Olis Et Al. - 2013 - Feasibility Study of Economics and Performance of Solar Photovoltaics at The Snohomish County Cathcart Landfill Sit-Annotated
Olis Et Al. - 2013 - Feasibility Study of Economics and Performance of Solar Photovoltaics at The Snohomish County Cathcart Landfill Sit-Annotated
Technical Report
NREL/TP-7A40-58328
April 2013
Contract No. DE-AC36-08GO28308
                                       Feasibility Study of Economics
                                       and Performance of Solar
                                       Photovoltaics at the Snohomish
                                       County Cathcart Landfill Site in
                                       Snohomish County, Washington
                                       A Study Prepared in Partnership with the
                                       Environmental Protection Agency for the
                                       RE-Powering America’s Land Initiative:
                                       Siting Renewable Energy on Potentially
                                       Contaminated Land and Mine Sites
                                       Dan Olis, James Salasovich, Gail Mosey, and
                                       Victoria Healey
                                       Prepared under Task No. WFD3.1001
This manuscript has been authored by employees of the Alliance for Sustainable Energy, LLC (“Alliance”) under
Contract No. DE-AC36-08GO28308 with the U.S. Department of Energy (“DOE”).
**The tables and figures in this report are limited to use in this report only and are not to be further disseminated
or used without the permission of the sources cited.**
This report was prepared as an account of work sponsored by an agency of the United States government.
Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty,
express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of
any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately
owned rights. Reference herein to any specific commercial product, process, or service by trade name,
trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation,
or favoring by the United States government or any agency thereof. The views and opinions of authors expressed
herein do not necessarily state or reflect those of the United States government or any agency thereof.
Cover Photos: (left to right) PIX 16416, PIX 17423, PIX 16560, PIX 17613, PIX 17436, PIX 17721
      Printed on paper containing at least 50% wastepaper, including 10% post-consumer waste.
Acknowledgments
The National Renewable Energy Laboratory (NREL) thanks the U.S. Environmental Protection
Agency (EPA) for its interest in securing NREL’s technical expertise. In particular, NREL and
the assessment team for this project are grateful to the Snohomish County Cathcart Landfill
facility managers, engineers, and operators for their generous assistance and cooperation.
Special thanks go to Carolyn Gangmark, Lura Matthews, Shea Jones, and Jessica Trice from
EPA; Katie Brown, AAAS Science & Technology Policy fellow hosted by EPA; and Manuela
Winter from Snohomish County for hosting the site visit. The authors would also like to thank all
of those who participated and contributed to the site visit, including representatives of
Snohomish County and Snohomish Public Utility District No. 1.
                                               iii
List of Acronyms
AC                 alternating current
BOS                balance of system
BPA                Bonneville Power Administration
CHP                combined heat and power
DC                 direct current
EPA                U.S. Environmental Protection Agency
FTE                full-time equivalent
JEDI               Jobs and Economic Development Impacts
kW                 kilowatt
LCOE               levelized cost of energy
MW                 megawatt
NEG                net excess generation
NREL               National Renewable Energy Laboratory
O&M                operations and maintenance
PBI                production-based incentive
PPA                power purchase agreement
PV                 photovoltaics
REC                renewable energy certificate
RFP                request for proposals
SNOPUD             Snohomish County Public Utility District
SAM                System Advisor Model
SPE                special purpose entity
SSA                solar services agreement
W                  watt
                     iv
Executive Summary
The U.S. Environmental Protection Agency (EPA), in accordance with the RE-Powering
America’s Land Initiative, selected the Snohomish County Cathcart Landfill site in Snohomish
County, Washington, for a feasibility study of renewable energy production. The National
Renewable Energy Laboratory (NREL) provided technical assistance for this project. The
purpose of this report is to assess the site for a possible photovoltaic (PV) system installation and
estimate the cost, performance, and site impacts of different PV options. In addition, the report
recommends financing options that could assist in the implementation of a PV system at the site.
This study did not assess environmental conditions at the site.
The Snohomish County Landfill is a municipal landfill that was built in 1980 and was a state-of-
the-art facility when it was built. The landfill was closed in 1992 and was capped shortly
thereafter. A leachate collection system and landfill gas extraction system were installed at the
site. The main contaminants include metals, ammonia nitrogen, chlorine, and sodium. 1
Snohomish County is interested in hosting a PV system on its capped landfill at the Cathcart
Way Operations Center to generate clean, renewable energy.
The Snohomish County Cathcart Landfill site is approximately 52 acres with about 15.2 acres
appropriate for installation of a PV system. While this entire area does not need to be developed
at one time due to the feasibility of staging installation as land or funding becomes available, one
case in this analysis reflects the solar potential if the total feasible area is used. Based on acreage
alone, the site could host up to approximately 3 MW of PV.
The economic feasibility of a potential PV system on the Snohomish County Cathcart Landfill
site depends greatly on the purchase price of the electricity produced. The economics of the
potential system were analyzed using the current Snohomish County electric rate of $0.075/kWh
and incentives available to the site.
Current incentives considered include Snohomish County Public Utility District’s (SNOPUD)
Solar Express incentive and Washington’s production-based incentives (PBI) offered under the
Renewable Energy System Cost Recovery Program. The Solar Express incentive provides
$500/kW installed up to a $10,000 cap. The state’s PBIs vary depending on the project type
(community or non-community) and whether in-state manufactured components are used. The
incentives range from $0.15/kWh to $1.08/kWh and are paid annually up to a maximum of
$5,000/yr per investor through June 2020.
1
    http://www.epa.gov/oswercpa/docs/r10-11-004_snohomish_county.pdf. Accessed August 2012.
                                                      v
As an alternative to the county consuming the electricity produced, a system could sell energy to
SNOPUD. However SNOPUD’s standard offer under their Small Renewables Program is $0.05–
$0.06/kWh for 5 years, which is well below revenue levels required to recover the cost of the
system (approximately $0.28/kWh for 25 years). Other third parties might be interested in
purchasing energy and may warrant future evaluation. A wholesale project might incur
additional costs. For example, SNOPUD and/or Bonneville Power Authority (BPA) would likely
add ‘wheeling’ and other charges to the project to transmit the electricity to market.
Within the state’s Renewable Energy Cost Recovery Program, a class of projects categorized as
“community solar” is eligible for the highest PBI. Community solar is administered by the
hosting site’s serving utility. By program rules, the maximum project size is 75 kW and the total
obligated program size for each utility is based on the utility’s total sales. The Snohomish
County Landfill site is served by SNOPUD and the PUD’s total community solar program
obligated capacity is approximately 108 kW. The program has an estimated available capacity of
86 kW remaining.
Table ES-1 summarizes the system performance and economics of systems of various sizes and
benefiting from various incentives. System cost is the total installed cost, including panels,
hardware, wiring, inverters, engineering, permits, installation, and utility interconnection. The
table shows the annual energy output from each system, the number of average American
households that could be powered, and estimated job creation.
The most conventional approach is for the county to purchase a system with county-appropriated
funds. A 100-kW system would qualify for net metering (SNOPUD’s maximum net-metering
limit) and be eligible for two modest incentives, SNOPUD’s $10,000 Solar Express incentive
and the state’s Renewable Energy Cost Recovery Program PBI that would cap at $5,000/yr for
6 years. This system has a simple payback of 72 years and is shown in Table ES-1 as “non-
community solar.”
A project that qualifies as a community solar project under the state’s Renewable Energy Cost
Recovery Program can achieve a 25-year payback if the PBI is maximized by using Washington-
made solar panels and inverters. There are currently 10 community solar projects in Washington
and one in SNOPUD’s service territory. Community solar projects are complicated and can be
difficult to execute. SNOPUD representatives warn that development of a community solar
project can take up to 2 years. Incentive payout under the Renewable Energy Cost Recovery
Program expires in June 2020, so the longer it takes to develop a project, the worse the
economics become. Community solar projects developed to date have likely used panels and
inverters made in Washington because the higher PBI available for these system types greatly
improves economics, a payback of 48 years using the lower PBI versus 25 years with the higher
PBI when locally fabricated components are used.
A third community solar scenario was explored that exploits federal tax incentives to improve
economics. However, this could be a hypothetical case because it is not known to the author of
this report if such an arrangement is legal. In addition, a project structure of this type would
certainly add complexity and might be impractical to execute even if legally permissible. This is
presented in the table as “community solar with WA inverters and modules, $1.08/kWh for
                                                vi
6 years and federal tax incentives” and has an instant payback (0 years) because under this
scenario, the county would not have to front any capital and would receive electricity at no cost.
As indicated in Table ES-1, system paybacks have a wide range (0–74 years). However,
paybacks between 25 years and 74 years are most likely for a project developed on the
Snohomish County Cathcart Landfill. Although the PV panels and rack structure have an
expected lifetime of 25 years or more, from a strictly economic perspective, a project with a
simple payback of 25 years is not a good investment; it would be cheaper for the county to
continue buying electricity from their utility provider than to invest in a PV system.
Table ES-1 also includes a 3-MW system, the estimated maximum size that could fit on the site.
