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Guide to Cooperative Residential Solar Programs

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Guide to Cooperative Residential Solar Programs GUIDE TO COOPERATIVE RESIDENTIAL SOLAR PROGRAMS PREPARED BY: RON REBENITSCH August 2017 Distributed Energy Resources Work Group Business & Technology Strategies This Guide to Cooperative Residential Solar Programs (“Guide”) is owned by the National Rural Electric Cooperative Association (NRECA). For more information about the Guide, please contact: Andrew Cotter, [email protected]. Disclaimers The Guide is intended to be a general resource for electric cooperatives. It is not an exhaustive and complete examination of every issue associated with residential solar program design. The Guide is not tailored to specific state laws or specific facts and circumstances that may apply to an electric cooperative. NRECA is not attempting to render specific legal or other professional advice in this Guide. NRECA encourages cooperatives to consult with qualified attorneys, consultants, and accounting and tax advisers. Specifically, members are cautioned to keep in mind federal tax law requirements for cooperative operation as well as antitrust law prohibitions when discussing rates and rate design with others. Case studies are provided in the Guide as examples only to illustrate how various residential solar program designs and related practices have worked at some cooperatives. NRECA is committed to complying fully with all applicable federal and state antitrust laws. NRECA is not endorsing any particular residential solar program design or practice featured in these case studies and is not suggesting they are appropriate for every cooperative. Electric cooperatives are (1) independent entities; (2) governed by independent boards of directors; and (3) affected by different member, financial, legal, political, policy, operational, and other considerations. For these reasons, each electric cooperative should use its independent judgment and discretion to make its own business decisions on whether and how to use the Guide, and in determining whether to develop and implement a residential solar program. Disclaimer of Warranties & Liability: This guide is provided “as is,” and NRECA makes no warranties or representations, either express or implied, about the information contained in the guide, including warranties of accuracy, completeness, or usefulness. The Guide contains findings that are general in nature. Readers are reminded to perform due diligence in applying these findings to their specific needs, as it is not possible for NRECA or its contributors to have sufficient understanding of any specific situation to ensure applicability of the findings in all cases. The information in the Guide is not intended to develop and does not develop best practices, recommendations, duties of care, standards, or similar items, whether direct, indirect, express, implied, de facto, or otherwise. Similarly, the information in the Guide does not intend to create, expand, or otherwise impact an electric cooperative’s legal duties, obligations, expectations, or liabilities. NRECA does not assume liability for how readers may use, interpret, or apply the information, analysis, templates, and guidance herein or with respect to the use of, or damages resulting from the use of, any information, apparatus, method, or process contained herein. In addition, NRECA makes no warranty or representation that the use of these contents does not infringe on privately held rights. License Right and Confidentiality:This Guide is intended solely for internal use by NRECA electric cooperative members and should be treated as confidential and only shared with others, such as cooperative advisers and consultants, on a “need-to-know” basis. All Rights Reserved © 2017 National Rural Electric Cooperative Association. < PREVIOUS > Guide to Cooperative Residential Solar Programs | i Table of Contents PREFACE ...................................................................................................................................................... iii INTRODUCTION ........................................................................................................................................ iii EXECUTIVE SUMMARY ........................................................................................................................... v Key Risks and Challenges to a Residential PV Program ............................................... v Solar Industry Overview .................................................................................................... vii SECTION 1 DEFINE GOALS AND OBJECTIVES ....................................................................... 1 SECTION 2 ASSESS THE DEMAND AND BUSINESS CASE ................................................. 2 SECTION 3 DESIGNING THE SOLAR PROGRAM .................................................................... 4 Business Model Checklist ........................................................................................ 6 Residential PV Program Models and Options ............................................................. 8 Developing the Business Case ........................................................................................ 10 Reviewing Business Case Economics .................................................................... 12 Additional Business Case Planning Considerations ................................................... 12 Marketing ................................................................................................................... 12 Software ..................................................................................................................... 12 Financing .................................................................................................................... 12 SECTION 4 MARKETING THE PROGRAM ................................................................................... 14 Adapting the Solar Program to Local Conditions ....................................................... 17 SECTION 5 RESOURCES AND STAFF TASKING ...................................................................... 20 SECTION 6 ESTABLISH AGREEMENTS WITH MEMBER-CONSUMERS .......................... 22 SECTION 7 PROGRAM EXECUTION ............................................................................................. 24 Engineer, Install, and Interconnect the Systems ........................................................... 25 Residential Solar Components ................................................................................ 25 Standard Installation ................................................................................................ 28 General Information and Recommendations ....................................................... 29 Contractors and Installation Crews ....................................................................... 30 Monitor and Maintain the System ................................................................................. 31 System Maintenance................................................................................................. 31 Software and Billing ......................................................................................................... 32 Software Interoperability ......................................................................................... 33 Customer Engagement Platform/Online Web Portal ......................................... 34 Legal Requirements, Billing, and Record Keeping .............................................. 34 Cyber Security ........................................................................................................... 35 Monitor Maintenance and Member Service ................................................................. 36 Warranty Caution ..................................................................................................... 36 Homeowner Criteria ................................................................................................ 37 Member-Consumer Responsibilities ...................................................................... 37 < PREVIOUS > Guide to Cooperative Residential Solar Programs | ii SECTION 8 CASE STUDIES FOR RESIDENTIAL SOLAR PROGRAMS ............................. 39 Pedernales Electric Cooperative ..................................................................................... 40 CPS Energy ........................................................................................................................ 41 Solar Rebates ............................................................................................................. 41 The SolarHost Program ........................................................................................... 42 The Roofless Solar Program .................................................................................... 43 Arizona Public Service (APS) .......................................................................................... 44 Delta-Montrose Electric Association .............................................................................. 46 Anza Electric Cooperative, Inc. ...................................................................................... 47 Wright-Hennepin Cooperative Electric Association (WHCEA) ................................ 49 APPENDIX TASK LIST OVERVIEW ............................................................................................... 51 FIGURES Figure 1 Consumer Interest in Solar Generation ........................................................................
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