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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Making Community Solar Work Jennifer S. Szaro Orlando Utilities Commission

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

• Began serving utility customers in 1923

• Provides water and electricity

• Service population of over 230,000 throughout Orange and Osceola Counties

• Governed by a 5-member board that includes City of Orlando Mayor

• Net Available Generating Capacity of 1,743 MW

• 2nd largest municipal utility in Florida

About OUC

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Reliable

Affordable Sustainable

An “Ideal” Utility Portfolio

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

OUC’s Solar Projects

Project Capacity (KW)

Stanton Solar Farm 5,910

Customer Incentives 4,200

Commercial Aggregation 418

Community Solar 400

Total 10,928

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

OUC’s Community Solar Farm Model

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Marketing Plan

Customer Focus Groups:

• General customer pool

• “Green-minded” customers

Critical Needs Identified:

• Rate stability

• No upfront investment

• Portability • No

maintenance • Visible

access to the site

Marketing Approach:

• Phase 1: Press release and media

• Phase 2: Targeted marketing to site-related barrier customers

• Phase 3: Mass marketing

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Gardenia Community Solar Program Details

• 400 KW covered parking array located at OUC’s Gardenia facility

• Open to residential and small commercial customers

• PPA rate of $0.18/KWH • Customer rate of $.13/KWH • OUC bills customer fixed rate for their

share of output over 25-year term • Project needed be 110% subscribed

before construction could begin • Project sold out in 6 days with help of

press release and earned media • Began operation October 2013 • 84 customers on waiting list (832 KW)

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Subscription Process

Customer pays initial reservation deposit of $50 at sign up

Shares sold in 1-KW increments (15 KW Max)

Customers who move within OUC territory may stay on program

Initial customer deposit is refunded after 2 years

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Billing Approach

Monthly Master Production Meter

Reading = 50,000 KWH

1 KW

400 KW Community Solar

Farm

Customer’s Share (1 KW/400 KW) x 50,000 KWH

• Customers pay $.13/KWH rate on a monthly basis

• 1st year estimated production • One master meter read

monthly (OUC hedges output) • Participating customers are

billed based on their share of production

• Customers receive virtual net metering benefits

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Lessons Learned

• Needed to identify methods for improving contract negotiations • Reverse auctions may offer more transparent, competitive

bidding • Project Siting - 3rd party locations add substantial complexity

Procurement

• Challenged to reduce or eliminate subsidies • Rate stability was most critical program feature • Could consider a slightly shorter term • Unify billing cycles if you can – smart meters help

Program Design

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Next Steps

• Completed vendor pre-qualification process on March 31st

• Pershing Community Solar Project pre-bid meeting scheduled for April 14th

• Reverse auction to be held in May 2014 • Evaluating rate design and terms • Goal to install next project by end of 2014

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R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

Questions?

Jennifer S. Szaro Manager, Renewable Energy

OUC (407) 434-2100 jszaro@ouc.com

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