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Agenda1. Energy Efficiency – best bang for your buck
2. Context for Clean Energy in Minnesota
3. Renewable Energy Options
4. Questions
5. Chat with resource experts and solar developers
READY FOR SOLAR? WHY ENERGY EFFICIENCY MATTERS
Mike Rehm
Neighborhood Energy Connection | Energy Advisor
651-328-6224 | [email protected]
Energy Efficiency Solves Problems
• Lower monthly energy consumption
• Lower monthly energy costs
• Solve comfort problems like drafts and cold spots
• Prevent issues like ice dams
• Address uncontrolled moisture and ventilation problems
…all through efficiency improvement projects
(and earn rebates and other incentives and use competitive financing, if needed)
Energy Efficiency Means What Again?
Using less energy to provide the same service
Energy efficient homes have:
• Fully insulated attic & walls
• Efficient lighting and appliances
• Efficient heating system
• Efficient water heater
Energy Efficiency: The Smart Step Toward Solar
The cheapest energy is the energy that you do not use.
increases the % of your home that is powered by solar energy.
Reducing the amount of energy you consume,
Energy Efficiency Lowers Energy Bills
MN
Dep
artm
ent
of
Co
mm
erce
-D
ivis
ion
of
Ener
gy R
eso
urc
es
55% Heating and Air Conditioning
15% Lights & Electronics
15% Appliances
15% Water Heating
The average Roseville household spends
$1,852/year on gas & electric utilities.
Energy Efficiency, with The NEC Every Step of the Way
SOLAR ENERGY
WINDOWS
APPLIANCES
WATER HEATING
HEATING & COOLING
INSULATING & VENTILATION
AIR SEALING
LIGHTING
LOW COST/NO COST
BEHAVIOR
Have an Energy Auditor analyze your home
Your home is unique!
HOME ENERGY AUDIT
Infrared Camera Scan Blower Door Test CO2 Test & More
Get those low cost measures installed by the pros
Sign up today for either a $40 or $20 visit.
HOME ENERGY SQUAD: A quick, hands-on service that installs key energy-saving measures in your home.
After the presentation, stop by the NEC table
• Ask us questions
• Figure out your best next step
• Learn about potential energy efficiency rebates
Sign up for an Xcel Energy audit:
$100 Infrared Audit or a $60 Blower Door Audit
Combine it with a $20 Home Squad Visit
Community Solar Gardens 101
Trevor DrakeMetro Clean Energy Resource Team (Metro CERT)Great Plains Institute
CERTs: We’re here to help
CERTs Mission: Connect individuals and their communities to the resources they need to identify and implement community-based clean energy projects
Agenda1. Energy Efficiency – best bang for your buck
2. Context for Clean Energy in Minnesota
3. Renewable Energy Options
4. Questions
5. Chat with resource experts and solar developers
Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/
Minnesota Key Energy Policies
1. Conservation Improvement Program (electric and gas):
o Requires utilities to spend a certain amount of annual revenue on efficiency investments (Gas .5%, Electric 1.5%, Xcel 2%)
2. Net Metering (electric): Customers must be compensated for electricity they generate and feed into the local utility’s grid (1,000 kW limit for investor-owned utilities, 40 kW limit for coops and muni’s)
3. Renewable Energy Standards (electric):
o Xcel Energy – generate/procure 30% by 2020, plus 1.5% solar
o Investor-owned utilities – generate/procure 25% by 2025, plus 1.5% solar
o Cooperative and municipal utilities – generate/procure 25% by 2025
Renewable Energy Credits/Certificates (RECs)
A renewable energy certificate (REC) … represents the property rights to the environmental, social and other non-power attributes of renewable electricity generation.
RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.
Source: https://www.epa.gov/greenpower/renewable-energy-certificates-recs
The Current State of Solar
• Now over 30 GW of solar PV installed in US
• Enough to power over 6 million homes
• Solar represented 29.4% of all new electric generating capacity brought on-line in the U.S. in 2015, more than natural gas!
