an introduction to the solar electric market presented by: derek coen atlantic electric supply...
Post on 20-Dec-2015
219 views
TRANSCRIPT
An Introduction to the Solar Electric Market
Presented by: Derek Coen
Atlantic Electric Supply
Black & Decker UniversityOctober 23, 2009
I.E.C.- Chesapeake
Renewable Energy Committee
Foad Alvandi Spectrum Energy [email protected]
Don Bonnet Ridgeway & Ernest [email protected]
Derek Coen, Chair Atlantic Electric Supply [email protected]
Jim Deal IEC – Chesapeake [email protected]
Julie Golofski BP Solar [email protected]
Mike Fitzpatrick M & S Electric [email protected]
Jim Holt Holt Electric [email protected]
Tom Hummel Aztec Electric [email protected]
David Lucier Crum Electric [email protected]
Jean Maisel JDL Electric [email protected]
Mathew Misterka New Age Electric [email protected]
John Ross Hawkins Electric [email protected]
Eric Shatzer Hawkins Electric [email protected]
Grant Shmelzer IEC – Chesapeake [email protected]
Mike Yeakey Anne Arundel CC [email protected]
Despite the environment, global warming, national security and job creation,
individuals will not make the move to renewable energies until it makes financial
sense to do so.
The time is NOW!
This Region is Being Impacted by High Energy Costs.
The Region’s Electrical Future? Rate Increases, Shortages and Brown Outs
To reduce pressure on the grid, governments will increase incentives to encourage the switch to Renewable Energy.
Sources: Washington Post 2-3 & 7-1-08Bureau of Labor Statistics 8-10-09
BGE rates have increased 74%.
PEPCO rates have increased 78%.
SMECO rates have increased 157%.
This region now pays some of the highest electrical costs in the nation.
As of June 2009, this region pays $.15/kWh (13.6% higher than the national average.
Due to population growth and increasing production costs, electricity rate increases are forecast to continue into the future.
Since 2001
What is Being Done About it?
The Federal Government Has Acted
The solar investment tax credit covers 30% of PV system costs. The credit will be offered for a period of eight years (until 2017). Over $800 million of clean energy bonds will be authorized for
renewable energy generating facilities. This alone is projected to create tens of thousands of new jobs.
Congress Passes Investment Tax Credit (10-7-08)
“… these tax credits have turned the solar industry from a small, cottage industry into an economic engine for America”
Rhone Resch, President SEIA
State and Local Governments Have Acted
Prohibits unreasonable restrictions of solar energy projects. Requires 2% of state’s energy from solar by 2011 and 20% from renewable power
by 2022. Establishes SREC program. Establishes Clean Energy Loan Program. Several counties now offer property tax credits.
Maryland Solar Grant: Up to $10,000 for systems under 20kWh– $1.25/ watt for the first 2,000 watts of capacity – $0.75/ watt for watts 2,001 - 8,000 – $0.25/ watt for watts 8,001 - 20,000
“We must do all that we can to secure Maryland’s energy future.” Gov. Martin
O’Malley
Maryland – Solar Related Incentives
What are Renewable Energy Credits?
Maryland has a program that offers Solar Renewable Energy Credits (SRECs). One SREC equals 1000 kWh of electrical generation. The value of an SREC is based on the Alternative Compliance Payment (ACP)
schedule (2009 = $400, 2011 = $350). This is the penalty that utilities must pay to the Public Service Commission (PSC) for not meeting target goals.
The value of an SREC in 2009 is about 60% to 70% of the ACP ($240 to $280). To benefit, homeowners must register their systems with the Maryland PSC and
the PJM Interconnection GATS program.
Selling of SRECs is another way that Marylanders can offset the costs of solar systems.
SREC Examples:
A 3kW solar system generates about 3.6 SRECs per year
A 5kW solar system generates about 6 SRECs per year.
State and Local Governments Have Acted
$3.00 for each of the first 3,000 installed Watts: $ 9,000 $2.00 for each of the next 7,000 installed Watts: $14,000 $1.00 for each of the next 10,000 installed Watts: $10,000
Maximum Rebate (20kW system): $33,000
Approved incentives will be paid in advance of installation.
