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 eight of its facilities in the Austin Energy service territory, in an amount not to exceed $2,142,861.70.
De
Lead Department
Austin Energy.
Fiscal Note
Funding in the amount of $428,573 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding for the remaining years of the agreements is contingent upon available funds in future budgets.
Prior Council Action:
November 30, 2023- Council approved issuance of a 5-year performance-based incentive to Starwood Capital Group LLC for its facilities located at 8310 N Capital of Texas Hwy SB 2, Austin, TX 78759 and 5707 Southwest Pkwy 1, Austin, TX 78735.
For More Information:
Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386.
Council Committee, Boards and Commission Action:
February 12, 2024 - Recommended by the Electric Utility Commission on a 8-0 vote and three vacancies.
February 20, 2024 - To be reviewed by the Resource Management Commission.
Additional Backup Information:
Austin Energy requests approval to issue this 5-year performance-based incentive (PBI) to Starwood Capital Group LLC (the Customer) for the installation of solar electric systems, detailed in the table below at their facilities to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits.
|
Solar System Details* |
|
Total System Size (kW-DC) |
3,139 |
|
Total System Size (kW-AC) |
2,605 |
|
Annual Estimated Production (kWh) |
4,596,762 |
|
Total System Cost ($) *Does not include panel and inverter cost |
$5,044,132.45 |
|
Total Incentive ($) |
$2,142,861.70 |
|
Percent of Cost Covered |
42% |
|
Environmental Benefits** and Emission Reduction Equivalencies*** |
|
Reduction of Carbon Dioxide (CO2) in tons |
2055 |
|
Reduction of Sulfur Dioxide (SO2) in pounds |
2,298 |
|
Reduction of Nitrogen Oxide (NOX) in pounds |
3,218 |
|
Equivalency of Vehicle Miles Driven |
4,779,133 |
|
Equivalency of Cars on Austin Roadways |
415 |
|
Equivalency of Trees Planted |
30,826 |
|
Equivalency of Forest Acreage Added |
2,223 |
*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 (EPA)s Greenhouse Gas Equivalency Calculator <https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator>
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Customer and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,500 employees. Since its inception in 1991, the Customer has raised over $70 billion of capital, and currently has over $120 billion of assets under management. For these projects, the Customer has already procured panels and inverters. Details on the eight individual proposed systems are provided in the tables below.
|
One Proposed Performance-Based Incentive Projects (Under 75 kW AC) |
|
Site Address |
Incentive Rate |
System Cost |
Austin Energy Incentive |
Generation kWh/yr |
System Size kW DC |
System Size kW AC |
Offset |
|
12301 Riata Trace Pkwy II Austin, TX, 78727 |
$0.09 |
$62,354.25 |
$42,810.70 |
82,726 |
56.18 |
46.63 |
6% |
|
Seven Proposed Performance-Based Incentive Projects (Over 75 kW AC) |
|
Site Address |
Incentive Rate |
System Cost |
Austin Energy Incentive |
Generation kWh/yr |
System Size kW DC |
System Size kW AC |
Offset |
|
11001 Lakeline Blvd 1 Austin, TX, 78717 |
$0.09 |
$84,884.25 |
$356,531.63 |
688,950 |
468.23 |
388.63 |
39% |
|
11001 Lakeline Blvd 2 Austin, TX, 78717 |
$0.07 |
$607,358 |
$538,886.32 |
1,338,848 |
909.60 |
754.97 |
16% |
|
12365 Riata Trace Pkwy A Austin, TX, 78727 |
$0.09 |
$26,005.70 |
$324,831.13 |
627,693 |
434.42 |
360.57 |
27% |
|
12357 Riata Trace PKWY C Unit 7 Austin, TX, 78727 |
$0.09 |
$193,001.25 |
$132,690.11 |
256,406 |
173.88 |
144.32 |
3% |
|
12357 Riata Trace PKWY A Austin, TX, 78727 |
$0.07 |
$841,732.55 |
$286,982.90 |
713,001 |
493.81 |
409.86 |
63% |
|
12357 Riata Trace Pkwy A Austin, TX, 78727 |
$0.09 |
$185,281.20 |
$127,382.62 |
246,150 |
166.92 |
138.54 |
17% |
|
12331 Riata Trace Pkwy B Austin, TX, 78727 |
$0.09 |
$743,516.25 |
$332,746.29 |
642,988 |
436.03 |
361.90 |
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 five 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 production 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.