POSEY SOLAR PROJECT

The Posey Solar Project is an estimated $264 million local investment. An independent study of the project shows that it will result in broad economic benefits, including:

During construction:

• The creation of 250 construction jobs for 18 months.

• A contribution of over $47 million to the Posey County GDP.

• Over 90 additional, indirect full-time local and regional jobs.

During the project's 35-year operational life:

• Annual spending of over $800,000 on local goods and services.

• 5 full-time operations and maintenance jobs

• An additional 9 full-time, indirect jobs.

• A contribution of $1.2 million per year to the local GDP.

The Midcontinent Independent System Operator (MISO) that plans the Midwest’s power grid projects that demand for renewable energy in the wholesale market in 2030, based on existing commitments of utilities, corporations and public policy goals, will reach 30% of total energy. As of December 2019, renewable energy in MISO stands at 8%. Of the 69,000 MW required to meet this demand, only 19,000 MW are currently operating, leaving a 50,000 MW gap. (Source)

Energy buyers, from retail consumers to commercial businesses are increasingly demanding carbon-free power for environmental as well as economic reasons.The price of solar panels and related equipment has dropped significantly over the past 15 years at the same time policies, like renewable portfolio standards, require a percentage of power come from renewables.

Arevon is committed to open and transparent relationships with landowners. We have a standard lease that provides the same terms to all landowners within the project footprint.

There are a number of factors that influence property values and the housing market, and no credible studies have shown an association between the presence of an operating solar field and negative long-term impact on the value of adjacent properties. Various reviews of solar fields and neighboring property values and home sales, including those utilizing data from Indiana, have confirmed there is no long-term impact.

Operating solar fields have minimal impact on the surrounding area: no sound outside the fence line; no odor or emissions; no tall towers or equipment (solar panels typically sit 15 feet or less from the ground); and no increase in local traffic. Additionally, per the County Ordinance solar panels will be setback at least 300’ from residences and will also include vegetative screening within the viewshed.

We enter into voluntary land leases with landowners for the useful life of the solar farm. The land's existing uses vary and include agricultural applications. The land, rested and restored, is returned to the landowner at the conclusion of the 35-year project life, at which time it can returned to farmland or other previous use. Landowners typically find it is more economical to use their land for solar than for farming.

We recognize that Posey County is proud of its farming heritage. Our landowners share in that pride and have taken great care in the decision to participate in this project. The land area to be utilized for the Posey Solar Project accounts for 1.2% of farmland in Posey County. A solar field is a temporary use that allows the land, rested and restored, to return to agriculture production. Participating in the project allows our landowners the flexibility to keep land in their family for future generations to farm.

Solar is a drought-resistant cash crop that will continue to benefit the county year in and year out, creating a reliable cash flow in what can be a very volatile market.

An independent Land Use Analysis conducted by Strategic Economic Research, led by Dr. David G. Loomis, professor of economics at Illinois State University and co-founder of the Center for Renewable Energy, concluded: "the land-use value of solar leasing far exceeds the value for agricultural use."

His study found that for farming to generate more income for the landowner and the local community than solar:

• The price of corn would need to rise to $18.97 per bushel (2020 average market value: $4.45) or yields for corn would need to rise to 446 bushels per acre (2020 yields: 199) by the year 2057

• The price of soybeans would need to rise to $53.66 per bushel (2020 average market value: $11.40) or yields for soybeans would need to rise to 171.8 bushels per acre (2020 yields: 65.4) by the year 2057

An engineering, procurement and construction (EPC) contractor will be hired. The EPC contractor performs design, completes engineering and manages construction of the plant. The EPC contractor also awards construction materials contracts and subcontracts for certain portions of the work. We encourage our EPC contractors to use local contractors and vendors when possible.

Doppler radar works through the interpretation of data received from radar signals that have returned to the sending station after being reflected by an object in the path of the beam. Some of the things that can interfere with this beam to create a false positive interpretation include dense bird populations, adverse atmospheric conditions and smoke plumes. Tall structures such as trees or buildings within the sight line of the sending position are described as a growing problem by the National Oceanic and Atmospheric Administration.

We anticipate the maximum height of the solar panels used at our projects will be no more than 12 feet above the ground and the perimeter security fence will be approximately 8 feet high. Because the radar towers are elevated to avoid signal interference from topography (minimum height of the NEXRAD towers is 32.8 feet in height), it is not anticipated that there would be any impact to radar services due to the development of our projects.

The projects have been sited in close proximity to existing transmission infrastructure, which minimizes the need for new infrastructure to connect the projects to the electrical grid and the installation of any facilities that would have the potential to impact radar signals.

Solar installation jobs require education and/or experience in solar, electrical, renewable energy, engineering technology or construction-related fields. There may also be certification exams available like the North American Board of Certified Energy Practitioners. We will be relying on the engineering, procurement and construction (EPC) contractor, who is not yet hired, to determine training and hiring requirements. We are open to working with local colleges and vocational programs to share information and possible opportunities.

The Posey project is in the Midcontinent Independent System Operator (MISO) interconnect queue and is being evaluated to connect to the nearest viable interconnect point, the AB Brown-Gibson transmission line. A technically and economically feasible interconnection is critical to project success.

Solar panels (or photovoltaic PV modules) turn sunlight into direct current (DC) electricity. The panels are supported by a racking structure and paired with inverters that convert the DC electricity into alternating current (AC). The AC electricity passes through a transformer to ensure it is at the appropriate voltage before being sent to the electric grid at a utility interconnection point.

