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Practical Farmers of Iowa On-Farm Solar PV January 23 rd , 2016

50% Bonus Depreciation

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Practical Farmers of IowaOn-Farm Solar PV

January 23rd, 2016

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Presenters• David Ausberger – Practical Farmer from Jefferson, IA

• Randy Skeie – Owner of EcoWise Power in Des Moines, IA

• Brad Oeltjenbruns - Grant Writer - Ebenezer Management in Dayton, IA

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David Ausberger – Jefferson, IA• 5.94kW Solar PV array

• Installed in FEB 2014

• 22 SolarWorld 270/watt modules

• 11 Enphase M215 microinverters

• 11 Enphase M250 microinverters

• 1st year production = 8,332 kWhs

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Randy Skeie – EcoWise Power• Owner of EcoWise Power - Des Moines, IA

• www.ecowisepower.com

• Involved in renewable energy industry since 2008

• Started EcoWise Power in 2012

• Authorized Sales Representative for Harvest Energy Solutions

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Harvest Energy Solutions• Harvest Energy Solutions - Jackson, MI - www.harvestenergysolutions.com

• Harvest Energy Solutions is a manufacturer, system designer and installer who’s primary focus is on serving the agricultural market

• Harvest currently does business in 11 Midwest states:• (AR, IA, IL, IN, KY, MI, MN, MO, OH, TN, WI)

• Harvest is NABCEP Certified (Professional Installation & Technical Sales)• North American Board of Certified Energy Practitioners

• Engineering/design staff in-house• In business since 2006• Harvest’s team has a history of over 8MW (megawatts) of solar installations

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Harvest Energy Solutions Corporate Office

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Harvest Energy Solutions

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Harvest Energy Solutions

• 4 Construction Crews

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Midwest Solar Installations

Chateau Chantal Winery – Traverse City, MI

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Midwest Solar Installations

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Brad Oeltjenbruns – Dayton, IA

Grant Writing Services

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Does Solar Really Work in Iowa?

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Iowa’s Solar Potentialwww.iaenvironment.orgIn 2014, the Iowa Environmental Council released Real Potential, Ready Today: Solar Energy in Iowa, a publication that provides an in-depth look at the many benefits solar PV offers beyond energy including: job creation, consumer savings, cleaner air and water, innovation and technology investment, and improved stability in the electric grid. The report also highlights prominent examples of solar installations from around the state and explains common public policies used in Iowa and nationwide to support solar energy.

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Iowa’s Solar Potential

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Why Consider Solar?• Energy independence• Protection against rising energy costs• Completely eliminate or drastically reduce your electric bills• Create jobs and help local economy• Increase your property value• Help protect the environment• Earn a great return on your investment!

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Why Consider Solar?Incentives!

www.dsireusa.org

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Efficiency First!• There is a saying in the industry:

• “The cheapest energy is the energy you don’t use in the first place!”

• When applied to Solar PV:• “The cheapest energy is the energy you don’t have to produce in the first place!”

• Many energy efficiency upgrades can offer a better ROI than solar• Saving kWhs ($) - smaller solar PV system is needed and investment is less

• Examples - LEDs, appliances, fans, motors, insulation, windows, etc.• Check with your utility to see if they offer low, or no cost energy audits and/or rebates

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Efficiency First!

www.energystar.gov

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Incentives• Federal Investment Tax Credit (ITC) – 30% tax credit on total system cost

regardless if it’s a residential or commercial installation (Federal tax credits were recently extended)

• Iowa Solar Energy System Tax Credit – 50% of ITC up to a maximum of $5K for residential systems and $20K for commercial systems

• MACRS Depreciation – Value is equal to customer’s tax bracket multiplied by total system cost multiplied by 85%

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Other Incentives• USDA Rural Energy for America Program (REAP) Grant – Ag producers and rural

small businesses can apply for grants that cover up to 25% of project costs

• Utility Incentives / Rebates – Every utility is unique in this regard; therefore, research is needed to see what (if anything) is available

• Other Incentives – It is not out of the ordinary for Harvest or our customers to stumble upon other grants, rebates, and incentives. Networking, research, and shear luck can attribute to finding these opportunities

• SRECs – Solar Renewable Energy Credits (SRECs) may soon be available in Iowa

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More Incentives• Property Tax Exemtion for Renewable Energy Systems – In Iowa, the

market value added to a property by a solar or wind energy system is exempt from the state's property tax for 5 full assessment years

