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2012 DC Nonprofit Solar
     Bulk Purchase
1.    DC Solar United Neighborhoods
2.    About 2012 Solar Bulk Purchase
3.    Looking For More Participants
4.    Benefits Of A Bulk Purchase
5.    Two Financing Options
6.    Pros & Cons of Financing Options
7.    Flexibility Of PPA Option
8.    How The Process Works
9.    Next Steps
10.   Important Internal Decisions
11.   Questions?
Making solar affordable and accessible for all of DC
1.    Umbrella organization for 11
      solar coops in DC
2.    Provides
      information, support, &
      connections to expedite the
      solarization process
3.     Helps nonprofits use solar
       power to reduce utility bills &
       increase mission-based
Contactspending
        | SolarCoop@Yahoo.com            Florida Avenue Baptist Church’s Rev. Earl Trent

Website | http://www.DCSUN.org
What is a Bulk Purchase?
1.   Group of nonprofits
     collaborates to acquire solar
     PV systems
2.   Collaborative pre-installation
     process supported by DC
     SUN
3.   Single installer
4.   Each participant receives its
     own system, and creates its
     own unique financing
     package
Potential Participating DC Community Organizations
Include:

1.   THEARC

2.   Bread for the City

3.   Center of Concern

4.   Georgetown Day School

Looking for other interested organizations
1                         2                         3
                                  Easier                    More
    Save Money                Implementation             Fundraising
                                 Process                Opportunities

     Ability to utilize         Guidance from DC
                                                             Larger
      economies of                 SUN & other
                                                            projects
           scale                  organizations
                                                          attract press
                                                           and donors
         Greater
       competition                Collaboration
         between                 through support           DC SUN will
        developers               network of other          supplement
                                  Bulk Purchase            fundraising
          More                     participants              efforts
       negotiating
         power
Full Purchase
Nonprofits negotiate a bulk purchase of a solar PV system. Each
nonprofit pays for its respective portion of the system, and, in
exchange, retains 100% ownership of (1) the solar system, (2) the
power the solar system installed on its property produces, (3) the Solar
Renewable Energy Certificates (SRECs) that correspond to that
renewable energy production, & (4) all other corresponding incentives.

    Power Purchase Agreement
    (PPA)
A project developer pays for, owns, and maintains a solar PV system for
each participating nonprofit. In exchange, (1) the nonprofits pay a
predetermined, discounted rate for all power produced by the system
throughout the life of the PPA contract, and (2) the project developer
retains 100% ownership of all incentives associated with the purchase
of the systems.
Full
                                                                     PPA
              Purchase
Pros                                              Pros
1. Substantial & immediate savings on energy      1. Little to no upfront costs
   expenditures                                   1. Low risk
1. Organization retains ownership of SRECs        1. No incentives are left on the table
   & all other incentives associated with solar   1. Organization is not responsible for general
   system installation & renewable energy            maintenance & upkeep of the solar system
   production

Cons                                              Cons
1. Significant upfront costs                      1. Limited    annual     energy    expenditure
1. Depending on tax appetite, various                savings
   incentives might be left on the table          1. SRECs and all other incentives associated
1. Organization is responsible for general           with solar system installation & renewable
   maintenance & upkeep of the solar system          energy production below to the developer
1.   Regular PPA - $0 upfront, higher monthly $/kWh
2.   Prepaid PPA – Pay $ upfront for lower monthly $/kWh
The more money prepaid, the greater the savings:
8-Step Process
1.   Sign up at http://bitly.com/bulkpurchasesignup
2.   Attend an informational meeting on Monday, April 23rd
     from 12:00 – 1:30 PM
3.   Sign a Letter of Intent by Friday, May 25th stating your
     organization would like to be included in the DC SUN 2012
     Solar Bulk Purchase
4.   DC SUN will solicit bids on behalf of the group
5.   Collaboratively review bids & select best option
6.   Develop & implement a fundraising campaign
7.   Sign an individual contract with chosen installer & have
     system installed
8.   Celebrate & spread the word
Deadline           Decision
                   As an organization, discuss:
                   1. Intent to implement a solar system
Today – April 23   2. Preference for full purchase or PPA
                   3. What amount of capital, if any, your organization is
                      willing and able to pay upfront
April 23           Attend informational meeting from 12:00 – 1:30 PM

May 25             Sign a “Letter Of Intent”
May 26 – June 8    Develop and initiate a fundraising strategy

June 29            DC SUN issues RFP on behalf of Participating Organizations

July 21            Review bids and select best proposal
1.   Roofing – How old is your roof? What material is it made
     of? Are there any structural or shading issues with your
     roof?

1.   Decision Makers – Who in your organization will have
     to give the final “OK” on this kind of project? Who will be
     the primary contact for information about the project?

1.   Capital – Does your organization have capital that it is
     willing to commit upfront to this project? Are you
     interested in putting together a fundraising campaign, in
     collaboration w/ DC SUN, to reduce the overall cost of the
     project?
Questions?

