Professional Documents
Culture Documents
Packet
Fall, 2016
Table of Contents
I.
II.
Project
Summary_______________________________________________________
______
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12
Application_________________________________
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A. Budget
Form_____________________________________________________
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III.
IV.
University
Comparisons____________________________________________________
_
I. Project Summary
October 28, 2016
Go Solar! Loyola Project Summary
Go Solar! Loyola provides a unique opportunity for Loyola to fulfill and further its mission and brand.
The central component of Go Solar! Loyola is a ~733 kW photovoltaic solar panel installation on
Gentile Arena, Halas Recreation Center, and Damen Student Center roofs. In addition, the project
entails multiple student and community engagement opportunities including usage in multiple courses.
The economically lucrative project will save the university money on electricity bills. Renewable
electricity replaces coal, natural gas, and nuclear energy, mitigating 649 tons of carbon dioxide
annually. The Loyola community will witness real world institutional commitment to the
environmental integrity of our earth. The project, which advance[s] Loyola's position as a national
university leader in environmental sustainability and promote[s] learning, research, and service that
can affect significant environmental and social justice outcomes, directly fulfills Priority 3 Strategy 5
of Plan2020, Loyolas Strategic Action Plan. In addition, the Go Solar! project fulfills and exceeds the
on-site renewable energy action step of Loyolas Climate Action Plan by providing ~1.6% of lakeside
electricity use. Go Solar! Loyola, which benefits the university financially, socially, and
environmentally, offers a sensible and sustainable leap forward.
Opportunities and Strengths
Financial
No upfront cost - Power Purchase Agreement allows financier to access federal tax credit
Savings on electricity for the term of the contract especially as T&D costs rise
Potential for additional revenue by sale of Solar Renewable Energy Credits (SRECs)
Advancement opportunity for alumni
Academics
Utilize energy metric dashboards to conceptualize life-cycle analysis, carbon emissions
mitigation, and the environmental commodities market
Connection with the Provost's Office by revising the service learning category to explicitly
integrate sustainability with experiential learning
Platform for engaging the Computer Science Program and Physics Department
Integrated with Institute of Environmental Sustainability programing such as Solutions to
Environmental Problems, ENVS 288: Applied Interdisciplinary Data Analysis, Tier II
Electives: ENVS 224 and ENVS 273, and the creation of a renewable energy course
Supportive faculty: Ping Jing PhD, Tania Schusler PhD, and Nancy Landrum PhD
Introduction of Quinlan School of Business Energy Management course
Core Curriculum integration through tours and data analysis in UCSF 137
Campus Life
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Quantity
Description
Cost
Income/Savings
Windfree Solar:
Power Purchase
Agreement
(PPA)
733 kW
30 year contract,
maintenance included, no
escalation rate
$.0787 / kWh
produced
~$10,000 / yr and
up (as
conventional
energy rates
increase)
Windfree Solar:
Direct Purchase
733 kW @
$2.15/kW
$1,575,950
~ $80,000 / yr and
up
+
$101,709 SREC
value
Inovateus Solar:
Power Purchase
Agreement
(PPA)
500 kW +
(max that
can fit on
roof
space)
$.085 - .095 /
kWh
produced with
2% annual
escalator
~ $3,000 / yr and
up
+
$68,200 SREC
value
Inovateus Solar:
Direct Purchase
500kW @
$2.37/kW
Purchased in full by
Loyola University
Chicago
$1,185,000
Business as
Usual
No Array
N/A
~$.086/kWh
produced with
None
~2.88%
annual
escalator
~$80,000 /yr
and up
Go Solar! Loyola proposes the investment in a 500 to 733 kW on-site solar array. Under the advisement
of Kana Henning, the Associate VP for Facilities and our project sponsor, as well as David Beall, the
Assistant VP of Business and Capital Planning in Facilities, we suggest moving forward with a Power
Purchase Agreement (PPA) payment method as opposed to Direct Ownership. Because the PPA model
utilizes a third party, for-profit organization as financier, it is able to capture the 30% tax credit, which
significantly improves the financial viability of the installation. Some PPA contractors will allow the
host company, Loyola, to keep the Solar Renewable Energy Credits (SREC) associated with the onsite energy production, which can act as another form of revenue if the credits are auctioned annually.