• Sales Tax Exemtion – Renewable Energy Equipment Exemption in Iowa for solar, wind & hydroelectric

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Federal Investment Tax Credit (ITC)• The Federal Investment Tax Credit (ITC) is a tax credit that can be claimed on federal corporate

income taxes for 30% of the cost of a solar photovoltaic (PV) system that is placed in service during the tax year�

• Systems must commence construction on or before December 31, 2019, to claim the 30% ITC

• ITC will decrease to 26% for systems commencing construction in 2020

• ITC will decrease to 22% for systems commencing construction in 2021

• ITC will decrease to 10% for systems commencing construction in 2022 and thereafter.

• For solar PV systems installed on or after October 4, 2008, there is no maximum amount that can be claimed through the ITC, and it may be used to offset either income taxes or alternative minimum taxes

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Federal Investment Tax Credit (ITC)The Federal ITC is a tax credit—a dollar-for-dollar reduction in taxes owed

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Federal Investment Tax Credit (ITC)• FEDERAL ITC CARRYBACK AND CARRYFORWARD RULES

• Unused tax credits may be carried back 1 year and forward 20 years.

• After 20 years, one half of any unused credit can be deducted, with the remaining amount expiring

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Iowa Solar Energy System Tax Credit• The Iowa Solar Energy System Tax Credit is a tax credit that can be claimed on Iowa

income taxes for solar photovoltaic (PV) systems placed in service during the tax year

• Iowa Tax Credit = 50% of the Federal ITC with maximums as follows:• $20K on ag/commercial systems

• $5K on residential systems

• Based on available annual funding of $5M�

• Systems must be commissioned on or before December 31, 2016 to claim the credit

• Bills are currently before Iowa Legislature to extend these credits and funding limits

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Depreciation Benefits• MACRS – Modified Accelerated Cost-Recovery System

• Accelerated Depreciation

• Bonus Depreciation• 50% through 2017

• Section 179 Deduction

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MACRSMACRS - Modified Accelerated Cost-Recovery System• A taxpayer claiming the ITC for a solar PV system can also take advantage of accelerated depreciation to

reduce overall cost of a PV installation

• When the Federal ITC is claimed, accelerated depreciation rules allow 85% of the tax basis to be depreciated over a 5-year period

• Because depreciation is considered an expense, having a larger amount to depreciate during the tax year results in a smaller overall tax liability

• Unused depreciation can be carried back 2 years and forward 20 years on a 200% declining balance basis

• This means that the 85% of solar PV system costs that a business can depreciate are not spread out evenly across the 5-year depreciation period; instead, the business is allowed to deduct a larger portion of this amount in earlier years, giving it the benefit of a greater immediate reduction in federal tax liability

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Bonus Depreciation50% Bonus Depreciation will be extended through 2019

• Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017

• Bonus depreciation will phase down to 40 percent in 2018

• Bonus depreciation will phase down to 30 percent in 2019

• Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached

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Section 179 Deduction• www.section179.org• The "Protecting Americans from Tax Hikes Act of 2015" (PATH Act) was passed by both the House and Senate

and signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000

• Until further notice, Section 179 is permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years

• 2016 Deduction Limit = $500,000• Equipment must be financed/purchased and put into service by the end of the day, 12/31/2016.

• 2016 Spending Cap on equipment purchases = $2,000,000• Maximum amount that can be spent on equipment before the Section 179 Deduction begins to be reduced on a dollar for dollar basis

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Solar Renewable Energy Credits (SRECs)• Solar Renewable Energy Credits (SRECs) may soon be available in Iowa

• What is an SREC?

• Solar Renewable Energy Certificates (SRECs), or Solar Renewable Energy Credits, are a form of Renewable Energy Certificate or "Green tag". SRECs exist in states that have Renewable Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a "solar carve-out”

• 1 SREC = 1 mWh or 1,000 kWhs of generation

• SRECs are a commodity so the value changes

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Return on Investment (ROI)This is an example of a simple Return on Investment (ROI) calculation applicable to customers with net-metering in Iowa.

Note: Pricing shown does not reflect an actual quotation

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USDA REAP GrantUSDA Rural Energy for America Program (REAP) Grant

The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance.

Brad Oeltjenbruns – Ebenezer Management

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Return on Investment (ROI)This is an example of a simple Return on Investment (ROI) calculation applicable to customers with net-metering in Iowa.

