Xcel Energy RDF Proposal - Region Five Development Commission April 1, 2013
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Xcel Energy RDF Proposal
Region Five Development Commission
200 First Street NE, Suite 2
Staples, Minnesota 56479
April 1, 2013
Page 1 of 41
RDF Grant Application: Region Five Development Commission
A. TABLE OF CONTENTS
Table of Contents
I. Scope of Work
Grant Application Form ............................................................................................................. 3
Executive Summary .................................................................................................................. 7
Project Goals ............................................................................................................................. 8
Project Objectives ..................................................................................................................... 9
Performance Measurements ......................................................................................................11
Protections for Xcel Ratepayers ................................................................................................12
Project Schedule .......................................................................................................................13
II. Technical Aspects
Project Description ...................................................................................................................14
Detailed Project Overview ........................................................................................................18
Project Development Details ....................................................................................................24
Electrical Generation ................................................................................................................28
Project Team ............................................................................................................................29
Final Project Reporting .............................................................................................................31
III. Project Benefits
Economic .................................................................................................................................32
Environmental ..........................................................................................................................35
Xcel Energy Ratepayers ............................................................................................................36
Other Benefits – social, educational ..........................................................................................37
IV. Use of Project Funds
Project Budget (Appendix B) ....................................................................................................38
Project Cost Narrative ..............................................................................................................39
Energy Pricing Narrative ..........................................................................................................40
Page 2 of 41
Grant Application Form
Xcel Energy Renewable Development Fund
Energy Production Project
Applicant Information
Name and Title of Applicant: Region Five Development Commission
Mailing Address: 200 First Street NE, Suite 2
Staples, Minnesota 56479
Nature of Business: Local Unit of Government-Economic Development Agency
Contact Person: Cheryal Lee Hills Phone: 218-894-3233
Email: chills@regionfive.org FAX: 218-894-1328
Project Information
Project Title: Regional Schools Solar PV Demonstration
Project Locations:
Leech Lake Tribal College, 6945 NW Little Wolf Rd., Cass Lake, MN 56633
Royalton High School, 120 S. Hawthorne Rd., Royalton, MN 56401
Brainerd High School, 702 S. 5th Street, Brainerd, MN 56401
Forestview Middle School, 12149 Knollwood Dr., Baxter, MN 56425
Pequot Lakes Schools, 6537 Cty Rd 11, Pequot Lakes, MN 56472
Pine River-Backus High School, 401 Murray Ave., Pine River, MN 56474
Pine River-Backus Elementary, 401 Murray Ave., Pine River, MN 56474
Pine River-Backus Commons, 401 Murray Ave., Pine River, MN 56474
Technology Type
Biomass Hydro X Solar PV Solar Thermal/Electric Wind
Funding Request and Project Cost
Total RDF Funding Requested: $1,993,659. Other Funding: $3,870,955.
Total Project Cost: $5,864,614.
RDF Funds requested by year:
1st Year: $1,794,293 2nd Year: $199,366 3rd Year: $0 4th Year: $0 5th Year: $0
Project Capacity
Page 3 of 41
New Project – Nameplate Capacity (kW or MW): 1,493 kilowatts
Refurbishment – Existing Capacity (kW or MW): NA
Incremental Capacity: NA
Projected Project Duration
Construction Start Date: April 1, 2014 Commissioning Date: January 31, 2015
Energy Production
Estimated amount of AC energy (kWh or MWh) to be produced annually for each year of
operation for up to a 15-year power purchase contract length.
Total Energy (kWh)
2014 2,359,077
2015 2,352,000
2016 2,344,944
2017 2,337,909
2018 2,330,895
2019 2,323,902
2020 2,316,931
2021 2,309,980
2022 2,303,050
2023 2,296,141
2024 2,289,252
2025 2,282,385
2026 2,275,538
2027 2,268,711
2028 2,261,905
Please estimate the amount of energy in kWh that will be produced in each month of a
typical year. The sum of the monthly estimates should total the annual estimates above.
Jan 141,545 Feb 162,776 Mar 217,035 Apr 235,908 May 268,935 June 254,780
Page 4 of 41
Jul 254,780 Aug 242,985 Sep 205,240 Oct 169,853 Nov 110,877 Dec 94,363
Please estimate the percent of energy that will be produced on-peak and off-peak in a
typical year. The on-peak period is defined as those hours between 9:00 a.m. and 9:00 p.m.,
Monday through Friday, except the following holidays: New Year’s Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When a
designated holiday falls on a Saturday, the preceding Friday will be designated a holiday. When
a designated holiday falls on a Sunday, the following Monday will be designated a holiday. Off-
Peak is defined as all other hours.
Percent (%) Generated On-Peak: 69.3%
Percent (%) Generated Off-Peak: 30.7%
Energy Pricing Narrative
Energy produced by these systems will be consumed on-site at the eight school sites. An
estimated offset to the customer’s bill is based on 90 percent of an initial rate of 9.0 cents per
kilowatt-hour fixed for the first five years and inflated at 2.5 percent per year.
Energy Pricing
Annual price schedule ($/kWh or $/MWh in 2013 dollars) for each year of operation for up to a
15-year period.
2014 $ .081/kWh
2015 $ .081
2016 $ .081
2017 $ .081
2018 $ .081
2019 $ .092
2020 $ .095
2021 $ .097
2022 $ .099
2023 $ .102
2024 $ .104
2025 $ .107
2026 $ .110
2027 $ .112
2028 $ .115
Page 5 of 41
Please indicate the percent of total energy produced that you plan to sell to Xcel Energy, and the
percent you plan to consume on-site:
Estimated % total energy to be sold to Xcel Energy: 0%
Estimated % total energy to be consumed on-site: 100%
Emission Rates
If the proposed project produces any of the following emissions, please provide emission rates in
pounds per kWh at full load.
