Is Behind the Meter Solar A Good Idea? 07.2020 Webinar will start - PowerPoint PPT Presentation

Is Behind the Meter Solar A Good Idea? 07.2020 Webinar will start shortly Thank you www. w.Exe xergyE rgyEne nerg rgy.co com

What Does Demand Backup Renewable Response Generator Energy Exergy Do? Exergy is a simple and easy to use ONE-STOP Peak Batteries Shaving SOLUTION marketplace for municipalities and businesses that want to be green, resilient and save money. Simple Savings up Onsite Billing to 15% Solar We are going to take this in 3 parts: 1. All Solar is Not the Same 2. Example Commercial Solar 3. Better Way

The First Place We Turn 78% of companies want to purchase more renewable energy and would like to be 100% Green, if possible. Their first thought is to install solar. Is this the best use of resources and capital for a company that wants to be green?

There are 3 Distinct Solar Markets 1. Utility Scale: Large systems typically 10 MW or larger. Connected to the Grid. 2. Residential: Home rooftop systems. Typically net metered. 3. Commercial and Industrial: Small to medium sized systems, typically net metered.

Comparative Markets Commercial and Industrial Solar Has Been Declining

Why is C&I Solar Lagging / Difficult 1. Lower Price Energy. Less Savings 2. Complex tariffs with demand charges. 3. Complex real estate issues (leases). 4. Shorter Planning Horizon. Long PPAs 5. Tax Benefits hard to use. 6. Roofs are often difficult (other items). 7. Costs are >2x the cost of utility electricity.

Less Savings Available Residential Rates are double Industrial Rates. .

Let’s Build Commercial Solar Industry Average Numbers for small commercial building • 123,120 kWh per year of consumption • Insolation area (capacity factor): 1,400 kWh/kWp • Average energy price = $0.12 kWh (total bill / kWh) • Standard Commercial Tariff structure (energy + demand) • Goal to offset 100% of electricity • Limited Roof space • No ground-mount area available • Carport Solar much too expensive

Electric Bill Before Solar Peak Energy Customer Demand Month Energy Demand Other Total (kWh) Charge (kW) 1 9,897 81 $61 $562 $406 $81 $1,111 2 12,332 83 $57 $711 $448 $96 $1,313 3 11,838 67 $57 $682 $353 $87 $1,179 4 6,654 72 $61 $387 $392 $59 $900 5 10,919 82 $57 $633 $444 $85 $1,219 6 11,911 83 $57 $690 $876 $123 $1,746 7 9,561 25 $57 $554 $265 $64 $940 8 5,657 35 $57 $313 $373 $58 $802 9 12,655 65 $57 $800 $686 $121 $1,664 10 11,370 77 $59 $681 $785 $119 $1,643 11 9,626 57 $57 $559 $505 -$15 $1,106 12 10,700 83 $55 $615 $408 $85 $1,163 Total 123,120 $693 $7,187 $5,941 $964 $14,785 % of Total 48.6% 40.2%

Solar Design • To cover 100% of annual usage, you need 90 kW of solar • Assume 330W panel at 19.5 sq. ft. (standard size) • You need 273 panels, or 5,320 sq. ft. of roof space • This client has about 5,000 sq. ft. usable. We cannot put 90 kW on their rooftop. Final size limited to 81 kW. • Full turnkey project cost is $2.20 per watt • This is super aggressive on sizing. Likely to be smaller.

Solar Effect on Load

How Much Do We Save? • Theoretically, should save 90% (81 kW / 90 kW) • Actually save only 58% (or $8,600), declining at 0.5% per year. • The lack of savings is because the solar output and the peak demand usage not aligned. • The percentage of the bill allocated to demand charges goes up .

What is the ROI? Year 0 1 2 3 4 5 Full immediate use of Tax Credit (-) Capex $ (177,540) (+) Saving $ 8,608 $ 8,565 $ 8,522 $ 8,480 $ 8,437 (+) ITC $ 46,160 Total Cash Flow $ (177,540) $ 54,768 $ 8,565 $ 8,522 $ 8,480 $ 8,437 Hardly a Slam Dunk IRR 2.19% Year 0 1 2 3 4 5 Investment Return Tax Credit Used Over 10 Years (-) Capex $ (177,540) (+) Saving $ 8,608 $ 8,565 $ 8,522 $ 8,480 $ 8,437 (+) ITC $ 4,616 $ 4,616 $ 4,616 $ 4,616 $ 4,616 Total Cash Flow $ (177,540) $ 13,224 $ 13,181 $ 13,138 $ 13,096 $ 13,053 IRR 1.91%

Is There A Better Way? • Exergy’s Always Green, Always On is a much better solution. • Supply 100% Renewable Energy from less expensive utility-scale renewables. Matched to the load. • Exergy supplies a natural gas backup generator to keep you running if the grid goes down. • Saves you 10-15% on current spend. • Zero upfront cost or investment.

What is the Outlook? “Energy prices are forecasted to fall 10% over the period in response to continued low cost natural gas and declining costs of renewables. Transmission and Distribution costs are expected to grow 24% and 25% respectively over the period, due to the need to replace aging infrastructure and accommodate new reliability standards.” -Energy Information Administration

Questions? E NERGY RGY S TORAGE RAGE D EVELO LOPMENT PMENT P ARTNER RTNERS

Want to be Demand Backup Renewable Response Generator Energy Green and Resilient? ONE-STOP Peak Batteries Shaving SOLUTION Let Exergy Simple Savings up Onsite Do it for you Billing to 15% Solar

Thank you. CONTACT ACT David id March rch march@ ch@exer exergye gyenergy. nergy.com com (704) 4) 788-19 1909 09