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Basics of Photovoltaic (PV) Systems for Grid-Tied Applications

Pacific Energy Center 851 Howard St. San Francisco, CA 94103

Courtesy of DOE/NREL

Presented by Pete Shoemaker

Basics of Photovoltaic (PV) Systems for Grid-Tied Applications


Material in this presentation is protected by Copyright law. Reproduction, display, or distribution in print or electronic formats without written permission of rights holders is prohibited. Disclaimer: The information in this document is believed to accurately describe the technologies described herein and are meant to clarify and illustrate typical situations, which must be appropriately adapted to individual circumstances. These materials were prepared to be used in conjunction with a free, educational program and are not intended to provide legal advice or establish legal standards of reasonable behavior. Neither Pacific Gas and Electric Company (PG&E) nor any of its employees and agents: (1) makes any written or oral warranty, expressed or implied, including, but not limited to, those concerning merchantability or fitness for a particular purpose; (2) assumes any legal liability or responsibility for the accuracy or completeness of any information, apparatus, product, process, method, or policy contained herein; or (3) represents that its use would not infringe any privately owned rights, including, but not limited to, patents, trademarks, or copyrights.

PG&E Solar Information


www.pge.com/solar

Pacific Energy Center


www.pge.com/pec

Contact Information

Pete Shoemaker
Pacific Energy Center 851 Howard St. San Francisco, CA 94103 (415) 973-8850 pjsy@pge.com

PG&Es Climate Change Commitment


PG&E is committed to leading by example when it comes to climate change. That means more than just minimizing the greenhouse gas emissions from our operations. It also means maximizing the opportunity we have to lead efforts to establish responsible policies and programs to address global climate change. Adopted by PG&E Corporation, May 2006

Investing in Renewables and Emerging Technologies


Californias goal of 20% renewable energy by 2010 is most aggressive renewable energy goal in U.S. Since 2002, PG&E has contracted for more than 2,100 MW of renewable energy from wind, solar, geothermal, biomass, and hydro resources. We are exploring a number of emerging renewable technologies.

PG&Es recent agreement with Solel-MSP-1 for 553 megawatts one of the worlds largest solar commitments is expected to be fully operational in 2011.

PG&Es 2008 Electric Delivery Mix


--on average over 50% of the energy PG&E delivers --on comes from sources that emit almost no carbon dioxide

PG&E as a Partner and Solutions Provider


PG&E Portfolio Solution

Reduce Energy Use

Partnership Education Outreach ClimateSmart

Renewable Power Supply

Customer Solar Installations


As of Q1 2008 PG&E has over 22,000 customers who have installed solar generation to help them meet their energy needs
More than 21,000 residential customers and 1,000 nonresidential customers

Customer on Net Metering tariffs have installed over 184 MW of solar generation
98 MW by residential customers; 86 MW by nonresidential customers An additional 127 MW has been installed by customers who are not taking advantage of the NEM tariff structure

Annual PG&E Solar Interconnections


7,000

Over 25,000 total


6,000

50% of the installs in the entire U.S.!


7,000

5,000

6,000

Installations

5,000

4,000
Installations
4,000

3,000

3,000

2,000

2,000
1 ,000

1 ,000

0 2000 2001 2002 2003 2004 2005 2006 2007

0 2000 2001 2002 2003 2004 2005 2006 2007

Agenda
Technology
Products System Design

Feasibility
Financing Location/Siting

Process
Installation Business Overview

11

Learning Objectives
TECHNOLOGY Become familiar with the basic types of PV cell/module technologies and how AC power is made Understand the concept of net metering in the context of electricity flow and billing FEASIBILITY Learn the current average costs of PV systems, before and after accounting for relevant incentives Identify the key siting issues that need to be considered for every potential PV project PROCESS Understand the sales and installation cycle and how to interpret PV bids Get an overview of the PV business and job opportunities

