Lancaster Solar

Presentation Overview

• Background Information• Why Solar?• Site Selection • Site Details• Ownership model• Management• Next Steps

Background Information

• Lancaster – Worcester County; population 7,026

• Lancaster becomes a Green Community in 2010- Reduce energy consumption by 20%

• Additional Goal: offset 100% non-enterprise consumption

- 680,000 kWh/year

• Many innovative measures already taken to improve efficiency

Why Solar?

• No wind!

• Incentives Available for Solar-Congressional Earmark

- Net Metering- SRECs

• LandAvailable

Easy Permitting

Site Selection

• Feasibility Study- All rooftops- All Municipal land

• Rooftops- Not enough load capacity(have structural engineer available)

• Landfill was best Municipal Land- 72 acre parcel- Abutters are far- Zoned Appropriately

Site Details• 72 acre parcel• 10 acre cap• Capacity: 0.5 MW

- 610,000 kWh/yr (Goal was 680,000 kWh/yr)

Ownership Model

REVENUE: $173,000 /yr (SREC sales at $285)

- SRECs paying the bond• Net metering avoided cost is profit (est. $85,400 /yr)• Taking advantage of low hanging fruit

COST: $2.5 Million• Received Congressional earmark of $0.5 Million• Town voted to borrow $2 Million

- Bond Cost: $171,000 /yr(Principal and Interest)

• Renewable Energy Enterprise (MGL c.44, SS 53F1/2)

• Separate budget & accounting:• SRECs• Net Metering

• Isolate debt service from general fund• Isolate revenue from Town operating budget

Management

Results: project accountability & simplified success and failure tracking• Town is authoring guidance on allowable enterprise expenses and revenues

PROCURE (Current)• Equipment• Installation Services• Permits

Next Steps

BUILD (March 2012)• Site Preparation• Panel Install• Interconnection

Questions & Discussion