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Why use Thermal Energy Purchase Agreements

Businesses that use large quantities of hot water finance their large-scale solar energy installations using tried-and-true financing vehicles such as capital budgets, long-term debt, municipal bonds, bank loans, etc. Other Businesses choose to 'Go Solar' through a recent financing innovation known as an "Energy purchase agreement”.

It should be noted that solar heated hot water can also provide chilled water for cooling purposes, using Absorption chillers, if a business has a cooling load.

In the solar thermal business, hot water energy purchase agreements are known as Thermal Energy Purchase Agreements (TEPA's).

In a Thermal Energy Purchase Agreement (TEPA), a separate company finances and owns the solar heating system and then sells the heat to you, the end user. This enables you to manage your organization without the hassles or up-front costs of ownership or long term operations and maintenance, while enjoying all the advantages of going solar, including predictable long-term heating savings.

The TEPA approach gives the solar equipment owner the full benefit of the tax credits and depreciation allowances. This lowers the equipment owner's costs, and the savings can be passed on to the building owner in the form of lower energy payments.

How it Works

Net Green Solar’s financial Investment Partner creates a Solar Investment Trust (SEIT) to own the solar energy system. The individual owners of the SEIT can take the tax credit and charge the business using the hot water for the heat delivered from the solar heating roof system, as well as a small financing and maintenance fee.

The business using the hot water, without incurring a capital expense, receives solar heat at a lower predictable cost than it would from traditional heating sources.

Every month the SEIT partner shall invoice the Business the total amount of kW.hr used, using the price agreed inside the TEPA documentation. One thing is guaranteed…..the cost will be less than the Business pays using their existing conventional system.

In addition, the business gets a SEIT contractor to monitor and maintain the solar heating system to ensure steady energy delivery. As the developer, owner, and manager of the solar heating system, the SEIT assumes the risks and responsibilities of ownership and operation to deliver solar heat delivery.

If the Business already has an existing Fossil fuel heating system the SEIT will ensure this system can function integrated with the Solar system, therefore to ensure the Business retains its original full hot water capacity.

Once a complete hot water heating system comes on line, Net Green Solar shall monitor it through the remote embedded control system. Net Green Solar’s on-staff engineers shall monitor the system remotely 24/7 and oversee long-term maintenance with the local installing company, if they have maintenance capacity, or through other types of local contractors.

The remote monitoring of the system shall also provide the Business with real time hot water usage consumption data and the output capacity from the Solar thermal system.

At the end of the TEPA Agreement term, the Business has three options: They may renew the TEPA and continue buying the heat from the SEIT under new terms; purchase the system at fair market value, estimated at around 10% of the original value; or dissolve the agreement, and ask Net Green Solar to remove the Solar system heating components.

Example of typical Installation:

. Hotel Complex
. Swimming Pool Complex
. Other

Example of typical Returns for a SEIT

Example of typical Costs to Business

Solar Energy Audit Services

With our solar energy audit services, we identify opportunities to reduce the energy use and/or the cost of operating a building or industrial process. Whether it's new construction, renovation, or retrofit, our audit reports provide building owners the information they need to decide which of the recommended modifications they should implement.

To complete an energy audit, we work through the following processes:

1.  Collect and analyze historical energy use
2. Study the building or process and its operational characteristics
3. Identify potential solar modifications that will reduce the heating energy use and/or cost
4. Perform an engineering and economic analysis of potential modifications
5. Prepare a rank-ordered list of appropriate solar modifications
6. Presentation & Report the results

The Key Elements of a Commercial Building Solar Energy Audit/Analysis are:

1. Analysis of two or more years of utility consumption and cost, review of building plans, review of government and utility incentives, and a walk through of the building itself to establish:
· Type of building, principal use or heating/cooling process, and physical arrangement, height, etc.
· Energy Utilization (monthly and annual energy use) in kW.hrs. 
· Delivered cost of heat to the load including energy purchase cost and onsite conversion efficiency (€/kW.hr).
· Breakdown of various heating/cooling systems within the building by type, inlet and outlet temperatures, hours of use, etc.
· Ideal solar system supporting surfaces, such as existing roofs, walls and open ground.
· Calculation of solar heat available from each solar surface.
· Control strategies for the solar energy delivery. 
· Any operations or maintenance problems or practices, which may affect efficiency.
· Tax and incentive savings and finance alternatives for various solar alternatives.
· The potential cost savings and economic returns from the installation of solar heating systems.
2. Description and analysis of the energy-using systems of the building, resulting from on-site observation, measurement, and engineering calculations, including:
· Envelope
· Domestic hot water
· Laundry
· Lighting
· HVAC and Controls
· Process systems
· Utility Providers & Rates
· Other systems, such as Swimming Pools etc
3. Provide an understandable analysis of findings and observations that will show:
· Breakdown of the components of annual energy use and cost.
· Recommended solar heating measures, including predicted savings and cost to implement.
· A description and cost estimate of each recommended solar heating system.
· A description and cost estimate of any measurement and verification methods needed to determine the actual effectiveness of measures.
· An energy analysis summary that includes:
. Present energy use and costs
. Savings from recommended solar heating measures.

We can provide different levels of solar analysis for a building, or group of buildings, or industrial processes. Our reports give owners information they can use for variety of purposes. Whether it's contemplating major energy-saving capital improvements or roof replacement, or new construction or renovation, we can evaluate and recommend a variety of solar measures to save energy and building running costs.

Solar  Project Design Services

We design cost effective solar heating systems, which provide high rates of return. Our systems are economical without government subsidies. However, Government tax incentives can further improve the economics. We know how to design to maximize the economics in all locations.

We can provide these solar engineering and energy design services as part of our design-build capabilities. We can also work with other design professionals and construction contractors to deliver cost effective solar heating systems.

These design costs would be included inside the SEIT package of services. The first 3 years of the energy cost quoted by €/kW.hr to the Business for hot water (and if we are providing cold water for A/C use) would include these start up design costs.

Solar Project Construction Management

Installation and construction of solar-thermal systems on buildings is both a science and an art.

Among the many considerations are:

· Maintaining a weather-tight building envelope.
· Maximizing aesthetics for the public face of the building.
· Minimizing weather hazards to solar equipment such as freezing and boiling of solar fluids.
· Orienting the solar-thermal system to take full advantage of the sun as a heat generator.
· Integrating the solar thermal system with the building’s HVAC system or industrial process.
· Coordinating the project installation with other building service providers, roofers, HVAC companies, electricians, mechanical contractors, etc.

Our engineering staff has decades of hands-on experience in managing major solar thermal and industrial installations.

Net Green Solar’s construction management services typically begin during design, and include:

· Schedule and budget evaluations.
· Financial incentives review.
· Alternative financing analyses.
· Constructability reviews.
· Weighing project alternatives.
· Structuring Tendering packages for lowest cost construction.
· Sourcing equipment and supplies.
· Monitoring and coordinating daily construction activities.
· Owner/SEIT meetings and reviews
· Value engineering.

Solar Installation Maintenance Regime

We will preferably use the original local Installation contractor for the regular Maintenance Regime of the Solar Installation and any related HVAC equipment. If the original Installer does not have this capacity another local certified Installer would be contracted by the SEIT partner.

We would expect a professional relationship to develop between the Business Facility management team and the Maintenance contractor, to ensure easy and efficient access to the building.

Solar Systems do not require that much maintenance due to the limited moving parts required. Net Green Solar shall be monitoring the system to ensure maximum performance. As a drop in performance is usually related to some system fault a quick response from the local Maintenance contractor is guaranteed.

 

 

Interested to going forward with a TEPA?

Study our system examples listed on this page to give you an idea of what financial returns can be generated for your business.

If you are interested please send us an email providing us an indication of your hot water requirements.

Information such as:

· Type of Business.
· Location of buildings.
· Hot Water usage.
· Estimated Energy or Hot water annual consumption.
· Type of fuel presently used to generate hot water.
· Chilled water usage for Air conditioning

We will ask you for further information and electronic copy of the building layout drawings. From this initial information we can provide a budget to carryout an on-site Audit. On acceptance of our proposal we would setup a visit to Facility.

From our presentation of the Audit results, your input to our suggestions and our final evaluations we can involve one of our SEIT partners to provide the funding and Agreement documentation to go forward with you’re your installation.

If you are responsible for designing a facility, building, or industrial process, contact us to find out how you can cut your energy use with solar heating, solar heat recovery and thermal energy management. We can provide unique field tested solar engineering and energy management expertise that can save you energy and money.

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