Note: Pricing shown does not reflect an actual quotation

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Solar Operating LeaseOperating Lease Basics:

• Bank owns and maintains the system for a period of 7 years in return for lease payments

• 30% Investment Tax Credit (ITC) and depreciation benefits are kept by the bank in return for lower lease payments• You can still apply for/claim the Iowa Solar Energy System Tax Credit

• At end of the lease term, system is purchased for fair market value (15% on a 7 year lease), or the lease can be renewed for another year

• In a nutshell: The lessee is simply acquiring the right to use the system for a limited time in exchange for periodic rental payments

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Solar Operating LeaseOperating Lease Benefits:• Operating Leases require no initial investment• Lease payments are lower because the Lessor (Bank) takes the tax benefits into account

• For most customers, the effective interest rate is actually negative

• Operating Leases are “off balance sheet” for the Lessee; no collateral required• Lease payments can be expensed and written off on income taxes• Asset can be depreciated after buyout, saving tax dollars• Again, you can still apply for/claim the Iowa Solar Energy System Tax Credit on the system

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Solar Operating LeaseThis is an example pro-forma on a Solar Operating Lease applicable to customers with net-metering in Iowa

Note: Pricing shown does not reflect an actual quotation

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AERLPAlternative Energy Revolving Loan Program (AERLP)

www.iowaenergycenter.org• The AERLP provides low interest financing to individuals and

organizations building alternate energy production facilities in Iowa

• The energy production facility must be located in Iowa

• The loans are not available for refinancing existing loans

• 0% interest on ½ of financed amount

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Utility Policies• Iowa law requires ALL utilities to allow for

interconnection of renewable energy systems• Net-Metering is available to customers of Iowa’s

investor-owned utilities, Interstate Power & Light (Alliant Energy) and MidAmerican Energy • Systems up to 500kW

• Net Excess Generation (NEG) is credited on a per kilowatt-hour (kWh) basis• Retail rate

• Any excess kWh credits carry over indefinitely

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Iowa Utilities

http://www.accessenergycoop.com/http://www.acrec.com/contentdisplay.asphttp://www.ahec.coop/http://www.boonevalleyrec.com/http://www.butlerrec.coop/http://www.calhounrec.coop/http://www.iowa.gov/iub/http://www.cvrec.com/http://www.cecnet.net/http://www.consumersenergy.coop/http://www.ecirec.com/http://www.easterniowa.com/http://www.feckalona.com/http://www.farmersrec.com/http://www.federatedrea.coop/http://www.franklinrec.coop/http://www.fmcs.coop/http://www.grundycountyrecia.com/http://www.grundyec.com/http://www.guthrie-rec.coop/http://www.hcrec.coop/http://www.hawkeyerec.com/

http://www.heartlandpower.com/http://www.humboldtrec.coop/http://www.ilec.coop/http://www.linncountyrec.com/http://www.lyonrec.coop/http://mvec.com/http://www.midlandpower.com/http://www.nvrec.com/http://www.noblesce.coop/http://www.nwrec.com/http://www.osceolaelectric.com/http://www.pella-cea.org/http://www.iowa.gov/iub/http://www.prairieenergy.coop/http://www.rvec.coop/http://www.southerniowarec.coop/http://www.swiarec.coop/http://www.tiprec.com/http://www.iowa.gov/iub/http://www.ueci.coop/http://www.wipco.com/http://woodburyrec.com/

http://www.aftoniowa.com/cityhall.htmlhttp://www.akronia.orghttp://www.netamu.comhttp://www.alta-tec.nethttp://www.iowa.gov/iub/http://www.altoniowa.orghttp://www.cityofames.org/electricwebhttp://www.anitaiowa.comhttp://www.anthoniowa.comhttp://www.aplingtonia.comhttp://www.a-m-u.comhttp://www.auburniowa.nethttp://www.aureliaia.comhttp://www.bancroftiowa.comhttp://www.bellevueia.comhttp://www.iowa.gov/iub/http://www.cityofbloomfield.orghttp://www.citybreda.comhttp://www.brooklyniowa.com/utilities.htmlhttp://www.buffaloiowa.orghttp://www.burtiowa.comhttp://www.iowa.gov/iub/http://www.carlisle-ia.govhttp://www.cascadeiowa.org

