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1
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Making Community Solar
Work
Jennifer S. Szaro
Orlando Utilities Commission
2
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
• Began serving utility
customers in 1923
• Provides water and
electricity
• Service population of over
230,000 throughout Orange
and Osceola Counties
• Governed by a 5-member
board that includes City of
Orlando Mayor
• Net Available Generating
Capacity of 1,743 MW
• 2nd largest municipal utility
in Florida
About OUC
3
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Reliable
AffordableSustainable
An “Ideal” Utility Portfolio
4
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
OUC’s Solar Projects
Project
Capacity
(KW)
Stanton Solar Farm 5,910
Customer Incentives 4,200
Commercial Aggregation 418
Community Solar 400
Total 10,928
5
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
OUC’s Community Solar Farm Model
6
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Marketing Plan
Customer
Focus Groups:
• General
customer
pool
• “Green-
minded”
customers
Critical Needs
Identified:
• Rate
stability
• No upfront
investment
• Portability
• No
maintenance
• Visible
access to the
site
Marketing
Approach:
• Phase 1:
Press release
and media
• Phase 2:
Targeted
marketing to
site-related
barrier
customers
• Phase 3:
Mass
marketing
7
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Gardenia Community Solar Program Details
• 400 KW covered parking array located at
OUC’s Gardenia facility
• Open to residential and small commercial
customers
• PPA rate of $0.18/KWH
• Customer rate of $.13/KWH
• OUC bills customer fixed rate for their
share of output over 25-year term
• Project needed be 110% subscribed
before construction could begin
• Project sold out in 6 days with help of
press release and earned media
• Began operation October 2013
• 84 customers on waiting list (832 KW)
8
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Subscription Process
Customer pays
initial reservation
deposit of $50 at
sign up
Shares sold in 1-
KW increments
(15 KW Max)
Customers who
move within OUC
territory may stay
on program
Initial customer
deposit is refunded
after 2 years
9
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Billing Approach
Monthly Master
Production Meter
Reading = 50,000 KWH
1 KW
400 KW
Community Solar
Farm
Customer’s Share
(1 KW/400 KW) x 50,000 KWH
• Customers pay $.13/KWH rate
on a monthly basis
• 1st year estimated production
• One master meter read
monthly (OUC hedges output)
• Participating customers are
billed based on their share of
production
• Customers receive virtual net
metering benefits
10
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Lessons Learned
• Needed to identify methods for improving contract negotiations
• Reverse auctions may offer more transparent, competitive
bidding
• Project Siting - 3rd party locations add substantial complexity
Procurement
• Challenged to reduce or eliminate subsidies
• Rate stability was most critical program feature
• Could consider a slightly shorter term
• Unify billing cycles if you can – smart meters help
Program Design
11
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Next Steps
• Completed vendor pre-qualification process
on March 31st
• Pershing Community Solar Project pre-bid
meeting scheduled for April 14th
• Reverse auction to be held in May 2014
• Evaluating rate design and terms
• Goal to install next project by end of 2014
11
12
R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P
Questions?
Jennifer S. Szaro
Manager, Renewable Energy
OUC
(407) 434-2100
jszaro@ouc.com
12

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OUC community solar 4-8-14

  • 1. 1 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Making Community Solar Work Jennifer S. Szaro Orlando Utilities Commission
  • 2. 2 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P • Began serving utility customers in 1923 • Provides water and electricity • Service population of over 230,000 throughout Orange and Osceola Counties • Governed by a 5-member board that includes City of Orlando Mayor • Net Available Generating Capacity of 1,743 MW • 2nd largest municipal utility in Florida About OUC
  • 3. 3 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Reliable AffordableSustainable An “Ideal” Utility Portfolio
  • 4. 4 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P OUC’s Solar Projects Project Capacity (KW) Stanton Solar Farm 5,910 Customer Incentives 4,200 Commercial Aggregation 418 Community Solar 400 Total 10,928
  • 5. 5 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P OUC’s Community Solar Farm Model
  • 6. 6 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Marketing Plan Customer Focus Groups: • General customer pool • “Green- minded” customers Critical Needs Identified: • Rate stability • No upfront investment • Portability • No maintenance • Visible access to the site Marketing Approach: • Phase 1: Press release and media • Phase 2: Targeted marketing to site-related barrier customers • Phase 3: Mass marketing
  • 7. 7 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Gardenia Community Solar Program Details • 400 KW covered parking array located at OUC’s Gardenia facility • Open to residential and small commercial customers • PPA rate of $0.18/KWH • Customer rate of $.13/KWH • OUC bills customer fixed rate for their share of output over 25-year term • Project needed be 110% subscribed before construction could begin • Project sold out in 6 days with help of press release and earned media • Began operation October 2013 • 84 customers on waiting list (832 KW)
  • 8. 8 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Subscription Process Customer pays initial reservation deposit of $50 at sign up Shares sold in 1- KW increments (15 KW Max) Customers who move within OUC territory may stay on program Initial customer deposit is refunded after 2 years
  • 9. 9 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Billing Approach Monthly Master Production Meter Reading = 50,000 KWH 1 KW 400 KW Community Solar Farm Customer’s Share (1 KW/400 KW) x 50,000 KWH • Customers pay $.13/KWH rate on a monthly basis • 1st year estimated production • One master meter read monthly (OUC hedges output) • Participating customers are billed based on their share of production • Customers receive virtual net metering benefits
  • 10. 10 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Lessons Learned • Needed to identify methods for improving contract negotiations • Reverse auctions may offer more transparent, competitive bidding • Project Siting - 3rd party locations add substantial complexity Procurement • Challenged to reduce or eliminate subsidies • Rate stability was most critical program feature • Could consider a slightly shorter term • Unify billing cycles if you can – smart meters help Program Design
  • 11. 11 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Next Steps • Completed vendor pre-qualification process on March 31st • Pershing Community Solar Project pre-bid meeting scheduled for April 14th • Reverse auction to be held in May 2014 • Evaluating rate design and terms • Goal to install next project by end of 2014 11
  • 12. 12 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P Questions? Jennifer S. Szaro Manager, Renewable Energy OUC (407) 434-2100 jszaro@ouc.com 12