There are no proven health risks from solar fields, and homeowners commonly have solar panels installed on their residences.

In fact, solar fields are known for having a positive benefit on air quality. Solar fields generate clean, renewable power with zero air emissions and often replace older and less-efficient fossil fuel-based sources of power with significant air emissions. A study from the National Renewable Energy Laboratory shows that this corresponds to a lower risk of respiratory issues and heart attacks.

Solar fields are generally not associated with health risk from electromagnetic fields (EMFs). Humans are exposed to EMFs in their daily life, such as from a refrigerator. We will have operations employees at the solar farm, and their safety is a priority. You can read more about EMFs on the U.S. Environmental Protection Agency’s website.

Solar panels do not produce noise, but the inverters that change the current of electricity from DC to AC do produce a slight hum that is not audible past the property boundaries. Solar projects are considered quiet neighbors.

For optimal power generation, solar panels are designed to absorb sunlight, not reflect it. Glint/glare studies can be performed to assess potential impact. Further, it is common for airports to install solar arrays for power generation, without experiencing glare issues.

The exact technology for this project has not yet been selected. Generally, sizes range from around 3 feet to up to 7 feet. The arrays are configured in blocks or groups of panels. Once mounted on the rack, panels can range in height from 8 to 15 feet high.

Solar projects can only generate by converting sunlight to electricity. The Midwest has daytime peak hours that are well-suited for solar. While some of our sites pair solar with storage resources, storage is not currently planned for this location.

The Posey Solar Project will make enough electricity for about 25,000 households per year.

Solar farms have an expected 35-year life, much of which is covered by a manufacturer’s warranty. Solar panels can continue to produce energy past their warranty, though efficiencies may decrease. Once the panels are no longer efficient, the farm will be dismantled, upgraded or repowered, depending on terms of the land agreement, power needs and other market forces.

The exact technology – and supplier – for this project has not yet been selected. The decision will be made based on quality and cost (including trade and tariff considerations).

Dust does reduce the performance of the panels/modules. Fortunately, they are relatively easy to clean. In wet climates, dust is washed from panels by rain and snow. In drier climates, mechanical washing is performed.

Solar panels do not consist of any liquids; therefore, if one were to be damaged, there would be no risk of contaminants spilling on the ground. The project will utilize solar panels composed of monocrystalline solar cells sandwiched between glass and a metal frame.

Furthermore, the U.S. Environmental Protection Agency's established tests demonstrate that solar modules do not leach toxins into the environment.

The Posey Solar Project will be continuously maintained and monitored to ensure operations remain safe and environmentally sound. If a solar panel is damaged, the maintenance team will remove it and replace it.

We anticipate little to no impact on farm animals. Fencing will be installed along the perimeter of the solar field to prevent farm animals from accessing the solar field.

We have environmental experts conducting an environmental analysis to understand any impacts on wildlife. Solar projects have been known to provide habitat for birds and pollinators like bees and butterflies from project landscaping and ground cover.

Local and state jurisdictions often require studies to be performed to assess the impact to certain species of wildlife, such as rare, threatened, or endangered species study. Other impacts are assessed in an environmental site assessment.

Outside of nighttime lighting needed for safety and security, the project will have minimal lighting and should not cause light pollution. No lighting is required for FAA standards like you may see with wind projects.

Solar generation facilities do not cause impacts to over-the-air (OTA) digital TV reception. Unlike wind turbines that can potentially cause signal scattering due to the turbines and blades and their siting relative to TV stations and receptors, solar facilities have a much lower profile and do not affect the OTA signals.

If maps are available, we will take tile locations into design consideration and attempt to minimize damage. If drain tiles are damaged by the project, we will fix them. It is in our best interest to minimize and/or repair damage as standing water is not desired.

The project will have a drainage plan, as well as a storm water pollution prevention plan.

We intend to put a vegetation management plan in place that relies, to the extent possible, on local flora that potentially maintains the current vegetation and is pollinator friendly. There are vegetation options that include herbivore-friendly species such as alfalfa (depending on local restrictions).

Our vegetation management plan will include weed/vegetation control, primarily through mowing. Weed control is critical to solar projects as weeds can impede maintenance access and cause reduced generation from shading. There are vegetation options that include herbivore-friendly species such as alfalfa (depending on local restrictions).

Prior to the start of construction, we will work with state and county agencies (as appropriate) to develop a detailed plan of the expected transportation routes, the number of trucks and maximum truck weights. The plan will also document the existing condition of the roadways.

We anticipate there will be five operations employees, with average annual salaries of roughly between $70,000 and $100,000. There will also be a need to hire through third-party contractors for seasonal work (mowing), specialized electrical work, etc.

Generally, solar projects contract with experienced solar O&M (operations and maintenance) providers who then hire local employees with backgrounds as technicians and electricians or similar expertise. Additionally, local companies are periodically retained to provide support services consisting mainly of vegetation management but may also include occasional janitorial or snow removal services.

It is standard practice to have a decommissioning plan and cost estimate prior to the start of construction. In some cases, a letter of credit or bond is put in place to ensure the availability of future decommissioning costs.

There are certain federal tax incentives and grants that help make the economics of solar work. Tax credits help the economic viability of the project. At the local level, we review available incentives for large-scale commercial solar. Programs like Enterprise Zones and Renewable Portfolio Standards vary between and within states. The economic feasibility of a project will take into consideration all costs and incentives.