Solar Energy Financing GUIDE

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Solar Energy Financing GUIDE Solar Energy Financing GUIDE Empowering Wisconsin Local Governments • Municipal, Tribal & School • Residential & Commercial • Microgrids • Government Actions Solar installation at Coleman Elementary School, Coleman, WI April 2017 Author: SHERRIE GRUDER, Sustainable Design & Energy Specialist erc.cals.wisc.edu CONTENTS INTRODUCTION ____________________________________________________________________________________________________________________________________________________________________________________________________ 3 FINANCING MUNICIPAL, TRIBAL & SCHOOL SOLAR PROJECTS ____________________________________________________________ 5 Direct Buy. 5 Case Studies: Brown County, Town of Menasha, Village of Fox Crossing, Dane County, Lakeland Union High School Public/Private Partnership ........................................................................................................................................7 Case Study: Jefferson Solar Park Third-Party Financing .................................................................................................................................................... 7 Case Studies: City of Monona, Darlington Community Schools, Mole Lake Chippewa Tribe, Forest County Potawatomi Community Wisconsin State Policy on Third-Party Financing of Solar Projects. 8-9 FINANCING RESIDENTIAL & COMMERCIAL SOLAR ___________________________________________________________________________________________ 10 Solar Group Purchasing ............................................................................................................................................10 Table 1. Solar Group Buy Programs in Wisconsin Case Studies: Solar Group Buy Programs 2016: Portage County, Mole Lake Chippewa Tribe Community Solar Gardens .......................................................................................................................................12 Case Studies: St. Croix Solar Garden, Eau Claire & La Crosse Table 2. Wisconsin Solar Gardens Map: Wisconsin Solar Installations ........................................................................................................................13 Legacy Solar Cooperative Model ............................................................................................................................15 PACE Financing ..........................................................................................................................................................16 Green Power Purchase MICROGRIDS _________________________________________________________________________________________________________________________________________________________________________________________________________ 17 Flexible Power Sources & Connectivity .................................................................................................................17 Case Study: Madeline Island Microgrid GOVERNMENT ACTIONS THAT FACILITATE SOLAR _______________________________________________________________________________________ 18 Streamlined Permitting and Inspection; Land Use Planning for Solar Siting; Solar-Ready Buildings; Demonstration Projects/Installations on Government Property; Education & Outreach CONCLUSION ________________________________________________________________________________________________________________________________________________________________________________________________________ 19 RESOURCES _____________________________________________________________________________________________________________________________________________________________________________________________________________ 20 ORGANIZATIONS _____________________________________________________________________________________________________________________________________________________________________________________________ 20 APPENDICES __________________________________________________________________________________________________________________________________________________________________________________________________________ 21 Appendix 1. Municipal/Tribal/School Solar Electric Projects ...............................................................................21 Appendix 2. Municipal/Tribal/School Solar Thermal Projects .............................................................................24 Appendix 3. Fitchburg West Fire Station Solar Study with RFP Recommendations .........................................25 GLOSSARY ______________________________________________________________________________________________________________________________________________________________________________________________________ 26 Front cover photo courtesy of Coleman Elementary School. 2 UW-EXTENSION Solar Energy Financing Guide – EMPOWERING WISCONSIN LOCAL GOVERNMENTS INTRODUCTION here is a shift toward clean, reliable and affordable money at home where it can provide local jobs. It will electricity in the United States, and local govern- attract businesses and residents who prefer to locate T ments and tribal nations have an opportunity to where they have clean energy options as well. School position their communities well in the growing renew- districts are installing able energy economy. Local governments are installing solar as an educational solar systems on their own buildings and land and are tool for students, to keep working with partners to help promote solar installation costs down for local tax- by their residents and businesses. Solar energy is payers and to improve broadly available now as a result of dramatically falling the environment. prices of solar equipment and innovative financing Many Wisconsin municipalities and tribal nations have a approaches and partnership models. history of supporting clean energy with more than 140 local Solar panels convert sunlight into energy and generate governments having passed Energy Independent no air or carbon pollution, solid waste, or water use (solar Community resolutions beginning in 2008. These com- panel manufacturing does have environmental impacts munities have adopted the goal of generating 25 percent like all other energy generating equipment; however, the of their energy for local government operations (buildings, manufacturing energy cost versus the energy production infrastructure and fleet) from renewable sources locally payback for solar modules is generally 2 years. NREL Report by 2025. This includes implementing energy efficiency No. NREL/FS-520-24619). Since solar is a technology measures because energy efficient buildings enhance and not a fuel, solar prices continue to fall with efficiency the effectiveness of photovoltaic generation. Many of the improvements and are at par with or approaching the Energy Independent Communities steadfastly continue price of coal today across the country. to pursue that goal. There are a myriad of other local governments working on energy efficiency and renew- Solar energy supports: able energy efforts as well. They are supported by many ÷ Energy independence by reducing dependence organizations that provide funding, technical assistance, on imported fossil fuel energy. education and networking in the energy arena. ÷ Local energy resilience by providing electricity Given these factors and more, local governments in close to where it is used and at peak cooling Wisconsin are investing in solar energy and working times when the grid is strained and power is with partners to create robust local solar markets. most expensive. Local governments, businesses, utilities, and nonprofit ÷ The local economy by providing good paying organizations have implemented a variety of financing jobs for local installers and construction crews. approaches to support solar system installations and ÷ Job growth by providing new jobs and training solar purchase. Those that can be used in Wisconsin are opportunities for workforce development. dictated by the laws of this regulated utility state. Even within those constraints, communities have applied ÷ Reduced electricity bills. innovative financing and brokered novel arrangements Wisconsin has an ample solar resource with 20 percent to encourage investment in solar. Recognizing that there more sunlight than Germany, a world leader in solar are multiple paths to finance solar development and that installations. As a state that is reliant on imported fossil the best options will be crafted to address local market fuels for 65 percent of its energy, Wisconsin is sending factors, this guide provides a range of financing options $13-15 billion out of state each year. By increasing solar using Wisconsin case studies to help communities iden- as a local energy resource, Wisconsin will keep more tify those best suited locally. UW-EXTENSION Solar Energy Financing Guide – EMPOWERING WISCONSIN LOCAL GOVERNMENT 3 The Solar Energy Financing Guide is a resource designed to fuel local governments and stakeholders with ideas Wisconsin local governments are and approaches for financing solar systems. The Guide investing in solar energy and working explores financing models for solar energy used success- with partners to create robust local fully by Wisconsin municipalities, tribes and school solar markets. districts for their own installations and for their residents and businesses. It provides case studies that demonstrate how the various financing approaches have been applied in Wisconsin; lists and maps detailing Wisconsin solar U.S. solar industry employment projects; useful tools and additional
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