Chatsworth Water Works Chatsworth Water Works CommissionCommission

Solar ProjectSolar Project

20152015

The Beginning 2012The Beginning 2012

Ways to utilize unused propertyWays to utilize unused property

Save MoneySave Money

Energy ConservationEnergy Conservation

Long Term BenefitLong Term Benefit

Government Government Incentives 30%Incentives 30%

Main Office & W.W Treatment PlantMain Office & W.W Treatment Plant

Site DetailsSite Details

Approximately 38 acresApproximately 38 acresMain Office Hours 8:00am to 4:30pmMain Office Hours 8:00am to 4:30pmMonthly power bill $1,500 to $2,000 per monthMonthly power bill $1,500 to $2,000 per monthW.W Treatment Plant 3 MGDW.W Treatment Plant 3 MGDNormal work hours 7:00am to 4:30pmNormal work hours 7:00am to 4:30pmUnmanned at night and on weekendsUnmanned at night and on weekendsMonthly power bill $12,000 to $13,000 per Monthly power bill $12,000 to $13,000 per monthmonth85% of power consumption during work hours85% of power consumption during work hoursSite is located in the flood plainSite is located in the flood plain

First StepsFirst Steps

Determine if it is financially viable.Determine if it is financially viable.

Determine if the site is viable.Determine if the site is viable.

Contact Georgia Solar Energy Association.Contact Georgia Solar Energy Association.

Set up a meeting with a solar company Set up a meeting with a solar company and toured their plant.and toured their plant.

Meet with engineering firm to get proposals Meet with engineering firm to get proposals and cost estimates.and cost estimates.

Initial FindingsInitial Findings

300 kW for Eton Water Plant300 kW for Eton Water Plant700 kW for Office and W.W Treatment Plant700 kW for Office and W.W Treatment PlantTotal 1,000 kW or 1 MegawattTotal 1,000 kW or 1 MegawattPrice $3.10 per watt total $3.1millionPrice $3.10 per watt total $3.1million 30% Rebate not applicable for municipalities 30% Rebate not applicable for municipalities would have to do a lease/purchase with a private would have to do a lease/purchase with a private firm. firm. Projected savings of $5.0 million after 25 years Projected savings of $5.0 million after 25 years with 5% power rate increase and with 30% with 5% power rate increase and with 30% rebate and be cash positive after 2 years.rebate and be cash positive after 2 years.

Next StepNext Step

Contacted Jason Bodwell at GEFA about Energy Contacted Jason Bodwell at GEFA about Energy Conservation Loan for Solar.Conservation Loan for Solar.

Contacted Patricia Nardone at Georgia Power Contacted Patricia Nardone at Georgia Power Energy Services after she did a presentation at a Energy Services after she did a presentation at a GAWP Executive Lunch.GAWP Executive Lunch.

Georgia Power Energy Services Department Georgia Power Energy Services Department works with commercial and industrial customers works with commercial and industrial customers on energy saving projects from changing to on energy saving projects from changing to more efficient fixtures, installing generators and more efficient fixtures, installing generators and solar projects.solar projects.

New Findings New Findings It is determined Eton Water Plant was not feasible due It is determined Eton Water Plant was not feasible due to the constant power use over a 24 hour period and to the constant power use over a 24 hour period and flood plain issues. flood plain issues. The Waste Water Plant without the main office was a The Waste Water Plant without the main office was a viable option due to a majority of the power being viable option due to a majority of the power being used during peak solar timesused during peak solar timesSimilar school projects were being installed for around Similar school projects were being installed for around $2.00 per kilowatt$2.00 per kilowattIt was possible to partner with a private investor to It was possible to partner with a private investor to take advantage of the 30% incentivetake advantage of the 30% incentiveUsing actual bills and rate summaries a more Using actual bills and rate summaries a more conservative savings of around $2.0 million over 25 conservative savings of around $2.0 million over 25 years using interest rates from similar projects and years using interest rates from similar projects and becoming cash positive after 5 years. becoming cash positive after 5 years.

