solar power @ closed landfills project economics in massachusetts
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Solar Power @ Closed Landfills: Project Economics in Massachusetts

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Solar Power @ Closed Landfills: Project Economics in Massachusetts June 2009 Agenda Key Issues Impacting Project Economics Screen 1: Cost and Performance Screen 2: Incentives Case Study: 220 kW Solar Project Taxable Entity Owner Non Taxable Entity Owner Host w/ 3 rd Party Owner

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Presentation Transcript
introduction
Agenda

Key Issues Impacting Project Economics

Screen 1: Cost and Performance

Screen 2: Incentives

Case Study: 220 kW Solar Project

Taxable Entity Owner

Non Taxable Entity Owner

Host w/ 3rd Party Owner

Looking Forward

Policy

Tracking?

Nexamp, Inc.

Turnkey Clean Energy Solutions Provider.

Leading Solar Installer Headquartered in Massachusetts.

32 Employees: engineers, designers, construction managers, installers, electricians, HVAC technicians, etc.

Recipient: Association of Energy Engineers Best Energy Reduction Project in New England 2008.

Introduction
landfill solar project development
Landfill Solar Project Development
  • Nexamp Turnkey Installations Capabilities
    • Advisory Services
    • Technical and Financial Feasibility
    • Design and Engineering
    • Rebates and Incentives
    • Permitting and Interconnection
    • PPA and Other Financing Support Options
    • Installation
    • Operations and Maintenance
ground mounted experience
Ground Mounted Experience
  • Nexamp ground mounted solar projects:
    • Attached
    • Ballasted (ideal for Landfills)
ground mounted experience5
Ground Mounted Experience

As a sub contractor to BlueWave, Nexamp provided preliminary technical and financial assessment to Western Massachusetts Electric Company to support DTE Solar Program Filing.

today s assumptions
Today’s Assumptions
  • This presentation applies to the MA Solar Market as of last Monday.
    • Market is subject to rapid change (equipment cost and policy).
  • Solar is still very reliant on incentives and incentives remain the primary financial driver.
    • Only projects that qualify for Commonwealth Solar or a similar incentive make financial sense.
  • Land in MA is relatively valuable and finite. Even brownfields may have a competing use (e.g., park, parking lot, etc.).
    • kWh/sqft (power density) may be a more important consideration than it is in other portions of the U.S.
key issues focus on power density
Key Issues: Focus on Power Density
  • February/March 2009 edition of SolarPro Magazine about the Tilt Angle and Power Density (kWh/sqft):
key issues maximize incentives
Key Issues: Maximize Incentives
  • Incentives: Order of Importance on Project Economics
    • Commonwealth Solar Rebate or equivalent (~50% of project cost)
    • Federal 30% Tax Credit/ Grant for Taxable Entities
    • Federal Depreciation
    • MA State Tax Deduction
    • $/kWh energy savings and REC revenue
  • ~95% of initial investment recovered by first 4 incentives if you can use them!
key issues maximize incentives10
Key Issues: Maximize Incentives
  • Today’s MA market is rebate driven and rebates ($/watt) decrease faster than economies of scale improve as project size increases:

Note: No Public Building Adder

case study 220 kw ground mounted
220 kW Ground Mounted

Fixed Tilt @ 20°

Polycrystalline Modules

Commonwealth Solar Rebate Eligible

Scenarios

Taxable Owner

No Public Adder

Non-Taxable Owner

w/ Public Adder

3rd Party PPA

Both

Assumptions

Installed cost: $6/watt

Capacity Factor:13.2%

Degradation: .5%/yr

Avoided Electricity: $.14/kWh

RECs: $.35/kWh for 7 years

Inverter replacement in Yr. 20

25 year project life

Previously discussed incentives as applicable

Case Study: 220 kW Ground Mounted
case study 220 kw ground mounted12
Case Study: 220 kW Ground Mounted
  • Taxable Owner: No Public Building Adder
case study 220 kw ground mounted13
Case Study: 220 kW Ground Mounted
  • Non-Taxable Owner: w/ Public Building Adder
case study 220 kw ground mounted14
Case Study: 220 kW Ground Mounted
  • Power Purchase Agreement: No Public Building Adder
  • $.11/kWh w/ a 3% annual escalator for 20 years w/ a 5 year extension option (savings is pre-tax)
case study 220 kw ground mounted15
Case Study: 220 kW Ground Mounted
  • Power Purchase Agreement: Public Building Adder
  • $.07/kWh w/ a 3% annual escalator for 20 years w/ a 5 year extension option
ma conclusions and outlook
MA Conclusions and Outlook
  • Financial
    • Sweet spot is in 110 kW to 220 kW range
    • PPA make most sense for Public Entities
    • Tremendous value today, but expect changes
  • Outlook
    • Equipment Costs
    • Stimulus
    • Net Metering
    • CS Solar to S-REC Transition (better for larger projects?)
    • Increased use of Tracking Systems
contact information
Contact Information
  • Dan Leary, Nexamp, Inc.
  • President and COO
  • phone: 978.688.2700 x706
  • email: [email protected]
  • Jon Abe, Nexamp, Inc.
  • V.P. Business Development
  • phone: 978.688.2700 x707
  • email: [email protected]
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