HomeMy WebLinkAboutItem 09City of Lakeville
Administration
Memorandum
To: Mayor and City Council
From: Justin Miller, City Administrator
Date: May 29, 2018
Subject: Solar Subscription Proposals
The City of Lakeville has recently received two proposals to subscribe to solar gardens which
would, in effect, result in all electricity needs at Ames Arenas and roughly half at Hasse Arena
being met through solar production. The electricity generated at these solar gardens would
not directly be used at the arenas, but by subscribing to these solar gardens, they would
generate and allocate enough electricity to offset electric power needs at these two facilities.
Nokomis Partners Proposal
The first proposal provides a fixed $.01/kWh credit for the life of the contract (25 years). This
credit does not fluctuate and results in an estimated savings of $497,120 over the life of the
project, including $21,708 in Year 1. This project (and resulting savings) would not come
online until 2019, but would offer as close to a guaranteed savings as is possible.
US Solar Proposal
This proposal is structured the same as our current arrangement with the solar garden at the
Empire Wastewater Treatment Plant (more on that below). In this structure, the savings to the
City are dependent on increases in the price of electricity. For example, in Year 1 the
assumption is that our bill credit would be $.12515/kWh, while our subscription rate is
$.1249/kWh. The result is a savings of $.0003/kWh, or $450 in year 1. If the price of electricity
increases, the bill credit increases as well. Our savings increase because the subscription rate
of $.1249/kWh remains constant throughout the contract. The US Solar proposal assumes a
2.5% annual increase in electricity prices. Based on these assumptions, the total savings over
25 years would be $1,604,872. This project is planned to come online in 2018 so savings
would be available yet this year.
Recent Experience
In 2015 the City entered into a smaller solar subscription with Cypress Creek that offsets a
small portion of Ames Arena’s electric bill. To date, we have saved $5,475. This is structured
in the same manner as the US Solar proposal.
The policy question in front of the city is whether we want a more steady and predictable
savings rate (Nokomis) or a potentially larger payoff but with more of the savings backloaded
and not as predictable (US Solar). Staff is seeking direction from the City Council on which
proposal (if either) you would like staff to proceed with.
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Community Solar Subscription Proposal
One of the beautiful things about Community Solar is that you now have a choice about how and where
your energy comes from. This document is intended as a guide to help you understand what happens
during each step along the way.
City of Lakeville – Here are Your Savings
Now that your eligibility is determined, and your usage information is in hand we have sized your
subscription. These are the highlights of the proposal:
1¢ per kWh – Savings Rate $21,708 – Estimate Year 1 Savings
25 years – Term length $497,120– Estimate Lifetime Savings
Premise Name(s) Subscription Size % of Annual Usage
Ames Arena 1,262,568 100%
Hasse Arena 616,248 54%
Local. Simple. Certain.
Community solar offers you one of the only ways to reduce
your electricity costs without reducing your consumption,
all while contributing to the development of local energy
infrastructure.
- Local – You can choose where your energy comes from
- Simple – All you must do is sign up
- Certain – Our fixed savings rate means you always save,
no mater if the utility rate goes up or down
About Nokomis Partners
Nokomis Partners is a Minnesota based energy developer whose mission is to accelerate clean, local energy
deployment through equitable partnerships. Our approach is predicated on creating value for all
stakeholders involved in energy development. Through a combination of development and consulting
services we use distributed energy to improve grid reliability and provide value to ratepayers. Our
commitment to you is as a partner from day one.
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Quote Details - Your 25 Year Outlook
Your fixed savings rate is based on the delta between your Xcel Bill Credit Value and Nokomis Partner’
Subscription Rate, per kilowatt-hour generated by your portion of the community solar garden. Below,
shows your Value of Solar bill credit rate and the community garden subscription rate. Also, the
estimated energy that will be generated and your savings tied to it by year for 25 years. With your fixed
savings rate, you only pay for what you save.