PM-10 NA
NOx NA
CO NA
CO2 NA
Pb (lead) NA
Business Type
Number of Employees: 8 Year Established: 1973
How Long Under Current Ownership: continuous from inception
Legal Form or Ownership (check one)
Sole Proprietorship Limited Partnership
General Partnership Corporation
Subchapter S Corp X Other (specify) 501 C3
Page 4 of 5
Project Team
Cheryl Lee Hills R5DC Executive Director 7
Name Title Years with Company
Jason Edens RREAL Managing Director 4
Name Title Years with Company
Jesse Royer RREAL Solar Development Manager 2
Name Title Years with Company
Nikki Larson R5DC Finance Director 5
Name Title Years with Company
Page 6 of 41
Standard Grant Contract Terms and Exceptions
I am authorized to act on behalf of the applicant in this matter and I have received, reviewed and
do hereby accept the Standard Terms and Conditions of the Grant Contract included as Appendix
C of the Xcel Energy Renewable Development Fund RFP except as shown on the Contract
Modification Form enclosed herewith.
R5DC Executive Director March 29, 2013
Signature of Authorized Representative Date
I hereby authorize Xcel Energy to make any inquiries and obtain any financial information
necessary to evaluate my organization’s capability to implement the proposed project. I also
authorize Xcel Energy to make any necessary inquiries to verify the information I have
presented. I also release all necessary information to Xcel Energy.
March 29, 2013
Signature of Authorized Representative Date
I hereby certify that I have read and understand the terms and conditions contained in the Xcel
Energy RFP and that the information contained in this proposal is true, correct and complete to
the best of my knowledge.
March 29, 2013
Signature of Authorized Representative Date
Cheryal Lee Hills R5DC Executive Director
Typed Name Title
C. STATEMENT OF WORK
Executive Summary
Technology. Region Five Development Commission (R5DC) is seeking an RDF grant to install
tenKsolar photovoltaic systems on the roofs of eight public school buildings across the five-
county area of Central Minnesota served by R5DC. This proposal’s eight projects total 1,493
kilowatts of nameplate tenKsolar RAIS Wave equipment on buildings in four public school
districts and at Leech Lake Community College on the Leech Lake Reservation. A
demonstration of energy storage will be done at two of the school sites.
Page 7 of 41
Goals and Approach. This project will be a model in Minnesota for how to cost-effectively
manage multiple projects among several school districts and multiple jurisdictions. Region Five
is served by a variety of utilities including Xcel Energy and Minnesota Power, as well as several
municipal utilities and electric utility cooperatives. R5DC’s well-established capacity for
management of planning and development projects with diverse partners will allow it to develop
a significant amount of solar energy capacity in the region at a cost that will be lower than if
these solar projects were to proceed on an individual basis. The result will be greater leverage of
RDF funds and an increased understanding of how to reduce the overall development costs for
solar energy.
This project will rely heavily on local expertise and capacity for the development of these solar
energy systems in order to create new jobs and strengthen an emerging cluster of solar energy
related businesses in Region Five. The solar projects will be the first major step toward a
regional economic development goal to expand renewable energy capacity in the area and it is
likely to be the catalyst for other energy-related economic development initiatives in the region
including other renewable energy projects and the expansion of local job training programs for
jobs in the solar energy industry.
Costs and Schedule. The total installed cost for the tenKsolar equipment is $3.62 per watt. In
addition, eight Silent Power storage units, each with a capacity of 9.2 kilowatts, will be installed
at a cost of $21,983 each. The budget includes $134,370 for project management of the eight
solar energy installations, as well as the reporting and financial management required for the
RDF grant. Total cost for the project is $5,404,660.
Based on the current schedule for the award of RDF funds, final design, engineering and
procurement will be completed by March 2014 with construction beginning in April.
Completion of all projects is expected by October 2014 with commissioning by year-end.
Unique Features. R5DC and its school district partners are uniquely positioned to cost-
effectively implement a large and highly visible solar energy project that will benefit Minnesota
schools and broadly educate the public about the benefits of solar energy and Minnesota’s
potential for using advanced solar energy technology. The project will be designed, installed and
financed exclusively with resources from Minnesota-based companies and organizations,
advancing regional goals but also contributing to statewide efforts to promote and expand the
renewable energy business sector in the state.
RDF Amount Requested. RDF funding of $1,945,678 is being requested, which represents 36
percent of the total project cost. RDF funds will be requested as a lump sum payment upon
completion of construction of all systems, but prior to final commissioning. The budget includes
$59,720 in contributions from local utilities for installation of the Silent Power energy storage
units.
2. Project Goals: Alignment with RDF Mission
The primary goal for this project is to design, install and commission for interconnection 1,493
kilowatts of nameplate tenKsolar equipment on eight school building sites over a 15-month
timeline within the timeline and budget established for the projects.
Increase market penetration of renewable energy at reasonable costs. RDF funds are being
requested for 36 percent of project which will be a cost-effective demonstration of the latest
Page 8 of 41generation of tenKsolar equipment and the Silent Power energy storage units. It will also be
some of the largest solar energy projects at K-12 school sites in the state. The total project costs
are reasonable for solar energy development in Minnesota and will demonstrate important
applications of Minnesota-based solar energy technologies that will help to bring these
technologies to the market at commercial scale.
Promote expansion of renewable energy projects and companies in Minnesota. All of the
solar modules, energy storage units and most of the related equipment in Region Five’s proposal
will be manufactured in Minnesota. In addition, RREAL, the project developer, is based in
Region Five at Pine River. R5DC itself will gain valuable experience as a solar energy developer
that will allow it to pursue other solar energy projects in the future.
Stimulate research and development into renewable energy technologies. The solar projects
in this proposal will serve as a demonstration of a unique development model by coordinating
eight projects among multiple school districts. It will demonstrate performance characteristics
for latest generation of tenKsolar equipment and field test Silent Power units as a demand
management strategy for the unique time-of-day and seasonal demand curves in school
buildings.
