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Solar Energy for Small FarmsMarch 7, 2015
Tipmont Community Solar
Tipmont REMC
• A member-owned cooperative providing electric service to more than 22,000 members
• Founded in 1939
• Headquartered in Linden
• Primarily Tippecanoe, Fountain,and Montgomery counties andportions of Benton, Boone, Carroll, Clinton and White
Power Supply – Some Background
• Fossil fuel costs are uncertain
• Coal is under attack – targeted due to environmental concerns
• Growing dependence on natural gas market
• Growing awareness of environmental costs are likely to result in higher rates
• Indiana’s reliance on coal is estimated at 80% or more
• Wabash Valley Power Association is dedicated to a diversified power portfolio – coal is currently about 50%
Tipmont Responds
• Awareness that our obligation is to provide reliable and cost effective service in a rapidly changing energy environment
• Our members look to us as leaders in the energy space and it is a trust we take very seriously
• Committed to providing the best value to our members – may mean transforming our business in a changing energy marketplace
• Recognition that a deliberate and thoughtful move to renewables reduces the risk of fossil fuel price volatility and provides sustainability
• Understanding that efficiency programs are necessary to assist member’s with controlling expenses
Consumer Demand for Solar
3.9%
4.5%
2.6%
3.0%
3.2%
8.6%
22.9%
51.4%
0% 10% 20% 30% 40% 50% 60%
DK/NA
Other
To have power when the grid goes down
To make America more energy independent
They know a neighbor, friend, or family member who installed solar
To benefit the environment and mitigate climate change
Solar energy costs are now more competitive with utility
To save money
Top two drivers for adopting solar are economics and choice
Source: The Solar Foundation, “National Solar Jobs Census 2013” (January 2014)
Growth of Solar
Growth of Solar
Things to Consider Before Going Solar
• Farm and/or Home Energy Audit• Check with your utility to see what their metering policy is
• Net Metering• Net Billing
• Read your utilities Interconnection Agreement• Insurance requirements
• Know your Utility Rate• Are you billed on energy only?• Are you billed for demand?
• Check on necessary permits• Most Installers will do this for you
Net Metering
• Net metering allows members who generate their own electricity using solar or other renewables to bank excess electricity on the grid, usually in the form of kilowatt-hour (kWh) credits.
• In effect, the member uses excess generation credits to offset electricity that the member otherwise would have to purchase at the utility’s retail rate.
• Most states’ net metering policies were established through legislation. State laws commonly require the state public utilities commission to adopt administrative rules to implement net metering.
• Some states’ net metering policies apply only to customers of investor owned utilities.
• 43 states currently have net metering policies, including Indiana.
Net Metering
Net Metering Vs. Net Billing
• Net Metering Example• kWh delivered (Energy to Member) = 1200 kWh• kWh received (Energy to Utility) = 800 kWh• Total billed kWh
• 400 kWh x $0.0999 = $39.96 in energy costs
• Net Billing Example• kWh delivered = 1200 kWh• kWh received = 800 kWh• Total billed kWh
• 1200 kWh x $0.0999 = $119.88• 800 kWh x -$0.0555 = -$44.40• $119.88 – $44.40 = $75.48 in energy costs
Tipmont Net Metering Policy
• Tipmont’s policy addressing renewable generation at member’s location uses net metering
• If a member generates more than they consume, net energy accumulates as a kWh credit and is banked to use in following months
• If a member generates more kWh than they consume during the calendar year the banked kWh are paid to the member at the member’s retail rate
• Generation systems are limited 10kW in size (A waiver can be requested for systems 10 kW - 25 kW)
• Tipmont REMC Currently has 7 Tipmont members interconnected –one wind, and 6 solar
Interconnection Agreements
• Agreement between the member and the utility for safe interconnection
• Require additional liability insurance to be added to your homeowners policy
• Permits utility access to your system at all times
• Require a disconnect that is accessible to your utility
• Must notify your utility if you make any modifications or additions to your generation system
• Solar system capacity restrictions
Tipmont Offers Community Solar
Tipmont offers an alternative to the traditional solar installation
Community Solar Overview
• Community solar allows participation by members who may have physical, financial, or other limitations for installing solar on their own property.
• Community solar allows members to utilize a solar energy system installed off site and benefit from its output remotely through billing and accounting mechanisms.
• Tipmont will design and operate a community solar program that is open to voluntary participation by our members.
Why Community Solar?
Response to Member Interest
• High member interest during public meetings over past several years
• Continue to receive inquiries from members about solar and other renewables
Costs
• Costs to install solar continues to decline
• In some cases solar power cost is on par with retail electric rates
• Community projects share initial costs making ownership more affordable
• Interest has driven availability of types of project support
• Wider variety of choices in equipment and pricing structures
Trust
• Tipmont is already trusted source for electric – providing service to members for 75 years
• Positioned to be trusted source for solar
“Right thing for members”
Wholesale Power Cost Trend
Scenario With Zero Panels Subscribed
Scenario With 50% Panels Subscribed
Scenario With 100% Panels Subscribed
Proposed Solar Array
• 100 kW array, 240 panels, 410 watts each
• south of Linden headquarters
• on Tipmont-owned property
• room for additional panels in same area, up to ~ 200 kW
• proximity to office provides visible connection between solar array and Tipmont REMC
• opportunity for member tours, media visits, community events, employee training
• Constructed, operated, and maintained by Tipmont
Member Agreement
• $1250 to lease output per panel
• One time payment or 1, 2, or 3 years to finance
• May lease up to 50% total usage but no more than 10 panels
• Agreement for term of 25 years
• Can expect an average of $5.00 credit per month in the first year
• Credit will increase as rates change over time
• Panel stays with member if member moves to new Tipmont location
• Option to transfer panel to another member or back to Tipmont
• Array is owned, operated, and maintained by Tipmont
Member Financial Impact
Community Solar payment $1,250.00
Total Projected Production (25 year lease)
14,154 kWh
Calculated cost per kWh $0.08831
Estimated time to recover initial payment
15.84 years
Projected avoided costs(25 year lease)
$2,280.70
Projected Gain $1,030.70
Financing Options
Term 0 1 year 2 years 3 years
Interest Rate - 5% 5% 5%
Monthly Payment - $107.01 $54.84 $37.46
Total Cost of Panel $1,250 $1,284.12 $1,316.16 $1,348.56
Members who elect to finance their solar panel subscription over a 1-3 year term will receive a ‘solar panel charge’ as a line item on their monthly electric bill.
Progress to Date
• Array construction was completed on Oct. 6th, 2014
• Community Day and Solar Open House – Oct 10th
• Ribbon cutting
• Approximately 100 in attendance
• Media coverage
• Panels sold to date
• 45 agreements signed
• 21 agreements in progress
RAIS PV Ground Mount System
Construction – Anchors
Construction – Rail Assembly
Construction – Module Installation
1
Construction – Module Installation
2
Construction – Module Installation
3
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Community Day Ribbon Cutting
Thank you
Questions?
Jason Monroejmonroe@tipmont.org
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