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11-04-2024 Special JDA Agenda Packet
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11-04-2024 Special JDA Agenda Packet
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<br /> <br />27 <br />• Costs/Incentives: There are many programs that can reduce the life-cycle costs of on-site solar, <br />including grant funding, low-interest green loans, property-assessed financing, tax credits, and <br />generation incentives. Eligibility for these programs and the level of benefits may depend on variables <br />like location, building type, income level, system size, domestic content, and prevailing wage. <br />• Resilience: Buildings with critical loads will want to consider how on-site solar can support <br />maintained functionality when grid power is unavailable. This typically requires battery storage and <br />specialized equipment to cut the system off from the grid during these periods. <br />Additionally, the following information should be used to determine how to account for on-site solar when <br />calculating greenhouse gas emissions or making statements about renewable energy. While there is overlap <br />between these two types of accounting, there are important nuances that differentiate them. <br />• Renewable energy statements: Making claims about renewable energy use requires owning the <br />renewable energy attributes of the energy used, tracked via renewable energy certificates (RECs). If a <br />building owner sells the RECs associated with their on-site solar system – for example, by <br />participating in an incentive program like Xcel’s Solar*Rewards – that renewable energy use cannot <br />be credited to the building or community. In this case, the community could state they generate <br />renewable electricity but could not claim that a certain percentage of their electricity use is from <br />renewable sources. <br />• Carbon accounting: Any renewable electricity that is generated and used directly on-site (“behind the <br />meter”) can be counted as carbon-free building energy use. However, carbon-free electricity sold to <br />the grid is accounted for within the grid’s carbon emission rate, meaning that it cannot also be <br />claimed by the building. <br />6.3. Utility Green Tariff <br />Another option for the community to support renewable energy development is for building owners to <br />subscribe to a utility green tariff through Xcel Energy. These are currently available through the <br />Renewable*Connect program, which supports new wind and solar projects in Minnesota. Customers pay a <br />small premium on their electric bills, purchasing renewable energy certificates (RECs) in 100 kWh blocks at <br />$1.50 per block. They also receive fuel cost credits for the subscribed energy. This typically balances out to <br />$6 to $8 per month of added electricity costs for a residential customer.9 <br />To be fully carbon-free, all electricity purchases for the community must include bundled RECs, such as those <br />purchased through a utility green tariff. <br />6.4. Other Renewable Energy Options <br />While the topics described above are some of the most common ways to incorporate renewable energy <br />sources into new developments, additional opportunities may include: <br />• Other on-site renewables – such as wind or solar thermal <br />• Other off-site renewables – such as community solar, power purchase agreements, renewable energy <br />investment funds, direct access to wholesale renewables market, and unbundled RECs <br /> <br />9 Xcel Energy, Renewable*Connect Flex Information Sheet: Minnesota, 2023.
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