It is, however, imperative to act in the short term due to the politically variable nature of both the
federal tax credit and SREC opportunities.
Within the greater context of U.S. electricity rates (2015 commercial sector avg $0.1059 /kWh) with
HI at $0.2617 to WA at $0.0741, Loyolas 2015 rate of $0.086 puts the university on the low and
financially beneficial end of the spectrum. Consequently, solar energy is less economically competitive
here than it is in other states. Therefore, these economically beneficial budget options from Windfree
and Inovateus are remarkable. Though the two contract proposals have appealing financials, we
recommend that Loyola release a RFP to give clearer direction on the terms or options that Loyola
would like to see. In addition, Loyola can begin contract negotiations with Windfree, Inovateus, and
any other companies that submit proposals.
The Go Solar! Loyola Team
Christie Kochis and Paul Campion
Facilities
Please provide a brief description of the proposed project / initiative:
The goal of this project is the installment of photovoltaic solar panels on several rooftops on
Loyola University Chicagos Lakeshore campus, including: Gentile Arena, Halas Recreation
Center, and Damen Student Center. Depending on university priorities, these solar panels can be
installed through a Power Purchase Agreement (PPA) or through direct ownership. We anticipate
the timeline for implementation to be determined by the construction and budgeting process. It is
highly possible to have the installation up and running before Fall 2017.
Please provide detail on how this project advances Loyolas Strategic Plan, Plan2020:
Loyola continues its commitment to addressing societal challenges. These issues, especially
climate change, environmental degradation, require sustained effort, interdisciplinary
knowledge, and innovative approaches. Within the Plan2020, priority 3, strategy 5 states,
Advance interdisciplinary education that promotes environmental sustainability and enhances the
quality of education in science, technology, engineering, and mathematics.
Tactic 5.a: The director of the Institute of Environmental Sustainability will implement new
programs that advance Loyola's position as a national university leader in environmental
sustainability (by FY2020).
Tactic 5.c: The provost and the academic leaders for STEM fields will enhance and deploy our
resources to promote learning, research, and service that can affect significant environmental and
social justice outcomes (by fall 2018).
In light of these Plan2020 excerpts, Go Solar! Loyola will be both a program that advances
Loyolas position and a deployment of our resources with significant environmental outcomes.
Please provide detail on how this project advances Loyolas Climate Action Plan:
Purchased Electricity makes up 50% of the CO2e emissions calculated for the 2014 fiscal year.
Loyolas Climate Action Plan declares that the university will reduce carbon emissions to help
reach carbon neutrality by 2025. One of the action steps is on-site renewable energy, with a goal
of reducing electricity emissions by 1%. According to the FY2015, the total energy use for the
Lakeshore and Water Tower campuses was 57,755,517 kWh. A 733 kW installation would cover
1.6% of lakeside energy use, actualizing the universitys on-site renewable energy goal.
Please provide financial impacts anticipated by this project including paybacks through
revenue or cost savings:
Financial impacts vary significantly between the direct ownership and PPA models. Under the
recommended PPA model the universitys savings start at ~$10,000 / yr and increase over time.
The total cost over thirty years is $1,891,585.25; meanwhile, the projected total savings are
$1,216,049.47.
Please provide quantitative environmental impacts anticipated by this project (please indicate
the unit of measurement, ie. Gallons of water saved, kilowatt hours of electricity avoided, tons
of carbon dioxide reduced):
By installing 733 kW of solar panels on Loyolas Lakeshore campus, the university will create and
use 924,636 kWh of clean renewable electricity annually. This is equivalent to reducing ~ 649
metric tons of carbon dioxide emissions every year. To put this into perspective, 649 metric tons of
carbon dioxide is equivalent to the annual emissions of 68.5 homes or 137 passenger vehicles.
Alternatively, it is the amount of carbon sequestered by 614 acres of U.S. forests in one year.
