HomeMy WebLinkAboutAgenda - 05-05-2015 - 7bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 5, 2015
Action Agenda
Item No. 7 -b
SUBJECT: Orange County Solar Development Initiatives Update
DEPARTMENT: Asset Management Services, PUBLIC HEARING: (Y /N) No
Department of Environment,
Agriculture, Parks &
Recreation
ATTACHMENT(S):
Solar Development Model Illustration
PURPOSE: To:
INFORMATION CONTACT:
Brennan Bouma, 919 - 245 -2626
Jeff Thompson, 919 - 245 -2658
David Stancil, 919 - 245 -2522
1) receive an update and provide feedback on the County's discussions to further educate
and develop solar energy initiatives (rooftop photovoltaic, ground- mounted solar arrays,
solar power storage technology, etc.) within Orange County in alignment with the 2015
"Solarize" Campaigns organized by NextClimate (Orange County, Carrboro, Chapel Hill,
and Hillsborough);
2) endorse the development of a pilot solar photovoltaic system within County facilities,
beginning with the Rogers Road Community Center; and
3) include this proposed pilot within the 2015 Orange County "Solarize" campaigns.
BACKGROUND: Orange County is a leader in North Carolina (among both the public and
private sectors) in successfully developing and delivering alternative and more sustainable
energy for County facilities and assets. The success of the geothermal ground source heat
pump technology within the Hillsborough east campus of public facilities is a prime example.
The Board may recall that Asset Management Services has been studying the economics of
solar energy for several years and has reserved recommendation to the Board for solar
photovoltaic ( "PW) alternative energy investment until the economics of this technology made
sense as more reasonable material and development cost structures emerged. After an initial
County facility solar energy assessment and the market acceptance of new financing models,
staff recommends the Board endorse pilot phase of solar energy development within County
facilities. The attachment, "Solar Development Model Illustration ", provides a basic guide to a
solar development project using these market - accepted models.
Staff analysis has identified principles to help guide County solar infrastructure deployment.
Staff recommends that the development model be piloted with County facilities with new or
recently replaced roofing, adequate structural integrity to carry the panels, little or no shade, and
good exposure to the South where incoming solar energy is the strongest. Pilot projects should
be kept to a smaller scale for management, learning, and in order to be facilitated through Board
appropriated "Energy Bank" funds. Staff has employed the "PVWatts" calculator from the
National Renewable Energy Laboratory to assist in modeling, sizing, and prioritizing solar
photovoltaic infrastructure investments ( http:/ /pvwatts.nrel..qov/pvwatts.php).
Parallel with this analysis, a team of interested residents and solar experts approached Orange
County about the feasibility of installing solar panels on the Rogers Road Community Center for
the benefit of the Rogers- Eubanks community. Brennan Bouma, Orange County Sustainability
Coordinator, has been working closely with this group to assess the feasibility and benefits of
this project as a potential pilot solar project for Orange County.
After specifically considering this location, staff recommends the Rogers Road Community
Center to benefit from being the County's first pilot solar photovoltaic supported facility.
Together with Rob Pinder, Executive Director of NextClimate, Brennan will present an update of
the solar initiative collaboration for the Board's comment and feedback.
Background on local "Solarize" campaigns (http: / /www.solarizenc.org /)
The intent of these "Solarize" campaigns is to lower the cost of rooftop photovoltaic systems
through pulling together interested households and commercial users into a group - purchasing
deal. NextClimate, a local 501c (3) non - profit organizes the four Solarize campaigns that are
active in Orange County (Orange County, Hillsborough, Chapel Hill, and Carrboro).
In 2014, NextClimate brought together two solar installation companies (Yes! Solar Solutions
and Southern Energy Management), and two financing organizations (Admiral's Bank and Self
Help Credit Union) with the mission to bring affordable solar power to the people of Orange
County, Carrboro, Chapel Hill, and Hillsborough. Their efforts resulted in new solar installations
on 90 homes and small businesses across Orange County in 2014.
In 2015, NextClimate is expanding its reach to create Solarize Research Triangle, bringing solar
investment and benefits to Research Triangle Park workplaces.
NC WARN is also running a series of "Solarize" campaigns in the Triad, Western Wake,
Chatham, and Durham counties, and there are other organizations running similar "Solarize"
programs in the City of Charlotte as well as the Sandhills and Western NC regions.
Next Steps
Should the Board agree with the Manager's recommendation, staff will move forward with the
solar pilot project as a part of the 2015 Orange County "Solarize" campaigns, pursue both solar
investors and development partners through the appropriate statutory procurement processes,
and provide ongoing progress reports to the Board. Staff projects that the initial pilot project will
be completed and operational no later than December 2015, and that this could be the first of
many facility photovoltaic solar systems providing renewable energy in lieu of less sustainable
energy sources.
FINANCIAL IMPACT: The development model contemplates an investor development partner
to contribute the entire installation cost for the system (see attachment, "Solar Development
Model Illustration ") after acquiring the leasehold /licensing property right to install on County
property. Once the initial investment has been recouped by the investor partner, the significant
utility savings provided by the system would be passed on to the County to be distributed
according to a Board - adopted operating budget.
At such time that the development tax credits and other financial incentives are exhausted by
the development partner(s), the County may choose to purchase the depreciated asset at its
negotiated fair market value with appropriated Energy Bank funds.
RECOMMENDATION(S): The Manager recommends the Board:
1) receive an update and provide feedback on the County's discussions to further educate
and develop solar energy initiatives (rooftop photovoltaic, ground- mounted solar arrays,
solar power storage technology, etc.) within Orange County in alignment with the 2015
"Solarize" Campaigns organized by NextClimate (Orange County, Carrboro, Chapel Hill,
and Hillsborough);
2) endorse the development of a pilot solar photovoltaic system within County facilities,
beginning with the Rogers Road Community Center; and
3) include this proposed pilot within the 2015 Orange County "Solarize" campaigns.
Team
formation,
resource
identification,
mission
agreement
Explore
financing
options
Site assessment
and selection
Project Scoping
and
Implementation
Investor signs
licensing
agreement with
County and
pays for 100% of
system
Tracking
returns,
manage
ownership
Investor recoups
investment and
then passes
ownership and
savings to
County A