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

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13 Solar panels have a 25 year life expectancy, and the leasing company often only owns the panels for the first 5-10 years.The schools have the option to write into the lease agreement that the solar company will manage any repairs and maintenance either during the time the system is owned by the solar company or for the entire life of the panels. After an agreed-upon period of time,the lease agreement should allow the Schools to make one of the following choices: 1.) Purchase the panels at a much reduced cost; 2.) Renegotiate a new lease agreement; 3.)Ask the solar company to remove the panels at no cost. 6. What can the schools expect in terms of lifetime costs if they lease instead of owning their systems? Leasing a solar installation from a private 3rd party entity would allow the schools to take advantage of significant federal tax incentives that are inaccessible to public entities if they were to purchase the system outright. As part of the RFP process, the schools can ask solar companies to run lifecycle cost analyses as part of their bid package.These analyses change from site to site based on various factors including space available,total on-site energy demand, shading, and electricity rates. Running these analyses is a normal part of the RFP bidding process that solar companies are prepared to undertake. Local example - OWASA has gone through an RFP process and is currently designing solar installations at 5 locations through all lease agreements. As a package and based on the terms that they negotiated, their solar installations have a positive net present value within their expected 25-year life (3%discount rate). They expect to break even around year 15 and save more than $200,000 in avoided energy bills over the life of the systems. (See full details in OWASA Agenda Packet from Sept 26, 2019). 7. How do the schools feel about the potential for ground-mounted solar in comparison to a rooftop system? Both OCS and CHCCS staff felt that a ground-mounted solar installation may be possible, but more research will be needed to determine what space is available and best-suited for this purpose. A list of potential rooftop and ground-mount sites can be proposed in the RFP that the schools release and solar companies can provide further feasibility information. 8. What specific school buildings or grounds might be good candidates for a solar installation?