how ^ to bring community solar to your members
DESCRIPTION
and why. How ^ to bring Community Solar to Your Members. Mark Vogt President & CEO Wright-Hennepin Cooperative Electric Association Rockford, Minnesota Prepared for Oregon Rural Electric Cooperative Association Annual Meeting December 5, 2013 Salem, Oregon. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/1.jpg)
How ^ to bring Community Solar to Your Members
Mark VogtPresident & CEO
Wright-Hennepin Cooperative Electric AssociationRockford, Minnesota
Prepared forOregon Rural Electric Cooperative Association Annual Meeting
December 5, 2013Salem, Oregon
and why
![Page 2: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/2.jpg)
Background about WH
• One of 44 distribution co-ops in Minnesota
• 40,321 members• 61,540 meters• Residential customers = 60%• Renewable Energy Standard
in 2007 – 25x25• Small solar carve out in 2013
![Page 3: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/3.jpg)
Total Days With Sun
![Page 4: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/4.jpg)
WH Service Territory:196 Days
(177-199 Days)
Total Days With Sun
![Page 5: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/5.jpg)
WH Service Territory:196 Days
(177-199 Days)
Salem: 157 DaysPortland: 142 DaysEugene: 157 DaysPendleton: 192 DaysBurns: 214 Days
(142-214 Days)
Total Days With Sun
![Page 6: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/6.jpg)
WH Service Territory:196 Days
(177-199 Days)
Salem: 157 DaysPortland: 142 DaysEugene: 157 DaysPendleton: 192 DaysBurns: 214 Days
(142-214 Days)
Total Days With Sun
179-292Days
![Page 7: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/7.jpg)
WH Service Territory:196 Days
(177-199 Days)
Salem: 157 DaysPortland: 142 DaysEugene: 157 DaysPendleton: 192 DaysBurns: 214 Days
(142-214 Days)
Total Days With Sun
179-292Days
264-313 Days
![Page 8: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/8.jpg)
WH Service Territory:196 Days
(177-199 Days)
Salem: 157 DaysPortland: 142 DaysEugene: 157 DaysPendleton: 192 DaysBurns: 214 Days
(142-214 Days)
Total Days With Sun
179-292Days
264-313 Days
Solar intensity is not anIndicator of solar participation
![Page 9: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/9.jpg)
Oregon vs. Minnesota
• Top Solar Installation States – 20121. California2. Arizona3. New Jersey4. Hawaii5. Colorado6. New York7. Texas
8. Oregon9. Pennsylvania10. Maryland
Source: Solar Energy International Association Annual Report
![Page 10: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/10.jpg)
Oregon vs. Minnesota
• Top Solar Installation States – 20121. California2. Arizona3. New Jersey4. Hawaii5. Colorado6. New York7. Texas
8. Oregon9. Pennsylvania10. Maryland
Source: Solar Energy International Association Annual Report
• 5 US Solar Markets to Watch
1. Minnesota2. Georgia3. DC4. Louisiana5. Virginia
Reason:6. Regulatory landscape7. State incentives8. Marketplace acceptance/fundamentals
Source: PV Solar Report 10/23/13
![Page 11: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/11.jpg)
“A clear and present danger”
For the first time ever, a third party can insert themselves
between our infrastructure and our members
![Page 12: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/12.jpg)
![Page 13: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/13.jpg)
Does this scare you or excite you?
![Page 14: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/14.jpg)
Does this scare you or excite you?
“(Solar) power would give America the potential to challenge the utility monopolies, democratize energy generation and transform millions of homes and small businesses into energy generators.”
![Page 15: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/15.jpg)
Does this scare you or excite you?
![Page 16: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/16.jpg)
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
50,000
100,000
150,000
200,000
250,000
300,000
The Rapid Growth of Rooftop Solar Power
Customers
Does this scare you or excite you?
New Rooftop Solar Systems By Year
![Page 17: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/17.jpg)
Price of power has increased significantly
in the last decade
![Page 18: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/18.jpg)
• 48% “worry a great deal”• 31% “worry a fair deal”
How much do you worry about affordability of energy?
Source: 2012 Gallup Poll
![Page 19: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/19.jpg)
Lyndon Rive, CEO of Solar City
“We are an energy company. We install solar systems for free,
and we sell the electricity at a lower price
than you can buy it from the utility. More people,
when given the option of paying more for dirty power
or less for clean power
will take paying less for clean power.”
![Page 20: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/20.jpg)
The public is hearing this message
• 82% believe solar will decrease electric energy costs Sharp Electronics
• 83% “strongly favor” or “favor” government mandated solar incentives Gallup
• 87% want home builders to start offering solar power as an alternative Roper
![Page 21: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/21.jpg)
Sebastopol: 8,000 citizens
Lancaster: 150,000 citizens
![Page 22: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/22.jpg)
• “Based on falling costs of solar and rising electric rates, PG&E, one of the largest utilities in the country…may not be able to compete with residential solar soon.”
