Agenda - 04-07-20; 6-a - Climate Action Tax Recommendations for FY 2019-20

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11 Attachment 2 Questions and Answers on the Recommended FY19-20 Solar for Schools Grant Program: During the discussion of the recommended Solar for Schools Grant Program at the meeting of the Board of County Commissioners on February 4, 2020, Board members asked several questions in preparation for future discussion. Below is a list of those questions and the follow-up responses. When the responses came directly from staff at the Schools,they are labelled as Orange County Schools (OCS) and Chapel Hill Carrboro City Schools (CHCCS). 1. How much solar energy could be generated with $150,000? Based on recent price figures from the National Renewable Energy Laboratory of$1.83 per watt installed (NREL, Q1 2018 Commercial System Benchmark), $150K would buy an 82kW system if it were purchased outright. Using OWASA's solar projects as a current local example, if$150,000 were used as a down-payment in a lease arrangement the system it could purchase would be larger than 180kW. It would not be uncommon for a school facility to have an energy demand of 200kW or larger, so a lease would allow for a solar array to match the energy needs of a facility much more closely. 2. Are there Duke Energy Solar Incentives that apply to this project? Duke Energy will provide up to $75K in incentives for public entities to install solar energy systems >100kW.Assuming these potential projects offset a school's total energy demand,these projects are likely to eligible for that level of incentives (see this fact sheet for more info). That incentive is locked in after the design phase once Duke approves an interconnection agreement, so projects could be designed with a budget of$225,000. Some project money would be spent on design before the incentive was guaranteed, but there could be a clause that would allow the remainder of project funds to be contingent on Duke solar incentive approval. Orange County Schools (OCS) staff said that 7 of their 13 schools receive their electricity from Duke Energy, and that these might therefore make the best candidates while that incentive program is in place (currently through 2021). 3. What are the schools' overall reactions to the recommended FY19-20 Solar for Schools grant program? Staff from both Orange County Schools (OCS) and Chapel Hill Carrboro City Schools (CHCCS) had a similar reaction. Overall they feel this funding is something that they welcome and that they feel confident in their ability to utilize it for the benefit of their facilities and students. School staff are active participants