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152  SOLAR POWER SYSTEM PHYSICS AND TECHNOLOGIES


                     ■ Conduct an energy audit.
                     ■ Provide detailed data about site topology and present and future land use.
                     ■ Provide data regarding local climatic conditions such as wind, sand, or dust accu-
                       mulation and cyclic flooding conditions, if applicable.
                     ■ For roof-mount systems, provide aerial photographs of roof plans that show mechani-
                       cal equipment, air vents, and roof hatches. Drawings also must accompany architec-
                       tural drawings that show parapet heights and objects that could cause shading.
                     ■ Specifications should outline current electrical tariff agreements.
                     ■ The document also should incorporate any and all special covenants, conditions,
                       and restrictions associated with the leased property.
                     ■ To ensure system hardware reliability at the posterity of the contract, the RFP must
                       include a generic outline of hardware and data-acquisition and monitoring software
                       requirements.
                     ■ The specifications must request providers to disclose all issues that may cause
                       noncompliance.
                     ■ Expected power output performance guarantees, as well as projected annual power
                       generation requirements, must be delineated.

                       Owners are also advised to conduct preliminary renewable-energy production
                     studies that would enable them to evaluate energy-production potential, as well as
                     economic analysis of possible alternatives.


                     PPA contract structure for solar power systems To prepare a PPA request
                     for a proposal document, the owner’s legal counsel and management personnel must
                     familiarize themselves with various elements of the contract agreement. Agreements
                     involving third-party ownership consist of two parts, namely, legal and technical. The
                     following are some of the most significant points of PPA-type contracts that third-
                     party purchase providers must respond to and evaluate accordingly:

                       Contractual matters of interest
                       ■ DC output size of the PV modules in kilowatthours
                       ■ AC or PTC output of the PV modules in kilowatthours
                       ■ Expected ac power output of the solar system in its first year of installation
                       ■ Expected life-cycle power output in kilowatthours dc
                       ■ Expected life-cycle power output in kilowatthours ac
                       ■ Guaranteed minimum annual power output performance in kilowatthours ac
                       ■ Terms of contractual agreement
                       ■ Penalty or compensation for performance failure
                       ■ Price structure at the end of the contract with client paying 0 percent of the cost
                       ■ Price structure at the end of the contract with client paying 50 percent of the cost
                       ■ Price structure at the end of the contract with client paying 100 percent of the cost
                       ■ Expected average yearly performance during life cycle of the contract
                       ■ Expected mean yearly performance degradation during life cycle of the contract
                       ■ Assumed PPA price per kilowatthour of electrical energy
                       ■ Initial cost of PPA
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