Challenges and Successes on the Path toward a Solar-Powered Community

Denver, Colorado Includes case studies on:• DevelopingCreativeFinancingforMunicipalInstallations• IntegratingSolarintoCityPlanningandZoning• SupportingState-LevelLegislationforSolarFinancing• SupportingBoulderCounty’sZero-EnergyAffordableHousingProject• EngagingSolarIndustryonLocalMarketDevelopmentNeeds

October2011

Solar in Action

DenverwasdesignatedbytheU.S.DepartmentofEnergy(DOE)onMarch28,2008,asaSolarAmericaCity.Asthelargestcityinastatewithprogressivegovernmentprogramsandthefifthbestsolarpotentialinthenation,Denverwasuniquelypositionedtobecomealeaderintheburgeoningsolarmovement.Atthetime,Denver’ssolarresourcesandactivitieswereasfollows:

• Thecityhadaninstalledphotovoltaic(PV)capacityoflessthan1megawatt(MW).

• Denverhadbeguntoimplementanambitioussolarprogramforcityfacilitiesaspartofthe2006GreenprintDenverActionAgenda,acomprehensiveplanforsustainabledevelopment.

• TheStateofColoradopassedAmendment37andHouseBill1281legislation,which,atthetime,increasedtheRenewablePortfolioStandard(RPS)forColoradoto20%by2020.

• Colorado’sRPSandsignificantutilityrebatescreatedamarketthatledtodramaticgrowthinthesolarindustry.

Building Partnerships and Setting Goals TheSolarAmericaCitiesawardin2008jump-startedDenver’ssolarprogram.ThecityalreadyhaddevelopedasustainabilityofficecalledGreenprintDenver,aninitiativetointegrateenvironmentalimpactconsiderationsintothecity’sprogramsandpolicies.DenverintendedtocapitalizeonColorado’sprogressivegovernmentprogramsandtremendoussolarpotentialtochangethecity’senergymarketbyestablishingsolarasamainstreamenergyresourceoption.Workingwithitspartners,thecitydevelopedthefollowinggoalsforitssolarprogram:

1.Createanimplementationplantodeterminehowmunicipalgovernmentcanpromoteandremovebarrierstosolarinstallationsinresidential,commercial,andgovernmentsectors.

2.SupportthecreationofnewjobopportunitiesinthesolarenergyindustryforMetroDenverresidentstomeettheexpectedincreaseindemand.

3.Educatethegeneralpublic,performpublicoutreach,anddevelopwebsitematerialsthatwouldincreasepublicawarenessregardingthebenefitsofsolarenergy.

Denverpromotessolarinthecommunitythroughhighlyvisibleinstallations,suchasthis2-MWPVsystematDenverInternationalAirport.Photo from Denver International Airport, NREL/PIX 18042

Cover photos from iStock/14933255, Denver skyline

Denver’s Starting Point

About the U.S. Department of Energy’s Solar America Communities program: TheU.S.DepartmentofEnergy(DOE)designated13SolarAmericaCitiesin2007andanadditional12citiesin2008todevelopcomprehensiveapproachestourbansolarenergyusethatcanserveasamodelforcitiesaroundthenation.DOErecognized thatcities,ascentersofpopulationandelectricityloads,haveanimportantroletoplayinacceleratingsolarenergyadoption. Asaresultofwidespreadsuccessinthe25SolarAmericaCities,DOEexpandedtheprogramin2010bylaunchinganationaloutreacheffort,theSolarAmericaCommunitiesOutreachPartnership.AstheSolarAmericaCitiesprogramevolvedtoincludethisnewoutreacheffort,theprogramwasrenamedSolarAmericaCommunitiestoreflectDOE’scommitmenttosupporting solarinitiativesinalltypesoflocaljurisdictions,includingcitiesandcounties.VisitSolarAmericaCommunitiesonlineat www.solaramericacommunities.energy.gov.

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4.MakesolarenergyasignificantelementinmeetingGreenprintDenvergoals.

Projectpartnersinclude:

• BoulderCounty

• CityofAurora

• CityofBoulder

• ColoradoRenewableEnergySociety

• Governor’sEnergyOffice

• LowryEnergyInitiative

• MetroMayorsCaucus

• SmartEnergyLivingAlliance

• XcelEnergy

AfterbeingdesignatedaSolarAmericaCity,Denverworkedwithitspartnerstodevelopasolarimplementationplan.Thefollowingwereidentifiedaskeyinitialactivitiestomeetthecity’ssolargoals:

• Developalow-interestsolarloanprogramtomakesolarinstallationsmoreaffordableforthepublic.