• “Once customers go solar, PG&E loses the sales forever, exacerbating the smaller sales/higher price cycle.”
Source: industry think tank The Energy Collective
![Page 23: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/23.jpg)
“WH has to renew our mission with a renewable offering”
• How do we specifically help bring renewable energy into the mainstream for our members?
• How do we do solar without bankrupting the cooperative?– We lose kWh sales– Can we find “substitute revenues/margins”
• How do we make solar work for non participating members?
• How do we make solar work in harmony with the WH grid?
![Page 24: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/24.jpg)
We needed first hand experience
• 2007: 20 KW wind• 2009: 2 KW solar • 2012: 2 KW
tenKsolar• 2012: Battery storage• Explored business
models to provide renewables
WH gives away the energy each month
WH’s demonstration projects
![Page 25: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/25.jpg)
Community Solar
Win - Win
![Page 26: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/26.jpg)
The Member Wins With Community Solar
• Best economies of scale• Quality control• “Modular” purchasing choices• We will introduce low or no up front cost entry• Optimal placement of panels for best production• Hassle free with tax application/credits built into purchase
process• Ownership moves with you• Available to all• Maintenance free• Long term equipment warranty
![Page 27: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/27.jpg)
The Co-op Can Winwith the Community Solar model
• Opens a way for “substitute revenues/margins”• Non participating members don’t subsidize• No financial risk for co-op – projects are built
only after member commitment• Creates a viable alternative solution to offer
legislators• Best opportunity to make sense of solar
![Page 28: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/28.jpg)
Solar Paired with Battery Storage
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
House Load (KW) Solar PV (KW) Net Usage with Battery
Excess PV when house load is low charges batteries
Batteries discharged during peak reduces total system demand
![Page 29: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/29.jpg)
The Co-op Can Winwith the Community Solar Model
• Opens a way to “substitute revenues/margins”• Non participating members don’t subsidize• No financial risk for co-op - build projects only
after member commitment• Best opportunity to incorporate battery storage• The members view us as the trusted energy
experts• Best defense against third party solar providers
![Page 30: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/30.jpg)
W-H 2013Member Interest
31% “very likely” if offered $0 down Financing
![Page 31: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/31.jpg)
W-H 2013Member Interest
31% “very likely” if offered $0 down Financing31% “very likely” if offered solar through a solar community
![Page 32: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/32.jpg)
W-H 2013Member Interest
31% “very likely” if offered $0 down Financing31% “very likely” if offered solar through a solar community
41% “very likely” if both options were offered.
![Page 33: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/33.jpg)
WH Solar Community Project #1
• 171 panels• 32.5 kW of solar panels• 36 kw of battery storage• Meets MN 40 kW net metering rules• Cost: $4.83/watt with battery• 25 Members participated (1 to 30 panels)• Net $900+/ panel – produces avg 33 kWh credit/mo• Members are credited on electric bill• Payback ~ 20 years (ROI 5-20%/yr based on amount of sunshine)• Worked with Clean Energy Collective of Colorado
![Page 34: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/34.jpg)
Dedication – September 9
• Good will & high compliments from members, legislators, regulators, press– Minneapolis Star Tribune– USA Today– Christian Science Monitor– National Geographic– Widespread industry press
• Unit 2 ready to go – 70% subscribed
![Page 35: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/35.jpg)
Lesson’s Learned• Members want to
participate in solar.• Members would prefer to
be involved in it through their co-op.
• If we don’t offer it, they will take their kWh’s to another provider.
• Solar paired with batteries makes it work for utilities.
• Witnessed first hand the “romance” customers have with solar energy
![Page 36: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/36.jpg)
The Romance With Solar• Price/payback is not the
first consideration• “Democratization of
energy”• Striking back against the
utility• The independence/pride of
ownership with solar• Controlling your destiny• Doing what’s right for the
environment
![Page 37: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/37.jpg)
Lesson’s Learned• The energy industry is
changing rapidly by forces we don’t control.
• We must act – now --to be prepared for a much different future.
![Page 38: How ^ to bring Community Solar to Your Members](https://reader036.vdocuments.mx/reader036/viewer/2022081604/568168bd550346895ddfb319/html5/thumbnails/38.jpg)
How ^ to bring Community Solar to Your Members
Mark VogtPresident & CEO
Wright-Hennepin Cooperative Electric AssociationRockford, Minnesota
Prepared forOregon Rural Electric Cooperative Association Annual Meeting
December 5, 2013Salem, Oregon
and why