This case is hypothetical in that the county’s current electrical load at Cathcart is 292 kW. A
3-MW system would produce more energy than the county could use, and therefore Snohomish
County would not benefit from the added costs. However, because the county’s current 292-kW
load is greater than the 100-kW net-metering limit, the county may be able to install a system
greater than 100 kW but without the benefit of net metering. A system greater than 100 kW
would not qualify for SNOPUD’s Solar Express incentive, so the economics would be slightly
impacted. Also, when a system is operating without net metering, any energy that is generated at
any moment in excess of the site’s load at that moment will flow back out into the utility’s
system, and the system owner will not get any credit for that excess energy generated. A careful
analysis of the moment-by-moment electrical demand at Carthcart Way Operations Center is
necessary to determine if and how much excess energy a system greater than the 100-kW net-
                                                vii
metering limit may send to the utility to determine what size would be appropriate and what
impact the size will have on overall economic viability. However, the economics will not be
better than the 74-year payback presented in the table for the 3-MW case. Costs and utility
savings for any system greater than 100 kW are proportional to the values shown for a
3-MW system.
County representatives have indicated that additional Snohomish County development near the
landfill will increase the county’s power demand nearby. There are also county schools
(0.6 miles) and a park (1.0 miles) in the vicinity of the landfill that could use energy generated
from a large PV system installed on the landfill. It is not practical, however, to distribute energy
generated from a system to a number of different loads located 0.6 miles to 1 mile from the
system. This would add costs and extend payback periods beyond 74 years. Virtual net metering
is a policy alternative to this scenario that allows aggregation of multiple meter amounts paid by
a customer to be credited by energy generated by a system located elsewhere. Washington’s net-
metering law allows virtual net metering, but the aggregation maximum limit is currently
100 kW per customer. Because the estimate provided by Snohomish County is that the current
county loads in the vicinity, plus those from planned future build-out in the area, will have an
average annual demand of 4.7 MW, the county would be able to build a 3-MW system on the
landfill and make use of all energy produced if the virtual-net-metering limit were significantly
increased to 3 MW or greater. Under this scenario, given current system costs and energy costs
in the region, system paybacks would be 74 years as shown in Table ES-1 for a 3-MW system.
                                                viii
Table of Contents
1     Study and Site Background ................................................................................................................. 1
2     Development of a PV System on Landfills ......................................................................................... 3
3     PV Systems ........................................................................................................................................... 5
      3.1 PV Overview.................................................................................................................................... 5
      3.2 Major System Components .............................................................................................................. 6
          3.2.1 PV Module .......................................................................................................................... 6
          3.2.2 Inverter ................................................................................................................................ 8
          3.2.3 Balance-of-System Components......................................................................................... 9
          3.2.4 Operation and Maintenance .............................................................................................. 11
      3.3 Siting Considerations ..................................................................................................................... 11
4     Proposed Installation Location Information .................................................................................... 12
      4.1   Snohomish County Cathcart Landfill Site PV System .................................................................. 12
      4.2   Utility Considerations .................................................................................................................... 13
      4.3   Useable Acreage for PV System Installation ................................................................................. 14
      4.4   PV Site Solar Resource .................................................................................................................. 14
      4.5   Snohomish County Cathcart Landfill Energy Usage ..................................................................... 15
            4.5.1 Current Energy Use .......................................................................................................... 16
            4.5.2 Net Metering ..................................................................................................................... 18
            4.5.3 Virtual Net Metering......................................................................................................... 19
5     Economics and Performance ............................................................................................................ 20
      5.1 Available Incentives....................................................................................................................... 20
      5.2 Assumptions and Input Data for Analysis ..................................................................................... 21
      5.3 SAM Forecasted Economic Performance ...................................................................................... 22
          5.3.1 Case 1................................................................................................................................ 23
          5.3.2 Case 2 Through Case 4 ..................................................................................................... 23
          5.3.3 Summary of the Economic Forecast Results .................................................................... 25
          5.3.4 Off-Take, System Size, and Economic Summary............................................................. 27
      5.4 Job Analysis and Impact ................................................................................................................ 31
      5.5 Financing Opportunities................................................................................................................. 32
          5.5.1 Owner and Operator Financing......................................................................................... 32
          5.5.2 Third-Party Developers with Power Purchase Agreements .............................................. 32
          5.5.3 Third-Party “Flip” Agreements......................................................................................... 33
          5.5.4 Hybrid Financial Structures .............................................................................................. 33
          5.5.5 Solar Services Agreement and Operating Lease ............................................................... 33
          5.5.6 Sales/Leaseback ................................................................................................................ 34
          5.5.7 Community Solar/Solar Gardens ...................................................................................... 34
6 Conclusions and Recommendations ............................................................................................... 36
Appendix A. Provided Site Information .................................................................................................. 37
Appendix B. Assessment and Calculations Assumptions ................................................................... 42
Appendix C. Solar Access Measurements ............................................................................................. 43
Appendix D. Results of the System Advisor Model .............................................................................. 47
Appendix E. Results of the JEDI Model for 75-kW Community Solar and Site Maximum 3-MW
   System ................................................................................................................................................. 50
Appendix F. Contact Information for Local Incentives and Programs ................................................ 57
                                                                             ix
List of Figures
Figure 1. Generation of electricity from a PV cell...........................................................................5
Figure 2. Ground-mounted array diagram .......................................................................................6
Figure 3. Mono- and multi-crystalline solar panels .........................................................................7
Figure 4. Thin-film solar panels installed on (left) solar energy cover and (middle/right) fixed-tilt
    mounting system ........................................................................................................................7
Figure 5. String inverter ...................................................................................................................9
Figure 6. Aerial view of the feasible area (green) for PV at the Snohomish County Cathcart
    Landfill site (south is to the left in this image) ........................................................................12
Illustration done in Google Earth ...................................................................................................12
Figure 7. Views of the feasible area for PV at the Snohomish County Landfill ...........................13
Figure A-1. Aerial view of site ......................................................................................................37
Figure A-2. Existing infrastructure site map..................................................................................38
Figure A-3. Sustainable Cathcart proposed project .......................................................................39
Figure A-4. Gas collection system at Snohomish County Landfill ...............................................39
Figure A-5. Tree height in relation to landfill elevation ................................................................40
Figure A-6. Garbage depth profiles ...............................................................................................40
Figure A-7. Snohomish County Landfill topography ....................................................................41
Figure A-8. Height above ground surface map ..............................................................................41
Figure C-1. Solar access measurements for south end of Snohomish County Cathcart Landfill PV
    site, at top edge ........................................................................................................................43
Figure C-2. Solar access measurements for south edge of Snohomish County Cathcart Landfill
    PV site, 30 feet north from edge ..............................................................................................44
Figure C-3. Solar access measurements for center, adjacent to cars, on Snohomish County
    Cathcart Landfill PV site .........................................................................................................45
Figure C-4. Solar access measurements for east edge of Snohomish County Cathcart Landfill PV
    site ............................................................................................................................................46
Figure D-1. Monthly energy produced from 3-MW system, fixed-tilt ..........................................47
Figure D-2. Monthly energy produced from 75-kW system, fixed-tilt .........................................47
Figure D-3. Levelized cost of energy, no PBI ...............................................................................48
Figure D-4. Levelized cost of energy with PBI of $0.30/kWh for 6 years (base Community Solar
    program) ...................................................................................................................................48
Figure D-5. Levelized cost of energy with PBI of $1.08/kWh for 6 years (Washington
    inverters) ..................................................................................................................................49
                                                                          x
List of Tables
Table ES-1. Snohomish County Cathcart Landfill PV System Summary .................................... vii
Table 1. Energy Density by Panel and System ..............................................................................10
Table 2. Site Identification Information and Specifications ..........................................................15
Table 3. Performance Results for 1 kW-DC, 20-Degree Fixed-Tilt PV........................................15
Table 4. Site Electrical Load ..........................................................................................................16
Table 5. Meters and Rate Schedules ..............................................................................................17
Table 6. Existing and Future Loads On and Near Cathcart Way Operations Center ....................18
Table 7. Installed System Cost Assumptions.................................................................................21
Table 8. Installed Costs Versus PBI Assumptions for Community Solar Cases ...........................24
Table 9. PV Cost of Energy by Development Scenario.................................................................26
Table 10. Existing Community Solar Systems in Washington ......................................................29
Table 11. PV System Summary .....................................................................................................30
Table 12. JEDI Analysis Assumptions ..........................................................................................31
Table B-1. Cost, System, and Other Assessment Assumptions.....................................................42
Table E-1. JEDI Model Fixed-Tilt Project Data Summary for 75-kW Community Solar ............50
Table E-2. JEDI Model Fixed-Tilt Project Data Summary for 3-MW Site Maximum Size
   Project ......................................................................................................................................51
Table E-3. JEDI Model Fixed-Tilt Local Economic Impacts Summary for 75 kW
   Community Solar .....................................................................................................................52
Table E-4. JEDI Model Fixed-Tilt Local Economic Impacts Summary for 3-MW Site Maximum
   Size Project ..............................................................................................................................53
Table E-5. JEDI Model Fixed-Tilt Detailed PV Project Data Costs Summary for 75-kW
   Community Solar .....................................................................................................................54
Table E-6. JEDI Model Fixed-Tilt Detailed PV Project Data Costs Summary for 3-MW Site
   Maximum Size Project .............................................................................................................54
Table E-7. JEDI Model Fixed-Tilt PV System Annual Operating and Maintenance Costs for 75-
   kW Community Solar ..............................................................................................................55
Table E-8. JEDI Model Fixed-Tilt PV System Annual Operating and Maintenance Costs for 3-
   MW Site Maximum Size Project .............................................................................................56
                                                                        xi
1 Study and Site Background
The U.S. Environmental Protection Agency (EPA), in accordance with the RE-Powering
America’s Land initiative, selected the Snohomish County Cathcart Landfill site in
Snohomish County, Washington, for a feasibility study of renewable energy production.
