A3: Recommendation Report Michael Clarke

October 30th, 2013 ESET - Writ 13

Retrofit Analysis and Recommendation

Regalis Retrofits 120 Regent Street

Kingston, ON K7L 1N3 Canada

www.regalisretrofits.ca 613-415-1515

regalisinfo@gmail.com

Objective: Determine optimal energy savings solution.

Property Type: Rural farmhouse; Single-family dwelling.

Budget: $2500 Cash and $10,000 Loan.

Project Scope: Unrestricted technology; One major recommendation.

Client Motivation: Reducing utility cost; Being more 'green'.

Summary

This report will summarize the findings of our retrofit analysis and put forward a single recommendation for your

consideration.

There are several green energy solutions that might be right for your property. We'll analysis the distinct advantages and

disadvantages of those possible solutions.

A recommendation for net-metered solar PV will then be made. This system would be the most applicable to meet your

needs and maximize your stated objective. The technology underlying the recommended system will be explained. The

system would require a financial investment of $12,500, have a payback period of less than eight years and yield a yearly

utility savings of $1678.

Finally, we'll include links to sources of information about different energy savings solutions, for your consideration.

Navigating the retrofit ecosystem can be complex, so it's imperative to be armed with as much relevant information as

possible.

It is our sincere hope that this report will be a valuable tool in making an informed decision on choosing the optimal

green energy solution.

Retrofit Analysis

Utility cost is rising in Ontario. The growing scarcity of crude oil is dramatically increasing the expense of heating a home

with fossil fuels (Appendix A). Ontario electricity prices are following the same alarming trend (Appendix B). New

solutions are required to ease the financial strain being felt by Ontario families.

Many options exist to optimize the energy efficiency of your home: high efficiency appliances, 'smart home' monitoring

technologies, improved building materials, renewable energy systems and more. Let's now examine several solutions

that might be a good fit for your home:

High Efficiency Propane Furnace

Since natural gas is not available at your property, a high efficiency propane furnace would be a solid option

for central heat. Considering your existing oil furnace is fifteen years old, this is a major contributing factor to

high utility costs. Upgrading to a high efficiency propane furnace would be a substantial improvement.

Solar Hot-Water Heater

A solar hot-water heater (SHWH) pre-heats domestic water through the use of outdoor solar collectors.

Cold tank water is pumped through the tube-like collectors, absorbing solar energy. Warmed water then

returns to the tank, easing the heating load. Disadvantages of SHWH's are possible leaks, potential winter

freezing and the need for close system monitoring.

Solar PV

PV (photovoltaic) panels convert sunlight directly to electricity. This energy can either be used

instantaneously in the home, or sold back to the utility. Falling module prices, government incentives and

a fixed microFIT rate from the utility are making PV an increasingly viable option to offset electricity costs.

Ground/Water Source Heat-Pump

Ground/water-source heat-pumps utilize temperature gradients to reduce heating and cooling loads. A

glycol solution rejects heat from the home during summer, vice versa during winter. The pond on the

property affords a unique opportunity to utilize this technology, but substantial capital costs make this

option less than ideal.

High R-value Insulation

Insulation in the attic space could be improved from the current R-12 to at minimum an R-25. This low

cost solution improves heat retention in winter and reduces the summer air-conditioning load.

However, given the specified scope of this report, we must belay an insulation recommendation in

favour of the option to follow.

Main Recommendation: Solar PV

Your property has the advantages of a south-facing roof, ample

roof space and optimal slope angle. It is the perfect candidate for a

moderately sized solar PV system.

The SHWH and heat-pump solutions would require constant

monitoring and maintenance, restricting the freedom from your

family to take extended vacations.

A new propane furnace would still utilize fossil fuels, not satisfying

your motivation of 'being more green'.

More attic insulation would reduce utility costs, but we feel it is

not a substantial enough upgrade to warrant being our main

recommendation.

