Agenda 05-24-22; 8-e - Community Climate Action Grant (CCAG) FY 2021-22 Project Approval for Chapel Hill Carrboro City Schools “Creating a Solar Future for CHCCS” Application

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4 ORANGE COUNTY NORTH CAROLINA Attachment 1 Community Climate Action Grant Application Summary: "Creating a Solar Future for CHCCS" Chapel Hill-Carrboro City Schools (CHCCS)paid$2,107,228 over the last 12 calendar months for energy across all campuses and supporting facilities, one of the largest energy consumers in Orange County. Electrical consumption makes up nearly 82% of energy expenses with natural gas accounting for the remaining 18%. Total energy consumption equates to 24,838 tons of emitted greenhouse gasses each year. CHCCS is mindful of its role as one of the largest energy consumers and contributors of greenhouse gasses (GHG) in Orange County and seeks to reduce its carbon footprint. CHCCS currently does not lease or own any photovoltaic (PV) arrays that produce meaningful energy. This is an unrealized opportunity to meet sustainability goals, lower operating expenses, and connect with students and the community more fully while engaging with an energy source that is now financially competitive with other means of energy production on a large scale. The lease or purchase of three 100kW PV arrays, located at Chapel Hill High School, East Chapel Hill High School, and Carrboro High School would lead to several primary benefits with many ancillary benefits: 1. Reduction in greenhouse gas emissions (332 tons/yr.) 2. Annual electric energy savings (up to $32,844/yr.) 3. Education and awareness opportunities for students, staff, and community(3,844 students, 400 staff/yr.) Savings from the proposed arrays would contribute to the lease or purchase of additional PV arrays at other viable CHCCS campuses, pending roof condition assessment at each school, thereby compounding energy savings and GHG reductions once operational. Each PV array will be net metered and operate for approximately 25 years. Energy production will offset consumption from Duke Energy Carolinas and Piedmont Electric Cooperative according to their service rate schedules. Lifetime avoided costs due to energy savings are an estimated $651,190 over a 25-year period. This includes an annual 2%performance degradation factor but excludes any utility rate escalation. Duke Energy is offering an incentive up to $75,000 per 100kW array which is scheduled to sunset after 2022. This incentive may apply to both Chapel Hill High School and East Chapel Hill High School locations. Carrboro High School is served and metered by Piedmont Electric Cooperative and does not qualify.