• Conductbeginningoutreachactivitiestoeducatearearesidentsaboutprogramsdevelopedasaresultofthisproject,aswellasexistingsolaropportunities.Aspartofthisactivity,thecitydevelopedascopeofworkwiththe

SmartEnergyLivingAlliance(SELA)toprovidepublicsolaroutreachandeducationservices.

• ProduceaSolarMasterPlantoidentifyDenver’ssolarcapacityandprioritizesolarinstallationsforcityfacilities.

• ReviewtheDenverzoningcodetominimizenegativeimpactsonsolaraccessibility.

• IncludesolarlanguageintheBetterDenverbondprojectcriteria.

The300-kWPVsystemattheDenverConventionCenterwasoneofthefirstlarge-scalesolarprojectsonacity-ownedfacility.Thissystemservesasavisiblereminderofthecity’scommitmenttosolarformillionsofvisitorstothecenterannually.Photo from Namaste Solar Electric, NREL/PIX 18044

InstalledPVcapacityincreasefromDecember31,2007, toDecember31,2010

Installed PV (kW)

Installed CapacityDenver

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15,000

20,000

30,000

5,000

25,000

PV Capacity (Residential)PV Capacity (Non-residential)

2007 2008 2009 2010

kW

Year End

3Solar in Action

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Accomplishments and HighlightsDenverfocuseditsenergyacrossmanyaspectsofthesolarindustry,includingparticipatinginlegislativeactivities,conductingface-to-facepublicoutreach,andworkingtochangecitycodetoremovebarrierstosolartechnologyimplementation.HighlightsofDenver’saccomplishmentsincludethefollowing:

• Atotalincreasetonearly10MWofcumulativecapacityforPVsystemsinstalledoncityfacilities

• Integrationofsolarconsiderationsintocityplanning,includingconstructionofnewcityfacilities,aswellasintothecity’srevisedzoningcode

• Supportofmanysuccessfulstatelegislativeactivities,includinganincreaseoftheRPSto30%by2020;astatewideCommunitySolarGardensprogram;andallowingthird-partyownershipofresidentialPVsystems.

Case Studies: Successes and ChallengesDeveloping Creative Financing for Municipal Installations TheCityofDenverhasaggressivelypursuedtheimplementationofPVsystemsoncitygovernmentbuildings.

Ithasusedcreativefinancing,suchasNewMarketTaxCreditsandPowerPurchaseAgreements(PPAs),tofundtheseefforts.ByfindingadeveloperabletolayeratraditionalPPAwithNewMarketTaxCreditsavailableforprojectsinlow-incomecensustracts,thedeveloper’scostofcapitalwasreduced,andthosesavingswerepassedontothecity.Usingthesefinancingstrategies,Denverwasabletosecurea1-MWPPAforinstallationsat13citybuildingsatpricessignificantlybelowthecostoftraditionalelectricityfromthegrid.

TheColoradoConventionCenter’s300-kWrooftopPVsystemcameonlineinearly2009.AninteractiveeducationaldisplayofthesystemwasdevelopedforthosewhovisittheDenverfacility.Soonafter,constructionwascompletedonthefirstphaseofajointpartnershipwithDenverPublicSchools(DPS).DenverandDPSissuedajointRequestforProposals(RFP),workedtogetheronvendorselection,andcollaboratedoncontractnegotiationstofindeconomiesofscaleandreduceadministrativecosts.DPSisplanningtoinstallacumulativetotalof2.9MWon26schoolbuildingsbytheendof2011.

DenverInternationalAirport(DIA),acityfacility,alsoannouncedthatanew4.5-MWPVsystemwillbeinstalledin

2011.ThiswillbringDIA’stotaltomorethan8MW,afteranew1.6-MWPVfacilityattheairport’sfuelfarmopenedinearly2010,anda2-MW,single-axistrackingsystemneartheairportentranceopenedin2008.Twoofthesystemsusedauniquefinancingstructureinwhichtheairportprovidedalow-interestloantothedevelopertoreducethecostofthePPA.