One Minute Summary


Rent a portion of utility power plants Buy your own power plant

CURRENT

Same electricity

POSSIBLE

Courtesy of DOE/NREL

Source: Pete Shoemaker

Your home needs electricity

The basic economics are just like the rent vs. buy of purchasing a home.
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Basic Terminology
CPUC: California Public Utilities Commission (sets policy) CEC: California Energy Commission (rates products) CSI: California Solar Initiative (main solar rebate program) NSHP: New Solar Homes Partnership (program for new homes) IOU: Investor-Owned Utility (like PG&E) MUNI: Municipal-Owned Utility (like SMUD) RPS: Renewable Portfolio Standard (how much green power a state or utility must have, and by what date) DC: Direct Current (produced by solar panels) AC: Alternating Current (used in the home) Efficiency: Measure of how much of the sunlight on a particular area is converted to electricity (%) Capacity: Total amount of power that a system produces
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Agenda
Technology
Products System Design

Feasibility
Financing Location/Siting

Process
Installation Business Overview

15

Electricity Terms

Electricity Fundamentals
Watt (W) = Basic unit of Power
In generator: Capacity to do work In appliance (load): Requirement for work to be done Electrical terms: Amps x Volts = Watts 5A x 12V = 60 W 0.5A x 120V = 60 W

Kilowatt (kW), Megawatt (MW)


1 kW = 1,000 Watts 2.5 kW = 2,500 Watts 1 MW = 1,000,000 Watts 500 MW = 500,000,000 Watts

Electricity Fundamentals
Watt-hour (Wh) = Power over Time = Basic unit of Energy or Work
Watts x hours = Watt-hours

In generator: Amount of energy produced


How many Watt-hours are produced if a 100W generator runs for 5 hours? 500

Wh

In appliance: Amount of energy consumed (work done)


How many Watt-hours are used if a 10W light bulb is on for 3 hours? 30

Wh

Kilowatt-hour (Kwh)
1 kWh = 1,000 Wh ==== costs about $0.14 on average

Types of Electrical Current


Voltage x Time 1/60 of a second +V 0V -V 60 Hertz in U.S. (60 cycles / second)

DC = Direct current
*PV panels produce DC *Batteries only store DC

AC = Alternating current
*Utility Power

PV Technology Overview

Solar Water Heating


Solar Pool
Swimming pool heating 80 - 85 degrees from May to October

Source: Fafco

Source: NexTag

Solar Water Heating


Solar Thermal
Domestic Hot Water (DHW) Hot showers, etc. 120 - 140 degrees all year

Photo courtesy SunEarth

Solar Electricity
Produces electricity year-round

Courtesy of DOE/NREL

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Solar Electricity Photovoltaic Effect


photo = light; voltaic = produces voltage Photovoltaic (PV) systems convert light directly into electricity (using semiconductors)

How a PV Cell Works


Sunlight

Metallic Contact Finger (electron pickup) Antireflective coating Electron flow

N-Layer (Phosphorus) P-N Junction

P-Layer (Boron)

Metallic back contact

Solar Cells & the PV Effect


Usually produced with semiconductor grade silicon Dopants create positive and negative regions P/N junction results in .5 volts per cell Sunlight knocks available electrons loose for potential electrical current Wire grid provides path for current

PV Terminology
Cell Module Array

Courtesy of DOE/NREL

PV System Sizing

200 HP engine: means that 200 horsepower is the MAXIMUM it will produce.

4 kW PV system: means that 4,000 watts (4 kW) is the MAXIMUM it will produce in full sunlight.

Crystalline Silicon (Mono)

Source: DOE National Renewable Energy Laboratory

Crystalline Silicon (Poly)

Source: Darren Bouton

Crystalline Silicon PV Products

Firm, like crystals Longest track record, over 50 years Most common, over 85% of the market Highest efficiencies: avg. 15%, up to 22% Requires about 100 sf. per kilowatt sf.
Source: DOE National Renewable Energy Laboratory

31

Thin-Film PV Products

Source: DOE National Renewable Energy Laboratory

Thin-Film PV Products
Source: DOE National Renewable Energy Laboratory

Can be applied on many different materials Longevity still to be proven Production growing at high rate Lower efficiencies: avg. 7%, up to 15% Has potential for big cost reduction Pacific Energy Center Requires about 200 sf. per kilowatt sf. San Francisco

