Solar Feasibility Analysis Presented to: Bernards Township ... committee/Document/SolarFeasStudyMetr… · frame of module to become a solar panel. ... Under full sun, each panel

Prepared by: Metro Energy Solutions

1 Solar Analysis prepared for:

Bernards Township

Solar Feasibility Analysis

Presented to:

Bernards Township, New Jersey

Date: September 22, 2009

Table of Contents

1. EXECUTIVE SUMMARY ................................................................................3

2. PHOTOVOLTAIC SYSTEM AUDIT AND ANALYSIS...............................5

3. ENVIRONMENTAL BENEFITS……………………………………...……23 4. ECONOMIC MODEL AND FINANCIAL SUMMARY .............................25



Bernards Township



Bernards Township

1. Executive Summary Metro Energy Solutions (“Metro”), an independent energy services and energy consulting company headquartered in West Caldwell, New Jersey, is pleased to present this Preliminary Photovoltaic Power System Analysis to the Township of Bernards (“Bernards”), focusing specifically on two (2) Bernards sites: the Landfill on Pill Hill Road, and the Bernards Township Sewerage Authority. Metro specializes in assisting public and private sector clients in designing, installing and retrofitting mechanical and electrical equipment, implementing process improvements that use less energy and improve building comfort, while at the same time lowering the facility’s operating and maintenance costs. At the direction of Bernards, the focus of this study was on renewable technologies, specifically the potential installation of Photovoltaic (PV) power systems at each site. Following, please find a breakout of the scope of work and our preliminary findings and conclusions. Preliminary Photovoltaic (PV) Analysis – Scope of Work 1. Metro conducted a site inspection of both the Landfill and the Sewer Treatment Plant,

including interviews with facility personnel. Client participation was essential to the preparation of this audit report. Interviews and site visits included participation by your staff;

2. Metro conducted a review of the grounds, building roofs and electrical equipment and

systems to understand their condition, age, operating characteristics, etc., and to identify potential areas for the implementation of renewable technologies;

3. Metro performed a conceptual design and layout of proposed photovoltaic system at each site

to include estimated system size (in kW dc), annual kWh (ac) production, annual energy savings, annual Solar Renewable Energy Certificate (SREC) value, and total installed project cost;

4. Metro performed a financial analysis/life cycle costing for the system. An economic analysis,

inclusive of estimates of applicable savings and capital costs, was developed for the PV solar system. The analysis is spreadsheet based and includes estimated electric production, estimated solar renewable energy certificates (SRECs) to be generated by the proposed System, estimated rebates (if applicable), estimated Federal investment tax credits, accelerated depreciation calculations, life-cycle cost calculations, as well as the project’s estimated return on investment and;

5. Prepared this Feasibility Analysis for review by Bernards Township;



Bernards Township

Preliminary Photovoltaic Analysis – Findings and Conclusions Provided in Section 4 is a summary of the project economics for the implementation of a PV Solar system at each site. Note that construction costs are labor and material estimates based on Metro’s experience and knowledge of data compiled from similar installations. Budget costs are not reduced by available rebates as all Office of Clean Energy rebate estimates, if applicable, are provided separately. Additional engineering will be required prior to preparing a bid specification for this project, and the final scope of work and budget cost estimates will need to be confirmed prior to the coordination of financing. Overview of Photovoltaic (PV) Solar Systems PV cells convert energy in sunlight directly into electrical energy through the use of semi conductors, diodes and collection grids. Several PV Cells are then linked together in a single frame of module to become a solar panel. This conversion is done so without any moving parts and without generating any noise or pollution. Solar panels must be mounted in an unshaded location. Rooftops, carports and ground-mounted arrays are common mounting locations. The angle of inclination of the PV panels, the amount of sunlight available, the orientation of the panels, the amount of physical space available and the efficiency of the individual panels are all factors that affect the amount of electricity that is generated. Under full sun, each panel produces direct current (DC) electricity (about 12-18% efficiency), although this efficiency depends on the type of collector, the tilt and azimuth of the collector, the temperature and the level of sunlight. An inverter is required to convert the DC to alternating current (AC) of the desired voltage compatible with building and utility power systems. The balance of the system consists of conductors/conduit, switches, disconnects and fuses. Grid-connected PV systems feed power into the facility electrical system and do not include batteries. Installing a PV system at either or both of the sites will enable Bernards Township to create energy savings and promote clean, renewable energy while helping the State of New Jersey achieve the goals outlined in the Governor’s Energy Master Plan, which targeted having 30% of the state’s electricity produced through wind and solar, by the year 2020. As part of the PV system installation, we will require the bidders to include the installation of a remote monitoring system that will display such as instantaneous kWh generation, cumulative kWh generation, dollars saved, and on-going environmental savings associated with the PV system(s). This information will be displayed on a flat panel monitor that can be installed in a location the Township selects.



