Photovoltaic Systems Design & Installation
Proposed Funding $ 6,300,000
City Funding $ 6,300,000
External Funding $ 0
Funding Source, Approved Plan CR, CAP
Project Category Facilities
Project Type Design and Construction
Location Various
Dept. Priority High
Origin of Request Public Works
Project Description
Project Justification
Priori
tization
Projected Schedule
Funding Information
Operating Budget Impacts
In 2023 PG&E announced a rate decrease for electricity generated by photovoltaic (PV) systems (NEM 3), but provided a window to allow grandfathering the more economically-attractive NEM 2.0 rates if interconnection applications were successfully submitted and corresponding systems operational by 2026. NEM 2.0 Interconnection Applications were successfully submitted to PG&E for five Cupertino facilities: Blackberry Farm, Civic Center, Library, Quinlan Community Center & Senior Center, and Sports Center. This project aims to design and build PV systems at all five locations. This project proposes design/build of these systems, pending design development reviews for each facility.
The City must connect the proposed photovoltaic systems to the grid by 4/15/2026 in order to take advantage of the NEM 2.0 applications, which provides 75 80% greater compensation than NEM 3 rates for electricity that is fed back into the electrical system. The savings in utility costs are projected to be $500,000 annually, and $17.8M over a 30yr lifespan.
Conceptual Design development and cost analysis: Summer 2024 Design-Build: Winter 2024 to April 2026
Installation of the PV systems is projected to save $500,000 annually in utility costs. Additional staffing will not be required for ongoing operations and maintenance.
Installation of the PV systems is projected to save $500,000 annually. The use of cleaner energy sources is a CAP goal.
CA Government code allows for streamlined sourcing of Energy Service Companies (ESCO) for design/build implementation to facilitate these types of projects. It is projected that this project will qualify for $1.9M in Inflation Reduction Act credits.
The proposed budget will enable design and construction of the systems. Inflation Reduction Act credits projected for this project are approximately $1.9M. Staff will also pursue other grant funding opportunities.
CIP FY24-25 5-YEAR PLAN ATTACHMENT A
ATTACHMENT C