town of upton solar net metered credit purchase opportunity · town of upton solar net metered...

Town of Upton Solar Net Metered Credit Purchase

Opportunity

June 22, 2017

Kearsarge Energy Overview: A Full Service Renewable Energy Project Developer, Owner & Operator

▪ Focus on public and nonprofit sector ▪ MA school partners include Pathfinder Tech, Grafton Public Schools, Granby Public Schools,

Canton Public Schools, Duxbury Public Schools

▪ Municipalities include Concord, Franklin, Grafton, Bellingham, Leominster, West Springfield,

Randolph

▪ Regional focus Northeastern U.S.▪ Developing select projects in Massachusetts, Rhode Island, Connecticut, New York,

Vermont, New Hampshire & Maine

▪ Extensive experience in landfills, ground mounts, roofs and parking lot

canopies

▪ Excellent reputation for completing projects on time and on budget

▪ Kearsarge has developed and financed over 60 MW and $180 million of

Solar PV▪ Top 5 owners in MA

▪ Kearsarge has another 55 MWs in MA currently under development2

Kearsarge Energy Strictly Private and Confidential

Kearsarge Energy: Solar Project Track Record

3Kearsarge Energy Strictly Private and Confidential

Kearsarge Energy: Sample MA Projects

4

Concord Landfill (1.7 MW DC) Chester (6.0 MW DC)

Chicopee (0.9 MW DC)

Grafton Water District (1.7 MW DC)


Kearsarge Barre II - Britton Rd (1.9 MW DC)

How Virtual Net Metering Works


Kearsarge

Solar FarmTown of Upton

Utility

Normal

electricity

usage from grid

Monthly utility

bill is reduced

by NM credit

assigned to

Town accounts

by Solar Farm

Kearsarge invoices the Town for 80%

of the Net Metered Credits

Competitive

Supplier

*Competitive Supply

contracts not

impacted.

Solar energy

feeds grid &

earns NM

credits

Kearsarge Net Metered Power Purchase Agreement Proposal

▪ 20% discount to the National Grid rate (currently 16.96 cents/kWh) with no floor

▪ 20% discount off price is same for all off-takers

▪ Project located in Uxbridge, MA

▪ Signed Interconnection Agreement; local permitting complete; partial allocation under ACA Public Cap

▪ Since this is a % discount off of the National Grid rate, there is a guaranteed saving

▪ Kearsarge recommends the Town take 90% of the approximate total usage after bill

analysis

▪ Leaving room for conservation measures and energy efficiency upgrades

▪ Approximately $1,586,584 in energy savings to the Town over 20 years

▪ Based on approximate total Town electricity usage of 1,832,981 kWh

▪ Opportunity for the Town to lock in greatest savings now

▪ SREC II Program set to change March 31, 2017; new program will be less advantageous and

thus lower savings to the Town

6


Est. Cost Savings (SEMA Accounts): 20% Off Guaranteed with No Floor


ESTIMATED SOLAR SAVINGS

Est. NMC On-Bill

Value

Kearsarge NMC

PPA Price

(Discount of

20%)

Annual

Savings from

NM

Est. Cumulative

NMPPA Savings

Est. NM Credit Rate per kWh 0.1697$ Yr1 299,847$ 239,878$ 59,969$ 59,969$

Est. NMC Escalator 3.0% Yr2 307,299$ 245,839$ 61,460$ 121,429$

Yr3 314,935$ 251,948$ 62,987$ 184,416$

Yr 1 Est. Output (kWh) 1,767,134 Yr4 322,761$ 258,209$ 64,552$ 248,968$

Annual Degradation 0.50% Yr5 330,782$ 264,625$ 66,156$ 315,125$

Yr6 339,002$ 271,201$ 67,800$ 382,925$

NM Discount (GUARANTEED SAVINGS) 20.0% Yr7 347,426$ 277,941$ 69,485$ 452,410$

Est. NGRID Rate Annual Escalator 3.0% Yr8 356,059$ 284,847$ 71,212$ 523,622$

PPA Year 1 13.6% Yr9 364,907$ 291,926$ 72,981$ 596,604$

Yr10 373,975$ 299,180$ 74,795$ 671,399$

Yr11 383,269$ 306,615$ 76,654$ 748,052$

Yr12 392,793$ 314,234$ 78,559$ 826,611$

Yr13 402,554$ 322,043$ 80,511$ 907,122$

Yr14 412,557$ 330,046$ 82,511$ 989,633$

Yr15 422,809$ 338,247$ 84,562$ 1,074,195$

Yr16 433,316$ 346,653$ 86,663$ 1,160,858$

Yr17 444,084$ 355,267$ 88,817$ 1,249,675$

Yr18 455,119$ 364,096$ 91,024$ 1,340,699$

Yr19 466,429$ 373,143$ 93,286$ 1,433,985$

Yr20 478,020$ 382,416$ 95,604$ 1,529,589$

Yr21 489,899$ 391,919$ 97,980$ 1,627,568$

Yr22 502,073$ 401,658$ 100,415$ 1,727,983$

Yr23 514,549$ 411,639$ 102,910$ 1,830,893$

Yr24 527,336$ 421,869$ 105,467$ 1,936,360$

Yr25 540,440$ 432,352$ 108,088$ 2,044,448$

Yr26 553,870$ 443,096$ 110,774$ 2,155,222$

Yr27 567,634$ 454,107$ 113,527$ 2,268,749$

Yr28 581,739$ 465,391$ 116,348$ 2,385,097$

Yr29 596,196$ 476,956$ 119,239$ 2,504,336$

Yr30 611,011$ 488,809$ 122,202$ 2,626,538$

Est. Cost Savings (WCMA Accounts): 20% Off Guaranteed with No Floor



Est. NMC On-Bill

Value

Kearsarge NMC

PPA Price

(Discount of

20%)

