ACTION

Office of the Superintendent of Schools

MONTGOMERY COUNTY PUBLIC SCHOOLS
Rockville, Maryland
April 27, 2015

MEMORANDUM
To:

Members of the Board of Education

From:

Larry A. Bowers, Interim Superintendent of Schools

Subject:

Award of ContractSolar Photovoltaic Power Purchase Agreements at Various

Locations

Background
In my memorandum of April 2, 2015, I informed you that staff in the departments of Facilities
Management and Materials Management have conducted a solicitation for solar photovoltaic (PV)
power purchase agreements. We have significant experience with hosting solar PV systems and
purchasing electric power generated through power purchase agreements from the eight systems
we contracted for in 2008 and 2009. Following that time, several factors have emerged that have
provided a very competitive environment with significantly lower prices. These factors include
increased value for the solar renewable energy credits and decreased costs of the solar PV panels.
The solar PV system developer retains ownership of the solar renewal energy credits and sells
them to third parties, which is passed on to Montgomery County Public Schools (MCPS) in the
form of lower electric power purchase agreement prices. This has allowed the solar PV developers
to offer pricing that is approximately 30 percent lower than in 20082009.
The basic arrangement of a solar PV power purchase agreement is that the solar developer finances,
designs, constructs, owns, operates, and maintains the solar PV system. MCPS agrees to host
the solar PV system on individual school rooftops for a period of 20 years. Because its large
initial investment is paid back over the term of the contract, the contractor requires a sizable early
termination fee to protect its investment.
MCPS also agrees to purchase the electric output of the solar PV system at a fixed price provided
in the power purchase agreement. The solar PV system developer is able to combine the
tax incentives for solar energy, the sale of the solar renewal energy credits, also known
as environmental attributes, and offer MCPS electric power that is priced below the cost
of conventional electricity.

Members of the Board of Education

April 27, 2015

Another variation of solar PV power purchase agreements is for the solar PV system to be mounted
on the ground where adequate land is available. While MCPS has experience with rooftop power
purchase agreements, the ground-mounted type of power purchase agreement is even more
attractive because of the lower risk of problems, including the potential for roof repairs or the need
for that roof space in the out years of the contract.
The departments of Facilities Management and Material Management conducted a public
solicitation process for solar PV power purchase agreements, using a detailed request for proposals
that was developed by staff in these departments in conjunction with the Office of the General
Counsel and outside counsel. The public solicitation process generated the submission of seven
proposals. The following representatives comprised the selection committee:

Technical staff in the Department of Facilities Management

A procurement staff representative in the Department of Materials Management
A principal at one of the schools being proposed for a solar PV system
A community member with technical expertise and experience as a solar energy activist

The selection committee unanimously selected the SunEdison LLC proposal due to its competitive
prices and history of successful experience locally. SunEdison LLC was the firm that performed
installations of the solar PV system at eight schools in 2008 and 2009.
The scope of this project includes rooftop-mounted solar PV systems at eight schools. In addition,
the scope also includes a ground-mounted solar PV system at a remote site. This site would
be leased, permitted, and developed for the exclusive use of providing electricity to MCPS.
In addition, the resolution will authorize MCPS staff to implement additional rooftop and
ground-mount solar PV system projects with SunEdison LLC that prove feasible and in the best
interest of MCPS.
The current group of schools was selected to host the rooftop solar PV systems because of recently
installed roofs and suitable roof layouts for solar PV systems. In addition, the schools did not have
expansive vegetative roofs that would eliminate the ability to use the roof to host solar PV systems
and are not currently contemplated for revitalization projects that would affect the roofs in the
20-year term of the agreement. The following schools were selected: Fields Road Elementary
School; Clarksburg/Damascus (new), Roberto W. Clemente, Redland, and Sligo middle schools;
and Sherwood, Walt Whitman, and Watkins Mill high schools. The electric generating capacity
of the systems proposed at these schools is 2.2 megawatts with an estimated annual production
of 3,800,000 kilowatt-hours. The annual utility cost avoidance is estimated to average $206,000.
The ground-mounted solar PV system recommended for award of contract is remotely located
on a site that is not owned by MCPS. As the solar PV system developer, SunEdison LLC will be
responsible for arranging the lease of land and permitting for the system to generate electricity
for the exclusive use by MCPS. This ground-mounted system is proposed to have an

