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FEASIBILITY ASSESSMENT REPORT
8/15/2013 HSWXII0037 [Haliburton Hatchery]
This report represents the opinion of Haliburton Solar
and Wind (HSW) a division of 1390023 Ontario Inc.
All figures are estimates only.
TABLE OF CONTENTS NET METERING EXPLAINED ............................................................................................................. 3
BREAKDOWN OF QUOTATION ......................................................................................................... 4
FINANCIAL ANALYSIS ..................................................................................................................... 5
METHODS OF PERFORMANCE MEASUREMENT .................................................................................................. 5 NOTES TO THE FINANCIAL ANALYSIS ............................................................................................................ 5 MODEL NO. 1: FUNDING (45%) AND GIFTS IN-KIND (27%) ........................................................................... 6 MODEL NO. 2: ONLY GIFTS IN-KIND (27%) ............................................................................................... 7 MODEL NO. 3: NO FUNDING OR GIFTS IN-KIND ........................................................................................... 8
PRODUCTION VS. CONSUMPTION .................................................................................................... 9
ESTIMATED SAVINGS .................................................................................................................... 10
SITE ASSESSMENT ........................................................................................................................ 11
GROUND DESIGN ......................................................................................................................... 12
RECOMMENDED EQUIPMENT ..................................................................................................................... 12 SOLAR ACCESS ..................................................................................................................................... 12 ARRAY PROPERTIES ................................................................................................................................ 12 CONSIDERATIONS & RATIONALE................................................................................................................ 12
FUNDING AND/OR GRANT(S) ........................................................................................................ 13
NET METERING EXPLAINED Participants are allowed to supply self-generated electricity, from renewable sources, to Ontario’s electrical grid in exchange for credits toward their variable energy costs. One (1) credit is equal to one (1) kilowatt-hour (kWh). The value of the electricity supplied to the grid is subtracted from the value of electricity consumed from the grid and the result is the “net” difference. A net metering system should seek to “net” all variable energy costs to zero; however, the involvement of photovoltaics allow owners the relative ease of choosing the extent of their participation and expanding their system in the future. Credits are generated when more energy is supplied than consumed in a billing cycle. These credits will be applied against your next bill. If more credits exist than are required, they may be carried forward for up to eleven (11) months.
Typical Monthly Bill (Net Metering)
Breakdown of Charges
1. Electricity Variable 2. Delivery
Customer Service Charge Fixed Distribution Charge Variable Transmission Charge Variable
3. Regulatory The Wholesale Market Service Charge Variable Standard Supply Service Charge Fixed
4. Debt Retirement Variable
An effectively designed net metering system should always seek to take advantage of the summer months when the days are longer and the amount of energy which is able to be produced is greater. This ensures that an adequate surplus of credits exist that can be carried forward and applied to the energy usage experienced in the winter months when the days are shorter and the amount of energy which is able to be produced is reduced.
BREAKDOWN OF QUOTATION ProjectValue
Equipment: 182,367.02$ 182,367.02$ Shipping: 3,000.00$ 3,000.00$ Shipping Insurance: 1,800.00$ 1,800.00$
Engineering: 2,700.00$ 2,700.00$ Drafting & Design: 450.00$ 450.00$
Installation (Non-Electrical):- Materials:
- Footings 15,500.00$ 15,500.00-$ - Wood Beam 11,500.00$ 11,500.00-$ - Hardware & Steel 3,500.00$ 3,500.00-$
- Labour:- Excavation 9,000.00$ 9,000.00-$ - Structural 9,000.00$ 9,000.00-$ - PV Installation 11,800.00$ 11,800.00-$
Installation (Electrical):- Materials (PV Arrays): 14,600.00$ 14,600.00-$
- Wiring, cabling, PVC work, strainreliefs, and junction boxes
- Labour (PV Arrays): 15,000.00$ 15,000.00$ - Communication (PV Arrays): 4,800.00$ 4,800.00$ - Materials (Service Panel Upgrade): 7,055.00$ 7,055.00-$
- 400 Amp, Single Phase- Labour (Service Panel Upgrade): 2,000.00$ 2,000.00$ - ESA Authorization Incl. Incl.
