1. PURDUE’S SOLAR ENDOWMENT UTILITY SCALE SOLAR VALUE

2. TEAM INTRODUCTION Purdue’s Solar Endowment is a collaborative effort between : College of Technology Krannert School of Management Comprises of a multidisciplinary team : Student 1 - MS, Engineering Technologies Student 2 - MS, Ecological Sciences and Engineering Student 3 - BS, Electrical Engineering Student 4 - MS, Mechanical Engineering and Management Student 5 - BS, Economics WHO IS INVOLVED?

3. WHO ARE PURDUE STAKEHOLDERS ?

4. Purdue CHP Plant (Wade) Benefits –Produces Heating, Cooling, and Power –Low Electrical Rates Purdue Consumed 309 GWh in 2014. –Roughly 30% Wade Energy –Remaining Purchased by Duke CURRENT ENERGY SITUATION

5. WHAT CAN SOLAR DO FOR PURDUE? ENERGY ANALYSIS AT PURDUE

6. Low Fuel Cost o Purdue’s Wade Utility Plant Weather Dependency o 190 Sunny days PPA with Duke Restrictions o 1 MW net metering No Tax Credits for State Funded Universities PURDUE’S SOLAR BARRIERS CHALLENGES FOR SOLAR

7. Purdue Owned Array Purchase Through Investment Office 100 Million Annual Investment Portfolio However, not applicable for 30% Tax Credit POSSIBLE RECOMMENDED FINANCING OPPORTUNITIES FINANCING OPTIONS

8. POSSIBLE RECOMMENDED FINANCING OPPORTUNITIES Third Party Owned Array Purchased by Donor Applicable for 30% Tax Credit Depreciate Array Over Time PPA with Purdue Energy Office Leasing Agreement with Purdue –Purdue Purchase at Break Even Point FINANCING OPTIONS

9. Inside the Fence Energy Used by Wade Production Value Being Researched Time Value of Solar Energy Investment Timing Will Provide Generation Flexibility Purchase Less from Duke Offset Some Peak Conditions INSIDE / OUTSIDE OF THE FENCE Outside the Fence Energy Used by Duke Production Value Power Purchase Agreement (PPA) –Sold at Set Rate to Local Utility –Typically 10 to 20 years LOCATION OPPORTUNITIES

10. SELECTED SITES CHARACTERISTICS Input From Stakeholders Educational Aspects Interconnect Possibilities Return on Investment Future Land Development POSSIBLE SOLAR PV LOCATIONS SitesArea (m^2) kWDC Hawkins Hall1,602240 Knoy Hall958144 REC Center13,7952,069 Near Pond (Site C)30,2724,540 Young Hall1,481222 CONSIDERATIONS

11. Opportunities Third Party Purchased Array Tax Credits Deprecation Inside Purdue/Wade Grid OVERALL OPPORTUNITIES AND CHALLENGES Challenges Low Cost of Electricity Purdue Purchased Array No Tax Credits 1 MW of Net Metering CONCLUSION