Carroll Gardens Columbia Waterfront Cobble Hill Gowanus Park Slope Red Hook Commercial & Business Solar Workshop As of 9/29/15 Partners:
What is Solarize? The Power of Community. Reducing the costs of solar power by leveraging the collective purchasing power of of homeowners and small businesses. 2
The more who join, the The more Network everyone Effect saves. 3
Partner Installers: The Network Effect RFP Process: Evaluated by Partner committee Selected from 7 applicants Qualifications: 100 s of projects installed in NYC Experience on diverse commercial properties Competitive pricing and customer service High quality equipment 4
Solarize Brooklyn CB6 Roles Sustainable CUNY Program Management Installer RFP & Selection Marketing & Education Technical Support Community Board 6 Installer Selection Local Outreach Volunteers Solarize Leaders Quixotic & EcoMen Tiered Pricing & Financing Options Free Site Assessments Permitting & Rebate Processing Installation Residents and Businesses Sign Up for Free Assessments Talk to Neighbors Get Solar Lower Energy Bills! 5
Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 6
Solar Technologies Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power 7
System Types Roof Mount Ground Mount Parking Canopy
Some Basic Terminology e - e - e - Capacity / Power kilowatt (kw) Production Kilowatt-hour (kwh) 9
Solar PV Basics Residence 3-10 kw Factory 1 MW+ Commercial 11 500 kw Utility 2 MW+
Technology will become outdated? 11
Not Enough Sun? 12
Solar works in NYC 13
Solar works in NYC 14
Solar works in NYC 15
Solar works in NYC 16
Solar works in NYC 17
Installed Capacity (MW DC) Solar Growth in NYC 60 50 40 30 20 10 0 Solar PV in New York City 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Installed Capacity Cumulative Installed Capacity * 2015 figures through September 21, 2015 2005 Capacity: 1.1 MW Installs: 45 Value: $13 million 2015 Capacity: 54.1 MW + Installs: 3,550+ Value: $309 Million +
kw Installed Commercial & Industrial PV in NYC 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000-2012 2013 2014 2015* 2016* Total kw installed 2,302 5,679 4,700 9,000 17,000 Average System Size (kw) 256 379 361 550 800 *2015 and 2016 are estimates
$/Watt NYS & NYC Solar PV Cost $12.00 Weighted Avg. Installed Cost $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 NYC NYS 20
$ per Watt US Solar Costs $4.00 $3.50 $3.00 $2.50 $2.00 Total Installed Cost $1.50 $1.00 $0.50 $- US Solar Cost Source: Market Analysis SEIA 21
$ per Watt US Solar Costs $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Non-Hardware Cost Hardware Cost $- US Solar Cost Source: SEIA 22
$ per Watt US Solar Costs $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Profits, Taxes, & Overhead Column1 Non-Hardware Cost Hardware Cost $1.00 $0.50 $- US Solar Cost Source: SEIA 23
$ per Watt $ per Watt US Solar Costs $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 Solar Soft Costs Other Paperwork Permitting & Inspection Column1 Non-Hardware Cost Financing Costs Hardware Cost Customer Acquisition $0.50 $0.20 Installation Labor $- US Solar Cost $0.00 German Solar Cost Source: NREL, LBNL 24
Solarize Brooklyn CB6 Pricing Guide Commercial estimated base pricing based on optimal roof ($/Watt) Quixotic Systems EcoMen Solar 10kW to <25kW $4.40 $4.87 25kW to <50kW $4.38 $4.40 50kW to <100kW $4.17 $4.15 100kW or more Priced per instance Highly market competitive Priced per instance Highly market competitive Note: Commercial solar projects larger than 10kW involve unique site-specific situations. These price guidelines would not be exceeded in a typical installation without site-specific contingencies. Pricing will in some cases be lower. The contractor will work with you to evaluate your roof and provide competitive pricing. 25