Integrating Solar into City Planning and Zoning Thecitytookaseriesofactionsthroughoutitsowngoverningbodytofostersolartechnologyimplementationandtoremovebarrierstoitsadoption.

Earlyon,theDenverteamfocusedongettingsolartechnologiesconsideredforallnewcityconstruction.Forexample,throughtheBetterDenverSustainabilityCommittee,Denverisnowevaluatingeachprojectdevelopedforthecityforpotentialinclusionofsolartechnologies,includingallconstructionunderthecity’snew$550-millioninfrastructurebondprogram.

Next,DenverstreamlinedthesolarinspectionprocesstoallowPVsystemstobeviewedascompleteelectricalsystemsratherthaninspectingeachoftheindividualelectricalcomponents.

ThisPVarrayhas465solarpanelssplitbetweenroofsonthesoutheastandsouthwestwingsoftheDenverMuseumofNatureandScience.TheinstallationwasmadepossiblethroughacollaborationofHybridEnergyGroup,Partnership forSustainability,XcelEnergy,andNamasteSolarElectric.Photo from Denver Museum of Nature and Science, NREL/PIX 18045

Denver focused on getting solar technologies considered

for all new city construction.

TodayDenveronlyverifiesthePVsystemdesigntoensuretheconnectionpointstothegrid,whichrequiresashutoffswitchbetweenthepanelsandtheinverter,andanotherbetweentheinverterandthemeter,ratherthanreviewingalltheelectricalconnectionsbetweenpanels.

Inaddition,asapartofthecity’sefforttorewriteits60-year-oldzoningcode,itconductedasolaraccessanalysistodetermineifcodechangesmightadverselyaffectPVsystemsthroughthecreationofshadingbarriers.Severalroundsofmodelinghavedemonstratedthatnonegativeimpactwillresultfromthenewcodechanges.Theresultsrevealedaminordecreaseinaveragesolaraccess(roughlyonehalf-hourperday)atmaximumbuildoutofthenewcode.Revisionsbetweendrafts,includingeliminatinggablesonthenorthendofpropertiesandreducingnorthwallheights,wereaddedtoproducesolaraccessimprovementsbeforethecodewasfinalized.

Finally,theteamdevelopedaSolarMasterPlanDenver,whichincludesinformationaboutthesolarpotentialandcostsofsolarPVandsolarhotwateratmunicipalfacilitiesacrossthecity.Informationonelectricandnaturalgasusewascollectedforeachbuilding,androofinspectionswereconductedtodeterminethesolarpotentialforeachrooftop.

Supporting State-Level Legislation for Solar Financing TheDenverteamparticipatedinavarietyofstate-levellegislativeactivitiesthatenhancedthecity’seffortstoincreasesolaradoption.

HB10-1328,Colorado’sNewEnergyJobsCreationAct,createsa‘property-assessedcleanenergy’(PACE)programacrossColoradotofinanceupto$800millioninsolarthermal,solarelectric,andotherrenewableenergyandenergyefficiencyimprovementsforresidentialpropertiesinparticipatingcountieswherethenewenergyimprovementdistricthasbeenauthorized.Unfortunately,federalregulatoryuncertaintysurroundingPACEfinancingprogramshaslefttheoutcomeofHB10-1328inlimbo.ThenationaldiscussionsrelatedtoPACEfinancinghasforcedBoulderCountytoputtheresidentialcomponentofitssuccessfulClimateSmartLoanProgramonhold.Denvercontinuestomonitortheissue,andplanstoevaluatethefinancialimplicationsofparticipationinstatewideandmulticountyPACEdistricts(authorizedbyHB10-1328andSB10-100,respectively).

Onthepositiveside,programdevelopmentcontinuesonHB10-1342,whichauthorizedCommunitySolarGardensin

Colorado,aSolarSharesprogramthatwillallowresidentswithoutsufficientsolaraccessontheirownproperty,orthosewhodonotownproperty,topurchasesharesinanoffsitesolarinstallationthatwillbeallocatedtotheirutilitybills.