Project DelaysProject Delays

Flood plain issues Flood plain issues Financing evaluationsFinancing evaluationsDetermining best way to connect to the Determining best way to connect to the gridgridHow to incorporate main office into the How to incorporate main office into the plan.plan.Determining actual size of the systemDetermining actual size of the systemApplying for Georgia Power solar power Applying for Georgia Power solar power buy back plan.buy back plan.

Moving ForwardMoving ForwardDecided not to challenge new 2010 flood plain elevations Decided not to challenge new 2010 flood plain elevations and install taller racking system.and install taller racking system.Received approval from GEFA for $3,000,000 at 1.3% Received approval from GEFA for $3,000,000 at 1.3% and $300,000 in principal forgiveness.and $300,000 in principal forgiveness.RFP for financing with 30% incentive.RFP for financing with 30% incentive.We would purchase line feeding main office and the We would purchase line feeding main office and the waste water plant and sign a maintenance agreement waste water plant and sign a maintenance agreement with Georgia Power.with Georgia Power.Install primary meter at the main office allowing it to be Install primary meter at the main office allowing it to be connected to solar power.connected to solar power.Determined one mega watt system would be best.Determined one mega watt system would be best.Determined long term pay back for using the power Determined long term pay back for using the power generated would be better than selling back.generated would be better than selling back.

FinancingFinancing

RFP for financing rates ranged from RFP for financing rates ranged from 2.89% to 3.92%. 2.89% to 3.92%.

Project was considered to small by the Project was considered to small by the lenders to consider 30% incentive for a lenders to consider 30% incentive for a lease purchase.lease purchase.

GEFA 1.03% interest rate with $300,000 in GEFA 1.03% interest rate with $300,000 in principal forgiveness. principal forgiveness.

Final NumbersFinal Numbers

RFP for installation had five bidders low bid was 1.85 RFP for installation had five bidders low bid was 1.85 million Inman Solar.million Inman Solar.Engineering cost and purchasing line from Georgia Power Engineering cost and purchasing line from Georgia Power approximately $300,000.approximately $300,000.Anticipated total cost of 2.2 million or $2.20 per watt, with Anticipated total cost of 2.2 million or $2.20 per watt, with $300,000 forgiveness borrow 1.9 million, payments would $300,000 forgiveness borrow 1.9 million, payments would be approximately $8,800 per month.be approximately $8,800 per month.$5,000 annually for Georgia Power to maintain the system.$5,000 annually for Georgia Power to maintain the system.Cash positive first year. Cash positive first year. Approximately 4.0 million savings over 25 years based on Approximately 4.0 million savings over 25 years based on 5% annual power rate increase ( averaged over 8% 5% annual power rate increase ( averaged over 8% annually for last 5 years) does not include buy back for any annually for last 5 years) does not include buy back for any excess power generated and put back on the grid.excess power generated and put back on the grid.

Lessons LearnedLessons Learned

Use a consultant that has experience with solar Use a consultant that has experience with solar projects.projects.

Make sure solar is a good option for your facility.Make sure solar is a good option for your facility.

Understand your power rates and times of Understand your power rates and times of usage.usage.

Be very specific in your RFP when choosing a Be very specific in your RFP when choosing a contractor.contractor.

Hold a Pre-Bid Meeting to ensure all contractors Hold a Pre-Bid Meeting to ensure all contractors understand the requirements.understand the requirements.

Contact InformationContact Information

Stephen Smith- Chatsworth Water Works Stephen Smith- Chatsworth Water Works

706-695-3132 706-695-3132 steves@chatsworthwater.comsteves@chatsworthwater.com

Patricia Nardone- Georgia Power Energy Services Patricia Nardone- Georgia Power Energy Services 770-969-6601 770-969-6601 pnardone@southernco.compnardone@southernco.com

Jason Bodwell- GEFAJason Bodwell- GEFA

404-584-1129 jason@gefa.ga.gov404-584-1129 jason@gefa.ga.gov