Overall, these reductions account for ~.8% of total university emissions.
Please provide detail on how this project supports the campus and student life at Loyola:
Reputation Enhancement: a leader in renewable energy in our community and one of the top ten
most sustainable campuses in the nation. Solar power will create a greener campus with long-term
and bottom-line benefits.
Awareness and Transparency: display photovoltaic energy generation throughout the campus via
the investment in a dashboard or a website platform.
Visibility: visitors can see the panels from the top floor of the Main Parking Garage. Also, a
university TV can be designated to display a live camera feed of the panels.
Academics: Faculty and students in the STEM and IES disciplines can examine the technology,
analyze the energy metrics, and conceptualize life-cycle analysis, carbon emissions mitigation, and
the environmental commodities market from a first-hand model.
Please provide detail on how this project will be communicated to the broader community at
Loyola:
In preparation for the installment, the Student Environmental Alliance will launch an educational
campaign with tabling and surveys to inform the broader community of the solar installation. We
can get feedback from the community on how they can best understand the photovoltaic energy
information, what updates they would like in relation to the panels in the long term as well as any
other feedback.
Go Solar! Loyola presents an opportunity for an opening ceremony once the solar panels have been
installed. This ribbon cutting will most likely be hosted by the Institute of Environmental
Sustainability, Division of Facilities Management, and the Office of the President (as well as any
other departments involved). The Loyola community will be invited and informed of this solar
installment and ceremony. This event presents a unique opportunity for President Jo Ann Rooney
to get involved in the sustainability movement at Loyola early on in her position.
The new on-site solar array offers a fundraising opportunity for the Advancement Division.
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The data metrics provided by the solar panels can be displayed to the larger community through a
simple or more extensive dashboard or a website platform. The decision on what to invest in and
how much is reliant on the university priorities.
University tours can incorporate the solar powered locations to inform potential donors, students,
and the community of another way Loyola is supporting social and environmental justice and
moving forward with the universitys Strategic Plan 2020 and Climate Action Plan goals.
Please provide detail on how this project will be sustained following the initial support from the
Sustainability Committee including Sponsors agreement to sustain the effort and any impacted
departments:
Facilities Management will be responsible for maintenance and roof/panel access needs. Kana
Henning, Associate Vice President for Facilities, agreed to be the sponsor to sustain Go Solar!
Loyola.
The Director of Sustainability (with assistance from the sustainability committee as needed) will be
responsible for sustainability related communication and information regarding the panels.
Academic departments, including STEM and IES, that want to use the online metric dashboards,
live camera streaming, or website platform for research, life cycle analysis, energy metric
measurements, or any other means will have a designated lead. This lead is required to contact the
appropriate individuals in Facilities, IES, UMC or any other department when planning,
implementing, and promoting their project findings. These academic projects will help Loyola
fulfill Strategic Plan 2020 and maintain a constant discussion around Loyolas on-site solar energy.
Budget
Budget Options
Quantity
Description
Cost
Income/Savings
Windfree Solar:
Power Purchase
Agreement
(PPA)
733 kW
30 year contract,
maintenance included, no
escalation rate
$.0787 / kWh
produced
~$10,000 / yr and
up (as
conventional
energy rates
increase)
Windfree Solar:
Direct Purchase
733 kW @
$2.15/kW
$1,575,950
~ $80,000 / yr and
up
+
$101,709 SREC
value
Inovateus Solar:
Power Purchase
Agreement
(PPA)
500 kW +
(max that
can fit on
roof
space)
$.085 - .095 /
kWh
produced with
2% annual
escalator
~ $3,000 / yr and
up
+
$68,200 SREC
value
Inovateus Solar:
Direct Purchase
500kW @
$2.37/kW
Purchased in full by
Loyola University
Chicago
$1,185,000
Business as
Usual
No Array
N/A
~$.086/kWh
produced with
~2.88%
None
annual
escalator
~$80,000 /yr
and up
Budget Narrative
Depending on university priorities, this project could either move forward with a Power Purchase
Agreement or a Direct Ownership payment method (perhaps via a solar shareholder donor
mechanism). Because the PPA model utilizes a third party, for-profit organization as financier, it is
able to capture the 30% tax credit, which significantly improves financial viability. The pros or
cons of either option can be evaluated by the correct parties when the appropriate time arises.