Develop near-commercial and demonstration scale renewable energy projects. These
projects will serve as important models for other K-12 schools in Minnesota that may be
interested in developing their solar energy resources. It will reinforce the market presence of
tenKsolar and Silent Power in Minnesota and increase the capacity of RREAL as a solar energy
developer.
3. Project Objectives
Specific products and deliverables. As the grant applicant and project manager, R5DC will be
responsible for grant products, deliverables and benchmarks during the grant period. R5DC’s
experience with similar state and federal grants will allow it to integrate its past work on metrics
and measurement into its management of RDF-funded activities. As one of its core principles,
R5DC is committed to collection and analysis of effective data and indicators on all projects and
economic development initiatives in ways that will allow it to measure its performance in
meeting the goals of this RDF grant project.
The goals and objectives of this project are to:
• Demonstrate a cost-effective model for increasing market penetration of solar energy
projects among multiple jurisdictions by coordinating development through a regional
agency with development expertise;
• Maximize regional economic development benefits, including new job creation and
business expansion, from a $5,404,660 investment in solar energy capacity;
• Create long-term financial benefits for partner school districts and the region from more
than 50,000 megawatt-hours of electrical power generated over 25 years;
• Use the regional solar energy initiative as a catalyst to identify additional resources to
expand local job training programs in solar energy careers;
• Strengthen and recruit new and existing solar energy businesses and related businesses
such as solar thermal and energy storage the region;
Page 9 of 41• Promote Minnesota-based solar technology companies and strengthen Minnesota-based
businesses that design, finance, construct and operate solar energy systems;
• Broadly educate the public in Region Five about solar energy and the under-utilized
potential for solar energy in Minnesota; and
• Reinforce R5DC’s role as a leader in promoting regional strategies for sustainability and
renewable energy in Minnesota.
PRODUCT: Design and construct all solar energy systems within the project budget and
timeline. METRICS: 1.) Internal weekly project team meeting minutes; 2.) Monthly reporting
during grant period; 3.) Internal financial tracking of sources and uses of funds; 4.) Final project
report. TIMEFRAME: 15 months from beginning of grant period.
PRODUCT: Demonstrate a cost-effective delivery model for regional coordination of multiple
solar energy projects among multiple jurisdictions. METRICS: 1.) Ongoing capture of lessons
learned in project team meetings and monthly grant reporting; 2.) Outside analysis and informal
audit of project costs as a component of final project report; 3.) Development of a strategy for
dissemination of lessons learned to other regional economic development agencies.
TIMEFRAME: During the grant period and for a period of six months thereafter.
PRODUCT: Maximize regional economic development benefits from the investment in solar
energy. METRICS: 1.) Monthly tracking of labor hours, wage rates and procurement and
professional services contracts during the grant period; 2.) One-on-one survey of economic
impact with all major contractors and vendors for final project report. TIMEFRAME: During
the grant period and for a period of six months thereafter.
PRODUCT: Generate long-term financial benefits to area schools and the region. METRICS:
1.) Long-term ownership agreements with schools and revenue sharing from solar power
production; 2.) Annual comparative study of costs of solar production and electric rates for 15
years; 3.) Analysis with utilities of impact on demand charges at solar sites generally and
specifically at sites with energy storage. TIMEFRAME: For a five-year period after completion
of all solar installations.
PRODUCT: Expand regional job training in solar energy. METRICS: 1.) Plan for expanding
the scope of regional training in solar energy; 2.) identification of funding sources and
partnerships for expanded training; 3.) Funds raised for expansion of training programs; 4.)
Marketing plan and targets for students entering training programs, achieving certification, and
levels of solar-related job placement. TIMEFRAME: 12-month period following completion of
grant-funded activities.
PRODUCT: Strengthen regional and Minnesota-based solar energy businesses.
METRICS: 1.) Track employment and annual revenues of current solar businesses; 2.) Evaluate
RDF-leveraged investment as a percentage of total solar energy business activity; 3.) Track new
solar-related business development in the region. TIMEFRAME: During the grant period and
for a period of five years after completion of grant activities.
PRODUCT: Increase public awareness of solar energy. METRICS: 1.) Integration of solar
energy initiatives with R5DC website and tracking of site visits; 2.) Track number of public
meetings, presentations and estimated attendance; 3.) Collection of written materials and news
Page 10 of 41media articles about the solar initiative. TIMEFRAME: During the grant period and for a period
of one year after completion of grant activities.
PRODUCT: Further establish R5DC leadership on renewable energy. METRICS: 1.)
Evaluation as part of Sustainable Communities and Resilient Region plan updates; 2.)
Participation in statewide efforts to build renewable energy business cluster; 3.) Ability to
identify other resources for solar energy development and solar project financing beyond the
grant period. TIMEFRAME: During the grant period and for a period of one year after
completion of the grant activities.
4. Performance Measurements
Minutes of weekly project team meetings. Minutes will be assigned as an R5DC staff
responsibility and posted to the R5DC website. METRIC: Record of completion of all solar
projects on time and within the budget.
Monthly reporting during grant period. Monthly grant progress reports will be assigned to a
contracted grant manager and posted to the R5DC website. METRIC: Record of completion of
all solar projects on time and within the budget.
Monthly tracking of labor hours, wage rates, procurement and professional services
contract. Quarterly reporting on economic impacts will be assigned as an R5DC staff
responsibility and posted to the R5DC website. METRICS: FTE-equivalent job creation directly
leveraged by solar projects for businesses located in Region Five and in Minnesota; business
revenues leveraged by solar projects for businesses in Region Five and in Minnesota.
Quarterly financial reports. Financial reports will be assigned as an R5DC staff responsibility
subject to review and supervision by the RDF project manager. METRIC: Completion of all
solar projects within the project budget.
Audit of project costs. An informal audit and financial review of project costs will be
conducted after completion of the project with assistance from independent, outside experts.
Results will be posted to the R5DC website. METRIC: Lower installed costs per kilowatt of
nameplate solar energy capacity compared with an identified benchmark.