33

Wattage Comparison
Monocrystalline (Single) Polycrystalline (Multi) Amorphous (Thin-Film)

75 Watts

80 Watts

43 Watts

PV General Rules
Crystalline PV Products Efficiencies (rated) range from 12-22% Space required: 90-150 s.f. per kW Thin-Film PV Products Efficiencies (rated) range from 5-10% Space required: 170-300 s.f. per kW

Crystalline vs. Thin-Film


1.2 kW Crystalline Silicon
Thin-film needs about twice as much space for the same-size system, but the total cost is about the same.

1.2 kW Thin-Film

Source: DOE National Renewable Energy Laboratory

Crystalline vs. Thin-Film: Heat response


Heat increases electrical resistance, which lowers power output. Output begins dropping at 20C (68F). Percentage of drop is called Temperature Coefficient of Power. It is measured in % per degree Centigrade, i.e. -0.35%/C Thin film degrades less than crystalline.

Crystalline vs. Thin-Film: Heat response


Sample data from spec sheets

Crystalline -0.478%

Thin film -0.19%

Crystalline vs. Thin-Film: Heat response

100 95 % of Power 90 85 80 75 70 65 60 20
(68)

25

30
(86)

35

40

45
(113)

50

55

Degrees Centigrade
(Fahrenheit)

60 (140)

65

70

Thin Film

Crystalline

PV Panel Technology Summary


Technology Crystalline Silicon Description Module Cell Efficiency Efficiency (Commercial) (Laboratory) Sample Companies Employing Technologies
The orignal approach; grow silicon crystal structures in a variety of ways. Represents almost 90% of total market. Appearance dark blue to black but other colors possible with changes to antireflective coatings. Grown in Cylinders and wire- or laser-sliced into circular wafers as thin as 200 microns. Cells are circular and modules are inherently flat black or charcoal. Cast in blocks or drawn through a die to create a "ribbon" and wiresliced or cut into rectangular wafers. Cells are typically vibrant blue. 14 - 15% 25% BP Solar GE/AstroPower Sanyo Sharp SunWorld BP Solar Evergreen Solar Kyocera Solar Schott Solar Sharp SunWorld

Single Crystal

Multi-Crystalline

12 - 14%

19%

Thin-Film Materials

Near single-atom vapor or electro-deposition on low-cost materials (glass, stainless steel, or plastic). Modules can be flexible. Appearance dark charcoal to near black; can also be semitransparent. Cell and module production part of same process. Widely used in consumer products and on flexible substrates. Alternative semiconductor material under commercialization. Alternative semiconductor material under commercialization. 5 - 7% 13% BP Solar Kaneka Solar TerraSolar United Solar Ovonic Global Solar Shell Solar BP Solar First Solar

Amorphous Silicon (a-Si)

Copper Indium Diselenide (CIS) Cadmium Telluride (CdTe)

8 - 10%

19%

7 - 9%

17%

Inverters
Inverter
DC AC

Changes Direct Current (DC) to Alternating Current (AC)

Pacific Energy Center San Francisco

41

Inverters
Range in size from 1 Kw to 225 Kw Can easily be connected together, even different models Best to locate in cooler area

Pacific Energy Center San Francisco

Source: Darren Bouton

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Reliability

Source: NASA

Pacific Energy Center San Francisco

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Reliability
Mature technologyover 50 years old Essential to the space program Millions in use Products tested and approved by CEC Long warranties backed by large, stable companies -- 20 to 25 years on panels -- 10 years on inverters -- 10 year labor warranty
Pacific Energy Center San Francisco 44

It works during the day, but what about at night?

Previously, there was only one solution: Store the excess in batteries during the day, then draw off the batteries at night, or when its cloudy. it
Courtesy of DOE/NREL

But now?
45

Net Metering
The utility grid is a twotwoway street! Electricity can be sent back to the grid by the back customer.
Source: Andy Black

Eliminates the need for batteries. Reduces cost and maintenance.

