HOOPSTER SUNS BUILD SUN

Other Peoples’ Money (OPM).

The favorite acronym of the booming 80s and now accepted wisdom: It’s better to use OPM for any investment.

A Power Purchase Agreement like the one the National Basketball Association's Phoenix Suns entered into with Tioga Energy is a newly popular, breakthrough concept in solar system financing. It allows a building’s occupants to install a solar system using OPM instead of bearing the burden of the large upfront costs that, though they eventually lead to an extended period of free, solar energy-generated electricity, may be too large for a building owner interested in solar to finance or take on.

In this case, Tioga Energy will pay for the system, hire an installer/operator and sign a contract with the building’s occupant. The Suns and the City of Phoenix, owner of the Suns’ home court US Airways Center, will agree to buy all the electricity generated by the system from Tioga Energy at a fixed rate for an extended period of years.

The agreement gives the Suns solar power and protection from skyrocketing electricity costs for the extended period without the necessity to bear the burden of a large expenditure (leaving them more money to sink into player contracts).

Tioga Energy will reap its profits on the back end of the deal. After the system is paid off, some 5 or 10 years into the contract, they will go on selling the power the solar system generates to the building’s occupants at the contracted rates but will be getting the power essentially for free.

At that point, Tioga Energy will be getting MFTS: Money From The Sun.

Breakthrough financing aside, this is a terrific move for solar energy and the Phoenix arena.

First, anybody who has ever been in Phoenix in July knows that air conditioning is a necessity. With the price of electricity sure to get higher, the one thing likely to remain abundant and cheap in southern Arizona is sun.

Second, the message about New Energy (and cimate change) reaches a whole different audience when a pro basketball team installs a solar system than the audience the message reaches when the Googleplex installs one. Take it from a southern boy who learned about racism by reading about Jackie Robinson and Peewee Reese, these kinds of gestures in the world of sports matter.

Roger Efird, President, panel maker Suntech America. "The Phoenix Suns are leading the way for Arizona in fighting the effects of climate change on the environment…We are delighted that Suntech products will be used to showcase the benefits of solar energy to the Suns fans and city residents."

Power Purchase Agreements are available from a variety of companies for residential and commercial solar systems. Check with the American Solar Energy Society (ASES) or the Solar Energy Industries Association (SEIA) for more information.

One thing Arizona has is sun. (click to enlarge)

Phoenix Suns teams with EI Solutions and Tioga for solar energy system
September 8, 2008 (Energy Business Review)

WHO
Phoenix Suns; EI Solutions; Tioga Energy (Paul Detering, CEO); the City of Phoenix, AZ

WHAT
The City of Phoenix is installing an EI Solutions solar energy system in the US Airways Center, home court of the Suns, using a breakthrough financing system from Tioga Energy.

Now the Suns will have sun. (click to enlarge)

WHEN
Residential and small commercial systems typically cost anywhere from $15,000 to $25,000, after rebates and tax credits, and take 5 to 10 years to pay off.

WHERE
- The US Airways Center is in Phoenix, AZ.
- EI Solutions is based in San Rafael and Pasadena, CA
- Tioga Energy is based in San Mateo, CA

WHY
- The 194 kilowatt system will be designed and installed by EI Solutions. It will have 1,125 Suntech panels on 5th level elevated carport structures that will give 18,000 square feet of shade for cars.
- The system’s output is equivalent to the power used in 26 of the Suns 41 home games, almost 2/3 of the power the team uses in the regular season.
- EI Solutions built one of the largest solar energy installations in the U.S., a 1.6 megawatt system at the Googleplex in Mountain View, CA

The system will be built by the same company that installed the landmark Googleplex system. (click to enlarge)

QUOTES
Paul Detering, CEO, Tioga Energy: "In addition to being leaders on the court, the Suns are taking the lead in realizing long-term energy needs and the financial and environmental benefits of solar power. Through the PPA agreement Tioga is able to accelerate and simplify solar adoption, allowing the Suns to focus on winning basketball games rather than the performance of their solar power system."