KR Solar Implementation Project

As part of the roofing replacement project at KR the board has decided to implement a solar electric system to power our chillers as well as power some common areas in the event of a long term power outage.   The North and South solar systems will support the electric needs of our two chiller systems and have been funded by an investor, with whom we've signed a Power Purchase Agreement for .26c/kwh.   Prior to solar our rate with HECO averaged .42c/kwh.  The PPA is a 10 year agreement at the end of which we can purchase the two systems for about 10% of the cost of installing them.  We also have the option to extend the PPA at that time if we so choose.  The Northern Common Area system was purchased outright so the power generated by that system is ours and costs us nothing going forward.  We anticipate a 4 year payback on the cost of system installation while enjoying the benefits of inexpensive power, battery support and the ability to create a command center should another longer term power outage occur.