CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve Renewable Energy Grant Program awards of $50,000 to Midwest Sports and Pain Specialist, $50,000 to North Central College, and up to $150,000 to support the community solar installation at the Municipal Center.
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DEPARTMENT: Electric Utility
SUBMITTED BY: Mark Curran, Director of Electric Utility
BOARD/COMMISSION REVIEW:
NA
BACKGROUND:
In 2004, the Naperville City Council approved the Naperville Renewable Energy Program enabling utility customers (both residential and businesses) to make voluntarily monthly payments through their electric bill to support the City’s investment in renewable energy. With a 5.53% participation rate in the program it is among the top 10 green power community programs in the United States according to the National Renewable Energy Laboratory (NREL). The renewable energy for the program is sourced 100% from Illinois-sited renewable energy facilities. The program also provides grants to directly fund local community-based renewable energy projects for all commercial customers who invest in solar, wind, photovoltaic, biomass, and fuel cell technologies projects. The goals of the program are to create opportunities for our community to learn about renewable solutions, support grant projects that measurably increase renewable energy usage and displace fossil fuels, and have projects that can be replicated. Awards include a $50,000 maximum rebate (up to 50% of the applicant’s total cost of the energy improvements and the city rebate award amount and grants from all other sources shall not exceed the total project cost).
The Renewable Energy Grant Program announcement and link to applications are posted on the City’s website and communicated to customers via press releases and social media. Since 2014 the city has approved $167,500 grant dollars in support of 584 kW of solar installation and one geothermal installations (saving 3,810 therms of natural gas per year).
DISCUSSION:
The Electric Utility would like to award two grants and request council’s approval to allow the city to spend up to $150,000 on a community solar installation at the Municipal Center. The first grant would be to Midwest Sports and Pain Specialists located at 1999 Springbrook Square Drive. They have requested a grant award of $50,000 to purchase and install a roof-mounted, 55.90 kW system comprised of 172 photovoltaic (PV) modules. The solar system is estimated to produce 71,051 kWh annually, approximately $7,922 in energy savings per year. The total project cost is estimated at $141,000 with an estimated payback of 7 years, including federal tax credits, grants, renewable energy credits, etc. The estimated project time line for the PV panel installation, testing, and commissioning is November 2017. This practice plans on showing the benefits of solar renewable energy to patients and the community via social media and multimedia streaming in the waiting area.
The second grant award for $50,000 would be to North Central College (NCC) for their Business, Operations, and Maintenance building at 999 E. Chicago Avenue. NCC chose this site for their installation due to: 1) a new roof was recently installed on the building, 2) there are few obstructions of sunlight surrounding the building, and 3) some of the solar panels will be visible to the community as they drive down Chicago Avenue. This grant would be to purchase and install a roof-mounted, 100.16 kW 313 panel photovoltaic solar array. The solar system is estimated at an annual kWh production of 129,615, approximately $11,445 in energy savings per year. The total project cost is estimated at $179,286 with an estimated payback at 15.7 years including federal tax credits, grants, renewable energy credits, etc. The estimated project time line is for all phases of the project to be completed in 8-10 weeks after project award and inception. NCC staff will provide tours, presentations, and project information to organizations and groups in the community who are interested in learning about or installing solar photovoltaic arrays with an energy storage system. Informational display boards will be installed on campus to educate the community and students. Similar information will also be displayed on the College’s sustainability webpage.
The Electric Utility is requesting permission to use up to $150,000 of the fund to install a roof-mounted, 50 kW system comprised of approximately 150 photovoltaic (PV) modules on the Municipal Center roof and develop a community solar education program. This would be done through the RFP process with city staff managing the project. Besides the environmental benefits of solar systems, the city would be able to leverage the educational piece for city residents and students. The city would provide tours and project information to the community members who are interested in learning about or installing solar photovoltaic arrays. Informational display boards will be installed on the building to educate about the benefits of solar energy and similar information will also be displayed on the City’s webpage. This site would also be a tool used in promoting all the renewable programs available to residents through the city. The system would generate approximately $7,000 in annual savings. This amount could be utilized to fund on-going maintenance costs for the proposed Smart Park at City Hall.
FISCAL IMPACT:
The fiscal impact to the Electric Utility of awarding these grants would be a release of funds that were voluntarily paid by customers on their utility bills to support the Renewable Energy program. The balance in the 415 Fund is $1,397,725.