http://www.cfu.net/http://coggonia.org/http://www.crmu.nethttp://adamscountyiowa.comhttp://www.iowa.gov/iub/http://www.danvilleiowa.comhttp://www.daytonia.govoffice2.comhttp://www.dmuonline.comhttp://www.cityofdenveriowa.comhttp://www.dikeia.comhttp://www.cityofdurantiowa.comhttp://dysartiowa.com/home.htmhttp://www.iowa.gov/iub/http://www.eldridge.orghttp://ellsworthiowa.comhttp://www.cityofestherville.orghttp://www.fairbank-ia.orghttp://www.iowa.gov/iub/http://www.fondaiowa.comhttp://www.iowa.gov/iub/http://www.cityofforestcity.comhttp://www.fredericksburgiowa.comhttp://www.cityofglidden.orghttp://www.gowrie.org/index-two.htm

htttp://www.graettinger.nethttp://www.graftoniowa.com/contact.phphttp://www.iowa.gov/iub/http://www.greenfieldiowa.com/http://www.gcmuni.nethttp://www.cityofguttenberg.comhttp://www.harlannet.comhttp://www.hartleyiowa.comhtttp://www.cityofhawarden.comhttp://www.hintoniowa.comhttp://www.hopkintoniowa.orghttp://www.cityofhudsonia.comhttp://www.indytel.com/http://www.I-M-U.comhttp://keosauqua.com/local_info.htmhttp://www.iowa.gov/iub/http://www.laportecityia.com/gov/utilitieshttp://www.lakemillsiowa.comhttp://www.lakeparkia.comhttp://www.lakeview-ia.comhttp://www.lamoni-iowa.comhttp://www.citylarchwood.comhttp://www.laurens-ia.comhttp://www.iowa.gov/iub/

http://www.lehighiowa.orghttp://www.lenoxia.comhttp://www.livermoredaze.orghttp://www.longgroveia.orghttp://www.manillaia.comhttp://www.manningia.comhttp://mapleton.comhttp://www.maquoketaia.comhttp://www.iowa.gov/iub/http://www.iowa.gov/iub/http://www.milford.ia.ushttp://www.montezuma.orghttp://mountpleasantiowa.orghttp://www.mpw.orghttp://www.iowa.gov/iub/http://www.ci.new.hampton.ia.ushttp://www.newlondoniowa.orghttp://www.ogdeniowa.nethttp://www.oppd.com/index.htmhttp://www.onawa.comhttp://www.orangecityiowa.comhttp://www.orientiowa.comhttp://www.osage.nethttp://www.cityofpanora.comhttp://www.iowa.gov/iub/http://www.paullinaiowa.nethttp://www.cityofpella.comhttp://www.pocahontasiowa.comhttp://www.prestoniowa.orghttp://www.primghar.comhttp://www.readlyn.comhttp://www.remseniowa.nethttp://www.iowa.gov/iub/

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26 IOWA UTILITIES BOARDELECTRICAL SERVICE AREA

REFERENCE MAP

Information as of: 11-Mar.-2013

Boundaries follow section, half section, quartersection, or natural barriers except as dimensioned.For updates or detail maps visitwww.state.ia.us/government/com/util/energy.

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A B C D E F G H I J K

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Key #12345678910111213141516171819202122

CompanyAccess Energy Coop.Allamakee-Clayton Elec. Coop. IncAtchison-Holt Elec. Coop., MOBoone Valley Electric Coop.Butler County Rural Electric Coop.Calhoun County Rural Electric Coop.Cass Electric Coop.Chariton Valley Electric Coop. Inc.Clarke Electric Coop. Inc.Consumers EnergyEast-Central Iowa Rural Electric Coop.Eastern Iowa Power CompanyFarmers Electric Coop.Farmers Electric Coop. Inc.Federated Rural Electric, MNFranklin Rural Electric Coop.Freeborn-Mower Coop., MNGrundy County Rural Electric Coop.Grundy Electric Coop., MOGuthrie County RECHarrison County RECHawkeye REC

HeadquartersMount PleasantPostvilleRock Port, MORenwickAllisonRockwell CityWebster CityAlbiaOsceolaMarshalltownUrbanaWiltonKalonaGreenfieldJackson, MNHamptonAlbert Lee, MNGrundy CenterTrenton, MOGuthrie CenterWoodbineCresco