X
Source: DOE NREL

Ensures a constant supply of electricity.

PV System Types
Grid Interactive (On-Grid)
Grid tie only (no batteries) <= Todays focus Today Grid tie with battery backup
Both under net-metering arrangement

Stand-Alone (Off-Grid)
Battery backup

Typical System Components


Array Inverter

Metering

Loads

Balance of System (BOS)

Source: Darren Bouton

Typical System Components

1. Solar array 2. Inverter 3. House electrical panel

Source: PG&E

49

Net Metering

Sell Power to the Utility by Day

Buy Power at Night and Winter


Exchange at Retail Annual Cycle

Understanding PV Financial Analysis


2006 Andy Black. All rights reserved.

Net Metering No Blackout Protection


Unsafe to send live power into grid while workers repairing downed lines

No voltage reservoir reservoir means house current could fluctuate and damage appliances

Understanding PV Financial Analysis


2006 Andy Black. All rights reserved.

Reduce Your Energy Bills!


Spin Your Meter Slower
Use the electricity you generate first to reduce electricity you would normally buy from the utility or electric service provider

Spin Your Meter Backwards


Excess electricity generated goes through your meter and into the grid Spins your meter backwards!
Source: Darren Bouton

Get credit for stored electricity on the grid

Net Metering
Average monthly usage kWh/mo PV system production

750

Roll over

500

250

May SUMMER

October WINTER

April

53

Net Metering
Average monthly usage kWh/mo PV system production

750

The surplus covers the shortfall, and your yearly bill is minimal.

500

250

May SUMMER

October WINTER

April

54

Net Metering
Average monthly usage kWh/mo PV system production

750

PV system produces less than your yearly usage.

500 You pay this amount

250

May SUMMER

October WINTER

April

55

Net Metering
Average monthly usage kWh/mo PV system production

750

PV system produces more than your yearly usage.


You lose this amount

500

250

May SUMMER

October WINTER

April

56

Time of Use Rates


Residential "E6" Time-of-Use Pricing Periods
Midnight - 6am 6am - 10am 10am - 1pm 1pm - 7pm Sunday Monday TuesdayWednesday Thursday Friday Saturday Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Part-Peak Part-Peak Part-Peak Part-Peak Part-Peak Off-Peak Off-Peak Peak Peak Peak Peak Peak Off-Peak

7pm - 9pm Part-Peak Part-Peak Part-Peak Part-Peak Part-Peak Part-Peak Part-Peak 9pm - Midnight Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak

Peak rates in Summer Afternoons 29/kWh + tier surcharges Part-Peak rates: 14/kWh + tiers Off-Peak rates (Nights & Weekends) 8.5-10/kWh + tiers

57

Time of Use Rates


35 30 25
Cents per Kwh

20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours of the Day

E-6 summer rates (May October)


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Time of Use Rates


3500 3000
Kwh Produced

2500 2000 1500 1000 500 0 1 3 5 7 9 11 13 15 17 19 21 23


Hours of the Day

Typical summer production


59

Time of Use Rates


35 30 25
Cents per Kwh

20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours of the Day

Summer pattern (May October)


60

Time of Use Rates


35 30 25
Cents per Kwh

Sell Buy

20 15 10 5 0 1

Buy

3 4

7 8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours of the Day

Buying low and selling high adds value.


