Water Recycling : Challenges & Opportunities

Solar Economics: Good for some, bad for others. Get the facts right and filter the spin!

Alexander Fortin: Whitley, Burchett and Associates

ABSTRACT:

Energy issues in California have been in the news media, legislative initiatives, scientific discourse, and public discussions. These issues have evolved in response to the rising prices of energy supplies and now also in response to the emissions of green house gases. Constituents and agencies throughout California are increasingly concerned with the impacts of green house gas emissions on our society and the world.

California is leading the country in this effort to reduce green house gases. Our representatives have banned the construction of future coal power plants, and have passed legislation to include incentives for the implementation of renewable energy projects that can serve residents, commercial, industrial customers and governmental agencies. Solar energy is one of the most talked about renewable energy sources. The number of solar projects continues to expand but financial support in the form of state and federal incentives is declining.

Implementation of solar photovoltaic projects in water and wastewater treatment plants has increased significantly in the last few years in the State of California. Several factors play a role in the decision making process for determining whether an agency should or should not implement solar projects in their facility. Because carbon credit markets are still undervalued, the main drive for a public agency to install solar energy on its facility is the cost effectiveness and savings of such project.

This presentation delineates the economic and institutional advantages and disadvantages of two financing options for solar photovoltaic projects: Power Purchase Agreement with third part financing (a third party buys and installs the equipment and sells the power to the agency that agrees with the terms) and the agency buying the equipment itself (so called Self Finance).

This presentation will present the information about current electrical energy pricing schedules, power price history and assumptions that are involved in a solar power project so that attendees will have a different perspective compared to the sales presentations made by solar installation companies. We will also summarize the current regulatory environment that has allowed California to install many solar projects.

In summary, this presentation will demonstrate how a public agency should approach the evaluation of a solar energy project and possibly avoid making an uninformed economic decision based on perception and imprecise information.