Page 172 - Sustainable Cities and Communities Design Handbook

148 Sustainable Cities and Communities Design Handbook

financial factors, homes, businesses, and cities are installing solar PV systems
across the globe.
Governments have been a key player in renewable energy. Solar arrays
appear on municipal buildings and parking lots, in transit way meters, and
across landfills. For government entities, the implementation of PV systems
and related financial feasibility analyses are complicated. There are location
and size constraints and nonprofit status may limit the use of financial in-
centives. This chapter presents a financial feasibility analysis of a city PV
system installation.

Energy Challenges are Enormous

Multiple factors must be taken into consideration when forming an energy
plan. In addition to issues regarding energy security and reliability, economic
growth could affect the conditions of an energy contract. Furthermore, natural
disasters could have an adverse impact on energy supply, and the environ-
mental impact of an energy system may affect future conditions under which
energy is produced. An agile energy plan incorporating renewable/green
energy can address these considerations and factors.

SolarCitydSolar PV Array Installations on City Facilities
SolarCity (the “City”), located in Southern California, is considering the
installation of solar PV arrays on several City facilities. The goal is to reduce
greenhouse gas (“GHG”) emissions while also lowering electricity costs. As
part of its analyses, the City wants to assess the economic and technical
feasibility of installing solar PV arrays on its City Hall, the initial project. The
City plans to install solar PV arrays on the rooftop of its City Hall (the “City
Hall Solar Project”) to reduce its impact on existing structures and the
building’s exterior appearance.

Due Diligence Procedures

Proper due diligence requires various analyses of the proposed PV systems.
These analyses include:
1. Engineering analyses of design proposals, installation sites, and ongoing
maintenance.
2. Financial analyses of PV systems’ implementation costs, financing costs,
federal and state incentives, operating costs, and maintenance costs.
3. Legal analyses of proposed contracts between the City, the PV systems
developer/owner, and the electric utility.
4. Project management analyses from the perspective of the City.