Solarize Brooklyn CB6 Pricing Guide Pricing examples Example size Quixotic Systems EcoMen Solar Gross Cost Estimated Net Cost Gross Cost Estimated Net Cost 10kW $44,000 $10,622 $48,700 $12,175 25kW $109,500 $26,390 $110,000 $26,555 50kW $208,500 $49,509 $207,500 $46,179 Note: Commercial solar projects larger than 10kW involve unique site-specific situations. These price guidelines would not be exceeded in a typical installation without site-specific contingencies. Pricing will in some cases be lower. The contractor will work with you to evaluate your roof and provide competitive pricing. 26
Incentives and Tax Credits NY-Sun Incentive (NYSERDA) o <200kW: $0.80/W for first 50kW then $0.50/W o >200kW: Performance Based Federal Investment Tax Credit (ITC) o 30% of net cost after rebate o Scheduled to decline to 10% at end of 2016 Modified Accelerated Cost Recovery System (MACRS) o 6-year Depreciation Schedule: 10%, 32%, 19.2%, 11.52%, 11.52%, 5.76% NYC Solar Property Tax Abatement (PTA) o 20% of net cost after rebate over 4 years o Capped at $250,000
NY-Sun >200kW C&I Incentives Performance based incentives o Initial incentive payment at commercial operation o Three annual incentive payments based on production 20% multiplier on base incentive for utility strategic locations Add up to $50,000 for integrating energy storage Add up to $50,000 for integrating energy efficiency System size limited to one host meter per application
Strategic Solar Zones +20% increase in NY-Sun Incentive
It Doesn t Pay to Wait: NY-Sun Incentive Program 30
Example Cost Breakdown Assumptions based on Estimated Cost & Tax Liability System Size 50 kw PV Production / Year (depends on orientation to sun) 55,357 kwh Estimated Cost / Watt (depends on site specifics) $4.00 System Cost $200,000 Incentives based on July 2015 rates NY-Sun (varies by PV production & current rate on systems >200kW) $40,000 Federal PV Tax Credit (30% now 10% after 2016) $48,000 MACRS Depreciation (Over 5 years with bonus depreciation in year 1) $45,900 NYC Property Tax Abatement (20% over 4 years capped at $250k) $32,000 Total Incentives (not all received in first year) -$165,900 Estimated Increased Taxes from PTA Incentive +$9,600 Total System Cost After Incentives & Taxes $43,700 Please consult contractors for actual costs and an accountant for tax saving verification
Example Potential Savings Estimated Savings & Assumptions System Size 50 kw Estimated Cost / Watt (depends on site specifics) $4.00 System Cost after incentives $43,700 PV Production / Year (depends on orientation to sun) 55,357 kwh Assumed utility rate $/kwh $.15 cents $.10 cents Estimated 25 Year Savings $295,880 $197,254 Return On Investment 15% 10% Payback Years 4 Yrs 6 Yrs Please consult contractors for actual costs and an accountant for tax saving verification
Example Cumulative Net Cashflow 300,000 250,000 $.15 / kwh utility rate 200,000 150,000 $.10 / kwh utility rate 200,000 100,000 150,000 100,000 50,000 50,000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0-50,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Year -50,000 Year -100,000-100,000-150,000-150,000-200,000-200,000
Ownership and Financing Options for Solar Direct Ownership: Cash Purchase Solar loan - $0-down financing available Third-Party Ownership: Lease Power Purchase Agreement (PPA) Example savings: 12-33% Remote Net Metering 34
Solar PV Basics
Solar PV Basics Inverter Disconnect Switch Utility Grade Meter Image Source: Home Power Magazine
Net Metering Net metering allows customers with PV to export power to the grid during times of excess generation, and receive credits that can be applied to later electricity usage. 37
PV Production vs Energy Usage 2am 4am 6am 8am 10am noon 2pm 4pm 6pm 8pm 10pm midnight Summer Solar Production Household Electricity Consumption
Net Metering Credits: Like Rollover Minutes [ ] Billed Usage [ ] Credits Jan Feb March April May June July August Sept Oct Nov Dec 100% Solar Production Typical Electricity Consumption
