Distributed Solar Photovoltaics in South Carolina: A Techno-Economic Analysis for Red Ventures Fort Mill Campus

Abstract

This Master's Project assesses the economic, reliability, and environmental benefits that Red Ventures can obtain by installing a distributed solar photovoltaic (PV) system at its headquarters in Fort Mill, South Carolina. The analysis provides a comparison of a behind-the-meter PV system and net metering PV system based on the project financing type (levered and unlevered), taxpayer type (efficient and self-sheltered), and PV system location (rooftop, parking deck, and rooftop and parking deck). Our team strongly recommends proceeding with the installation of a 937 kW-DC behind-the-meter solar PV system across all available rooftops (RV1, RV2, RV3, and RV4) and the North and South parking decks with 53% debt and 47% equity. The financial indicators demonstrate the robust viability of this project, with anticipated expenses totaling $3.0 million and electricity savings of $4.5 to $4.6 million over a 25-year project's operation lifespan. A levered investment in the PV system would result in an internal rate of return ranging from 10.8% to 11.9%, a net present value of $0.17 million to $0.21 million at a 7% discount rate, and a short payback period of 3.2 to 3.6 years. Moreover, the environmental impact of this project would be significant. The solar system could meet 10% of the company's annual electricity demand with an estimated avoidance of 19,894 to 20,304 metric tons of CO2 emissions, an amount equivalent to removing 5,000 cars from the road for one year. A financial modeling tool is provided along with this report to allow the client to explore how changes in assumptions affect cost-benefit outcomes.