Financial Realities Of Renewable Energy For Toursim Businesses

Proven Solar Performance

Financial Realities of Renewable Energy for Sustainable Tourism

Joanna [email protected]

www.flsenergy.com

The Solar Age Has Dawned

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Solar Light Levels

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Solar PV Market

National Renewable Portfolio Standards

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State RPS

Solar water heating eligible

Market Opportunity

� Hotels

� Restaurants

� Military Bases

� Dormitories

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� 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

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- 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

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Solar Thermal(Hot Water)

Photovoltaic(Electric “PV”)

How Solar Thermal Works

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Solar Thermal Flat Plate Collectors

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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

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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

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as

Guilford College, Shore Hall, 600 Gallons

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0

50

100

The

rms

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Before SDHW 2004 - 2006

After SDHW 2007 - 2008

Purchase Model

Client Solar Company

Tax Credits

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Client Solar Company

RECs

Solar Energy Purchase Agreement (SEPA)

Client Solar Company

Tax Credits

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Client Solar Company

RECs

Solar Energy Purchase Agreement (SEPA)

FLS Energy

Tax Credits

Client

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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

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$-

$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

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Hilton AshevilleBiltmore Park, Asheville, NC

1st for Hilton Brand

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Courtyard Marriott DowntownGreenville, SC

Largest solar thermal system in SC

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How Solar PV Works

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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.

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PV System Financing

�State and Federal Incentives

�Power Purchase Agreements: PPAs

- Through private companies

- Utility Companies

�Site Lease Agreements – 3rd party financing

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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.

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Committed to Making Solar Mainstream

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

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Dennis Quaintance, Developer Proximity Hotel, 2008

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

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

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

Joanna MalcolmFLS Energy, Inc.

[email protected]

www.flsenergy.com

www.dsireusa.orgwww.eere.energy.gov