Q: What are the bonafides for Lake Street Solar?
A: Our founder, Amber Naqvi, started Lake Street Solar as a mission-driven organization to aid in the rehabilitation of the Lake Street corridor after the George Floyd killing. In our tenure, we have put solar on churches, nonprofits, and small businesses in and around this area. Naqvi was the former president of a tech consulting firm that he helped grow from 20 to over 700 employees before he left to start his second career in solar. We have crafted a diverse team of solar industry experts through our Master Electrician, Joaquin (JT) Thomas, and Director of Operations, Andy Nooleen, each with over ten years in this growing industry. Naqvi is also the founder of Solar Informatics, the software backbone of our process. Although solar is his second career, Naqvi is all in on managing the right people to do the best work possible.
Q: How long has Lake Street Solar been in business?
A: Founded in 2021, we have been in the business of solar development for just over three years. In July of 2024, Lake Street Solar acquired our construction partner, Go Solar, to scale and continue to build mission-driven projects.
Q: How many projects are currently under the Lake Street Solar model?
A: Lake Street Solar has completed 8 projects under the LSS model. Our team has had a hand in developing and constructing a few hundred solar projects over their career.
Q: How big is the Lake Street Solar team?
A: Since our establishment, we have unified into a cohesive team and expanded our resources, bringing the current team count to thirteen members. These members contribute value across various areas such as operations, construction, electrical work, engineering, administration, and management, with the team continuously expanding.
Q: Who will we sign our PPA and other legal documents with?
A: The framework for the investor to be the legal owner of the system will be signed by our investor but modeled and drafted by Lake Street Solar.
Q: Will investment money be administered through and by LSS, giving the client the same expertise and protections afforded to earlier clients by LSS?
A: Yes. We will be using the same framework as our first portfolio. All of the modeling, legal expertise, and modeling will be used.
Q: What about the qualifications and the potential dissolution of the investor?
A: Our investor has a large tax appetite and invests in these projects to take advantage of the tax benefits that nonprofits and other organizations can’t. They have an understanding of the PPA payback period and the timelines required for holding the projects. They are financially incentivized to hold your project as a cash-generating asset and to meet the legal requirements of all associated tax benefits.
Project Details and Operations
Q: Who will own the solar system?
A: Lake Street Solar is taking our model a step further than our first portfolio. We are bringing an outside investor in to provide all the capital and own the system. Since we have already proven this model, the outside investor will gain all our knowledge and work with the same legal staff we used on our first portfolio.
Q: Are there any projects past the buy-out point?
A: No, our oldest project is just over two years from its go-live date. In early August 2024, we had one project that sold its building and with it sold the solar system. We worked with our legal team to provide a buyout option for the system that exited them from their PPA.
Q: What level of involvement of our building manager would you anticipate would be required, during the design period, during installation, and during normal operation before buy out?
A: A building manager is typically our first point person for knowledge on the building’s rooftop, blueprints, and ins and outs. We would expect to have email communications, a few phone calls, and an in-person site visit to learn everything we can about your specific site. During installation, the manager will be our contact for safety and visitor communications. After that, we will mostly interact with the finance team during normal operations unless there is maintenance to be done.
Q: What issues have existing clients had and how were they resolved?
A: In our initial portfolio, we laid the groundwork for future success. Lake Street Solar, initially a small two-person venture, faced some uncertainty regarding its specific relation with Xcel Energy. This concern has been addressed by temporarily suspending billing as we investigate the pending matter. If the matter stems from our modeling, we are committed to rectifying it and ensuring fairness for all parties involved. Our top priority is to guarantee the highest level of service for our clients.
Q: Is our PPA rate tied to the Xcel Energy rate?
A: Yes. We study your historical bills to determine your rate. We will draft a rate that is effective and up to 10% lower than what Xcel charges you, ensuring it’s within 10% of your current rate per kWh.
Q: With our interaction with Xcel Energy, what happens when the solar array produces more energy than we use 1) start to buyout and 2) after buyout?
A: 1) Your system may qualify for various programs, which are unknown to us at this stage in the process. However, your system will be interconnected with the grid and utilize net metering, meaning any additional energy generated will be sold to Xcel. The rate may vary based on your incentives. We will factor this into our model when creating your PPA rate. 2) After the buyout, we will no longer be charging you for each kWh, and that is profit or credit that you will see all of the benefits for.
Financial and Legal Considerations
Q: We have a mortgage, what do you expect the bank will expect in terms of the agreements necessary?
A: Lake Street Solar cannot advise on specific mortgage agreements as a whole. We recommend reaching out to the specific bank that your mortgage is through to see how they treat a Power Purchase Agreement solar system. In August of 2024, we sold one of our systems to an organization that had their building on the market. This took the separate owner out of the equation and allowed them to list the whole property without complication. In your case, we recommend looking at the implications of refinancing your mortgage and other experiences that your bank has with solar.
Q: What happens if Lake Street Solar dissolves (for any number of reasons) before the 8-year point?
A: Currently, Lake Street Solar has no plans to dissolve. Additionally, this second portfolio will be owned by a separate investor and not by LSS. Should our company dissolve, the owner would simply be responsible for finding another yearly maintenance crew which many (if not all) solar companies offer.
Q: Does LSS have liability insurance that will cover their employees during the installation and maintenance activities on the roof/building?
A: Yes. We have all of the necessary insurance, legal framework, and expertise requirements for a solar contractor.
Q: If the equipment were to be blown off the roof and cause damage or personal injury, does LSS’s insurance cover that (until buy out)?
A: There will be insurance in place to cover certain disasters. This particular situation is quite unlikely and would only occur in the case of a catastrophic natural disaster. Attached at the bottom of this document is an example of the items covered by solar insurance.
Q: Will there be any additional exchange of money for leasing our roof space?
A: No. The only charges you will receive from Lake Street Solar will be for your PPA.
Post-PPA Ownership and Maintenance
Q: If a buyout happened today, what should we budget for annual maintenance?
A: We estimate anywhere from $500 – $2500+ for annual maintenance and your insurance plan. The wide range is due to the size of your system which is unknown to us at this phase of the project. The recommended yearly upkeep is yearly O&M by our crew or another of your choice (although we recommend staying with LSS for continuity). Additional funds for maintenance will vary yearly as the system ages. We can’t pinpoint an exact cost, but setting aside all of the money that would have been spent on electricity for the first year or two should put you in a safe spot.
Q: Upon completion of the term with Lake Street Solar, what maintenance services can be anticipated?
A: After your payback term ends, we recommend yearly O&M and insurance for your system. There will be an expense to these two services, however, it will be much less than your current energy bill.
Q: Once our company owns the solar panels who will be involved in monthly billing?
A: Upon completion of your payment term, your only interaction will be with Xcel Energy as your building will still be connected to the grid on their normal utility service.