Solar Case Studies for Tax Exempt Entities

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Solar Case Studies for Tax Exempt Entities
Presented By Richard Raeke Director of Project
Finance Borrego Solar Systems, Inc.
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Financing Options for Tax Exempt Entities

• Solar is expensive at roughly 7,000/kilowatt (or
  0.45/kWh)
• On a typical solar project, the federal tax
  incentives pay for more than 1/3, local or state
  incentive programs pay for 1/3 and the last 1/3
  comes from debt or owner equity.
• As tax-exempt entities, universities cannot
  receive the federal Investment Tax Credit/Grant
  and bonus depreciation on a purchase.
• Tax Exempt Entities have to look to more creative
  structures, such as PPAs, in order to monetize
  the tax credits.
• Without monetizing the tax credit, a customer
  would have to look to another funding source,
  such as grants or donations to make the system
  economically viable.

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A Power Purchase Agreement (PPA)

• Long term agreement to purchase electricity from
  a third party financier (PPA Provider) 20 year
  terms, predictable cost increases
• No equipment to purchase, no capital investment
• No annual maintenance expense, no asset to manage
• Customers purchase only the power produced by the
  system

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State Solar Programs

• Solar PV works in states with viable incentive
  programs
• Massachusetts Commonwealth Solar Initiative
• California Production Based Incentive (PBI)
• New Jersey SREC program
• Others include Connecticut, New York,
  Pennsylvania, Arizona, Colorado, New Mexico,
  Oregon and Hawaii
• The ARRA
• Stay tuned incentive programs are evolving.

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Case Study Boston Community Capital

• Boston Community Capital received 10 million
  from Massachusetts through the Green Affordable
  Housing Initiative
• BCC had mission of creating the most economical
  solution for putting on solar on affordable
  housing statewide
• BCC issued an RFP for an installation/financing
  partner
• Chose Borrego to help identify best sites and
  install systems
• Letters sent to dozens of affordable housing
  owners across state
• Based on responses, Borrego began evaluating
  sites
• BCC created a PPA provider Solar Energy
  Advantage Program
• Five initial sites Cambridge, Charlestown,
  Webster and Pittsfield
• Second round of installations to follow this year

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Case Study Cambridge Housing Authority

• Washington Elms PPA Solution

• Boston Community Capital PPA
• 100 KW
• Sharp 175 modules
• SMA inverters
• Uni Rac ULA racking
• 15 degree tilt SSW
• Solar on 6 buildings
• Reduce common load kWh by 60
• 20 year .165 / kWh PPA
• Annual 1.25 escalator

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Case Study Cambridge Housing Authority

• Washington Elms

• 100 KW
• Sharp 175 modules
• SMA inverters
• Uni Rac ULA racking
• 15 degree tilt - SSW

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Case Study Cambridge Housing Authority

• Washington Elms Roof Mounts and Racking

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Case Study Cambridge Housing Authority

• Washington Elms Roof Mounts and Racking

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Case Study Cambridge Housing Authority

• Washington Elms Roof Mounts and Racking

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Case Study Cambridge Housing Authority

• Washington Elms Electrical Conduit Installation

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Case Study Cambridge Housing Authority

• Washington Elms

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Case Study Cambridge Housing Authority

• Washington Elms Module Installation

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Case Study Cambridge Housing Authority

• Washington Elms Module Installation

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Case Study Cambridge Housing Authority

• Washington Elms Inverter Installation

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Case Study Cambridge Housing Authority

• Washington Elms Completed Arrays

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Case Study Cambridge Housing Authority

• Washington Elms Completed Arrays

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Case Study UCSD

• Borrego won RFP issued by UCSD
• Partnered with Solar Power Partners to provide
  financing
• Borrego signs EPC contract with SPP
• SPP signs PPA with UCSD
• Roughly 0.15/kWh
• 20 year contract
• UCSD keeps RECs
• UCSD provides insurance

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Case Study UCSD

• Site Evaluation
• Customer preferences
• Electricity consumption
• Cost per kWh
• Available space
• Meter location
• Trenching
• Conduit runs

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Case Study UCSD
Prefabrication of arrays
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Case Study UCSD
Carport Construction
Crane day
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Case Study UCSD
Carport construction
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Case Study UCSD
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Case Study UCSD
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Case Study Padre Dam Municipal Water District

• 862 kW of thin film over three sites and on
  15-foot tall carports
• 546 day sales process
• Borrego awarded RFP
• Expensive installation due to carports
• Borrego signed PPA and Site-Lease Agreement with
  Padre Dam
• Section 48 ITC faced expiration system needed
  completion by Dec. 31
• Borrego assigned PPA to a third-party at quoted
  price
• EPC negotiations finished mid-September 2008
• Construction finished and system interconnected
  mid-December
• Bonus depreciation preserved

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Case Study Padre Dam
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Case Study Padre Dam
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Case Study Padre Dam
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Case Study Padre Dam
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Case Study Padre Dam
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Case Study Padre Dam
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Case Study Padre Dam
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Solar Case Studies for Tax-Exempt
Entities Richard Raeke Director of Project
Finance Borrego Solar Systems, Inc. rraeke_at_borrego
solar.com [phone] www.borregosolar.com