Commissioning of systems. Final commissioning report on all solar project will be managed by
the design-build contractor and submitted for approval to the Project Manager. METRIC:
Operational capacity for all energy systems by April 2015.
Final Project Report. A final project report will be prepared by R5DC within 60 days of
project completion and posted to the R5DC website. METRIC: Completion of the final report
within 60 days of project completion. In addition to the required elements for the final report, it
will include:
• Lessons learned from the project and dissemination plan for lessons learned;
• Strategies for ongoing development of renewable energy in Region Five as part of larger
statewide efforts to promote renewable energy;
• Summary of all meetings and presentations regarding the project; records of all print
and electronic news media reports regarding the project.
Page 11 of 41• A one-on-one survey of all major contractors and vendors on the project regarding
project management and lessons learned.
The final project report will also include analysis and recommendations on the following
deliverables associated with this grant project:
Electric Rate Analysis. Within one year of project completion, R5DC will convene a joint
working group of area utilities and facility managers to evaluate the effects of the solar energy
projects on time-of-day electric use and rates. The focus will include an analysis of the impacts
on demand charges at all sites, but particularly at the sites that deployed utility-activated energy
storage systems. METRIC: Quantifiable impact on demand charges at sites with or without
energy storage.
Regional Training Strategy. Within one year of project completion, R5DC will convene a joint
working group of higher education institutions in Region Five and other workforce development
partners. The focus of the group will be to develop a strategy to enhance workforce development
programs and resources that are focused on renewable energy businesses. METRIC: Regional
strategy among multiple stakeholders and funding targets for ongoing workforce development in
renewable energy fields.
Regional Renewable Energy Strategy. As part of its ongoing Resilient Region and Sustainable
Communities project, R5DC will develop strategies to promote and expand the number of
renewable energy businesses located in Region Five, and develop financing strategies for
ongoing development of renewable energy projects in the region. METRICS: Businesses
retained; new businesses relocating to Region Five; level of solar energy development within the
region.
5. Protections for Xcel Ratepayers.
Region Five is proposing to submit its request for payment of RDF funds as a lump sum at the
end of project construction. This assures that the project will be completed before there is any
expenditure of RDF funds.
Region Five is a well-established economic development agency and has been planning an RDF
grant for six months and has assembled an experienced development team for its proposed RDF
projects. This increases the assurances that this project will be done on time, within the project
schedule and meet all project deliverables.
As a result of regional planning and a consensus strategy to pursue development of renewable
energy projects, R5DC convened a series of informational meetings with school districts and
utility representatives in the summer of 2012. Four school districts and the Leech Lake
Reservation signed Letters of Intent for development of solar energy projects and R5DC
identified the RDF grant program as a potential source of funding.
At the request of R5DC, an initial feasibility assessment of suitable roofs for solar energy was
done by Rural Renewable Energy Alliance (RREAL) in September 2012. The feasibility study
included site visits, an analysis of energy bills, and consultations with school district officials.
Six elementary schools in the region were eliminated from consideration due to small roof areas
and lower electrical usage. Also in September, R5DC assembled a team that began gathering
information for an RDF grant application and began seeking contingent financial commitments
Page 12 of 41for construction financing and equity and debt financing of a major regional solar energy
initiative.
6. Project Schedule
R5DC is proposing to complete its design, construction and commissioning of the eight solar
energy projects within the region over a 15-month period. Based on an estimated January 2014
start to the project, the following major tasks, milestones and deliverables form the basis of that
development schedule:
December 2013 Finalize grant agreement for RDF funds. DELIVERABLE: Signed grant
agreement.
January 2014 Enter into individual development agreements with the four school
districts and Leech Lake. DELIVERABLE: Signed agreements with all
school districts and Leech Lake.
Enter into Design-Build Contractor Agreement. DELIVERABLE: Signed
agreement with selected general contractor.
February 2014 Secure final financing commitments. DELIVERABLE: Signed
agreement committing all necessary project financing
March 2014 Complete final structural analysis and engineering on all eight solar
energy systems. DELIVERABLE: Completed engineering and design
report.
Initiate procurement of equipment from tenKsolar and balance of system
materials. DELIVERABLE: Signed purchase orders for all solar
equipment.
April 2014 Secure all necessary building permits for the eight systems.
DELIVERABLE: All necessary permits in-hand.
Finalize construction schedule for all eight projects.
DELIVERABLE: Approved construction schedule.
July 2014 Initiate procurement of Silent Power energy storage systems.
DELIVERABLE: Signed purchase order for energy storage units
November 2014 Complete construction and interconnection of all solar systems.
DELIVERABLE: Contractor statement of substantial completion.
Complete construction of energy storage systems.
DELIVERABLE: Contractor statement of system completion.
Page 13 of 41November 2014 Submit payment request for RDF funding. DELIVERABLE: Submission
of payment request and all necessary supporting documentation.
February 2015 Complete system commissioning and on-site utility inspections.
DELIVERABLE: Commissioning statement from all utilities.
March 2015 Project close-out and draft of final project report.
DELIVERABLE: Completion of approved final report
II. TECHNICAL ASPECTS
A. PROJECT DESCRIPTION
Technical Issues: Facility Configuration and Production Capacity. The eight solar energy
projects, totaling 1,494 kilowatts, will be allocated among the sites as follows:
Location Nameplate Panels Output
Pequot Lakes High School 269.1kw 1,495 panels 428,931kwh
Pine River-Backus High School 115.2 640 184,063
Pine River-Backus Elementary 138.06 767 221,021
Pine River-Backus Commons 64.8 360 103,984
Forestview Middle-Brainerd 300.6 1,670 465,567
Brainerd High School 312.3 1,735 498,952
Royalton High School 243.18 1,301 373,693
Leech Lake Tribal College 58.52 308 82,866
TOTALS: 1,493.76 8,276 2,359,077
Page 14 of 41Page 15 of 41
Page 16 of 41
In addition, four Silent Power OnDemand Energy Applicance standard base units will be
installed at Brainerd High School, and another four units at Forestview Middle School. The
Silent Power units will be upgraded to 9.2 kilowatt inverters, with a 60 AMP Solar MPPT charge
controller and configuration of all electronics, breakers and other electrical and mechanical items
to be compatible with tenKsolar panels. All solar energy sites will include standard Solar Log
monitoring systems.
