Workshop E Financing & Implementing Solar (PV) & Storage Projects in Ohio’s Changing Energy Climate Tuesday, February 19, 2019 10:45 a.m. to Noon
Biographical Information Mike Foley, Director of the Department of Sustainability Cuyahoga County, 2079 E. 9th St., Cleveland, OH 44115-1302 216-443-3055 mfoley@cuyahogacounty.us Mike Foley is the first Director of the Department of Sustainability for Cuyahoga County. He was appointed to lead the office in February 2015 by Executive Armond Budish after having served in the Ohio General Assembly from 2006- 2014. Foley represented the 120,000 people of the 14th House District and was active in the legislature on environmental, utility, revenue and budget issues. Term limits prevented Foley from running for office after 2014. Prior to being in the General Assembly, Foley was Executive Director of the Cleveland Tenants Organization (CTO) for almost ten years and has extensive experience in affordable rental housing issues both locally and those involving national policy. Before CTO he was the Court Administrator for Cleveland Municipal Housing Court. Mike has been married to his wife Chris for 31 years, and they have 4 children. Patrick Smith, Vice President, IGS Solar 6100 Emerald Parkway, Dublin, OH 43016 614.659.5089 Patrick.Smith@igs.com Patrick joined IGS in 2013 as one of the first employees of its distributed generation companies. He helped to establish IGS Solar in 2015, which has now grown to one of the largest solar development and financing companies in the US. Patrick is currently responsible for commercial business development of IGS Solar across the U.S. with a focus on strategic national accounts. Prior to joining IGS, he held sales and operations management roles within the electric power and utility construction sectors. Patrick has nearly 20 years of experience with start-up, middle-market, and global companies. A proud “OU Bobcat”, Patrick holds two degrees from Ohio University. He and his wife Erin have 3 children and reside in Gahanna, OH.
Solar Industry & Storage Updates
IGS Introduction
Introduction to IGS
Our Companies
IGS Solar Portfolio Overview
IGS Solar – Our Services
Solar Industry Snapshot
Solar is Viable Nationally
Most Americans Support Green Activity
Strong Growth Projections
Investment Tax Credit Impact Community Support for Solar
Solar is a Key Contributor to Job Growth
Solar Industry Creates Jobs
Solar Costs Less Every Year Community Support for Solar
Solar Leads New Renewable Capacity
The Shift To Renewables
The Shift To Renewables
US is a Leader in the Global Solar Market
Considerations for Solar
Solar in Ohio Solar Installed: 190MW Solar Jobs and Ranking: 6,518 (11th) National Ranking: 28th Solar Companies in State: 292 Homes Powered: 22,000 Total Investment: $565 million 1,023MW in 5 years (18 th in US) % of State’s Electricity: 0.24% Growth Projections:
Ohio’s Electric Rates
Ohio’s Solar Resources
Net Metering • Net metering is allowed • System size is limited to 120% of usage • Recover only avoided costs • Cannot offset demand charges or capacity • Retail suppliers must provide credits under separate contract • Can net meter to adjacent parcels
Considerations for Going Solar For Employee Attraction / Retention: General Considerations: Millennials see a company’s commitment to responsible • Do you have sustainability goals? business practices as a key factor in their employment decisions: • Is “immediate” savings a requirement, or a • 75% would take a pay cut to work for a responsible hedge against volatility? • Is there a budget for sustainability – in company marketing, procurement, operations? • 83% would be more loyal to a company that helps • Have you done other EE measures? them contribute to social and environmental issues • Do you have year‐round consistent usage? • 76% consider a company’s social and environmental • Are you supplied by the utility, a municipality commitments when deciding where to work or a retail supplier? • 64% won’t take a job from a company that doesn’t have strong practices
Consider The Ownership Structure For PPA’s: • Do you own or lease? • Do you have access to a field or rooftop? • Are you able to sign a multi‐year contract? • Does your roof have +15 years of life? • Do you have investment‐grade credit? For Ownership: • Can you monetize the tax benefits? • Do your ROI hurdles match the investment? • Is the best use of your capital? • Who will mange contracting, construction, performance and maintenance?
Why Now?
Case Study
Cuyahoga County Solar Farm https://www.youtube.com/watch?v=aWL0NuShHN8
Project Overview o 3.99MW / 17 acres / 35,000 solar panels o Built on closed landfill in Brooklyn, OH o Cuyahoga County / Cleveland Public Power / IGS Solar o Operates under a 10‐yr. + 10‐yr. PPA o Most “Ohio” project of its kind o 5m kWh per year – enough for ~500 homes
Project Overview o Project History o Reasons for Going Solar o Challenges and Successes o Development Process o Results o Winning the 2018 Project of the Year
What’s Next for Ohio?
Ohio Controls its Own Destiny Net Metering: Rate Design: • • Maintain a customer’s right to self‐ Empower customers to control energy generate, connect to the grid, and costs and adopt new technologies that reduce grid electricity use provide utility benefits • • Properly value solar electricity and Maintain a customer’s right to reduce adequately compensate solar their grid electricity use • customers Follow the principles of gradualism, grandfathering, and predictability Interconnection: Incentives: • • Govern the process by which To grow a local industry and bring down distributed energy physically connect ‘soft costs’ incentive programs should be to the grid stable, predictable, and declining over • Should be transparent, uniform, time streamlined, predictable, and cost‐ effective
Solar in Ohio Means… Non Net‐ Creative Partnering Metered Solutions with Munis Systems Policy the Improved Cost Realistic Industry Can Efficiency Expectations Support
Storage Industry Snapshot
Cumulative Energy Storage Deployed
Storage Policy – Starting on the Edges
C&I Storage Growing with Incentive Programs
Storage Costs Continue to Plummet Capital cost of a utility‐scale lithium‐ion battery storage system sliding another 52% between 2018 and 2030, on top of the steep declines seen earlier this decade. This will transform the economic case for batteries in both the vehicle and the electricity sector. ‐ BNEF Long‐Term Energy Storage Outlook
• “Demand charge is the strongest predictor and battery cost is the second strongest predictor of whether or not a BESS will be economically viable.” –NREL • “Commercial energy storage has been the fastest‐growing storage segment. . . driven in large part by a single value stream — demand charge management.” –GTM
Utilities’ interest in providing storage options to non‐ residential customers was greater providing options for residential customers. The reason—non‐residential customers accounted for 65% of electricity sold by volume – and often in peak periods.” ‐ SEPA
Market Economics for Demand‐Charge Savings
Q&A
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