A-2. Discussion of Community Solar Gardens �
� �` �
, '� MEMORANDUM
C����� TO: Todd Gerhardt, City Manager ��
, 49 V ,
C�u�(������ FROM: Paul Oehme, Dir, of Public Works/City Engineer �
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7700 Marl<et Qoulevard DATE: June 8, 20]5 � �-
PO Box 147
Chanhassen,MN 55317 SUBJ: Discussion Regarding Commtimity Solar Gal�dens at Blue Lake Wastewater
Treatment Facility
Administration
Phone:952227.1100 BACKGROUD
Fax:952.227.1110
Building Inspectio��� At the May 11, 2015 Council worl<session, staff p�•esented the Council with information
Phone:952.227.1180 about the State solai-powel•initiative. In 2013, the State Legislator passed a require�nent that
Fax:952227.1190 Xcel Energy increase solar use of its power generation to 1.5% of its total electrical output by
2020 and as much as 14%by 2030. This legislation was designed to jump start the state in
�:r��i6a�;e�eEaEjr using solar energy. The Public Utility Co�ninission then set 1•egulations for solar use in
Phone�952.227.1160 November, 2014 which is the Community Solar Garden Progr•am.
Fax:952.227.1170
The Cominunity Solar Garden Program can lock in rates for energy use for over 25 years and
��id�rs�ic� is a hedge against 1•ising electrical rate increase. A solar garden is a collection of solai•panels ���
Phone:952.227.11�0 that collect the solar energy and convert it into power generation and is connected to the I
Fax:952.227.1110 powei•grid. In oi•der to take advantage of t11is prograin, an agency would need to contract
with a solar garden ve�idor so the solar gardeu can be construeted. Xcel would provide a bill
Paariz�i�eci��a�io�� cf•edit each month to eveiy garden stibscriber based on the kWh generated by the solar
Phone 952.227.1120 garden. The subscriber, in turn, pays the gardei� operator or vendor an amount that is
Fax:952.227.1110 typically less than the bill credit, thereby crediting an economic benef�it to the subscriber.
Also, as �-ates increase, the subscribel•will see an additional savings because of the locked in
id�c��eafion(;€:�i4���
rates.
2310 Coulter Boulevard
Phone:952.227.1400 DISCUSSSION
Fax:952.227.1�404
A solar garden is pl•oposed at the Metropolitan Council Blue Lake Wastewater Treatment
Planning�zf Plant in Shal<opee. Four solar gardens are proposed to be const�-ucted on this site. Staff 17as
Natural Resourc��
Phone:952227.1130 had discussions with the Metropolitan Council and the private vendor planning to build the
Fax:952.227.1110 facility. T'he Metropolitan Council is planning to maxi�nize their electrical usage contract of
this facility but needs additional agency partners to fill in the required additional contracts.
�, 6 The Metropolitan Council has opened up contracting to this solat-gai•den to other agencies
�'���������i�'����� that are serviced by the Blue Lake facility. Any one agency cannot own more than 40% of
7901 Park Place
Phone�952.7_?_7.1300 any o��e solai-ga►•den output. This solar ga1•den is near 11igh voltage ti•ansmission lines and is
Fax 952 227.1310 on property ali•eady secured by an agency that wants to contract�for solar energy. Because of
tl�ese two factors,the capital cost fot�the solar gardens will be less expensive than other solar
��,��i�v-�;�_.������� farms and will offer a nlore attcactive contract for the agencies that sign up.
Phone 952.227.1125 The Cit s ends a roximatel $460,000 annuall fot• ower with Xcel Enei• oi•4 168 000
Fax 952.227.1110 y p pp y y p �y ° °
kWh. Tl�e City has seen about a 4% increase in elecri•ical rates over the past several years.
�������t� The vendor for the Blue Lake facility is Oakleaf Energy Partners out of Denver, Colorado. A
www.ci.chanhassen.mn.us
representative for Oakleaf will give a b�•ief overview of their project and will discuss the
benefits of signing up with this project. The total savings to each commLulity depei�ds on its
subscription percentage. Staff will presetlt a potential savings analysis Chanhassen could
receive by signing up with the project.
g:�eng�pa�ul����mQ���kgdr�s����r�������4��ar`��!?�`��ovlding for Today and Planning for 7omorrow