Clean Energy Collective


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Clean Energy Collective

  1. 1. © Copyright 2010 Clean Energy Collective, LLC Member owned. Nature operated.
  2. 2. Introduction - Clean Energy Collective <ul><li>Goals </li></ul><ul><ul><li>Accelerate the adoption of long-term clean energy solutions (easier, cheaper, safer, lasting) </li></ul></ul><ul><ul><li>Provide utilities with lower risk and more beneficial clean energy generation (smart growth) </li></ul></ul><ul><ul><li>Create a manageable and mutually beneficial production partnership between utilities and consumers </li></ul></ul>© Copyright 2010 Clean Energy Collective A Colorado based company whose sole focus is to provide optimal clean energy solutions for communities. We develop and manage affordable, community-owned renewable energy facilities in partnership with local utilities.
  3. 3. Clean Energy Collective Defined <ul><ul><li>Community-sized renewable energy </li></ul></ul><ul><ul><li>facilities owned in cooperative fashion by </li></ul></ul><ul><ul><li>customers of utilities </li></ul></ul><ul><ul><li>Mutually beneficial contracts between the utility, its customers and the CEC </li></ul></ul><ul><ul><li>Same benefits as an individual installation; metering, rebates and tax benefits </li></ul></ul><ul><ul><li>A long-term management and growth strategy, perpetual maintenance </li></ul></ul>© Copyright 2010 Clean Energy Collective
  4. 4. Residential & Small Business Clean Energy Challenges © Copyright 2010 Clean Energy Collective Challenges for Home/Business-based Systems The Clean Energy Collective Advantage High “One off” or small-scale pricing Minimum 15% savings, allowing consumers to purchase at large-system, reduced rate prices Non-ideal locations (natural resources –unobstructed solar, water, thermal, or wind) Located for optimal production, access to non-PV technologies Unwanted aesthetic impacts (roof mounting, and historical preservation) Not located at the home or business - a community location Rental – not a possibility due to a lack of ownership of the building or a common HOA Located in a community parcel Overwhelmed , d on’t want to take the time or hassle of hiring good contractors Check the box, make a payment… done!
  5. 5. Opportunity for energy innovation © Copyright 2010 Clean Energy Co-op, LLC Home/business-based solutions Clean Energy Co-op Advantage Expected systems life – 25 to 50 years Expected systems life – 100+ years (perpetual) kWh Production per kW installed - 50 year system production of 44,880 kWh - Year 1 -> 1,485 kWh, year 25 -> 1,073 kWh, year 50 -> 0 kWh - Adverse effects: dirt -10%, equipment -20%, unmanaged -45% - Production risk kWh Production per kW installed - 50 year system production of 82,500 kWh - Year 1 -> 1,650 kWh, year 50 -> 1,650 kWh - Managed solution (maintenance escrow - 5% of sale, 2% of generation) - Guaranteed long term production 1.8 X over 50 years 3.7 X over 100 years Cost/kWh for $2,000 utility rebate over 25 years = $0.059 (1.2X) 50 years = $0.045 (1.8X) lifetime = $0.045 (5+X) Cost/kWh for $2,000 utility rebate over 25 years = $0.048 50 years = $0.024 lifetime = < $0.01 utility oversight – High, dependant on penetration, hundreds to thousands of systems utility oversight – Minimal for a handful of large scale fully managed and maintained systems Impact on reducing utility peak demand – very limited (solutions are widely limited to non-peak solar production - increased utility cost and carbon emissions) Impact on reducing utility peak demand – sizable potential through hydro and biomass solutions as well as future power storage solutions
  6. 6. Why community energy? <ul><li>Lowers the barrier-to-entry and expands availability </li></ul><ul><ul><li>Fractionalization enables ownership for as little as $500 (traditional solar systems require an initial investment of $10,000 - $15,000) </li></ul></ul><ul><ul><li>Ownership for business and resident renters (not possible today) </li></ul></ul><ul><li>Maximum production equals maximum return on investment </li></ul><ul><ul><li>Everyone can own clean energy - optimally placed for maximum production (no shading, trees, aesthetic considerations, permitting hurdles, etc.) </li></ul></ul><ul><ul><li>Maintained solutions produce more </li></ul></ul><ul><li>Aggregated purchasing is powerful! </li></ul><ul><ul><li>Lowers overall costs by purchasing in bulk, making clean energy ownership available to more of the public </li></ul></ul><ul><ul><li>Advantageous finance vehicles ( low interest loans ) are available to large groups of customers </li></ul></ul><ul><li>A simple structure and turn-key solution to increase adoption </li></ul><ul><ul><li>CEC handles everything : evaluating bids, managing installers and maintaining equipment </li></ul></ul><ul><li>More adoption = more clean energy = MORE JOBS </li></ul>© Copyright 2010 Clean Energy Collective
  7. 7. <ul><li>Pilot projects with local government and utility partners </li></ul><ul><li>5 acre sites with easy utility infrastructure access </li></ul><ul><li>Up to 1 MW solar capacity </li></ul><ul><li>3-5 year build-out goal </li></ul><ul><ul><li>Built in trnaches based on demand </li></ul></ul>Clean Energy Collective sites © Copyright 2009 Clean Energy Co-op, LLC