Members of the Board of Education

April 27, 2015

electric generating capacity of 2.0 megawatts with an estimated annual production of 3,700,000
kilowatt-hours. The annual utility cost avoidance is estimated to average $130,000.
Hosting additional solar PV systems furthers the goals of the MCPS Environmental Sustainability
Management Plan and provides significant annual utility cost avoidance. I recommend the
following resolution for your approval.
WHEREAS, The expansion of solar photovoltaic systems hosted by Montgomery County Public
Schools and the purchase of the electricity through power purchase agreements furthers the goals
of the Montgomery County Public Schools Fiscal Year 2014 Environmental Sustainability
Management Plan; and
WHEREAS, The departments of Facilities Management and Materials Management solicited
proposals for solar photovoltaic power purchase agreements; and
WHEREAS, SunEdison LLCone of the leading providers of solar photovoltaic systems in the
United States with a strong presence in the state of Marylandwas selected as the contractor based
on a competitive process in compliance with applicable procurement requirements; and
WHEREAS, SunEdison LLC successfully installed and currently operates solar photovoltaic
systems in Montgomery County Public Schools at eight schools, as well as similar systems
for other satisfied customers; and
WHEREAS, SunEdison LLC has proposed to finance, install, own, operate, and maintain
photovoltaic systems of a rated capacity of approximately 2.2 megawatts on the rooftops that are
suitable for installation of the photovoltaic systems at Fields Road Elementary School;
Clarksburg/Damascus (new), Roberto W. Clemente, Redland, and Sligo middle schools;
and Sherwood, Walt Whitman, and Watkins Mill high schools; and
WHEREAS, SunEdison LLC has additionally proposed to finance, lease, and permit the property,
and install, own, operate, and maintain photovoltaic systems of a rated capacity of approximately
2.0 megawatts through a ground-mounted solar photovoltaic system at a remote site for the purpose
of providing Montgomery County Public Schools electricity for 20 years; and
WHEREAS, The power purchase agreements with SunEdison LLC for the rooftop installations
and ground-mounted solar photovoltaic systems will provide significant annual utility cost
avoidance; and
WHEREAS, SunEdison LLC has proposed to consider additional roof-mounted and groundmounted solar photovoltaic systems on Montgomery County Public Schools roofs and Board of
Education-owned properties; now therefore be it

Members of the Board of Education

April 27, 2015

Resolved, That the Board of Education approves the selection of SunEdison LLC as the successful
contractor based on the public solicitation process for solar photovoltaic power purchase
agreements; and be it further
Resolved, That the Board of Education authorizes the interim superintendent of schools
to negotiate and enter into power purchase agreements with SunEdison LLC to host solar
photovoltaic systems on Board of Education-owned and non-Montgomery County Public Schools
properties for 20-year terms subject to the provisions of the request for proposals and the power
purchase agreements; and be it further
Resolved, That the Board of Education agrees to purchase electricity generated from
the solar photovoltaic systems installed at the eight schools and a ground-mount system at
a non-Montgomery County Public Schools location for a 20-year term, subject to the provisions
of the request for proposals and the power purchase agreements; and be it further
Resolved, That the Board of Education authorizes the interim superintendent of schools or his
successor(s) to negotiate and enter into additional power purchase agreements for up to an
additional 7.0 megawatts of capacity with SunEdison LLC to host and purchase the electricity
generated from the solar photovoltaic systems; and be it further
Resolved, That the interim superintendent of schools or his successor(s) provides a report of any
additional power purchase agreement contracts that are executed.
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