The output estimate, based on system nameplate capacity, is for the first full year of production
and is assumed to degrade at a rate of 0.4 percent per year. Layouts showing the configuration of
the system at each school site are attached to his application.
Operational Characteristics. Region Five is proposing to use newly manufactured fifth
generation Titan solar modules that will be released by tenKsolar in April 2014 and are rated at
410 and 440 watts. The redundant cell architecture used in the RAIS® modules enable the
efficient construction of larger modules with corresponding reduced labor hours for installation.
These products when combined with the reflective gain from the reflective panel manufactured
by 3M Company make the tenK models some of the most powerful production modules offered
in the industry. Standard Solar Long monitoring systems will be included at each school site.
Demonstration of the Silent Power OnDemand Energy Appliance storage system will be
incorporated at two school sites.
Operation and Maintenance of the systems during the period of the capital lease will be the
responsibility of the limited liability corporation that is set up for this project. It is likely that this
O & M work will be contracted to a third party, and R5DC will seek an experienced contractor
for that purpose from businesses located in Region Five.
Page 17 of 41B. DETAILED PROJECT OVERVIEW
Major Equipment Technology. tenKsolar has been selling its new generation of solar
technology for the past five years. At the core of this technology is the proprietary RAIS-WAVE
module architecture (Redundant Array of Integrating Solar), where cells in each module are
interconnected in a mesh rather than series. When combined with a unique digital control
algorithm and embedded low-voltage redundant electronics that were also developed by tenK,
the module virtually eliminates serial constraints present in other conventional solar modules.
To extend redundancy from the modules to the grid, and take full advantage of the proprietary
control methods, a simplified conversion process is used to create grid-quality alternating current
(AC). A proprietary stepped-pulse transformer (SPT) technology uses a simplified set of
automotive-grade, low-voltage electronics to step-pulse the energy into a solid-state transformer.
Unlike conventional inverters, no active electronics are exposed to grid-level voltages,
improving up-time performance and reducing operating and maintenance costs. The technology
also uses fully embedded, anti-islanding controls that have been third-party validated and
certified in most international solar markets.
Because of the controls residing in the electronics, tenK is able to interconnect the SPTs in
parallel, allowing the AC conversion process to operate redundantly. If one fails, the energy that
would normally be lost flows to another SPT. At times of low solar radiation, a reduced number
of SPT’s still operate to improve overall system efficiency. As a result, each tenK solar
installation delivers full, 480-volt AC grid-quality power directly from the array.
Within the array, the maximum voltage is 57 volts DC in comparison to conventional arrays at
600-1000 volts, and each module has full, built-in ground-fault and arc-fault protection. The
modules are intelligent, and can sense an active connection. In case of a fire, de-activating the
system from the grid anywhere on the AC side causes the modules to stop internally, avoiding
safety issues for firefighters and first-responders. These same safety and embedded assembly
features also greatly simplify the installation process.
The RAIS-WAVE module control technology and stepped-pulse transformer technology are
ideal configurations for integrating energy storage directly into the system without requiring
additional electronics or infrastructure. The modules deliver a controlled voltage to the storage
and SPTs in parallel, and the SPTs operate bi-directionally. That means energy can be exported
to the grid, as well as imported for recharging the storage system in the absence of sunlight. Due
to the system’s phasing control, this system can also be used to actively balance phases.
Beyond the improvements in reliability from eliminating all of the single points of failure and the
high-voltage active electrical components in conventional solar arrays, tenKsolar panels take
advantage of cell independence within the module to add illumination from static reflection. A
proprietary spectroscopic reflector-based racking system developed by tenK and 3M gathers
additional light from the unused gaps in typical solar arrays to greatly increase the energy
delivered by the system. This results in a much higher level of energy density for the system as a
whole.
The solar industry contends that higher cost and lower efficiency are often the result of low-
voltage systems. However with its systems design and integration, tenK is able to manufacture
and sell its product at competitive pricing versus other low-cost vendors in the industry. The non-
Page 18 of 41reflected efficiency of a tenK system is at or above conventional systems when just
environmental losses in the system are considered. When including the energy gain from
reflection, the efficiency of a tenK system is 20-40 percent higher than a conventional system, an
outcome that has been extensively validated against other commercially deployed systems in
comparisons with operating tenK systems.
The RAIS-WAVE modules are certified by third-party agencies to all of the applicable
standards, including UL1703 and UL1741, and the stepped-pulse transformers are also certified
to UL1741 and other standards.
Cost or Market Barriers. For the latest generation of tenKsolar solar equipment, the advanced
performance projected for the 410- and 440-volt Titan solar modules and its integrated solar
equipment package has not been extensively tested in the field at larger scale. Verification of
data from the field will be useful in establishing the cost-effectiveness and market positioning of
this advanced solar technology.
Although total project costs for the solar energy portion of these eight school projects will be at
or below typical costs for projects in Minnesota, at $3.62/watt of nameplate capacity, costs are
still about 10-15 percent above the level that will be competitive with other sources of
generation. So while the cost-per-watt of these systems compares favorably with the installed
costs for other solar technologies and earlier projects using tenKsolar technology in Minnesota,
further efficiencies in the delivered cost of the systems needs to be achieved.
The pricing of the tenK package is competitive with equipment costs on other projects around
the country, particularly when cost-effectiveness is measured in terms of kilowatt-hours that
accounts for the greater power output from tenK systems and when costs are calculated as
lifecycle costs of the electrical power generated over 15 years or more.
Some of this cost differential may be due to relatively less experience on the part of local
development and installer teams in Minnesota, particularly for large-scale solar projects.