  8. 8. How this works <ul><li>100% ownership by community members (opt-in/voluntary program) </li></ul><ul><ul><li>Credited for power production on their utility bills </li></ul></ul><ul><ul><li>CEC’s RemoteMeter™ service delivers accurate production information to utility </li></ul></ul><ul><li>All power delivered to utility via a PPA, must be an utility customer to own at this site </li></ul><ul><li>Utility receives long-term, in-network clean power at reasonable rates and paid for by private investors (no additional investment) (~$3M) </li></ul><ul><li>Utility provides a solution that </li></ul><ul><li>its members want </li></ul>© Copyright 2010 Clean Energy Co-op, LLC
  9. 9. RemoteMeter™ Makes It Easy <ul><li>Turn-key remote net metering </li></ul><ul><ul><li>Regardless of the physical proximity to the facility </li></ul></ul><ul><li>Seamless integration with utility billing systems </li></ul><ul><ul><li>Track and apply clean energy production credits </li></ul></ul><ul><ul><li>Production surplus tracked/ applied </li></ul></ul><ul><ul><li>depending on the utility’s policy </li></ul></ul><ul><ul><li>Credited directly on customer’s bill </li></ul></ul><ul><ul><li>Versatile integration engine </li></ul></ul><ul><li>Easy monitoring (customer / utility) </li></ul><ul><ul><li>Real-time clean energy production, account information and reporting </li></ul></ul><ul><ul><li>Meteorological Data </li></ul></ul><ul><ul><li>Management tools </li></ul></ul><ul><ul><li>Accessed online and via mobile devices </li></ul></ul>© Copyright 2010 Clean Energy Collective
  10. 10. Value <ul><li>Ability to expand into peak renewable </li></ul><ul><li>power sources (hydro, wind and biomass) </li></ul><ul><li>Stronger renewable energy mix </li></ul><ul><li>Guaranteed long term production (maintained) – predictable with increased ROI </li></ul><ul><li>Higher production for $/watt rebates </li></ul><ul><li>Simplified renewable energy growth (1 large customer versus 1000 small) </li></ul><ul><ul><li>Reduced risk to the grid system (insurance liability) </li></ul></ul><ul><li>Increased customer satisfaction </li></ul><ul><li>CEC handles the billing interface and modification development, preparation and monthly loading of the Collective data </li></ul><ul><li>Being an energy innovator – positive press </li></ul>© Copyright 2010 Clean Energy Co-op, LLC
  11. 11. Joint Marketing <ul><li>Clean energy portion to each bill </li></ul><ul><li>Clean Energy Collective insert </li></ul><ul><ul><li>Once a quarter </li></ul></ul><ul><ul><li>Introduction to CEC and support organizations </li></ul></ul><ul><ul><li>Clean energy calculators </li></ul></ul><ul><li>Release of historical power info upon permission (for sizing purposes) </li></ul>© Copyright 2009 Clean Energy Collective, LLC
  12. 12. Dollars and Sense - Utility Perspective Pilot 500KW = 750,000kWh/year Expense Avoided Cost <ul><li>Power Credits (retail net-metering to customer) </li></ul><ul><ul><li>Assume 50/50 small residential mix with large commercial rate = $.077/kWh </li></ul></ul><ul><ul><li>Assume 3% annual rate escalation </li></ul></ul>20 Year cumulative: $1,551,764 <ul><li>Avoided kWh purchase </li></ul><ul><ul><li>Assume wholesale rate=$0.04/kWh </li></ul></ul><ul><ul><li>Assume 3% annual rate escalation </li></ul></ul>20 Year cumulative: $833,766 Incentives (over 3 years) from within existing rebate budget $300,000 utility’s cost for in-territory renewable generation = Retail - wholesale + rebates 20 year total = $1,133,766 Cost of Green Power Year 1 ($/kWh): $0.037/kWh + rebates 20-Year Average Cost of Green Power ($/kWh): $0.0756/kWh
  13. 13. Provide customers a new solution Small rooftop PV $4,500-$5,000/KW vs. CEC group purchase $3,500/KW Pilot 500KW = 750,000 kWh/year Expense Revenue Installation Cost + insurance, maintenance escrow, land lease and other costs CAPITAL RAISED 100% BY utility CUSTOMERS $3,000,000 GEO PV rebates (over 3 years) $198,000 utility Incentives (over 3 years) from existing rebate budget $300,000 <ul><li>Federal Investment Tax Credit </li></ul><ul><ul><li>Assume 100% taxable entities or small 3rd party financing options </li></ul></ul>$750,600
  14. 14. Customer relocation outside of utility? <ul><li>Options: </li></ul><ul><li>Remains an asset of the real estate property (transferred) </li></ul><ul><li>Resell to a secondary market within the collective network </li></ul><ul><li>Transfer to a direct relative </li></ul><ul><li>Bought by the collective or utility </li></ul><ul><li>Gift to a local non-profit </li></ul><ul><li>Must meet ITC holding requirements </li></ul>© Copyright 2009 Clean Energy Collective, LLC
  15. 15. For the customer it’s as easy as… © Copyright 2010 Clean Energy Co-op, LLC - utility customers get a more affordable, higher producing and perpetually sustainable clean energy solution that seamlessly lowers their electric bill. - utility gets large scale, managed clean energy solutions with reduced risk, reduced internal support cost and which have been mutually planned to benefit utility and its customers.  Checking the box on your utility bill,  Arranging payment or financing with the Clean Energy Collective  You’re DONE! Your savings will start showing on your next utility bill.