1. ORECA Director Education Conference June 2, 2015 Jeff Beaman, Member Services Director Central Electric Cooperative The Road to Community Solar

2. Community Solar What is Community Solar? No legal definition Centralized, grid connected Multiple participants Participant funded

3. Community Solar Why is it Growing? Solar economics Incentives and mandates Net metering hurdles Public / utility attitudes

4. Community Solar Solar Economics: Oregon and Washington Expansion * 201320142015 est. 101 Mw123 Mw200 Mw *Solar Energy Industries Assoc.

5. Community Solar Solar Economics (cont’d): 142 Solar-related companies in Oregon 2,100 employees Installation costs: down 8 percent 2013 to 2014 down 49 percent since 2010

6. Community Solar National Trends: 2/3 of U.S. arrays installed since 2011 Panel prices down 80% since 2008 PV system installed every four minutes

7. Community Solar Mandates and Incentives: 30% federal tax credit thru 2016 10% after Renewable Portfolio Standards Clean Power Plan (Sec. 111d)

8. Community Solar Mandates and Incentives (cont’d): Federal Subsidies 2010-13 Down $8.7 Billion overall Up $4.4 Billion for Renewable Energy $2.5 billion for solar alone

9. Community Solar Utility Attitudes: Q: What new business model developing? A: Distributed Generation: 48% (#3) Q: Fuel mix changes over 20 years? A: More utility-scale solar (79%) and more distributed energy (84%)

10. Community Solar Utility Attitudes (cont’d): Q: Most compelling reason for clean energy investment? A:42% targets or mandates 31% sustainability

11. Community Solar Utility Attitudes (cont’d): Q: How invest in distributed energy resources? A:55% partner with 3 rd party providers 46% procure from customer-sited DER

12. Community Solar Utility Attitudes (cont’d): Top three emerging technology investments Utility scale renewables: 37% (#3) Distributed solar: 32% (#5)

13. Community Solar Public Attitudes (homeowner survey): 88 percent: renewables important to future 69 percent: more energy and electricity choices 62 percent: interested in solar for residences

14. Community Solar 25% of U.S. Homes Net Metering Suitable Home ownership vs. rental System cost Roof orientation Aesthetics and/or restrictions

15. Community Solar Is it Right for Your Co-op? Rate economics: cost vs. savings Specific mandates / incentive impacts Geographic location, how’s your sunshine? Member interest

16. Community Solar Member Interest: Survey comment “…dams and coal are probably more practical now, but we think they should be phased out and solar or other more environmentally friendly power sources should be our future investments.”

17. Community Solar CEC Member Interest (cont’d) Survey findings: 72% not familiar w/concept 69% view CEC involvement favorably 56% interested in participating

18. Community Solar CEC Objectives: Manageable size: 100-kW to 500-kW Not rate based, participant-funded Gain solar knowledge Serve member interest, offer choice Demonstrate proactive approach

19. Community Solar Preliminary Analysis: Use industry standard figures Bonneville Environmental Foundation ID potential grant opportunities Refine information as you go

20. Community Solar Preliminary Analysis (cont’d): Drive to “go – no go” decision by board Build in checkpoints and exit ramps Engage membership

21. Community Solar CEC advantages: Hybrid: Green Power and subscription Available land Close proximity to grid

22. Community Solar Deeper Economic Analysis: Put project out to bid Process reveals wide range of bids More fine tuning, other costs firm up Reach point of go-forward or exit

23. Community Solar Bid Responses Firm100 kW200 kW Company A$352,000$617,000 PRIOR ESTIMATE$348,000$616,000 Company B$318,255$611,765 Company C$301,049$538,239 Company D$294,273$570,195 Company E$259,494$479,178 Selected Company$241,248$442,288

24. Community Solar Committed! Now What? Select Contractor = expert partner Pursue grants Refine participation costs Communicate to members, keep them apprised Address local permitting issues

25. Community Solar CEC Current Status Land permit application pending One grant awarded, another pending Contracted with Sunlight Solar Energy Design refinements Developing hybrid business structure Marketing activities

26. Community Solar Project Schedule – tentative 1 st permits filed April 28 Permitting, materials acquisition thru mid-July Ground prep, installation thru mid-Sept. Inspect, interconnect, commission thru late Sept. Online Sept. 28

27. Community Solar Questions?

28. Community Solar My contact information: Jeff Beaman, Member Service Director Central Electric Cooperative jbeaman@cec.coop 541.312.7753