Yr
Value of Solar
Bill Credit Rate
($/kWh)
Nokomis
Subscription Rate
($/kWh)
Fixed
Savings rate
($/kWh)
Estimated Solar
Energy Generated
(kWh)
Estimated Savings
Generated
($)
1 0.1033 0.0933 0.01 2,170,829 $21,708
2 0.1057 0.0957 0.01 2,105,704 $21,057
3 0.1081 0.0981 0.01 2,094,850 $20,948
4 0.1107 0.1007 0.01 2,083,996 $20,840
5 0.1132 0.1032 0.01 2,073,141 $20,731
6 0.1159 0.1059 0.01 2,062,287 $20,623
7 0.1185 0.1085 0.01 2,051,433 $20,514
8 0.1213 0.1113 0.01 2,040,579 $20,406
9 0.1241 0.1141 0.01 2,029,725 $20,297
10 0.1270 0.1170 0.01 2,018,871 $20,189
11 0.1299 0.1199 0.01 2,008,017 $20,080
12 0.1329 0.1229 0.01 1,997,162 $19,972
13 0.1360 0.1260 0.01 1,986,308 $19,863
14 0.1392 0.1292 0.01 1,975,454 $19,755
15 0.1424 0.1324 0.01 1,964,600 $19,646
16 0.1457 0.1357 0.01 1,953,746 $19,537
17 0.1491 0.1391 0.01 1,942,892 $19,429
18 0.1526 0.1426 0.01 1,932,038 $19,320
19 0.1561 0.1461 0.01 1,921,183 $19,212
20 0.1597 0.1497 0.01 1,910,329 $19,103
21 0.1634 0.1534 0.01 1,899,475 $18,995
22 0.1672 0.1572 0.01 1,888,621 $18,886
23 0.1711 0.1611 0.01 1,877,767 $18,778
24 0.1751 0.1651 0.01 1,866,913 $18,669
25 0.1791 0.1691 0.01 1,856,059 $18,561 0.01 49,711,979 $497,120
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Assumptions
Please consider the following information when considering this proposal.
1. Proposal Based on the following Xcel electricity usage information provided by the customer
Building Xcel Account # Premise # Annual Usage
Ames Arena 51-4476021-6 302811148 1,262,568
Hasse Arena 51-8034048-5 304058491 1,141,200
City Hall 51-5924102-7 302380131 300,000
Arts Center 51-5924102-7 302992643 170,400
LS #1 51-5924012-7 303119760 130,080
Heritage Center 51-5924102-7 302817965 123,840
2. Savings estimate is based on the number of kilowatt hours the solar garden is projected to
produce. Modeling is performed using PVSYST and a local weather file.
3. System performance is expected to degrade at 0.5% annually based on the solar module's
warranted degradation
4. Savings are realized through a combination of bill credits via your Xcel electricity bill and
subscription payments made to Nokomis.
5. Subscription does not include rights to renewable energy certificates.
6. This proposal is based on projects receiving the 2017 Value of Solar Rate tariff
7. Final subscription size is based on garden availability and location.
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Our Community Solar Gardens
Byllsaby Garden Roberds Garden Cannon Garden
Cannon Falls Area
Goodhue County
Fairbault Area
Rice County
Fairbault Area
Rice County
Project Footprint:
5 Acres, Pollinator Friendly
Project Footprint:
5 Acres, Pollinator Friendly
Project Footprint:
5 Acres, Pollinator Friendly
Garden Size: 1 MW Garden Size: 1 MW Garden Size: 1 MW
Expected Operating Date:
December 2018
Expected Operating Date:
December 2018
Expected Operating Date:
December 2018
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
The Subscription Process
One of the beautiful things about Community Solar is that you now have a choice about how and where
your energy comes from. This document is intended as a guide to help you understand what happens
during each step along the way.
Opportunity
During the opportunity phase we work together to determine your eligible subscription size. These
gardens are part of Xcel’s Solar Rewards*Community program and the rules are largely defined by
Minnesota Statue 216B.1641. Most importantly, you must be a retail electricity customer with Xcel Energy
in Minnesota.
The program further defines a retail customer as an individual person or corporation and clarifies that
affiliates of a legal entity will be treated as the same legal entity for the purposes of subscription with
the exception of government entities. Government entities or public agencies can be considered
separate retail customers of the utility.
Learn more about your status by reviewing the links below.
1. Minnesota State Statute 216B.1641
2. Xcel Subscriber FAQ
3. Guidelines for Government Agencies to Determine Eligible Subdivisions
Once your eligibility is determined the next step is to determine the subscription size you are eligible
for. We do this by looking at your past energy usage. You can subscribe up to 120% of your average
annual usage as determined by the average of your last two years. There are 2 ways to obtain this data.