Bernards Township

2. Photovoltaic System Audit and Analysis

A. Bernards Township Landfill Pill Hill Rd, Bernards Twp., New Jersey Background Information: Site Description: Located in Bernards Township, New Jersey, the landfill is an open section of land that was used for the disposal of waste materials by burial. The ground is essentially flat with no overt slopes. Our team identified areas that would be suitable for a solar panel installation taking into consideration the number of vents in these areas. There appeared to be little to no shading from adjacent foliage in those areas deemed suitable for a solar installation. Shading might be an issue from the surrounding tree line, and this will be addressed during the design phase and upon completion of a shading analysis. The total area of land in consideration for a PV system is approximately 342,781 square feet which is equal to 7.8 acres. Site Assessment In order to determine the best location for the installation of the PV solar system, Metro’s engineers performed a satellite image analysis and site walkthrough of the Bernards Township Landfill on August 7th 2009, assessing the topography of the potential locations, access to electrical interconnection points, and positioning of the solar panels relative to the movement and track of the sun. We derived two options to account for one specific location on the southern part of the land that currently contains the Township’s recycling center. The actual amount of land needed for the arrays will be determined during the actual engineering and design phase, and will vary depending on several factors including the type of technology selected, degree of tilt, and orientation. For the purposes of this feasibility analysis, our calculations were based on the use of silicon-based PV panels with a fixed axis (10º tilt and 180º array azimuth), mounted on a non-penetrating ground-mount, self-ballasted PV racking installation for both options. The use of a non-penetrating system is necessitated in the landfill because of the requirement for not drilling anchors or setting concrete bases in the capped area. It is ideal for this installation because of the need to protect the water supply, as well as not disturbing the capped and filled areas. There is virtually no ground disturbance with this type of system nor is the surrounding permeability adversely affected. Other potential system design options include single-axis and dual-axis systems that track the position of the sun. However, since this location involves a landfill, neither of the tracking systems are a viable option. Tracking systems usually require ground penetrations for anchoring the mounting systems because tracking systems have higher weights.



Bernards Township



Bernards Township

PV Panel Location In determining the location and sizing of the system, several potential issues had to be investigated and addressed. The first potential issue taken into consideration was the presence of any fresh water wetland areas located on the property. The basis for our analysis for selection of potential areas to install the PV solar system was derived from a set of drawings provided by the Township delineating the Landfill Closure Plan. Wetland areas were shown on Drawings EX1; SC1; and GR1. Based on the type of wetlands identified in the report we preliminarily concluded that a minimum 50-foot buffer zone needs to be maintained between all fresh water wetlands and the proposed PV solar system. The proposed photovoltaic system is a ground-mounted array located on an 18.8 acre parcel of land owned by Bernards Township. The System included, as the basis of design for this report, is a fixed-rack system oriented as close to due south as possible, based on the site configuration. Based on our preliminary design utilizing modules rated at approximately 230 watts, we investigated two PV systems, referred herein as option 1 and option 2. A PV system utilizing the entire landfill (option 1) will be constructed of approximately 14,472 crystalline silicon panels. The second option is modeled on the first scenario, but assumes the recycling area is left open and operational. This PV system is constructed of approximately 11,196 crystalline silicon panels. The ground-mounted panels will be positioned at a 10 degree tilt. Spacing between rows is approximately 1.1 feet. As tilt and spacing between rows increases (for maintenance purposes), the size of the system may change significantly. Please refer to the following page for a preliminary solar overlay of the areas identified for placement of solar panels.