Reductions in solar equipment costs need to be matched by savings in other development costs
that go into the total project cost of a solar energy project: direct labor for assembly, electrical
inter-connection, balance-of-system materials and labor, miscellaneous expenses for permits,
equipment rental, freight, structural analysis, etc., as well as costs for project management of
system design, installation and commissioning. These RDF projects will measure and track
some of the strategies for the efficient construction of solar energy systems at larger scale and
will model an innovative delivery mechanism across multiple projects that can achieve greater
cost efficiencies.
Region Five has extensive experience with project management and a commitment to metrics
and data collection that will be applied in this case to understanding the detailed cost elements
that go into the total project cost of a solar project. As noted in the deliverables, a specific
product of this project will be a detailed analysis of development project costs. This analysis and
recommendations for further efficiencies will be included in the final report on solar energy
development projects at this scale using this type of development approach.
This project also includes demonstrations of the Silent Power energy storage systems at two
school sites in Brainerd and Baxter. Many school sites have unique weekday demand curves
with electrical use peaks from about 10 a.m. to 1 p.m. as food preparation, service and clean-up
activities use many electrical appliances that are otherwise not in use. At the same time, school
Page 19 of 41buildings are often used much less during summer months when most utilities experience their
greatest seasonal demand for electrical power.
The installation of large-scale solar energy systems on school buildings, combined with
demonstrations of energy storage at two sites, will be specifically evaluated for its ability to
reduce relatively high demand charges that are typical of the monthly electric bills for school
buildings---even during non-summer months. Brainerd Public Utilities, the utility serving
Brainerd High School, has agreed to consider a financial contribution for the installation of
energy storage and also participate in the design and evaluation of the impact of the solar panels
and energy storage on demand curves in school buildings.
Integrating the latest generation of tenKsolar panels with the Silent Power energy storage
systems, however, will not be without its technical challenges. These issues include the higher
costs for inverters when using Silent Power energy storage and other potential energy losses
from the integration of the two systems. The conversion of energy from DC to AC at the array,
then from AC to DC for battery storage, and finally back to AC for interconnection to the grid
has system losses at each stage. The distance from output at the solar array to the storage system
can also result in significant and highly variable costs to implement energy storage.
Silent Power, which is itself headquartered in Baxter, is committed to being on-site for the
installations of its systems and working side-by-side with tenKsolar and the installation team to
identify and address these technical barriers. Resolving some of the technical issues in
integrating tenKsolar equipment with Silent Power energy storage will significantly advance
Silent Power’s entry into the broader market for energy storage.
3. Current Level of Commercial Use
Operational experience to-date. tenKsolar solar equipment has been marketed and sold for
five years in domestic and international markets. The tenKsolar equipment package is primarily
manufactured at its facility in Bloomington, Minnesota and previous generations of its
equipment have been installed at numerous sites. In Minnesota specifically, tenKsolar
equipment has been used in about 140 projects, totaling 2.2 megawatts with projects in progress
raising that aggregate total to 4.0 megawatts by the end of 2013.
The fifth generation of tenKsolar equipment, the larger “Titan” panels rated at 410- and 440-watt
capacities, has just been released and has not been in broad commercial use. However, tests of
the panels were conducted at the National Renewable Energy Lab (NREL) in Golden, Colorado
and at a Duke Energy test facility outside of Charlotte, North Carolina. Those tests included
direct comparisons of output with other solar technologies and an analysis of panels placed off-
azimuth to shift output to peak periods. Overall, output in these tests was 20-30 higher for
tenKsolar equipment compared to conventional systems, and 21 percent higher in an off-
azimuth positioning of tenKsolar modules that were able to produce 60 percent of their DC
power rating at 6 p.m.
Technical aspects not commercially proven. The tenKsolar equipment package is primarily
manufactured at its facility in Bloomington, Minnesota and previous generations of its
equipment have been installed at numerous sites. The newer form of 410-watt panels, the latest
generation of tenK equipment, needs to test cost-effectiveness and functionality at a commercial
scale on a number of key points:
Page 20 of 41• Best-in-class density of energy production of 190 kilowatt-hours or more of annual
production on average for each square meter of panel area, sustained over at least a three-
year period of time. This target output was tested for a small array at the National
Renewable Energy Laboratory (NREL) in Colorado in 2012 but has not yet been
established at larger scale and in Minnesota conditions.
• Using the latest feature of distributed storage within the arrays, successfully limit the
change rate of output from grid-activated PV panels to no more than 4 percent of
nameplate capacity within ten second intervals and 8 percent of output within one-minute
intervals over the course of an entire year. This “active buffering” principal was tested
on a small array but has also not been tested at larger scale.
• Fire and electrical safety compliance with the NEC 690.12 standard without bolt-on
switches and while connected to existing electrical sub-panels within a large commercial-
institutional building. NEC 690.12 requires all wiring within the array to drop to no more
than 80 volts within 10 seconds of system disconnection from the grid.
• Covering early-morning and late-day peaks by adding some amount of energy storage to
the system, without adding significantly greater costs associated with robust energy
storage technologies. The RAIS-WAVE system can include energy storage of varying
amounts without extra components with its bi-directional stepped-pulse transformer
topology.
Evidence of technical performance and reliability. In 2012, a tenKsolar RAIS-WAVE
photovoltaic system was installed as south and southwest facing test arrays in Charlotte, NC.
The System Advisory Model (SAM) based on the TRNSYS5 computational engine from the
University of Wisconsin-Madison was used to predict energy performance. Energy shifts were
also observed and the model was used to illustrate the effectiveness of integrating the proprietary
energy storage device directly into the array.
Energy Production Modeling. The RAIS-WAVE system of an integrated module, reflection,
and unique electrical topology is generally placed in an orientation consistent with conventional
solar arrays. In northern climates, the system uses a 45-degree tilt. A spectroscopically selective
reflector is placed opposite each of the interior PV modules facing north, at a 32-degree tilt.
