PowerOptions Launching First-of-its-Kind Solar Program for Nonprofits

Colleges, Universities, Hospitals Among 500 Institutions to Benefit

Boston, May 10 — The cleaner, cost-effective and more sustainable energy benefits of solar power will be available to nonprofit colleges, universities, hospitals and other institutions through a first-of-its-kind program created by PowerOptions, the state’s leading energy buying consortium.

PowerOptions today issued a Request for Qualifications for solar developers to create this unique program to expedite and streamline solar development for its 500 nonprofit members.

“The new program will save our members time and money by streamlining and standardizing the process,” said PowerOptions President and CEO Cynthia A. Arcate. “Removing barriers to development is important for our members—all nonprofit organizations and municipal and state facilities—where staff time and expertise can be scarce.”

The innovative program is a first-of-its kind in Massachusetts, aggregating development from across the entire state to capture the benefits of leveraging multiple projects. It provides great opportunity for the chosen firm, with instant market share.

“We are an attractive consortium for developers looking to enter or expand into Massachusetts,” added Arcate. “Our members are prime candidates for solar installation projects, with many colleges, hospitals, schools and housing authorities already showing great interest.”

Before issuing the RFQ, PowerOptions conducted extensive research of its members to determine their needs and interest in a solar program. Eighty percent of PowerOptions members indicated interest in the program, and more importantly, 100 percent of larger members, those with annual electricity costs of more than $1 million and in a strong position to undertake a solar installation project, indicated interest in PowerOptions’ new program.

Following the model of PowerOptions electricity and natural gas supply programs, the new solar program will have standardized terms and conditions. The program will be structured to give nonprofit organizations benefits of tax incentives which make solar projects economically feasible but are out of reach because of their tax-exempt status. The developer will pass the benefits of tax incentives back to the nonprofits in the price for the electricity,

“Under this approach, a third party would provide the capital and own the solar photovoltaic equipment, which will reside at the nonprofit organization,” said Arcate. “The nonprofit will enter into a long term power purchase agreement to buy the power from the solar developer, who will be responsible for any maintenance and updates to the equipment. The only cost to PowerOptions members would be the purchase of the energy.” Members may also choose to own their equipment.

“I’ve come to rely on PowerOptions for advice on our energy purchasing contracts,” said Simmons College Assistant Vice President for Administration Janet Fishstein. “This program may be a great opportunity for us to look at an additional way to forward our goals of energy efficiency, energy conservation, and reducing our carbon footprint.”

“The schools view energy conservation as part of a good stewardship commitment to our green community,” said Town of Lincoln Public Schools Administrator for Business and Finance Buckner M. Creel. “We look to photovoltaic and other renewable sources to help meet the Town’s aggressive energy reduction goals.”

While many electricity supply contracts penalize customers for reduction of usage associated with implementing a solar installation project, PowerOptions’ contract allows for it with no extra costs or penalties. “We anticipated the growing shift to renewable energy, and included this feature while developing our supply program,” said Arcate.

About PowerOptions®

The award-winning PowerOptions® is among the largest electricity and natural gas purchasing consortiums in Massachusetts, with $160 - 200 million of annual energy commodity purchases and a combined demand of approximately 200 megawatts of electricity and 11 million dekatherms of natural gas usage. Any nonprofit or public institution in Massachusetts may become a member and participate in this collective purchasing effort. For more information, visit www.poweroptions.org.