How To Make Money From Solar Power

Transcription

1 San Diego Unified School District Solar Discussion January 9, 2014

2 Solar Opportunities in SDG&E Net Energy Metering (NEM) One solar system per site (1:1) 1 MW maximum per site Offset energy consumed on-site Savings = Full retail value of energy RES-BCT * ( ) One grand unified system (1:50) 5 MW maximum per site Offset other benefitting accounts Savings = ~80% of full retail value solar solar solar solar solar SOLAR solar solar solar solar solar * Renewable Energy Self-generation Bill Credit Transfer Created by AB 2466 in 2010 and expanded in 2012

3 Solar Project Benefits Financial Significant energy savings with immediate positive cash flows Greater independence from SDG&E s cost of energy increases Educational Opportunity to integrate hands on science and engineering into the curriculum Expose students and teachers to sustainability practices Environmental Become a leader within the community and amongst your peers Reduces carbon emissions Intrinsic Create jobs Provide shade for parking lots San Diego USD is already purchasing energy, solar is simply a cleaner source at a lower cost.

4 SDUSD Electricity Cost (Million) Example Savings From Solar Investment $660 $ Year Cumulative Electricity Cost (already acounts for existing solar) $646 million $620 $600 $580 $560 Invest: 6 MW $30M CapEx $5/W $573 million $73M Savings from: Avoided Utility Costs CSI* Rebates $540 $520 Pre-Solar Post Solar A Solar Investment Utilizing Bonds Yields an ROI of 145% Assumptions: 735 kwh/student/yr; $0.16 avoided cost; 4% utility inflation; $0.114 CSI rebate; 1750 kwh/kwdc yield; bond funded; 0.25% annual degradation; 25 year lifecycle. * California Solar Initiative

5 Appendix

6 SunPower Background Founded in ,300+ employees Publically traded (SPWR) >3GW of PV installed World Record Cell Efficiency Headquartered in San Jose, CA CA based manufacturing facility Revenue of $2.4B in 2012 Largest solar projects in the world Extensive K-12 Experience We are Known for Quality & Performance

7 SunPower is the Leading Solar Provider for California Public Education Experience: Over 120 K-12 Schools in CA Superior Technology CSBA s Preferred Provider (since 2009) Extensive DSA Experience Educational Partnership Programs Education We re proud to serve as a model for educational institutions statewide and across the nation in achieving energy sustainability and preserving the environment, while reducing energy costs and thereby maximizing resources for students. School Districts Mount Diablo USD West Contra Costa USD San Ramon Valley USD Sweetwater UHSD Oxnard UHSD Porterville USD Community Colleges Kern CCD Ohlone College Los Angeles CCD Shasta CCD Mendocino CCD Foothill-De Anza CCD Universities UC Merced UC Berkeley UC Santa Barbara CSU East Bay Loyola Marymount University Martha J. Kanter, Chancellor, Foothill-DeAnza Community College District Culver City USD Los Angeles USD West Valley-Mission CCD Yuba CCD

8 Educational Partnership Program Teacher Training Renewable Energy Curriculum Summer Solar Science Academy SunPower University - Adds relevance to courses - Connects Teachers to Employers Project Lead the Way - Intro. to Engineering Design - Principles of Engineering Summer Internships - Comprehensive review of value chain; economics; environment

9 SunPower Differentiation SunPower Manufactures its Own Cells & Modules SunPower Delivers Fully Integrated Energy Systems Strongest O&M Experience in the Industry Highest Efficiency Highest Production Unmatched Reliability 30% 8%.25% More Watts per square foot More energy (kwh) per Watt Annual degradation rate, 4x better than industry average

10 Power Output Highest Reliability 0% AC Power Output vs. System Age -1% -2% -3% SunPower: -0.25%/yr -4% -5% Conventional Panel -6% -7% Conventional: -1.25%/yr -8% -9% System Age (years) Source:

11 MW's Installed MW's Installed Experience California Solar Initiative (CSI) #1 PV Manufacturer #1 Project Developer >50% advantage in both categories SunPower Yingli Suntech Trina SolarWorld Sharp Canadian Solar Kyocera Mitsubishi Evergreen PV Manufacturer SunPower SolarCity Sun Edison Chevron SPG Solar PsomasFMG REC Solar Borrego Solar Developer Stellar Energy GP Team-Solar

12 Illustrative Pro Forma Status Quo Solar Production CSI Rebate Post Solar Usage, Cost Status Quo Year kwh $/kwh SDG&E Cost kwh 5 Yr Total students 132, ,020,000 $ $15,523,200 10,500,000 $ 1,197,000 86,520,000 $ $12,646,200 kwh/student/yr ,020,000 $ $16,144,128 10,473,750 $ 1,194,008 86,546,250 $ $13,207,289 kwh/yr 97,020, ,020,000 $ $16,789,893 10,447,566 $ 1,191,022 86,572,434 $ $13,790, $/kwh (SDG&E) $ ,020,000 $ $17,461,489 10,421,447 $ 1,188,045 86,598,553 $ $14,397,810 SDUSD Energy Cost/yr $15,523, ,020,000 $ $18,159,948 10,395,393 $ 1,185,075 86,624,607 $ $15,029,091 Annual Escalator 4% 6 97,020,000 $ $18,886,346 10,369,405 86,650,595 $ $16,867, ,020,000 $ $19,641,800 10,343,481 86,676,519 $ $17,547, ,020,000 $ $20,427,472 10,317,622 86,702,378 $ $18,255,106 Proposed Solar (est.) 9 97,020,000 $ $21,244,571 10,291,828 86,728,172 $ $18,990,959 Cost $30,000, ,020,000 $ $22,094,354 10,266,099 86,753,901 $ $19,756,456 ASP ($/W) $ ,020,000 $ $22,978,128 10,240,434 86,779,566 $ $20,552,793 MWdc 6, ,020,000 $ $23,897,253 10,214,832 86,805,168 $ $21,381,211 Yield 1, ,020,000 $ $24,853,143 10,189,295 86,830,705 $ $22,243,001 kwh 10,500, ,020,000 $ $25,847,269 10,163,822 86,856,178 $ $23,139,507 Degradation 0.25% 15 97,020,000 $ $26,881,160 10,138,413 86,881,587 $ $24,072,128 CSI Rebate (/kwh) $ ,020,000 $ $27,956,406 10,113,067 86,906,933 $ $25,042,316 CSI Effectiveness 100% 17 97,020,000 $ $29,074,662 10,087,784 86,932,216 $ $26,051, ,020,000 $ $30,237,649 10,062,564 86,957,436 $ $27,101,509 Savings (estimated) 19 97,020,000 $ $31,447,155 10,037,408 86,982,592 $ $28,193,723 Savings $73,520, ,020,000 $ $32,705,041 10,012,314 87,007,686 $ $29,329,931 Cost $30,000, ,020,000 $ $34,013,243 9,987,284 87,032,716 $ $30,511, ,020,000 $ $35,373,772 9,962,315 87,057,685 $ $31,741,483 B:C ratio ,020,000 $ $36,788,723 9,937,410 87,082,590 $ $33,020,587 ROI 145% 24 97,020,000 $ $38,260,272 9,912,566 87,107,434 $ $34,351, ,020,000 $ $39,790,683 9,887,785 87,132,215 $ $35,735,419 Total 2,425,500,000 $646,477,764 2,170,726,116 $572,957,618