For more information visit:   https://sites.google.com/site/dcsolarunitedneighborhoods/key-issues-and-committees/2012-
Visualization of Energy Expenditure Savings

                                                                 Energy
                                                               Expenditure
                                                                 Savings




Pros | (1) Substantial & immediate savings, (2) ownership of SRECs
Cons | (1) Significant upfront costs, (2) tax-based incentives left on table,
         (3) responsible for upkeep
Visualization of Energy Expenditure Savings

                                                                Energy
                                                              Expenditure
                                                                Savings




Pros | (1) Little to no upfront costs, (2) low risk, (3) not responsible for
         upkeep

Cons | (1) Limited annual savings, (2) incentives go to developer

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DC SUN - DC nonprofit solar bulk purchase

  • 1. 2012 DC Nonprofit Solar Bulk Purchase
  • 2. 1. DC Solar United Neighborhoods 2. About 2012 Solar Bulk Purchase 3. Looking For More Participants 4. Benefits Of A Bulk Purchase 5. Two Financing Options 6. Pros & Cons of Financing Options 7. Flexibility Of PPA Option 8. How The Process Works 9. Next Steps 10. Important Internal Decisions 11. Questions?
  • 3. Making solar affordable and accessible for all of DC 1. Umbrella organization for 11 solar coops in DC 2. Provides information, support, & connections to expedite the solarization process 3. Helps nonprofits use solar power to reduce utility bills & increase mission-based Contactspending | SolarCoop@Yahoo.com Florida Avenue Baptist Church’s Rev. Earl Trent Website | http://www.DCSUN.org
  • 4. What is a Bulk Purchase? 1. Group of nonprofits collaborates to acquire solar PV systems 2. Collaborative pre-installation process supported by DC SUN 3. Single installer 4. Each participant receives its own system, and creates its own unique financing package
  • 5. Potential Participating DC Community Organizations Include: 1. THEARC 2. Bread for the City 3. Center of Concern 4. Georgetown Day School Looking for other interested organizations
  • 6. 1 2 3 Easier More Save Money Implementation Fundraising Process Opportunities Ability to utilize Guidance from DC Larger economies of SUN & other projects scale organizations attract press and donors Greater competition Collaboration between through support DC SUN will developers network of other supplement Bulk Purchase fundraising More participants efforts negotiating power
  • 7. Full Purchase Nonprofits negotiate a bulk purchase of a solar PV system. Each nonprofit pays for its respective portion of the system, and, in exchange, retains 100% ownership of (1) the solar system, (2) the power the solar system installed on its property produces, (3) the Solar Renewable Energy Certificates (SRECs) that correspond to that renewable energy production, & (4) all other corresponding incentives. Power Purchase Agreement (PPA) A project developer pays for, owns, and maintains a solar PV system for each participating nonprofit. In exchange, (1) the nonprofits pay a predetermined, discounted rate for all power produced by the system throughout the life of the PPA contract, and (2) the project developer retains 100% ownership of all incentives associated with the purchase of the systems.
  • 8. Full PPA Purchase Pros Pros 1. Substantial & immediate savings on energy 1. Little to no upfront costs expenditures 1. Low risk 1. Organization retains ownership of SRECs 1. No incentives are left on the table & all other incentives associated with solar 1. Organization is not responsible for general system installation & renewable energy maintenance & upkeep of the solar system production Cons Cons 1. Significant upfront costs 1. Limited annual energy expenditure 1. Depending on tax appetite, various savings incentives might be left on the table 1. SRECs and all other incentives associated 1. Organization is responsible for general with solar system installation & renewable maintenance & upkeep of the solar system energy production below to the developer
  • 9. 1. Regular PPA - $0 upfront, higher monthly $/kWh 2. Prepaid PPA – Pay $ upfront for lower monthly $/kWh The more money prepaid, the greater the savings:
  • 10. 8-Step Process 1. Sign up at http://bitly.com/bulkpurchasesignup 2. Attend an informational meeting on Monday, April 23rd from 12:00 – 1:30 PM 3. Sign a Letter of Intent by Friday, May 25th stating your organization would like to be included in the DC SUN 2012 Solar Bulk Purchase 4. DC SUN will solicit bids on behalf of the group 5. Collaboratively review bids & select best option 6. Develop & implement a fundraising campaign 7. Sign an individual contract with chosen installer & have system installed 8. Celebrate & spread the word
  • 11. Deadline Decision As an organization, discuss: 1. Intent to implement a solar system Today – April 23 2. Preference for full purchase or PPA 3. What amount of capital, if any, your organization is willing and able to pay upfront April 23 Attend informational meeting from 12:00 – 1:30 PM May 25 Sign a “Letter Of Intent” May 26 – June 8 Develop and initiate a fundraising strategy June 29 DC SUN issues RFP on behalf of Participating Organizations July 21 Review bids and select best proposal
  • 12. 1. Roofing – How old is your roof? What material is it made of? Are there any structural or shading issues with your roof? 1. Decision Makers – Who in your organization will have to give the final “OK” on this kind of project? Who will be the primary contact for information about the project? 1. Capital – Does your organization have capital that it is willing to commit upfront to this project? Are you interested in putting together a fundraising campaign, in collaboration w/ DC SUN, to reduce the overall cost of the project?
  • 13. Questions? For more information visit: https://sites.google.com/site/dcsolarunitedneighborhoods/key-issues-and-committees/2012-
  • 14. Visualization of Energy Expenditure Savings Energy Expenditure Savings Pros | (1) Substantial & immediate savings, (2) ownership of SRECs Cons | (1) Significant upfront costs, (2) tax-based incentives left on table, (3) responsible for upkeep
  • 15. Visualization of Energy Expenditure Savings Energy Expenditure Savings Pros | (1) Little to no upfront costs, (2) low risk, (3) not responsible for upkeep Cons | (1) Limited annual savings, (2) incentives go to developer