Report to: General Committee Report Date: December 15, 2008

SUBJECT: Grid Tied Solar Photovoltaic (PV) Pilot Project

PREPARED BY: Viive Sawler, Manager, MECO

RECOMMENDATION:

THAT the Report titled, “Grid Tied Solar Photovoltaic (PV) Pilot Project” be received.

THAT Council authorize the installation of a 10 kW grid-tied solar PV installation at the Civic Centre that includes web-enabled software to promote the educational and awareness building value of this project.

THAT Council authorize funding for this project to an upset cost of $100,000 through MESF and up to $25,000 for design/feasibility work through MECO.

THAT Staff report back to General Committee with budget and design details for the proposed project upon completion of the Request for Proposal process.

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

1. Purpose 2. Background 3. Discussion 4. Financial 5. Others (Strategic, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this pilot project is to increase Markham’s leadership role in energy conservation and showcase our commitment to increasing renewable energy supply by installing a 10 kW grid tied solar photovoltaic (PV) system at the Civic Centre. In addition, the project will serve as a tremendous education and awareness building opportunity for both staff and the local community. A web-based monitoring system would be included which would allow for the retrieval of detailed information such as a live link to the amount of green electricity being generated and fed into the grid, the amount of carbon displaced as well as other interesting comparisons of benefits achieved. This can be promoted via the Town’s website, electronic information boards as well as other marketing and promotional tools.

BACKGROUND:

This Pilot Project concept was brought forward as a staff application for funding through the Markham Environmental Sustainability Fund – Fall funding cycle. Implementing a pilot solar PV project at a Markham owned building will demonstrate leadership in energy conservation and will serve to increase our profile in this area while securing our commitment to champion renewable energy opportunities.

The proposed project is to grid-tie the system which would mean that green energy generated would be sent back into Ontario’s electricity grid thereby allowing the Town to access an incentive of $0.42/kWh under the Province’s Renewable Energy Standard Offer Program. A 10 kW system will generate approximately 11,000 kWh of electricity which will in turn provide about $5000 per year in revenue under this incentive, representing a 20 year payback period. This under this project should be evaluated though from a ‘triple bottom line’ perspective – economic, environmental and social.

Economic

While on the economic side, the payback period is longer term, the maintenance and operational costs are very low. Once installed, solar panels require little upkeep other than an inspection now and then to ensure they are kept clean and are operating optimally. Approximately, $5000 per year in revenue will be generated under the RESOP contract and this may increase over the term of the contract depending on the Province’s decision to adjust the incentive level. An application will also be made to the Ministry of Energy and Infrastructure’s Municipal Eco-Challenge Fund (application due February 6, 2009) that may provide some dollars towards this project (up to 50% of the cost). Other funding may be available through the Federation of Municipalities (FCM) but details on their funding incentives will not be available until January 2009.

Environmental

From an environmental perspective, solar energy has many benefits. It is plentiful, renewable and producing power from solar PV panels displaces the need for generating power through fossil fuels, thereby contributing to reduced GHG emissions and a reduced carbon footprint for the Town. Solar energy does not interfere with the natural environment and provides quiet, clean and low maintenance generation while enhancing local energy self reliance and contributing to a diversified energy supply mix.

Social

From a social perspective there are also many benefits in that solar energy provides quiet, clean power. It contributes to local energy self reliance and represents an opportunity to contribute to a more integrated urban energy system. Grid-tying the system would provide experience that we could then replicate at other Town facilities in the future. Also, there are a number of Markham based companies in the ‘solar business,’ which means this project would serve to promote local economic development and contribute to job creation and security.

OPTIONS/ DISCUSSION:

There are a number of options that may be pursued from both a location and a design point of view. Potential locations to site the solar PV panels are described below in Options 1 and 2 but to ensure optimal performance should primarily be south facing. There are also a number of design options ranging from basic roof top installations to more complex and creative options such as solar ‘awnings’ or solar ‘trees.’ Solar panels designed as awnings could serve as shade providers which may increase the benefits of the solar installation by reducing hot spots and glare which in turn would reduce the Town’s air conditioning load during the summer months. This may add some cost to the installation. The second option entails mounting solar panels on poles. However, there are security and vandalism issues associated with this ‘tree’ type of design plus an added complexity and cost associated with under grounding the wiring required for connection purposes.

Option #1

The preferred option is to install the 10 kW solar PV system at the Civic Centre. This building represents a high profile location that can be modeled as a beacon of innovation, in line with promoting Markham as Canada’s High Tech Capital. Depending on the exact location of the installation at the Civic Centre, an option could be to put some panels on a south facing roof and/or design some of the panels as awnings on a south facing wall. Further analysis and feasibility work will be completed to determine the most appropriate design for this location if the project is approved.

Option #2

Due to the modular nature of solar PV panels, it would be possible as a second option to split up the 10 kWs and spread them across two or more locations. Some could be installed at the Civic Centre, while others could be installed at one of the community centres such as Milliken Mills, or even at a smaller facility such as a stand-alone library. The implication of pursuing this option is a 10 – 20% increase in cost due to the various connections, additional inverters that would be required at separate sites, etc.

Following the completion of the proposed pilot project and after ample time is given for measuring and monitoring success, the Town could consider investigating additional solar PV installations at several other Town owned buildings depending on availability of funding support.

ALIGNMENT WITH STRATEGIC PRIORITIES:

This project would support “Building Markham’s Future Together” goals and in particular is well aligned to the “Environment” area of strategic focus. In addition, it would complement the efforts and commitment to the FCM-ICLEI Partners for Climate Protection Program (PCP) currently being undertaken. This would be one example of an initiative that would lead towards a GHG reduction target as part of developing a Local Action Plan.

RECOMMENDED

BY: ________________________ ________________________

Viive Sawler, Manager, John Livey, CAO

MECO

ATTACHMENTS:

MESF Project Application – Grid Tied Solar PV Pilot, V. Sawler presentation to EIC, December 4, 2008

Photovoltaic Systems, Generation PV presentation to EIC, December 4, 2008