February 17, 2012 | Recreation Centers of Sun City, Inc. forecasts $1.8 million savings over the next 15 years which includes all costs associated with the installation of solar. The new solar electric (photovoltaic) systems will be installed at all seven Recreation Centers, Bell Lanes, Lakeview Lanes and some of the golf maintenance facilities. Of these structures, some will be roof mounted and some will become covered parking structures. Thermal solar systems will be used at the Bell and Oakmont Recreation Centers to assist in heating swimming pools.
Since our release last week, we have received numerous questions. Instead of responding individually, which is RCSC’s normal policy, we are responding via this release.
The RCSC Board of Directors was unable to make this public until last week because RCSC was required to make bids for the APS incentive blind auction and since that is a very competitive process, it was vital that it be kept quiet that Sun City was even considering a large amount of solar. We submitted every project that qualified for the solar incentive auction as incentives may not be available in the future, or if available, may be significantly reduced.
Because RCSC is a non-profit organization it is not eligible for the federal tax credits offered as an incentive for photovoltaic (“PV”) solar systems. Therefore, RCSC had to find an organization that was willing to purchase and own the PV electric solar systems and lease them back to RCSC. In regards to maintenance, RCSC is responsible for the maintenance of the systems. There is a 25-year warranty on the solar modules and a 10-year warranty on the invertors, with a 2-year “bumper to bumper” warranty on everything. The lease for the PV system is for 15 years; however, RCSC will have the opportunity to purchase the systems after 5 years at a significant discount from their original cost. There are no costs to RCSC associated with the PV system installation, including the covered parking structures. RCSC will pay the lease payments only and these payments were calculated into the savings projections. Sounds too good to be true? It is the same situation as has occurred at the schools, if you have been watching this on television recently, then you are aware of these programs which are now available.
RCSC will purchase the thermal solar outright for a total cost of $326,630 and will receive rebates totaling $84,368. These thermal solar systems slated for Oakmont pool, Bell lap pool, Bell walking pool, and a micro turbine (producing electrical power and heat – CHP) for the Oakmont center are projected to save RCSC a total of $57,087.35 per year, which means these thermal systems will have paid for themselves in less than 5 years.
The calculations used for energy savings are very conservative and project a lesser amount than actually achieved by other users of similar systems. The fact that the entire $12.00 per property/per year increase in assessments for 2012 is required to cover the projected increase in utility costs, should be testament to why it is so important for RCSC to find ways to cushion the ever increasing costs of utilities. We believe that these solar systems will not only provide RCSC with considerable savings, they will help protect us in the future from the ever pressing increases in utility rates.
When RCSC states that there are projections to save $1.8M in 15 years because of the solar projects planned for 2012, all costs are included except maintenance and insurance. RCSC will obtain property and casualty insurance for the solar systems, as they will be a part of our buildings and infrastructure. With that being said, everything required will be accommodated for within our current 2012 budget.
Mark Holohan, an 11-year solar industry veteran, is Wilson Electric’s Solar Division Manager. Wilson is the largest Arizona-based electrical contractor and offers solar for the non-residential building market in Arizona. Mr. Holohan, RCSC’s expert, has 34 years of experience in the energy industry, well over 150 solar electric installations spanning nine states, holds an MBA from ASU, an engineering degree from University of Arizona and, maybe most notably, has been chosen by his peers in the industry to serve as president of the Board of Directors for the Arizona Solar Energy Industry Association.