Financial Realities Of Renewable Energy For Toursim Businesses

Proven Solar Performance

Financial Realities of Renewable Energy for Sustainable Tourism

Joanna Malcolmjoanna@flsenergy.com

www.flsenergy.com

The Solar Age Has Dawned

22

Solar Light Levels

3

Solar PV Market

National Renewable Portfolio Standards

4

State RPS

Solar water heating eligible

Market Opportunity

� Hotels

� Restaurants

� Military Bases

� Dormitories

5

� Dormitories

� Hospitals

� Laundries

� Health Clubs

� Fire stations

� Car Washes

Data Sources: US Energy information Administration & NC Utilities Commission; graph generated by FLS Energy.

Benefits of Solar Energy

� Reduction in Utility Bills

� Cost-effective investment

- 3 - 10 year ROI

- 25+ year system life

� Tax incentives

- 30% federal tax credit; 35% NC

The Market Place Restaurant, Asheville, NC

6

- 30% federal tax credit; 35% NC

- Accelerated depreciation

� Earn LEED Points

- As many as 5 points

� Marketing Opportunities

� Environmental Benefits- Reduces fossil fuel consumption

- Emits no pollution

� Improved energy security

Solar Energy Options for Attractions & Accommodations

Natural Science Center of Greensboro, NCProximity Hotel, Greensboro, NC

7

Solar Thermal(Hot Water)

Photovoltaic(Electric “PV”)

How Solar Thermal Works

8

Solar Thermal Flat Plate Collectors

9

Solar Hot Water System Costs

Avg. Cost : $90K - $450K, 1000 gallon – 5000 gallon

Federal Grant Program:

30% of project. No more than 50% of your total tax liability. Can take over 5 years.

NC State Tax Incentives:

35% of project. No more than 50% of your total tax liability. Must be taken in 20% increments over 5 years.

Accelerated Depreciation:

Total apx. 25% of system cost, over 5 years

www.dsireusa.org1010

Return on Investment: 100 panel, 5000 gallon

200,000

400,000

600,000

800,000

Do

lla

rs

Solar Energy System Cash Flow

1111

600,000

400,000

200,000

0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Do

lla

rs

Year

Annual Cash Flow

Cumlative

150

200

250

The

rms

of N

atur

al G

as

Guilford College, Shore Hall, 600 Gallons

1212

0

50

100

The

rms

of N

atur

al G

as

Before SDHW 2004 - 2006

After SDHW 2007 - 2008

Purchase Model

Client Solar Company

Tax Credits

13

Client Solar Company

RECs

Solar Energy Purchase Agreement (SEPA)

Client Solar Company

Tax Credits

14

Client Solar Company

RECs

Solar Energy Purchase Agreement (SEPA)

FLS Energy

Tax Credits

Client

15

FLS Energy

RECs

Client

Advantages

� Low upfront cost

� Minimal Risk

� Maintenance

� Low, predictable energy cost

Lock in Low, Predictable Solar Energy Prices

$10,000

$12,000

$14,000

$16,000

An

nu

l Co

st (

$)

Savings of Solar vs Natural GasBased on Given Amount of Hot Water

1616

$-

$2,000

$4,000

$6,000

$8,000

1 6 11 16

An

nu

l Co

st (

$)

Year

natural gas (@ 5% annual increase)

natural gas (@ 3% annual increase)

solar

Proximity HotelGreensboro, NC

LEED Platinum Certified

1717

Hilton AshevilleBiltmore Park, Asheville, NC

1st for Hilton Brand

1818

Courtyard Marriott DowntownGreenville, SC

Largest solar thermal system in SC

1919

How Solar PV Works

20

What is a kWh? Watts * time = kWh

100 watt CFL * 10 hours = 1kWh

PV System CostsAvg. Cost: $50K - $1.25M, 10 kW system – 250 kW system

Federal Grant Program:

30% of project. No more than 50% of your total tax liability. Can take over 5 years.

NC State Tax Incentives:35% of project. No more than 50% of your total tax liability. Must be taken in 20% increments over 5 years.

Accelerated Depreciation:

Total apx. 20-25% of system cost, over several years

Progress Territory customers:

Tie-in to grid and receive $0.18 per kWh Deducion in Deduction in bill or check for overage.

2121

PV System Financing

�State and Federal Incentives

�Power Purchase Agreements: PPAs

- Through private companies

- Utility Companies

�Site Lease Agreements – 3rd party financing

2222

Renewable Energy CertificatesRECs

RECs are :

� the environmental attributes of clean energy.

� the premium value of renewable energy beyond the market value of conventional fuels such as coal and market value of conventional fuels such as coal and nuclear.

� desired by utility companies.

� added value.

2323

Committed to Making Solar Mainstream

“Proximity’s solar energy system serves as a business-minded, tangible expression of the company’s commitment to

24

Dennis Quaintance, Developer Proximity Hotel, 2008

the community and the environment. It attracts a clientele that values this commitment.”

2525

Nothing is as powerful as an idea whose time has co me-- Victor Hugo

26

Want more information about renewable energy for yo ur attraction or accommodation?

Joanna MalcolmFLS Energy, Inc.

joanna@flsenergy.com828-350-3993

www.flsenergy.com

www.dsireusa.orgwww.eere.energy.gov