Www.borregosolar.com Solar Case Studies for Tax Exempt Entities Presented By: Richard Raeke Director of Project Finance Borrego Solar Systems, Inc.

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Solar Case Studies for Tax Exempt Entities

Presented By:Richard Raeke

Director of Project FinanceBorrego Solar Systems, Inc.

• Solar is expensive at roughly $7,000/kilowatt (or $0.45/kWh)

• On a typical solar project, the federal tax incentives pay for more than 1/3, local or state incentive programs pay for 1/3 and the last 1/3 comes from debt or owner equity.

• As tax-exempt entities, universities cannot receive the federal Investment Tax Credit/Grant and bonus depreciation on a purchase.

• Tax Exempt Entities have to look to more creative structures, such as PPAs, in order to monetize the tax credits.

• Without monetizing the tax credit, a customer would have to look to another funding source, such as grants or donations to make the system economically viable.

Financing Options for Tax Exempt Entities

• Long term agreement to purchase electricity from a third party financier (PPA Provider) – 20 year terms, predictable cost increases

• No equipment to purchase, no capital investment

• No annual maintenance expense, no asset to manage

• Customers purchase only the power produced by the system

A Power Purchase Agreement (PPA)

• Solar PV works in states with viable incentive programs

– Massachusetts – Commonwealth Solar Initiative

– California – Production Based Incentive (PBI)

– New Jersey – SREC program

– Others include Connecticut, New York, Pennsylvania, Arizona, Colorado, New Mexico, Oregon and Hawaii

• The ARRA

• Stay tuned – incentive programs are evolving.

State Solar Programs

Generate Change. Choose Solar.

Case Study: Boston Community Capital• Boston Community Capital received $10 million from

Massachusetts through the Green Affordable Housing Initiative

• BCC had mission of creating the most economical solution for putting on solar on affordable housing statewide

• BCC issued an RFP for an installation/financing partner

• Chose Borrego to help identify best sites and install systems

• Letters sent to dozens of affordable housing owners across state

• Based on responses, Borrego began evaluating sites

• BCC created a PPA provider – Solar Energy Advantage Program

• Five initial sites – Cambridge, Charlestown, Webster and Pittsfield

• Second round of installations to follow this year


Case Study: Cambridge Housing AuthorityWashington Elms: PPA Solution• Boston Community Capital PPA

• 100 KW

• Sharp 175 modules

• SMA inverters

• Uni Rac ULA racking

• 15 degree tilt – SSW

• Solar on 6 buildings

• Reduce common load kWh by 60%

• 20 year $.165 / kWh PPA

• Annual 1.25% escalator

Case Study: Cambridge Housing AuthorityWashington Elms


• 100 KW

• Sharp 175 modules

• SMA inverters

• Uni Rac ULA racking

• 15 degree tilt - SSW

Case Study: Cambridge Housing AuthorityWashington Elms: Roof Mounts and Racking


Case Study: Cambridge Housing Authority


Washington Elms: Roof Mounts and Racking

Case Study: Cambridge Housing AuthorityWashington Elms: Roof Mounts and Racking


Case Study: Cambridge Housing AuthorityWashington Elms: Electrical Conduit Installation


Case Study: Cambridge Housing AuthorityWashington Elms


Case Study: Cambridge Housing Authority


Washington Elms: Module Installation

Case Study: Cambridge Housing AuthorityWashington Elms: Module Installation


Case Study: Cambridge Housing AuthorityWashington Elms: Inverter Installation


Case Study: Cambridge Housing AuthorityWashington Elms: Completed Arrays


Case Study: Cambridge Housing AuthorityWashington Elms: Completed Arrays


Case Study: UCSD• Borrego won RFP issued by UCSD

• Partnered with Solar Power Partners to provide financing

• Borrego signs EPC contract with SPP

• SPP signs PPA with UCSD

• Roughly $0.15/kWh

• 20 year contract

• UCSD keeps RECs

• UCSD provides insurance

Case Study: UCSD


Site Evaluation

• Customer preferences • Electricity consumption

• Cost per kWh

• Available space

• Meter location

• Trenching

• Conduit runs

Case Study: UCSD


Prefabrication of arrays

Case Study: UCSD


Carport Construction

Crane day

Case Study: UCSD


Carport construction

Case Study: UCSD


Case Study: UCSD



Case Study: Padre Dam Municipal Water District

• 862 kW of thin film over three sites and on 15-foot tall carports

• 546 day sales process

• Borrego awarded RFP

• Expensive installation due to carports

• Borrego signed PPA and Site-Lease Agreement with Padre Dam

• Section 48 ITC faced expiration system needed completion by Dec. 31

• Borrego assigned PPA to a third-party at quoted price

• EPC negotiations finished mid-September 2008

• Construction finished and system interconnected mid-December

• Bonus depreciation preserved

Case Study: Padre Dam















Solar Case Studies for

Tax-Exempt Entities

Richard RaekeDirector of Project FinanceBorrego Solar Systems, Inc.

[email protected](510) 849-5414


mailto:[email protected]

http://www.borregosolar.com/

Www.borregosolar.com Solar Case Studies for Tax Exempt Entities Presented By: Richard Raeke Director of Project Finance Borrego Solar Systems, Inc.

Documents

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