Bernards Township



Bernards Township



Bernards Township



Bernards Township



Bernards Township

Basis for Design and Calculations The ground-mounted system engineered for both options at the landfill consists of a self-ballasted, non-penetrating silicon-based PV racking system. Ideally, the module tilt for Northern New Jersey should be 25-35 degrees with an azimuth as close as possible to 180 degrees (south); however, our experience has shown that PV systems are typically installed at a tilt of 20 degrees or lower in order to avoid any issues with wind and to maximize total system size. The panels have a fixed axis tilt of 10 degrees and will be facing south with a 180 degree azimuth. The tilt was determined mainly due to ground conditions. The type of PV panels and equipment used to mount the system shall be determined based on the total targeted kWh production and usable land determined during the design phase of the project. PV System Sizing Metro investigated the installation of a south facing, non-tracking, fixed tilt system. The calculations were based on a poly-crystalline panel such as the Sharp ND-U230C1 (rated at 230 watts dc) utilizing a 10-degree panel tilt. The azimuth was estimated at 180 degrees (true south). The solar azimuth angle is the azimuth angle of the sun. It is most often defined as the angle between the line from the observer to the sun projected on the ground and the line from the observer due south. The number of modules in a row from west to east depends on the amount of usable area. Option 1 (entire landfill site): Silicone glass panels Based on the available area, the preliminary analysis shows that solar arrays totaling approximately 198.72 kW, 198.72 kW, 198.72 kW, 186.30 kW, 227.70 kW, 372.60 kW, 438.84 kW, 447.12 kW, 372.60 kW, 347.76 kW and 339.48 kW can be installed in these eleven areas respectively. Therefore, the total size of the system is estimated at 3,328.56 kW. Option 2 (recycling center still open and operational): Silicone glass panels Based on the available area, the preliminary analysis shows that solar arrays totaling approximately 198.72 kW, 198.72 kW, 198.72 kW, 186.30 kW, 227.70 kW, 372.60 kW, 438.84 kW, 331.20 kW, 215.28 kW, 115.92 kW and 91.08 kW can be installed in these eleven areas respectively. Therefore, the total size of the system is estimated at 2,575.08 kW. Additional parameters were also taken into consideration such as proximity to the possible electrical interconnection points, land topography and potential shading of the solar panels. Calculation of PV System Yield Option 1: An industry accepted software package, PV Watts, was used to calculate projected annual electrical production of the crystalline silicon PV system in its first year (please see Table below). The assumptions we used in the calculations were as follows: solar array tilt angle of 10°, array azimuth of 180° and a de-rate factor of 0.8.

http://en.wikipedia.org/wiki/Azimuth

http://en.wikipedia.org/wiki/Sun

Table 1: PV System Output Calculations – Year 1 (3,328.56 kW dc)

Month Solar Radiation (kWh/m2/day) AC Energy (kWh) 1 2.39 197,074 2 3.17 238,961 3 4.07 334,524 4 4.83 370,635 5 5.70 440,998 6 5.94 430,915 7 5.77 427,564 8 5.38 395,965 9 4.65 340,675 10 3.61 280,381 11 2.35 178,780 12 2.01 160,390

Totals 3,796,862

Note: PV Watts is designed for systems up to 1 MW. In order to determine the calculations for a system designed to be 3.32856 MW, we multiplied the results by a factor of 3.32856. The energy generated by the installation of approximately 3,328.56 kW (dc) of photovoltaic power is estimated to be 3,796,862 kWh (ac). At an estimated wholesale electric price of $0.085/kWh, the total energy savings would be $322,733 per year. Option 2: An industry accepted software package, PV Watts, is used to calculate projected annual electrical production of the crystalline silicon PV system in its first year (please see Table below). The assumptions we used in the calculations were as follows: solar array tilt angle of 10°, array azimuth of 180° and a de-rate factor of 0.8.

Table 2: PV System Output Calculations – Year 1 (2,575.08 kW dc)



Bernards Township

Month Solar Radiation (kWh/m2/day) AC Energy (kWh) 1 2.39 152,463 2 3.17 184,868 3 4.07 258,798 4 4.83 286,735 5 5.70 341,170 6 5.94 333,370 7 5.77 330,777 8 5.38 306,332 9 4.65 263,557 10 3.61 216,912 11 2.35 138,310 12 2.01 124,083

Totals 2,937,373

Note: PV Watts is designed for systems up to 1 MW. In order to determine the calculations for a system designed to be 2.57508 MW, we multiplied the results by a factor of 2.57508. The energy generated by the installation of approximately 2,575.08 kW (dc) of photovoltaic power is estimated to be 2,937,373 kWh (ac). At an estimated price of $0.085/kWh for the electricity displacing wholesale rates the total energy savings would be $249,677 per year. Site Analysis of the Landfill Area The stability of the ground was not confirmed nor was a geotechnical study/survey completed during the site visit. However, Township personnel informed Metro’s engineers that since the site was capped, there has been little settling of the area. The ground may require some grading modifications and fill work prior to the installation of the PV system. Both need to be addressed prior to the implementation of a solar system. Electrical Service and PV Interconnect Point There is very limited electrical service available at the landfill site. Presently, the incoming service is approximately 200 amperes, single-phase, three wire, 120/240 volts. This service is not adequate for the system tie-in proposed. The Township desires to become a “merchant generator” should solar be installed at the landfill. That is, they desire to sell any electricity generated by the site directly to the local utility company, which is Jersey Central Power & Light. In order to accomplish this, the utility company will have to bring three-phase high voltage to the site, at the cost of the selected bidder. At that point, the solar system, in addition to the panels and inverters, will have high voltage transformers and high voltage switchgear installed in order to make the connection directly to the utility grid. All of this equipment will be customer-owned. The final placement of the equipment (inverters, transformers, high voltage switchgear) will be placed near to the area where the existing incoming service is located at the landfill. The final means of connecting the PV system to the utility grid will be part of any final design, and will also be subject to utility engineering and safety requirements, as well as any utility-imposed costs for bringing in the high voltage distribution lines. Any proposed work will be subject to utility company approval.



