Summary Fact Sheet
United Solar Consultants, Inc (the “Developer”) is identifying an investor or acquirer (collectively the “Investor”) for a “shovel-ready” 2 MW DC ground-mount solar PV facility (the “Project”) in the state of North Carolina. Power purchase agreement (“PPA”) is with an investment-grade utility (the “Utility”).
The Project will have average energy price of 8-9 cents per kWh, inclusive of energy and capacity rates (see below), and associated environmental attributes in form of SREC’s. Construction is slated to begin early 3Q: 2012, subject to identifying Investor.
All agreements and contracts are either completed or near completion. Most remaining key terms and conditions have been negotiated and agreed upon subject to Investor final approval. Decision to select EPC, technology (including configuration as fixed-tilt or single-axis tracking) and O&M service provider is available to Investor. Developer is managing process but intends to directly involve prospective Investor upon execution of a letter of intent (“LOI”).
The North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS) requires all investor-owned utilities to supply 12.5% of 2020 retail electricity sales from eligible energy resources by 2021. Municipal utilities and electric cooperatives must meet a target of 10% renewable energy by 2018. The overall target for renewable energy includes technology-specific targets of 0.2% solar by 2018.
Investors have the option to own Project in its current stage of development. Developer progress includes the following:
a) Project has been registered and certain registrations and agreements in name of project company;
b) Project has received FERC and NCUC approvals;
c) Developer has agreed lease agreement for lease of 14 acres for 25 years from the landowners;
d) Developer has secured firm energy and capacity rates which are available to Investor;
e) Developer has negotiated full terms and conditions of interconnection agreement which is available to Investor. The interconnection application is under process;
f) Developer has negotiated key terms and provisions of the PPA which is available to Investor;
g) Investor is free to choose their own equipment supplier, EPC and SREC brokers;
h) Developer will act on behalf of Investor to facilitate any remaining permits, registrations, government approvals and agreements;
i) No fees are due Developer and intermediaries until all registrations, interconnection agreement and PPA are fully executed;
j) Incentives such as Accelerated Depreciation under MACRS, Federal ITC @ 30%, State ITC @ 35% and Property Tax Abatement available.
Upon execution of an LOI, Developer will introduce Investor to Utility for final negotiation and acceptance of respective contract terms and conditions.
Selected Key Project Attributes
Ground-mount solar PV
1.989 MW DC
Installed Turn-key Cost
Investment-grade (BBB+; Standard & Poor’s)