LocationJ-7J-1B-7E-2G-2D-3E-3G-6G-6F-4I-3J-5I-5D-6D-1F-2F-1G-3F-7D-5A-5H-1

Key #232425262728293031323334353637383940414243

CompanyHeartland Power CooperativeIowa Lakes RECLinn County Rural Electric Coop.Lyon RECMaquoketa Valley Electric Coop.Midland Power Coop.Nishnabotna Valley RECNobles Cooperative Electric, MNNorth West RECOsceola Electric Cooperative, Inc.Pella Cooperative Electric AssociationPleasant Hill Community LinePrairie Energy Coop.Raccoon Valley Electric CoopSouthern Iowa Electric Coop. Inc.Southwest Iowa Rural Electric CooperativeT.I.P. Rural Electric Coop.Tri-County Electric Coop., MNUnited Electric Coop., MOWestern Iowa Power Coop.Woodbury County REC

HeadquartersThompsonEsthervilleMarionRock RapidsAnamosaJeffersonHarlanWorthington, MNOrange CitySibleyPellaWebster CityClarionGliddenBloomfieldCorningBrooklynRushford, MNMaryville, MODenisonMoville

LocationF-1C-1I-4A-1J-4E-4C-5A-1A-1B-1G-5E-3E-2C-4H-7D-6H-5I-1C-7B-4A-3

RURAL ELECTRIC COMPANIES Municipal NameAfton MunicipalAkron MunicipalAlgona MunicipalAlta MunicipalAlta Vista MunicipalAlton MunicipalAmes MunicipalAnita MunicipalAnthon MunicipalAplington MunicipalAtlantic MunicipalAuburn MunicipalAurelia MunicipalBancroft MunicipalBellevue MunicipalBigelow, MN MunicipalBloomfield MunicipalBreda MunicipalBrooklyn MunicipalBuffalo MunicipalBurt MunicipalCallender MunicipalCarlisle MunicipalCascade Municipal

LocationE-6A-2E-1C-2H-1A-1F-4D-5B-3G-2C-5C-3B-2E-1K-3B-1H-7C-4H-5K-5E-1D-3F-5J-3

Municipal NameCedar Falls MunicipalCoggon MunicipalCoon Rapids MunicipalCorning MunicipalCorwith MunicipalDanville MunicipalDayton MunicipalDenison MunicipalDenver MunicipalDike MunicipalDurant MunicipalDysart MunicipalEarlville MunicipalEldridge MunicipalEllsworth MunicipalEstherville MunicipalFairbank MunicipalFarnhamville MunicipalFonda MunicipalFontanelle MunicipalForest City MunicipalFredericksburg MunicipalGlidden MunicipalGowrie Municipal

LocationH-3I-3D-4D-6E-2J-7E-3C-4H-2G-3K-5H-4J-3K-5F-3D-1I-2D-3D-2D-6F-1H-1D-4E-3

Municipal NameGraettinger MunicipalGrafton MunicipalGrand Junction MunicipalGreenfield MunicipalGrundy Center MunicipalGuttenberg MunicipalHarlan MunicipalHartley MunicipalHawarden MunicipalHinton MunicipalHopkinton MunicipalHudson MunicipalIndependence MunicipalIndianola MunicipalKeosauqua MunicipalKimballton MunicipalLa Porte City MunicipalLake Mills MunicipalLake Park MunicipalLake View MunicipalLamoni MunicipalLarchwood MunicipalLaurens MunicipalLawler Municipal

LocationD-1G-1E-4D-6G-3J-2C-5C-1A-1A-2J-3H-3I-3F-5I-7C-5H-3F-1C-1C-3E-7A-1D-2H-1

Municipal NameLehigh MunicipalLenox MunicipalLivermore MunicipalLong Grove MunicipalManilla MunicipalManning MunicipalMapleton MunicipalMaquoketa MunicipalMarathon MunicipalMcGregor MunicipalMilford MunicipalMontezuma MunicipalMount Pleasant MunicipalMuscatine MunicipalNeola MunicipalNew Hampton MunicipalNew London MunicipalOgden MunicipalOmaha Public Power District, NEOnawa MunicipalOrange City MunicipalOrient MunicipalOsage MunicipalPanora MunicipalPaton MunicipalPaullina MunicipalPella MunicipalPocahontas MunicipalPreston MunicipalPrimghar MunicipalReadlyn MunicipalRemsen MunicipalRenwick Municipal