Bernards Township



Bernards Township

Estimated Installation Cost: The estimated installation costs are based on significant experience with the pricing of ground mounted PV glass panel installations as outlined above and are intended to provide Bernards Township with a realistic budget cost. A typical solar installation can vary in cost from $5.00 - $10.00 per watt depending on size, complexity of the system, labor rates, etc. Approximately 60-70% of that number is material costs, while the balance is labor, engineering, environmental, permitting, etc. Like any installation, certain conditions can affect a price upward or downward. For purposes of this analysis and based on the system size the estimated installation cost assumes $5.50 per watt. The budget costs presented in this report reflect the total material and labor cost required to provide a working system as described herein, including mounting (racking) systems and electrical interconnection work. The budget costs do not include any utility fees for additional construction that might involve bringing in the three-phase high voltage distribution lines. Option 1: The total cost for the installation of a ground-mounted 3,328.56 kW (dc) PV silicon-based solar system using the entire site as presented in option one is estimated at $18,307,080. Option 2: The total cost for the installation of a ground-mounted 2,575.08 kW (dc) PV silicon-based solar system leaving the recycling area in use as presented in option two is estimated at $14,162,940. Estimated System Maintenance Cost: Since this proposed PV system will be installed under a Power Purchase Agreement (PPA), Bernards Township will not be responsible for any maintenance costs during the 15 year term of the PPA. However, in the event the Township decides to purchase the PV system at the end of the PPA term, the Township will be responsible for maintenance costs. Bernards may want to consider setting aside money in a maintenance budget each year, which would be used in the event a component, such as an inverter, fails after the warranty period, and needs to be repaired or replaced. Typically, we estimate $0.017 - $.025 per kWh (ac) generated by the PV system as the annual amount for the client to set aside in a maintenance budget. An annual estimate for maintenance costs is included in the Economic Model provided in Section 4. Warranty Terms: All components will be protected by the warranties provided by components’ manufacturers. Solar modules typically carry 10 year/90%, and 25 year/80% performance warranty. In the event that a solar panel fails to produce 90% of its rated output (during years 1-10) or 80% of its rated output (years 11-25), Bernards Township will be entitled to receive replacement panels at no cost. Inverters come with a standard 10 year warranty and may have an option to extend it for additional 5 or 10 years. Most manufacturers will warranty the entire system for workmanship for approximately 5 years.

B. Bernards Township Sewerage Authority WWTP 726 Martinsville Rd, Bernards Twp., New Jersey Background Information: Site Description: Located in Bernards Township, New Jersey, the WWTP involves the process of removing contaminants from wastewater and household sewage. It includes physical, chemical, and biological processes to remove any contaminants to produce a waste stream suitable for discharge back into the environment. Our team identified roof, ground and canopy areas that would be suitable for a solar panel installation. There appeared to some shading from adjacent foliage in one of the areas deemed suitable for a solar installation. Shading will be addressed during the design phase and upon completion of a shading analysis. The total area of usable area in consideration for a PV system is approximately 96,399 square feet which is equal to 2.22 acres. S



Bernards Township

ite Assessment

order to determine the best locations for the

here is only one roof suitable for a PV system. The age, structural integrity and warranty

V Panel Location

he photovoltaic system selected as the basis of this report consists of roof-mounted, ground-mounted, and over-tank-mounted (Oxidation Ditches 1, 2 and the Chlorine tank) arrays

Ininstallation of the PV solar system, Metro’s engineers performed a satellite image analysis and site walkthrough of the Bernards Township Sewerage Authority on August 7th 2009. As per the Scope of Work, roof, canopy and ground-mounted arrays were considered for the PV installation. The site walkthrough was to assess roof conditions (for space availability), canopy locations, the topography of the potential ground locations, access to electrical interconnection points, and positioning of the solar panels relative to the movement and track of the sun. Tinformation on the roof has not yet been confirmed. Because solar panels have the same useful life as a standard roof, the solar panels should be installed following a roof replacement if deemed necessary based on the ages and conditions of the existing roofs and any warranties that may still apply. The overall situation with existing roof warranties will need to be addressed prior to the implementation of a PV system. P T