The National Renewable Energy Laboratory (NREL) provided technical assistance for
this project. The purpose of this report is to assess the site for a possible photovoltaic
(PV) system installation and estimate the cost, performance, and site impacts of different
PV options. In addition, the report recommends financing options that could assist in the
implementation of a PV system at the site. This study did not assess environmental
conditions at the site.
The Snohomish County Cathcart Landfill is located within the boundary of the county’s
Cathcart Way Operations Center in Snohomish County, Washington. The county seat is
located in the City of Everett, which is approximately 25 miles north of Seattle. The City
of Everett has an approximate population of 100,000 people, 2 while the total county
population is approximately 700,000. 3
There are approximately 250 county employees at the site. The site includes office space,
vehicle fleet parking and maintenance, industrial wastewater treatment (from landfill
leachate collection system), and other county maintenance functions. 4 The site is zoned
light industrial.
The 52-acre landfill is owned by the county and maintained by the county’s Public Works
Solid Waste Division. It holds approximately 3.2 million tons of municipal waste in six
cells. The landfill is capped and was active between 1980 and 1992. It is regulated by the
Snohomish County Health District and is currently being operated under a 30-year post-
closure permit. Any development on the cap will require approval by the Snohomish
County Health District.
The cap’s vegetative layer and soil are part of the functional design of the landfill.
Therefore, the soil on the cap cannot be disturbed, although some material infill might be
permitted to level parts of the site. Further, piles cannot be driven into the cap because
this will risk puncturing the cap membrane.
The landfill is lined and includes both methane gas and liquid leachate collection
systems. The landfill’s six cells were filled chronologically from north to south. Cell 6 is
at the southernmost end of the landfill, and has the youngest waste, so it therefore has the
highest rates of settlement as waste degrades. Site personnel reported that the landfill
experienced approximately 7 feet of settlement over the last 10 years. PV development
can occur after settlement rates have slowed. Typically, a landfill site will not be
developed for PV during the first 10 years after closure; however, each landfill’s rate of
settlement will have to be studied to make this determination.
2
   http://www.everettwa.org/default.aspx?ID=314.
3
   http://www.ofm.wa.gov/pop/census2010/sf1/data/county/wa_2010_sf1_county_05000US53061.pdf.
4
  http://www1.co.snohomish.wa.us/Departments/Public_Works/Services/Roads/Completed_Projects/Project
_RC1081.htm.
                                                1
The landfill has steep sides, especially at the southern end but has relatively flat regions
along the center. Because the cap cannot be penetrated, any PV system will be of the
ballasted type, meaning it will rest on top of the earth and be weighted down to resist
wind. Because ballasted systems rely on gravity and friction to hold them in place, they
are not appropriate for steep slopes with a risk of slippage. Grades of 5% and less are
considered appropriate for ballasted PV systems.
The site’s serving utility is Snohomish County Public Utility District (SNOPUD). The
site is served by 11 electricity usage meters. An existing 4.5-kW PV roof-mounted
system is installed on the site on one of the vehicle maintenance buildings. The site’s
total annual consumption in 2011 was 2,555 MWh, and the calculated average load was
292 kW.
The blended average cost of electricity for Snohomish County (i.e., the rate the county
pays the utility) is approximately $0.07–$0.08/kWh, depending on the meter and the
rate tariff.
Feasibility assessment team members from NREL, Snohomish County, and EPA
conducted a site visit on May 23, 2012, to gather information integral to this feasibility
study. The team considered information including solar resource, transmission
availability, community acceptance, and ground conditions.
                                              2
2 Development of a PV System on Landfills
Through the RE-Powering America’s Lands initiative, EPA has identified several
benefits for siting solar PV facilities on landfills, noting that they:
   •   Can be developed in place of limited greenfields, preserving the land carbon sink
   •   Might have environmental conditions that are not well suited for commercial or
       residential redevelopment and could be adequately zoned for renewable energy
   •   Generally are located near existing roads and energy transmission or distribution
       infrastructure
   •   Could provide an economically viable reuse for sites that may have significant
       cleanup costs or low real estate development demand
   •   Can provide job opportunities in urban and rural communities
   •   Can advance cleaner and more cost effective energy technologies, and reduce the
       environmental impacts of energy systems (e.g., reduce greenhouse gas emissions).
By taking advantage of these potential benefits, PV can provide a viable, beneficial reuse
of land, in many cases, generating significant revenue on a site that would otherwise
go unused.
                                             3
There are many compelling reasons to consider moving toward renewable energy sources
for power generation instead of fossil fuels, including:
                                            4
3 PV Systems
3.1 PV Overview
Solar PV technology converts energy from solar radiation directly into electricity. Solar
PV cells are the electricity-generating component of a solar energy system. When
sunlight (photons) strikes a PV cell, an electric current is produced by stimulating
electrons (negative charges) in a layer in the cell designed to give up electrons easily. The
existing electric field in the solar cell pulls these electrons to another layer. By
connecting the cell to an external load, this current (movement of charges) can then be
used to power the load (e.g., light bulb).
- - -
                                 Electron
                                 -
                     (-)
                                                          (+)
                    Solar cell
                                            -                                      Load
                                                    -                  -       -
                                                        Current flow
PV cells are assembled into a PV panel or module. PV modules are then connected to
create an array. The modules are connected in series and then in parallel as needed to
reach the specific voltage and current requirements for the array. The direct current (DC)
electricity generated by the array is then converted by an inverter to useable alternating
current (AC) that can be consumed by adjoining buildings and facilities or exported to the
electricity grid. PV system size varies from small residential (2–10 kW), to commercial
(100–500 kW), to large utility scale (10+ MW). Central distribution plants are also
currently being built in the 100+ MW scale. Electricity from utility-scale systems is
commonly sold back to the electricity grid.
                                                                5
3.2 Major System Components
   •   PV modules
   •   Inverter
   •   Balance-of-system (BOS) components (e.g., mounting system and wiring).
These, along with other PV system components, are discussed in turn below.
3.2.1 PV Module
Module technologies are differentiated by the type of PV material used, resulting in a
range of conversion efficiencies from light energy to electrical energy. The module
efficiency is a measure of the percentage of solar energy converted into electricity.
Two common PV technologies that have been widely used for commercial- and utility-
scale projects are crystalline silicon and thin film.
Figure 3 shows two examples of crystalline solar panels: mono- and multi-silicon
installed on tracking mounting systems.
Figure 3. Mono- and multi-crystalline solar panels. Photos by (left) SunPower Corporation,
                    NREL 23816 and (right) SunPower, NREL 13823
3.2.1.2 Thin Film
Thin-film PV cells are made from amorphous silicon (a-Si) or non-silicon materials, such
as cadmium telluride (CdTe). Thin-film cells use layers of semiconductor material only a
few micrometers thick. Due to the unique nature of thin films, some thin-film cells are
constructed into flexible modules, enabling such applications as solar energy covers for
landfills, such as a geomembrane system. Other thin-film modules are assembled into
rigid constructions that can be used in fixed-tilt systems or, in some cases,
tracking systems.
The efficiency of thin-film solar cells is generally lower than for crystalline cells. Current
overall efficiency of a thin-film panel is between 6% and 8% for a-Si and 11% and 12%
for CdTe. Figure 4 shows thin-film solar panels.
   Figure 4. Thin-film solar panels installed on (left) solar energy cover and (middle/right)
 fixed-tilt mounting system. Photos by (left) Republic Services Inc., NREL 23817, (middle)
    Beck Energy, NREL 14726, and (right) U.S. Coast Guard Petaluma Site, NREL 17395
                                              7
Industry-standard warranties of both crystalline and thin-film PV panels typically
guarantee system performance of 80% of the rated power output for 25 years. After
25 years, they will continue producing electricity at a lower performance level.
3.2.2 Inverter
Inverters convert DC electricity from the PV array into AC and can connect seamlessly to
the electricity grid. Inverter efficiencies can be as high as 98.5%.
Inverters also sense the utility power frequency and synchronize the PV-produced power
to that frequency. When utility power is not present due to a fault condition, the inverter
will stop producing AC power to prevent “islanding” or putting power into the grid while
utility workers are trying to fix what they assume is a de-energized distribution system.