61

Change in Utility Billing


Two bills, gas & electric Yearly billing cycle for electricity Fixed minimum electric charge reflected on gas (blue) bill

62

Change in Utility Billing

Minimum electric hookup charge

63

Change in Utility Billing


Minimum electric charge

Current monthly charge

Cumulative charge
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Change in Utility Billing


PV electric bill: meter readings

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Change in Utility Billing


PV electric bill: usage history

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Change in Utility Billing


Yearly trueup example
Yearly usage total $170.20 Already paid the fixed amount of $6.71 per month for 12 months, total of $80.52 Amount owed is 170.20 80.52 = $89.68

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Review of Learning Objectives TECHNOLOGY Become familiar with the basic types of PV cell/module technologies and how AC power is made Understand the concept of net metering in the context of electricity flow and billing

68

Agenda
Technology
Products System Design

Feasibility
Financing Location/Siting

Process
Installation Business Overview

69

Why Solar? Why Now? Key Drivers


1. Environmental Benefits 2. Supply and Demand 3. Federal Tax Incentives 4. California Solar Initiative (CSI) 5. Power Purchase Agreements (PPA)

1st Driver: PV & Climate Protection


Annual Emissions Avoided in CA
By using a 4 kW PV system, you can reduce carbon emissions equal to:
The emissions from driving more than 12,000 miles in an average passenger car The CO2 absorbed by ~ 1 acre of trees Note: Each solar kWh avoids >1 lb CO2 (Now worth $22/ton in Europe, or 1.1 cents/kWh)
Source: Andy Black

Environmental Footprint
Best overall estimates from 1 to 2.5 years Depends on site and power production--in production--in California is about 1.1 years. Shrinking as costs drop and production gets greener greener Pays back 10 to 30 times or more its environmental cost
Most PV manufacturing plants will have their own PV system on the roof.

Courtesy of DOE/NREL

Source: January 2008 Environmental Science & Technology http://sustenergy.blogactiv.eu/2008/05/29/emissions-from-photovoltaic-manufacturing/

2nd Driver: Supply & Demand


Whats Pushing the Future Demand of Natural Gas? Drivers for Demand in Electricity Production
NAAQS & New Source Pollution Standards Low Exposure to New Regulations Low Capital Construction, Short Lead Times, High Efficiency

Consumption of Gas by Sector

Fastest Growing Sector

Trillion Cubic Feet

Figure courtesy US Energy Information Administration

Billion kWh

Figure courtesy US Energy Information Administration

3rd Driver: Federal Tax Incentives


Federal Tax Credit
30% of net cost (PV and Solar Hot Water) $2,000 cap for residential No cap for commercial January 1, 2006 thru December 31, 2008

Tax Incentives for Businesses


Accelerated Depreciation (first 5 years)
But the law is set to expire at the end of the year if it is not extended. This has major implications.

4th Driver: California Solar Initiative (CSI)

Helps people buy solar electric systems.


Official Goal: To transform the solar market in California through declining subsidies, so that after 10 years it no longer needs subsidies.

5th Driver: Power Purchase Agreements (PPA)


Enables people to go solar without having to buy the PV system.
3rd party purchases, owns, and operates the system. Their investors take tax incentives They bill clients just as a utility does Ideal for schools, govt buildings, nonprofits (churches, etc.)

Owners Benefits of Photovoltaics


Reduce your energy bills! Reduce future uncertainty of energy $$ Modular - size to meet your needs Relatively low maintenance Adaptable and flexible in application Up to 25 year warranty on power output

Size to Meet Your Needs


1.2 kW Crystalline Silicon

Source: DOE National Renewable Energy Laboratory

Size to Meet Your Needs

Source: DOE National Renewable Energy Laboratory

Relatively Low Maintenance

Source: DOE National Renewable Energy Laboratory

Soiling Factors
Three basic categories for rainy / dry season areas
Washed as often as necessary Washed once in July Never washed ~ 1.0 ~ 0.96 ~ 0.93

Factors affecting number


Rainy / dry seasons Dirt roads Near agricultural activity Close to road surface of busy street In airport flight path

Adaptable Applications
Rooftop

Source: DOE National Renewable Energy Laboratory

Adaptable Applications
Ground Mounted

Source: Pete Shoemaker Source: DOE National Renewable Energy Laboratory

Courtesy: SPG Energy

Adaptable Applications
Covered Parking

Source: DOE National Renewable Energy Laboratory

Costs and Incentives

State Incentives
California Solar Initiative (CSI) Goal: Investment: Term: 3,000 MW of solar installed 1 Million Solar Roofs Roofs $3 billion 2007-2016 2007-

