1. Jennifer S. Szaro
Senior Director, Programs
Smart Electric Power Alliance
July 25, 2016
Community Solar Program
Design Considerations

2. educational 501(c)3 non-profit
Membership
Facilitating the utility industry’s smart
transition to a clean energy future
through education, research and
collaboration
560+
Utilities
540+
Stakeholders
About SEPA

3. Community Solar Program Growth
9
16
25
29
45
76
127
0
50
100
150
200
250
300
350
400
0
25
50
75
100
125
150
pre2011 2011 2012 2013 2014 2015 2016?
CumulativeInstalledCapaciity(MW)
CumulativeProgramCount

4. Key Design Considerations
Offering
• Lease/Purchase
• Subscription
• % of load
• Terms
• Qualifications
Siting
• Scale
• System benefits
• Permitting
• Land ownership
Billing/IT
• 3rd party or in-house
• CIS capability
• Replicability
Regulatory
• Tax Credits
• REC Treatment
• Securities
Considerations
• Regulatory Approval

5. Average Program Expense Breakdown
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
Billing (Lifetime)
Marketing (Lifetime)
0%
25%
50%
75%
100%
Cap Ex O&M (Lifetime) Administrative
(Lifetime)
Total
PercentofTotalCost

6. Program Design - Consider Consumer
Preferences
• “Community Shared Solar” is most understood terminology
• Utility involvement preferred
• Siting within community (15 minute drive)
• Access to panel power production
General
• 80% of programs but declining
• Prefer shorter (5-10 year) lease terms
• Interest in panel lease drops significantly above $495/panel
Lease/Buy
• 20% of programs and climbing
• Interest dwindled above $.01/KWH premium
• Interest drops with non-refundable deposit
• Preference for longer terms (10-20 years) with rate lock-in
Subscription