This safety feature is built into all grid-connected inverters in the market. Electricity
produced from the system may be fed to a step-up transformer to increase the voltage to
match the grid.
There are two primary types of inverters for grid-connected systems: string and micro-
inverters. Each type has strengths and weakness and may be recommended for different
types of installations.
String inverters are most common and typically range in size from 1.5–1,000 kW. These
inverters tend to be cheaper on a capacity basis, and provide high efficiency and lower
O&M costs. String inverters offer various sizes and capacities to handle a large range of
voltage output. For larger systems, string inverters are combined in parallel to produce a
single point of interconnection with the grid. Warranties typically run between 5 and 10
years with 10 years being the current industry standard. On larger units, extended
warranties up to 20 years are possible. Given that the expected life of the PV panels is
25–30 years, an operator can expect to replace a string inverter at least one time during
the life of the PV system.
With string inverters, small amounts of shading on a solar panel will significantly affect
the entire array production. Instead, it impacts only that shaded panel if micro-inverters
are used. Figure 5 shows a string inverter. However, larger commercial systems are
typically sited where shading will not occur, and this is the expectation for the
Snohomish County Cathcart Landfill site.
                                             8
               Figure 5. String inverter. Photo by Warren Gretz, NREL 07985
3.2.3 Balance-of-System Components
In addition to the solar modules and inverter, a solar PV system consists of other parts
called BOS components, which includes:
Tracking systems rotate the PV modules so they are following the sun as it moves across
the sky. This increases energy output, but also increases maintenance and equipment
costs slightly. Single-axis tracking, in which the PV panels are rotated on a single axis,
can increase energy output up to 25% or more. With dual-axis tracking, PV is able to
directly face the sun all day, potentially increasing output up to 35% or more. Depending
on underlying soil conditions, single- and dual-axis trackers may not be suitable due to
                                             9
potential settlement effects, which can interfere with the alignment requirements of such
systems. Tracking systems are unlikely to be installed on landfills because of this
settling issue.
The selection of mounting type is dependent on many factors, including installation size,
electricity rates, government incentives, land constraints, latitude, and local weather.
Contaminated land applications might raise additional design considerations due to site
conditions, including differential settlement.
In most traditional applications, wiring from (1) the arrays to inverters and (2) inverters
to point of interconnection is generally run as direct burial through trenches. In landfill
applications, this wiring might be required to run through above-ground conduit due to
restrictions with cap penetration or other concerns. Therefore, developers should consider
noting any such restrictions, if applicable, in requests for proposals in order to improve
overall bid accuracy. Similarly, it is recommended that PV system vendors reflect these
costs in the quote when costing out the overall system.
Weather stations are typically installed with large-scale PV systems. Weather data, such
as solar radiation and temperature, can be used to predict energy production, enabling
comparison of the target and actual system output and performance, and identification of
under-performing arrays. Operators can also use this data to identify required
maintenance, shade on panels, and accumulating dirt on panels, for example. Monitoring
system data can also be used for outreach and education. This can be achieved with
publicly available, online display, wall-mounted systems, or even smart phone
applications.
The NREL solar assessment team uses a Solmetric SunEye solar path calculator to assess
shading at particular locations by analyzing the sky view where solar panels will be
located. By assessing shading, the NREL team can determine if the area is appropriate for
solar panels.
In addition to solar access, site topography is also important. For ballasted systems
appropriate for landfill sites, slopes less than and equal to a 5% grade are considered
appropriate. Ballasted systems on steeper grades could slip with high winds or ground
moisture from rain or melting snow.
Following the successful collection of solar resource data using the Solmetric SunEye
tool and determination that the site is adequate for a solar installation, an analysis to
determine the ideal system size must be conducted. System size depends highly on the
average energy use of the facilities on the site, incentives available, and utility policy.
                                              11
4 Proposed Installation Location Information
This section summarizes the findings of the NREL solar assessment site visit on
May 23, 2012.
In order to get the most out of the ground area available, it is important to consider
whether the site layout can be improved to better incorporate a solar system. If there are
unused structures, fences, or electrical poles that can be removed, the un-shaded area can
be increased to incorporate more PV panels. The Snohomish County landfill is mostly
open except for gas collection wells and piping.
Figure 6 shows an aerial view of the Snohomish County Cathcart Landfill site taken from
Google Earth; the feasible area for PV is shaded in green and one possible electrical tie-in
point for the PV system is indicated. As shown, there are two large expanses of relatively
flat, un-shaded land, which makes it a suitable candidate for a PV system. The total area
of the site that appears feasible for PV is approximately 15.2 acres, limited by the
availability of flat areas, not shading concerns.
Figure 6. Aerial view of the feasible area (green) for PV at the Snohomish County Cathcart
                       Landfill site (south is to the left in this image)
                              Illustration done in Google Earth
In Snohomish County, Washington, the average global horizontal annual solar resource—
the total solar radiation for a given location, including direct, diffuse, and ground-
reflected radiation—is 3.73 kWh/m2/day, while U.S. maximum values of
6.7 kWh/m2/day exist in the desert southwest. In general, the coastal region of the
Northwest is a lower tier region of the country in terms of annual power production
potential from PV systems. However, PV is technically suitable anywhere in the United
States, and economic viability of PV depends as much on local incentives and local
utility prices as it does on local solar resources.
Figure 7 shows various views of the Snohomish County Cathcart Landfill site.
                                             12
 Figure 7. Views of the feasible area for PV at the Snohomish County Landfill. Photos by
                                       Dan Olis, NREL
After the site visit, SNOPUD scheduled a conference call with Snohomish County
personnel, an NREL representative, and the Bonneville Power Administration (BPA) to
discuss interconnection because SNOPUD resides within BPA’s balancing area. During
this call, it was learned that SNOPUD and BPA have separate interconnection processes
and procedures. Therefore, to interconnect a PV system on the local distribution,
Snohomish County or the developer would have to submit dual applications and
undertake dual review processes, one for SNOPUD and one for BPA. This is unusual.
During this call, the 3-MW maximum size limit for local interconnection was reiterated
by BPA. One possible feeder is approximately 2.5 miles west of the site. Others might be
                                             13
closer. It would cost roughly $1 million per mile to run the electrical cables from Cathcart
to the appropriate substation identified in the power flow study.
In addition to these technical issues, the energy generated and injected into the
distribution system would need a buyer. An analysis of the wholesale market is beyond
the scope of this report; however, projects of this type are usually tens to hundreds of
megawatts in size. SNOPUD and/or BPA would likely add “wheeling” and other charges
to the project to transmit the electricity to market.
The assessment team for this feasibility study collected multiple Solmetric SunEye data
points and found a solar access greater than 90% within the boundaries identified. All
data gathered using this tool is available in Appendix C.
The predicted array performance was found using PVWatts Version 2 5 for Snohomish
County, Washington. Table 2 shows the station identification information, PV system
specifications, and energy specifications for the site. For this summary array performance
information, a hypothetical system size of 1 kW was used to show the estimated
production for each kilowatt so that additional analysis can be performed using the data
indicated below. It is scaled linearly to match the proposed system size.
5
    http://www.nrel.gov/rredc/pvwatts/.
                                            14
                  Table 2. Site Identification Information and Specifications
                                       Station Identification
                             Cell ID                       019328
                             State                         Washington
                             Latitude                      47.813° N
                             Longitude                     122.054° W
                                     PV System Specifications
                             DC Rating                     1.00 kW
                             DC to AC Derate Factor        0.8
                             AC Rating                     0.770 kW
                             Array Type                    Fixed Tilt
                             Array Tilt                    20°
                             Array Azimuth                 180°
                                       Energy Specifications
                             Cost of Electricity           $0.08/kWh
Table 3 shows the performance results for a 20-degree fixed-tilt PV system in Snohomish
County, Washington, as calculated by PVWatts.
The loads at each meter and the production from the existing PV system are shown in
Table 4. The site reports the data may be incomplete however; the annual average load is
estimated to be 292 kW.
The blended average cost of electricity for the county is approximately $0.07–
$0.08/kWh, depending on the meter and the rate tariff. Rate tariff, peak loads, and
consumption by meter are shown in Table 5.
6
    http://www.snopud.com/AboutUs/Rates.ashx?p=1166.
                                                16
                           Table 5. Meters and Rate Schedules
In addition, other county and school district loads in the region of Catchcart Way
Operations Center were provided, plus estimated loads that will result from planned
future build-out on and near the site. These are shown in Table 6. The combined total of
all regional loads existing and planned is estimated to be 4,698 kW, or 4.7 MW.
                                           17
     Table 6. Existing and Future Loads On and Near Cathcart Way Operations Center
                                              18
Washington's net-metering law, 7 which took effect in 1998, requires utilities to offer net
metering to all customers with solar thermal electric, PV, wind, hydroelectric, fuel cells,
and combined heat and power (CHP)/cogeneration systems up to 100 kW.
If the renewable energy system generates more energy than is consumed, the net excess
generation (NEG) is carried forward as a credit at the customer’s retail rate (i.e., $0.07–
$0.08/kWh for Snohomish County) on the customer’s next month bill. In Washington,
NEG balances at the end of each 12-month period are surrendered to the utility, without
compensation, on April 30 of each year.