Bernards Township

e ground-mounted array will be determined during the ctual engineering and design phase, and will vary depending on several factors including the

positioned around the plant and as pictured in the preliminary solar overlay on the following page. The System investigated is a fixed-rack system oriented as close to due south as possible, based on the site configuration. Based on our preliminary design utilizing modules rated at approximately 230 watts, the entire system will be constructed of about 3,486 crystalline silicon panels. The roof/canopy-mounted panels will be positioned at a 10 degree tilt. Spacing between rows is approximately 1.1 feet. The ground-mounted panels consist of three panels stacked together per rack and will be positioned at a 35 degree tilt. Spacing between panels is approximately 1.9 feet and spacing between racks is approximately 5 feet. As tilt and spacing between rows increases (for maintenance purposes), the size of the system may change significantly. Please refer to the following page for a preliminary solar overlay of the areas identified for placement of solar panels. The actual amount of land needed for thatype of technology selected, degree of tilt, and orientation. For the purposes of this preliminary report, we assumed the use of a silicon-based, fixed axis (35º tilt and 170º array azimuth), ground-mounted, PV panel installation.



Bernards Township

Basis for Design and Calculations The most common roof mounted system is referred to as a “fixed tilt” system typically mounted to a metal rack that can be fixed at a specific angle (tilt). The tilt is determined based on the following factors: geographical location, total targeted kWh production, seasonal electricity requirements and weather conditions such as wind and snow. Ideally, the module tilt for Northern New Jersey should be 25-35 degrees with an azimuth as close as possible to 180 degrees (south); however, our experience has shown that PV systems are typically installed at a tilt of 20 degrees or lower in order to avoid any issues with wind and to maximize total system size. The type of PV panels and equipment used to mount the system shall be determined based on the wind conditions and structural integrity of the roof determined during the design phase of the project. In general, penetration/tie-down systems, non-penetrating ballasted type systems, or a combination of the two should be considered. The ground-mounted systems engineered for the WWTP are all designed to stack three panels together in a rack and positioned at a 35 degree tilt. Spacing between each panel is approximately 1.9 feet and spacing between racks is approximately 5 feet. Using this design requires penetrations to be made in order to comply with wind loads; given the height of each rack may reach 10 feet in height. Ground-mount systems are installed on steel posts usually anchored in concrete bases or a foundation using a “screw-type” anchor. The canopy-mounted systems engineered to go over the Oxidation and Chlorine Tanks utilize a 10 degree tilt with a 170 degree azimuth as well. In order to mount the panels over treatment tanks a “car-port” type construction using galvanized steel support members that are fastened to the tank edges or tops are needed. Typically, they do not interfere with maintenance of the tanks and any auxiliary equipment. PV System Sizing Metro investigated the installation of a south facing, non-tracking, fixed tilt system. The calculations were based on a poly-crystalline panel such as the Sharp ND-U230C1 (rated at 230 watts dc) utilizing a 10-degree panel tilt for the roof-mounted system, a 35-degree panel tilt for ground-mount systems, and a 10-degree tilt for tank-mounted systems. The azimuth was estimated at 170 degrees. The solar azimuth angle is the azimuth angle of the sun. It is most



Bernards Township

http://en.wikipedia.org/wiki/Azimuth

http://en.wikipedia.org/wiki/Sun



Bernards Township

often defined as the angle between the line from the observer to the sun projected on the ground and the line from the observer due south. Based on the available area, the preliminary analysis shows that a 494.04 kW PV array can be installed utilizing a roof-mounted system and canopy-mounted systems over the oxidation ditches and the chlorine tanks, and a 307.74 kW PV array can be installed utilizing ground-mounted systems. Therefore, the total size of the system is estimated at 801.78 kW. Other parameters were also taken into consideration such as proximity to the possible electrical interconnection points, land topography and potential shading of the solar panels. Calculation of PV System Yield Roof Mount and Canopy Systems (Chlorine Tanks and Oxidation Ditches 1 and 2) An industry accepted software package, PV Watts, is used to calculate projected annual electrical production of the crystalline silicon PV system in its first year (please see Table below). The assumptions we used in the calculations were as follows: solar array tilt angle of 10°, array azimuth of 170° and a de-rate factor of 0.8.

