Currently our Oregon focus is in three different areas, although our business model is applicable to any system "host" with a large roof space and an attractive solar resource. The size of the investment is limited only by the investor's tax appetite. A 30 Kilowatt system, which costs under $300,000, is our minimum size. This size system needs approximately 3,000 square feet and provides enough power to offset the energy consumption for multiple rooms within the existing facility.
The three focus areas are:
Investor's Benefits
Different investors have different objectives. We believe our model is flexible enough to match many of these objectives. The benefits for a low-risk tax-equity investor include a projected financial return of about 9%.
Financing this turnkey operation provides an opportunity for taxpayers to enhance their economic, social and environmental contributions. Corporations many times refer to these investments as "triple bottom line" initiatives. It is not common for all of these initiatives to be achieved within one investment; many of our projects make this possible.
As a participant within our projects, each investor helps strengthen their identity by making the statement that they are supporting their values.
These values include:
- Economic — Competitive market based returns, free market capitalization, renewable energy industry expansion and an increasingly competitive alternative to fossil fuel consumption
- Social — National security, energy independence, local job creation, support of innovation, personal and youth education as well as consumer, employee, community and shareholder inspiration.
- Environmental — Avoidance of green house gases, strip mining, oil drilling, radiation creation, water diversion and all of the "externalities" like global warming, healthcare costs, superfund remediation as well as ecosystem and habitat destruction which increasingly result from these practices.
The bottom line is that funding intelligent investments like these today will pay quality dividends for everyone in the future.
System "Host" Benefits
A system host can be any entity with a large roof and an attractive solar resource. Our goal is make these systems "worry free" for our hosts. CSV is there to make sure your facility is our priority. As a result of hosting a system, it may be necessary for us to update the roof. The Energy Trust of Oregon requires a minimum roof life expectancy of fifteen years. Depending upon the system's host objectives, these installations and roofing costs may be done without their capital outlay.
One 30 Kilowatt installation may generate enough "green" power for multiple rooms. Depending upon the contractual structure and partners involved, there should be a reduction in energy cost as well as enhanced price stability. This is an appreciated benefit, especially with the recent and expected rate increases.
As a matter of fact, the Oregon investor owned utility rates have increased over 26% in the past nine years. A greater portion of the electricity provided is derived from coal purchased in the open market. This lack of price control has motivated each utility to add or look to add more power generation resources. Proposed resources include primarily coal, natural gas, hydroelectric and wind. In addition, the transmission grid has been at peak capacity, which makes even larger capital expenditures inevitable to distribute this newly developed power. All of these costs have been and will continue to be passed down to the consumer in increased rates.