1. You can give Nokomis permission to access your Xcel usage data by signing a Data Release
Form from Xcel. For a limited time this gives us access to your usage data.
2. We can work together to get this information from your past electricity bills.
With your usage information in hand we can size your subscription. We work with you to determine
which facilities and how much of your electricity usage you want to subscribe. Then we present a
proposal.
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Contracting
Once you are comfortable with the opportunity we move to contracting. There are 2 steps to the
contracting process.
1. General Terms – during this phase we agree to general terms & conditions, identify the facilities
and determine the total amount you want to subscribe. The agreement gives Nokomis exclusive
rights to allocate the portion of your usage you grant us.
2. Garden Assignment – during this phase we finalize the exact community solar gardens you will
be subscribed to and the exact size of your subscription.
To be clear, at the time of allocation we will provide you as many details as we can about each project
including location, size and technology used. However, there are elements of development we often will
not have completed yet, up to and including construction. By contracting on the General Terms we get
the commitment from you we need to finalize the projects and construct.
Learn more about contracting for Community Solar
1. Nokomis Subscriber FAQ – a summary of the most common questions we hear
2. Xcel Subscriber Agency Agreement – defines the three way relationship between
subscriber, Xcel and Nokomis
3. Clean Energy Resources Team Questions for Operators – CERTs is a great organization
that provides public resources to help you get better understand Community Solar
Development
Throughout the Opportunity and Contracting steps Nokomis is hard at work developing Community
Solar Gardens to fill your subscription. From start to finish a Solar Garden takes 12 to 18 months to
develop. Some can take longer depending on local permitting issues and the timing of construction.
We generally begin to talk to subscribers ~6 months ahead of construction. We require no payments
from you until the garden begins operating. However, your commitment to be a subscriber is critical to
the project succeeding. With your commitment and the commitment of the other garden subscribers,
we are able to secure financing and build the projects. With all construction projects there are risks
involved. Throughout the development stage we keep you informed about the status of your projects
and the projected timeline to begin operation.
Operation
This is the most exciting part. Once the gardens get built they go through one last check with Xcel to
confirm everything is safe and operating as expected. We notify you ahead of time and then we turn
the garden on and begin generating electricity from solar. You begin to receive bill credits on your Xcel
bill and we begin billing you for your subscription.
Nokomis Partners | Minneapolis, MN | 612.470.3223 | connect@nokomis.partners
Subscriber Frequently Asked Questions
Who can subscribe to community solar?
Any individual, organization or municipality within Xcel’s service territory in Minnesota.
Why would I subscribe to community solar?
There are many reasons that may be right for you. You save money on your electricity bills,
How is my subscription size calculated?
Your maximum subscription is based on 120% of your last 12 months electricity usage. If you do not have 12 months of
usage a standard calculation is used. Your usage is converted from kilowatt-hours (how electricity is measured) to
kilowatts (how solar panels are rated). You cannot subscribe to more than 40% of a one community solar garden, but
you can subscribe to as many community solar gardens as you want up to your maximum subscription amount.
Who do I contract with?
You contract directly with the Community Solar Garden which is owned and operated by Nokomis Energy
Who bills me?
Nokomis Energy bills you for each kWh of solar your subscription generates.
How do I know how much I save each month?
Your bill will outline how much energy your subscription generates each month.
How long is the contract for?
25 years
Can I cancel or exit the contract early?
Yes. You must give notification of at least 90 days. This provides time to find a new subscriber. If a new subscriber
cannot be found, you must pay the termination fees as detailed in your contract.
What can I tell people about my involvement?
That you are a proud subscriber to community solar! The bill credits you get on your electricity bill are generated by a
community solar garden which you subscribe to. The location of the solar garden. The company that built it and the
community it supports. What you cannot say is that the electricity you use in your building is solar. That’s because part
of the compensation from Xcel is that they pay for the environmental attributes. That’s part of why you save money!
What if I move to a different location?
If you move within the same or adjacent county to the garden location you can take your subscription with you. Your
subscription will be resized based on your new location. If you move out of the service territory you cannot take your
subscription with you and the contract will have to be terminated.
What happens if the bill credits I get from the solar garden are worth more than my total Xcel bill?
When this happens your Xcel bill will actually be negative. You will not have to pay anything to Xcel. If at the end of the
year Xcel owes you money, they will cut you a check for the amount. Xcel will only make a true up payment once a year.