Renewable energy certificates (RECs), 8 also known as green certificates, green tags, or
tradable renewable certificates, are tradable commodities in the United States that
represent proof of electric energy generation from eligible renewable energy resources
(renewable electricity). The RECs that are associated with the electricity produced and
used on site remain with the customer-generator. RECs sometimes have significant value
in states or other regional markets with renewable portfolio standard mandates. There is
no compliance REC market in Washington, so the RECs generated by a project in
Snohomish County have little monetary value besides what they may garner in voluntary
markets, which are too low to influence project economics. If the county were to accept
SNOPUD’s Solar Express incentive, the RECs from the project are transferred to
the utility.
7
  For the full description see,
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=WA01R&re=1&ee=1.
8
  For a description of RECs, see http://apps3.eere.energy.gov/greenpower/markets/
certificates.
                                               19
5 Economics and Performance
The economic performance of a PV system installed on the site is evaluated using a
combination of the assumptions and background information discussed previously, a
number of industry-specific inputs determined by other studies, and information provided
by local developers and other individuals familiar with Washington’s incentives. For the
analysis, this study uses the NREL System Advisor Model (SAM). 9
SAM is a performance and economic model designed to facilitate decision making for
people involved in the renewable energy industry, ranging from project managers and
engineers to incentive program designers, technology developers, and researchers.
SAM makes performance predictions for grid-connected solar, solar water heating, wind,
and geothermal power systems and makes economic calculations for both projects that
buy and sell power at retail rates, and power projects that sell power through a PPA.
SAM consists of a performance model and financial model. The performance model
calculates a system's energy output on an hourly basis (sub-hourly simulations are
available for some technologies). The financial model calculates annual project cash
flows over a period of years for a range of financing structures for residential,
commercial, and utility projects. It calculates the cost of generating electricity based on
information entered about a project's location, installation and operating costs, type of
financing, applicable tax credits and incentives, and system specifications.
The state program is fairly complicated, but two possible components of the program are
applicable to a project sited at Cathcart Operations Center. If the county purchases the
system, the system is categorized as a “non-community project,” and the production
incentives are $0.15/kWh and increase to $0.54/kWh if in-state-manufactured PV panels
and inverters are used. If Snohomish County instead hosts a project under the program’s
Business Owned Community Solar definition, the PBI is $0.30/kWh and increases to
$1.08/kWh if in-state-manufactured panels and inverters are used.
9
    For additional information on the NREL System Advisor Model, see https://sam.nrel.gov/cost.
                                                     20
A system that qualifies for the state’s non-community PBI is also eligible to receive
SNOPUD’s Solar Express rebate. But a system that qualifies the state’s community solar
PBI cannot also claim the Solar Express rebate. 10
The federal government offers tax incentives to encourage solar PV development. Under
investment tax credit (ITC) policy, a taxpayer can deduct 30% of qualified system costs
from income earnings. Under the modified, accelerated cost-recovery system (MACRS),
a business can claim accelerated depreciation on the renewable energy investment.
Because the county does not pay taxes, they would not benefit from these federal
incentives if they procure the system themselves. However, under some third-party
ownership structures, it is possible the county could reap some of these benefits if they
were to enter into a long-term (20 years or more) PPA.
For this analysis, the installed cost of fixed-tilt ground-mounted systems was assumed to
be $3.20/W.
The estimated increase in cost from this baseline for a landfill system is 25%. This
increased cost is due to limitations placed on design and construction methods due to the
ground conditions at the site. Such limitations include restrictions on storm water runoff,
weight loading of construction equipment, inability to trench for utility lines, additional
engineering costs, permitting issues, and non-standard ballasted racking systems. The
installed system cost assumptions are summarized in Table 7.
These prices include the PV array and the BOS components for each system, including
the inverter and electrical equipment, as well as the installation cost. A $4/W price is
equivalent to $4,000/kW. This includes estimated taxes and a national-average labor rate
but does not include land cost. The economics of grid-tied PV depend on incentives, the
10
  Details of the state’s PBI are available at: http://apps.leg.wa.gov/wac/default.aspx?cite=458-20-273.
Details of SNOPUD’s Solar Express program are available at:
http://www.snopud.com/home/green/solarexpress/photovoltaic.ashx?p=1490.
                                                    21
cost of electricity, the solar resource, and panel tilt and orientation. For this analysis, the
cost of conventional electricity was assumed to be $0.08/kW, as reported by Snohomish
County based on electric bills for the site.
In the economic analysis, $4/W is the assumed system total installed cost except for
Community Solar scenarios using Washington-sourced components. For analysis of
Washington’s Community Solar program, a $2.50/W cost premium is added to system
costs when considering the higher incentives available when Washington-made modules
and inverters are used. In this case, the analysis assumes $6.50/W. This cost premium is
based on conversations with individuals in Washington familiar with costs of these
components.
For the purposes of the analyses in this report, the project is expected to have a 25-year
life, although the systems can be reasonably expected to continue operation past this
point. Inflation is assumed to be 1.5%, and the county’s nominal discount rate is assumed
to be 5%. The panels are assumed to have a 0.5% per year performance degradation rate,
a typical value. The operations and maintenance (O&M) expenses are estimated to be
$20/kW/yr for the life of the system. In addition, it is expected that there will be a
$250/kW ($0.25/W) charge to O&M in year 15 to replace the inverters associated with
the system. A system DC-to-AC conversion of 80% was assumed. This includes energy
losses in the inverter, wire losses, PV module losses, soiling, and system availability. The
PVWatts system model within SAM was used to calculate expected energy performance
and system economics for county-purchased and third-party-financed procurements. In
addition, the incentives available under Washington’s Community Solar program
were considered.
                                               22
The LCOE can be thought of as the average cost of energy produced by the PV system.
However, the value of this energy to the system owner, in economic terms, is equal to the
price of the utility-purchased electricity the PV system displaces. If the LCOE produced
by the PV system is less than the cost of utility-purchased energy, the system is
considered cost effective.
The project financial results depend on the business arrangement under which the project
is developed. The system could be procured directly by Snohomish County or private
capital could be sought to improve economics of the project.
5.3.1 Case 1
Case 1 assumes Snohomish County self-finances the project using county appropriated
funds. In this case, the county is eligible for a SNOPUD rebate under their Solar Express
Rebate Program. The rebate is $500/kW and has a maximum incentive cap of $10,000.
The maximum system size eligible is 100 kW-DC—the same size as the net-metering
limit.
In addition to SNOPUD’s rebate, the system would also be eligible for the state PBI
under the Renewable Energy System Cost Recovery Program. In this case, the system
can earn incentives as a non-community project with a PBI of $0.15/kWh, which
increases to $0.54/kWh if in-state-manufactured PV panels and inverters are used.
However, because the maximum PBI payout is $5,000/yr, a 100-kW system will max out
the benefit regardless of whether in-state components or cheaper components are used.
This case is not eligible for higher PBIs in the program available under the community
solar program.
For this case, it is assumed that the maximum size of 100 kW-DC is installed and that the
installed costs are consistent with national trends, or $4/W. SNOPUD’s rebate program
requires use of SNOPUD registered installers. Depending on which and how many
installers are registered with SNOPUD, this cost assumption could be optimistic. The
$2.50/W cost premium for Washington-sourced components is not included because this
program does not have this requirement and using higher cost components would further
harm the economics.
The LCOE from a system in this case is estimated to be $0.275/kWh, almost 3.5 times
the current cost of electricity. The $10,000 SNOPUD rebate lowered the LCOE about
$0.01/kWh while the state PBI dropped it about $0.06/kWh.
The community solar analyses assume the $5,000/yr incentive cap is maximized for each
investor and that each investor requires a 7% return on investment for their money. Total
subscriber capital that is brought to a project is calculated considering the maximum
incentive, PBI, and energy generated per year. It is also assumed that Snohomish County
finances the remaining balance of total capital costs using county-appropriated funds.
Washington’s PBI expires June 30, 2020. This analysis assumes that the system is
installed by June 30, 2014, so that the project could capture 6 years of the PBI.
The community solar program’s base PBI is $0.30/kWh but increases to $1.08/kWh for
systems with inverters and modules manufactured in Washington. The cost-benefit of
higher cost Washington components versus higher-earned PBI is considered here. Table 8
shows the PBI versus system unit cost assumptions. As mentioned above, after
consultation with a couple individuals familiar with total installed costs for systems that
include Washington-manufactured components, a $2.50/W cost premium is assumed for
a total cost of $6.50/W for developments on landfills that use local components.
Table 8. Installed Costs Versus PBI Assumptions for Community Solar Cases
5.3.2.1 Case 2
Case 2 is a 75 kW-DC Community Solar system with panels and inverters purchased
through global supply chains. Therefore, a $4/W total system cost consistent with the
national average for systems installed on landfills is assumed. The PBI in this case is
$0.30/kWh, the base rate PBI offered through the program. The assumption in this case is
that the federal tax incentives are not captured by the project.