Table 1: PV System Output Calculations – Year 1 (494.04 kW dc)

Month Solar Radiation (kWh/m2/day)

AC Energy (kWh)

1 2.38 29,090 2 3.16 35,385 3 4.07 49,637 4 4.83 54,979 5 5.70 65,389 6 5.94 63,995 7 5.76 63,401 8 5.38 58,753 9 4.65 50,545 10 3.61 41,524 11 2.35 26,549 12 2.01 23,664

Totals 562,912 Ground Mount System An industry accepted software package, PV Watts, is used to calculate projected annual electrical production of the crystalline silicon PV system in its first year (please see Table below). The assumptions we used in the calculations were as follows: solar array tilt angle of 35°, array azimuth of 170° and a de-rate factor of 0.8.

Table 1: PV System Output Calculations – Year 1 (307.74 kW dc)

Month

Solar Radiation (kWh/m2/day)

AC Energy (kWh)

1 3.20 25,103 2 3.93 27,783 3 4.55 34,535 4 4.91 34,663 5 5.45 38,657 6 5.54 36,798 7 5.43 36,877 8 5.36 36,184 9 5.05 34,280 10 4.36 31,380 11 3.05 22,298 12 2.74 21,113

Totals 379,672 The energy savings generated by the total installation of approximately 801.78 kW dc of photovoltaic power is estimated to be 942,584 kWh ac. At an estimated price of $0.14/kWh, the total energy savings would be $131,962 per year. Structural Analysis of the Roof and Various Sites The structural integrity of the roof was not confirmed during the site visit. The structure may require some roofing and/or structural modification work prior to the installation of the PV system. Both need to be addressed prior to the implementation of a solar system. Electrical Service and PV Interconnect Point The wastewater treatment facility has one incoming electrical service. This is utility-supplied primary voltage at 12,400 volts. This goes to a customer-owned transformer that steps the voltage down to 480/277 volts three-phase, four-wire, and the secondary side of the transformer feeds switchgear that serves the plant. The switchgear has a 2000-ampere main with ground-fault protection. Connection of the PV system would be done through a line-side (ahead of the main switch) tie-in at the main gear. This tie-in would be from the AC output side of the PV system inverters. The switchgear has ample rear access for the interconnection point of the inverter AC outputs. Number and location of the inverters would be subject to a final system design, but all inverters would be located outdoors in NEMA 3R enclosures and installed on poured concrete pads.



Bernards Township



Bernards Township

Estimated Installation Cost: The total cost for the installation of a roof and ground mounted 801.78 kW dc PV glass panel solar system as outlined above is estimated at $5.75 per watt totaling $4,610,235. A typical solar installation can vary in cost from $5.00 - $10.00 per watt depending on size, complexity of the system, labor rates, etc. Approximately 60-70% of that number is material costs, while the balance is labor, engineering, environmental, permitting, etc. Like any installation, certain conditions can affect a price upward or downward. The budget costs presented in this report reflect the total material and labor cost required to provide a working system as described herein, including mounting (racking) systems and electrical interconnection work. The budget costs do not include repairing or replacing roofs, or structural improvements (if necessary). Estimated System Maintenance Cost: Photovoltaic systems do not require much ongoing maintenance. The equipment will be covered by manufacturer’s warrantees, which are typically: Solar panels – 25 years Inverters – 10+ years Workmanship by the installing contractor – 5 years Bernards may want to consider setting aside money in a maintenance budget each year, which would be used in the event a component, such as an inverter, fails after the warranty period, and needs to be repaired or replaced. Typically, we estimate $0.017 - $.025 per kWh (ac) generated by the PV system as the annual amount for the client to set aside in a maintenance budget. An annual estimate for maintenance costs is included in the Economic Model provided in Section 4. Warranty Terms: All components will be protected by the warranties provided by components’ manufacturers. Solar modules typically carry 10 year/90%, and 25 year/80% performance warranty. In the event that a solar panel fails to produce 90% of its rated output (during years 1-10) or 80% of its rated output (years 11-25), Bernards Township will be entitled to receive replacement panels at no cost. Inverters come with a standard 10 year warranty and may have an option to extend it for additional 5 or 10 years. Most manufacturers will warranty the entire system for workmanship for approximately 5 years.

