Larry Falkin, Director City of Cincinnati, Office of Environmental Quality September 26, 2012

Overview
Cincinnatis Solar Utilization Solar Power Purchase Agreement LEED Incentives

Cincinnatis Solar Utilization

The City of Cincinnati has: 21 Working Solar PV Systems (totaling 1 mW) 1 Under Construction 3 In Planning or Design (totaling 2.1 mW) Plus: Energy Retrofits Completed at 69 Buildings 2 Geothermal Systems 1 Solar Thermal System 2 mW of Hydro Electric Generation

Cincinnatis Advice
Do Energy Efficiency First Demand a Positive Cash Flow Be Creative Use All Available Subsidies Some Sites Work Better Than Others (And Some Dont Work At All)

Solar Power Purchase Agreements

SPPA Made Simple

The City: Allows Use Of Our Roof Agrees To Buy Electricity From The Roof The Developer: Does Everything Else (Builds the system; Owns the system; Maintains the system; Pays for the system; Arranges the financing; Gets the SRECS and other incentives; Takes the risk)

OK, Not Quite So Simple

What If: The City Closes the Facility The Roof Leaks The Developer Goes Out Of Business A Tree Shades the Panels The Panels Fail, And The Developer Doesnt Fix Them The Panels Damage The Building Etc., Etc., Etc.

SPPA Pros and Cons

Pros No Upfront Cost Little Or No Risk Stable Electric Price Creates Jobs and Economic Activity Reduces Carbon Emissions Reduces Fossil Fuel Usage and Air Pollution Cons Complicated Agreement Long Term Commitment Not Much Savings Best for Large Projects

Sample Calculations 1 mW System

Constr. Cost 30% Tax Credit New Mkt Tax Credit Finance, 20 yrs, 3%

$3,000,000 $ -900,000 $2,100,000 $ -600,000 $1,500,000 $ 120,000/yr debt service

Sample Calculations 1mW

1 mW Produces 1000 mWh/year Electricity @ $.07/kWh SRECS @ $115/SREC Total Income

$70,000/yr $115,000/yr $185,000/yr

LEED Incentive
LEED is a Green Building Rating System LEED uses a Point System: Platinum 52+ Gold 39+ Silver 33+ Certified 26+ Renewable Energy Earns Up To 3 Points

LEED Incentives
Cincinnati Has The Nations Most Generous Incentives

For Green Buildings. Full 15 Year Property Tax Abatement For LEED Certified Buildings. Cincinnati is Among The Nations Leaders in Green Buildings Per Capita.

Contact Info.
Larry Falkin, Director City of Cincinnati, Office of Environmental Quality Larry.Falkin@cincinnati-oh.gov 513-352-5325