Details on solar PPA deal for Brandeis University coming in spring 2017
We assume it looked something like this.
Four solar project partners — Competitive Energy Services, Kenyon Energy, Borrego Solar Systems and AEW Capital Management — developed a collaboration with Brandeis University on a solar energy system that will directly reduce Brandeis’ electricity costs. The system is expected to be operational in spring 2017.
Under the program, Brandeis will purchase solar energy from a 1.27 MW system installed on the roof of a property in Somerville, Mass., that is owned by an affiliate of AEW Capital Management. Through net metering, Brandeis will receive credits on its utility bill for every kilowatt hour (kWh) produced by the remotely located installation.
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“We hope this is the first of many opportunities to support new solar developments in Massachusetts, and hedge against the volatile, fossil fuel-based electricity market,” said Mary Fischer, Brandeis’ Sustainability Manager. “While we continue to investigate long-term, on-site solar for our campus, this agreement is an immediate opportunity to demonstrate our commitment to sustainability and fiscal responsibility.”
Fisher said that the system is expected to reduce Brandeis’ energy bill by an estimated $70,000 in the first year, and up to $2 million over 20 years.
The solar array will generate nearly 1.6 million kWhs of energy in its first year, enough to provide 3.5 percent of Brandeis’ energy needs.
Brandeis has a 20-year Power Purchase Agreement (PPA) with Kenyon Energy to finance the solar installation. The university will pay Kenyon Energy for the electricity generated by the solar facility at a cost significantly below its current utility rates. Brandeis is able to mitigate the risk of significant, unexpected future rate increases by contracting a predictably escalating rate through the PPA term.
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