This situation is most likely to happen if you subscribe to more than 100% of your load.
Link to Xcel’s Subscriber FAQ
PR O PR I ET AR Y AN D C O NF I D ENT I AL
B E YO N D T H E RO O F TO P
S U N S C R I P T I O N SM P R O P O S A L :
C I T Y O F L A K E V I L L E
May 2, 2018
P a g e | 2
COVER LETTER
May 2, 2018
Brian Wheeler
Council Member
City of Lakeville
20195 Holyoke Avenue, Lakeville, MN 55044
Dear Council Member Wheeler,
Thank you for the opportunity to present this offsite solar and SunscriptionSM introduction to you and the
Council. After a productive discussion with Council Member Wheeler, we wanted to send this proposal to
bring the rest of the Council and the Mayor up to speed with our offer. We at United States Solar
Corporation (“US Solar”) are thrilled to help the City of Lakeville lock in the significant, long-term savings
opportunity currently available under Minnesota’s community solar program.
This subscription relates to two community solar gardens that are de-risked, meaning they have already
completed the big hurdles of project development. The projects already have land use permits,
Interconnection Agreements with Xcel Energy, and financing. Construction will begin this year. The
community solar gardens are almost fully-subscribed, so we are offering the rest of the capacity
to the City of Lakeville. Our subscriptions are a first come, first served opportunity.
US Solar is a turnkey solar developer and owner/operator. We coordinate all project details – development,
permits, finance, construction, management, insurance, maintenance, and monitoring. The enclosed
proposal includes details about our company, our strategic alliance partners, and our Sunscription proposal.
The US Solar team provides an unparalleled combination of broad experience and strong local roots. Our
team has a proven track record of building and financing distributed solar projects. US Solar has completed
20+ community solar gardens in Minnesota and currently has over 80 gardens under construction or
development in Minnesota. We ensure that each one of our solar projects is built to the highest capital
markets standards in order to maximize the savings available to our subscribers.
Please contact us with any questions, comments, or points of clarification. We look forward to working with
you.
Sincerely,
David Watts – Project Developer
United States Solar Corporation
100 N 6th St, Suite 218C
Minneapolis, MN 55403
w: 612.294.6978 c: 612.859.7575
david.watts@us-solar.com
us-solar.com
This letter is intended solely as a basis for providing indicative pricing and terms and for engaging in further discussion. It does not
evidence any agreement to make an investment or any other binding commitment on the part of US Solar or any other party. Such
investment or other binding commitment will arise only upon the execution of definitive, binding agreements. Any subscriber
transaction would be contingent on prior credit review. US Solar requests that the recipient keep the terms of this letter confidential.
P a g e | 3
SUNSCRIPTIO NSM
SunscriptionSM [suhn-skrip-shuhn] noun
1. a contract with US Solar designed to provide you with significant, long term savings
2. an opportunity to enjoy solar benefits without the planning and logistical hassles of an onsite solar project
3. a way to exercise your new right to choose an alternative energy partner
The Solar*Rewards Community program recently launched in Minnesota is the first scalable community
solar program in the US and has immediately established the country’s smartest solar regime. Schools,
towns, businesses, and nonprofits throughout the Xcel service territory have embraced the opportunity to
fix costs for the long term by “subscribing” to a solar garden and benefitting from cost efficiencies of scale,
while also avoiding the siting, construction, and maintenance complexities of an onsite system. There is no
change or interruption to the way a subscriber receives energy at their facilities before entering a
subscription.
Because subscribers can benefit from projects located offsite but within their county or any adjacent county,
US Solar can develop projects of the ideal scale at ideal sites to deliver the most solar energy at the lowest
cost.
Now, US Solar is offering the City of Lakeville the opportunity to lock in savings for years to come with a
Sunscription Agreement.
How Community Solar and a Sunscription Work
• US Solar builds a local Solar Garden at an ideal offsite location.
• The Solar Garden produces energy that is delivered to Xcel.
• Xcel continues to deliver Subscriber all electricity required onsite.
• Xcel credits Subscriber’s bill for value of Solar Garden energy.
P a g e | 4
EXISTING SUBSCRIBERS
Cities, school districts, universities, businesses, and even residents have signed up with US Solar. As a
small team, we present a fair agreement to minimize back-and-forth negotiating the terms. The following
public entities vetted and signed the agreement we now offer to you.
