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SolarCurrents - Customer-Owned Expansion Phase 2 Program Overview MREP Solar Committee Meeting December 12, 2012 Julie Londo, Program Manager.

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Presentation on theme: "SolarCurrents - Customer-Owned Expansion Phase 2 Program Overview MREP Solar Committee Meeting December 12, 2012 Julie Londo, Program Manager."— Presentation transcript:

1 SolarCurrents - Customer-Owned Expansion Phase 2 Program Overview MREP Solar Committee Meeting December 12, 2012 Julie Londo, Program Manager

2 A quick look at the results of Phase projects commissioned as of 12/12/12 (20 pending) 75/25 split between residential and non- residential based on number of projects (60/40 based on capacity) Projects located in all 13 counties of DTE Energy’s electric service territory Highest concentration of projects by City - Ann Arbor (54) - Detroit (21) - Ypsilanti (15) Average capacity factor ≈ 12%

3 Program Incentives – Phase 2 3 Program Incentives *Pricing will be reviewed prior to each offering. Program ParameterResidentialNon-Residential Program Capacity1.5MW0.5 MW (One-time) up-front payment$0.20/W initially*$0.13/W initially* Ongoing Payment$0.03/kWh initially*$0.02/kWh initially* Agreement termUntil August 31, 2029 Eligible system size1-20kW DC Award method Random selection process to award four 500- kW offerings of capacity released, from 2013 through 2014 New pricing reflects updated market pricing in installed cost of PV systems and different economics for residential / commercial customers Discrete offerings of capacity to control pace of subscriptions and avoid stampede for available kilowatts Desire to incentivize better system design and maintenance (new pricing reflects 30/70 split between up front and ongoing incentive components vs. 50/50 split in Phase 1) Note: (over 2.5MW of projects are active in Net Metering Program since Phase 1 concluded with 1.1MW fully commissioned)

4 Program offering timeline 4 The new process drives controlled approval, and quicker construction, of projects −Approximately 2 ½ months from program launch until project selection −10 months from project selection until completion deadline. Planned offering schedule −Jan 2013– 500kW −Jun 2013– 500kW −Jan 2014 – 500kW −Jun 2014 – 500kW −Feb 2015 – remnants SolarCurrents Customer-owned Program Launch Timeline Offering kW (375kW Res / 125kW Non-Res) Actual Date Offering Launches – Customers apply Day One 1/7/ a.m. Application Deadline30 days 2/5/ p.m. SolarCurrents team completes review of applications 5 business days2/12/2013 Random Selection Event held (if required) Within 10 business days 2/18/2013 Selected Projects Posted on SolarCurrents website 24 hours2/19/2013 Submit Interconnection Application 20 business days 3/19/2013 Submit invoice or project quote, site plan and PVWatts annual solar production form 40 business days 4/16/2013 Project Completion Deadline10 months12/16/2013

5 Random Selection Event Reasons for random project selection award method  Spreading out kW available for length of RPS program 2015 compliance target  Scheduled offerings of kW over time creates opportunities for customers to participate throughout the duration of the program How it works  Applications will be assigned a unique id number keeping customer identities confidential  Numbered balls representing eligible applications will be randomly drawn until the capacity is awarded for the phase  The drawing process stops when total kW capacity exceeds the offering limit  Any capacity not commissioned in an offering will be added the 2015 offering  Any overage of capacity awarded reduces size of next offering  Customers not selected will have to reapply for future offerings  All customers will be informed via within 24 hours of selection  Results will be posted on the DTE Energy Web site (dteenergy.com/SCresults) within 24 hours of selection 5

6 SolarCurrents Agreement 6 New for Phase 2: Agreement will be mailed upon selection of project Within 10 months of receiving notification of project selection, project must be ready for DTE Energy commissioning or the project may be subject to removal from participation in the SolarCurrents Customer-owned Pilot Program The contractual end date for every commissioned project is August 31, 2029 regardless of commissioning year Customers shall grant access rights to DTE Energy to obtain information regarding design, cost or performance of the solar PV energy system that participates in the DTE Energy SolarCurrents Customer-owned Pilot Program. Customers will be notified prior to scheduled visit.

7 Process Checklist 7 Step 5: Submit documentation. Within 40 business days of notification of project selection, provide commitment to complete project within 10 months by submitting: ~ Detailed site plan indicating placement of solar panels, including trees, buildings and other structures near the PV installation, and site orientation relative to True North. ~ Invoice showing proof of equipment purchased or document between installer and customer showing agreement to install solar PV system indicating down payment on project. ~ The completed annual solar production form by visiting the PVWatts website:

8 SUN(4786)

9 9 Residential example of $0.20/$0.03Non-Residential example of $0.13/$0.02 Solar PV system size5,000 watts Solar PV system cost$30,650* Applicable Federal Tax Credit, if applicable (up to 30%) $9,195 Up-front REC payment upon installation$1,000** Ongoing yearly REC payment for kWh generated over 16 years $2,736*** (term of Agreement depends on project commissioning date) Estimated Reduction In Electricity Costs over 16 years (Net Metering Generation Savings) $11,840**** Total Estimated Savings over 16 years$24,771 *assumes $6.13 per watt installed **in the form of a check *** will appear as a credit on DTE Energy Electric Bill ****based on residential electric service rates and estimated generation of 500kWh per month for 12 months Solar PV system size5,000 watts Solar PV system cost$30,650* Applicable Federal Tax Credit, if applicable (up to 30%) $9,195 Up-front REC payment upon installation$650** Ongoing yearly REC payment for kWh generated over 16 years $1,824*** (term of Agreement depends on project commissioning date) Estimated Reduction In Electricity Costs over 16 years (Net Metering Generation Savings) $11,105**** Total Estimated Savings over 16 years$22,774 *assumes $6.13 per watt installed **in the form of a check *** will appear as a credit on DTE Energy Electric Bill ****based on residential electric service rates and estimated generation of 500kWh per month for 12 months Res vs. Non-Res Pricing Examples

10 To date, Detroit Edison has built or contracted for approximately 700MW of renewable capacity Detroit Edison has already contracted for ~700 MW of new renewable capacity: L’Anse Warden 17 MW Biomass Baraga County Eagle Valley 3 MW Landfill Gas Oakland County Smiths Creek 3 MW Landfill Gas St. Clair County Stoney Corners 32 MW Wind Missaukee County Gratiot Wind Energy 212 MW* Wind Gratiot County SolarCurrents Pilot: 7 MW contract ed Located at customer /company sites across SE MI ~600 customer-owned projects once complete * Detroit Edison’s capacity equals 102.4MW Detroit Edison owned projects Third party owned projects Tuscola Bay 120 MW Wind Tuscola County Tuscola Wind MW Wind Pending MPSC approval Thumb Wind Farms ~110 MW Wind Huron & Sanilac County 10 Megawatts Wind684 Biomass17 Solar7 Landfill Gas6 Echo ~110 MW Wind Huron County


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