Under this scenario, the LCOE to the county is approximately $0.235/kWh, or three times
the county’s current cost of electricity. Subscriber payments would cover 36% of the
costs and the county would pay 64%, or $193,000.
5.3.2.2 Case 3
Case 3 is a 75 kW-DC Community Solar project that maximizes the PBI incentive by
sourcing Washington-made modules and inverters. In this case, the PBI is $1.08/kWh and
installed costs are assumed to be $6.50/W, as described above. This case also does not
include any federal tax incentives.
                                            24
The estimated LCOE is $0.138/kWh, or approximately 40% more than what the county
currently pays. This case demonstrates that the community solar rebate for in-state
components more than makes up for their additional costs. The cost share is 79% for
subscribers and 21% (about $102,000) for the county due to higher PBI payments.
5.3.2.3 Case 4
Case 4 is the same as Case 3, except that it assumes that the business entity that is created
to develop the project is able to take advantage of the Community Solar PBI and also
capture the federal investment tax credit and accelerated depreciation. Note that this case
could be a hypothetical scenario because it might be difficult or prohibited by law to
develop a project under this scenario. In this case, it is assumed that an investor with a
tax liability pays for the full cost of the system and then collects subscriber payments
from individuals in the community. The tax investor gets the tax incentives and upfront
subscriber payments, community subscribers get the PBI, and the county as site host gets
the electricity.
Under this case, the subscriber fees and tax incentives appear to cover the full system costs so
the county would not need to front any capital and would therefore receive energy output at
no cost. Note however that, as previously stated, even if it is legally possible, constructing the
business deal might be so complex that it cannot be practically executed.
5.3.2.4 Case 5
Case 5 analysis is for a third-party financed and maintained system with energy output
sold to the county. This is called a PPA. PPA procurement models are described in a later
section. Under this scenario, the system would be sized to best match the site’s electricity
demands, in the range of 100–300 kW. More discussion of system size and site loads
occurs in a later section.
This case also assumes $4/W total installed costs and considers how federal tax
incentives influence economics. Under this scenario, neither the Solar Express rebate nor
the Community Solar rebates can be captured. Due to their complicated structure and
need to attract large institutional investors, systems developed for PPAs are typically
greater than a few megawatts in size. However, it is possible that smaller systems could
be included in this scenario if bundled together with other smaller projects under a larger
umbrella project.
The cost of energy from a system in this case is estimated to be $0.194/kWh under a
PPA, more than two times the current cost of electricity. In addition to the high cost of
energy under this scenario, Snohomish County could be challenged to find participants
developing PPAs for systems this small.
                                               25
                      Table 9. PV Cost of Energy by Development Scenario
In Case 3, “Community Solar, maximum PBI, 75 kW,” the capital raised from the
investors covers 79% of total system costs, while the county would pay the remaining
21%. This would require 16 investors, each bringing about $24,100 to the project. The
county would provide about $102,000 in funds. Under this scenario, the resulting energy
would cost Snohomish County approximately $0.14/kWh from the system over the 25-
year analysis period.
The results indicate that the economics are very challenging for Cases 1 through 3 and
Case 5. From these four cases, Case 3 is the least cost; the county could pursue a
sustainable project at cost of about $100,000.
As described above, Case 4 might be hypothetical, but the results suggest the county
might be able to participate in a sustainable project without having to provide any upfront
capital. If a development firm can legally form and attract interested parties in a timely
manner to capture both the PBI and federal tax incentives, the analysis suggests the
county could offtake free electricity in exchange for hosting the Community
Solar project.
Note, however, that discussions with SNOPUD and others who have done Community
Solar projects in Washington have indicated that these projects are complex and could
take up to 2 years to execute. So in addition to the cash outlay under Case 4, the county
would have to expend personnel resources to see a project to fruition.
Case 5, the PPA scenario, is presented to demonstrate how federal tax incentives are
often captured under third-party financing arrangements to allow a non-tax paying entity
to still benefit from them. In this case, the county would have to sign a 20-year power
contract and pay approximately $0.19/kWh for electricity. Typically, PPAs project sizes
                                                   26
are often greater than 10 MW. It is unlikely that a PPA would work considering the cost
of energy and limited demand at the site.
In addition to the constraints based on total land appropriate for development and
regional interconnection, the maximum size of the system also depends on which entity
consumes the power generated. For this site, the most likely off-taker could be either
Snohomish County or SNOPUD.
During the site visit, SNOPUD indicated that they would consider purchasing up to
2 MW from the system under their Small Renewables Program but would only be
interested in signing a 5-year contract for approximately $0.05–$0.06/kWh for the
renewable energy generated. These terms are insufficient to support PV development for
Snohomish PUD as off-taker. As can be seen in Case 1 in Table 9, a system of 100 kW
has a cost of energy of $0.275/kWh over a 25-year analysis period. A system larger than
this would not qualify for SNOPUD’s Solar Express Rebate so the cost of energy would
increase slightly. If SNOPUD would pay greater than $0.28/kWh for electricity on a 25-
year contract, then a project with SNOPUD as the power off-taker would be
economically feasible.
Snohomish County could install a system greater than the net-metering limit but limit its
size so that little excess energy spills into the grid. The average site load in 2011 was
292 kW-AC. A 365-kW-DC system will produce 292 kW-AC power output under
standard conditions. This suggests that Snohomish County could install a 365-kW-DC
system and make use of most or all of the power produced. Note that this is only an
approximation and that developers would perform a careful analysis of the site’s hourly
or sub-hourly power demand data before recommending a system size for this scenario.
As shown in Case 1 in Table 9, the cost of energy from a 100-kW system, which includes
a SNOPUD Solar Express incentive, is $0.275/kWh over a 25-year analysis period. A
system greater than 100 kW does not qualify for this incentive so the cost of energy will
increase slightly. Energy from a system of this size will cost Snohomish County
approximately 3.5 times more than their current cost of electricity.
Another option, and the most economically viable one, is development of a system within
the constraints of Washington’s Community Solar program. The program rules indicate
that a system “will qualify if it generates 75 kW of electricity or less. If the solar energy
system or a community solar project produces more than 75 kW the entire project is
ineligible for the incentive payment program.” 12 The program rules indicate that
additional systems up to 75 kW in size can be added at a site as long as the system has a
separate inverter, meter, and owners.
Total funding levels that a utility is required to make available for the PBI are 0.5% of the
utility’s total annual taxable power sales. Additionally, 5% of this total is slated for
Community Solar projects of the type considered here (“business owned”) according to
program rules. A SNOPUD representative indicated that this calculates out to
approximately a total program capacity of 108 kW. This representative indicated that
there is currently only a single 4-kW Community Solar system in SNOPUD service
territory and that this system will expand to 22 kW this year. 13 This leaves an available
balance of 86 kW in program capacity for SNOPUD administered business-owned
Community Solar. This means that there is room in the program for only one more
75-kW system.
Table 10 shows systems currently installed in Washington under the Community Solar
program. The system in SNOPUD’s program is the Frances Anderson Community Center
in Edmonds.
12
     http://apps.leg.wa.gov/wac/default.aspx?cite=458-20-273.
13
     Phone conversation with Leslie Moynihan, Renewables Program Manager, SNOPUD.
                                                 28
                                                                                       14
                Table 10. Existing Community Solar Systems in Washington
14
 Provided by Phil Lou by email correspondence. Lou is point of contact for state incentives through
Washington State University Extension Energy Program.
                                                   29
                             Table 11. PV System Summary
The Community Solar program is fairly complicated. Understanding the program and
developing a project will require project champions in Snohomish County government
and motivated community members. The following bullets summarize program rules and
project considerations:
                                           30
5.4 Job Analysis and Impact
To evaluate the employment and economic impacts of the PV project associated with this
analysis, the NREL Jobs and Economic Development Impact (JEDI) models were used. 15
The JEDI models are tools that estimate the economic impacts associated with the
construction and operation of distributed generation power plants. JEDI is a flexible
input-output tool that estimates, but does not precisely predict, the number of jobs and
economic impacts that can be reasonably supported by the proposed facility.
For this analysis, inputs, including the estimated installed project cost ($/kW), targeted
year of construction, system capacity (kW), O&M costs ($/kW), and location, were
entered into the model to predict the jobs and economic impact. It is important to note
that the JEDI model does not predict or incorporate any displacement of related economic
activity or alternative jobs due to the implementation of the proposed project. As such,
the JEDI results are considered gross estimates as opposed to net estimates.
For the Snohomish County Cathcart Landfill site, the values in Table 12 were assumed.
         Capacity                             75 kW                  3,000 kW
         Placed In Service Year                2013                  2013
         Installed System Cost               $487,500             $12,000,000
         Location                          Washington             Washington
Results can be scaled for other project sizes. Using these inputs, the JEDI tool estimates
the gross direct and indirect jobs, associated earnings, and total economic impact
supported by the construction and continued operation of the proposed PV system.
The estimates of jobs associated with this project are presented as either construction-
period jobs or sustained-operations jobs. Each job is expressed as a whole, or fraction,
full-time equivalent (FTE) position. An FTE is defined as 40 hours per week for one
person for the duration of a year. Construction-period jobs are considered short-term
positions that exist only during the procurement and construction periods.
