Facility Solar Project; StadlerCITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
,,
From: Steve Stadler, Public Works Director
Date:
Subject:
PURPOSE
Public Works Department
Chuck Autio, Bldg Maint/Equip Services Superintendent
November 6, 2019
Facility Solar Project
To explain and discuss a proposed project to install solar panels on three City facilities.
INFORMATION
Ideal Energies has proposed a project to install solar panel arrays on three City buildings - the
Fire Station, the Hopkins Pavilion and Public Works. There is no cost to the city for the solar
panels or their installation, operation or maintenance through the lease period of 15-20 years.
The diagram on the next page graphically shows how this program works. During the 15 or 20
year lease period the City would purchase the power produced by the solar arrays at a reduced
kW-Hr rate and achieve modest energy savings at each of the three facilities. The total energy
savings to the City would be about $10,000/year for all three facilities until the lease periods
expire. The lease period is 15 years for the Fire Station and 20 years for the Pavilion and
Public Works. Also attached are projected 40-year cash flow charts showing the expenses and
estimated annual energy savings at each facility. Staff and City legal counsel are reviewing the
proposed agreements associated with this solar project proposal. Also, staff is gathering
information on the expected life of the solar panels and the expected future maintenance costs
of operating the solar arrays on our facilities after the lease periods expire. The panels come
with a 25-year warranty. Staff visited the City of Roseville and spoke with staff there and
viewed their facility solar arrays that were installed about a year ago on several of their facilities.
They were pleased with the solar panel installs, the operation of the system, and working thru
the project with Ideal Energies.
FUTURE ACTIONS
Staff and City legal counsel will complete reviews of the agreements and future maintenance
considerations. If, following these reviews, staff believes the project to be of benefit to the City
and low risk, staff will present the project at a future City Council meeting for approval of the
agreements allowing the project to proceed. If the project is approved, the work could start this
winter yet and the solar arrays would go operational by spring, 2020.
ATTACHMENTS
1. Capital Lease program diagram
2. Projected cash flow charts by facility
3. Photos of Roseville roof solar
� iDEAL EN�RGIES
� !► 6lREEN2 COMPANY
Capital Lease - How It Works
Rooftop Ballasted Solar Array - 53.9 kWDC 385 Watt Solar Panels @ 10°tilt & 180° az w/ 40 kWAC SolarEdge Inverters
Xcel SolarRewards
General Service Rate Plan
Client
1. Is the Fee Title Owner of the solar array
2. Receives annual rent from Green2 Solar Leasing
3. Pays GreenZ Solar Leasing for power generated
from the solar array
4. Insures the solar array
Ownershio
Our Client purchases their solar array from Ideal
Energies and immediately owns it outright.
IClient is the fee title owner)
Faciliri Lease
Under the Facility Lease, GreenZ Solar Leasing pays
Ideal Energies for the solar array, and becomes the
tax owner so they can leverage tax benefits on the
ClienYs behalf. The Facility Lease also assigns any
rebates to Green2 Solar Leasing to help pay for the
solar array. Immediately after the purchase, the
Client Leases the solar arcay to GreenZ Solar
Leasing for annual lease payments, and GreenZ
Solar Leasing operates and maintains it on the
ClienYs behalf. -
GreenZ Solar Leasing
1. Pays Purchase Price to Ideal Energies for Client
2. Pays annual rent to Client
3. Receives and uses available tax benefits
4. Receives and uses available Rebates
5. Operates and maintains solar array for Client
6. Bills Client for Power generated from the solar artay
Power Purchase
The Client pays. GreenZ Solar Leasing for the energy
generated from the solar artay at a discount vs. utility
rates.
Put 8 Call
If either party elects to exeroise their options [Put
Option: Green2 Solar Leasing requires the Client to
purchase Green2 Solar Leasing's remaining interestfor
$1; or Call Option: the Client requires Green2 Solar
Leasing to sell its remaining interest to the Client at Fair
Market Value] the Lease and Power Purchase
Agreements terminate, and you will receive free Energy
from your Solar Arrey thereafter!
� � iDEA� ENERGIES
� - A YR@6X= OONRANtl
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40 Year Customer Cash Flow Example - Net Metering w/ Utility BiI1 Savings
Ftooftop Ballasted Solar Array - 53.9 kW DC 385 Watt Solar Panels @ 10°tilt & 180° az w/ 40 kWAC SolarEdge Inverters
Xcel Solarf2ewards
General Service Rate Plan
ocumenls. This Ceshflow summary is inten�
��;� iDEAL ENERGIES
��
�� :A+'\
40 Year Customer Cash Flow Example - Net Metering w/ Utility Bill Savings
Rooftop Ballasted Solar Array - 133.21 kW DC 385 Watt Solar Panels @ 10°tilt & 180° az w/ 99.9 kWAC SolarEdge Inverters
Xcel Photovoltaic Credit Rider Tariff
General Service Rate Plan
This CashFlow summary is intended ony as an e�campie.
���,� iDEALeENERGIES
� ��� , -� `�..� o,r�--�
40 Year Customer Cash Flow Example - Net Metering w/ Utility Bill Savings
Rooftop Ballasted Solar Array - 186.34 kW DC 385 Watt Solar Panels @ 10°tilt & 180° az w/ 140 kWAC SolarEdge Inverters
Xcel Photovoltaic Credit Rider Tariff
General Service Rate Plan
This Ceshflow summary is
TohLAnnual Total6umulaNw
Enargy Expansc Annuai Eirerpy
Savings L'xpanse Savinqs
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t,455,777
anly 85 en example.
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