FREMONT UNIFIED S C H O O L D I S T R I C T Solar Feasibility Study Results Vanir Construction Management, Inc. & Newcomb | Anderson | McCormick (NAM) December 13, 2017 1
Why are we here? • Create energy and cost savings for Fremont USD • California Public Utility Commission (PUC) opportunity that expires at the end of 2017 • Solar systems work well at school districts • 126 schools serviced by PG&E have implemented solar 2
NAM Overview Who we are • 30 years experience in professional energy management activities and direct program management and technical consulting work with PG&E and other utilities statewide • NAM was founded in San Francisco in 2005 specifically to meet the challenge of designing and managing statewide IOU energy efficiency partnership programs • 22 full-time employees, including 9 Professional Engineers (P.E.), 5 Leadership in Energy and Environmental Design (LEED) Accredited Professionals and 1 LEED Accredited Green Associate, has the requisite in-house expertise, experience, and resources to perform all phases of renewable and advanced energy generation projects • Long history of energy efficiency program design, implementation, and evaluation for utilities and local governments in California – including many of the largest and most innovative programs in the state Who we are not • We are not a manufacturer or installer of solar panels • We do not have a vested interest in a particular manufacturer, installer or procurement method 3
Case for Solar • Cost Benefits – Potentially 5.24 megawatts (MW) of solar across 10 secondary sites resulting in ~$36.2 million reduced utility costs over 25 years ($58.5 million in reduced utility bills minus $22.3 million installed cost) – Energy independence with more consistent and predictable utility expenditures – Favorable rate structure available until December 24, 2017 • Community Benefits – Increased community and political awareness surrounding renewable energy and sustainability – Reduced carbon footprint – Renewable curriculum can be implemented 4
Assumptions • Solar arrays sized to offset ~ 90% of site’s annual load • Utility rate escalation at 3.5% every year, based on PUC historical data • Predicted cumulative utility expenditure over 25 years is $77.6 million (1) • With solar, cumulative utility expenditure over 25 years is $19.2 million – Solar creates $58.5 million in general fund savings • Assumed rate switch to solar friendly rate for all sites • Grandfather into current rates for 10 years – Resulted in $6.4 million in additional savings • Additional assumptions in appendix 5 1 American and Mission San Jose High load to be verified
Incentive Programs/Funding Mechanisms • Opportunities for low interest loans, competitive Power Purchase Agreements (PPAs), or state wide grants available – California Energy Commission (CEC) Loans • $0.7 million, 0% interest loans as of 8/3/17 • Approximately $1.0 million expected to be available during fiscal year 2017-2018 – Clean Renewable Energy Bonds (CREBs) • Low interest funds available to public entities • Used to pay for renewable energy projects • NAM has successfully obtained a CREBs award in the past – Funding through California Lending for Energy and Environmental Needs 6 (CLEEN) Center
Solar Benefits Summary Annual Total Installed Bill System Size Offset 25-year Net Benefit Generation Cost Savings kW DC MWh % $M $M Ownership 4.5% Loan PPA Centerville Jr. High 286.4 447 89% $1.2M $3.4M $2.2M $1.3M $2.0M Hopkins Jr. High 271.3 435 91% $1.2M $3.4M $2.2M $1.4M $2.1M Horner Jr. High 210.2 340 90% $0.9M $2.8M $1.9M $1.3M $1.8M Thornton Jr.High 316.2 492 92% $1.3M $3.3M $1.9M $1.0M $1.8M Walters Jr. High 187.9 306 89% $0.8M $2.3M $1.5M $1.0M $1.4M American High School 2 842.9 1,319 TBD $3.6M $9.1M $5.5M $3.1M $5.2M Irvington High School 768.2 1,247 91% $3.3M $9.5M $6.2M $4.0M $5.8M Kennedy High School 677.0 1,072 90% $2.9M $7.5M $4.6M $2.7M $4.3M Mission San Jose High School 2 898.4 1,418 TBD $3.8M $8.8M $5.0M $2.4M $4.6M Washington High School 781.2 1,246 80% $3.3M $8.4M $5.1M $2.9M $4.7M TOTAL 5,240 8,320 $22.3M $58.5M $36.1M $21.1M $33.9M 7 2 Load data not available at American and Mission High. Assumed to be greater than solar generation; to be verified.