3. Environmental Benefits As a result of the PV solar system project contained in this proposal, Bernards Township will reduce the amount of pollution emitted into the atmosphere. Below is a summary of the environmental benefits of the project. Global Warming - The progressive rise of the earth's surface temperatures, as well as changes in global climate patterns, are caused by anthropogenic (human-caused) emissions of gases – such as carbon dioxide, methane, sulfur dioxide and nitrogen oxides – which are contributing markedly to an increasing greenhouse effect. The planet’s climate has changed significantly in the past as the result of natural influences, but the terms “global warming” or “climate change” are most often used to refer to the changes occurring now that are a result of the recent (one century) increase in emissions of greenhouse gases, primarily from the burning of fossil fuels. Greenhouse Effect - The greenhouse effect is produced as atmospheric gases allow incoming solar radiation to pass through the earth's atmosphere, but prevent part of the outgoing infrared radiation from the earth's surface and lower atmosphere from escaping into outer space. This process occurs naturally and has kept the earth's temperature at a temperature range where human life can exist. Current life on earth could not be sustained without the natural greenhouse effect. Some greenhouse gases occur naturally in the atmosphere, while others result from human activities. Greenhouse gases that occur naturally include water vapor, carbon dioxide, methane, nitrous oxide, and ozone. Certain activities, however, add to the levels of most of these naturally occurring gases:

Carbon dioxide (CO2) - A colorless, odorless, non-poisonous gas that is a normal part of the ambient air. Carbon dioxide is a product of fossil fuel combustion. Although carbon dioxide does not directly impair human health, it is a greenhouse gas that traps terrestrial infrared radiation (heat) and contributes to global warming. CO2 reduction amounts are calculated in metric tons for each measure as outlined below. *note: Since every tree planted in tropical regions (where trees are the most effective at reducing global warming) removes about 50 pounds of carbon dioxide from the atmosphere each year, the CO2 reductions resulting from this project are equivalent to planting a specified and quantifiable number of trees as outlined below! Nitrogen Oxides (NOx) - Gases consisting of one molecule of nitrogen and varying numbers of oxygen molecules. Nitrogen oxides are produced by the combustion of fossil fuels in vehicles and electric power plants. In the atmosphere, nitrogen oxides can contribute to formation of photochemical ozone (smog), impair visibility, and have health consequences. They are considered pollutants. NOx reduction amounts are calculated in metric tons for each measure as outlined below. *note: Since NOx has a Global Warming Potential (a measure of how much a gas contributes to the greenhouse effect) of 296 times that of CO2, the NOx reductions



Bernards Township

resulting from this project are equivalent to planting a specified and quantifiable number of trees as outlined below! Sulfur dioxide (SO2) - A compound composed of one sulfur and two oxygen molecules. Sulfur dioxide emitted into the atmosphere through natural and anthropogenic processes is changed in a complex series of chemical reactions in the atmosphere to sulfate aerosols. These aerosols are believed to result in negative radiative forcing (i.e., tending to cool the earth's surface) and do result in acid deposition (e.g., acid rain). Acid rain has been shown to have adverse impacts on forests, freshwaters and soils, killing off insect and aquatic lifeforms as well as causing damage to buildings and having possible impacts on human health. SO2 reduction amounts are calculated in metric tons for each measure as outlined below.

These combined carbon equivalents equal a significant number of trees planted and acres of tropical reforestation as outlined below – as well as significant acreage of native forests protected from the ravages of acid rain. Therefore, our project will result not just in improvements to the building’s infrastructure, an increase in comfort and health for the residents, as well as reduced costs and energy use, but also in annual improvements to the environment from the significantly reduced levels of CO2, NOx, and SO2 being emitted into the atmosphere.

Table 3a: Environmental Benefits - Landfill

Nox Reduced (Tons)

CO2 Reduced (Tons)

SO2 Reduced (Tons)

# Trees Nox

# Trees CO2 Acres

5.32 2885.62 12.34 69,388 127,256 786.57

Table 3b: Environmental Benefits – Wastewater Treatment Plant

Nox Reduced (Tons)

CO2 Reduced (Tons)

SO2 Reduced (Tons)

