city of flagstaff renewable energy development april 30, 2015 1
TRANSCRIPT
City of FlagstaffRenewable Energy Development
April 30, 2015
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Renewable Energy Development Presentation
Renewable Energy Portfolio City’s Financing Mechanisms
Energy Service Company Power purchase agreement Lease to Own
Lessons Learned
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Renewable Energy Portfolio 2.135 MW Location Size kW Type System COD
City Hall 14.4 Custom Solar PV Film 2006
Wildcat WWTP 292 Cogeneration 2007
Aquaplex 140 Solar Thermal 2009
Fire Station 7.5 Solar PV Roof Mount 2009
Wildcat WWTP 285.23 Solar PV Tracking Ground Mount
2011
Wildcat WWTP 283.25 Solar PV Tracking Ground Mount
2011
City Hall 200.5 Solar PV Carport 2011
Aquaplex 93.51 Solar PV Rooftop 2011
Wildcat WWTP 231 Solar PV Ground Mount 2013
Rio de Flag 310.2 Solar PV Roof and Ground Mount
2013
Aquaplex 277.2 Solar PV Carport 2013
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Financing Mechanisms
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Energy Service Company(ESCO)
15 year contract initiated in 2004:- Cogeneration unit- Solar film- City secured loan- Performance
guaranteed in year 1
- Bundled efficiency and renewable projects for economy of scale
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Power Purchase Agreement (PPA)- Long-term energy
planning- No up-front capital cost
- 3rd party incurs risk- responsible for operation and
maintenance - utilizes utility, federal and
state tax incentives
- Project initiated in 2010- Projects cash positive in year- APS incentives vary between
$0.9 and $0.12 per kWh
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Lease to Own
15 year contract initiated in 2013.- Secured financing
at low interest rate
- Utility incentives, no sales tax and financing made project cash positive in year 1
- Outsource operation and maintenance
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Lessons Learned
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Thoughts on Financing Models
PPA Lease to Own
Customer service Pay sales tax Must provide 24 hour access
to site Option to purchase
equipment at fair market value
Pending property tax issues Read the fine print
Customer service No sales tax APS incentives Outsource Operation and
Maintenance outsourced Cash positive in year 1 (out
performed pro-forma) 3rd quarter of the fiscal year $117 received in incentives