Renewable Energy Finance Program “Save Some Green”

River Falls Municipal UtilitiesMike Noreen

Conservation and Efficiency CoordinatorApril 7, 2010

Who We Are• Non profit and locally owned and operated electric,

water/sewer, and wastewater utility.• Serves around 5,800 customers in River Falls, WI. • WPPI Energy is wholesale power provider.• Community ownership and control is the hallmark

of public power — local people working together to meet local needs.

• Mixture of agricultural, university and bedroom community with a progressive spirit.

• Selected by WPPI Energy to “Lead By Example” and become one of four “model communities”.

• Committee was established to help River Falls become a model in the state and region for implementing community-wide sustainability initiatives.

• Comprised a group of concerned citizens representing the university, hospital, public school, private sector, city government, and utilities.

Our Challenge

POWERful Choices!Mission Statement: A community-wide effort to install a strong local conservation ethic while demonstrating the effectiveness of energy efficiency, conservation and renewable resources

“Lead by Example” Locally• LEED Silver Certified City Hall• Hired Conservation and Efficiency Coordinator • Formed employee “Green Teams” to reduce energy

in municipal facilities by 10% • Performing Energy Audit on all municipal facilities• Installed Wind Test Tower • Purchased Plug-in Electric Hybrid Vehicle

The BIG Picture• Governor Doyle selected University of WI-River

Falls 1 of 4 campuses to be “off the grid” by 2012.• EPA Green Power Community and Top 10 List for

green power usage - first community in Wisconsin and the Midwest.

• U.S. DOE’s National Renewable Energy Laboratory Top 10 List for green power sales.

• Full participation in the WPPI Energy, Solar Buy Back Tariff.

• First new construction LEED Silver City Hall in Wisconsin!

• Selected to be 1 of 4 Midwest Efficiency Cities.

Our Latest Project

• Innovative Renewable Energy Finance Program called “Save Some Green”.

• Install renewable energy system on home.– Solar photovoltaic panel system– Solar hot water– Solar thermal heating– Geothermal heating and cooling system– Wind turbines– Major energy efficiency projects (in conjunction with

renewable energy project)

• Repay on property taxes.

Program Details

• Residential customers within city limits.• Funding and administration through the utility. • 4% loan ranging from 5-20 years.• $2,500 - $50,000 range.• Loan paid back as a “special charge” on city

property taxes.

Renewable Energy in 10 Easy Steps

1. Review program guidelines.2. Complete Focus on Energy Home Performance

with ENERGY STAR evaluation.3. Obtain bid proposals.4. Pay application fee ($25-100).5. Utility internal review of application.

10 Easy Steps Continued…6. Sign required documentation including: Loan

Agreement, Promissory Note, Mortgage document, Standard Distribution Generation Application, and Distributed Generation Interconnection Agreement.

7. Proceed with installation.8. Conduct final inspection and submit copy of final

bill for payment.9. Process payment directly to installer, record

mortgage and submit info to the city for collection on property taxes.

10. Pay “special charge” on city property taxes.

Funding Source

• Electric revenue funded.• $500,000* utility commitment for “Save Some

Green” program in 2010.• Funding sources for 2011 yet to be secured.

* An additional 1.7% of revenue has been dedicated for additional conservation programs and services, as approved through the Public Service Commission of Wisconsin.

Why Program Was Created• Eliminate “cost first” barrier when considering

renewable energy installation.• Offer additional low interest funding options.• Increase the proliferation of renewable energy

systems into residential market.• Help customer through the complex web of city

codes, financial rebates, renewable energy options and deadlines.

Program Uniqueness• No improvement district formed or municipal

bonds sold.• Funding acquired from utility revenue.• Commitment to energy efficiency required.• Not tax deductible.• Homeowner signs mortgage document and owns

the renewable energy system.• Incentives are not required to be repaid

immediately.• Loan to be paid off at the sale of the property.

Potential Concerns• Limited pool of funding.• Trailblazers and program guidelines may change.• Attempt to have all projects with energy savings of

at least 75% of the cost of the loan.• Is the renewable energy technology ready?

2007

2008

2009

2010

April—Approved "Leading By Example” participation

November—Started following Berkley model

February—First met with City staff

March—Subcommittee formed

November—Presented program concept to governing bodies

November—Approved collection on property taxes

March—Approved funding allocation

March—Mass marketing

March—First customer application!!

Project Timeline

"Our goal is not to take over the market for financing solar and energy efficiency," says

Francisco DeVries.

"It's to provide a financing mechanism for people who otherwise could not or would not get solar

and energy efficiency.”

[DeVries is a confessed save-the-climate junkie and chief of staff for Berkeley, California, that was in charge of implementing an ambitious new measure to cut the city's greenhouse gas emissions 80% by 2050.]

Questions and Comments?

Mike Noreen, Conservation and Efficiency Coordinator715-426-3467 mnoreen@wppienergy.org

River Falls Municipal Utilities222 Lewis Street, Suite 228

River Falls, WI 54022www.rfmu.org