the more things change.... by harry warren, wges

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Harry Warren Jr., President of Washington Gas Energy Services, speaks about the viability of solar energy in large-scale commercial projects as the Maryland, DC, Virginia region approaches grid-parity. This presentation was given December 4, 2009 at the Solar Energy Focus Conference: Fall 2009 hosted by the Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) in Gaithersburg, MD. To learn more please visit:www.mdvseia.camp7.org

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  • 1. The more things change Presentation to the Solar Energy Focus Conference byHarry A. Warren, Jr.PresidentWashington Gas Energy Services, IncDecember 4, 2009 Energy Services, Inc.

2. 1984Energy Services, Inc. 3. Energy Services, Inc. 4. Energy Services, Inc. 5. Solar PV Balance of System Costs If solar panels are free, balance ofsystem costs are too high to makesolar PV grid competitive.Theodore B. Taylor and Harry Warren - 1984Energy Services, Inc. 6. Energy Services, Inc. 7. Energy Services, Inc. 8. 2009Energy Services, Inc. 9. Energy Services, Inc. 10. Energy Services, Inc. 11. Energy Services, Inc. 12. Solar PV Balance of System Costs If solar panels are free, balance ofsystem costs are too high to makesolar PV grid competitive.Harry Warren - 2009Energy Services, Inc. 13. Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008 Ryan Wiser, Galen Barbose, Carla Peterman, Nam Darghouth Lawrence Berkeley National Laboratory, October 2009Energy Services, Inc. 14. Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008 Ryan Wiser, Galen Barbose, Carla Peterman, Nam Darghouth Lawrence Berkeley National Laboratory, October 2009Energy Services, Inc. 15. Mini Financial Analysis - Solar PV Project 1 Watt System No incentivesCapital Cost $ 3.00 Debt Ratio50% Pre-tax Cost of Debt 6% System Life20 yrs Tax Rate35% $3.00 per watt Annual Output Power Price$ 1.2 kwh0.40 per kwhisnt grid parity Annual Revenue Operating Expenses EBITDA$$$0.48 -0.48Depreciation $ 0.15 EBIT $ 0.33Debt Service $ 0.09 EBT$ 0.24Taxes$ 0.08 Net Income $ 0.16After Tax ROE 10.4%Energy Services, Inc. 16. BOS = Non-module costs Non-module costs (which may include items such as inverters, other balance of systems hardware, labor, and overhead).Average non-module costs (which may include such items as inverters, mounting hardware, labor, permitting and fees, shipping, overhead, taxes, and profit) shown in Figure 5 were calculated as the difference between the average total installed cost and the module price index in each year. Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008Ryan Wiser, Galen Barbose, Carla Peterman, Nam DarghouthLawrence Berkeley National Laboratory, October 2009 Energy Services, Inc. 17. Reducing Non-module Costs ?????????? Standardization/modularization of design Optimal component matching / economics Minimize design work Minimize runs Dont oversize for roof Optimal tilt Project development efficiency Client and site selectionEnergy Services, Inc. 18. Reducing Non-module Costs DC to AC to DC? Energy Services, Inc. 19. The more things change The closer we get to grid parity!! ThanksEnergy Services, Inc.

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