Community Solar Wisconsin

Solar 2/10

Plan A

Prepared by Chuck Learned

 

To the Solar investment community gathering around Kurt’s orchestrated conversations. This proposal below came from an invitation from Kurt for me to illustrate a non-profit model. Perhaps Kurt did not have this much detail in mind, however it flows from a natural reflection on what would be a complementary service to the work of a project I and others are building out. I offer a simple, affordable, synergistic means to become a non-profit. You will read more about that below. I offer this up as a proposal for consideration. It could go many different directions than what I am proposing which is fine. There are many paths and this is just one. I have also offered up a plan B which I am even more enthused about.  The name and mission, came with minimal thought, I needed some handle to talk about the idea.

 

Mission

 

2% of the power grid is distributed solar and 10% of domestic hot water is provided by solar throughout the Greater Madison 8 county Region by 2015.

 

Vision

 

A non profit solar education, project development and management service accelerates the installation of solar PV and solar hot water.

 

Services

There are many reasons why solar power needs an on the ground non profit organization to accelerate the installation of solar PV and Solar Hot water. People, organizations and enterprises need assistance with:

• Understanding how everything physically works from a neutral source versus a specific vendor who has a sales agenda.
• Comparing products, understanding value and investment considerations.
• Researching and developing opportunities and organizing cooperatively owned and maintained installations.
• Aggregating sales and installation to bring efficiency to purchasing and installation. This is a collaborative software service offering solar aggregation http://1bog.org/ibog-close-were-1bog/ which could be utilized or a similar one developed.
• Financial coordination of incentives, facilitating public and private investment,  gifts and managing carbon credits.
• Coordinating the ongoing maintenance of systems under contract.
• Regulatory ordinances and compliance.

There is also a need to

·        Provide a go to source for moving conversations toward action,

·        Coordinate membership activities and communications

·        Marketing the solar story and opportunities in a systematic fashion.

·        Make the whole procurement and installation process easier, less intimidating.

·        Facilitate grants, acquisitions and installations serving people with low income.

·        Offer Solar energy investment options such as:

1.       full service leasing  see Solar City http://www.solarcity.com/solarlease/SolarCityAbout.aspx?cm_sp=Global%20-%20Tab%20Design-_-SolarLease-_-Orange%20Button%20Left%20Nav

2.      Direct ownership by customer with financing assistance

3.      A percentage of a portfolio of units on leased roof tops or available spaces managed by Solar 2-10

 

 

Organization and Governance

Solar 2-10 could be staffed initially by a full time Director with a project board accountable to its membership. The board would have responsibilities for the over all management of the project. The solar 2-10 project could be under the fiduciary governance of a fiscal sponsor known as Wisconsin Partners for SustainAbility(Wiscpsa). Wiscpsa would offer accounting, payroll, grant management, insurance, liability, networking, possibly shared space/shared services concept where sister projects and non-profits could share common services and amenities such as receptionist, conference room, meeting rooms, break room/kitchenette, copying, document production and possibly IT support. This will enable high performance and value at lowest cost for each project.

 

Wiscpsa is currently developing this sponsorship structure. The goal of Wiscpsa will be to empower each project through shared services and networking where it makes sense. Wiscpsa does not intend to manage the projects, though it is ultimately responsible for each projects  governance, therefore it will establish parameters of governance that are expected of a typical non-profit board fiduciary responsibilities. Fiscal Sponsorship with services is an active model practiced throughout the country particularly in progressive pockets. You can learn more by visiting  http://www.fiscalsponsordirectory.org/index.php  www.tides.org is one of the larger operations with 200 projects including a shared space/shared services model highlighted here at www.tidescenter.org    Wiscpsa would offer these services to its projects based on a percentage of revenues which typically range from 5-15% depending on whether government grants are involved.

 

Sister Projects within Wisconsin Partners for Sustainability

 

Tri Local Returns is in formation with desired launch this summer, dependent on successful fundraising.

 

 

 

 

The goals of TriLocal Returns are to facilitate investment in enterprises that benefit the community economy, enhance our relationship to the environment and promote a high quality of life. Its methodology is to assess opportunities, lay groundwork for creating new initiatives, and facilitate investment in Madison, Wisconsin and the surrounding area of South Central Wisconsin.