Washington DC joins the ranks of progressive states and counties offering incentives to purchase solar systems
District of Columbia Establishes New Incentives (2-2009)
State and Local Governments Have Acted
Residents and businesses can receive rebates for installation of PV systems.
Residential Rebate: $2.25/Watt. Capped at 10kW.
Business Rebate: Varies by size. $2.25/Watt for 3 to 10kW systems. Capped at 200kW.
PA also participates in the AEC market (RECs).
“Today marks another exciting milestone in Pennsylvania’s efforts to achieve energy independence…,”
Gov. Ed Rendell
Pennsylvania opens “Sunshine Program” (May 2009)
The Incentives are Adding Up
Federal Tax Credit: Tax credit covers 30% of system cost. District of Columbia: Grants based on system size. Range from $3,000 to $33,000. Maryland: Grants based on system size range from $1,250 to $10,000.
– Montgomery County – Property Tax Credit of $5,000 of system cost. – Howard County – Property Tax Credit of $5,000 of system cost.
Pennsylvania: Residential rebates based on system size range from $2,250 to $22,500. Net-Metering: All jurisdictions offer Net-Metering. Renewable Energy Credits (RECs): Provide additional incentives. Sales Tax Exemption: All PV systems are sales tax exempt.
Federal and local credits, grants and rebates add up to make the case for going solar very compelling.
“By 2016, we expect solar energy to be the least expensive source for consumers.” Rhone Resch, President SEIA
Other Initiatives Exist The Solar America Initiative
The aim of the SAI is to achieve parity with
grid electricity by 2015.
How is the Solar Electric Market Responding?
Installations are Soaring
0
2,000
4,000
6,000
8,000
10,000
12,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(MWpeak)
Grid Tied
Remote habitation
Off-Grid Industrial
Global Forecast – Installed Megawatts
Source: BP Solar
Photovoltaic (PV) Prices are Dropping
Global PV production & price comparison.
Source: BP Solar
Production growth rates have exceeded 35% annually.
The global PV industry has grown over 30% yearly for the past 15 years. Prices of solar panels have continually dropped to around $4.00/W today. Forecasts are for continued gains in PV efficiencies and cost reductions. Government tax credits, grants and loans are playing a crucial role. Given the high and increasing costs of electricity in the N.E., solar electric
will likely become cost-effective here before it does in many other areas.
With incentives, the solar market will continue to grow at impressive rates -- even in the current economy!
Solar Economics and Prospects
A Summary of the Market
How Does Solar Energy Work?
Solar Electric Power - The Basics
How Much Sunlight is Required?
This area is considered a good environment for
solar energy.
DC/MD/PA Average sunlight
exceeds 4 hrs/day
What Direction are the Panels Pointed?
Facing south Angled to latitude In the sun (no shade)
Solar will not work for every location. Panels must be ……
What are the Configuration Options?
Grid-tied
Represents 90% of solar PV market.
Takes advantage of Net-Metering option.
Simple system – modules, racks and inverter.
Does not work when grid is down.
Grid-tied with battery backup
Provides power when grid is down.
Expensive - generators are often better option.
Often used where grid interruptions can last several days and a generator is not feasible.
Well suited for mission critical applications: medical, emergency services, computer systems.
What are the Configuration Options?
Direct power Ideal for remote locations that only need power during the day. Solar module(s) powers fan or water pump. No battery or controller needed.
Off-grid More complex and expensive. Often used in remote off-grid areas. Or, where electricity is inconvenient. Batteries require regular maintenance.
Grid-tied PV System
To AC Grid
Grid-tied With Battery Back-up
To / From AC Power Grid
Solar System Components
Modules Mounting systems and hardware Combiner boxes and disconnect switches Inverter
Specifications (typical):
Size: 60” x 33” x 1.8”
Weight: 25 to 40 lbs
Voltage: 17 to 36 vdc
Watts: 170 to 205
Major Manufacturers:
BP Solar Evergreen
Kyocera Mitsubishi
Sharp Solar World
Solar Modules
Mounting Systems
Roof mounts
Pole mounts
Ground mounts
Static Mount or
Tracking Systems
Combiner Boxes, Disconnects and Combination Boxes
Combiner Box: Enables the wiring of multiple strings of modules into a single inverter.
