A genuine ray of sunshine in Edmonds: Community invited to invest in solar power, phase 2

Solar panels on the Frances Anderson Center rooftop.

By Todd Cloutier
Sustainable Edmonds

On a cold day in December, it’s easy to be a naysayer about the prospect of generating electricity from solar energy in Edmonds. This part of the country is roundly held up as the symbol of rainy-and-dreary.

Apparently, some people around Edmonds have questioned this conventional wisdom, and are putting their wallets behind it. The Edmonds Community Solar Co-Op, formed this year by Sustainable Edmonds board member Chris Herman, installed the array pictured here. It’s a 6-kilowatt system atop the Frances Anderson Center. You can see it above the Main Street Kids child care center along Dayton.

This array began generating power in mid-September, and has already produced over 650 kW-hrs of energy, which is right in line with initial estimates for this time of year. What makes this installation unique is that it isn’t a utility-owned system, or even a system purchased by a magnanimous person of capital, but rather, by a humble local co-operative.

Now, the ECSC is looking to expand this solar array in the upcoming year. Costs for made-in-Washington solar panels have come down significantly, and the co-op has an agreement with the City of Edmonds for additional roof space atop Frances Anderson Center to host a larger array. The financial plan is outlined below, but numbers can be hard to read in isolation, so how about an explanation?

Here’s how it works. Anyone in the state of Washington can join the solar co-cp by paying a joining fee of $25, and adding money to the co-op in increments of $1,000. The co-op contracts out for the installation of the array, including all of the permitting, engineering, manufacture and mounting. To help with the finance and legal complications that daunt us mere mortals, the co-op has enlisted the services of Seattle-based Tangerine Power. That’s why the sign-up page has a tangerine on it, and why each $1,000 addition to the co-op is called a Sun Slice.

How does the money come back to the co-op? Two ways. First, the energy that the solar array generates is used by the Frances Anderson Center. The City of Edmonds pays the co-op a reduced rate for this energy, in exchange for the use of the roof.
Secondly, and more substantially, community solar power generation is incentivized through the State of Washington. The state pays the co-op $1.08 for each kW-hour generated. All of these funds are pooled, and co-op members receive back money based on how many Sun Slices they initially purchased. This arrangement will exist until 2021, when the Community Solar regulations expire.

So why the push now for more people to join? It’s simple — taxes, and time.

First, taxes. Federal solar incentives provide co-op members 30 percent of their initial investment back in the form of a tax credit. However, the size of that tax credit is locked in as of Dec. 31 – at least 5 percent of the total system cost must be invested by year’s end in 2011. So, even if there is a huge and enthusiastic growth of interest in community solar in 2012, the array size will be limited by how much was invested in 2011.

Second, time. As outlined above, the majority of the payback to co-op members is through the Washington State Community Solar program incentives. These incentives, which started in 2011, are set to expire in 2021. The later an array is installed, the less time it will earn these incentive payments. Of course, the array will still make power well beyond 2021, but we people of modest means often look to at least break even.

Do the numbers work out? Yes. The table below summarizes the numbers for a maximum-sized additional array of 60 kW. Smaller arrays would be proportionally structured. The bottom line – the array will do better than break even, based on state production incentives, by 2021.

What’s NOT included in the analysis below is what happens to the array after 2021. The co-op has the option of selling the array at the end of the community solar period, or even signing up with the City of Edmonds for a continued power production agreement. The roof on Frances Anderson is fairly new, and the array will have decades of rated production left in it, so there will be good reason to pursue an arrangement like this.

Business Case Numbers for Phase II of the ECSC Solar Installation (click to expand):

It’s easy to get cynical in these waning days of autumn. But what we have here is a genuine ray of sunshine.

Community members of modest means, joining together, making some clean energy, and offsetting other energy sources in the process.

To those who doubted at the outset that our little community center in Edmonds could work as a site for generating clean, renewable, made-in-Washington power, we have a holiday message.

Yes, Virginia, Edmonds does get enough sun for solar panels to work. And work well.

While the 6kW array atop Frances Anderson is good, we hope you’ll join the ECSC in investing in a larger Phase 2 installation, preferably before Dec. 31, but most importantly, when you’re ready.

To join the Edmonds Community Solar Co-Operative, you must reside in the State of Washington. Not necessarily Edmonds, or even Snohomish County, but anywhere in our state.

Sign up at the Tangerine Power website.

If you have questions, you can reach Chris Herman, the president of the Solar Co-Op, through us here at Sustainable Edmonds.

Email us at SustainableEdmonds@gmail.com, and we’ll forward your questions to Chris. You can also post questions as comments to this article, and Chris will answer them here, which has the added benefit of making both question and answer available for others to read.

When you sign up through the Tangerine Power website, you can send them funds electronically, or, to avoid losing a percentage of your hard earned cash to the transaction charges of electronic commerce, you can set up for payment by check. This will ensure more of your investment goes to installing arrays, versus paying for the convenience of PayPal.

So drive by the Frances Anderson Center, and smile in the knowledge that a group of concerned and motivated people can make a difference. We already have. And now, with your help, we’d like to do it again!

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