Cities
• City of St. Cloud
• City of Minneapolis
• City of Annandale
• City of Spring Lake Park
• City of Birchwood Village
• City of Rogers
• City of Robbinsdale
• City of Silver Lake
• City of Chanhassen
• City of Plato
• City of Shafer
• City of Lexington
School Districts
• Becker Schools
• Sartell-St. Stephen Schools
• Watertown-Mayer Public Schools
• Hopkins Schools
• Sibley East Schools
• Orono Schools
• Cannon Falls Area Schools
Other
• University of Minnesota
• Met Council Transit
• Met Council Enviro
Example of a community solar garden
P a g e | 5
OUR PROPOSAL FOR THE CITY OF LAKEVILLE
While we can offer other subscription rate structures, the vast majority of our subscribers prefer the flat-
rate Sunscription. With a flat-rate Sunscription:
• The subscription rate you pay is set below today’s Bill Credit Rate and never changes.
• The Bill Credit Rate you receive is expected to increase significantly.
• The more utility rates increase, the more you save.
• You protect the City of Lakeville from increasing utility rates.
We are offering the City of Lakeville a Sunscription Rate of $0.1249 per kWh on 1,800,000 kWh.
General Service
2018 Bill Credit $0.12515/kWh
Subscription Rate $0.1249/kWh
Please see the next page for a financial analysis, including expected savings.
Project and Timeline
As mentioned in the Cover Letter, these projects
are already de-risked and will begin construction
this year. The projects are almost fully-
subscribed so we are offering the rest of the
subscription capacity, 1,800,000 kWh to the City
of Lakeville.
Our subscriptions are a first come, first served
opportunity.
Project Criteria Off-site Sunscription
Land Use Permits
Interconnection Agreement
Financed
Fully-subscribed Almost
Day-one savings
Savings that increase over time
No upfront cost
No escalator
Low risk
P a g e | 6
FINANCIAL ANALYSIS
With a Sunscription through US Solar, you can expect to save money over time as the Bill Credit rate that
Xcel Energy pays you climbs higher and higher above your flat subscription rate paid to US Solar.
ARR = Applicable Retail Rate
The Applicable Retail Rate (“ARR”) is calculated based on energy rates. According to CERTs, over the last 15 years, Xcel rates have averaged 3.5% growth per year. To calculate expected savings, we made a conservative assumption of 2.5% annual growth in the ARR per year.
Bill Credit Rate = ARR + $0.02
The Bill Credit Rate is equal to the Applicable Retail Rate plus $0.02/kWh. Xcel Energy adds $0.02 to the credit because this is a renewable resource.
Savings/kWh = Bill Credit Rate – Subscription Rate
The difference between the Bill Credit rate and the subscription rate is your savings per kWh. As long as the Bill Credit rate is larger than the subscription rate, you save money.
Savings = Savings/kWh * kWh
Multiply your savings/kWh by the actual subscribed energy, and you get the savings in a given year. If your Sunscription produced 100 kWh, you would receive 100 kWh of Bill Credits, and you would pay 100 kWh of subscription rate. We assume 0.5% annual degradation in subscribed energy due to a slight decrease in production over the lifespan of the system.
Cumulative Savings = Sum of savings across 25 years
Add the expected savings of each year to find the cumulative expected savings from a Sunscription .
Expected Savings
• $1,604,872
• $450 expected savings in year one
• No upfront cost
The table below shows the expected savings the City of Lakeville will achieve based on a Sunscription
size of 1,800,000 kWh. We will work with City administration to confirm that the City of Lakeville uses
enough electricity to be eligible for a subscription of this size.
The more Xcel rates increase, the more the City of Lakeville would save. Here are the expected savings
under various scenarios of what could happen to Xcel rates.
Note: According to Xcel Energy’s current procedure, if bill credits exceed a subscriber’s total bill, those
credits accumulate. Xcel Energy’s procedure is to pay out excess bill credits in February, after credits have
accumulated for 12 months. For an example of how a Bill Credit will appear on your utility bill, please see
Appendix A.
