April 18, 2008

Sacramento, CA, USA: SMUD Awards "SolarShares" 1 Megawatt PV System Contract

Sacramento Municipal Utility District (SMUD) customers will soon be able to buy blocks of solar power even if they do not own a solar electric system. SMUD awarded a contract to enXco to build a one-megawatt solar panel array, the power from which SMUD will buy and then sell to interested customers through its SolarShares pilot program. This means any SMUD customer can now be a solar energy owner regardless of where they live and without committing thousands of dollars to buy their own solar photovoltaic panels. This includes renters and occupants of multi-unit buildings.

The program is the first of its kind in California as well as the largest of its type in the nation and provides all SMUD customers affordable options to purchase solar power. For less than $5 per month and up to about $30 per month, most customers can ensure that at least 10 percent and up to 50 percent of their energy comes from the new SMUD “solar farm.”

Actual price and percentage of consumption will depend on the customer’s annual energy use and the size of the “virtual” PV system they select. Customers will subscribe at a fixed, SMUD-subsidized price in increments that match or complement their lifestyle, energy use, and support for solar energy. Customers could even take their solar power with them if they move within SMUD service territory.

The solar farm will be located on property near the town of Wilton in southern Sacramento County. Construction begins soon and the array is expected to begin delivering clean, renewable solar power in July.

Customers can begin pre-enrollment in SolarShares sooner and benefit from having choices for supporting the development of a more sustainable energy supply. The program benefits the community as well, as it will add to the supply of local, clean, renewable power in the SMUD service area and help meet peak energy demand while benefiting the environment.

SMUD received 27 bids and proposals from solar developers for one-megawatt projects in the District’s service area. The contractor, enXco, was chosen based on price, demonstrated experience with large-scale renewable energy installations, and its expected commercial operation date for this project. This array will feature a fixed-tilt system using First Solar modules, which provide generation even in low light.

Putting big blocks of solar on the ground in open fields, or on existing commercial buildings, as opposed to mounting small systems on thousands of rooftops, will reduce installation costs. Placing large solar installations near SMUD substations would further reduce costs.

While enXco as a private entity can take advantage of federal tax incentives to reduce installation costs, SMUD also benefits as the utility can buy solar power at a lower price and pass the savings on to its customers. SMUD also has the option of working with enXco to expand capacity as the SolarShares programs grows. SMUD sees the program as solar for everyone, as it would increase customer equity by making solar-generated electricity affordable for all customer classes and provide a choice to customers who cannot or would not participate in current SMUD solar programs due to site problems, installation issues, up-front costs, or building ownership.

SMUD also expects SolarShares to become a program other utilities want to emulate because it will broaden and transform the market for solar by taking advantage of economies of scale to lower the up-front cost of PV. SolarShares is similar to the SMUD Greenergy® program, which provides an opportunity for customers to buy renewable or “green” power by paying an extra charge on their monthly bill. SMUD then matches up to 100 percent of their electric needs with purchases of renewable resources for use on the SMUD power system. The very popular SMUD Greenergy program is the fifth-largest green pricing program in the nation with more than 30,000 customers enrolled.

Further details about: SMUD , enXco, First Solar