Power Purchase Agreements (PPAs) + Meter Aggregation for Water Districts Meter Aggregation dramatically improves PPA savings and deployment flexibility for water districts.
Thanks to PPAs powered by Meter Aggregation, solar power is no longer an overpriced luxury but the best long-term energy value for water districts and other tax-exempt/public entities What s The Big Deal With Meter Aggregation?...3 Why You Can t Afford to Ignore Solar PPAs...4 What is a PPA?...5 How Does a PPA Work?...6 Why CalCom Solar?...7
What s The Big Deal With Meter Aggregation? Meter Aggregation also called Net Energy Metering Aggregation (NEMA) or Aggregated Net Metering (ANM) makes it possible to tie all your operations and facilities into a single solar array, increasing efficiency and PPA savings. Before March, 2014, you had to build a dedicated solar array for each meter you wanted to offset. So 10 pumps with 10 meters would have required 10 separate solar arrays. This increased costs, reduced flexibility, and created long-term uncertainty... especially for water districts with multiple service points dispersed over a wide area. It also made it challenging to offer compelling PPA savings. Meter Aggregation changes all that. Today, a single solar array is now allowed to offset multiple meters/service points. So those 10 pumps mentioned above can all be tied into just one solar array. This makes it easy to shift offsets as electrical usage changes and maximize solar ROI. Add in the efficiencies from engineering, permitting, procuring, and constructing a single solar array versus multiple solar arrays, and CalCom Solar can confidently deliver much higher PPA savings than previously possible. What s more, Meter Aggregation greatly increases installation options. No need to locate a solar array near a meter/service point. You can deploy virtually anywhere...even on different parcels separated by roads (as long as they are contiguous). Remotely located pumping stations and groundwater wells, PLUS... Large loads at water treatment and filtration facilities, PLUS... Booster pumps spread throughout your distribution system, PLUS... Dispersed holding tanks, towers and reservoirs, PLUS... Solar arrays can be installed virtually anywhere With Meter Aggregation, a single, centralized solar array can offset multiple meters and deliver higher PPA savings...
Why You Can t Afford to Ignore Solar PPAs $660,178 Nearly $5 million PPA lifetime savings if electric rates increase at 6% per year which has been typical for the past few years. In year 20, you could be savings as much as 275% on annual electricity expense 1. PG&E/SCE $505,844 No up-front capital commitment No risk: you only pay for electricity actually produced $387,589 $4,526,101 20-YEAR SAVINGS No operation & maintenance No insurance costs $296,980 No price volatility: simple, predictable electricity budgeting No legacy issues: freedom to have system removed at end of PPA term $240,000 CalCom Solar PPA $200,000 $196,030 $191,178 $186,446 $181,837 2015 2020 2025 2030 2035 1 Assumes 2,000,000 kwh/year, starting at an average PG&E/SCE cost of 12 cents per kwh in 2015 with 6% annual increase (as a reference point, PG&E s E19 and E20 tariffs had annual increases greater than 6% each year from 2012-2014) vs. a 20-year PPA arrangement @ 10 cents per kwh, including a solar array production degradation of 0.5% per year.
What is a PPA? A Power Purchase Agreement (PPA) is a financial arrangement between you the Host Customer and Investors. It is made possible by the collaborative, integrated effort of several players, all coordinated by CalCom Solar. Host Customer: you authorize a solar panel system to be installed on your premises and agree to buy electricity for 20-25 years at a fixed rate. There are no upfront or fixed costs and you pay only for the electricity you use. Manufacturer Provides solar PV equipment and warranties equipment Investors Provide capital to build solar power system and own system CalCom Solar Brings together PPA resources and coordinates financing. Designs and installs solar power system. Host Customer Provides site for hosting solar power system CalCom Solar: brings together investors and resources in order to design, build, connect, and maintain a solar power system on your site.
How Does a PPA Work? Investor Investor re-sells kilowatt-hour credits at a discount to Host Customer, who redeems the credits to pay for electricity from grid kwh kwh Utility delivers kilowatt-hour credits to Investor in compensation for electricity received from solar power system at Host Customer site Host Customer Utility Utility buys excess electricity generated by solar power system, while continuing to supply Host Customer with electricity from the grid for times when solar isn t producing sufficient electricity (e.g., at night) As a solar PPA host customer, you do NOT own or maintain the solar power system at your site. It is owned by investors. Power generated in excess of your usage is bought by PG&E/SCE. This solar-generated power earns kilowatthour (kwh) credits for the PPA investors at a retail (not wholesale) rate. Thus, they are able to discount the kwh credits when they sell them to you for cash. In turn, you use these kwh credits to pay for any electricity you continue to consume from the grid, for example, during the night when the solar array isn t generating electricity. These kwh credits always buy the same amount of electricity on your bill. It s the same effect as Forever postage stamps both are valid no matter how much rates go up. The bottom line: large, long-term savings for you.
Why CalCom Solar? 1. CENTRAL VALLEY FOCUS 2. ANALYSIS 3. EXPERTISE 4. ENERGY EFFICIENCY CalCom Solar specializes in using its knowledge of California regulation and deep network to develop the most cost-effective PPA solution. 1. Central Valley Focus. CalCom Solar is 100% focused on serving water districts, irrigators, growers, and other Ag operations in the Central Valley. We specialize in engineering solar power solutions optimized to address the challenges presented by California s unique nexus of water, energy, and agriculture. 2. Analysis. Over-building or underbuilding a solar installation by just 5% can drain tens of thousands dollars from your PPA savings. Our proprietary Solar Ag Energy (SAGE) analysis system models thousands of scenarios to generate projections that are some of the most sophisticated in California... identifying the best system for your situation. 3. Expertise. 30+ years experience in the solar industry...with team members responsible for deploying more than 100 megawatts (MW) of solar generating capacity for water districts, irrigators, growers, food processors, dairies, and other Ag operations. 4. Energy Efficiency. Our team has nearly a decade of experience working with programs like Peak Day Pricing, Time-of-Use, Demand Response, Technology Incentives, etc. And our team members were some of the first to capitalize on Meter Aggregation to deliver significantly higher solar ROI. This background helps us design, develop and deploy PPAs that maximize all available utility programs, incentives, tax deductions, grants, etc. Contact us to take advantage of the unique benefits of a CalCom Solar PPA: 661-376-0543 559-425-6294 sales@calcomsolar.com www.calcomsolar.com 9716 W. Grove Ave. Visalia, CA 93291