SEIA Startup Innovation Webinar Series

Transcription

1 SEIA Startup Innovation Webinar Series David Herrmann, Co-Founder, Sun Number LLC Peter Conklin, Vice President, Business Development, Radian Generation Tom Kimbis, VP of Strategy & External Affairs, SEIA

2 SEIA STARTUP INNOVATION WEBINAR SERIES The SEIA Startup Innovation Webinar Series allows SEIA member companies to showcase innovative products and/or services to the full SEIA membership and beyond. The opportunity to present is only open to small or startup SEIA members. If interested in presenting your innovative product/service in the next series webinar, Tom Kimbis at The series is intended as an opportunity for business development for SEIA members and an opportunity for the audience to learn about cutting-edge innovation in the solar space. July 17, Solar Energy Industries Association 2

3 Implications of a Maturing Solar Market: The Need for Innovation in the Solar Asset Management Sector Radian Generation LLC 222 Columbus Avenue Suite 420 San Francisco, CA info@radiangen.com (415) info@radiangen.com (415) p.3

4 Radian Services: Phase 3 Radian Generation Background Operations Radian Generation provides best in class Solar Asset Management services to ensure that solar projects perform technically, contractually, and financially. Operating Experience: Operated, owned, and managed over 40MW of solar projects. Technical advisor for leading utilities, tax investors, and developers for construction management and acquisitions. Development Experience: Developed, financed and constructed over 120MW of solar projects. Signed over 300MW of revenue contracts (Power Purchase Agreements) with top utilities. Capital Raising Experience: Closed over $1.1 billion of project capital (tax equity, debt, and cash equity) for solar projects with leading institutional investors and owners. Independent, Comprehensive, Efficient and Reliable Owner s Advocate info@radiangen.com (415) p.4 4

5 Radian Services: Phase 3 Asset Management Role Operations GTM estimates the service needs for solar projects will reach 146 GW globally by Asset managers serve as an independent advocate for the owner, oversee different project elements, and deliver a comprehensive project outcome. Owners / Investors Asset Manager Project Operations and Maintenance Monitoring, Security, Equipment, etc. Customer, Landlord, Interconnection info@radiangen.com (415) p.5 5

6 Radian Services: Phase 3 What is Asset Management? Operations ASSET OPERATIONS CONTRACT COMPLIANCE FINANCIAL MANAGEMENT SPECIAL SITUATIONS Production monitoring Document management Financial accounting Warranty claims O&M management Permit/license management Cash management Casualty / insurance mgmt. Operational reporting Regulatory compliance Invoice and billing Capex decisions Optimization Project participant relations AR / AP management Production forecasts Insurance management Project budgeting Key performance indicators Legal and claim management Variance analysis Site visits Entity maintenance Auditor management Inventory / asset registry Property taxes Loan servicing Maintenance decisions WREGIS compliance Investor reporting Permit compliance Tax management info@radiangen.com (415) p.6 6

7 Why Does Asset Management Matter? BETTER PERFORMANCE LOWER COSTS REDUCED RISK HIGHER PROJECT VALUE Increased energy production and revenue Decreased operational costs Informed capital expenditure and operating decisions More cost effective than hiring in-house team with same capabilities and experience Scale economies from aggregated portfolio Leverages in-house team to do execute more transactions (development or acquisitions) Continuity and information succession if in-house employees turnover Highly developed infrastructure for financial controls and transparency Dedicated owner s representative Auditable results and performance Portability of systems / records info@radiangen.com (415) p.7 7

8 Macro Changes Affecting Asset Mgmt. Growing Installed Base Record installation growth: Over 13GWs of cumulative installed Solar PV capacity as of 1Q 2014* Growing challenge for developers/owners Past Today Growing Investor Base Tax Equity Developers Lenders Pension Funds REITs YieldCos Tax Lenders Equity Hedge Funds Developers Utilities Securitization Vehicles IPPs Vertical Integration? Do developers need to own the entire supply chain to compete? As solar scales, the decision to vertically integrate will evolve further. * U.S. Solar Market Insight, Q (GTM Research and SEIA) info@radiangen.com (415) p.8 8

9 Opportunities to Innovate Technical Platforms Improve monitoring of all levels of asset performance, not just production. Utilize big data approach to capture trends across larger groups of projects. Automate repetitive tasks to reduce cost structure and errors. Cross Functional Integration Break down functional silos of technical, financial and contractual management to focus on overall outcomes. Create business processes that take a holistic view of project performance to improve decision making. Standardization and Continuity As an industry, develop standardized or open access formats when possible to capture higher efficiencies and encourage innovation. Provide platforms that deliver project continuity that transcends ownership changes to encourage liquidity. Leverage Scale Offer individual owners the benefits of lessons learned from much larger portfolios. Specialization of services allows learning to be shared more rapidly across the industry. Industry growth delivers enough scale to justify higher level of IT investment. Create channels for introducing other new innovations (energy efficiency, storage etc.) info@radiangen.com (415) p.9 9

10 Thank You Radian Generation LLC 222 Columbus Avenue Suite 420 San Francisco, CA (415) (415) p.10

11 Utilizing Data Solutions to Lower Customer Acquisition Costs for the Solar Industry David Herrmann Sun Number

12 Big Data lowers solar costs Recent article by Eric Wesoff on July 9 th announces Sungevity s iquote tool for residential properties. Accurate residential solar installation quote and image based on just a street address Sungevity combines "LIDAR, aerial imagery and real estate parcel data Why is this important GTM estimates that today it costs almost $3000 to acquire a residential customer Good News Tools similar to the Sungevity iquote based on a similar methodology are available to everyone 12

13 Imagery vs. LiDAR Examples of imagery like Google Maps, Bing Maps, and have been used to estimate solar potential LiDAR is not imagery, it is a compilation of elevations for every square meter that are combined to create a digital surface model or DSM DSMs can be processed to produce accurate estimates of the pitch, aspect, size, and impact of shade on a rooftop. Buildings are preprocessed, accessible by address, and the data is inexpensive. 13

14 Solar Radiation layer derived from LiDAR 14

15 Roof Details from LiDAR Plane ID Slope Aspect Area Solar Hours

16 Solution # 1 Sun Number Scores Simplified score for every building between 1 and 100 no need to understand kw or kwh Derived from physical characteristics of roof, local cost of electricity, local cost of solar, and regional climatic conditions Accessible by entering an address prompting an API call to Sun Number database Free to local government and non-profits, pennies per building for solar industry 16

17 Sun Number Scores Example 17

18 Solution #2 Marketing Campaigns Find best homes in area for solar for Direct mail campaigns Door to door campaigns User can create custom definition of solar suitability Numerous social media solutions including personalized URLs with property details 18

19 Example of Marketing Campaigns 19

20 Solution #3 Property Qualification and Proposals Proposal Details include Size of solar suitable area Number of panels that fit on roof Electricity generation estimate ROI calculation Qualification Details include Estimate of energy load Credit qualification Owner Occupied property 20

21 Property Qualification and Proposals 21

22 Sun Number Details Data is currently available for 35 million buildings in the U.S. Interested in working with partners to create solutions for new markets including utilities and real estate solutions For more information on Sun Number please contact David Herrmann

23 Questions Please type your questions into the lower left corner of the window. Click the send button to submit. July 17, Solar Energy Industries Association 23