The proposals from Inovateus and Windfree provide a clear and amicable financial path forward
for Loyola. It is, however, imperative to act in the short term due to the politically variable nature
of both the federal tax credit and REC opportunities. It is important to note that the offer from
Windfree is extremely Loyola friendly relative to offers from other companies (Microgrid
rescinded their proposal due to it not being financially viable at over $2.55 / kW).
Within the greater context of U.S. electricity rates (2015 commercial sector avg $0.1059 /kWh)
with HI at $0.2617 to WA at $0.0741, Loyolas 2015 rate of $0.086 puts the university on the low
and financially beneficial end of the spectrum. Consequently, solar energy is less economically
competitive here than it is in other states (a main reason why some of the largest solar companies
like SolarCity and Vivint Solar do not operate in Illinois). Therefore, these economically beneficial
budget options are remarkable and in part the fruit of extensive negotiation with the proposing
companies as well as Loyolas solid credit.
Electricity data from the U.S. Energy Information Administration at eia.gov
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problems in the future. Also-with proper row spacing between panels, access
shouldnt be a problem.
6) How much would it cost to temporarily remove panels to replace one or all of the roofs? (I.e. say
we needed to completely replace Gentile Arena's roof at year 15 and it would take multiple months).
What does the relevant section of a possible contract say specifically about this?
Inovateus: The removal and re-installation of the solar panels typically costs about $0.50 per
DC watt. If you were to install 500kW that would be about $25,000 to remove and reinstall.
Windfree: A couple things, did you know that Solar Panels actually increase the life of roofs?
especially if the roof is mostly covered with panels? The owner of the panels -Inovateus - is
responsible for maintenance as well as removing and relocating the panels and should be
contacted in the event of roof work, they are also financially responsible for removi1ng the
panels and reinstalling; it will not cost the campus any dollars to move and relocate.
7) There is some interest on our side in installing a single building's system, evaluating, and then
expanding. Is this at all feasible? If so, what might it look like?
Inovateus: If this was the case we would suggest owning outright. There's a threshold where
PPA's don't make sense even if you can get the tax credit.
Windfree: My recommendation is if you were to install a smaller system on a single building
you should just outright purchase the system, own it and maintain it, and sell the RECs. The
disadvantage is you will not be able to receive the tax credits (which is 30% off the project) by
owning the system because Loyola U does not pay taxes.
The PPA investors are not interested in doing small systems (anything less than 500 kW), only
larger systems, or multiple smaller rooftop solar systems (that equate to a big system). The
investors were interested in a 733 kW system. Alternatively a 500 kW system may be
interesting enough for our PPA investor, especially if paired with Co-Gen.
8) There is also interest in parking garage panels (a 4th building) on an elevated structures above the
highest level cars. This could potentially open up space for far more panels (300+ kW based on another
company's estimate). What would be the best way to address expanding the project to include this
dimension? How much would the structure to hold the panels cost? Could Loyola potentially finance
the structure outright while the additional panels remained included in the PPA portion of the contract?
How would it impact the PPA rate if the structure was included in the PPA?
Inovateus: We could definitely do this but the cost of the solar system of a rooftop parking
garage is quite expensive and customized. We basically have to build a roof on top of the garage
and then mount the solar panels on top of that. We can figure it out but it could raise the price
of the solar.
Windfree: Good question. The simplest PPA, that is going to provide the cheapest per watt
install price and cheapest per kWh rate will not include solar canopies. Solar Canopies are
significantly more expensive to install and thus cannot be wrapped into the 30 year PPA at
$.0797 cents per kWh. We believe we can get 733 kW on available Loyola rooftops without
including solar canopies.