OneofthebiggestchallengesforsolarfinancingwasColoradoPublicUtilitiesCommission(CPUC)rulesgoverningXcelEnergy’sSolar*Rewardsprogram.Theprogramoffersrebateswiththepurposeofreducingthecostsofsolarinstallations.WrittenwithoutPPAsinmind,CPUCrulesrequiredcitiestotakeonthefullrepaymentliability,whichwouldneedtobeappropriatedratherthanpassedontothedeveloper.DenvertooktheleadandworkedwithXcelandthecommissiontoletgovernmentsassignrightsandliabilitiesassociatedwithsolarrebatestosolardevelopers.GovernmententitiesacrossColoradocannowtakefulladvantageofthefinancialincentivesofPPAsandmoreeasilyparticipateintheSolar*Rewardsprogram.

Supporting Boulder County’s Zero-Energy Affordable Housing Project Denver’stechnicalassistanceteamattheNationalRenewableEnergyLaboratory(NREL)completedareportforColoradoHousingAuthoritiestodeterminethepotentialofinstallingsolarinaffordablehousingdevelopments.Thefindingsofthisreportforimplementinga153-unitnetzero-energyresidentialhousingdevelopmentinLafayette,CO,wereadoptedbytheBoulderCountyHousingAuthority(BCHA)anditsprojectpartners.

NRELstaffhelpedBCHAdesignthreeprototypehomesin2008usingmodularsystems-builtconstruction.Theprimarygoaloftheprojectwastotestanumberofhigh-performance

TheDenverteamparticipatedinavarietyofstate-level legislativeactivitiesthatenhancedthecity’seffortstoincreasesolaradoption.Photo from Warren Gretz, NREL/PIX 06202

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buildingsystems,renewableenergysystems,andsystems-builtassemblymethodstodevelopareplicablemodelforaffordablenetzero-energyresidentialhousingatatotalconstructioncostunder$115persquarefoot.

Withtheinclusionofa4-to5-kW,roof-mountedPVsystem,thehomesachievenetzeroenergyoverthecourseofayear.

Engaging Solar Industry on Local Market Development Needs Denvercommissioneda“SolarMarketAnalysis”reporttoassesstheparticipationofexistingDenverareabusinessesinthesolarindustrysupplychain,andidentifychallengesandbarrierstoexpandingparticipation.Thereportwasdevelopedfromasurveyoflocalinstallersandothersolarstakeholders,andprovidedrecommendationsforcitysupport.

Thesolarindustrysectorsthatwerecontactedinthisevaluationincludedtechnologymanufacturing,installation,integrators,andserviceproviders.Thisworkisacontinuationofthe“GreenCollarJobsintheU.S.andColorado—EconomicDriversforthe21stCentury”reportdevelopedbytheAmericanSolarEnergySocietyandManagementInformationServices,Inc.inJanuary2009.

TheresultsoftheanalysisshowedthatDenverwasalreadywellaheadofothersimilarmunicipalitiesinreducingbarrierstosolar.Specifically,thefollowingpercentofrespondentsidentifiedsolarmarketbarriersasfollows:65%identifiedstateorcityregulationsandfees;65%citedlackofcustomers;51%identifiedlackofknowledgeofsolarenergybenefits;41%mentionedbuildinginspectors;38%identifiedlackoffinancing;32%wereconcernedaboutcosts;24%identifiedtheutilitysolarrebateprogram;22%expressedconcernover“excessive”competition,unqualifiedinstallations,andshoddyworkmanship;and22%complainedaboututilitycompanyresistance,misinformation,orconflictofinterest.Theresultsofthisanalysiswillbeusedtoimplementchangeincitypoliciesandguideoutreachactivities.

Top Takeaways• BetweenthenegativeimpactofnationalissuesondevelopmentofalocalPACEprogram,andthepositiveimpactofstatelegislationtopromotethesolarindustryinColorado,Denverhaslearnedtheimportanceofworkingwithexternalpartnersonissuesthatwillsupportthesolarindustry.

• Denverhadlimitedexperiencein negotiatingPPAspriortotheSolar AmericaCitiesaward—thecomplexity oftheagreementsandlocalconditions, suchasbalanced-budgetlegislationand utilitiescommissionrules,requirecareful understandingbeforeinitiatingnewsolar projects.

• Denverdiscoveredtheimportanceof externalpricingfactorsontheemergence ofthesolarmarket.Denver’srelatively lowelectricityprices,lackoftime- of-day/tieredpricing,andrapidly declininglocalincentivescreated particularburdenstoprojectcompletion, despiteeffortstoincreasetheviabilityof solar.