Installation (Miscellaneous): 750.00$ 750.00$
Installation (Fencing): Labour and Materials 5,500.00$ 5,500.00-$
Project Management: 20,000.00$ 20,000.00$
Estimated LDC Power Grid Interconnection,and ESA Inspections: TBD TBD
Total: 320,322.02$ 320,322.02$ $ 320,322.02 320,322.02$ Reduction: -$ 87,455.00-$ 144,144.91-$ 231,599.91-$ Grand Total: 320,322.02$ 232,867.02$ 176,177.11$ 88,722.11$
Balance toFinance by
HHOA
EstimatedProject Valuewith Funding
EstimatedProject Value
with GIK
Estimate45% of
Project Value eligible for
Funding
Note:Haliburton Solar and Wind (HSW) cannot provide tax advice; however, it is expected that the full HST amount will be claimed as an input tax credit on the first HST filing.
Comments:Haliburton Solar and Wind (HSW) reserves the right to change or alter the details of this quotation at any time due to site specific conditions, up to the time of order processing. If you have any questions or concerns, please contact us at (705) 455-2637 or [email protected].
F INANCIAL ANALYSIS Methods of Performance Measurement Payback Period: Refers to the period of time required to recover the sum of the original investment.
Does not consider the impact of time on the value of money (TVM). Return on Investment (ROI): A method used to measure the rate of return on invested capital by relating profits to
invested capital. May be calculated to consider TVM or not. When the ROI of various projects are compared, projects are prioritized by those which offer the highest to the lowest.
Net Present Value (NPV): Uses TVM to evaluate the return on long-term projects by summing the present values of all incoming and outgoing cash flows, taking inflation into account. The discount rate used was the rate of return for a comparable investment. Indicates how much value an investment adds to the owner. If the NPV is positive, the investment is considered acceptable.
Notes to the Financial Analysis
1. Provincial Bond Yield Rate. Used as the discount rate to estimate the present value of future cash flows. As provincial bonds and the Feed-in-Tariff (FIT) program are offered by the Government of Ontario, it is the opinion of Haliburton Solar and Wind (HSW) that the bond yield rate for a term of similar duration to that of the FIT contract term (20 years) provides a reasonable basis for comparison. 2013 Province of Ontario Savings Bond: Ten (10) year term, 3.10% annual fixed rate, non-compounding.
2. Gifts In-Kind. Work included in PV Installation includes mini-excavation for footings, installation of big feet, as well as installation of racking and modules.
3. Unallocated Costs. Costs associated with various assessments (Ex. Environmental) as well as potential upgrade costs required by Hydro One associated with grid connection, have not been included in HSW’s breakdown. The extent, if any, of these costs remain uncertain at this time.
4. Operation & Maintenance (O&M). Effectively designed photovoltaic systems should incur minimal O&M costs. Interaction by personnel is typically reflected in a monitoring capacity. Monitoring should be conducted primarily through the use of appropriate software followed by occasional visits to the location. For example, environmental factors will require visits to the location. During the winter season, this could mean keeping the modules clear of snow and ice. During the fall season, this could mean clearing modules of fallen leaves.
Model No. 1: Funding (45%) AND Gifts In-Kind (27%) Payback Period (Years): ~ 6 Net Present Value (NPV): $446,931 Return on Investment (ROI) w/o TVM: 522% Est. Cost per Watt (Install): $1.18 Return on Investment (ROI) w/ TVM: 504% Est. Cost per Watt (Install + CIA): $1.25
Model No. 2: ONLY Gifts In-Kind (27%) Payback Period (Years): ~ 12 Net Present Value (NPV): $302,786 Return on Investment (ROI) w/o TVM: 137% Est. Cost per Watt (Install): $3.10 Return on Investment (ROI) w/ TVM: 130% Est. Cost per Watt (Install + CIA): $3.17
Model No. 3: No Funding OR Gifts In-Kind Payback Period (Years): ~ 15 Net Present Value (NPV): $215,653 Return on Investment (ROI) w/o TVM: 72% Est. Cost per Watt (Install): $4.27 Return on Investment (ROI) w/ TVM: 67% Est. Cost per Watt (Install + CIA): $4.34
PRODUCTION VS. CONSUMPTION Location Information: Weather Properties:
Name: Haliburton Hatchery Location: 45.00 °N, 78.50 °W Min. Temp.: -24.20 °C Max Temp.: 31.00 °C
Station Name: Meteonorm Data Source: NASA Location: 45.00 °N, 78.50 °W
System Size: 75kW
2012 Estimated Annual Production (kWh) w/ Tigo Maximizers: 102,511 Actual Usage (kWh): 99,851 Estimated Annual Credits (kWh): 2,660
ESTIMATED SAVINGS
Monthly Cost w/o Net Metering
(Monthly)
Estimated Monthly Cost
w/ Net Metering January $1,504 $39.66 February $1,430 $39.66 March $1,381 $39.66 April $1,327 $39.66 May $1,063 $39.66 June $989 $39.66 July $957 $39.66 August $953 $39.66 September $1,003 $39.66 October $1,267 $39.66 November $1,310 $39.66 December $1,627 $39.66 $14,811 $475.92 HST (13%) $1,925 $61.87 $16,736 $537.79 Green Energy Benefit (10%)
-$1,674 -$53.78
$15,063 $484.01 Net Savings: $14,578.99
SITE ASSESSMENT
It is the opinion of Haliburton Solar and Wind (HSW) that two (2) potential installation locations exist which will support a 50kW (DC) ground-mount photovoltaic array. These include: Archery field Soccer field
The process of identifying these locations involved considering factors such as: Needs of client. Existing grid service. Amount of solar access at location. Potential hazards at location. Ease of access to location. Scope of site preparation activities. Usable area of location.