 

Tri Local has the potential to blend the long term solar investment returns with investments that cash flow immediately offering a viable reasonable triple bottom line return for Solar 2-10 members and the Tri Local Investment membership.  Tri Local Returns will draw investment capital from throughout the 8 county regions from individuals, institutional accounts and trusts. Tri Local Returns will develop a philanthropic capital pool controlled by the membership that will facilitate strategic placement of philanthropic capital both as investments and granted operating capital. You can learn more about Tri Local Returns by reading the introduction I posted on Wiser Earth.

 

Home Investment Program (HIP) will be a pilot of Tri Local Returns to offer a means for home owners and landlords to more easily rehabilitate their homes and buildings to use less energy. HIP in conjunction with Solar 2-10 would be able to offer solar pv and solar domestic hot water.  HIP will provide:

·        Community organizing and leadership support to neighborhoods and affinity groups offering a meaningful service where people matter, embracing peoples desire for connection, high quality of life, to save energy, money and be environmental stewards of their children’s future.

·        Neighborhood advocates and support to remove barriers for people in taking action to invest in their homes energy efficiency.

·        Financial services and structures that will allow people to easily access financing and to structure payments to ideally reflect their efficiency investment savings.

·        A means for people to literally invest in each other, help their neighbors and affinity members.

Given that HIP will be working in neighborhoods it will make sense to have conversations around identifying the homes most suited for solar placement and explore mutual neighborhood investments. HIP will be encouraging the neighborhoods to consider additional steps of cooperation beyond efficiency such as neighborhood energy systems, tool sheds, shared transportation, elder care, child care, gardens, common house and regular gatherings around food, music and other entertainment.

 

 

Wisconsin Green Exchange

The Wisconsin Green Exchange a new project in development http://www.wisconsingreenexchange.com/index.php?page=1 is a service for small businesses and consumers. Its purpose is to enhance the perceived value and competitive advantage of green practices, products and services in the local and regional market place.

 Dane Buy Local http://www.danebuylocal.com/home  is a network of 400 plus local businesses committed to building a vibrant local economy. This is our currently funded entity.

 

 

Synergy

 

Tri Local and HIP will have a significant active engaged membership throughout the region. Solar 2-10 has the potential to accelerate the solar investment process by providing the above stated services, interacting with  Tri Local Returns and HIP membership as well as non member citizens and institutions. Tri Local Returns has the potential to provide a continuous stream of investment capital as well as the investment services and ongoing investment management.  Solar 2-10 will provide a conduit for involvement for Tri Local members who are particularly passionate about solar. Assuming that Solar 2-10 is effective at facilitating investment, it would make sense the Tri Local membership would desire to support the ongoing operations of Solar 2-10. By sharing fiscal sponsors, ideally office space and essentially working with the same membership the potential for collaboration and effective communication is optimum.

 

The fiscal sponsorship and shared services model will ensure a low cost of operation while providing a professional suite of services that funders and investors will value.

 

 

Potential Funding Partners

 

Tri Local Returns membership

Focus on Energy

State of Wisconsin

Solar Installers and manufacturers

Utilities

 

 

Next Steps

 

1. Discuss the merits of this proposal, if desired proceed to step 2.
2. Form a project board and develop memorandum of understanding with Wiscpsa.
3. Form a launch business plan
4. Develop a budget and raise start up capital.
5. Hire Kurt
6. Implement first projects.  

 

Alternative steps: No Director is initially hired and projects are started. This is the current course of conversations; I would not recommend it, as generally investment should be tied to paid oversight for the protection of investors and the stakeholders.

 

 

 

 

 

 

Community Energy Services

 

Plan B

Prepared by Chuck Learned

 

Mission

 

Accelerate the utilization of renewable energy at the neighborhood and community scale in the 8 county Madison region. Assist with the build out of a renewable energy economy.

 

Vision

A non profit service offering renewable energy education,  project development and management for solar, community scale wind, geothermal, biomass and other technologies with mature technology and emergent technology.

