1. Community Solar & Minnesota Three LLC Project Brian Krambeer CEO of Hawkeye REC, Cresco, Iowa President/CEO of Tri-County Electric Cooperative, Rushford, Minn.

3.  Poor solar resources and/or shade.  Inadequate structural support.  No room.  Zoning restrictions.  Renters & condo owners.  Financial limitations. Why Community Solar?

4. Project Due Diligence  Member Interest / Acceptance/ Participation  Member satisfaction survey.  Heartland Security survey.  Member advisory committee.  Member contacts.  G&T (Dairyland Power Cooperative) 250kW allowance for cooperative-owned DG.

5.  Project Cost  No incentives for not-for-profits.  Member-to-member subsidization.  Cost of member owned vs. community PV.  Acceptable financial return.  System benefits. Project Constraints

6.  Cooperative Partners The Business Model

7. Co-ops formed LLC to own and operate the array. Federated provided up front capital in exchange for tax credits. Members provided balance of capital in exchange for units of capacity to produce renewable energy. Co-ops credit members by monetizing kWh on a monthly basis for 20 years.

8.  Ground mount 25 kW PV array.  Located at HREC in Cresco, IA.  Production monitoring interface with HREC website.  Ground Mount 40 kW PV array (expanded to 74 kW).  Located at TEC in Rushford, MN.  Production monitoring interface with TEC website. PV Technology

9.  Minimum level of participation = 1 unit.  1 unit=275 watts (rated capacity 1 PV module) HREC  1 unit=410 watts(rated capacity 1 PV Model) TEC  Member paid the cost/unit upfront.  Total monthly production of array is divided by total # of units.  Each member receives credit for their unit(s) production.  Member receives on-bill credit for kWhs. (NO $$ exchanged) Member Participation

10.  HREC (250 watt panels)  Member pays $1,200 per unit up front.  TEC (410 watt panels)  Member pays $1,400 per unit up front  Member receives the “output” of unit for 20 years.  Co-op covers all insurance, O&M & annual inspections. Member Participation

11.  No member cross subsidization.  Raise member satisfaction / improve image.  Use as an educational tool.  Discover how to use the PV production for system benefits.  Obtain 100% subscription to community solar projects  TEC 90% HREC 50% subscribed Project Goals

13. Minnesota Three LLC Tri-County Electric Cooperative Freeborn-Mower Cooperative Services Peoples Energy Cooperative

14. Minnesota Three LLC Dragonfly Solar – Contractor SolarWorld - Panels

15.  We purchased 2 acres in Oronoco, MN Business park.  We received approval for a $385,000 REAP grant.  Applied to the DPC RFP for 500 kW Solar PPA.  Proposal to have distribution cooperatives build solar project and sell power back to Dairyland (G&T) (Reversed cooperative power supply model). Minnesota Three LLC

16.  We were awarded a Purchase Power Agreement contract from Dairyland Power Cooperative.  Immediately began construction.  Completed the project in June 2014 and held our official ribbon cutting ceremony on August 6 th. Minnesota Three LLC

17. - 1,880 panels. -682,000 kWh per year. -Powers 60 homes. -At the time, it was the largest commercial solar project SE Minnesota (summer of 2014). Minnesota Three LLC

18.  ‘GREAT’ neighbors  Elaine Garry at Peoples Energy Cooperative.  Jim Krueger at Freeborn-Mower Cooperative Services.  Dairyland Power Cooperative for their support  GREAT project and a true model of cooperatives working together. Minnesota Three LLC

21.  Talk to your electric cooperative  Look for partnership opportunities  Look for long term benefits  TEC,HREC & Dairyland Power Cooperative are exploring opportunities for new solar opportunities as an alternative option to net metering. Recommendations

22. Questions? Brian Krambeer CEO of Hawkeye REC, Cresco, Iowa President/CEO of Tri-County Electric Cooperative, Rushford, Minn.