Environmental Sustainability Manager Urbana Solar Work Scott R. Tess Environmental Sustainability Manager srtess@urbanaillinois.us 217-384-2381

Bulk Solar Partnered with MREA Bid a single solar installer for limited time, city sponsored, bulk purchase, fixed price 81 contracts for 605kw in round one Likely to reach 150kw in our current round Education, lower price, local market development

Facilities Solar PPA Started procurement before FEJA Behind the meter installation at city facility Third party ownership 25 year power purchase agreement Essentially cost neutral Kept last 20 years of Renewable Energy Credits (RECs)

SolSmart - NREL Scenario 0. Base Case 1. Cost Effective PV + Storage PV size (kW) 23 PV cost ($) $0 $79,120 PV energy production (kWh) 27,142 Battery Size (kW) - Battery Size (kWh) Battery Cost ($) Percent RE (%) 0% 100% Life Cycle Costs $31,731 $53,356 Net present value ($) -$21,625 Using the RTP data, the lifecycle cost of energy in the base case is $31,000, about 50% less than the current rate1 Current rate: $0.092/kWh RTP blended rate: $0.044/kWh With the RTP rate, neither PV nor battery appears cost effective 1This includes only the delivery costs and day ahead prices; any additional riders that are part of this tariff would increase the lifecycle cost

Solar Status Quo Ante FEJA FEJA is Future Energy Jobs Act Solar behind the meter with no distribution Utility scale solar paid avoided cost rate No meter aggregation (virtual net metering) State REC purchase (subsidy) for distributed

Solar Status Quo Post FEJA New bundle of state REC purchases Distributed generation incentive Low-income distributed generation incentive Low-Income Community Solar Project Initiative Incentives for non -profits and public facilities Low-Income Community Solar Pilot Projects Community Solar incentive Utility scale solar incentive Brownfield solar incentive Utilities obligated to provide Meter Aggregation at least for state incentivized production

Urbana’s Closed Landfill 10-40 acres of developable space Not perfectly flat, nor gently sloping in all places Appears to be two electrical substations within 1.5 miles

Timeframe Some utility scale procurements already underway or completed Draft IL Power Authority (IPA) plan for block pricing and competitive REC procurements should be filed in September-ish Final IL Commerce Commission approval is expected in March 2018

Community Solar State REC purchases 15 year contracts Payments are front loaded Fixed price rather than auction (block) 2mw max Cs, utility, brownfield are 15 year contracts LI CS Pilot 2mw, cs 2mw

Scale 40 acres equals 10mw of capacity 10 megawatts would produce 13,788,917 kwh/year –PVWatts City of Urbana Facilities and Street Lights use 6,312,097 kwh/year Alternatively, 10mw could power roughly 1200 households

Scale to CAP Goals 6mw is roughly equivalent to 1% reduction from 2007 baseline 1mw is roughly equivalent to 1000 MT of GHG. At 18% reduction including RECs. 7% without RECs.

Potential Procedure Issue Request For Information after IPA filing in late 2017 Issue RFP soliciting proposals for any of the FEJA incentivized project types in early 2018 Possible evaluation criteria Total mw size Lease price Expected kWh price offered to Urbana off-takers Property maintenance plan Overall community benefit

At Present Talking with solar developers Soliciting technical assistance Reading RFPs from other states