Outcome: Ensure CA leads nation in solar and meet 5% of states peak electricity demand with solar state Implementation: Via IOUs and Munis, except residential new Munis, construction, to be administered by the CEC

www.gosolarcalifornia.ca.gov

Grid-Connected PV Capacity Installed in California


Cumulative
200,000 180,000 160,000 140,000 120,000

Solar PV: 300+ MW CA peak: >50,000 MW (solar 0.3%) CSI goal: 3,000 MW

kW

100,000 80,000 60,000 40,000 20,000 0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year
Source: California Energy Commission (CEC)

California Solar Initiative (CSI)


SB 1

CPUC (California Public Utilities Commission)


Existing Residential Existing Commercial Commercial New Construction

CEC (California Energy Commission)


Residential New Construction

CSI (California Solar Initiative)

NSHP (New Solar Homes Partnership)

Program Administrators

Program Administrators

PG&E

SCE

CCSE
(SDREO)

PG&E

SCE

SDG&E

The CSI makes PV


Economical:
Gives financial incentives to lower the cost

Secure
Screens and tests equipment Requires long warranties Helps screen and check installers Standardizes production estimates

Easy
Helps installers handle everything

CSI Financial Incentivestwo types EPBB


(Expected Performance-Based Buydown) One-time, up-front payment (rebate) Based on expected production Only for smaller systems (< 100 kW)

PBI (Performance-based Incentive)


Ongoing monthly payment for 5 years Based on actual production Possible for all systems, but required for large ones (> 100 kW)

CSI Financial Incentivesnumbers


EPBB PBI

Overall outline: Incentives step down according to amount of PV installed (MW)

CSI Financial Incentivesnumbers


Current status: For each utility, shows step # and volume amounts.

Trigger Tracker: http://www.sgip-ca.com/ Tracker http://www.sgipData as of 5/15/08. It is constantly changing.

CSI Rebate Adjustments


Base system size in AC kilowatts (CEC) may be adjusted downwards depending on design and geography.
Determined by EPBB calculator: www.csi-epbb.com www.csiaccording to the following inputs: 1. Zip code 2. Orientation (azimuth) 3. Tilt (from horizontal) 4. Shading (detailed shading table)
Design rewards summer energy, not annual No design penalty for any orientation from South to West Geography factor capped at 1.0 relative to Orange, CA

How Much Will PV Really Cost?


PV is a big ticket first cost item but it can be financed Cost is somewhat proportional to capacity (size) modest economy of scale for largest systems System prices vary depending on technology used, equipment type, local labor rates, site conditions, and other factors How much will not buying PV cost? From a risk standpoint, uncertainty over future electricity costs are avoided with PV.

PG&E Baseline Territory Map

Baseline=guaranteed minimum amount of low cost electricity for everyone--all income levels.
Baseline allocation determined by geographic needs.

Pacific Energy Center San Francisco

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PG&E Baseline Territory Allocations

Pacific Energy Center San Francisco

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Current Situation
PG&E monthly electric bill for a large home user:

Pacific Energy Center San Francisco

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Current Situation
PG&E monthly electric bill for a large home user:

5 rate tiers
= $ 41.96 = $ 14.31 = $ 57.37 = $ 113.63 = $ 218.48 1,698.00 $ 445.75
1 2 3 4 5

Used 1,698 Kwh costing $ 445.75


Pacific Energy Center San Francisco

98

E-1 / PG&E Standard Rate Schedule (Residential)


40.0 35.0 30.0
Cost (cents / kWh))

37.1 32.2

25.0 20.0 15.0 10.0 5.0 0.0 Less Than 100% 101% 130% 13

23

11.4

131% 200%

201% 300%

over 300%

Rate Tier (% of baseline)


Pacific Energy Center San Francisco

99

Current Situation
The less you use, the more you eliminate the expensive upper tiers:

5 rate tiers
= $ 41.96 = $ 14.31 = $ 57.37 = $ 113.63 = $ 218.48 1,698.00 $ 445.75
1 2 3 4 5

Pacific Energy Center San Francisco

100

Current Situation
The less you use, the more you eliminate the expensive upper tiers:

3 rate tiers
= $ 41.96 1 = $ 14.31 2 = $ 57.37 3 = $ 113.63 = $ 218.48 726.00 $ 113.64

Used 726 Kwh

costing

$113.64

From 1698 Kwh to 726 Kwh--from $446 to $114.