Spectrally filtered light that would normally fall in the gaps between the rows is used to boost
total illumination on the module surface. Due to the unique properties of the cell’s electrical
topology, highly non-uniform illumination from a static reflective surface is acceptable to the
module. SAM was used as the basic modeling system with a reference system operating at
NREL and a TMY weather file for Charlotte to validate the SAM modeling for a system facing
directly south. To account for reflected illumination, the altitude-by-azimuth table of SAM was
modified to account for the direct beam effects of the reflectors and shifted to align to the array.
Measurement System. Two 9.72 kilowatt tenKsolar RAIS-WAVE systems were installed at a
Duke Energy facility near Charlotte, NC in May 2012. As noted, each module within the system
operates independently and self-records power-on hours (POH), accumulated energy and other
information. One array was installed directly south facing and one array was installed facing 70-
degrees southwest to optimize time-of-day energy production. In this analysis, only the reflected
rows were considered and modules on the south side of each array, without reflectors, were not
included in the analysis.
South-Facing Results. AC output for the south facing array was measured on July 29 and
December 1, 2012, and normalized to the rated peak DC output of the system. The data was
Page 21 of 41compared with modeled SAM results for a representative day, both for the RAIS-WAVE array
and a conventional system with a 10-degree module tilt. There was general agreement in the
shape of the July output curves of the two systems, with a small offset that was likely due to
weather differences versus actual conditions. However, due to the inability to add reflected
illumination, losses due to temperature, alignment losses and DC-to-AC losses, there was
significantly lower production for the conventional system. The December data also showed
good agreement in shape and magnitude between the systems but lower production overall for
conventional panels.
Southwest-Facing Array Results. Data on the same days, using the same weather file and
reference days, was measured for the southwest-facing array and compared with the predicted
SAM output. There was a unique shape and character to the two curves, and close agreement in
both the shape and magnitude on the days. Included for reference was a conventional 10-degree
tilt system both facing south and at 250 degrees, where the low tilt modeled a limited effect from
rotating the system. A higher tilt conventional system could be considered but the physical space
required to optimize for late-day sun angles would be much greater. Data for the RAIS and
conventional systems found reductions in total energy produced through the day for systems
turned significantly away from south.
At 6:00 pm in Charlotte on July 29, both the south-facing RAIS-WAVE array and the
conventional systems were delivering AC power at 25 percent of the DC rated power. The
southwest-facing conventional system improved the 6:00 pm AC performance to 32 percent of
the DC rated power. In contrast, the southwest-facing RAIS-WAVE system was delivering AC
power at nearly 60 percent of its DC rated power.
Module-to-Module Performance. Because of its unique module architecture, RAIS-WAVE
performance and variations within the array could be tracked over the period of time of the study
(June 7 to November 30, 2012) for power-on hours, energy production and other salient
variables. Data was read directly from the system using a proprietary digital power-line
communication feature or the binary digital information feed from the proprietary LED device
on the front of each module. The POH was 2,022 hours for the south-facing array and 2,004
hours for the southwest-facing array due to a slightly later start for these modules. The south
facing modules produced 850 hours of energy versus 700 hours for the southwest facing array, a
reduction of 21.4 percent in total energy produced.
It was also possible to assess the variation of energy production performance of each module
during operation. The south-facing array had a 2.1 percent standard deviation over the mean,
including all factors such as the variance of each module as produced, variations in illumination
on the module surface (both direct and reflected for interior and exterior modules), thermal
operating differences, etc. For the southwest facing array, the predicted AC energy was within 3
percent of the measured energy over this time period. The predicted DC energy is within 3
percent of actual DC energy as well, both measured at the DC-to-AC conversion point and also
measured as an accumulation of all modules.
Contribution to Market Readiness. Developing several large-scale solar energy installations at
multiple school sites will contribute to market data that will increase the market readiness of the
next generation of tenKsolar equipment. Region Five and RREAL will work closely as a
development team with tenKsolar to design and implement solar energy projects and develop
appropriate performance metrics that are most likely to advance the market readiness of the
tenKsolar technology.
Page 22 of 41As a demonstration of energy storage, eight Silent Power OnDemand energy appliances will be
installed under field-test conditions in the immediate area of the Silent Power headquarters. The
goal is to significantly advance this company’s ability to identify its priority markets, refine its
technology offerings, and broaden its appeal in the market for energy storage systems.
Eight large-scale solar energy installations, and Region Five’s unique proposal for a “master
developer” coordination role across eight projects and five local jurisdictions, will be subject to a
robust analysis of total project costs. The result will be much greater understanding of where
greater efficiencies can be found in the development of solar energy in Minnesota. As an
industry and as individual companies involved in the solar energy business, there is a goal to
reduce the total costs for installation of large solar energy systems by an additional 10-15 percent
per watt, below a target price for in stallations of $3 per watt. At that level, solar energy will be
cost-competitive with other sources of power generation in many circumstances and in multiple
applications of the technology.
Page 23 of 41Location.
C. Project Development Details
Ownership, Third-Party Agreements. All of the solar projects will be owned by the school
districts but will be subject to longterm capital leases with a project-specific limited liability
corporation that is controlled by Region Five and its tax equity partner. This structure will
facilitate the ability of the projects to access substantial federal tax incentives for solar energy---
federal support that would otherwise not be available to public school districts as non-taxpaying
entities. This ownership structure will allow Region Five to maximize its leverage of RDF grant
funds with $2,627,746 in federal tax benefits that represents 48.6 percent of total funding for the
project.
After the minimum five-year holding period required by the Internal Revenue Service for
renewable energy assets subject to the Investment Tax Credit for solar energy, each school
district will have an option to buy-out the solar energy system capital leases at the fair market
value and thereafter operate the solar energy systems on their rooftops with no further lease
payments. This fair market value sale, which is required by IRS rules, will be based on the net
present value of the energy system’s projected energy production over the next five years. At
this point, the systems will continue to generate electrical power for the school districts for at
least another 20 years, generating about $3 million in economic benefits to the school districts
over the lifecycle of solar system performance in the form of reduced electrical costs.