LocationE-3D-7E-2K-5C-4C-4B-3K-4C-2J-1C-1H-5J-6J-5B-5H-1J-6E-4A-6A-4A-1D-6G-1D-5E-4B-1G-5D-2K-4B-1H-2A-2E-2

Municipal NameRock Rapids MunicipalRockford MunicipalSabula MunicipalSanborn MunicipalSergeant Bluff MunicipalShelby MunicipalSibley MunicipalSioux Center MunicipalSpencer MunicipalStanhope MunicipalStanton MunicipalState Center MunicipalStory City MunicipalStratford MunicipalStrawberry Point MunicipalStuart MunicipalSumner MunicipalTipton MunicipalTraer MunicipalVillisca MunicipalVinton MunicipalWall Lake MunicipalWaverly MunicipalWebster City MunicipalWest Bend MunicipalWest Liberty MunicipalWest Point MunicipalWestfield MunicipalWhittemore MunicipalWilton MunicipalWinterset MunicipalWoodbine MunicipalWoolstock Municipal

LocationA-1G-1K-4B-1A-3B-5B-1A-1C-1E-3C-6G-4F-4E-3I-2D-5H-2J-4H-3C-6I-4C-3H-2E-3D-2J-5J-7A-2D-1J-5E-6B-5E-3

1731 15

33

3333

33

32

15 15

40

3 4219 19

41 4123

0 10 20 30 40 50

Kilometers

03-11-13

28

Utility Identification

Amana Society Service

Interstate Power and Light Company (IPL)

MidAmerican Energy (MAE)

Municipal (see Key below)

Rural Electric Companies (see Key below)

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Iowa Utilities Board• On-site, customer-owned electric generation installations, such as solar, wind, or

biomass, have become increasingly popular in Iowa. Many of these facilities are connected to the electric grid which involves the local utility provider. The Iowa Utilities Board (Board) has regulatory authority over the investor-owned utility but has limited authority (service, safety, and engineering issues) for the municipal electric and rural electric cooperative utilities in Iowa

• The Board's Consumer Informational Guide for On-Site Generation was developed to help residential or small businesses who are considering installing electric generation on their property. The guide also includes links to additional information which may be useful to make an informed decision about installing on-site generation

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Iowa Utilities Board• iub.iowa.gov

• iub.iowa.gov/on-site-generation

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Utility Policies• RECs and Municipal Utilities have their own policy on grid-tied solar. Some utilities

publish this information on their website, but it is always good to pick up the phone and contact the utility company to confirm their current policies have in place.

• This is critical to the system sizing and maximizing ROI.• Utilities will typically have requirements having to do with the following:

• Type of interconnection (Net Metering, Feed-In Tariff, Power Purchase Agreement, etc.)• There are many types of Net Metering, so make sure to research exactly how the utility treats produced power will

be dealt with monetarily on a monthly basis

• Max system size (typically a max nameplate DC or AC requirement)• Not to Exceed Current Usage (i.e. system cannot produce more power than customer

currently uses on an annual basis)

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System Sizing• Solar Array sizing can get tricky with unique

applications, but the basics are fairly simple for potential customers trying to offset all (or some) of their annual energy bill

• General rule of thumb – In Iowa, a solar PV system will generate approximately 1,400 kWhs annually per installed kW• For example, a 10kW solar PV array will

generate approximately 14,000 kWhs annually

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System SizingPVWatts® is an online resource developed by the National Renewable Energy Laboratory (NREL) for approximating monthly kWh generation based on several input factors, including geography

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System Sizing (Cont’d)

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Monthly Energy Bills• Cost & Usage History

• 12 months minimum• kWhs

• Price per kWh

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System Sizing Limitations• Utility Policy

• Available Space• Ground

• Roof

• Transformer Size

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System Sizing for New Construction

• “New Build” situations need to be dealt with a bit differently and typically require special permission from the utility regarding system size

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System Sizing for New Construction

Spirit Lake Storage / Yoga Okoboji

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Siting Considerations• Ground-mount or Roof-mount?

• Orientation

• Tilt

• Available space

• Shading

• Maintenance

• Production

• Safety

• Wire run

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Orientation (Azimuth) & Tilt• Optimal production is achieved when the array is

facing true south (not magnetic south). The ideal tilt angle is dependent on latitude but is typically between 35 and 37 degrees from horizontal in Iowa.

• This is not to discourage slightly off-south installations, or roof mounted arrays at non-optimal tilt angles. The production losses in these cases are typically less than 5% so does not have a substantial affect on overall system production.

