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k Y F 5 L Y Q 0 I J I I 0 X 3 demand) foe a green time period. 'phis analcsis assumes that 3~ percent of peak demand is reduced during nc~ summer peak-period resulting in additional clectcicit~~ cusp saciugs ai the OSC". RENEWABLE ENERGY CREDITS Keneccable cncrgc ardiis, or green tags, represent the em-ironnu•ntal value of renewable cncrgc [hat is substinrtcd for traditional puc~cr. (hoc ~(cgawatt-hour (~[\C~h), cyual tr~ 1 UTAI k\V~h, ul solar cncrgc produced is cyuicalcui to one green tag [hat initialh is owned be the renccvablc cncrgc producer 'f~hc green rags em be sold, ~chercupon nc~ purchaser dorms o-edir frn- the renewable potter represented be the green tag. 'hhe marl:en~aluc of green tags ranges from 511.3U to 53UI1.I)U per Al\\h. No~c that the purehasee does not purchase the actual decrriein- generated, bur rather purchases the right ro claim credit for du' environmental raluc represented be d~c reneccable cncrgc. Green-c and the Climate Ncun-al Neneork certih- and track green rags. ~hhese o~gaoizatiuns a-picallc assign a uniyuc green tag identihrntian number far each renewable unc A[VA~h produced. It mac be possible for nc~ Cin- or a d~ird-parts leasing agent to identih- interested bucers for green tags associated cvirh the proposed Pt' project, a-hich would reduce a~rrall project costs be producing an additional revenue sircim. 1 loccever, this analysis e~dudes green rag re~rnuc due to the uncertaint~~ and volaiilin~ currcnth~ associated ~ei~h dxr renewable cncrgc credit marl:ct. Financing Options [L i6c Citc lacks the capital to purchase a PV' scsrcm outright, options far financing the Pt' inuallaiion iududc leasing the PV' s-stem from a solar developer or securing lo~~- interest luaus ti~um a third park (private "green" lender aud~ur the Calitbuiia Lncegc Covamission). 'fhe financing term can be variable based on the Cii~'s prefercuce. LEASING This model ,hares mane of the same yualitics oC the Pp.1 model (i.c. a third pane entity- peocides the upfront cipilol rcyuircd ti>r the iuslalla~ian), but instead of the third park entire setting as the ac~~ncr- operator, nc~ host plats a more dieter role in the maiuicuauce and iusurauce ul the scstev~. Instead of the Cite pacing for the power the scskrm produces (:u under the PP.A), the solar developer e-ill negotiate a lour Icasc pacmcnt with the Citc (a fi~cd amount paid with a built in escalator regardless of cvhar the scstern peoduees) and still enjoc nc~ federal ~a~ credit and aeeeleeated depeeciation value of the scsrcm. Ai the end of the has shchcr period, the Solar Developer will approach the Cite ~~iih an option lu but out the lease uc c~tcud ii. 16c a>sl u( the Icasc pncmems will Icpicalk be she same or Icss thou the caluc u( the avoided asst u( cleclricit~- Phis model icpicalk Marks best lix PV' projects totaling 3U - 3~U kVC' because nc~ transaction costs arc n-picallc lower than for a PP.A. LOW INTEREST LOANS 'lhc Ciic mac wilizc low interest locus from the Calitbenia I~:ucrgc Covuuissiou (CI~:(:) or a third pane green lender. "1'he CI{C loan is acailablc ank io public agencies w finance cncrgc efficicncc and renewable aaci;gc projects. Public agencies must own du projects in order to yualifc fur the loan. Thr CI{C loan requires a ten tear simple pacbad: on cncrgc savings derived li-om the cncrgc measure. 'Chip means that the CI?C will onlc loan an amount that equals ten scars of cncrgc savings. Since I'V' scstems n-pieallc cost more than du• value of ten scar of enei;gc savings. a CISC loan will likelc anrr onk a ponion of the cost of a PV' scsrcm. .1 third pane loan eau cuter the reu~aiuder of the VV' ~ ~ RIIScnen Ph u~uci di,iic Case ~n~dc. I liili~c Pods L~,.id GhacinL' hn~~ %'~c~~~~ ntsrnriuur .m~„oisc_s fudiis_8111<~c_omad.i_~,L~,