Solar PV is the optimal green energy solution for reducing utility cost. Solar PV uses sunlight, a free and un-diminishing

natural resource, as fuel. Your home becomes a renewable energy factory, reducing the demand from the utility. Hands-

off, no maintenance operation means your family is free to take vacations without worry. It increases property value;

solar PV homes sell at a premium above market value. More than simply an upgrade or retrofit, solar PV is a smart

investment. There are several possible configurations of solar PV, and in the next section we'll describe the one most

applicable for you.

How it Works: Solar PV with Net-Metering

Solar PV transforms sunlight to electricity for use in the home. Direct current (DC) is generated by the PV module, which

is then converted to alternating current (AC) through an inverter. This conversion process is necessary to generate

electricity usable by modern home appliances. Why can't PV modules generate AC power directly? It's complicated, but

is basically due to the physical properties of silicon PV and the characteristic of AC power. Once DC from the module has

been transformed, it is ready to power your home appliances.

Through a configuration called 'net-metering', AC can power your home and be sold back to the grid. Net-metering has

two electrical meters in your home: one to record your draw from the utility and one to record power produced from

your PV system. All generated power would first go to offsetting your utility demand, with any surplus being distributed

to the grid. The difference between those two rates is used to calculate your utility cost. When your PV system is

generating little power, like in low-light or cloudy conditions, more grid power is used. When your system is producing

surplus power, it flows to the grid, effectively running your meter backwards.

A Typical Net-Metered Solar PV System

Main Recommendation Advantages:

Free fuel (sunshine)

Increased property value

Guaranteed utility rate for surplus power

Governmental rebates and incentives

No maintenance or monitoring

Low environmental footprint

No plumbing (leaks/flooding)

High irradiance from south facing roof

Falls within budget

Main Recommendation Costs:

System Component Cost

Inverter / Balance of Systems $4500

Modules $3000

Racking $1500

Inspections/Permits $1000

Install Labour $1500

Meter(s) $1000

Net Total $12,500

Cost Comparison of Possible Solutions

System Cost Estimate Payback Window Yearly Utility Cost

Savings

Solar Hot Water Heater $7000 - $10,000 5-10 years $590

Propane Furnace $7000 - $10,000 5-10 years $1124

Ground/Pond Heat Pump $12,500 - $16,000 10-15 years $785

Attic Insulation $1500-$3000 10-15 years $342

Solar PV with Net-Metering $12,500 7.6 Years $1678

Conclusion

We believe a net-metered solar PV system to be the optimal solution to offset your utility cost. It offers the highest

yearly savings of all examined solutions. Transforming sunlight to electricity, it is the 'greenest' of all possible options.

With PV, your south facing roof can be converted into an electricity generating factory. The low maintenance, hands-off

character of PV gives your family the freedom to take vacations without worry. Finally, it improves the property value of

your home.

It was our privilege to compile this report, and we hope it is adequate to inform your choice in energy saving solutions.

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-2500

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17500

22500

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System Life (Years)

Financial Return from PV System over Time

Lifetime Return on Invesment: $21,060

Breakeven Point: 7.6 Years

Initial Invesment: $12,500

Yearly Utility Cost Savings: $1678

To learn more about net-metered solar PV, refer to "http://en.wikipedia.org/wiki/Net_metering".

To learn more about the Ontario microFIT feed-in-tariff program, refer to "http://microfit.powerauthority.on.ca".

Appendix A

National Energy Board. (2010) Canadian Energy Pricing Trends 2000-2010 - Energy Facts (ISSN 1925-2706). Retrieved

from National Energy Board of Canada website: http://www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/prcng/

cndnnrgprcngtrndfct2011/cndnnrgprcngtrndfct-eng.pdf

Appendix B

Ontario Energy Board. (2013) Historical Energy Prices. Retrieved from Ontario Energy Board website:

http://www.ontarioenergyboard.ca/OEB/Consumers/Electricity/Electricity%20Prices/Historical%20Electricity%20Prices