1 2 3 4 5 6-10 11-15 16-20 21-25 TOTAL
1,800,000 1,791,000 1,782,045 1,773,135 1,764,269 8,689,904 8,474,818 8,265,056 8,060,485 42,400,713
0.12515$ 0.12778$ 0.13047$ 0.13324$ 0.13607$ 0.14504$ 0.16147$ 0.18006$ 0.20109$ 0.16275$
(0.1249)$ (0.1249)$ (0.1249)$ (0.1249)$ (0.1249)$ (0.1249) (0.1249) (0.1249) (0.1249) (0.1249)$
0.0003$ 0.0029$ 0.0056$ 0.0083$ 0.0112$ 0.0201$ 0.0366$ 0.0552$ 0.0762$ 0.0379$
450$ 5,156$ 9,932$ 14,779$ 19,700$ 174,976$ 309,893$ 455,868$ 614,119$ 1,604,872$
Years
Subscribed Energy (kWh)
Bill Credit from Xcel ($/kWh)
Subscription Rate to US Solar ($/kWh)
Average Net Value per kWh ($/kWh)
Expected Net Value
0.0%1.0%2.0%2.5%3.0%4.0%5.0%
10,600$ 575,944$ 1,235,039$ 1,604,872$ 2,004,660$ 2,904,624$ 3,958,337$
Rate of Xcel Rate Increase
Total Expected Savings
P a g e | 7
INSIGHT INTO YOUR OF FSITE SOLAR GARDEN
Offsite solar solutions save you the logistical issues of planning, constructing and maintaining a solar
project on your property. However, we can provide you with the same ability to view and monitor the Solar
Garden, as you would expect from an onsite system.
US Solar is designing a customized platform for our Solar Garden subscribers, one of the first platforms
designed specifically to monitor community solar projects. Our online portal will not only provide subscribers
with performance information once systems are up and running, but it will also provide you with status
reports regarding project development and construction.
We can also provide you with customized monitoring portals, allowing you to display information
regarding the Solar Garden performance – energy and environmental – on video monitors or kiosks
anywhere in the company. These customized portals can be tailored to inform and educate your
executives, employees and customers about the performance and benefits of the Solar Gardens you are
supporting.
Optional Added Benefit: Employee Subscriptions
While a Sunscription has long-term, financial benefits for the City of Lakeville, US Solar also has the
potential to provide long-term benefits to its employees. US Solar recently launched a residential
Sunscription product in association with select affinity partners. We would be thrilled to offer an exclusive
period for your employees to subscribe to a Solar Garden for no upfront cost, saving them money and
driving employee engagement and loyalty. Residential subscribers save 20% in year one!
P a g e | 8
FREQUENTLY ASKED QUE STIONS
•A: Subscribing requires no upfront payment whatsoever.
Q: How much does it cost upfront?
•A: Your Sunscription is fully transferrable. You can allocate subscription capacity to a new building of yours within Xcel Energy's service territory, or you can transfer it to another eligible Xcel Energy customer.
Is my Sunscription transferrable?
•A: Our Solar Gardens can produce energy in all seasons and all weather. Solar Garden output will vary from day-to-day and season-to-season, as does your electric usage. Your Solar Garden SunscriptionSM will be sized to account for this variability and designed to greatly reduce, or even eliminate, your utility bill over the course of each year.
Q: What happens in the winter or when it’s rainy?
•A: Solar Garden energy is delivered directly to Xcel’s grid, not your facility. Our Solar Gardens are simply one of the sources feeding the grid, and you will continue to receive 100% of your electricity from Xcel with no interruption of service.
Q: Will my facility be connected to the Solar Garden?
•A: Your historic, annual electricity usage determines the size of your Sunscription SM. This is another advantage –our Solar Garden subscribers receive solar benefits that are not limited by the size and/or quality of their roof.
Q: How will my Solar Garden subscription be sized?
•A: US Solar and its investor partners will receive the tax credit benefits for funding the capital costs of each Solar Garden, lowering the SunscriptionSM rates we are able to offer subscribers.
Q: Are there tax benefits?
•A: Once your assigned Solar Garden begins delivering energy to the grid, you receive bill credits from Xcel Energy and a bill from US Solar for the same amount of kWh. We will notify you as that date approaches and keep you updated along the way.
Q: When do I start seeing bill credit benefits?
P a g e | 9
US SOLAR: EXPERIENCE AND QUALIFICATIONS
Broad Experience: There is no Substitute
US Solar is a turnkey solar developer and owner/operator. We seek to make solar energy accessible with
simple, money-saving, long-term solutions that are as good for our partners as they are for the environment.
