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Solar Oxford Challenge Report No: CAO 2017-12 CAO/CLERK Council Date: September 13, 2017 To: Warden and Members of County Council From: Chief Administrative Officer Solar Oxford Challenge . RECOMMENDATIONS 1. That County Council authorize staff to promote and conduct a renewable energy and conservation challenge referred to as the “Solar Oxford Challenge” as outlined in Report No. CAO 2017-12; 2. And further, that County Council authorize staff to offer a financial contribution of up to $500.00 as a performance incentive for up to 16 residents/businesses, representing each of the eight municipalities in Oxford County who participate and meet the eligibility criteria of the “Solar Oxford Challenge”. REPORT HIGHLIGHTS . This report seeks Council authority to pilot the Solar Oxford Challenge, a 100% Renewable Energy education and technology demonstration project. The Solar Oxford Challenge will provide a program that encourages a controlled demonstration of the potential of renewable energy in combination with a culture of conservation. Customer education and awareness must be based on first-hand knowledge or alternatively, through the actions of others that can be experienced through reporting and physical illustration. This pilot demonstration will enable a more broadly inclusive participation by other County electricity consumers based on performance results and experiential learning. Implementation Points With Council adoption of this report, the Solar Oxford Challenge will be launched by fall 2017, with participant orientation, training and installation work completed by the first quarter 2018. Page 1 of 8 Report No: CAO 2017-12 CAO/CLERK Council Date: September 13, 2017 Financial Impact The Solar Oxford Challenge (SOC) requires full capital cost investment by participants. To encourage conservation and efficiency performance, staff suggest a contribution of up to $500 per participant based on a sliding scale of performance - net zero annual performance will attract full contribution. Total pilot program costs, excluding staff time, will be limited to $13,000 for the pilot program with contribution costs being limited to $8,000 (16 residents at $500./resident) and communications costs estimated at $5,000. The program was included within the 2017 approved operating budget for Strategic Initiatives as part of the 100% Renewable Energy program. The Treasurer has reviewed this report and agrees with the financial impact information. Risks/Implications Participants in the Solar Oxford Challenge are required to invest in renewable energy technologies and energy conservation measures that when used effectively, will drive electricity consumption to net zero over the course of a full year. Success of the program is largely based on consumer participation and financial investment. Given the intent of the pilot is to assess obstacles to broader residential applications of solar energy and to encourage early adopters to demonstrate the ability to manage home energy demands, risk to the County is limited. Strategic Plan (2015-2018) County Council adopted the County of Oxford Strategic Plan (2015-2018) at its regular meeting held May 27, 2015. The initiative contained within this report supports the Values and Strategic Directions as set out in the Strategic Plan as it pertains to the following Strategic Directions: 1. i. A County that Works Together – Strengthen, diversify and broaden the economic/prosperity base through: - Strategies to retain and support existing businesses and grow our green economy - Increased collaborative promotion of investment opportunities 3. i. A County that Thinks Ahead and Wisely Shapes the Future – Influence federal and provincial policy with implications for the County by: - Advocating for human and health care services, facilities and resources, support for local industry, etc. - Advocating for federal and provincial initiatives that are appropriate to our county Page 2 of 8 Report No: CAO 2017-12 CAO/CLERK Council Date: September 13, 2017 3. iii. A County that Thinks Ahead and Wisely Shapes the Future - Demonstrated commitment to sustainability by: - Ensuring that all significant decisions are informed by assessing all options with regard to the community, economic and environmental implications including: o Potential impacts to the vulnerable population in our community o Responsible environmental leadership and stewardship o Supporting the community implementation of the Community Sustainability Plan 4. i. A County that Informs and Engages - Harness the power of the community through conversation and dialogue by: - Providing multiple opportunities for public participation and a meaningful voice in civic affairs - Fostering greater involvement in County and community events and/or program/project implementation - Understanding and addressing public aspirations for a more livable community DISCUSSION Background By creating a community based challenge that combines conservation and efficiency, smart metering, renewable energy, net metering and/or energy storage, consumers will take ownership of their electricity usage habits with a reward of significant long-term cost and energy savings. Conservation has become a means to an end, with the result of consumer fatigue and ambivalence. This is creating a barrier to further advancement in energy conservation results. Consumers need a well-defined objective and sense of accomplishment. The Solar Oxford Challenge provides this opportunity through direct participation and direct benefit through action. Comments The Solar Oxford Challenge inspires consumers to reduce electricity consumption by up to 50% with the goal of achieving net zero electricity consumption over the course of a year (based on Ontario’s Net Metering regulations). Ultimately, the Solar Oxford Challenge will create a scalable and repeatable program that will result in a significant reduction in electricity consumption through conservation, efficiency, renewable energy and culture change. The Solar Oxford Challenge can be considered a gateway to greater and more efficient renewable energy adoption in Ontario. Conservation and efficiency are always the first critical step when considering an investment in renewable energy. Net metering inherently drives this level of efficiency: every watt of electricity a consumer generates from renewable energy that is not required by their home or business is a unit of electricity that can be sent to Page 3 of 8 Report No: CAO 2017-12 CAO/CLERK Council Date: September 13, 2017 the electric utility for financial credit. Similarly, the less consumption a consumer has, the smaller the investment required for a solar photovoltaic system. As consumers become more efficient in their use of electricity, they can eventually decide to expand their solar system to carry additional electrical loads (for example, electric mobility). Program Opportunity and Anticipated Steps Conservation and efficiency are critical components of sustainable energy harvest and end use, however conservation and efficiency without a clear goal leads to consumer fatigue. In spite of the fact that all Ontarians now have access to their hourly electricity consumption online, current to midnight of the previous day, it is our opinion that the majority of people are not aware of this resource, or do not understand how to interpret the information. The strength of our Solar Oxford Challenge is based on the following points: Establish an educational program that involves Smart metering, conservation & efficiency and renewable energy; Identify existing annual consumption and calculate required solar to offset annual electricity usage. Estimate total cost of required solar to displace existing annual consumption; Create an achievable target of reducing electricity consumption by 50% - most consumers can meet this objective with modest effort and minimal cost (and by leveraging existing energy conservation programs); Re-assess total required solar amount and estimated cost to displace the equivalent electricity consumption after accounting for 50% reduction in annual kwh’s; Provide education and training resources required to assess best (and possibly most creative) approach to install solar capacity to meet reduced kwh result; Install solar under one of two scenarios: net metering agreement with local electric utility or energy storage system designed to avoid grid connected export of renewable energy to grid (where grid constraint prevents net metering opportunities); In the case of net metering, with new solar system in place, work with consumer to help reduce annual kwh by 50% in order to meet net zero electricity consumption over a 12 month period; In the case of energy storage, with new solar and storage system in place, work with consumer to optimize solar harvest and off-peak charging of energy storage device. Page 4 of 8 Report No: CAO 2017-12 CAO/CLERK Council Date: September 13, 2017 Marketing and Promotion – Western MBA report Oxford County had the opportunity to work with a small group of Western University Executive MBA (IVEY MBA) students as part of their program case study requirements. Their work is a consolidation of thoughts, ideas and recommendations. Their work suggests Oxford consumers are interested and prepared to invest in renewable energy, but do not know where to start. The Solar Oxford Challenge will create a critical starting point for customers. The very nature of this program is to develop a starting point for consumers and to further develop a process that can be followed for
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