Financing Resilient Power in Underserved Communities: Moving Forward with Distributed Solar+Storage Projects October 20, 2020
WEBINAR LOGISTICS Join audio: • Choose Mic & Speakers to use VoIP • Choose Telephone and dial using the information provided Use the orange arrow to open and close your control panel Submit questions and comments via the Questions panel This webinar is being recorded. We will email you a webinar recording within 48 hours. CEG’s webinars are archived at www.cleanegroup.org/webinars
WEBINAR SPEAKERS • Seth Mullendore , Clean Energy Group • Curtis Probst , NYCEEC • Kaitlin Kelly , Massachusetts Department of Energy Resources • Emily Jones , LISC Boston • Christina McPike , WinnCompanies • Thomas Mitchell , LISC NYC 3
Summary of NYS Storage Incentives OCTOBER 2020
NYS Storage Incentive Summary – Upfront Payments For up to 5MW AC; new, permanent, and stationary in New York; operated for electric load management or shifting renewable generation; under an IOU rate; interconnected BTM or directly into distribution system Commercial Region Rate ($/kwh) Opened Closed Submitted Long Island (Block 1) $250 7/2019 -- $3.6 mil (36%) Westchester County (Block 1) $175 4/2020 -- $1.3 mil (9%) New York City * (Block 2) $300 5/2019 7/2020 $18.0 mil (100%) (Block 3) $240 7/2020 -- $15.4 mil (98%) Rest of State (Block 1) $350 4/2019 5/2019 $35.0 (100%) (Block 2) $250 5/2019 7/2019 $31.2 (100%) (Block 3) $200 7/2019 11/2019 $30.0 (100%) (Block 4) $125 11/2019 12/2019 $18.8 (100%) Residential Region Rate ($/kwh) Submitted Long Island $250 $1.3 mil (50%) 2 * NYSERDA plans to release additional NYC blocks shortly
NYS Storage Incentives Summary - VDER For commercial community solar or standalone storage projects, electric bill credits during injections into the grid are set using the VDER rate (“Value of Distributed Energy Resources”). The VDER rate is calculated as the sum of the “value stack” components: • Locational-Based Marginal Pricing • Capacity, Environmental Value, Locational Adders • Demand Reduction Value (DRV) >>>Adding storage to a commercial solar project can increase the VDER compensation by capturing more DRV and Capacity value. The DRV value and hours within which injections are compensated depends on the utility and load characteristics of that area, and is payable during certain windows of the day that represent that area’s highest demand periods: • In a Con Ed business district, peak demand may be mid-day or afternoon (11am – 3pm; or 2pm – 6pm) • In a Con Ed residential district, peak demand may be later in the day (4pm – 8pm; or 7pm – 11pm) By adding storage, a solar project can capture more revenue. For example: • A solar project in a 7-11pm DRV area may receive almost no DRV revenues from reducing grid demand at that time (because solar output is low) • That same project with storage may store energy mid-day (during maximum solar output), and discharge energy into the grid from 7-11pm, and capture significant DRV revenues 3
Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth Solar Plus Storage and Low Income Incentives in SMART Kaitlin Kelly Deputy Director, Renewables Division RPS October 20, 2020
SMART • Declining block tariff based incentive program • Base incentive rate is determined by size of project and electric distribution company • Adders are available for additional $/kWh • Low Income Adders and Storage Adder available for all project sizes 2 Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth
SMART Low Income Incentives • Small (<=25kW) ➢ Eligible LI project receives incentive rate 30% higher than rate for <=25kW • Large (between 25kW and 5MW) ➢ LI Community Shared Solar Adder $0.06/kWh ▪ Has to serve 50% eligible LI customers ➢ LI Property Adder $0.03/kWh • Eligible LI Off-taker ➢ Residential ratepayer on LI rate, or that lives in Environmental Justice Income eligible area 3 Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth
SMART Energy Storage Incentives • Storage Adder available to all project sizes • Adder value is variable depending on ratio of PV Capacity vs. BESS Capacity and duration of BESS • Energy Storage Adder Calculator Example: 4MW PV paired with 2MW BESS ▪ Adder for 3 HR BESS: $0.0461/kWh ▪ Adder for 6 HR BESS: $0.0580/kWh • Eligible Energy Storage Systems must meet operational and technical requirements to remain eligible for the adder 4 Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth
