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C O W M E E T I N G 1 - 2 7 - 1 5 CITY OF MIDDLETON & MG&E SOLAR PARTNERSHIP 1 ---PAGE BREAK--- BACKGROUND CITY COUNCIL 2009 RESOLUTION (25 X 25) • In 2009 Council adopted a resolution (25x25) to support “procuring 25% of Middleton Municipal electricity from renewable resources by 2025.” MG&E's Electricity Sources* >99% Terrace Ave. Market Arcade Solar City of Middleton Municipal Energy Sources *12.3% of MG&E’s annual electric generation comes from renewable sources. Municipal usage - ~4,450,000 kWh / yr Market Arcade solar - ~23,000 kWh / yr 2 The 2010 EECBG project will help us reach 25 x 25 by saving ~210,121 kWh / yr ---PAGE BREAK--- CHALLENGES TO ACHIEVING 25 X 25 • Competition for Municipal capital budget funding. • Limited funding/nearly unlimited needs. • Previously proposed solar projects payback longer than Council desired. • Lack of incentives for renewable energy (grants and otherwise). • 30% Federal solar tax credit unavailable to municipalities. • 30% solar tax credit available to MG&E. • Logistics of current roof replacement schedules and solar installations. 3 ---PAGE BREAK--- MIDDLETON MUNICIPAL RENEWABLE ENERGY INITIATIVES • March 4, 2014, the Common Council directed staff to include solar in the construction of the Municipal Operations Center (MOC). • Staff from Administration, Finance Dept, Public Works Dept, Police Dept, and Planning Dept met to discuss solar options. • Discussions led to meetings with MG&E. • Discovered synergy of solar objectives; Middleton and MG&E: • Middleton: • 25x25 & Municipal Operations Center solar • MG&E: • Expansion of solar 1) capability 2) generation 3) market place 4 ---PAGE BREAK--- MIDDLETON/MG&E SOLAR PARTNERSHIP • Creating Partnership with MG&E: • Targets both Municipal and MG&E solar goals & objectives. • Solar goals & objectives of both organizations enhanced if solar is added to Police/Court Building. • Provides new solar capital financing source. • Enables the City to receive some benefits of the 30% Federal solar tax credit, otherwise only available to MG&E. • Expands solar concept to include Middleton City residents, in “Community Solar”; largest such project in Wisconsin. • Reduces Municipal solar cost thereby shortens the payback period. 5 ---PAGE BREAK--- MIDDLETON/MG&E SOLAR PARTNERSHIP • Partnering with MG&E the City government can: • Get a better per kW price for a Municipal-owned solar project and a higher IRR. • Increase kW generation on MOC roof (typically “net metering” would limit a MOC solar project to 100 kW). • Produce 25% of the Police Department’s electricity needs from the solar energy. • Single largest Municipal building demand; 24/7/365 6 ---PAGE BREAK--- MIDDLETON/MG&E SOLAR PARTNERSHIP • MG&E staff will present 3 scenarios or options of Middleton/MG&E partnership project. • Due to the complex project details and the limited time available tonight, please hold all questions to the end of the presentation, Thank you! 7