• Theeconomicrecessioncreated particularchallengestopromotingsolar. Whileearlierprojectscouldbejustified onNetPresentValuegrounds,declining

municipalandindividualbudgetsmadeimmediatecost-neutralityapriority.Inotherwords,budgetconsiderationsnowrequiresolarinstallationstobecash-positiveinyearone,notjustoverthe20-yearterm.Useofcreativefinancingapproachesandthird-partyownershipmodelsmakeprojectsfeasible.

Next StepsDenvercontinuestopushforsolaradoptiononmanyfronts.Someactivitiesunderwayincludethefollowing:

• DenverhasbeenworkingwiththeDenverMuseumofNatureandSciencetohostenergyefficiencyandsolarenergyoutreacheventsatthemuseum.Bytappingintothemuseum’smembersandvisitors,thecityexpectstoidentifyasegmentofresidentswithparticularinterestandenthusiasmforsolarenergy.

• ThecityisaddingmoresolarcontenttotheGreenprintDenverwebsite,withthegoalofprovidingrelevant,

Denver has increased the profile of solar from a luxury

to an important means of reaching

environmental sustainability

goals.

appropriate,andunderstandableinformationaboutthebenefitsofsolartechnologyandtheindustry.

• TopromoteresidentialsolardevelopmentinlieuofaPACE-styleprogram,DenverisworkingtoleverageadditionalDOEprogramstofindotherfinancingsolutionsthatcansupportsolarinstallations.

• ThecityiscontractingwithavendorwhowillprovidethesystemfortheSolarLightsprojectforthecity.SolarLightsisanartproject,thatusesPVandmulti-mediatechnologies,toeducateandpromotesolartothepublic.

• ThecityhasinitiateddiscussionwiththeMetroMayor’sCaucusaboutexpandingeducationalinformationforlocalgovernmentsonmunicipalsolarprojects.

• PVpermitswillbethefirstpermitcategoryofDenver’sonlinepermittingsystemtoberolledoutin2011.

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For more city information, contact: ScottMorrissey,GreenprintDenverDeputyDirectorEmail:Scott.Morrissey@denvergov.orgTelephone:720-865-9047 Formoreinformationongoingsolarinyourcommunity,visit Solar Powering Your Community: A Guide for Local Governments at http://solaramericacommunities.energy.gov/resources/guide_for_local_governments/

Formoreinformationonindividualcities’solaractivities,visitwww.solaramericacommunities.energy.gov/solaramericacities/action_areas/

Additional Resources• GreenprintDenversolarwebsite:

www.greenprintdenver.org/energy-emissions/solar/

• CityofAuroraPlanningandDevelopmentServicewebsite:www.auroragov.org/AuroraGov/Departments/PlanningAndDevelopmentServices/ComprehensivePlanningDivision/EnvironmentalManagement/Rebates/433740?ssSourceNodeId=1904&ssSourceSiteId=621

EERE Information Center1-877-EERE-INFO(1-877-337-3463)www.eere.energy.gov/informationcenter

Printedwitharenewable-sourceinkonpapercontainingatleast50%wastepaper,including10%postconsumerwaste.

PreparedbytheNationalRenewableEnergyLaboratory(NREL)NRELisanationallaboratoryoftheU.S.DepartmentofEnergyOfficeofEnergyEfficiencyandRenewableEnergyOperatedbytheAllianceforSustainableEnergy,LLC

DOE/GO-102011-3249•October2011

AnnArborAustinBerkeleyBostonDenverHoustonKnoxvilleMadisonMilwaukee Minneapolis-SaintPaulNewOrleansNewYorkOrlando Philadelphia PittsburghPortlandSacramentoSaltLakeCitySanAntonioSanDiegoSanFranciscoSanJoséSantaRosaSeattle Tucson

Clockwise from top left: Photovoltaic system in Philadelphia Center City district (photo from Mercury Solar Solutions); rooftop solar electric system at sunset (photo from SunPower, NREL/PIX 15279); Premier Homes development with building-integrated PV roofing, near Sacramento (photo from Premier Homes, NREL/PIX 15610); PV on Calvin L. Rampton Salt Palace Convention Center in Salt Lake City (photo from Utah Clean Energy); PV on the Denver Museum of Nature and Science (photo from Denver Museum of Nature & Science); and solar parking structure system at the Cal Expo in Sacramento, California (photo from Kyocera Solar, NREL/PIX 09435)