Opening of Proposals - Olive WTP Solar GESC Proj No 124-050 - Ameresco Inc

Home Browse Search

AERESCO Energy Solutions G G r�m For Every Need account for lost production for the downtime. The adjustment methodology will depend on the nature of the cause of the downtime, and this process will be documented as reported in the M&V Report. While not a part of M&V, as energy usage increases at the facility from increased pumping, the financial return to the City will also increase as the energy produced would be consumed on site rather than being exported to the grid at the lower rate paid for exported power. Due to the availability of the excess distributed generation rider, there will be a return on energy produced regardless of how facility usage changes. As the guarantee is based only on energy produced, facility changes will not impact the guarantee. Stipulated Savings I Stipulated, or Agreed -Upon savings are used sparingly, and only when the savings from a specific ECM have a high likelihood of occurring once installed, and where the cost to perform measurements would exceed the amount of savings generated. In these situations, the calculations and supporting data are carefully reviewed with the owner to ensure that all parties understand the savings and agree that the ECM will result in the amount of calculated savings. This may be an option for smaller energy conservation measures the City may want to include in the project, but are not currently included. Operational Savings I Operational savings represent the maintenance costs reduction due to the implementation of ECMs and are considered non -utility cost savings. Existing maintenance costs can be determined from maintenance cost history provided by the City and/or current costs of existing system components. Future maintenance costs for proposed equipment are estimated based on lifespan of the equipment and currently prices for components. Ameresco generally does not include staff time in the non -utility savings as a decrease in workforce is not anticipated. The replacement of the failing condensing unit could result in operational savings. Operational savings are typically stipulated savings that will be agreed upon in the guaranteed savings agreement. No operational savings are currently calculated or guaranteed. Maximum Return I Shortest Simple Payback Ameresco is able to maximize the return for our customers in several ways. First, we provide firm, turnkey pricing without changes orders to ensure that the price we propose is the price the City will pay. Second, we guarantee savings to ensure the City sees the expected return. In addition, all savings including those above the guarantee belong to the City. Third, we evaluate and investigate available incentive opportunities and support the City in applying for them. For this project, we modeled various sizes of solar arrays along with the costs for each array and selected the proposed system size as it provides the best payback for the City due to its economies of scale and reduction of overall export. Financial Incentives I Maximizing Project Value Ameresco stays abreast of federal and state grants, rebates, and incentives. Our staff quickly analyzes and disseminates information from pending and passed legislation. Additionally, we have regional staff who work closely with clients to assist in grant, incentives, and tax rebate applications. We have secured more than $330 million in grants, incentives, and rebates for projects throughout the country and have successfully received the investment tax credit. While Indiana Michigan Power does not currently offer any rebates for solar projects, it has an excess distributed generation rider which credits the facility for power that is exported to the grid. The current generation credit rate is $0.03610. This provides value for the solar energy even when production does not align with facility energy use. The Inflation Reduction Act also provides incentives for this project. As a project under 1 MW, this system will qualify for the 30% investment tax credit (ITC) through direct pay. The facility is located in a low-income community census tract which makes it eligible for a 10% bonus ITC. While this bonus credit is competitive and subject to selection, Ameresco recommends that the City pursue it. Ameresco will assist South Bend in preparing the supporting documentation to apply for the tax credits. While domestic content has not currently been included due to uncertainty around pricing and availability, when material procurement begins, Ameresco will work with the City to evaluate if enough domestically made product is available and if the City would like to pursue a change in scope to obtain the higher tax credit. Ameresco also investigated the incentives available for other ECMs within the buildings. Indiana Michigan Power offers a rebate for new LED fixtures and lamp replacements that can help to offset the cost of the upgrade. City of South Bend, IN I Department of Public Works I RFQ Guaranteed Energy Savings Contract