Pacific Energy Center San Francisco

Lowering the usage 57% lowers the bill 74%.


101

E-1 / PG&E Standard Rate Schedule (Residential)


40.0 35.0 30.0
Cost (cents / kWh))

37.1 32.2

25.0 20.0 15.0 10.0 5.0 0.0 Less Than 100% 101% 130% 13

23

11.4

131% 200%

201% 300%

over 300%

Rate Tier (% of baseline)

102

Current Situation
Case study Electric bill: $100/month = $1200/year After 10 years you will have paid $12,000 if rates do not rise.

Is this a reasonable assumption?

Pacific Energy Center San Francisco

103

Current Situation
Case study Electric bill: $100/month = $1200/year With inflation, after 10 years you likely will have paid $14,000 to $17,000 With nothing to show for it except higher electric bills ($150+/mo). No equity Nothing paid off off So the real question is

Can solar be less expensive than this?


Pacific Energy Center San Francisco 104

PV Statistics & Performance for the Average Family of Four


(monthly electrical bill $100-$200)

4.0 KwAC System


COST (before rebate = $9,000 / kW) REBATE (est. $1,700 / kW) TAX CREDIT NET COST kWh Production Space requirements Avg. cost of power now ($150/mo) 25-yr. cost of power (est.) 40-yr. cost of power (est.)
Pacific Energy Center San Francisco

$36,000 $6,800 $8,760 $20,440

~ 6,500 kWh / year ~ 350 - 500 s.f. $.18/Kwh $.17/Kwh $.12/Kwh


105

San Francisco Additional Rebate


SF rebate program in addition to the CSI For Homes; $3,000 Basic rebate, for any system size $4,000 If installing company is based in SF $5,000 If home is in Economic Justice area, such as Bayview or Hunters Point $6,000 If company employs SF Workforce Development Program installer For Businesses: $1,500 per Kw up to $10,000
Pacific Energy Center San Francisco

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PV Statistics & Performance for the SF Average Family of Four


(monthly electrical bill $75-$150)

3.0 KwAC System


COST (before rebate = $9,000 / kW) CSI REBATE ($1,700 / kW) SF REBATE TAX CREDIT NET COST kWh Production Space requirements Avg. cost of power now ($100/mo) 25-yr. cost of power (est.) 40-yr. cost of power (est.)
Pacific Energy Center San Francisco

$27,000 - $5,100 - $6,000 - $4,700 $11,200

~ 5000 kWh / year ~ 300 s.f. $.15/Kwh $.12/Kwh $.09/Kwh


107

PV System Costs by Component


Retail costs of system under 30 kW
PV Panels Inverter Balance of System Installation / Labor ~ $5 per Watt ~ $1 per Watt ~ $1 per Watt ~ $2 per Watt

Total cost ~ $9 per watt installed

THE BIG QUESTION:

Whats the payback?

Return on Investment
Different ways to measure Payback: When savings = investment cost IRR (internal rate of return): Percentage of annual return which looks at full life cycle NPV (net present value): Cash flow projection which takes in financing costs Monthly Cash Flow: Change in your monthly payment

110

THE BIG ANSWER:


It Depends!
Financing and incentives? Solar resource? What would you pay for another source of electricity? Net metering or time-of-use net metering? time- of Building applied PV or building integrated PV? Roof mount, ground mount, shade structure? Roof type comp shingle, clay tiles, wood shake? What else do you value (side benefits), and how ?