 

Services

There are many reasons why renewable energy needs an on the ground non profit organization to accelerate the installation of renewable energy. People, organizations and enterprises need assistance with:

• Considering multiple options where wind, geothermal, biomass, solar and other options can be offered separately, compared or utilized in a comprehensive energy offering.
• Bringing expertise to an energy investment conversation that is neutral and seeking to employ the best technology solutions.
• Piloting new technology and unique strategies that a for profit company might not consider, however utilizing grants for demonstration this becomes an option and the public will view the results as potentially more trustworthy. A non profit can also coordinate dual applications of technology between providers effectively.
• Understanding how everything physically works from a neutral source versus a specific vendor who has a sales agenda.

• Comparing products, understanding value and investment considerations.
• Researching and developing opportunities and organizing cooperatively owned and maintained installations.
• Aggregating sales and installation to bring efficiency to purchasing and installation.
• Financial coordination of incentives, facilitating public and private investment,  gifts and managing carbon credits.
• Coordinating the ongoing maintenance of systems under contract.
• Regulatory ordinances and compliance.

 

There is also a need to

·        Provide a go to source for moving conversations toward action,

·        Coordinate membership activities and communications

·        Marketing the renewable energy story and opportunities in a systematic fashion.

·        Make the whole procurement and installation process easier, less intimidating.

·        Facilitate grants, acquisitions and installations serving people with low income.

·        Offer Solar energy investment options such as:

1.      full service leasing  see Solar City http://www.solarcity.com/solarlease/SolarCityAbout.aspx?cm_sp=Global%20-%20Tab%20Design-_-SolarLease-_-Orange%20Button%20Left%20Nav

2.      Direct ownership by customer with financing assistance

3.      A percentage of a portfolio of units on leased roof tops or available spaces managed by Solar 2-10

 

Organization and Governance

 

This would be the same as Plan A with additional resources employed to round out the expertise or expand the capability of the Program Director. For example a Wind Energy Consultant that specializes in small scale community wind applications such as www.wesengineering.com could be a resource brought into a portfolio of expertise that is utilized. Wes I already know is up for supporting any community wind project.

 

Synergy

 

The same synergy as plan A applies here and more so as the realm of capability is expanded.  This author is very excited about the possibilities where technologies are combined to over come the limitations of stand alone technologies. For example I had learned how to build a solar PV and DHW combined unit in one encasement that would provide electricity and heat to a home. There are now companies preparing to offer hybrid products. One example is http://www.sundrumsolar.com/Home.html  There is a stellar example of combined technologies applied to a subdivision in Canada www.drakelanding.com  Geo thermal is placed into a circular pit and summer time solar heat is pumped into the basin. This technology is heating 90% plus of all the homes heat. You could combine all three in a hybrid as mentioned above and cover much of the power needs of a neighborhood in one package.  Community Energy Systems could facilitate the piloting of this system in a project serving to connect the dots and facilitate communication between all the parties.

 

This piloting of new technology requires patient conversations with prospective opportunities that can be well facilitated by a non-profit that seeks to serve the connecting, educating and coordinating role. The establishment of new businesses could well flow from strategic partnerships with promising technologies by arranging pilots, pre-commitments from customers and ensuring the due diligence is done. For example http://www.solrayo.com/SolRayo/SolRayo.html is a promising enterprise in the region that could extend the viability of solar and wind. Community Energy Systems could potentially work with SolRayo to provide pilots in schools or other places that could result in local business applications forming.  When you combine this with financing and an engaged membership of Tri Local returns you have synergy for building out jobs, businesses and local opportunities. There are many exciting emergent technologies emerging from R & D that will change the game I could list at least a dozen. Here is a simple solar air conditioning that we could potentially build some pilots for: http://www.energymatters.com.au/index.php?main_page=news_article&article_id=362   

 

Regardless of whether this group of supporters moves forward with this concept it will evolve in one form or another out of the Tri Local Returns or other venues as there is a definite need/value equation in combining these facets of services.

I am suggesting we hire Kurt as Director as he brings a passion to educate, demonstrate, bring people together and he has the science education background. This assumes he is ready to leave his current line of work.

 

 

Funders

Same as Plan A

 

Next steps

Same as Plan A

 

 

 

Ok, I posted it this time in the files section hopefully you can read it there. I can read it on my computer here, so its interesting the difference between our computers.