If interested we could provide a different PPA proposal for a separate solar canopy only
proposal, but the price per kWh in the PPA will increase and the install price per watt will also
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be significantly more money, than our original proposal and the system on its
own at 300 kW system will not be large enough for our PPA investor unless it
is also paired with a rooftop(s) system. But bottom line, including solar canopies will increase
your per kWh rate and your install costs significantly.
Solar Canopies are generally more expensive than they are worth for the amount of solar
production and price per kWh (In my personal opinion) vs rooftop systems. We have done
several solar canopies though if you want to check them out, the closest one to Loyola on Devon
at Uncommon Ground is a Windfree Solar Canopy that was funded by ARRA funding. We
have also installed solar canopy/Electric Vehicle Charging Stations at the Evanston Library,
IITs campus, and the Village of Oak Park.
Also-If the goal is to add even more solar production, it may be interesting to also wrap in an
on ground solar farm at the Loyola Retreat and Ecology Campus in Woodstock, IL, as part of
the same price/PPA that we offered. 100 acres is a lot of room for panels, and you could make
this solar system even bigger. Just a thought.
9) How specifically do you calculate projected annual kWh production numbers? What degree/percent
variability or uncertainty is there? Can you please cite examples of past projects (especially those that
are similar in size and location to the Loyola project) with their projected and actual production
numbers?
Inovateus: The kWh are calculated with an industry leading software that takes into account
the last 20 years of weather and makes a prediction on how much electricity is generated.
Once the system is fully engineered we will complete a final report. The final report is
typically within +/- 5% annually of what is produced.
Windfree: a. Check out this website and use these tools. http://pvwatts.nrel.gov/
b. A really cool large scale campus Solar project we did in IL was at McHenry County College,
in Crystal Lake, IL. You can see the real time production since this project went online on a the
systems dashboard here: http://buildingdashboard.net/ igen/#/igen/mchenry. You can see actual
production on the system and year to date since it went live. Windfree installed both a 467 kW
Solar PV system (on the main campus and a 25 kW system on the Shaw campus (and are in
current talks with the campus to expand the Shaw system to a much bigger system). Note-solar
production will always be highest during the summer months and wanes as fall turns into winter.
So the worst months for solar production are November thru March. If you are interested in
touring the campuss solar PV system(s) I could help set that up with their Sustainability
Director, they are a huge fan of Windfree. They are also having a Sustainability Day/Fair this
Sat. from 10am-3pm.
Inovateus Only Questions:
1) There are some concerns regarding a contract for such a long period from a university longterm
planning perspective. What are the impacts if the term of the PPA were reduced to 20 years, 15 years,
10 years? If a reduced term were financially feasible, what happens at the end of the term? (buy out
panels? remove panels? renegotiate PPA or price escalator?)
Inovateus: The impact of a shorter term is more expensive power. The best option is typically
just buying out a longer term contract for fair market value whenever you're ready. We would
turn the system over to Loyola at the end of the contract. It's easier to give you a free system
than to pay to have it removed.
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2) If we were able to find space to increase the size of the installation to over 700w
(another company estimates they can fit 733kW on the space of Halas, Gentile, and Norville) would
that impact the PPA rate at all? Perhaps the initial rate and/or the price escalator would be reduced?
Inovateus: It would be very minimal if any. The size advantages come into play when you
go from 1MW to 5MW. Not really a couple hundred kW here and there.
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Georgetown University
Installed one of the first large (337 kW)
PV arrays in 1982 atop the Bunn
Intercultural Center
The installation prompted critical
environmental thought throughout
classrooms campus-wide, promoting
sustainability in environmental studies
classes, as well as business and law
curricula.
Georgetown Energy (student group) ran the project and established a revolving green loan
fund for future student projects promoting sustainability.
Saint Louis University
In 2015, installed 600 panels (180,000
kWh annual production)
Expected to save the university $650,000
in utility costs over the next 25 years at
$1,083/panel
Paying back Microgrid Solar annually on
an 8 year lease. After 8 years, SLU will
purchase the panels for a nominal amount, and they are fully SLUs.
Cash positive throughout the entire 8 years, yet just breaking even.
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