy matters. Every person that we have worked with at TVRP knows our particular issues and concerns and is an integral member of our team as we evaluate both solar and now Prop 39 projects. Robert Groeber, Assistant Superintendent, Visalia USD While we were in the process of developing our solar project, we had over ten contractors participate in the mandatory site walk. One of the contractors said to me how fortunate our district is to be working with Terra Verde. They said that there is never a question as to what is expected of the contractors and that Terra Verde is very well organized which leaves little room for mistakes or issues once the project begins. Tracy Tucker, MOT Director, Burton City Schools 13