Cumulative Net Benefit (savings minus cost) Solar Photovoltaic (PV) Portfolio Fremont USD (5.24MW) $36.2 M $40 M $33.9 M $30 M $33.2 M US Dollars (Millions) $21.1 M $20 M Ownership $10 M Loan 1% $0 M Loan 4.5% 0 5 10 Year 15 20 25 PPA -$10 M 8 -$20 M
Procurement Strategies Panel Ownership Power Purchase Agreement (PPA) • • Pros Pros – – Lowest upfront cost Greatest lifetime savings – Maintenance and repair performed by vendor – Locks in utility rates for life of PPA – this will protect • Cons the District from volatility in utility rates from PG&E – – Highest upfront cost for procurement and Needs to analyze historical trend carefully to make installation PPA favorable – Maintenance and repair performed by owner • Cons – Reduced savings compared to panel ownership – Locks in utility rates for life of PPA – this is not favorable to the District if the utility rates from PG&E are in the downtrend. – Rates are locked in with escalation 9
Solar PV Procurement Process Today Feasibility Construction Procurement (8-12 months) (In Progress) (4 months) • Utility Data Analysis • RFP Creation • Project Management • System Sizing, • Site Walk • Design Review Location and Type • Proposal Evaluation • Technical Oversight Analysis • Construction • Vendor Interviews • Financing Options Management • Vendor Selection • Economic Modeling • Project Closeout • Vendor Negotiations • Feasibility Report • Performance • Interconnection Management Application 10
Next Steps • Staff seeks directions from the Board for possible next steps such as: – Submit solar interconnection application – Develop RFP package to solicit bids – Identify funding options – Other 11
Questions? Thank you! Amy C. Chiang, EIT Kyle B. Manahan, P.E. Energy Engineer Director amy_chiang@newcomb.cc kyle_manahan@newcomb.cc 415-230-8412 415-230-8423 Newcomb | Anderson | McCormick 201 Mission Street, Suite 2000 12 San Francisco, CA 94105
APPENDIX For Additional Reference 13
NAM Experience What we do • Reviewed, analyzed, developed or designed over 25,000 energy projects in over 10,000 buildings in the past 30 years – These projects have resulted in annual energy savings of over 300 million dollars • Our work developing renewable generation projects (200 MW over the last three years) for public sector clients includes feasibility studies, economic and engineering analysis, technical review, permitting, utility interconnection, public relations, RFP development and review, site investigative field work, and subsequent construction management and commissioning • Provided our services to five college districts, resulting in 11.5 MW of successful solar installations • Assisted in the procurement and management of over $40 million in renewable construction costs for college districts • Represent purchasers of renewable & self-generation systems – we have no affiliation with any system integrators or suppliers • Develop projects that are economically & environmentally beneficial, supporting clients across the entire project lifecycle 14
Additional Assumptions Solar System Assumptions Solar Performance Panels Trina 310W • Solar arrays sized to off-set ~ 90% of Inverters Fronius 24kW site’s annual load • Systems’ performance was modeled Panel tilt 7 o utilizing local weather data Solar panel degradation 0.5% Useful life 25 years Economics Total Installed Cost • Loan rate equal to 4.5% with a 25-year term Construction Costs 3 $3.75 per Watt • PPA rate (escalates 0% annually) Project management & 8% (ownership) – contingency 5% (PPA) $0.12 per kWh • Guarantee cost – guarantees 95% of O&M Costs $50 per kW per year the solar bill savings payable by vendor (3% annual escalation) Guarantee Costs $0.12 per Watt 15 3 Division of the State Architect (DSA) pre-check solutions assumed
American High School Solar PV Annual Production: 1,319 MWh American High 843 kW Total Installed Cost: $3.6 Million Trina Solar 310W Modules (2,719) Load Offset: Unknown Fronius 24kW Inverters (29) 25-year Potential Net Benefit Ownership: $5.5 Million Loan: $3.1 Million (5) Carports PPA: $5.2 Million 64,000 ft 2 Potential General Fund Savings: $9.1 Million *Load was assumed to be greater than annual generation and in a similar profile as Irvington, Kennedy, and Washington High *System can be adjusted for added *New buildings to buildings 16 be added here
Irvington High School Solar PV Annual Production: 1,247 MWh Irvington High 768 kW Total Installed Cost: $3.3 Million Trina Solar 310W Modules (2,478) Load Offset: 91% Fronius 24kW Inverters (26) 25-year Net Benefit Ownership: $6.2 Million (5) Carports Loan: $4.0 Million 55,000 ft 2 Total PPA: $5.8 Million General Fund Savings: $9.5 Million 17
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