SEIA Solar Market Insight Report
Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/
Individual Solar
• Need a strong solar resource (incl. property)
• High cost, but opportunity to save money/hedge against electricity price increases long-term
• Incentives and tax credits available
• Most visible renewable energy option
Key Benefits: Independence, Social NormingKey Benefits: Long-term cost savings, independence, social norming
Is My Home Good For Solar?
• Do I have a south facing roof or
location?
• Are there shade issues?
• When do I anticipate re-roofing?
• Is my roof structurally sound?
• Am I going to be in the home for a
while?
• Is my home energy efficient?
• Talk to a solar installer!
The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.
mn.gov/solarapp
mn.gov/solarapp
The Minnesota Solar Suitability App displays solar insolation and solar photovoltaic (PV) potential with 1 square meter resolution for the entire state of Minnesota. It was created using Lidar data and GIS technology.
mn.gov/solarapp
Other Options: Rooftop Solar
Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/
Solar Garden Subscriptions
• In Xcel program, subscriptions offered by 3rd-party developers
o Possible to shop for different offers
o You join by signing a “subscription agreement” – a contract written by the developer that explains the details of your subscription
o Developers are NOT regulated
• Term of agreement is normally 25 years
o Exit clauses allow you to end earlier if you move, die, or decide you don’t want to continue (sometimes incur a fee)
• Possible to lower your electricity bill starting on day 1
o Best if your payment is tied to garden production (e.g., you only pay for electricity that is actually produced)
Join others in buying into a larger solar array; get credits on your electricity bill proportional to your subscription
Definition:Centrally-located solar PV systemsthat provide electricity to participating subscribers
Community Solar Gardens
solargardens.mncerts.org
How does it work?
Xcel Energy Program
OPERATOR: primary group running the solar garden
UTILITY: approves garden, tracks production, provides credit.
SUBSCRIBERS: individuals or groups to get solar power
3rd Party Operator develops & runs garden. Maintains relationship w/ subscriber for payment. Utility provides subscriber w/ bill credit.
1. What is your annual electricity usage?
o 9,600 kWh
Subscribing to a Solar Garden (Xcel Energy Program)
1. What is your annual electricity usage?
o 9,600 kWh
2. How much of your usage do you want to offset with solar?
Subscribing to a Solar Garden (Xcel Energy Program)
1. Determine how much electricity you use per year
o 9,600 kWh
2. How much of your usage do you want to offset with solar?
o 100%
Subscribing to a Solar Garden (Xcel Energy Program)
1. Determine how much electricity you use per year
o 9,600 kWh
2. How much of your usage do you want to offset with solar?
o 100%
3. Which company has an offer that meets your goals?
Subscribing to a Solar Garden (Xcel Energy Program)
AVAILABLE CSG PROJECTS
cleanenergyprojectbuilder.org
Research Solar Developers…
Visit the CERTs table later to get a flyer with the web
address!
Find a company that you like
• Pricing: What is the pricing structure? Is payment tied to production?
• Transferability or Early Termination: What happens if you move or want to cancel?
• Project Construction and Timing: What stage is the project currently at? When can you expect your first bill credit?
• YOUR Goals and Values: Garden location? Developer business model? Customer service?
Subscribing to a Solar Garden (Xcel Energy Program)