US Solar’s management team brings a wealth of solar leadership and expertise from the commodities
divisions of industry-leading firms such as Morgan Stanley and Bear Stearns, as well as the project
development teams of BayWa R.E. and REC Solar.
Community solar development and finance requires a wide range of skills that few solar companies
possess. US Solar is uniquely positioned with deep experience in all facets of this market segment.
Additionally, US Solar draws on a unique set of strategic partnerships. US Solar’s platform is comprised of
best-in-class providers within engineering, procurement, and construction; solar equipment m anufacturing;
energy management; legal services; development; and finance and investment.
Project Development: The US Solar team has extensive experience in solar project development. This,
along with support from our strategic alliance and partners, allows for the delivery of large-scale projects –
on time and within budget.
Community Solar: US Solar has broad experience in the siting, development, and subscription of
community solar projects in Minnesota. Our principals have worked with Fortune 500 companies,
municipalities, public and private schools, and utilities across the country. We have contracted with a
number of large counties, towns, school districts, and corporations in Minnesota for Solar Garden
subscriptions.
Project Finance: Less experienced solar providers frequently underestimate the challenge of financing the
construction and operation of a portfolio of solar projects. US Solar is currently developing and financing
over $150 million of projects in Minnesota, and the US Solar principals hav e raised project capital for
projects and programs with a notional value of over $1 billion.
P a g e | 10
LEADERSHIP TEAM
The US Solar team is truly one of the most experienced teams in Minnesota. Our successful experiences
span across the utility-scale, commercial, and residential markets. At the intersection of successful
experiences and deep alliance partner relationships, US Solar is uniquely positioned to provide the City of
Lakeville with the highest value. Furthermore, our Minneapolis office is comprised of pr ofessionals who
were raised in Minnesota, understand the community, and have been involved in Minnesota community
solar from the very beginning.
Martin Mobley – CEO: Marty started US Solar after forming and leading the Solar Desk at Morgan Stanley
Commodities, where he led the group into the US commercial market (~40MW from ~100 rooftop/ground
mount/parking canopy projects), the US residential market (three separate US residential financing
programs) and the Ontario market (~30MW in from 75+ rooftop projects). Prior to Morgan Stanley, Marty
was an attorney at McDermott, Will & Emery in Washington, DC.
Robert Oden – EVP: As EVP, Rob oversees corporate reporting and manages contract administration for
US Solar's development assets and fleet of operational projects. Rob brings twenty years of experience in
energy and climate markets. He started his career in a principal investment group at Bear Stearns in New
York and Houston and was later in the New York Commercialization group at EcoSecurities, a leading
originator and trader of emission reduction credits. Rob has an AB from Harvard College.
Reed Richerson - COO: As COO of US Solar, Reed is responsible for the development, origination, and
construction of all our projects along with the daily management of the business. Reed brings 10+ years
of solar industry experience where he previously served as the VP of Sales and Business Development for
BayWa r.e. and held various roles for REC Solar. Reed has a BS in Applied Economics from the University
of Minnesota.
Brian Lantz - SVP, Finance: Brian brings over 10 years of solar industry financing experience to US
Solar. As the SVP of Finance, Brian is responsible for all aspects of capital raising and structuring activities.
After beginning his career at a renewa ble energy consulting firm, he held various positions at SunEdison
focusing on the distributed generation market segment where he closed debt and equity financing on over
$750 million of solar projects. He was a member of the core team that successfully la unched TerraForm
Power's IPO and most recently served as the Director of Capital Markets and Structured Finance at
TerraForm prior to joining US Solar. Brian holds a ME in Sustainable Energy Engineering from the
University of Maryland, College Park, and a BS from James Madison University.
NEXT STEPS
We can provide a Sunscription Agreement, which details all aspects of the opportunity. Please contact us
with any questions, comments, or feedback you may have in response to this proposal.
Thank you – we look forward to providing the City of Lakeville with significant, long-term energy savings
through a Sunscription.
P a g e | 11
APPENDIX A: EXAMPLE OF BILL CR EDIT
Xcel has provided Minnesota ratepayers with this example of a Bill Credit (note that it shows a
hypothetical subscriber that is a gas and power customer with Xcel’s Public Service of Colorado
subsidiary, not Northern States Power)