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Ground-Mount Solar PV Arrays

• The standard Harvest ground mount array is called P-Rack. The solar panels are supported by Hot Dip Galvanized I-Beams and Z-Purlins using various brackets. There are several considerations when deciding the location of a ground mount array…

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Siting Considerations – Ground-Mount

Footprint: The standard layout for a Harvest ground mount is 2-high portrait. We can also install 3-high portrait systems, but at a higher cost. Other custom configurations can also be engineered by Harvest (elevated shading structures or carports).

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Examples

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Siting Considerations – Ground-MountShading: Shadows from trees, buildings, antennas, grain bins, telephone poles, etc., can affect the performance of a solar PV system. If there is any question as to whether of not shading will be an issue a full shading analysis should be requested/performed• We don’t recommend cutting down trees

whenever possible• For residential systems don’t underestimate the

value of shade on summer cooling loads

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Solar Pathfinder

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Siting Considerations – Ground Mount

Grade: Harvest currently has a requirement that the grade for a single array be within a 24” range. Otherwise, excavation or a more expensive array design has to be considered which costs more money.

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Examples

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Siting Considerations – Ground-MountWire Run: Harvest’s estimates include up to 150 feet of underground trenching, conduit, and wire run from an array to the interconnection point. After 150 feet, the customer will be charged for any extra material and labor. The path of the wire run is also important – any obstacles such as drainage tile, septic tanks, high/low voltage wiring, plumbing, etc. need to be known up front before deciding on the path. We always call Miss Dig before we begin.

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Siting Considerations – Ground Mount

Soil Conditions: Harvest’s primary foundation installation method is vibrated I-beams which involve vibrating a beam into the earth some 8-12 feet (sometimes deeper) using a piece of machinery. It is important to know what type of soil conditions exist on the property. If rocks, bedrock, hard clay, etc. are known obstacles underground, it will affect the proposed foundation method and potentially affect the overall price to accomplish the project. In some cases Harvest will use concrete to achieve an acceptable foundation with less of a depth requirement. In extreme cases Harvest will install Ballast, or “coffin” style foundations that do not penetrate the earth.

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Roof-Mount Solar PV Arrays

• There are two types of roof mounts – flush and ballast. Flush Mounts are installed on roofs with a slope (tilt) where the panels run parallel with the roof slope. Ballast Mounts are installed on flat roofs (or close-to flat) and typically will use cap blocks for ballast weight or attach to a seamed roof using a type of set screw fastener.

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Roof-Mount Solar PV Arrays

• Flush Roof-Mount• The standard Harvest flush roof mount array is called R-Rack. The racking is made up of

aluminum extrusion components that support the solar panels and attach to the roof. There are several different attachment methods.

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Roof-Mount Solar PV Arrays

• Ballast Roof-Mount• The standard Harvest ballast roof

mount array is called B-Rack. The racking can achieve a 10–15 degree tilt angle on a flat roof. The panels are supported by the same aluminum extrusion as the R-Rack.

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Siting Considerations – Roof Mount• There are several considerations when deciding the location of a roof mount array...

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Siting Considerations – Roof-MountFootprint: Since every roof face is different, every solar array footprint will be designed differently.

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Siting Considerations• Roof Obstructions • Roof Support

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Siting Considerations – Roof-Mount

Alco Store in Leon, IA

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Siting Considerations – Roof MountStructure: In order to design a rooftop array and define the connection points, specifications are required for the structure of the roof - support members, trusses, purlins, etc. In some situations a structural analysis or PE stamp will be required, which can become an issue if the structure does not provide adequate support for the proposed solar array, or if a code official does not recievethe appropriate information for approval. In the Ag market this red tape usually isn’t a problem.

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Siting Considerations – Roof MountFire Codes: There are regulated fire codes that lay out a few limitations for rooftop solar. Following are some of the basic rules:

• For residential systems, 3’ is required around the edges of an array to the edge of the roof

• For commercial systems, 4’ is required around the edges of an array to the edge of the roof

• The same distances apply to obstacles on a roof such as a door hatch

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Siting Considerations – Roof Mount

Wire Run: For roof mounts the wire run is not as big of a concern as the interconnection location is typicallynear the array location on the structure; however, on many farms that is not the case and we have to trench back to the service/meter.

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Siting Considerations – Wire RunWire Run: Harvest’s estimates include up to 150 feet of underground trenching, conduit, and wire run from an array to the interconnection point. After 150 feet, the customer will be charged for any extra material and labor. The path of the wire run is also important – any obstacles such as drainage tile, septic tanks, high/low voltage wiring, plumbing, etc. need to be known up front before deciding on the path. We always call Miss Dig before we begin.

