Madera Community Hospital is a non-profit organization in Madera, California that installed a 1,140 kW ground-mounted solar system. The project was funded through a Power Purchase Agreement (PPA) and achieved these results:
2,183,220 kWh per year
12%-15%
40% of the hospital’s electricity consumption
Madera Community Hospital’s decision-makers were concerned about the rising costs of electricity and wanted to reduce their electricity bills. That’s why they chose to install solar panels in addition to other energy-efficiency initiatives such as lighting upgrades.
The solar panels are set up on a nearby piece of land owned by the hospital. They use a single-axis tracking system that follows the sun’s movement to produce the most energy possible.
The details and benefits of the solar project was first presented to the CFO and Facilities Director before passing through several committees and Board of Directors.
Because the solar Power Purchase Agreement offered a price below utility rates, Madera Community Hospital immediately started saving 12% to 15% on each monthly electricity bill, which outperformed initial estimates.
The solar installation was able to be done without disrupting the hospital’s operation. When a solar power system is installed, it needs to be connected to the electrical grid, a process known as “interconnection.” This typically involves temporarily shutting off the electricity supply to safely connect the new solar system to the existing power infrastructure.
For Madera Community Hospital, the interconnection happened at midnight using backup generators to ensure continuous power supply to the hospital’s critical functions.
Like many other hospitals, it operates 24-hours a day and there’s no convenient time to cut the power supply.
The hospital doesn’t have to worry about solar system maintenance because through a PPA agreement, the maintenance responsibility is on the solar installer. The hospital’s solar panels need to be washed more often because of the dust in California.
The permitting process for ground-mounted arrays required consultation and comments from neighborhood residents. They felt good about the project and employees and patients often ask about how they can get solar in their homes.
The project was financed through a 20-year Power Purchase Agreement (PPA). A solar PPA is a way for hospitals to adopt solar energy without upfront costs and maintenance responsibilities.
With a PPA, a solar company installs the solar panels on the hospital’s property at no initial cost to the hospital. This means the hospital doesn’t need to spend its own money to buy the solar panels or pay for their installation.
Instead of buying the solar panels, the hospital agrees to buy the electricity generated by these panels from the solar company. This electricity is usually sold at a lower rate than what the hospital would pay the local utility company.
The price the hospital pays for this solar electricity is fixed for the duration of the agreement, typically around 20 years. This helps the hospital to predict and manage its energy costs better, as they won't be affected by the rising utility rates.
The solar company takes care of all the maintenance and repairs for the solar panels. The hospital just benefits from the electricity produced.
Over the long term, the hospital can save a significant amount of money on its electricity bills. The fixed, lower rate often results in substantial savings compared to traditional energy sources.
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