solar energy services: delivering cost effective solar power march 18, 2004 claire broido sunedison,...
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Solar Energy Services: Delivering Cost Effective
Solar Power
March 18, 2004
Claire BroidoSunEdison, LLC
(443) 226 0273
Recognizable environmental commitment Uses local resources, reduces demand for imported fossil
fuels (NG, Oil) No “NIMBY”, asthetics, zoning problems, etc. Solar panels have a 25-year warranty, 35+ year life Solar power provides peak power, not threatening to
utility baseload power plants Costs should be compared to capital investment, fuel, and
maintenance costs at other power plants Warranties backed by substantial companies, e.g. BP,
Shell, Sharp, Kyocera
Why Solar Power?
SunEdison is made up of seasoned renewable energy professionals
What need is SunEdison trying to fill: – SunEdison links third party investors with customers who want
to buy solar (and not use their own capital)– Investors want a way to invest in renewables with low risk– Manufacturers want to sell solar products without being
vertically integrated
What value does SunEdison bring:– Standardized system design; reduces engineering and other
fixed costs– Bulk discounts from the largest solar manufacturers,
contractors and maintenance providers – Attracts investors with structured finance approach to reduce
risk and provide reasonable rates of return
Why SunEdison?
The Solar Electricity Service Offer
BENEFITS Green power for less cost than brown power Fixed price hedge against significant utility cost increases All the benefits of solar power without the hassles of ownership
– No capital required– No complicated rebates and tax credits to manage– No maintenance and repair responsibilities
Meet your green power or CO2 reduction commitments with a highly visible project at your site to complement your green credit purchases
Solar power eliminates fuel price volatility impact on electric costs
DO COMPANIES WANT TO BUY SOLAR ASSETS OR SOLAR ELECTRICITY?
Solar electricity below current utility cost with no capital outlay
Self Ownership vs. Solar Services
Self-Ownership Process
Competitive solicitation and evaluation
System Design Arrange Project
Finance/Internal Financing Complete Site Specific
Agreements– Equipment supply agreement– Government subsidy applications– Utility & environmental permits– Construction / installation
services System Construction
SunEdison Solar Services Model
Sign Solar Services Agreement
Pay Quarterly Bill for Solar Services
SunEdison owns the solar system AND customer only pays for what they receive:
• much less overall time involved• much less risk
How It Works
SUNEDISON, LLC
Sell solar services Finances and owns
PV system Operates and
maintains PV system
HOST CUSTOMER
Purchase solar services at fixed price schedule under 10-20 year agreement
Provide access to roof or parking lot
No capital required
Performance based – customer only pays for value received from the PV system
MANUFACTURER
Installs PV system at customer site
Provides energy performance warranty for PV system
10-20 year SolarServices Agreement
Investor(e.g. SRI Fund)
Manufacturer- Installer
(e.g. BP Solar)
Financing
Equipment, installation, warranties
- Purchases solar services at fixed price schedule
- Provides legal access to facility
- No capital required
- Arranges financing, system design, and construction
- Receives low-risk ROI from electricity sales, state & federal incentives
- Provides capital and owns system
Solar Services
Sales &O&M revenue
- Receives revenue from sale of panels, inverters
- Provides warranties for equipment and performance
On-site solarPV system
Solar Services Model
HostCustomer
ProjectDeveloper
(SunEdison)
Which Facilities Work Best With Solar?
Energy use and rate structure: sites should be on a commercial rate structure with a demand of typically less than 1000 kW
Best states: CA, NJ, HI
Building roof:– Should have a minimum of 10 years additional life – Should be capable of bearing additional weight – All roof types can work– Will need over 10,000 sq. ft of unshaded roof space per
100 kW– Ground mounted systems and parking shade structures
are available
Next Steps
1) Provide Information– Identify site(s)– Utility tariff, Load data, and utility bills– Roof and Lighting Drawings
2) Review Preliminary Solar Services Agreement– Customized Economic Analysis
3) Review Customized Contract– Detailed Drawings & Performance Analysis
4) Sign Contract 5) Installation within ~3 months
Thank You – For More Information, Please
Contact:
Claire Broido, President and COO– Mobile: 443-226-0273– Fax: 202-318-9138– E-mail: [email protected]
Jigar Shah, CEO– Mobile: 301-404-6050– E-mail: [email protected]
Greg Ashley, West Coast Sales – Mobile: 408-421-2941– Email: [email protected]
Mac Moore, Director of Commercial Buildings– Phone: 707-438-3814– Mobile: 916-712-7303– E-mail: [email protected]