Sullivan Solar Power given Station 5 contract

Sullivan Solar Power has been awarded the contract to provide photovoltaic energy at the North County Fire Protection District's new Station 5 on Olive Hill Road.

A 5-0 NCFPD board vote Jan. 26 awarded the contract to Sullivan Solar Power for the San Diego company's bid amount of $235,538. Sullivan Solar Power will provide a 54,000-watt direct current system and the work is expected to be complete by the end of May.

"We're very excited. It will help us to dramatically realize immediate savings," said NCFPD fire chief Stephen Abbott.

In April 2013, NCFPD staff conducted a comprehensive analysis of energy consumption and costs at district facilities which included the feasibility of solar electricity systems at various locations. The study identified four existing fire stations, the future Station 5, and the fleet maintenance facility as viable sites for photovoltaic arrays.

In December 2013, the NCFPD board authorized district staff to apply for a California Energy Commission loan with a one percent interest rate and to develop a request for proposals to provide the solar facilities.

In July 2014, the NCFPD board awarded Sullivan Solar Power a $534,507 contract to provide solar-generated electricity at Station 1 (Ivy Street), Station 2 (Winterwarm), Station 3 (Olive Hill), Station 6 (Rainbow), and the fleet maintenance facility.

Because the new Station 5 was under construction at the time, the Bonsall fire station was not included in the scope of work. The California Energy Commission loan allowed NCFPD to finance the original project over a 12 1/2-year period and service the debt for less than the district's energy expenditures prior to the installation of the photovoltaic equipment. In October 2014, the NCFPD board voted to expand the length of the solar generation facility planned as a carport behind the fleet maintenance facility, allowing for covered parking for additional NCFPD fleet vehicles as well as additional solar generation.

The district analysis at the time the initial contract was awarded in July 2014 predicted a payback period between 10 and 11 years with a 30-year savings of $1,240,299.83. The actual savings are projecting to approximately $50,000 per year.

The December 2013 project cost determinations did not include the future Station 5, although that cost was to include a carport for the fire station. The solar project will utilize both roof-mounted and carport-based solar arrays.

On Jan. 30, 2015, the County of San Diego issued NCFPD a certificate of occupancy which allowed for habitation and visitors at the new Station 5. Although Station 5 was built to energy-efficient standards, the district projected monthly energy expenditures of $1,200 to $1,600 due to the size of the building and the system installed.

On April 28, 2015, the NCFPD board voted 4-0 with Kathleen Thuner absent to approve the application for a California Energy Commission loan to provide solar electricity at the new Station 5. The board action also approved the expenditure of $1,250 to reserve a California Solar Initiative rebate and authorized staff to develop a request for proposals for the actual project upon approval of the financing.

The California Energy Commission offers one percent financing to cities, counties, school districts, and special districts for energy generation projects. CEC engineers perform an independent analysis of proposed solar projects which will validate production, efficiency, and economic assumptions. The repayment term is amortized based on annual energy cost savings, and the district is billed semi-annually.

Since the fire district is a tax-exempt agency, it is not eligible for federal tax credits or state rebates given for residential solar installations. The California Solar Initiative, which is administered by the California Center for Sustainable Energy, has a rebate program for governmental and other tax-exempt installations. That rebate model has two structure methods: a performance-based incentive which is based on efficiency and paid quarterly over the first five years of system operation and an expected performance-based buydown based on system efficiency and paid upon commissioning. The performance-based incentive is required on installations exceeding 10 kilowatt hours. A rebate reservation fee reserves the rebate amount for one year and is refunded upon system commissioning.

NCFPD staff issued a request for proposals (RFP) with a Dec. 23, 2015, deadline. The RFP specified the design of a system for a desired consumption offset range of 90 percent to 100 percent. Although the system sizes varied between the two bids received, both were within that specified offset range. The bids were evaluated based on responsiveness to the specifications detailed in the RFP, production assumptions, fiscal analysis, and value added proponents. Baker Electric submitted a bid of $256,451 for a 38,000-watt direct current system.

An expected performance-based buydown rebate of $21,000 will be paid upon the completion of the project and the $1,250 deposit will also be returned once the work is completed.

"It will allow us to take advantage of solar energy credits while they're still available, so we're blessed to have the opportunity," Abbott said.

The California Energy Commission loan of $227,475 will be paid over 20 years with annual payments of $12,575. The photovoltaic system is expected to generate 82,718 kilowatt hours during its first year in operation which would offset 92 percent of the station's energy use and avoid approximately $16,135 in energy costs.

"We should be slightly in the black even in the first year if everything goes according to plan," Abbott said.

NCFPD expects a payback period of between 11 and 12 years with a 20-year cumulative savings of more than $400,000.