Workshop E. Financing & Implementing Solar (PV) & Storage Projects in Ohio s Changing Energy Climate. Tuesday, February 19, :45 a.m.

Transcription

1 Workshop E Financing & Implementing Solar (PV) & Storage Projects in Ohio s Changing Energy Climate Tuesday, February 19, :45 a.m. to Noon

2 Biographical Information Mike Foley, Director of the Department of Sustainability Cuyahoga County, 2079 E. 9th St., Cleveland, OH Mike Foley is the first Director of the Department of Sustainability for Cuyahoga County. He was appointed to lead the office in February 2015 by Executive Armond Budish after having served in the Ohio General Assembly from Foley represented the 120,000 people of the 14th House District and was active in the legislature on environmental, utility, revenue and budget issues. Term limits prevented Foley from running for office after Prior to being in the General Assembly, Foley was Executive Director of the Cleveland Tenants Organization (CTO) for almost ten years and has extensive experience in affordable rental housing issues both locally and those involving national policy. Before CTO he was the Court Administrator for Cleveland Municipal Housing Court. Mike has been married to his wife Chris for 31 years, and they have 4 children. Patrick Smith, Vice President, IGS Solar 6100 Emerald Parkway, Dublin, OH Patrick.Smith@igs.com Patrick joined IGS in 2013 as one of the first employees of its distributed generation companies. He helped to establish IGS Solar in 2015, which has now grown to one of the largest solar development and financing companies in the US. Patrick is currently responsible for commercial business development of IGS Solar across the U.S. with a focus on strategic national accounts. Prior to joining IGS, he held sales and operations management roles within the electric power and utility construction sectors. Patrick has nearly 20 years of experience with start-up, middle-market, and global companies. A proud OU Bobcat, Patrick holds two degrees from Ohio University. He and his wife Erin have 3 children and reside in Gahanna, OH.

3 Solar Industry & Storage Updates

4 IGS Introduction

5 Introduction to IGS

6 Our Companies

7 IGS Solar Portfolio Overview

8 IGS Solar Our Services

9 Solar Industry Snapshot

10 Solar is Viable Nationally

11 Most Americans Support Green Activity

12 Strong Growth Projections

13 Investment Tax Credit Impact Community Support for Solar

14 Solar is a Key Contributor to Job Growth

15 Solar Industry Creates Jobs

16 Solar Costs Less Every Year Community Support for Solar

17 Solar Leads New Renewable Capacity

18 The Shift To Renewables

19 The Shift To Renewables

20 US is a Leader in the Global Solar Market

21 Considerations for Solar

22 Solar in Ohio Solar Installed: 190MW National Ranking: 28th Homes Powered: 22,000 % of State s Electricity: 0.24% Solar Jobs and Ranking: 6,518 (11th) Solar Companies in State: 292 Total Investment: $565 million Growth Projections: 1,023MW in 5 years (18 th in US)

23 Ohio s Electric Rates

24 Ohio s Solar Resources

25 Net Metering Net metering is allowed System size is limited to 120% of usage Recover only avoided costs Cannot offset demand charges or capacity Retail suppliers must provide credits under separate contract Can net meter to adjacent parcels

26 Considerations for Going Solar General Considerations: Do you have sustainability goals? Is immediate savings a requirement, or a hedge against volatility? Is there a budget for sustainability in marketing, procurement, operations? Have you done other EE measures? Do you have year round consistent usage? Are you supplied by the utility, a municipality or a retail supplier? For Employee Attraction / Retention: Millennials see a company s commitment to responsible business practices as a key factor in their employment decisions: 75% would take a pay cut to work for a responsible company 83% would be more loyal to a company that helps them contribute to social and environmental issues 76% consider a company s social and environmental commitments when deciding where to work 64% won t take a job from a company that doesn t have strong practices

27 Consider The Ownership Structure For PPA s: Do you own or lease? Do you have access to a field or rooftop? Are you able to sign a multi year contract? Does your roof have +15 years of life? Do you have investment grade credit? For Ownership: Can you monetize the tax benefits? Do your ROI hurdles match the investment? Is the best use of your capital? Who will mange contracting, construction, performance and maintenance?

28 Why Now?

29 Case Study

30 Cuyahoga County Solar Farm

31 Project Overview o 3.99MW / 17 acres / 35,000 solar panels o Built on closed landfill in Brooklyn, OH o Cuyahoga County / Cleveland Public Power / IGS Solar o Operates under a 10 yr yr. PPA o Most Ohio project of its kind o 5m kwh per year enough for ~500 homes

32 Project Overview o Project History o Reasons for Going Solar o Challenges and Successes o Development Process o Results o Winning the 2018 Project of the Year

33 What s Next for Ohio?

34 Ohio Controls its Own Destiny Net Metering: Maintain a customer s right to selfgenerate, connect to the grid, and reduce grid electricity use Properly value solar electricity and adequately compensate solar customers Rate Design: Empower customers to control energy costs and adopt new technologies that provide utility benefits Maintain a customer s right to reduce their grid electricity use Follow the principles of gradualism, grandfathering, and predictability Interconnection: Govern the process by which distributed energy physically connect to the grid Should be transparent, uniform, streamlined, predictable, and costeffective Incentives: To grow a local industry and bring down soft costs incentive programs should be stable, predictable, and declining over time

35 Solar in Ohio Means Creative Solutions Policy the Industry Can Support Non Net Metered Systems Improved Cost Efficiency Partnering with Munis Realistic Expectations

36 Storage Industry Snapshot

37 Cumulative Energy Storage Deployed

38 Storage Policy Starting on the Edges

39 C&I Storage Growing with Incentive Programs

40 Storage Costs Continue to Plummet Capital cost of a utility scale lithium ion battery storage system sliding another 52% between 2018 and 2030, on top of the steep declines seen earlier this decade. This will transform the economic case for batteries in both the vehicle and the electricity sector. BNEF Long Term Energy Storage Outlook

41 Demand charge is the strongest predictor and battery cost is the second strongest predictor of whether or not a BESS will be economically viable. NREL Commercial energy storage has been the fastest growing storage segment... driven in large part by a single value stream demand charge management. GTM

42 Utilities interest in providing storage options to nonresidential customers was greater providing options for residential customers. The reason non residential customers accounted for 65% of electricity sold by volume and often in peak periods. SEPA

43 Market Economics for Demand Charge Savings

44 Q&A