The Future Energy Jobs Act is fueling rapid growth of the solar industry in Illinois. We are adding 3,000 megawatts of solar power between 2018 and 2030. Cities can benefit by making their communities more solar friendly with solar friendly zoning, encouraging community solar and rooftop solar and helping their residents and business owners capture generous incentives (200 million dollars per year).

1. How Cities Can Benefit from the
Future Energy Jobs Act
Tim Montague, M.S.
tmontague@cecco.com | 630.203.7729 m
September 20, 2018
www.CECCO.com

2. Public Act 99-0906 / SB 2814
(Dec ‘16 – June ‘17)

3. FEJA – Future Energy Jobs Act
üStrengthen renewable portfolio standard (RPS)
üExpand wind and solar energy
üGrow energy efficiency programs
üJob training & clean energy jobs
üSupport low income communities

4. Role of Municipalities
üCapture jobs & economic development
üEngage with SolSmart & Industry Pros
üDevelop solar friendly ordinances
üGreen your facilities
üHost solar projects

5. What’s at Stake?
§$12-$15 Billion in
constructions projects
§Reduce operating
expenses (schools,
municipalities, and
businesses)
§Cleaning & greening
local environment
§Capturing the minds of
young professionals
§Jobs jobs jobs!

6. Municipal Role in Solar Project Development
• Inventory. Create an inventory of
available land and rooftop space
in the community.
• Zoning/Permitting. Adopt
appropriate zoning for utility,
community, and distributed solar.
• Financing. Utilize industrial
development bonds and
enterprise zones to support solar
project development.
• Subscription. Purchase
subscriptions to local or regional
community solar projects for
municipal facilities.
• Hosting. Lease municipal land for
use as a solar project site.
• Short-listing. Create a preferred
developer list for residents and
business to use at their option.
• Enrollment. Facilitate
subscription of local accounts
into local solar projects.
6
Municipal Involvement
Inventory
Financing
Hosting
Enrollment
Zoning /
Permitting
Short-listing
Subscription
Value
Credit: Mark Pruitt, The Power Bureau

7. $12-15 B in Energy Projects
§Rooftop Solar
§Community Solar
§Utility Scale Solar + Wind
§Brownfield & low-income carveouts

9. 3,000 Megawatts of Solar Power

10. Residential Solar

11. 119 kW Array
148,750 kWh/yr
$9500 savings/yr
344 Panels:
Ballasted Rooftop,
Carport, and
Awning Design
LEED Silver
Commercial Solar
Clarke Environmental St. Charles, IL | DuPage Co.

12. Small Utility + Community Solar
Ground Mount: Grayslake North + South HS
2.76 MW | Grayslake, IL | Lake Co.
1,400 kW
Ground Mount
32% energy offset
$9.8 M in savings
over 25 years
1,363 kW
Ballasted Roof

13. 20 Acre - 5 MW Solar Farm (UofI)
Utility Scale Solar
University of Illinois – 20 Acres / 5 MW

14. Brownfield
2%
Discretionary - IPA
8%
Residential Solar
12%
Community
Solar
12%
Commercial Solar
13%
Utility < 2MW
13%
Utility > 2MW
40%
Future Energy Jobs Act (PA 99-0906)

15. http://www.futureenergyjobsact.com/about

16. Future Energy Jobs Act:
Clean Energy & Green Jobs for Illinois!
• 1,300 megawatts of new wind and
• 3,000 megawatts of solar power
(power for 1 million homes)
• 4,300 megawatts of new clean energy
(~4 x Clinton Power Station)

17. Future Energy Jobs Act in a Nutshell
• Spur $12 to $15 billion in renewable energy
investment in Illinois
• Restore clean energy funding (RPS)
• Expanded energy efficiency programs:
• 21.5 and 16% reduction in energy use by 2030 in
ComEd/Ameren
• $25 million a year allocated for low-income families
• Nuclear Power Support: $235 M/yr for 10
years
• 1500 jobs
• 2 power plants: Clinton + Quad Cities

18. Future Energy Jobs Act in a Nutshell
• Community & Distributed Generation Solar
• Utility Scale Solar
• Illinois Solar for All:
• Job training for low-income / at risk residents
• Community and non-profit solar for low-income
communities
• Protects Net Metering

19. Community Solar
• Shady rooftops
• Renters, low-income residents and any
organization that just wants solar power but not the
installation of solar panels
• Install central array and feed that power by virtual
net metering to local residents
• Invested more than $750 million in programs for
low-income people, including the Solar for All
Program, which prioritizes new solar development
and job training in economically disadvantaged
communities.

