ST PAUL’S WALNUT CREEK

ANATOMY OF A SOLAR SYSTEM

ST PAUL’S CHURCH

WALNUT CREEK

SOLAR PANELS – DC POWER

INVERTERS – DC TO AC

CONNECT TO ELECTRICAL

SOLAR USAGE

• DAYTIME– USE SOLAR, EXCESS TO PG&E

• NIGHTTIME– USE FROM PG&E

• MORE GENERATED IN SUMMER

TIME OF USE METERING

• VALUE BASED ON TIME USED– SUMMER PEAK WEEKDAY NOON TO 6 PM

CURRENTLY $.366 PER KWH– OFF PEAK WEEKEND & NIGHT

CURRENTLY $.11 PER KWH

• RATE CAN BE USED WITHOUT SOLAR– SCHEDULE A-6

NET METERING

ST PAUL’S SOLAR

• 135 PANELS 5 INVERTERS

• 23,000 WATT PEAK POWER

• PROVIDES MOST ELECTRIC USAGE

• COST $187,852 $8.17 PER WATT

• WARRANTY – PANELS 25 YEARS– INVERTERS 10 YEARS– INSTALLATION 10 YEARS

FINANCING

• DONATIONS

• LOANS

• PRIVATE OWNER

ASSISTED BY

• NORMAL ELECTRIC PAYMENTS

• STATE INCENTIVE

ST PAUL’S METHOD

• GOAL: SELF SUPPORTING SYSTEM

• FORM PRIVATE COMPANY LLC

• LOANS FROM CHURCH MEMBERS

COMPANY ADVANTAGES

• FEDERAL TAX CREDITS 30%

• RAPID DEPRECIATION 5 YEAR– POSITIVE CASH FLOW

POWER REVENUE > COSTS– TAX LOSS

POWER REVENUE < COSTS + DEPREC

• MAY PROVIDE 50% OF SYSTEM COST

• TAX BENEFITS NOT USED BY CHURCH

COMPANY FORMATION

• REGISTER WITH STATE

• OPERATING AGREEMENT

• POWER PURCHASE AGREEMENT WITH CHURCH

FUNDING SOURCES

COMPANYINCENTIVEELEC SAVINGS

LOANS

• LOAN AUCTION FROM CHURCH MEMBERS

• MEMBERS CHOSE AMOUNT, RATE, TERM

• PLEDGED $248,000– INTEREST RATES FROM 4% TO 10%– TERM ONE TO TEN YEARS

• USED $187,000 AVERAGE RATE 5.22%

COMPANY MEMBERS

• TAX DUE TO ALLOW TAX CREDIT

• NOT SUBJECT TO ALT MIN TAX

• NEED TO “MATERIALLY PARTICIPATE”– PERFORM WORK, NOT JUST INVEST– OPTION – ASSIST WITH CONSTRUCTION

• GUARANTEE LOANS

• UNDERSTAND CONCEPT

• MORE COMPLICATED TAX RETURN

COMPANY STEPS

• MEMBERS BUY SHARES

• TAX SAVINGS PAID TO COMPANY

• COMPANY REDUCES LOANS

• COMPANY WILL SELL SYSTEM TO CHURCH AFTER FIVE YEARS

• MEMBERS RECEIVE SHARE PRICE PLUS SMALL PROFIT

SOLAR SYSTEM PROJECTIONS

• SYSTEM PAYOFF DEPENDS ON ELECTRIC RATES PAID BY CHURCH

• EXPECTED SYSTEM COST PAY BACK– ABOUT 8 YEARS

• SYSTEM PRODUCTION LIFE– 30 YEARS

SECURITY

• THEFT OF SOLAR PANELS

• USED FOR PRODUCTION, NOT SCRAP

• SECURITY METHODS– MOTION DETECTOR

• MAY HAVE FALSE ALARMS

– SENSOR WIRE THROUGH PANELS

ST PAUL’S WALNUT CREEK