Item 5: RCA- PBI Starwood — original pdf

Backup

..De Posting Language ..Title Approve issuance of a 5-year performance-based incentive to Starwood Capital Group LLC, for the installation of solar electric systems on their facilities shown in the table below, in an amount not to exceed $2,142,861.70. Lead Department Austin Energy Fiscal Note Funding in the amount of $428,572.34 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Prior Council Action: November 30, 2023- Council approved issuance of a 5-year performance-based incentive to Starwood Capital Group LLC. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. February 20, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: Austin Energy requests approval to issue this 5-year performance-based (PBI) to Starwood Capital Group (the Customer) for the installation of solar electric systems, detailed in the table below at their facilities to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits. Solar System Details* Total System Size (kW-DC) Total System Size (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) *Does not include panel and inverter cost Total Incentive ($) Percent of Cost Covered Reduction of Carbon Dioxide (CO2) in tons Reduction of Sulfur Dioxide (SO2) in pounds Reduction of Nitrogen Oxide (NOX) in pounds Equivalency of Vehicle Miles Driven Equivalency of Cars on Austin Roadways Equivalency of Trees Planted Equivalency of Forest Acreage Added 3,139 2,605 4,596,762 $5,044,132.45 $2,142,861.70 42% 2055 2,298 3,218 4,779,133 415 30,826 2,223 Environmental Benefits** and Emission Reduction Equivalencies*** *All solar equipment meets Austin Energy program requirements ** Environmental Benefits based on the US Energy Information Association’s state-wide electricity profile *** According to the Environmental Protection Agency (EPA)’s Greenhouse Gas Equivalency Calculator Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,500 employees. Since its inception in 1991, Starwood Capital Group has raised over $70 billion of capital, and currently has over $120 billion of assets under management. For these projects, Starwood Capital Group has already procured panels and inverters. Details on the 8 individual proposed systems are provided in the tables below. One Proposed Performance-Based Incentive Projects (Under 75 kW AC) Site Address Incentiv e Rate System Cost Austin Energy Incentive Generation kWh/yr System Size kW DC System Size kW AC Offset $0.09 $62,354.25 $42,810.70 82,726 56.18 46.63 6% 12301 Riata Trace Pkwy II Austin, TX, 78727 Site Address 11001 Lakeline Blvd 1 Austin, TX, 78717 11001 Lakeline Blvd 2 Austin, TX, 78717 12365 Riata Trace Pkwy A Austin, TX, 78727 12357 Riata Trace PKWY C Unit 7 Austin, TX, 78727 12357 Riata Trace PKWY A Austin, TX, 78727 12357 Riata Trace Pkwy A Austin, TX, 78727 12331 Riata Trace Pkwy B Austin, TX, 78727 Seven Proposed Performance-Based Incentive Projects (Over 75 kW AC) Incentiv e Rate System Cost Austin Energy Incentive Generation kWh/yr System Size kW DC System Size kW AC Off set $0.09 $0.07 $0.09 $0.09 $0.07 $0.09 $0.09 $84,884 .25 $607,35 8 $26,005 .70 $193,00 1.25 $841,73 2.55 $185,28 1.20 $743,51 6.25 $356,531.63 688,950 468.23 388.63 $538,886.32 1,338,848 909.60 754.97 $324,831.13 627,693 434.42 360.57 $132,690.11 256,406 173.88 144.32 3% $286,982.90 713,001 493.81 409.86 $127,382.62 246,150 166.92 138.54 $332,746.29 642,988 436.03 361.90 39 % 16 % 27 % 63 % 17 % 69 % The purpose of the Austin Energy Solar PV PBI Program is to expand adoption of customer-sited solar by commercial customers. The PBI solar program offers commercial customers payments based on the metered solar production of their approved PV system for the first 5 years of operation. Payments are made as a monthly billing adjustment to the customers’ electric account. Due to the performance-based aspect of the incentive, if the customer fails to generate solar electricity, the rebate will not be fully paid. Per program guidelines, the installation is expected to continue producing for a minimum of 20 years, 15 years beyond the incentive. This project will advance the stated goals of expanding locally sited solar, carbon reduction and resiliency, extend the adoption of solar to entities historically excluded from the investment benefits of solar, and continue to demonstrate the value and importance of renewables as part of the individual and collective generation portfolio in Austin Energy territory.