Annual

Savings from

NM

Est. Cumulative

NMPPA Savings



Yr3 17,082$ 13,666$ 3,416$ 10,003$

Yr 1 Est. Output (kWh) 95,849 Yr4 17,507$ 14,005$ 3,501$ 13,504$


Yr6 18,387$ 14,710$ 3,677$ 20,770$



PPA Year 1 13.6% Yr9 19,793$ 15,834$ 3,959$ 32,360$

Yr10 20,284$ 16,227$ 4,057$ 36,417$

Yr11 20,788$ 16,631$ 4,158$ 40,574$

Yr12 21,305$ 17,044$ 4,261$ 44,835$

Yr13 21,834$ 17,468$ 4,367$ 49,202$

Yr14 22,377$ 17,902$ 4,475$ 53,678$

Yr15 22,933$ 18,346$ 4,587$ 58,264$

Yr16 23,503$ 18,802$ 4,701$ 62,965$

Yr17 24,087$ 19,270$ 4,817$ 67,782$

Yr18 24,686$ 19,748$ 4,937$ 72,719$

Yr19 25,299$ 20,239$ 5,060$ 77,779$

Yr20 25,928$ 20,742$ 5,186$ 82,965$

Yr21 26,572$ 21,258$ 5,314$ 88,279$

Yr22 27,232$ 21,786$ 5,446$ 93,726$

Yr23 27,909$ 22,327$ 5,582$ 99,307$

Yr24 28,603$ 22,882$ 5,721$ 105,028$

Yr25 29,313$ 23,451$ 5,863$ 110,891$

Yr26 30,042$ 24,033$ 6,008$ 116,899$

Yr27 30,788$ 24,631$ 6,158$ 123,057$

Yr28 31,553$ 25,243$ 6,311$ 129,367$

Yr29 32,338$ 25,870$ 6,468$ 135,835$

Yr30 33,141$ 26,513$ 6,628$ 142,463$

Est. Cost Savings (All Accounts): 20% Off Guaranteed with No Floor



Est. NMC On-Bill

Value

Kearsarge NMC

PPA Price

(Discount of

20%)

Annual

Savings from

NM

Est. Cumulative

NMPPA Savings



Yr3 332,017$ 265,614$ 66,403$ 194,419$

Yr 1 Est. Output (kWh) 1,862,983 Yr4 340,268$ 272,214$ 68,054$ 262,472$


Yr6 357,389$ 285,911$ 71,478$ 403,695$



PPA Year 1 13.6% Yr9 384,700$ 307,760$ 76,940$ 628,963$

Yr10 394,260$ 315,408$ 78,852$ 707,815$

Yr11 404,057$ 323,246$ 80,811$ 788,627$

Yr12 414,098$ 331,278$ 82,820$ 871,446$

Yr13 424,388$ 339,511$ 84,878$ 956,324$

Yr14 434,934$ 347,947$ 86,987$ 1,043,311$

Yr15 445,742$ 356,594$ 89,148$ 1,132,459$

Yr16 456,819$ 365,455$ 91,364$ 1,223,823$

Yr17 468,171$ 374,537$ 93,634$ 1,317,457$

Yr18 479,805$ 383,844$ 95,961$ 1,413,418$

Yr19 491,728$ 393,383$ 98,346$ 1,511,764$

Yr20 503,948$ 403,158$ 100,790$ 1,612,553$

Yr21 516,471$ 413,177$ 103,294$ 1,715,847$

Yr22 529,305$ 423,444$ 105,861$ 1,821,708$

Yr23 542,458$ 433,967$ 108,492$ 1,930,200$

Yr24 555,938$ 444,751$ 111,188$ 2,041,388$

Yr25 569,753$ 455,803$ 113,951$ 2,155,338$

Yr26 583,912$ 467,129$ 116,782$ 2,272,121$

Yr27 598,422$ 478,738$ 119,684$ 2,391,805$

Yr28 613,293$ 490,634$ 122,659$ 2,514,464$

Yr29 628,533$ 502,827$ 125,707$ 2,640,170$

Yr30 644,152$ 515,322$ 128,830$ 2,769,001$

Timing & Next Steps

▪ Next Steps:

➢ Work together to determine appropriate amount of kWh credit to purchase from

the project

➢ Negotiate and sign Net Metered Power Purchase Agreement (NMPPA) with

Kearsarge for Net Metered Credits

➢ Kearsarge has a standard NMPPA executed with over 15 other public entities in Massachusetts


Thank you!

For more information please contact:

Andrew Bernstein

Henry Barrett

Kearsarge Energy

480 Pleasant Street, Suite B110

Watertown, MA 02472

Ph: 617-393-4222

Email: [email protected]

11

town of upton solar net metered credit purchase opportunity · town of upton solar net metered...

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