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Type:
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Consent
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Status:
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Agenda Ready
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On agenda:
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11/30/2023
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Final action:
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11/30/2023
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Title:
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Approve issuance of a capacity-based incentive to Public Storage Orangeco Inc. for the installation of solar electric systems on 20 of its facilities in the Austin Energy service territory, in an amount not to exceed $388,776 and approve issuance of a five-year performance-based incentive to Public Storage Orangeco Inc., in a total amount not to exceed $1,024,185.28.
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Posting Language
Title
Approve issuance of a capacity-based incentive to Public Storage Orangeco Inc. for the installation of solar electric systems on 20 of its facilities in the Austin Energy service territory, in an amount not to exceed $388,776 and approve issuance of a five-year performance-based incentive to Public Storage Orangeco Inc., in a total amount not to exceed $1,024,185.28.
De
Lead Department
Austin Energy
Fiscal Note
Funding in the amount of $593,614 is available in the Fiscal Year 2023-2024 Austin Energy Operating Budget. Funding for the remaining years of the agreements is contingent upon available funds in future budgets.
For More Information:
Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386
Council Committee, Boards and Commission Action:
November 13, 2023 - Recommended by the Electric Utility Commission on a 7-0 vote with Commissioners Alvarez, Blackburn, and Seibert absent and one vacancy.
November 14, 2023 - Recommended by the Resource Management Commission on a 6-0 vote with Commissioners Bren, Davis, Johnson, and Stone absent and one vacancy.
Additional Backup Information:
Austin Energy requests approval to issue this Capacity Based Incentive (CBI) and this Performance Based Incentive (PBI) to Public Storage Orangeco Inc. (the Customer) for the installation of solar electric systems, detailed in the tables below at their facilities to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits.
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Aggregated Solar Systems Details* |
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Total System Size (kW-DC) |
2,062 |
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Total System Size (kW-AC) |
1,712 |
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Annual Estimated Production (kWh) |
2,890,624 |
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Total System Cost ($) |
$4,792,171 |
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Total Incentive ($) |
$1,412,961 |
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Percent of Cost Covered |
29% |
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Environmental Benefits** and Emission Reduction Equivalencies*** |
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Reduction of Carbon Dioxide (CO2) in tons |
1360 |
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Reduction of Sulfur Dioxide (SO2) in pounds |
2023 |
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Reduction of Nitrogen Oxide (NOX) in pounds |
2023 |
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Equivalency of Vehicle Miles Driven |
4,704,714 |
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Equivalency of Cars on Austin Roadways |
408 |
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Equivalency of Trees Planted |
30,346 |
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Equivalency of Forest Acreage Added |
2,189 |
*All solar equipment meets Austin Energy program requirements
** Environmental Benefits based on the ’US Energy Information Associations state-wide electricity profile <https://www.eia.gov/electricity/state/texas/>
*** According to the Environmental Protection Agency Greenhouse Gas Equivalency Calculator <https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator>
The Customer is a provider of storage units for personal, business and vehicle storage needs, with thousands of locations nationwide. Details on the 20 individual proposed systems are provided in the table below.
