Proposed Business Case: Public Facility Model

Markham Courthouse

The Circuit Court of Cook County's Sixth Municipal District serves residents of more than 30 towns in the southern suburbs of Cook County. With thousands of residents, employees and others visiting the courthouse daily, the site offers a highly visible and centrally located site for community solar.

This community solar project proposal  combines rooftop arrays and solar carports for a system of 2 MW. The proposed array provides more than 1 GWhs of electricity to the host, offsetting 15 percentof its energy use. It also provides energy to more than 250 low-income households in the surrounding community, allowing them to save more than 50 percent on their electricity rates through this program.

Community Solar

Community solar is a solar photovoltaic (PV) installation that provides energy, financial benefits, or both to multiple participants. Participants, also called Subscribers, can buy or lease a share of the community solar installation and receive credits on their electricity bill for the power generated by that share. Subscribers can be households, businesses or anyone with an electric bill.

System Design

While the site offers significant rooftop space for solar, obstructions and setback requirements made the useable space much smaller. By adding carports, the proposal maximizes the system capacity. This affects the financial model by bringing down the overall IRR because of the additional costs to install carports. Because of the increased capacity, the overall returns, however, are much higher over time for the solar developer, the host site and the subscribers.

Business Model

The business model assumes a developer-owned system. While there will be incentives for public agencies made available through Illinois Solar For All in 2018, the need for upfront capital and the risks associated with customer acquisition and maintenance make a host-owned system less attractive. This model would allow the developer to take advantage of SRECs, incentives and tax benefits, passing incentives to the host site and subscribers, with a moderate return.

Solar Developer/System Owner Metrics

25-Year Costs…………………………………………..   ($6,581,092)

25-Year Revenues……………………………………   $8,015,527

25-Year Net Benefits……………………………….   $1,434,435

25-Year Net Present Value (NPV)……..…….   $57,901

Return On Investment (ROI)……………….….    21.8%

Payback Period……………………………..………..   4.5 years

Internal Rate of Return (IRR)………..………..    8.5%     

SREC Value (1 MW-2 MW Block)…………....    $45.00/MWh

SREC Adder Value-Subscriber Type…….….    $0

SREC Adder Value-100% Low-Income.…...    $4.05/MWh

Host Site Metrics: Leasing and Anchor Subscription

25-Year Costs…………………………………..……..    ($843,871)

25-Year Revenues………………………………..…    $1,385,692

25-Year Net Benefits…………………………..….    $541,821

25-Year Net Present Value (NPV)………..….   $114,851

Upfront Investment/Financing………..………  $0

Average Annual Revenue (25 years)……….    $21,363

SREC Value (1 MW-2 MW Block)…………....    $45.00/MWh

SREC Adder Value-Subscriber Type…….….    $0

SREC Adder Value-100% Low-Income.…...    $4.05/MWh

*All SREC and SREC Adder values are assumptions. See Overview for more details.

Documents

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