15
  The JEDI models have been used by the U.S. Department of Energy, the U.S. Department of Agriculture,
NREL, and the Lawrence Berkeley National Laboratory, as well as a number of universities. For
information on the NREL Jobs and Economic Development Impact tool, see:
http://www.nrel.gov/analysis/jedi/about_jedi.html.
                                                 31
As indicated in the results of the JEDI model analysis provided in Appendix E, the
proposed 75-kW system is estimated to support 3.2 direct and indirect jobs per year for
the duration of the procurement and construction period, while a 3-MW system would
support 78.1 jobs. Total wages paid to workers during the construction period are
estimated to be $168,700 for 75 kW and $4,153,300 for 3 MW. The total economic
output is estimated to be $432,500 for 75 kW and $10,647,300 for 3 MW. The annual
O&M of a 3 MW PV system is estimated to support 1 FTE per year for the life of the
system, while it is negligible for the 75-kW system. The jobs and associated spending are
projected to account for approximately:
   •   $1,500 in earnings and $2,700 in economic activity each year for the next
       25 years for a 75-kW system
   •   $61,700 in earnings and $108,700 in economic activity each year for the next
       25 years for a 3-MW system.
5.5 Financing Opportunities
The procurement, development, construction, and management of a successful utility-
scale distributed-generation facility can be owned and financed a number of different
ways. The most common ownership and financing structures are described below.
For public entities that choose to finance, own, and operate a solar project, funding can be
raised as part of a larger, general obligation bond; as a standalone tax credit bond;
through a tax-exempt lease structure, bank financing, grant and incentive programs, or
internal cash; or some combination of the above. Certain structures are more common
than others, and grant programs for solar programs are on the decline. Regardless, as tax-
exempt entities, public entities are unable to benefit directly from the various tax-credit-
based incentives available to private companies. This has given way to the now common
use of third-party financing structures, such as the PPA.
Site hosts benefit by either receiving competitively priced electricity from the project via
the PPA or land lease revenues for making the site available to the solar developer via a
lease payment. This lease payment can take on the form of either a revenue-sharing
agreement or an annual lease payment. In addition, third-party developers are able to
utilize federal tax credits. For public entities, this arrangement allows them to utilize the
benefits of the tax credits (low PPA price, higher lease payment) while not directly
receiving them. The term of a PPA typically vary from 20–25 years.
A “flip” agreement can also be signed between a developer and investors within an SPE,
where the investor would begin with the majority ownership. Eventually, the ownership
would flip to the developer once investors’ return is met.
Similar to the SSA, there are a variety of lease options that are available to municipalities
that allow the capture of tax benefits by third-party owners, which result in a lower cost
to the municipality. These include an operating lease for solar services (as opposed to an
equipment capital lease) and a complex business model called a “sales/leaseback.” Under
the sales/leaseback model, the municipality develops the project and sells it to a third-
party tax equity investor who then leases the project back to the municipality under an
operating lease. At the end of the lease period, and after the tax benefits have been
absorbed by the tax equity investor, the municipality can purchase the solar project at fair
market value.
5.5.6 Sales/Leaseback
In the widely accepted sales/leaseback model, the public or private entity would install
the PV system, sell it to a tax investor, and then lease it back. As the lessee, they would
be responsible for operating and maintaining the solar system as well as have the right to
sell or use the power. In exchange for use of the solar system, the public or private entity
would make lease payments to the tax investor (the lessor). The tax investor would have
rights to federal tax benefits generated by the project and the lease payments. Sometimes,
the entity is allowed to buy back the project at 100% fair market value after the tax
benefits are exhausted.
There are some states that offer solar incentives for community solar projects, including
Washington State (production incentive) and Utah (state income tax credit). Community
solar is known as solar gardens depending on the location (e.g., Colorado).
                                             35
6 Conclusions and Recommendations
The site locations considered for a solar PV system in this report are feasible areas in
which to implement solar PV systems. Available acreage and local utility infrastructure
could potentially support up to 3 MW of PV on the Snohomish County Landfill. The
original project proposal was for 5 MW, but a system of this size will not likely fit due to
insufficient area of flat regions. However, site electrical loads and policy and program
size limits suggest a 100-kW net-metered system or a 75-kW community solar system are
more reasonable and are the most economical but still have poor project economics. The
systems in these cases are likely to have paybacks periods of 25 years or more. Although
a 3-MW system would fit on the site, current net-metering limits and lack of other
identified off-taker make a system of this size unviable.
If the county is interested in pursuing a project, it should find a strong project champion
within county government and expect a challenge navigating the project to completion.
The next steps are to develop an internal consensus on whether the county is willing to
take on a renewable energy project that is not supported by economics, decide on whether
to purchase a 100-kW system or pursue a more complicated 75-kW community solar
project, and then move forward with a request for proposals to see what the market
will offer.
Snohomish County’s enthusiasm combined with the state’s high PBIs for locally
manufactured modules and inverters are the two strong drivers that counterbalance the
relatively low cost of electricity. This report finds that a PV system is a possible use for
the site, but that project economics are unfavorable.
                                             36
Appendix A. Provided Site Information
                                37
Figure A-2. Existing infrastructure site map
  Source: Snohomish County Public Works
                    38
      Figure A-3. Sustainable Cathcart proposed project
            Source: Snohomish County Public Works
                           40
Figure A-7. Snohomish County Landfill topography
     Source: Snohomish County Public Works
                      41
    Appendix B. Assessment and Calculations
    Assumptions
                     Table B-1. Cost, System, and Other Assessment Assumptions
Cost Assumptions
Variable                                 Quantity of        Unit of Variable
                                         Variable
Cost of Site Electricity                    0.08            $/kWh
Annual O&M (fixed)                          20              $/kW/yr
Inverter Replacement (Year 15)              250             $/kW
System Assumptions
System Type                              Annual energy      Installed Cost       Energy Density
                                         kWh/kW             ($/W)                (W/sq. ft.)
Ground Fixed                                1,010           $4.00                4.0
                                                   42
Appendix C. Solar Access Measurements
               5/23/2012 11:12 – South end of landfill, edge of top
             Panel Orientation: Tilt=48° -- Azimuth=180° -- Skyline Heading=178°
       Solar Access: Annual: 97% -- Summer (May-Oct): 100% -- Winter (Nov-Apr): 93%
 Figure C-1. Solar access measurements for south end of Snohomish County Cathcart
                             Landfill PV site, at top edge
                                           43
         5/23/2012 11:12 – South edge of landfill, about 30 ft from edge
            Panel Orientation: Tilt=48° -- Azimuth=180° -- Skyline Heading=183°
       Solar Access: Annual: 99% -- Summer (May-Oct): 100% -- Winter (Nov-Apr): 96%
Figure C-2. Solar access measurements for south edge of Snohomish County Cathcart
                       Landfill PV site, 30 feet north from edge
                                           44
        5/23/2012 12:15 – Landfill center, adjacent to cars on landfill
          Panel Orientation: Tilt=48° -- Azimuth=180° -- Skyline Heading=172°
     Solar Access: Annual: 95% -- Summer (May-Oct): 97% -- Winter (Nov-Apr): 92%
Figure C-3. Solar access measurements for center, adjacent to cars, on Snohomish
                         County Cathcart Landfill PV site
                                         45
           5/23/2012 12:34 -- 45deg52'3"N, 12deg7'6"W (East edge)
           Panel Orientation: Tilt=48° -- Azimuth=180° -- Skyline Heading=179°
      Solar Access: Annual: 98% -- Summer (May-Oct): 99% -- Winter (Nov-Apr): 96%
Figure C-4. Solar access measurements for east edge of Snohomish County Cathcart
                                 Landfill PV site
                                          46
Appendix D. Results of the System Advisor Model
                                     47
                     Figure D-3. Levelized cost of energy, no PBI
Figure D-4. Levelized cost of energy with PBI of $0.30/kWh for 6 years (base Community
                                     Solar program)
                                         48
Figure D-5. Levelized cost of energy with PBI of $1.08/kWh for 6 years (Washington
                                     inverters)
                                       49
Appendix E. Results of the JEDI Model for 75-kW
Community Solar and Site Maximum 3-MW
System
Table E-1. JEDI Model Fixed-Tilt Project Data Summary for 75-kW Community Solar
                                          50
Table E-2. JEDI Model Fixed-Tilt Project Data Summary for 3-MW Site Maximum
                                  Size Project
                                      51
         Table E-3. JEDI Model Fixed-Tilt Local Economic Impacts Summary for 75 kW
                                      Community Solar
                                                                           Jobs              Earnings           Output
During construction and installation period                                                 $000 (2012)       $000 (2012)
 Project Development and Onsite Labor Impacts
    Construction and Installation Labor                                     0.7                 $44.4
    Construction and Installation Related Services                          0.9                 $37.6
    Subtotal                                                                1.6                 $82.0           $135.4
  Module and Supply Chain Impacts
   Manufacturing Impacts                                                    0.0                 $0.0             $0.0
    Trade (Wholesale and Retail)                                            0.1                 $9.0            $26.5
    Finance, Insurance and Real Estate                                      0.0                 $0.0             $0.0
    Professional Services                                                   0.2                 $10.4           $35.5
    Other Services                                                          0.3                 $27.5           $94.7
    Other Sectors                                                           0.4                 $5.1            $17.5
    Subtotal                                                                1.1                 $52.0           $174.3
 Induced Impacts                                                            0.5                 $34.8           $122.9
 Total Impacts                                                              3.2                $168.7           $432.5
                                                                                              Annual           Annual
                                                                         Annual              Earnings           Output
During operating years                                                     Jobs             $000 (2012)       $000 (2012)
 Onsite Labor Impacts
    PV Project Labor Only                                                   0.0                 $1.0             $1.0
  Local Revenue and Supply Chain Impacts                                    0.0                 $0.3             $1.0
 Induced Impacts                                                            0.0                 $0.2             $0.6
 Total Impacts                                                              0.0                 $1.5             $2.7
Notes: Earnings and Output values are thousands of dollars in year 2012 dollars. Construction and
operating period jobs are full-time equivalent for one year (1 FTE = 2,080 hours). Economic impacts "During
operating years" represent impacts that occur from system/plant operations/expenditures. Totals may not
add up due to independent rounding.
