1 rudolph/libbe solar. 2 our perspective on solar in ohio ohio has the foundation for rapid solar...
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Rudolph/Libbe Solar
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Our Perspective on Solar in Ohio
Ohio has the foundation for rapid solar growth (distributed generation)– Existing electrical infrastructure already exists in our
state– Manufacturing backbone that follows solar production
curve– sREC market (preserve the current RPS under SB221)– Projected rising power cost
ITC preservation is key to continued solar growth in Ohio
Balance of System Cost (B.O.S.)– Continue to decrease moving solar to “grid parity”– Consolidation on component side inevitable– Component price competition is fierce
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Ohio’s Solar Potential
Building generating resources here will:– Attract jobs; 1 – 2MW project ~ 60 construction &
300 manufacturing jobs– Offers business stable and low cost power– Retain assets in Ohio that would otherwise be built
elsewhere Ohio can lead the nation and world in solar
– Germany/Japan/China– Ohio has the complete spectrum of solar “services”
• Developers & Installers• Manufacturing – all components• Financing, Accountants, Attorneys, etc
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Why our customers want solar?
Rudolph Libbe offers a deal structure with no capital outlay by site host
Costs for power are known in advance, with predictability in array output– PPA’s have pre-determined energy prices ($/kWh)– Cost escalators also agreed in advance– Protection from Electric Rate increases
In many cases, opportunities exist to lower energy cost– Fixed cost escalation below historical average trends
for utilities Sustainability image (Customers, suppliers,
media) Investment Potential
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Key Criteria for Solar Project Host
Suitable site– Location in a desirable solar market
• Weather• Conventional power prices• Subsidies
– Available for solar development• Undeveloped land or “un-useable” land• Rooftop• Parking area
– Long-term control of site, either through ownership or lease
Willingness to commit to long-term PPA or array lease
Creditworthiness (important to secure external financing)
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Making a Solar Deal Happen
Proj
ect R
even
ues
Project Costs
Investor Return Expectations
• Power sale revenue• SREC revenue• Lease revenue
• System design• Construction cost• Component cost• O&M cost
• Project equity• Take-out debt
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Balance of System Roadmap
2007 2008 2009 2010 2011 2012$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
Rudolph Libbe CostsIndustry Costs SEIA Oct 2011
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Solar Project Structures
Power Purchase Agreement
• Third-party owner develops power plant on host site
• Host contracts to purchase power for 20-25 years
• Well-suited for corporate hosts
• Incentive risk borne by project owner
• Allows solar benefit without capital
Solar Lease
• Third-party owner develops power plant on host site
• Host enters into long-term lease for power plant
• Option to buy at end of lease term
• Well-suited for municipal utilities
• Universities• K-12
Direct Ownership by Host
• Host contracts for power plant on site it controls
• All incentives accrue to host
• Power is virtually free after plant is operating
• Host must have tax capacity to fully monetize investment incentives
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Contact Information:
Jason SlatterySolar Team Leader
Rudolph/LibbePhone: 419-725-3104
Fax: 419-837-9373Email: [email protected]
Website: www.rudolphlibbe.com
The information contained in this presentation is confidential and privileged information. It may not be used or disclosed to any other group or individual with out written consent from Rudolph Libbe.