University of Minnesota SUN Delegation: NREL Road Map

November 16, 2015

Overview❏Introduction

❏System Layout

❏Potential Sites

❏Finances

❏Future/Outreach/What We Want to Get Out of It

Minnesota Energy Landscape5 Campuses:

Twin CitiesDuluthCrookston

MorrisRochester

Energy Providers: Xcel Energy*

Minnesota Power*Ottertail PowerRochester Municipal UtilityMorris Municipal Utility

*Allows Community Solar

Minnesota’s Campuses and Enrollment5 Campuses:

Twin Cities50,000 studentsDuluth

10,000 studentsCrookston

3,000 studentsMorris

2,000 studentsRochester

500 students

U of MN Energy DemandsU of MN Twin Cities:

2014 Electrical Consumption: 340 GWhsApproximate # of Panels: 1,000,000

U of MN Duluth:2014 Electrical Consumption: 40 GWhsApproximate # of Panels: 100,000

Land Requirements:.85 Square Miles or 540 acres

University Climate Action Plan (2011) Carbon Reduction Goals

University Climate Action Plan (2011) Carbon Reduction Goals

Twin Cities Potential SitesSt Paul UMore Park Minneapolis

Twin Cities Site Assessment❏Best Potential Sites:

❏UMore Park❏Carlson School❏University Ramps

❏Site Criteria❏LiDAR Data❏Roof Condition❏Electrical Interconnection❏Structural Analysis❏Cost❏Historical Preservation

Twin Cities, MN Site Assessment Team❏Lidar Based Site Assessment❏Total Insolation Inventory❏Roof and Parking Files

-with structural data

Duluth, MN Site Assessment Team ❏Identifying list of potential UMD campus solar sites/projects

❏Expanding Malosky Stadium Array❏Natural Resources Research Institute Roof

❏Assembling Resources❏Gathering faculty advisor support

❏Working to collect mapping resources❏Obtained building data from UMD Geospatial Analysis Center❏Partnership with Ecolibrioum3 for help with solar suitability

mapping

Financial ModelingNon-Taxable Entity:

NPV: -$530,000Return on Equity: 3.3%

Taxable Entity: (3rd Party):NPV: $550,00Return on Equity: 52%Tax Credit: $900,000

Based on Simple PhotovoltaicFinancial Model

Description Assumptions

System Cost $3/W

Length of Project 25 years

Accelerated Depreciation 5 years

O&M Cost $20/kW

O&M Annual Cost Rise 3%

Annual Electricity Rate Rise

1%

SREC Credit $.25/kW

Inverter Life 10 years

Cash: Debt Ratio 50%: 50%

Loan Rate 7%

Community Solar Garden❏What is a Community Solar Garden?

❏A developer owns a PV array and sells the electricity to subscribers.

❏Why is it beneficial to the University of Minnesota?❏lower risk for the University❏Don’t have to worry about

maintenance❏get billed for energy

consumption

Community Solar Garden3 Ways to Participate in CSG

❏Lease property to a developer:❏Pay for space, and buy electricity from the developer.

❏Develop own CSG:❏Control over project, but much more cost and risk.

❏Purchase power from a CSG:❏Pay utility bill to developer that owns the site.

Outreach❏MN is a national leader on

renewable energy❏Outreach campaign to move

decision makers❏Develop messaging around

solar❏Website for publicity,

petition collection❏Get articles in campus, local

media❏Run campaign to get alumni,

student, staff support