                                                                52
      Table E-4. JEDI Model Fixed-Tilt Local Economic Impacts Summary for 3-MW Site
                                   Maximum Size Project
                                                                           Jobs              Earnings           Output
During construction and installation period                                                 $000 (2012)       $000 (2012)
 Project Development and Onsite Labor Impacts
    Construction and Installation Labor                                    16.9               $1,093.4
    Construction and Installation Related Services                         22.2                $924.3
    Subtotal                                                               39.1               $2,017.7         $3,333.2
  Module and Supply Chain Impacts
   Manufacturing Impacts                                                    0.0                 $0.0             $0.0
    Trade (Wholesale and Retail)                                            3.6                $221.3           $652.9
    Finance, Insurance and Real Estate                                      0.0                 $0.0             $0.0
    Professional Services                                                   5.3                $255.0           $874.1
    Other Services                                                          7.8                $676.5          $2,331.0
    Other Sectors                                                           9.9                $126.3           $431.3
    Subtotal                                                               26.7               $1,279.0         $4,289.3
 Induced Impacts                                                           12.3                $856.6          $3,024.8
 Total Impacts                                                             78.1               $4,153.3        $10,647.3
                                                                                              Annual           Annual
                                                                         Annual              Earnings           Output
During operating years                                                     Jobs             $000 (2012)       $000 (2012)
 Onsite Labor Impacts
    PV Project Labor Only                                                   0.7                 $41.8           $41.8
  Local Revenue and Supply Chain Impacts                                    0.2                 $12.7           $41.4
 Induced Impacts                                                            0.1                 $7.2            $25.5
 Total Impacts                                                              1.0                 $61.7           $108.7
Notes: Earnings and Output values are thousands of dollars in year 2012 dollars. Construction and
operating period jobs are full-time equivalent for one year (1 FTE = 2,080 hours). Economic impacts "During
operating years" represent impacts that occur from system/plant operations/expenditures. Totals may not
add up due to independent rounding.
                                                                53
    Table E-5. JEDI Model Fixed-Tilt Detailed PV Project Data Costs Summary for 75-kW
                                     Community Solar
                                                       WASHINGTON    Purchased Manufactured
Installation Costs                                        Cost       Locally (%) Locally (Y or N)
Materials & Equipment
  Mounting (rails, clamps, fittings, etc.)               $437,613      100%               N
  Modules                                               $4,806,068     100%               N
  Electrical (wire, connectors, breakers, etc.)         $498,954       100%               N
  Inverter                                              $714,749       100%               N
  Subtotal                                              $6,457,384
Labor
  Installation                                          $1,093,418     100%
  Subtotal                                              $1,093,418
Subtotal                                                $7,550,802
Other Costs
  Permitting                                             $50,525       100%
  Other Costs                                           $1,116,611     100%
  Business Overhead                                     $3,282,061     100%
  Subtotal                                              $4,449,198
Subtotal                                               $12,000,000
Sales Tax (Materials & Equipment Purchases)                 $0         100%
Total                                                  $12,000,000
 Table E-6. JEDI Model Fixed-Tilt Detailed PV Project Data Costs Summary for 3-MW Site
                                  Maximum Size Project
                                                       WASHINGTON    Purchased Manufactured
Installation Costs                                        Cost       Locally (%) Locally (Y or N)
Materials & Equipment
  Mounting (rails, clamps, fittings, etc.)               $437,613      100%               N
  Modules                                               $4,806,068     100%               N
  Electrical (wire, connectors, breakers, etc.)         $498,954       100%               N
  Inverter                                              $714,749       100%               N
  Subtotal                                              $6,457,384
Labor
  Installation                                          $1,093,418     100%
  Subtotal                                              $1,093,418
Subtotal                                                $7,550,802
Other Costs
  Permitting                                             $50,525       100%
  Other Costs                                           $1,116,611     100%
  Business Overhead                                     $3,282,061     100%
  Subtotal                                              $4,449,198
Subtotal                                               $12,000,000
Sales Tax (Materials & Equipment Purchases)                 $0         100%
Total                                                  $12,000,000
                                                  54
Table E-7. JEDI Model Fixed-Tilt PV System Annual Operating and Maintenance Costs for
                                 75-kW Community Solar
                                                                                Manufactured
                                                                                Locally
                                                        Cost     Local Share    (Y or N)
Labor
  Technicians                                          $1,125       100%
  Subtotal                                             $1,125
Materials and Services
  Materials & Equipment                                 $750        100%                N
  Services                                              $0          100%
  Subtotal                                              $750
Sales Tax (Materials & Equipment Purchases)             $0          100%
Average Annual Payment (Interest and Principal)       $56,550        0%
Property Taxes                                          $0          100%
Total                                                 $58,425
Other Parameters
Financial Parameters
Debt Financing
 Percentage financed                                    80%          0%
 Years financed (term)                                  10
 Interest rate                                          10%
Tax Parameters
 Local Property Tax (percent of taxable value)          0%
 Assessed Value (percent of construction cost)          0%
 Taxable Value (percent of assessed value)              0%
 Taxable Value                                          $0
 Property Tax Exemption (percent of local taxes)        0%
 Local Property Taxes                                   $0          100%
 Local Sales Tax Rate                                  6.50%        100%
 Sales Tax Exemption (percent of local taxes)          100%
                                                      Wage per   Employer Payroll Overhead
Payroll Parameters                                     hour
 Construction and Installation Labor
 Construction Workers / Installers                     $21.39           45.6%
 O&M Labor
 Technicians                                           $21.39           45.6%
                                                 55
Table E-8. JEDI Model Fixed-Tilt PV System Annual Operating and Maintenance Costs for
                           3-MW Site Maximum Size Project
                                                                                    Manufactured
                                                            Cost        Local Share Locally (Y or N)
Labor
  Technicians                                              $45,000         100%
  Subtotal                                                 $45,000
Materials and Services
  Materials & Equipment                                    $30,000         100%              N
  Services                                                   $0            100%
  Subtotal                                                 $30,000
Sales Tax (Materials & Equipment Purchases)                  $0            100%
Average Annual Payment (Interest and Principal)           $1,392,000        0%
Property Taxes                                               $0            100%
Total                                                     $1,467,000
Other Parameters
Financial Parameters
Debt Financing
 Percentage financed                                        80%             0%
 Years financed (term)                                       10
 Interest rate                                              10%
Tax Parameters
 Local Property Tax (percent of taxable value)               0%
 Assessed Value (percent of construction cost)               0%
 Taxable Value (percent of assessed value)                   0%
 Taxable Value                                               $0
 Property Tax Exemption (percent of local taxes)             0%
 Local Property Taxes                                        $0            100%
 Local Sales Tax Rate                                       6.50%          100%
 Sales Tax Exemption (percent of local taxes)               100%
Payroll Parameters                                      Wage per hour   Employer Payroll Overhead
 Construction and Installation Labor
 Construction Workers / Installers                         $21.39             45.6%
 O&M Labor
 Technicians                                               $21.39             45.6%
                                                   56
Appendix F. Contact Information for Local
Incentives and Programs
Contact information for SNOPUD renewable program manager is:
       Leslie Moynihan
       Renewables Program Manager
       Snohomish County PUD
       (425) 783-8289
       [email protected]
       www.snopud.com
Contact information for Washington State PBI incentives (called the “Renewable Energy
Cost Recovery Incentive Payment Program”) details are:
       Phil Lou
       Washington State University
       Extension Energy Program
       PO Box 43165
       905 Plum St SE Bldg #4
       Olympia, WA 98504-3165
       (360) 956-2132
       [email protected]
       Beth Mills
       Washington State Department of Revenue
       6500 Linderson Way SW
       Suite 102
       Tumwater, WA 98501
       (360) 705-6642
       [email protected]
       http://dor.wa.gov
57