Board Of Aldermen - Minutes - 8/6/2019 - P53

Municipal Solar Financing

Challenge: Cities Cannot Access Solar Incentives

* Solar investment tax credit/depreciation only apply to tax liability
* Outright purchase would typically require 15-20 year payback
¢ Many cities cannot afford up-front cost or cash flow impact

Solution: Solar Power Purchase Agreement (PPA)

¢ City licenses roof/land to third-party finance partner for solar
¢ Finance partner builds, owns, and operates solar array for 5+ years
« Finance partner sells power from solar to City at a discount

¢ Beginning in year 6, City may purchase solar array at a discount to
maximize long-term savings (optional)

(Q) REVISION ENERGY