Why install solar panels?
During the Healthy Church Initiative process the value around caring for creation and being a leader in sustainability of practicing good environmental stewardship came through clearly; specifically mentioned was installing solar panels. Solar energy would help offset our energy consumption, enhance our building and serve as a physical symbol of this congregation’s commitment to sustainability and the environment.
What is urgency for doing solar now?
During the initial due diligence for a project of this nature, Hamline Church received a proposal from Innovative Power Systems as part of their application on our behalf to the Made in Minnesota (MiM) state solar incentive program, which offers a rebate to increase cash flow for the first 10 years of the project, thus helping offset the initial cost more quickly. With the approval of the Church Council, Hamline Church applied for and did not get picked in the MiM lottery in 2016, but we were picked in 2017. We have one year to install solar to receive the incentive funds, which means the panels must be installed by April 2018.
Are we getting more than one bid?
Yes, per church policy, any capital project estimated to cost more than $2,000 requires more than one bid or “check” pricing. We obtained a total of three bids, of which two were highly competitive, a very good indicator we are paying the “right” price for this project.
How do we plan to pay for it?
The biggest contingency impacting our decision on how to finance this project is the installation timeline and the requirement of a down payment. We reviewed a variety of options including: allocating a portion from the operations budget, obtaining debt financing, using endowment interest income, or future capital campaign funds. Church Council reviewed and adopted one funding option that allows us to be able to show proof of funds in order to sign a contract with an installer, which we have done. This option includes a combination of using endowment income proceeds, church operational funds that would be reimbursed in future years, and/or low-interest debt financing. However, since there will be a lag time before actual installation occurs (currently expected to begin in late January and be producing by March), capital campaign funds may be available at that time which would mean debt financing would not be needed. The choice to use capital campaign funds will be made by the Church Council and be based on the total initial pledges, a thorough review of all potential projects and their budgeted cost, and church priorities.
Will having solar negatively impact our status as a registered historical building?
No. At the request of the Church Council, the architectural firm MacDonald Mack Architects wrote the Minnesota Historical Society on our behalf and specifically asked for their consent for installing a solar array on the education wing. We received their approval letter July 24, 2017.
How much of our energy consumption will be offset by solar?
Initial estimates suggest our current energy consumption may be offset by half or slightly more by solar, creating operational savings that could potentially be applied to expand our HVAC system should that project be one of the capital campaign priorities the community elects to do. We have been gifted by the Leo A. Daly firm a complete energy modeling study of our building. The result of this study shows that we could expand our HVAC system somewhat (e.g., add the Fireside Community room to the existing cooling) without adding any further operational budget burden.