Disconnect Switch: Disconnects power between array and inverter and between grid and inverter. Can be integrated into inverter.
Combination Box: Performs the function of the combiner box and disconnect switch.
Inverters
Converts DC power from solar panels to AC power for home use or Net-Metering uses.
Grid-tied inverters must match the frequency of the power grid and are more expensive.
Many inverters offer integrated combiner box and disconnect.
Manufacturers: Exeltech, Fronius, Kaco, Outback, SMA, Xantrex
What are the Costs vs. Incentives of Solar Energy?
Typical System Installed Costs
Item System Size < 6kW System Size > 6kW
PV Array $4.00 $4.00
Inverter $1.20 $1.20
B.O.S. and Installation Costs
$2.80 $1.80
Total Costs $8.00 per Watt (+/-) $7.00 per Watt (+/-)
“Rule of Thumb”-
Installed prices are around $8.00/Watt
Electrical savings/M: 3kW = $60 Renewable Energy Credits (RECs) Other credits could apply Interest on loans is deductible Property value increases Provides Hedge against rate increases
Simplified System Costs with Incentives
System Size Approx. Costs State Grant/Rebate Fed Tax Credit Total Incentive
3.0 kW $24,000 $3,250 $6,075 $9,325 / 39%
3.0 kW $24,000 $9,000 $4,500 $13,500 / 57%
Maryland
District of Columbia
Solar electric systems in this size would save 75 tons of CO2 over 25 years.
3.0 kW $24,000 $6,750 $5,175 $12,075 / 51%
Pennsylvania
What Is the IEC-Chesapeake Doing?
An Introduction to Photovoltaics: NABCEP Certificate of Knowledge Exam offered
October 2nd, 3rd and 4th - Bristol, PA (BCCC)Oct. 20th thru Dec. 15th - (9 wks) Odenton, MD (Tuesdays 4:00 to 6:00 p.m.)
IEC-Chesapeake – Learning Opportunities
IEC-Chesapeake is proud to be recognized as a NABCEP approved training facility.
PV Systems & The NEC (1 day course): November 3rd, 4th and 5th - Elkridge, MD / Newtown, PA
The Business of Solar PV (1 day course): November 17th and 18th - Elkridge, MD (U of M) / Wilmington, DE
PV Systems – Inverters & Batteries (1 day course): February 2nd and 3rd - Odenton, MD / Bucks Co, PA
IEC-Chesapeake - Learning Opportunities
IEC-Chesapeake is pleased to have partnered with BP Solar for two functioning Solar Labs.
PV Installer Certification (2 day course):
February 12th and 13th – Odenton, MD
Solar Installation Lab (4 hour lab):
By Special Arrangement – Odenton, MD
For the latest class schedule visit:
www.iec-chesapeake.com
What Should Electrical Contractors Be Doing?
Solar is a natural industry for electrical contractors. Solar systems require special skill sets and training. The customers will be the same.
Interested contractors should be educating themselves and watching for:– Efficiency gains in PV panels.– Price reductions in PV panels.– Increasing electricity rates.– Increased government incentives.
Watch Developments Closely
Things are changing in all of these areas and will further boost opportunities in the industry.
Useful Websiteswww.dsireusa.org - Database of State Incentives
www1.eere.energy.gov/solar/solar_america/about.html - Solar America Initiative
www.renewable-energy-world.com - Solar News & Industry Information
www.solarbuzz.com - Solar News & Industry Information
www.Findsolar.com - Solar Estimator
www.solarenergy.com - Education & Training
www.irecusa.org - Interstate Renewable Energy Council – Education & Training
www.nabcep.org - North American Board of Certified Energy Practitioners
www.seia.org - Solar Energy Industry Association, Lobbying & Education
www.solarelectricpower.org - Solar Electric Power Association
www.ases.org - American Solar Energy Society
www.bge.com - Baltimore Gas & Electric
www.pepco.com - PEPCO
Thomas Edison (1847 – 1931)
“I'd put my money on the sun and solar energy.
What a source of power!
I hope we don't have to wait 'til oil and coal run out before we tackle that.”
Thank you