CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve a Renewable Energy Grant Program award of $50,000 to NEX-NRM/Dukane Precast.
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DEPARTMENT: Electric Utility
SUBMITTED BY: Mark Curran - Electric Director
BOARD/COMMISSION REVIEW:
N/A
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 5.43% 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 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 $368,393 grant dollars in support of 811.53 kW of solar installations and one geothermal project installation (saving 3,810 therms of natural gas per year).
DISCUSSION:
The Electric Utility recommends award of a grant to NEX-NRM/Dukane Precast located at 1807 High Grove Lane. NEX-NRM (Naperville Excavating-Naperville Ready) is the electric customer at 1807 High Grove Lane, while Dukane Precast is a sister company of NEX-NRM and is funding the project. They have requested a grant award of $50,000 to purchase and install a roof-mounted, 300.00 kW AC system comprised of 1,200 photovoltaic (PV) modules and 5 solar inverters, which converts the variable direct current (DC) output of the photovoltaic (PV) solar panels into alternating current (AC) that can be fed into the electrical grid. The solar system is estimated to produce 394,200 kWh annually, approximately $19,870 in energy savings per year. The total project cost is estimated at $782,188 with an estimated payback of 3 years, including projected energy savings, federal tax credits, grants, renewable energy credits, etc. The estimated project time line for the PV panel installation, testing, and commissioning is December 31, 2018 or within 6 months of contract execution. NEX-NRM will have remote monitoring of solar production via a web-based site made available to the Electric Utility. They would be available to discuss the finished project with future project applicants.
FISCAL IMPACT:
Renewable Energy Grant distributions are budgeted in Residential/Renewable Energy, account number 40001400-446114. In 2018, $300,000 is budgeted for grant distribution. The requested award of $50,000 is within budget.