Feed]In]Tariff Solar Program
1. Lessor Property Owner will receive $12.00 per kW of solar. Examples:
1.5 Mw = $12 X 1500 KW = $18,000 (minimum)
3.0 Mw = $36,000
6.0 Mw = $72,000
2. Is the requirement to provide station power to the EES? The client is wondering how much
it will cost and if that cost can be included in the lease payment.
This is actually a rare possibility, since for FIT projects the Station Power will be provided by the
utility. See revised site lease with language stating that these costs, if any, will be reimbursed to
the landowner.
3. What is the requirement to provide security and what does that include? Would the
landowner be required to provide a fence or some type of security system?
We actually include a fence around the property and video surveillance as part of our project
costs, so the landowner is only required to take reasonable & customary security precautions that
they would take for any other buildings or equipment they have on the property. There are no
specific requirements. The language in the site lease has been adjusted to clarify that, too.
4. When exactly does the Lessor begin receiving payments for rent? Do payments begin
when the EES goes into operation or is it after the first year of operation?
One month in arrears, after the EES goes into operation and begins receiving payments from the
utility.
5. 1,500 kw x 100 sq ft (per kW) = 150,000 sq ft of solar
This does not take into account tilting the arrays for greater output and the setback of the tilted
arrays for shading mitigation. If itfs on a rooftop there are additional setbacks for fire lanes around
the perimeter of the roof, skylights, HVAC equipment, avoiding shading from trees, and other
unusable space on the roof. 300,000 square feet is probably more than what is needed, but we’re
being conservative. Looks like a factor of 50% of actual land space is being used for the total
amount of installed solar on the site lease properties.
6. Are we assuming that is why there is a maximum size of 200 acres or 75 MWfs?
The maximum is 20 MW for the programs we are willing to pursue in CA at this time and it takes
up to 10 acres per MW, hence the 200 acres.
7. Where did the 300,000 sq ft minimum required which is closer to 7 acres come from?
It could be much less than that, which is why we’re looking for up to 300,000 sq feet. With fire
lanes, HVAC, skylights, shading from trees on parts of the roof, etc., we may need 300,000 to get
200,000 usable roof space.
8. This isn’t realistic for most roof top applications but figuring 25 sq ft per panel including tilt
up shading spacing and 280 watt panels I come up with only 134,000 sq ft necessary for
our 1.5 MW installation. This is far more feasible for available roof tops in CA.
Agreed, but the only issue I can see is the weight load capacity.
9. Thatfs where the Lumeta peel & stick PowerPly 400fs would be a great fit. We can lay the
4X8 panels flat and only need 120,000 sq ft for a 1.5 MW project. The price point is higher
but the labor costs will offset when wefre talking that quantity of panels.
Lumeta is not an option at this time, as our funding source will not fund anything other than a few
select panels they’ve approved.
10. Does the fund investors require the installation of a specific panel?
Yes. After we complete several of these projects, we will likely get the green light from 2 other
funding sources that are monitoring our progress. These other funding sources are not as
restrictive on the types of equipment we select.
11. How many acres required? Minimum and maximum
Minimum 4 acres, maximum 200 acres.
12. What about setbacks? Front, rear and side?
Depends on county, but usually 20f to 100f, with 500f in some rare cases.
13. On 20 acre parcel, what will be the max distance from the pole to the array?
Unknown until design & layout is complete
14. What about leased property?
Yes, thatfs OK as long as the lease is 20 years or more.
15. What about liens? 1st, 2nd & 3rd lien allowed?
OK as long as the equity in the property after all liens exceed at least 30% of the project cost.
16. What does the land owners have to do to qualify?
Sign the site lease
17. Is the $12.00 based on design or actual kW production?
Based on nameplate installed capacity DC
18. Are there any land restrictions?
Environtamentally sensitive land would be problematic (examples include land hosting any
endangered or threatened species of any kind, raptor nesting grounds, waterfowl breeding
grounds, Native American burial site or other sacred site, etc.)
19. What kind of power does the land need, 1 Phase, 3 Phase?
Either is fine, but 3 phase is generally better.
20. What a about the Williamson Act?
21. Yes, in many cases, but it varies by county and size of the property relative to the solar project.
Small 1.5 MW projects on about 300,000 square feet (7 acres) relative to a 160 acre quarter
section would likely be allowed in most cases.
22. Can we touch property that has that attached to it?
Yes, in many cases, but it varies by county and size of the property relative to the solar project.
Small 1.5 MW projects on about 300,000 square feet (7 acres) relative to a 160 acre quarter
section would likely be allowed in most cases.
23. Flood zones.
B (100 year) and C (500 year) flood zones should be acceptable, but not most A zones.
24. What will be the typical proposed rent payment schedule to the lessor once the system is
in operation
Monthly
25. How long is the term of the lease?
Coincides with the PPA, with an option to renew for 5 years after conclusion of the PPA. It is
dependant on the term of the PPA
26. What will be a typical PPA term be for the fit?
20 years
27. What is an approx time line from signing of site lease agreement to shovel ready?
The time is unknown, due to widely varying requirements of counties for permits. 6-18 months is a
reasonable timeframe. The same is to completion and a 10mw system.
28. Is there any further obligations necessary from the Lessor the Lessee other then the site
lease agreement? Not at this time, although the lender may ask for a copy of the property insurance and to be named
as an additional named insured.
29. Is there an option for the Lessor to purchase the Solar Farm at the end of the term (similar
to our regular client PPA agreements)?
No, not at this time since itfs a FIT program and the utility needs the developer to maintain control.
Itfs possible that after 20 years the utility would allow us to sell it to the Lessor, but we just cannot
predict what position the utility will take 20 years from now.
30. We have one project that has 3 adjoining parcels, the owner would like to reserve one acre
on each parcel for future farm homes. How to we go about adding this language into the
site lease agreement?
Simply include that language in the description of the Premises in the exhibit, and describe the
legal description and/or location (example: except for the northwestern-most corner of the
property) of the excluded one acre on each parcel
Element Power Group – National Gas & Electric Inc.
John Krueger
818 428 5147
John@ElementControls.Com
http://www.ElementPowerGroup.Com
Element Power Group Development Solutions. . .
Go Greenc Reduce Your Energy Costs
Commercial Energy Consultant for WattControls
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