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Nine Proposed Capacity-Based Incentive Projects (Under 75 kW AC) |
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Site Address |
Incentive Rate |
System Cost |
Austin Energy Incentive |
Generation kWh/yr |
System Size kW DC |
System Size kW AC |
Offset |
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2121 S IH 35 SVRD NB 2 Austin, TX 78741 |
$0.60 |
$209,086 |
$51,507 |
123,682 |
85.845 |
71.251 |
94% |
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5220 W US 290 HWY WB Austin, TX 78735 |
$0.60 |
$203,180 |
$50,052 |
115,957 |
83.42 |
69.239 |
104% |
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13675 N US 183 HWY SVRD NB A Austin, TX 78729 |
$0.60 |
$209,086 |
$51,507 |
121,577 |
85.845 |
71.251 |
92% |
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1300 W 5th St Austin, TX 78703 |
$0.60 |
$152,443 |
$35,502 |
82,234 |
59.17 |
49.111 |
93% |
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10931 Research Blvd SVRD NB A Austin, TX 78759 |
$0.60 |
$196,312 |
$47,724 |
114,556 |
79.54 |
66.018 |
98% |
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10931 Research Blvd SVRD NB Austin, TX 78759 |
$0.60 |
$196,312 |
$47,724 |
110,223 |
79.54 |
66.018 |
95% |
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937 Reinli St Austin, TX 78751 |
$0.60 |
$114,963 |
$27,936 |
67,179 |
46.56 |
38.645 |
106% |
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12915 N US 183 HWY SVRD NB Austin, TX 78729 |
$0.60 |
$208,917 |
$51,216 |
118,645 |
85.36 |
70.849 |
93% |
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10001 N IH 35 SVRD NB Austin, TX 78753 |
$0.60 |
$102,193 |
$25,608 |
57,469 |
42.68 |
35.424 |
92% |
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Eleven Proposed Performance-Based Incentive Projects (Over 75 kW AC) |
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Site Address |
Incentive Rate |
System Cost |
Austin Energy Incentive |
Generation kWh/yr |
System Size kW DC |
System Size kW AC |
Offset |
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14002 Owen Tech Blvd Austin, TX 78728 |
$0.09 |
$475,339 |
$161,890 |
312,831 |
225.04 |
186.783 |
94% |
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6726 FM 2244 Rd Austin, TX 78744 |
$0.09 |
$247,218 |
$75,070 |
145,063 |
104.76 |
86.951 |
93% |
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12318 N Mopac EXPY SVRD SB D Austin, TX 78759 |
$0.09 |
$279,569 |
$89,678 |
173,291 |
121.25 |
100.637 |
114% |
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1800 S Lamar Blvd Austin, TX 78704 |
$0.09 |
$270,108 |
$82,308 |
159,049 |
114.46 |
95.002 |
92% |
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1321 W 5th St Austin, TX 78703 |
$0.09 |
$356,903 |
$115,685 |
223,546 |
160.05 |
132.841 |
93% |
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2513 N FM 620 Rd Austin, TX 78734 |
$0.09 |
$236,351 |
$73,267 |
141,578 |
101.85 |
84.535 |
93% |
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4911 S IH 35 SVRD NB 2 Austin, TX 78744 |
$0.09 |
$264,575 |
$84,087 |
162,486 |
110.095 |
91.379 |
98% |
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1033 E 41st St Austin, TX 78751 |
$0.09 |
$213,718 |
$64,873 |
125,358 |
90.21 |
74.874 |
74% |
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2301 E Ben White Blvd SVRD EB Austin, TX 78744 |
$0.09 |
$270,435 |
$82,997 |
160,381 |
117.37 |
97.417 |
104% |
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8101 N Lamar Blvd NB Austin, TX 78753 |
$0.09 |
$371,853 |
$127,337 |
246,062 |
176.54 |
146.528 |
91% |
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3911 S FM 620 Rd Bee Cave, TX 78738 |
$0.09 |
$213,610 |
$66,994 |
129,457 |
92.635 |
76.887 |
93% |
According to the updated Austin Energy Resource, Generation and Climate Protection Plan, approved by Council in March 2020, “Austin Energy will achieve a total of 375 MW of local solar capacity by the end of 2030, of which 200 MW will be customer-sited (when including both in-front-of-meter and behind-the meter installations).” In order to meet these goals, Austin Energy has funded the Solar Photovoltaic (PV) Programs, which are designed to reduce the amount of electricity Austin Energy must purchase from the market and reduce associated greenhouse gas emissions.
The purpose of the Austin Energy Solar PV CBI Program is to expand adoption of solar by nonprofit organizations and small businesses by helping to offset the capital investment of solar installation. Under this program, solar systems under 75 kW AC are eligible to receive $0.60/W-DC. Per program guidelines, the installation is expected to continue producing for a minimum of 20 years or may be subject to repay the incentive at a pro-rated amount, if it stops producing for any reason short of the stated minimum.
The purpose of the Austin Energy Solar PV PBI Program is to expand adoption of customer-sited solar by commercial customers for system sizes over 75 kW AC. 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.
These projects 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.
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