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Siting Considerations – Roof MountShading: The same shading concerns apply for roof mounts. However, on tilted roofs it is a lot tougher, or impossible, to use a Solar Pathfinder, so other more costly methods may need to be explored.

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Siting Considerations – Roof MountProfessional Shading Analysis Example – Spirit Lake, IA

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System Components• Photovoltaic Solar Module (technical name for

solar panel) – A panel designed to absorb the sun’s rays as a source of energy for generating electricity

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System Components• Solar Inverter – Converts

the variable Direct Current (DC) output of a solar panel into a utility frequency Alternating Current (AC) that can be utilized to offset loads at site or fed into the electrical utility grid

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System Components• Types of Inverters:

• Microinverters – Invert DC to AC on a module-level basis (Enphase)

• Power Optimizers – Optimizes (DC to DC) on a module-level basis and inverts to AC at the string level (Solaredge)

• String Inverters – Invert DC to AC on a string-level basis (typically 11 or 12 solar modules per string)(Fronius, SMA, Solectria)

• Central Inverters – Inverts DC to AC on an entire solar array-level basis (used for utility scale applications - 500kW to 5MW)

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System Components• Inverters’ Affect on Design:

• Microinverter – There are virtually no limitations from a design perspective when microinverters are used. Of course, this comes at a premium.

• String Inverter – String Sizing is a factor when designing these types of systems. For instance if the initial system size is calculated to be 22 panels, but the design calls for strings of 10 only due to an inverter restriction, 20 panels would have to be used in the final design. Please contact the engineering department for more information. This is the most common inverter type that Harvest currently uses.

• Central Inverter – Perhaps the most strict on scalability, these large inverters are typically used for utility-scale or large commercial applications and are being used less and less for system sizes smaller than 2MW.

• One critical element to inverter selection and design is the voltage and phase of the existing electrical service.

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Electrical Service• Some common types of services are 240V Single/Split Phase, 208V WYE

Three Phase, 240V Delta Three Phase, and 480V WYE Three Phase.

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Monitoring & Internet• PV Array Monitoring allows a customer to view their production on an on-

demand basis and ensure their system is generating the expected power.

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Monitoring & Internet (Cont’d)• String and Central

Inverters typically will show output per Maximum Power Point Tracker (MPPT) on a digital screen at the inverter.

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Monitoring & Internet (Cont’d)• MPPT

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Monitoring & Internet (Cont’d)• Microinverters and Optimizers (Enphase and Solaredge) require an internet connection to

monitor production. This connection can be either wireless or Ethernet.

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Monitoring & Internet (Cont’d)• 3rd Party Monitoring is also available. For an upcharge, Harvest offers the customer a monitoring package through a

company called Locus. This involves an additional meter base, required internet connection, and extra labor for installation. • A Locus meter is approved to monitor SRECs as well as a meter called Hialeah which is less expensive turnstile meter. If

SRECs are irrelevant, this is simply a customer preference.

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What’s Next?Storage

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Resources – Incentives & Financing• www.dsireusa.org

• www.section179.org

• tax.iowa.gov/solar-energy-system-tax-credits

• www.iowaenergycenter.org• http://www.iowaenergycenter.org/alternate-energy-revolving-loan-program-aerlp/

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Additional Resources• Solar Energy Basics - http://www.nrel.gov/learning/re_solar.html• NREL - http://www.nrel.gov/

• PVWatts - http://pvwatts.nrel.gov/

• U.S. Deaprtment of Energy• http://energy.gov/eere/office-energy-efficiency-renewable-energy

• EnergyStar - http://www.energystar.gov/• EPA - http://www.epa.gov/energy• FarmEnergy.org - http://farmenergy.org/clean-energy-guide/solar

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Upcoming Farm Shows• Iowa Pork Congress – Des Moines, IA – JAN 27-28

• Iowa Power Farming Show – Des Moines, IA – FEB 2-4

• National Farm Machinery Show – Louisville, KY – FEB 10-13

• Hawkeye Farm Show – Cedar Falls, IA – MAR 1-3

• World Pork Expo – Des Moines, IA – JUN 8-10

• Farm Progress Show – Boone, IA – AUG 30-SEP 1

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FREE Solar Consultations

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Questions?

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Thank You!