Page 24 of 41During at least the first five years of energy system operation, the project specific LLC as
leaseholder will be responsible for all operation and maintenance of the solar equipment. The
LLC will also be required to guarantee the energy performance of the systems as a design-build
contractor under the state’s energy savings guarantee contracting rules It is likely that O & M
functions will be conducted by a third party under contract to Region Five and its LLC. In the
event school districts elect to exercise their option to buy-out the systems, a school district may
continue the third party contracting of operation and maintenance or take on this responsibility
with its own facilities staff, who will be trained in how to conduct all routine maintenance and
inspection work.
Site Control. The public school districts and Leech Lake Tribe have site control and own all of
the facilities and the rooftops that have been identified for this project. Letters of Intent entered
into between all of these jurisdictions and R5DC have been included as addenda and evidence
the willingness of these project partners to use their roof areas for installation of the solar energy
systems.
Licensing and Permitting. The only permits that will be required for these roof-mounted
systems are building and electrical permits which will be secured from each local jurisdiction in
which the school building is located. Although most of the local jurisdictions have not adopted
solar-specific provisions in their building code, all solar system layouts include at least a 10-foot
setback from the roof parapet. RREAL will be responsible for making application and securing
all of the necessary building permits, which has been included as a benchmark activity on the
project schedule.
Resource Assessment. The first-year annual production for these solar energy systems was
calculated on a site-specific basis by RREAL using the National Renewable Energy Laboratory’s
(NREL) System Advisory Model (SAM) performance tool. This tool allows for consideration of
the reflectance factor that is an integral element of the tenKsolar equipment package. The
following table includes the site-specific estimates for each system. A breakdown of this
production by month for each site is included as an attachment to this application.
Location Nameplate Panels Output
Pequot Lakes High School 269.1kw 1,495 panels 428,931kwh
Pine River-Backus High School 115.2 640 184,063
Pine River-Backus Elementary 138.06 767 221,021
Pine River-Backus Commons 64.8 360 103,984
Forestview Middle-Brainerd 300.6 1,670 465,567
Brainerd High School 312.3 1,735 498,952
Royalton High School 243.18 1,301 373,693
Leech Lake Tribal College 58.52 308 82,866
TOTALS 1,493.76 8,276 2,359,077
To substantiate the use of the SAM performance tool, a reference tenKsolar RAIS-WAVE
ground-mount array consisting of 10 180-watt modules was installed by the staff at NREL’s
Golden, CO test facility in March, 2012. The arrays consisted of five front row modules at a 45-
degree tilt not receiving reflected illumination, and five rear modules also at a 45-degree tilt
which were receiving reflected illumination from spectroscopic reflectors oriented at 32 degrees
from horizontal and facing north. The system’s DC and AC production was measured using an
independent data collection system recording at one minute intervals, concurrent with electrical
Page 25 of 41currents and temperatures of select modules. Various irradiance measurements including ground
horizontal irradiance (GHI), plane of array POA), ambient temperatures and wind measurements
were also made.
The reference conventional flat plate array for comparison purposes was a pole-mounted, 40-
degree tilt system consisting of 6, 210-watt conventional modules operating with a string
inverter. The system DC and AC production of the conventional array was also measured over
the same time period, and included the POA irradiance.
Energy production in kWH was normalized to 1800-watt DC nameplate capacity from the
tenKsolar array for selected dates in the period from March to June, 2012, and calculated as the
total system AC production of all 10 tenK modules, including panels with and without
reflectance. This was compared to the AC energy production from the conventional system in
kWH normalized to the nameplate rating of 1260-watt DC over the same time period.
Due to the level of integration into the module, the DC to AC loss in the RAIS-WAVE array was
from: DC wiring loss of less than one percent, inverter efficiency rating of 96 percent, and any
AC wiring loss. There were no other module related losses, matching losses, within-module
losses, nameplate, diode or interconnection losses, etc. Non-uniform soiling losses were also
greatly minimized due to the cell interconnection architecture. This resulted in a very high DC-
to-AC efficiency of over 96 percent, compared to the more typical value of 88-90 percent for the
conventional array.
Because the RAIS-WAVE ground mount system was a small array and each module operates
independently, individual modules were also instrumented and measured for power in order to
validate the power under each condition within the array, including five non-reflected front row
modules, and three reflected modules in the back row which received reflected light through the
entire day. Due to sharing of reflection between modules before and after solar noon, there were
also two reflected modules on the outer edges that received only a portion of reflected light
through the day. In a typical 100 kW configuration, there would be minimal front and row edge
modules in comparison to interior reflected rows, so reflected row production from the study
would be most typical.
On this basis, the NREL found that the equivalent hours of energy production of this
configuration of tenK panels was 243.4 hours of AC energy, or 27.2% more than the 191.3 hours
produced by the conventional pole mounted array over this time period.
On March 30, the reflected modules produced AC energy equal to 108 percent of nameplate
compared to the conventional system producing 87 percent of nameplate, or a gain of 24 percent.
On May 4, the reflection gain was higher due to the higher sun angle, and an ambient
temperature that day that was similar to March 30. Again the reflected modules produced 110
percent of nameplate compared to the conventional array production of 83 percent of nameplate,
or a gain of 32 percent. On June 9, the ambient temperature was higher, and the AC energy
produced by the reflected modules dropped to 100 percent of nameplate, compared to 79 percent
of conventional nameplate, or a gain of 27 percent.
Finally, the performance ratio based on the POA irradiance values on each module configuration
was calculated, using the DC rated nameplate values to compute the module efficiency for each
type. The performance ratio for the conventional array was 77 percent, typical of a conventional
high profile pole mounted array with superior cooling properties. For the RAIS-WAVE front
modules without reflectance the performance ratio was 82 percent due to the improved electrical
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