Further, it is our opinion that the most ideal installation location is the soccer field. Update: The HHOA has selected the archery field to be the location of installation, if the project is to be pursued. Both locations are expected to experience similar levels of solar access; however, locating the photovoltaic array on the soccer field results in several benefits, such as:
Maintaining the use of both fields Locating the array away from the majority of the facility Reducing the risk of damage to the array from local hazards (Ie. Arrow v. Ball)
Further, HSW recommends that the installation of a chain link fence, with breaks in continuity as appropriate, be installed around the perimeter of the array. This will serve as a deterrent to wayfaring objects, such as soccer balls, from damaging the array.
GROUND DESIGN Recommended Equipment
Module Manufacturer: Hanwha SolarOne Model: 250W Polycrystalline
Inverter Manufacturer: Fronius Canada Model: IG Plus V 7.5kW
Optimizer Manufacturer: Tigo Energy Models: MM-ES, MMU, and GTWY
Refer to Appendix for overview of Warranty information.
Solar Access Annual: 97% Summer: 98% Winter: 96%
Array Properties Length (ft): 100’ Width (ft): 9’ Azimuth: 180° Tilt: 45° Derate: 0.84
Module Layout Arrays: 5 Modules per Array: 60
Usable Area of Location Length (ft): 165 Width (ft): 150
Considerations & Rationale
Proposed module layout allows array to be oriented true south. Use of Tigo optimizers results in several unique benefits, such as :
- Producing up to 25% more power density. - Reduce operating and maintenance costs by up to 10% - Software platform allows module-level, system-level, and fleet-level assessment. - Arc, fire and safety risks are monitored with automatic module-level shut-offs.
Fronius IG Plus V product line achieves one of the highest efficiency values for transformer inverters, with a maximum efficiency of 96.2%. In addition, Fronius’ production method allows for ease of component replacement, if required, on site which results in minimal downtime of system.
FUNDING AND/OR GRANT(S) There are various sources of funding and/or grant opportunities available to the Haliburton Hatchery due to its not-for-profit status and volunteer-based Board members. Preliminary research into these sources appears to indicate a range of $10,000 to $100,000. An overview of several sources include:
HCDC Capacity Building Eligibility Not-for-profit organizations, for-profit businesses and municipalities in
Haliburton County. Criteria Community based initiatives that stimulate business & community development;
demonstrate broad support for the community; offer sustainable & measurable economic benefits.
Funding Range ≤ $100,000 Application Date March 15, 2013
Sobey’s Earth Day Community Environment Fund Eligibility Not-for-profit organizations; open to the public; strong volunteer involvement;
engage local community; located on publicly accessible property; plan to be sustainable beyond life of grant; demonstrate quantified benefits & achievements to environment; project to be completed within one year of receipt of grant.
Criteria Greatest need; most innovative; greatest likelihood of sustainable impact. Funding Range ≤ 20,000 Application Date May 2, 2013
Canadian Shield Foundation Eligibility Anyone who can promote ecology. Criteria Promote ecology in the Canadian Shield. Funding Range ≤ 10,000 Application Date Anytime.
Additional Sources McConnell Foundation Community Conservation Initiatives Program The Ontario Trillium Foundation EcoAction Community Funding Program
Green Municipal Fund