Now is the time to evaluate solar and wind generated power

1. Now is the time for CEO’s,
COO’s and CFO’s to
evaluate the use of solar
panel and wind turbine
generated power!
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2. Here Comes The Sun!
(The Beatles)
 Most Americans believe that the climate is changing,
and the earth is quickly getting warmer.
 Many attribute natural disasters such as forest fires
and hurricanes to climate change.
 It is believed that use of fossil fuels, including burning
to generate electricity, is a primary cause of climate
change.
 Scientific opinions differ but public and political
opinion is not always based on scientific data.
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3. The Political Agenda!
 Joe Biden, US President Elect: "We’re not just going to tinker
around the edges,” he said as the Democratic candidate,
promising “historic investments” in wind turbine, wind,
batteries and transmission.“
 Biden has further detailed the clean energy and infrastructure
plans he would pursue, including $2 trillion in spending over
four years.
 This amount would significantly expand the less than $100
billion annually that currently goes to clean energy
technologies.
 To achieve 100 percent carbon-free electricity by 2035, Biden
proposed extending clean energy and efficiency tax credits.
 It seems that one way or another significant funds will be
available to invest in wind turbine power projects.
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4. COVID-19 Tax Relief Package Extends
Tax Credits
 Production tax credits for onshore and offshore wind projects
are extended at a 60% rate for projects that start construction
by end of 2021.
 Offshore wind projects will receive a new investment tax credit
at 30% for all projects that start construction by end of 2025.
 Investment tax credits for solar projects are extended for two
years at a 26% rate through the end of 2022, with a step down
to 22% for projects that start construction in 2023.
 Carbon capture projects have two more years to start
construction and qualify for 45Q credits.
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5. The Impact of Tariffs
 One of the Trump Administration’s decisions was to impose additional
tariffs on solar modules and inverters imported from China and
elsewhere.
 The price for high-efficiency PERC (Passivated Emitter Rear Cell) modules
in the United States is nearly double the price the rest of the world pays
for such modules.
 In multi-megawatt quantities, such modules are about 32 cents to 35
cents per watt in the United States while they are only 17 to 19 cents per
watt when manufactured.
 With shipping costs of 1.5 cents to 2 cents per watt, a large portion of this
price differential is the tariffs.
 One of the first things President-Elect Biden may do, is order the
International Trade Commission to evaluate these tariffs and decide if
they should be eliminated.
 Reducing or eliminating the tariffs on solar modules and inverters should
have positive effects on solar development.
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6. The Time is Now!
 Now is the time for CEO's, COO's and CFO's to evaluate significant
use of solar panel and wind turbine generated power.
 Federal support, and perhaps subsidies, will develop to enable
projects.
 Potentially decreasing costs for solar panel and wind turbine
projects will make them more economically feasible and will
increase the return on investment.
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7. Are Solar Panels a Fit?
 On an overall basis a company should evaluate a significant
investment in solar panels will result in an adequate return on
investment. Some considerations are:
 Is there adequate space to install solar panels, such as a large
flat roof?
 Is the company in a geographic position to optimize the use of
solar panels? Is there enough sunshine?
 Does the company consume enough electricity to justify the
investment.
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8. Are Wind Turbines a Fit?
 On an overall basis a company should evaluate a significant
investment in wind turbine will result in an adequate return on
investment. Some considerations are:
 Is there adequate space to install wind turbine , such as a on
top of the highest land spot at your facility?
 Is the company in a geographic position to optimize the use
of wind turbine ? Is there enough potential wind?
 Does the company consume enough electricity to justify the
investment?
 Are there any environmental issues, such as bird sanctuaries
nearby or organized groups against turbines?
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9. What To Do Now?
 Establish a cross functional team to evaluate the use of solar panels
and wind turbines!
 Evaluate the overall benefits of tax credits based on projected
earnings.
 Establish an outside advisory board, including a financial executive.
 Strengthen or establish relationships with outside organizations
such as your electric utility company and state and local officials.
 Monitor government policy and regulations to understand their
impact and perhaps lobby to improve any legislation.
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10. An Example Plan for Execution-
Page 1
 Research industrial solar panel wind turbine projects completed by other
companies.
 Create a preliminary outline of the detailed project steps of the team and hold
a team meeting to discuss the steps.
