Title
Receive a status update on the Solar Facilities Project; and provide direction to staff as appropriate.
Report
RECOMMENDATION:
Receive a status update on the Solar Facilities Project; and provide direction to staff as appropriate.
SUMMARY:
At its November 16, 2017 meeting, the AEE Committee received a status report on the Go Green! Monterey County Work Plan. Staff reported on a potential opportunity to enhance a solar generation project for County facilities. In October, the California Public Utilities Commission (CPUC) reopened the eligibility window for local governments to secure a 10-year grandfathering period in PG&E’s previous Net Energy Metering (NEM 1.0) rate structure program. This NEM 1.0 program provides more “solar-friendly” energy rates to solar photovoltaic (PV) projects than the subsequent Net Energy Metering Program (NEM 2.0).
After thorough analysis of the NEM 1.0 grandfathering extension, staff decided not to move forward on submitting an interconnection application with PG&E before the December 25, 2017 deadline. The decision to forgo this opportunity is mostly due to the short timeframe to submit an interconnection application, as well as to fund and develop a project once the application was approved. At the time staff investigated the CPUC ruling, a funding source had not been identified by the CAO-IGLA office to facilitate consulting fees to design a solar photovoltaic (PV) system and draft the interconnection agreement within the two-month window. Additionally, the County would only have one year to fund and begin implementation of a solar PV project before the interconnection agreement would expire. Alternatively, a Power Purchase Agreement (PPA), which would not require up-front capital costs, would carry a high level of risk and uncertainty for the long-term economics of the project.
Go Green! Program staff will continue to investigate potential solar PV opportunities to offset County utility costs. Although the NEM 1.0 program will no longer be available to the County, future opportunities that combine solar and battery technology are likely to become more available and economical. Additionally, future solar programs and/or solar incentives are anticipated to be developed by Monterey Bay Community Power, which could provide enhanced economics by providing better offset credits and/or solar buy-back rates.
OTHER AGENCY INVOLVEMENT:
CAO-IGLA staff held discussion on solar the NEM 1.0 grandfathering extension with staff from the Resource Management Agency.
FINANCING:
Staff costs for the Go Green! Program are provided in the approved FY 2017-18 budget for the CAO-IGLA division. Future funding for a County facilities solar project has not been identified. The recommended action has no impact upon the County General Fund.
Prepared by: Approved by:
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Dan Bertoldi, |
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Nicholas E. Chiulos |
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Sustainability Coordinator |
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Assistant County Administrative Officer |