|
|
|
|
|
Meeting Date:
|
7/11/2024 - 5:45 PM
|
|
Category:
|
APPROVAL OF CONSENT AGENDA
|
|
Type:
|
Action
|
|
Subject:
|
Solar Power Purchase Agreement for ten (10) Albemarle County Public School Facilities
|
|
ACPS Division Objective :
|
Goal 3 Equitable, Transformative Resources
|
|
Enclosure
|
1) PV System Overview, Benefits, Savings & Solar PV Array Diagrams
2) PPA Lease Agreement (for AHS, but representative of leases for all schools)
All ten leases are at the link below.
https://drive.google.com/drive/folders/1aLlUovbW6bxTAB2fU7wm2hWIsZabrUdj
|
|
File Attachment:
|
|
|
Summary:
|
Solar Power Purchase Agreement (PPA) legislation was passed in 2013 that allowed the State Corporation Commission to conduct a solar and wind pilot PPA program in Dominion Power’s service territory. A PPA allows a third-party financier to own the solar equipment, while the customer purchases renewable energy at a fixed annual rate typically over the course of a 25-year agreement. Albemarle County Public Schools requested proposals from multiple vendors with cooperative contracts in place, and Madison Energy (Formerly SunTribe Solar) was selected as the top firm for further negotiations.
Benefits of a solar PPA to our division include:
• No capital cost for solar photovoltaic system installation
• No system maintenance requirements
• Predictable electricity rates for duration of contract
• Tax incentives are incorporated into the pricing that are not directly available to the school division
• Environmental benefits related to renewable energy production
• Educational benefits for students and community.
Potential cons of a solar PPA include the duration of the agreement (25 years), requirement to consider how future building changes will affect shading of solar panels, and lack of a guarantee that the contracted price for electricity will be below Dominion’s rates.
After a technical review of proposed sites, Madison Energy has proposed 10 school solar photovoltaic installations for total system size of 4.5 megawatts (MW), offsetting 34% of Albemarle County Public School's electricity usage with clean renewable energy. Please note that final system sizes may vary slightly dependent upon full engineering and permitting.
The PPA provider owns the solar photovoltaic systems, and ACPS agrees to purchase the electricity generated by the system over the course of 25 years. The portion of electricity purchased from Madison Energy would replace the equivalent amount of electricity currently purchased from Dominion Virginia Power. The PPA saves ACPS approximately $10 million over the term of the 25-year agreement if Dominion’s rates increase at least 3.3% each year. Historically, Dominion’s annual average rates have increased by approximately 3.5%.
|
|
Funding:
|
The PPA provider owns the solar photovoltaic systems, and ACPS agrees to purchase the electricity generated by the system over the course of 25 years. The portion of electricity purchased from Madison Energy would replace the equivalent amount of electricity currently purchased from Dominion Virginia Power. The PPA saves ACPS approximately $10 million over the term of the 25-year agreement if Dominion’s rates increase at least 3.3% each year. Historically, Dominion’s annual average rates have increased by approximately 3.5%.
|
|
Recommendation:
|
Receive the information regarding the Solar Power Purchase Agreement and Form of Lease for discussion and will be placed on the August 8, 2024 consent agenda for approval of the Form of Lease and authorization of staff to enter into a Solar Power Purchase Agreement with Madison Energy.
|
|
Approvals:
|
|
Recommended By:
|
|
Signed By:
|
|
|
John Coles - Environmental Program Manager
|
|
|
Signed By:
|
|
|
Matt Wertman - Deputy Director of Building Services
|
|
|
Signed By:
|
|
|
Rosalyn Schmitt - Chief Operating Officer
|
|
|
Signed By:
|
|
|
Dr. Matthew Haas - Superintendent
|
|
|
|
|
|
|
|
|