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once the PWETC determined the best direction and what kind of realistic <br /> proposals should be recommended to the City Council so they could ultimately <br /> decide how best to proceed. <br /> Mr. Schwartz reported that one finding brought from the meeting was the cost <br /> reduction in solar from $10-$11 per KWh to $3-$5 per KWh, some of which was <br /> due to tax credits, and with increased technologies will serve to make projects <br /> much more feasible and justify solar as a competitor over the next few years with <br /> rising energy costs. <br /> Mr. Johnson presented his findings of annual City campus KWh usage and needs <br /> for a 3,800 square foot area to install a 40 KWh system. Mr. Johnson opined that <br /> the City campus provided a lot of space to accomplish an array, even with the <br /> existing HVAC system and allowing for future additions to the solar system. <br /> Discussion included usage per building; solar conditions;projected generation <br /> over a 12-month period (e.g. City Hall building at 40 KWh system, generating <br /> approximately 400,000 KWh or half the usage required); and size limitations <br /> based on MN credits, tax credits and the Xcel Energy program and comparisons <br /> to current energy costs. <br /> Member Cihacek opined that unless the City owned a share, it could not receive <br /> the full benefit of a 40 KWh system as a developer, but could as a host site. As <br /> staff develops this model, Member Cihacek asked staff to provide scenarios if the <br /> City served in the role of a shareholder at a minimum number of shares; <br /> information on the financial analysis portion and what was needed to protect the <br /> advantage for leasing space (e.g. change in insurance limits or incurring <br /> construction costs to determine efficacy); and the financial payback available to <br /> the City as one of twelve shareholders —the minimum and impact of that cost <br /> analysis. <br /> Member Seigler asked for additional information if the City were to lease or rent a <br /> commercial rooftop (e.g. lease rates) and what the actual value of the City's <br /> rooftop actually was; opining that if the City gave that area away, what it was <br /> actually giving away financially. <br /> With discussion on specific buildings and their energy production potential, Mr. <br /> Schwartz reminded members that the limit was 120% of the energy use of a <br /> building; with credit for KWh taken off the main bill. <br /> Member Gjerdingen suggested looking at some of the park building roofs. <br /> With projects planned in Minnesota—half in the metropolitan area and half out- <br /> state—Mr. Schwartz advised that the goal is to find ways to make the solar <br /> projects pay for themselves with larger systems versus smaller ones. <br /> Page 14 of 16 <br />