Larry Falkin, Director City of Cincinnati, Office of Environmental Quality September 26, 2012

Overview
 Cincinnati’s Solar Utilization  Solar Power Purchase Agreement  LEED Incentives

Cincinnati’s Solar Utilization
 The City of Cincinnati has:  21 Working Solar PV Systems (totaling 1 mW)  1 Under Construction  3 In Planning or Design (totaling 2.1 mW)  Plus:  Energy Retrofits Completed at 69 Buildings  2 Geothermal Systems  1 Solar Thermal System  2 mW of Hydro Electric Generation

Cincinnati’s Advice
 Do Energy Efficiency First  Demand a Positive Cash Flow  Be Creative – Use All Available Subsidies  Some Sites Work Better Than Others (And Some Don’t Work At All)

Solar Power Purchase Agreements

SPPA Made Simple
 The City:  Allows Use Of Our Roof  Agrees To Buy Electricity From The Roof  The Developer:  Does Everything Else (Builds the system; Owns the system; Maintains the system; Pays for the system; Arranges the financing; Gets the SRECS and other incentives; Takes the risk)

OK, Not Quite So Simple
 What If:  The City Closes the Facility  The Roof Leaks  The Developer Goes Out Of Business  A Tree Shades the Panels  The Panels Fail, And The Developer Doesn’t Fix Them  The Panels Damage The Building  Etc., Etc., Etc.

SPPA Pros and Cons
 Pros  No Upfront Cost  Little Or No Risk  Stable Electric Price  Creates Jobs and Economic Activity  Reduces Carbon Emissions  Reduces Fossil Fuel Usage and Air Pollution  Cons  Complicated Agreement  Long Term Commitment  Not Much Savings  Best for Large Projects

Sample Calculations – 1 mW System
 Constr. Cost  30% Tax Credit  New Mkt Tax Credit  Finance, 20 yrs, 3%

$3,000,000 $ -900,000 $2,100,000 $ -600,000 $1,500,000 $ 120,000/yr debt service

Sample Calculations – 1mW
 1 mW Produces 1000 mWh/year  Electricity @ $.07/kWh  SRECS @ $115/SREC  Total Income

$70,000/yr $115,000/yr $185,000/yr

LEED Incentive
 LEED is a Green Building Rating System  LEED uses a Point System:  Platinum – 52+  Gold – 39+  Silver – 33+  Certified – 26+  Renewable Energy Earns Up To 3 Points

LEED Incentives
 Cincinnati Has The Nation’s Most Generous Incentives

For Green Buildings.  Full 15 Year Property Tax Abatement For LEED Certified Buildings.  Cincinnati is Among The Nation’s Leaders in Green Buildings Per Capita.

Contact Info.
 Larry Falkin, Director  City of Cincinnati, Office of Environmental Quality  Larry.Falkin@cincinnati-oh.gov  513-352-5325