The Road to Community Solar
ORECA Director Education
Conference
June 2, 2015
Jeff Beaman, Member Services Director
Central Electric Cooperative
Community Solar
What is Community Solar?
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No legal definition
Centralized, grid connected
Multiple participants
Participant funded
Community Solar
Why is it Growing?
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Solar economics
Incentives and mandates
Net metering hurdles
Public / utility attitudes
Community Solar
Solar Economics:
Oregon and Washington Expansion*
2013
2014
2015 est.
101 Mw
123 Mw
200 Mw
*Solar Energy Industries Assoc.
Community Solar
Solar Economics (cont’d):
• 142 Solar-related companies in Oregon
• 2,100 employees
• Installation costs:
• down 8 percent 2013 to 2014
• down 49 percent since 2010
Community Solar
National Trends:
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2/3 of U.S. arrays installed since 2011
Panel prices down 80% since 2008
PV system installed every four minutes
Community Solar
Mandates and Incentives:
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30% federal tax credit thru 2016
10% after
Renewable Portfolio Standards
Clean Power Plan (Sec. 111d)
Community Solar
Mandates and Incentives (cont’d):
Federal Subsidies 2010-13
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Down $8.7 Billion overall
Up $4.4 Billion for Renewable Energy
$2.5 billion for solar alone
Community Solar
Utility Attitudes:
Q: What new business model developing?
A: Distributed Generation: 48% (#3)
Q: Fuel mix changes over 20 years?
A: More utility-scale solar (79%) and more
distributed energy (84%)
Community Solar
Utility Attitudes (cont’d):
Q: Most compelling reason for clean energy
investment?
A: 42% targets or mandates
31% sustainability
Community Solar
Utility Attitudes (cont’d):
Q: How invest in distributed energy resources?
A: 55% partner with 3rd party providers
46% procure from customer-sited DER
Community Solar
Utility Attitudes (cont’d):
Top three emerging technology investments
• Utility scale renewables: 37% (#3)
• Distributed solar: 32% (#5)
Community Solar
Public Attitudes (homeowner survey):
• 88 percent: renewables important to future
• 69 percent: more energy and electricity choices
• 62 percent: interested in solar for residences
Community Solar
25% of U.S. Homes Net Metering Suitable
• Home ownership vs. rental
• System cost
• Roof orientation
• Aesthetics and/or restrictions
Community Solar
Is it Right for Your Co-op?
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Rate economics: cost vs. savings
Specific mandates / incentive impacts
Geographic location, how’s your sunshine?
Member interest
Community Solar
Member Interest:
Survey comment
“…dams and coal are probably more practical
now, but we think they should be phased out
and solar or other more environmentally
friendly power sources should be our future
investments.”
Community Solar
CEC Member Interest (cont’d)
• Survey findings:
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72% not familiar w/concept
69% view CEC involvement favorably
56% interested in participating
Community Solar
CEC Objectives:
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Manageable size: 100-kW to 500-kW
Not rate based, participant-funded
Gain solar knowledge
Serve member interest, offer choice
Demonstrate proactive approach
Community Solar
Preliminary Analysis:
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Use industry standard figures
Bonneville Environmental Foundation
ID potential grant opportunities
Refine information as you go
Community Solar
Preliminary Analysis (cont’d):
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Drive to “go – no go” decision by board
Build in checkpoints and exit ramps
Engage membership
Community Solar
CEC advantages:
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Hybrid: Green Power and subscription
Available land
Close proximity to grid
Community Solar
Deeper Economic Analysis:
• Put project out to bid
• Process reveals wide range of bids
• More fine tuning, other costs firm up
• Reach point of go-forward or exit
Community Solar
Bid Responses
Firm
100 kW
200 kW
Company A
$352,000
$617,000
PRIOR ESTIMATE
$348,000
$616,000
Company B
$318,255
$611,765
Company C
$301,049
$538,239
Company D
$294,273
$570,195
Company E
$259,494
$479,178
Selected Company
$241,248
$442,288
Community Solar
Committed! Now What?
• Select Contractor = expert partner
• Pursue grants
• Refine participation costs
• Communicate to members, keep them apprised
• Address local permitting issues
Community Solar
CEC Current Status
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Land permit application pending
One grant awarded, another pending
Contracted with Sunlight Solar Energy
Design refinements
Developing hybrid business structure
Marketing activities
Community Solar
Project Schedule – tentative
1st permits filed April 28
Permitting, materials acquisition thru mid-July
Ground prep, installation thru mid-Sept.
Inspect, interconnect, commission thru late
Sept.
• Online Sept. 28
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Community Solar
Questions?
Community Solar
My contact information:
• Jeff Beaman, Member Service Director
• Central Electric Cooperative
• [email protected]
• 541.312.7753