 Research and summarize the historical energy consumption, utility rates
charged and the cost to the company. If clarification or additional details are
required, the utility should be contacted for the additional information.
 Investigate and evaluate utility rate structures including demand-side response
agreements. These are used when utility compani8es agree to cut usage
during periods of peak demand in exchange for lower prices.
 Based on company business forecasts, perform an estimate of future utility
requirements and costs.
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11. An Example Plan for Execution-
Page 2
 Identify and contact a small number of solar panel or wind turbine panel system
providers and installers for preliminary discussions and evaluation, including their
capabilities for structural and electrical engineering.
 Evaluate lithium battery storage technologies and capabilities since the cost has
decreased about 90% over the last few years.
 Develop a request for proposal for a few solar panel or wind turbine providers and
installers, which would be approved by management, and distribute the RFP to
targeted companies.
 Respond to questions on the RFP from potential suppliers and update the RFP, if
necessary.
 Obtain responses to the RFP from potential suppliers and after review invite them
to make a formal presentation to the team and management.
 Detail the benefits of tax credits based on projected earnings.
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12. An Example Plan for Execution-
Page 3
 Identify and evaluate potential sources of financing, including grants or
government loans, for the installation and integration.
 Obtain financing proposals, summarize, and present to management.
 Compare and summarize the responses to the RFP and identify the
recommended supplier.
 Team presentation of the RFP responses and the financing proposal and
recommendations to management.
 Obtain management approval for the project, the recommended
supplier and financing source and terms.
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13. An Example Plan for Execution-
Page 4
 Notify recommended vendor and financing firm of intent to contract for
installation and integration and financing.
 Obtain and review draft legal agreements from the recommended vendor
and financing and coordinate review with legal counsel, as necessary.
 Finalize agreements for management signature.
 Monitor the selected supplier performance against contracts and plans and
evaluate progress for payments. Bring the supplier contract or performance
variances, if any to managements attention and outline risks and potential
remedies.
 Conclude project and finalize contract commitments.
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14. Management Benefits of an
Advisory Board
 Focused input with adequate time devoted to the process.
 Greater efficiency from a smaller group with specific expertise.
 Less pressure on management. Works with management by providing
advice; does not govern management.
 Consistent, trusted advice available as needed.
 Accountability to keep the project on-track.
 Less public scrutiny than a public organizations board of directors.
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15. Role of a Financial Executive on
Advisory Board
 Independent financial perspective on project.
 Evaluation of return on investment of project or mandate.
 Evaluation and monitoring of budget vs. actual cost.
 Assurance to the board, finance or audit committee that project is
under financial control.
 Broad perspective of financial implications of project…earnings per
share, debt financing, operating impact, etc.
 Risk assessment and management.
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16. You Don't Have To Be A Weatherman to
Tell Which Way The Wind Blows
(Bob Dylan)
 Political change and concerns over climate change may result in new
legislation.
 If acted upon, new legislation may benefit your company, through
subsidies and reduced costs.
 Accordingly, now is this the time to begin evaluating utilization of solar
panel or wind turbines at your facility!
I would be pleased to serve as a member of your advisory
board for your solar panel or wind turbine project!
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17. MAP Presentation By-Bob Dickson
Bob Dickson, the founder of Dickson Consulting, is a
partner with McCracken Alliance Partners (MAP).
After working for a major independent accounting
firm for almost ten years, Bob has been a financial
officer of smaller and publicly traded companies for
almost 40 years. In his career at Price Waterhouse,
Bob had experience auditing electric utilities. Bob’s
LinkedIn profile can be found at:
https://www.linkedin.com/in/dickson1/
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18. The World Has Changed! Services
From Anywhere/Anytime!
 There is no longer a need for corporations to incur high fees to cover
the overhead of advisors or consultant’s offices, travel, down time and
other expenses.
 Many of these services can be conducted from anywhere with
enhanced ability to stay in touch with and advisor or consultant.
 Technologies such as Zoom have enabled this significant change in
business practices and when taken advantage of companies can have
superior service with reduced costs.
 The quality of service may be higher because distractions such as
travel, and office inefficiencies are eliminated.
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19. Contact Information
Bob Dickson
724-272-1527
bo@dicksonconsulting.biz
www.mccrackenalliance.com
Connect with me on LinkedIn
https://www.linkedin.com/in/dickson1/
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20. Thank You
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