2018_09-25_PWETCpacket - Laserfiche WebLink

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Attach me ntA REQUEST FOR COUNCIL ACTION Date: September 17, 2018 Item No.: Department 'Approval City Manager Approval Item Description: City Campus Solar Proposals 1 BACKGROUND z Staff has been working for several years to install one or more solar arrays on the City Campus. s A summary of those efforts can be found from the RCA of the May 14a', 2018 City Council 4 meeting for the City Campus Solar Options item (see Attachment F). Since then, the City 5 Council has approved a Community Solar Subscription Agreement for up to 2 Megawatts (MW) s of Community Solar Power for the City Hall and Skating Center electric meters. a In order to get actual solar arrays on the City Campus, staff has continued to work with 9 developers for additional proposals. Attached are two proposals from IDEAL Energies for the U installation of solar arrays on the Roseville City Campus. Both of these proposals could be 11 applied to one or several of the following rooftops: 12 - City Hall 13 - Fire Station 14 - Maintenance Facility 15 16 The Skating Center was also reviewed, and while the size of the roof coupled with the high n energy use at this facility are attractive for a solar array, the roof is scheduled for replacement in 18 2022. Installing a solar may on that roof would require the City to accelerate that replacement 19 which is not compatible with the current budget and CIP schedule. Therefore, the Skating Center 29 was removed from consideration of options at this time. zz The two types of installation include the 40kW Solar Rewards Program and PV Demand Credit 23 Rider Program. The highlights of each program are listed below: 24 25 Solar Rewards Program: zs - Program created by the MN Legislature administered through Xcel Energy. 21 - Xcel Energy pays $0.08 per kWh produced to the "owner" of the system for 10 years. 28 This payment would go to the operator of the City's installed solar arrays. 29 - City would pay an additional annual payment to the operator under a Power Purchase 39 Agreement at a starting rate of $0.083/kWh increasing by 4.5% annually. Annual average 31 cost of energy at City Hall is $0.089/kWh (in the winter the cost has been as low as 32 $0.081/kWh, in the summer as high as $0.101/kWh over the past 12 months). 33 - Annual savings in first year is estimated at $979. 34 - Setup for termination of PPA in Year 13 for $4,784. After that the City realizes the full 35 savings of the solar production (no power purchase costs). ss - Estimated savings in Year 14 jump to approximately $8,000. Page 1 of