LI Solar + Storage in SMART W/Energy Shared No Energy Shared Storage Project Type Storage (kW AC) (kW AC) <=25kW 9,869 175,825 <=25kW LI 119 6,807 W/Energy Shared No Energy Shared Storage Project Type Storage (kW AC) (kW AC) Up to 5MW 450,590 450,752 LI Community Shared 8,544 32,442 Solar LI Property 500 400 • Challenges exist with implementing LI policies and ESS policies • DOER has worked to improve adoption of both LI and ESS, continues to prioritize these goals 5 Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth
Solar+Storage for Affordable Housing CEG and NYCEEC Webinar October 20, 2020
LISC Boston’s Green Homes Project • Build ild owner ner demand and (2010 10-20 2012) New utility program created: LEAN Low Income Multi Family. 11 nonprofits enrolled. • • Ac Achie ieve deeper er savi vings ngs (2012-2015) 5) HUD Energy Innovation award. Statewide engagement. • • Goal: achieve 20+% savings. Actual: 29% electric, 23% gas. • Convene ne stakeholde eholders, s, in infor form poli licy cy (2014 14-20 2016) 6) • Green Asset Management Plans: 20 owners, 29,000 units. • Focus on connecting utilities and housing finance agencies. • All ll of the above ve: : Effic ficie ient nt, cle lean n energ rgy, , resil silie ient nt + health lthy homes es (2016-toda oday) y) • Comprehensive energy audits for properties nearing rehab. Resiliency assessments and emergency preparedness plans for vulnerable properties. • • Solar + storage feasibility assessments for promising properties. Policy focus on scaling Passive House, clean energy access for affordable housing sector. • 2
Owner Roadmap for Advancing Solar+Storage 1. Benchmark portfolio to identify opportunities. 2. Audit properties approaching rehab. 3. Maximize efficiency and clean energy incentives. 4. Request preferential financing. 5. Train staff and commission systems. 3
#1: Benchmark portfolio to identify opportunities. LISC’s Green Asset Management Plan Dashboard allows owners to track progress on energy and water efficiency, clean energy tec h, and healthy housing goals (Image Credit: LISC Boston). 4
#2: Audit properties approaching rehab. Recommended solar + storage system size from resiliency assessment of existing property in Boston, MA (Image Credit: New Ecology). Building scientists Neil Donnelly and Emma Van Lieshout assess a building for energy and water savings, applicable clean energy tech, resiliency, and healthy housing opportunities (Photo Credit: New Ecology). 5
#3: Maximize efficiency and clean energy incentives. Allston Brighton CDC’s Green Retrofit Project with Cliff Mass Save LEAN Multifamily Program’s Geissler and Dariela Maga (Photo Credit: Dariela Maga). Roadmap for Maximizing Energy and Cost Savings at Refinance (www.leanmultifamily.org). 6
#4: Request preferential financing. Housing finance agency Massachusetts Housing Partnership (MHP) now offers permanent first mortgage financing for CPC’s Underwriting Efficiency Manual both new and existing affordable housing developments for investors (Image Credit: CPC). (Image Credit: MHP). 7
#5: Train staff and commission systems. LISC Boston’s Fall 2019 Building Operator Certification (BOC) Training for multifamily affordable housing facilities managers (Photo Credit: LISC Boston). 8
Thank You! Emily Jones 617.410.4336 ejones@lisc.org lisc.org/boston
Solar + Storage Feasibility
WinnCompanies Through the efforts of our outstanding team members , WinnCompanies is the creator and champion of the best possible living communities for our residents and clients achieved through strong partnerships , a focus on sustainability , who work with a passion for excellence and a commitment to exceed expectations . 2
Commitment to Sustainability ▪ Strong Track Record: ▪ $30m+ invested in energy & water conservation ▪ Leader in solar development – 3 MW in MA, CT, DC ▪ Roof mounted, Thermal, Community Shared Solar ▪ Off-site VPPA ▪ Continuous Innovation: ▪ Deep Energy Retrofits ▪ Zero Over Time ▪ Solar + Storage: ▪ CEG & American Microgrid Solutions (AMS) ▪ Multi-site Battery Storage & Resiliency Feasibility Analysis 3
Storage Feasibility Analysis ▪ 90 sites/6 states → 23 sites/4 states → MA Historic Mill Buildings ▪ Large roofs, central plants (bigger loads), elderly ▪ Eversource and National Grid ▪ High Demand Charges ▪ Peak Shaving ▪ Connected Solutions (DR) ▪ SMART Blocks Matter ▪ Projects achieving 7-9% IRR ▪ Storage-only (no solar) does not work. ▪ Solar only (no storage) is more attractive. 4
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