20. Community Solar
• Subscribers must be in the same utility territory
as the community solar array
• Subscriptions must be transferable and portable
within the same utility territory
• No subscriber may own or lease more than 40%
of a project
• Max project size is 2 MW (285 average
residential solar installations of 7 kW)
• Minimum subscription will be 200 W (1/35th the
size of the average residential system)
• Utilities must purchase unsubscribed energy at
avoided cost rate

21. Future Energy Jobs Act
• Creates Long Term Planning Process
• $200M Allotted Annually to Wind + Solar
• Funded by Rate Payers
• Effective June 1, 2017

22. Solar Carve Out - $100 M/yr
Megawatt Goals of the RPS (Future Energy Jobs Act)
2016 2020 2025 2030
Brownfield 32 48 64
Discretionary -
IPA
127 191 254
Small Solar 198 298 397
Community
Solar
198 298 397
Commercial 198 298 397
Utility < 2MW 198 298 397
Utility > 2MW 635 953 1,270
55 1,588 2,382 3,175

23. Growth of Solar in
Illinois
55
1,588
2,382
3,175
0
500
1000
1500
2000
2500
3000
3500
2017 2020 2025 2030

24. Resources
• Illinois Solar Energy Association www.illinoissolar.org
• Metropolitan Mayors Caucus (Edith Makra)
http://mayorscaucus.org/
• Midwest Renewable Energy Association
www.midwestrenew.org
• Solar Foundation
www.thesolarfoundation.org
• Future Energy Jobs Act (FEJA)
SB 99-0906
• Illinois Power Agency (IPA)
www2.illinois.gov/sites/ipa

25. Thank you!
Tim Montague
tmontague@cecco.com
217.722.0429 m

26. 1. What is Solar PV and Why Now?
2. Recent Projects – what it looks like
3. Return on Investment:
• Energy Savings
• Cash Incentives
• Tax Credits
• Accelerated Depreciation
4. Who Can Benefit from Solar
5. Q&A
Solar Pays Back

27. • Converts Sunlight to Electricity
• Rooftop DC –> AC –> Building Load –> Grid
• Reduces kWh Consumption
• Lowers Operating expenses
• Rooftop, Ground, Building Integrated
Solar PV…since 1954
www.CECCo.com

28. • Energy Bill Savings ………………………….. 20%
• Cash Incentives – SRECs + Smart Inverter.. 40%
• Tax Credits – Federal ITC………………….... 30%
• 100% Bonus Depreciation ……………….… 25%
Cash positive by yr. 5 …….……….. 115%
ROI (Years 1-5 of a project)
Energy, Incentives & Rebates

29. 2.9 GWh production / yr
$249,238 in energy
savings/yr
Payback period: 4 yrs
25 yr IRR 15.6%
Energy Savings – Large Commercial
2.45 megawatts DC

30. Cash Incentive – SRECs + Smart Inverter
• Future Energy Jobs Act – FEJA
• $200 M in incentives per year (~40% of project value)
• Funded by IL utility (ComEd/Ameren) rate payers
• SRECs = performance based incentive (1 MWh = 1 REC)
• Smart Inverter incentive: $250/kW DC

31. Example: Cash Incentives + Energy Savings
Small Commercial PV System (55 kW DC)
Capital Expense ………………………. $137,500
Energy Bill Savings ……………………. $24,062
Cash Incent. / SRECs + Smart Inverter..$66,839
Tax Credits – Federal ITC……………… $41,250
Accelerated Bonus Depreciation ……… $31,763
5 yr. Net Savings ………..... $26,414
25 Year Savings .…..…… $121,681

32. Cash Incentives + Energy Savings
Large Commercial PV System (2,450 kW DC)
Capital Expense …………………….… $4,287,500
Energy Bill Savings …………………….. $918,750
Cash Incent. / SRECs + Smart Invert. $2,022,322
Tax Credits – Federal ITC……………. $1,286,250
Accelerated Bonus Depreciation …….. $ 990,412
5 yr. Net Savings ..…....... $930,234
25 Year Savings …..… $4,832,600

33. • Owner occupied facilities
• Bigger the bill, bigger the benefit
• Rooftop in good condition (less than 10 yr. old)
• New Construction
• Warehouse, factory, low-rise office, schools…
Who Can Benefit?
Commercial Solar

34. • Any resident or business
• Local government, schools, nonprofits
• Passive Income for landowners
Who Can Benefit?
Community Solar