Download - OUC community solar 4-8-14
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Making Community Solar Work Jennifer S. Szaro Orlando Utilities Commission
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
• Began serving utility customers in 1923
• Provides water and electricity
• Service population of over 230,000 throughout Orange and Osceola Counties
• Governed by a 5-member board that includes City of Orlando Mayor
• Net Available Generating Capacity of 1,743 MW
• 2nd largest municipal utility in Florida
About OUC
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Reliable
Affordable Sustainable
An “Ideal” Utility Portfolio
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
OUC’s Solar Projects
Project Capacity (KW)
Stanton Solar Farm 5,910
Customer Incentives 4,200
Commercial Aggregation 418
Community Solar 400
Total 10,928
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
OUC’s Community Solar Farm Model
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Marketing Plan
Customer Focus Groups:
• General customer pool
• “Green-minded” customers
Critical Needs Identified:
• Rate stability
• No upfront investment
• Portability • No
maintenance • Visible
access to the site
Marketing Approach:
• Phase 1: Press release and media
• Phase 2: Targeted marketing to site-related barrier customers
• Phase 3: Mass marketing
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Gardenia Community Solar Program Details
• 400 KW covered parking array located at OUC’s Gardenia facility
• Open to residential and small commercial customers
• PPA rate of $0.18/KWH • Customer rate of $.13/KWH • OUC bills customer fixed rate for their
share of output over 25-year term • Project needed be 110% subscribed
before construction could begin • Project sold out in 6 days with help of
press release and earned media • Began operation October 2013 • 84 customers on waiting list (832 KW)
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Subscription Process
Customer pays initial reservation deposit of $50 at sign up
Shares sold in 1-KW increments (15 KW Max)
Customers who move within OUC territory may stay on program
Initial customer deposit is refunded after 2 years
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Billing Approach
Monthly Master Production Meter
Reading = 50,000 KWH
1 KW
400 KW Community Solar
Farm
Customer’s Share (1 KW/400 KW) x 50,000 KWH
• Customers pay $.13/KWH rate on a monthly basis
• 1st year estimated production • One master meter read
monthly (OUC hedges output) • Participating customers are
billed based on their share of production
• Customers receive virtual net metering benefits
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Lessons Learned
• Needed to identify methods for improving contract negotiations • Reverse auctions may offer more transparent, competitive
bidding • Project Siting - 3rd party locations add substantial complexity
Procurement
• Challenged to reduce or eliminate subsidies • Rate stability was most critical program feature • Could consider a slightly shorter term • Unify billing cycles if you can – smart meters help
Program Design
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Next Steps
• Completed vendor pre-qualification process on March 31st
• Pershing Community Solar Project pre-bid meeting scheduled for April 14th
• Reverse auction to be held in May 2014 • Evaluating rate design and terms • Goal to install next project by end of 2014
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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Questions?
Jennifer S. Szaro Manager, Renewable Energy
OUC (407) 434-2100 [email protected]
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