12-17-10 BPU RPT 04 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L [ I U T I L I T T F BOARD OF PUBLIC UTILITIES DATE: December 17, 2010 ITEM NO. 4 SUBJECT: THE NON-RESIDENTIAL PHOTOVOLTAIC (PV) SYSTEM REBATE FOR THE INSTALLATION OF A 57.31 KW PHOTOVOLTAIC (PV) SYSTEM ISSUE: That the Board of Public Utilities consider approval of a $171,930 rebate for a Photovoltaic system installation to McDonaids Restaurant, a Riverside Public Utilities' (RPU) non-residential customer. Rebates totaling over$;,'0,000 must have Board and City Council approval. RECOMMENDATION: That the Board of Public Utilities approve and recommend that the City Council approve a rebate to McDonald's Restaurant through the Non-Residential Photovoltaic Rebate Program in the amount of $171,930. BACKGROUND: The Non-Residential Photovoltaic (PV) System Rebate Program provides financial incentives to business customers who purchase and install solar energy systems. Under the program guidelines, RPU customers can qualify for a rebate of $3 per watt of alternating current (AC) output. For demand rate customers, the rebate cannot exceed 50% of the project cost or up to an incentive cap of $200,000, whichever is less. McDonald's restaurant, a Riverside Public Utilities demand customer located at 2241 University Avenue, recently installed a 57.31 kW Photovoltaic System. The PV panels are attached to a carport shade structure in the parking: lot and will provide energy to the restaurant. The restaurant is part of the new Leadership in Energy and Environmental Design (or LEED) certified construction_ The 44-year-old restaurant was completely rebuilt and the building incorporates a variety of recycled materials in its construction, such as insulation made from old jeans and recycled glass for countertops. Additionally, the building uses natural light from windows and tube lights, and has special fryers in the kitchen that use 40 percent less oil. The Photovoltaic System will greatly reduce both their peak load and overall consumption. Their efforts are a prime example of an established business investing in energy efficiency and renewable resources to reduce electricity usage and lessen their draw on the City's power grid. The 57,310 watt PV system's total project cost of $515,802 makes McDonalds eligible for a rebate of $171,930. Non-Residential Photovoltaic System Rebate incentives cap at $200,000 for Demand customers but require Board and Council approval when the rebate amount exceeds the $50,000 approval limit.