1. Determine how much electricity you use per year
o 9,600 kWh
2. How much of your usage do you want to offset with solar?
o 100%
3. Which company has an offer that meets your goals?
Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)
Once the garden begins producing electricity…
You will… Key Details
A) Begin making paymentsto the developer for your subscription
• Pay in dollars per unit electricity produced (most contracts)
• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator
Polar Solar Pricing: $.14/kWh x 1.0275 each year(2.75% escalator)
Once the garden begins producing electricity…
You will… Key Details
A) Begin making paymentsto the developer for your subscription
• Pay in dollars per unit electricity produced (most contracts)
• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator
B) Begin receiving credits on your monthly Xcel bill
• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities
Commission to match changing electricity prices
Standard rate (retail cost of electricity: $.12596/kWh
Standard + $.02 incentive (Gardens > 250 kW): $.14596/kWh
Standard + $.03 incentive (Gardens ≤ 250 kW): $.15506/kWh
MOST COMMON
Once the garden begins producing electricity…
You will… Key Details
A) Begin making paymentsto the developer for your subscription
• Pay in dollars per unit electricity produced (most contracts)
• Payment rate set by developer in contract• Most contracts have starting rate x annual escalator
B) Begin receiving credits on your monthly Xcel bill
• Credited in dollars per unit electricity produced • Bill Credit rate is based on avg. cost of electricity• Rate is updated annually by Public Utilities
Commission to match changing electricity prices
C) Continue to pay your monthly Xcel bill…
• If monthly bill > $0, you pay the difference
• If monthly bill < $0, a credit is carried to the following month
• If annual credits > annual bills, Xcel will write you a check at end of year
Monthly costs/savings(800kWh/month @ 100% subscribed)
MONTH 1Without Solar Garden Subscription
With Solar Garden Subscription
Monthly Xcel Energy Bill($.12596/kWh)
$100.77 $100.77
Bill Credit($.14596/kWh)
N/A -$116.77
Payment to Solar Garden Developer
($.14000/kWh)N/A $112
TOTAL Monthly Cost $100.77 $96
Costs/Savings at specific points in time(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)
Monthly Costs/Savings at Different Points in Time
(Monthly difference between
bill credit and payment to the
developer)
Year 5$ per month
Year 10$ per month
Year 15$ per month
Year 20$ per month
Year 25$ per month
$6.80 $10.36 $15.37 $22.20 $31.31
Cumulative Savings over 25 Years(Cumulative
difference between bill credits and
payments to the developer)
Savings after 5 years
Savings after 10 years
Savings after 15 years
Savings after 20
years
Savings after 25 years
$341 $852 $1,599 $2,662 $4,137
$0.1400
$0.268
$0.146
$0.308
$0.08
$0.13
$0.18
$0.23
$0.28
$0.33
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
$/k
Wh
Pro
du
ced
by
Gar
de
n SUBSCRIPTION RATE
BILL CREDIT RATE (3.5% Annual Increase)
Years Subscribed
Rates over 25 years(assuming bill credit rate increases by 3.5% each year on average, due to increasing electricity prices)
Bill Credits Changing (Effective January 1st, 2017)
• “Value of Solar” (VOS) = All benefits - all costs
• 2016 VOS rate was $.0995
Current residential bill credit rate at $.14596
• Applies to garden applications “deemed complete” – early stage of solar garden development
Subscriptions under the old rate will still be available for some time
Photo credits: http://realhousewivesofmn.com/category/minnesota-activities/
Green Pricing – “Windsource”
• Sign up online with your utility (takes about 5 minutes)
• You pay for renewable energy, but DON’T pay for fossil fuel costs
• Net average cost in Xcel’s program is $.85 per 100 kWh
o Average customer would pay an additional $6.80 per month
• Adds renewable energy BEYOND state mandates
• 1 year initial term, then can cancel at any time
Pay a small premium to offset your usage with up to 100% renewable energy
Solar Garden Green Pricing
Pricing Opportunity to save money Small cost
RenewableEnergy
Contribute to state mandatesAlways beyond state
mandates
Simplicity Complex sign-up process Easy sign-up process
Term 20-25 years 1 year
Amount Any amount up to 120% of usage100 kWh blocks OR 100%
of usage
Key Contact Private Developer Utility Company
Delivery of benefit
Utility bill Utility bill
Which option meets your needs?
Trevor DrakeMetro CERT Co-Director
Great Plains [email protected]
Mike RehmEnergy Advisor
Center for Energy and [email protected]
Questions?