# Trees Nox

# Trees CO2 Acres

1.32 716.36 3.06 17,226 31,592 195.27



Bernards Township



Bernards Township

4. Economic Model and Financial Summary Potential Revenues, Rebates, Tax Credits, etc.: Electric Generation The most obvious direct benefit of solar systems is that they generate electricity on site and result in reduced utility purchases. We have assumed a wholesale electric rate of $0.085/kWh for Bernards Landfill and a retail electric rate of $0.14 per kWh for the WWTP. In addition, the current design of solar panels can result in gradual decline of output efficiency. Although many systems show negligible decline after years of operation, this financial analysis assumes a 0.5% annual degradation in electric output. Solar Renewable Energy Certificates As part of New Jersey’s Renewable Portfolio Standards (RPS), electric suppliers are required to have an annually-increasing percentage of their retail sales generated by solar energy. Electric suppliers fulfill this obligation by purchasing SRECs from the owners of solar generating systems. One SREC is created for every 1,000 kWh (1 MWh) of solar electricity generated. Although solar systems generate electricity and SRECs in tandem, the two are independent commodities and sold separately. The RPS, and creation of SRECs, is intended to provide additional revenue flow and financial support for solar projects in New Jersey. Normally, we assume what we believe to be a conservative estimate of the market value of SRECs over a 15-year term. Estimates provided in the Economic Model reflect SREC values set to 80% of NJBPU market forecast in each year. PPA Project Model Please Note: The following benefits are only available if the project is completed in the form of a power purchase agreement model.

A PPA model involves Bernards Township entering into a 15 year agreement with a private sector solar developer to build a PV system on the Township’s property. Under this model, Bernards Township has no capital investment. The private sector solar developer will invest all of the capital necessary to design, build, own, operate and maintain the system for 15 years. They also retain the financial benefits of the project, such as the Federal Tax Credits, Accelerated Depreciation, and the SRECs. Bernards Township would agree to buy the electricity generated from the system for a 15 year period, at a price that is less than what Bernards Township pays to the utility company and/or their third-party energy supplier. This guarantees Bernards Township a savings without any capital outlay. The minimum size for a solar project PPA model, based on the requirements of the entities that provide the financing for PPAs, is around 300 kW. This size threshold exists primarily due to the



Bernards Township

fixed transaction costs associated with financing the project. On an individual basis this project would be able to pursue an economic solar PPA if that was the direction Bernards elected to pursue. Federal Tax Incentives Federal tax incentives include investment tax credits and accelerated depreciation (MACRS), both of which are critical to the economic viability of solar installations. These two incentives can contribute between one-third and one-half of the total value of the project. Solar Project Structure There are two general models for structuring a solar project: (a) a Self-Own model and (b) a Purchase Power Agreement (PPA) model. In a self-own model, the host/end-use customer would finance and own the facility, would own the solar output and the associated SRECs or any environmental attributes, and contract with the developer to design, build, operate and maintain the solar facility. In a PPA, the developer would finance, own, design, install, commission, operate and maintain the solar facility. The developer would sell the output of the solar facility to the host/end-use customer on a long term basis. Self-Own Model Considerations:

1. Bernards Township would have to budget to finance the solar project. For purposes of this analysis Metro included 4% cost of capital for the financial pro forma.

2. Bernards Township would receive “free” solar energy for the life of the solar project. 3. Bernards Township would be the owner of SRECs, would market those SRECs. SRECs

could be sold on an annual basis or in long term strips depending on how much risk and/or reward the end user would like to take.

4. The end user would decrease its carbon footprint and have an opportunity to receive goodwill for being “green.”

Purchase Power Agreement Benefits: This option is typically used by public sector entities who do not qualify for the investment tax credits, accelerated depreciation benefits, etc.

1. No capital investment by the end user. 2. The developer is able to take advantage of federal tax incentives (generally, as non-profit

entities public bodies/agencies cannot take direct advantage of tax incentives). 3. The end user realizes cost benefits through a reduction in current energy costs and a more

predictable cost of energy. 4. Since the developer would own the SRECs, the public agency/end user is shielded from

the risks of the evolving SREC market. 5. The public agency/end user would decrease its carbon footprint and have an opportunity

to receive goodwill for being “green”.



Bernards Township

Bidding Process Recommendations Our recommendation is for Bernards Township to move forward with implementation of a solar project at both sites, by authorizing the development of a Request for Proposals (RFP) from qualified solar providers. The RFP can be developed either as a Design-Build specification, or a Performance specification. The Design-Build specification will require a full, engineered design of specific photovoltaic roof arrays, as well as the mounting systems, as compared to the Performance specification, which will provide specific design parameters to each of the bidders, but will allow the bidders to submit the technology they specialize in. Potential Next Steps Assuming Bernards decides to have the PV systems installed, the following is a list of items to be addressed:

1. Hire a consultant to finalize system design, construction costs and develop the technical specification for the project;

2. Draft and issue a solar RFP; 3. Conduct pre-bid meeting with site visit for the Bidders; 4. Review bid responses and assist Bernards Township with selection of bidder; 5. Engage the consultant to provide project management from the point of contracts

being issued to the winning Bidder, until the PV project is commissioned.

Documents

Solar Feasibility Analysis Presented to: Bernards Township ... committee/Document/SolarFeasStudyMetr… · frame of module to become a solar panel. ... Under full sun, each panel