Commercial Demand Charges Consumption vs Demand Quantity of electricity consumed (kwh) Demand (kw) rate energy is used Peak demand of the day Consumption kwh 1am 6am Noon 6pm Midnight
Energy kwh Demand & Solar PV rarely contributes to reducing peak demand Example December Solar Array Production 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December Days
Demand Charges USAGE ENERGY DEMAND July Reading (Actual) Credit -100 kwh 12 kw CHARGES Basic/Customer Service Charge $19.47 Delivery 0 KWH @ 0.10 $0 Supply 0 KWH @ 0.045 $0 Demand 12 kw @ 16.66 $200.00 Total $219.47 Credit -$14.50 Credits convert to dollars: Amount Due $204.97 Delivery + Supply x Credits = $$ credit to demand & other charges ( $.10 + $.045 ) x 100 kwh = $14.50 credit *Exception - PSEG LI kwh credits rollover
Roof Considerations Age and Condition NYC Fire Code: Distinct clear path every 100 linear feet Clear path is 6 wide & 9 tall Traverses front to rear & side to side Fire escape, doors, scuttles, skylights must be accessible from clear path Applies to solar on Flat Roofs less than 20⁰ & under 100 ft tall 43
Example Timeline for Turnkey Process Week 0 Sign up for site assessment Week 1 Initial site screening and conversation with CUNY Week 2-3 Installer site visit, engineering and proposal generation Week 4-6 Customer decision process and contract signing Week 7-15 Installer files applications with NYSERDA, DOB, and Con Edison, and receives permits Week 16-17 (1-7 days, depending on size) Installation & Commissioning Week 18-27 Inspections, PTA application, Sign off by DOB & Con Ed Total: 4-6 months on average 44
Solarize Brooklyn CB6 Simplified Process Base offerings and prices a standard set of equipment and financing options at a pre-set price per watt of solar, depending on the size of the system. Add-ons and additional services A series of common add-on costs for non-standard situations and additional services or equipment that go beyond the base offering 45
www.solarizebrooklyncb6.com 46
Solarize Discounts Solarize Community Discount Tiers Current tier in yellow Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 1-25 kw 25-50 kw 50-100 kw 100-200 kw 201+ kw Quixotic Systems --- -$0.04/Watt -$0.07/Watt -$0.10/Watt -$0.13/Watt Example for 5kW residential system: --- -$200 -$350 -$500 -$650 Example for 25kW commercial system: --- -$1,000 -$1,750 -$2,500 -$3,250 EcoMen Solar --- -$0.02/Watt -$0.05/Watt -$0.08/Watt -$0.11/Watt Example for 5kW residential system: --- -$100 -$250 -$400 -$550 Example for 25kW commercial system: --- -$500 -$1,250 -$2,000 -$2,750 47
Comparing Contractors Pricing $/Watt for estimated system size Included in base pricing v. add-ons Equipment Panel wattage Warranties DC Optimizers vs. Microinverters Financing Options Leases, PPAs, Loans, etc. 48
Next Steps 1. Talk to Partner Installers and Ask Questions 49
Next Steps 2. Compare offerings and pricing www.solarizebrooklyncb6.com 50
Next Steps 3. Select Installer Partner and sign up for free, no-obligation site assessment Initial selection streamlines evaluation process Initial contractor selection is not binding Email solarizecb6@cuny.edu to switch contractors after signing up 51
Next Steps 3. Select Installer Partner and sign up for free, no-obligation site assessment Initial selection streamlines evaluation process Initial contractor selection is not binding Email solarizecb6@cuny.edu to switch contractors after signing up 52
Next Steps 4. Roof Evaluation Process Informational call from Solarize CB6 Satellite evaluation of roof On-site evaluation by installer Proposal generation 53
Next Steps 5. Sign contract with Installer Partner and move forward with installation Deadline to sign up for Solarize Pricing: September 30 54
Next Steps 6. Tell your fellow businesses! The more who join Solarize Brooklyn CB6, the more everyone will save. 55