San Diego Unified School District Solar Discussion January 9, 2014
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 1 2 3 4 5 solar solar solar solar solar 1 2 3 4 5 48 49 50 * Renewable Energy Self-generation Bill Credit Transfer Created by AB 2466 in 2010 and expanded in 2012
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.
SDUSD Electricity Cost (Million) Example Savings From Solar Investment $660 $640 25 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
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SunPower Background Founded in 1985 6,300+ 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
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
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
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
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% 0 1 2 3 4 5 6 7 System Age (years) Source:
MW's Installed MW's Installed Experience California Solar Initiative (CSI) 140 123.3 #1 PV Manufacturer #1 Project Developer >50% advantage in both categories 120 100 80 60 40 20 0 79.7 75.7 63.2 60.1 55.7 SunPower Yingli Suntech Trina SolarWorld Sharp Canadian Solar 40.8 36.8 33.0 25.7 Kyocera Mitsubishi Evergreen PV Manufacturer 120 107.2 100 80 68.1 60.2 60 49.7 44.4 40 26.0 25.9 23.7 19.5 17.7 20 0 SunPower SolarCity Sun Edison Chevron SPG Solar PsomasFMG REC Solar Borrego Solar Developer Stellar Energy GP Team-Solar www.californiasolarstatistics.ca.gov/current_data_files/
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 132,000 1 97,020,000 $0.1600 $15,523,200 10,500,000 $ 1,197,000 86,520,000 $0.1600 $12,646,200 kwh/student/yr 735 2 97,020,000 $0.1664 $16,144,128 10,473,750 $ 1,194,008 86,546,250 $0.1664 $13,207,289 kwh/yr 97,020,000 3 97,020,000 $0.1731 $16,789,893 10,447,566 $ 1,191,022 86,572,434 $0.1731 $13,790,857 2014 $/kwh (SDG&E) $0.16 4 97,020,000 $0.1800 $17,461,489 10,421,447 $ 1,188,045 86,598,553 $0.1800 $14,397,810 SDUSD Energy Cost/yr $15,523,200 5 97,020,000 $0.1872 $18,159,948 10,395,393 $ 1,185,075 86,624,607 $0.1872 $15,029,091 Annual Escalator 4% 6 97,020,000 $0.1947 $18,886,346 10,369,405 86,650,595 $0.1947 $16,867,792 7 97,020,000 $0.2025 $19,641,800 10,343,481 86,676,519 $0.2025 $17,547,752 8 97,020,000 $0.2105 $20,427,472 10,317,622 86,702,378 $0.2105 $18,255,106 Proposed Solar (est.) 9 97,020,000 $0.2190 $21,244,571 10,291,828 86,728,172 $0.2190 $18,990,959 Cost $30,000,000 10 97,020,000 $0.2277 $22,094,354 10,266,099 86,753,901 $0.2277 $19,756,456 ASP ($/W) $5.00 11 97,020,000 $0.2368 $22,978,128 10,240,434 86,779,566 $0.2368 $20,552,793 MWdc 6,000 12 97,020,000 $0.2463 $23,897,253 10,214,832 86,805,168 $0.2463 $21,381,211 Yield 1,750 13 97,020,000 $0.2562 $24,853,143 10,189,295 86,830,705 $0.2562 $22,243,001 kwh 10,500,000 14 97,020,000 $0.2664 $25,847,269 10,163,822 86,856,178 $0.2664 $23,139,507 Degradation 0.25% 15 97,020,000 $0.2771 $26,881,160 10,138,413 86,881,587 $0.2771 $24,072,128 CSI Rebate (/kwh) $ 0.114 16 97,020,000 $0.2882 $27,956,406 10,113,067 86,906,933 $0.2882 $25,042,316 CSI Effectiveness 100% 17 97,020,000 $0.2997 $29,074,662 10,087,784 86,932,216 $0.2997 $26,051,586 18 97,020,000 $0.3117 $30,237,649 10,062,564 86,957,436 $0.3117 $27,101,509 Savings (estimated) 19 97,020,000 $0.3241 $31,447,155 10,037,408 86,982,592 $0.3241 $28,193,723 Savings $73,520,146 20 97,020,000 $0.3371 $32,705,041 10,012,314 87,007,686 $0.3371 $29,329,931 Cost $30,000,000 21 97,020,000 $0.3506 $34,013,243 9,987,284 87,032,716 $0.3506 $30,511,904 22 97,020,000 $0.3646 $35,373,772 9,962,315 87,057,685 $0.3646 $31,741,483 B:C ratio 2.45 23 97,020,000 $0.3792 $36,788,723 9,937,410 87,082,590 $0.3792 $33,020,587 ROI 145% 24 97,020,000 $0.3944 $38,260,272 9,912,566 87,107,434 $0.3944 $34,351,207 25 97,020,000 $0.4101 $39,790,683 9,887,785 87,132,215 $0.4101 $35,735,419 Total 2,425,500,000 $646,477,764 2,170,726,116 $572,957,618