E-1 / PG&E Standard Rate Schedule (Residential)


40.0 35.0 30.0
Cost (cents / kWh))

37.1 32.2

25.0 20.0 15.0 10.0 5.0 0.0 Less Than 100% 101% 130% 13

23

11.4

Solar reverses the rate tier effect


Higher ROI

Lower ROI

131% 200%

201% 300%

over 300%

Rate Tier (% of baseline)

Return on Investment
Ranges of values Payback: When savings = investment cost - from 8 to 18 years IRR (internal rate of return): Percentage of annual return which looks at full life cycle - From 5% to 15% NPV (net present value): Cash flow projection which takes in financing costs - Should always be greater than zero

113

Return on Investment
Monthly Cash Flow: Financed by a home-secured loan Loan interest is tax-deductible Assuming historical rate escalation continues Monthly cash flow can be immediately positive for many people with electric bills over $125 per month. They can start making money from day one and continue for over 30 years! Lower bill amounts will typically start out slightly negative and improve over time.

114

Increase in Home Value


Appraisal Value
Will likely go up Less utility cost means more money available for mortgage payment Data so far is small, but supportive Much more to come as solar houses turn over

Solar Rights Act


California law that supports solar Keeps HOAs and other CC&Rs from prohibiting solar systems Forbids increased property taxes on owners system Restriction ends when home is sold, and assessment can go up to reflect system
115

Strategies for Cost Reduction

Strategies for Cost Reduction


Installation efficiencies/roofing Multiple benefits from one strategy Design integration Package with energy efficiency The PV Bulk-Buy?

Installation Efficiencies

BIPV
Building Integrated Photovoltaics
Courtesy of DOE/NREL

PV Roof Tiles

Installation Efficiencies

Tiles interlock quickly with NO roof penetrations


Source: DOE National Renewable Energy Laboratory

Installation Efficiencies

PV Integrated Roofing Membrane


Courtesy: Solar Integrated

Installation Efficiencies

PV Skylights
Source: DOE National Renewable Energy Laboratory

Multiple Benefits

Mitigate unwanted solar heat gain Control glare Displace existing materials cost Produce electricity

Source: Darren Bouton

Design Integration

Polished Stone $215 - $255 ft2 Photovoltaics $45 - $135 ft2 Stone $75+ ft2 Glass Wall Systems $50 - $75 ft2 Stainless Steel

Courtesy: Atlantis Energy

$25 - $35 ft2

Package with Energy Efficiency


Conservation gives best payback Many EE rebates available Will be required for rebate Can handle entire package for client

Source: DOE National Renewable Energy Laboratory

PV Bulk Buy
Community targets for total Kw Can lead to 10% or more discounts Many companies offering it

Source: Pete Shoemaker

Criteria for Selecting a Solar Site

PV Siting Issues to Consider


1. What is the solar resource potential at the site? 2. Does the site have an appropriate southern exposure? Consider SW-W for EPBB, too! 3. Will the PV system be free from shade? 4. Does the site have adequate space for the proposed PV system? 5. How will the PV system affect site aesthetics?

1. What is the solar resource potential?


Peak Sun-hours Measured in kWh/m2/day

Source: DOE National Renewable Energy Laboratory (NREL) Resource Assessment Program http://rredc.nrel.gov/solar/old_data/nsrdb/redbook/atlas/serve.cgi

CA solar resource map

Source: DOE National Renewable Energy Laboratory (NREL) Resource Assessment Program http://www.nrel.gov/gis/solar.html#maps

Weather: Microclimates

Source: www.sf.solarmap.org 130

Weather Summary
California climate ideal for solar Panels produce in all light Fog has cooling effect, which raises efficiency Microclimates likely less than 15% loss from normal

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2. Does the site have an appropriate southern exposure?


Use a compass to identify north (and thus south), south), a first step in assessing solar access at a site.

Magnetic South vs. True South


Magnetic South = Compass South
A compass aligns with the earths magnetic field, which is not exactly aligned with the earths rotational axis. Magnetic Declination = the number of degrees that true south is east or west from magnetic south. True south ~ 16 east of magnetic south (SF, SJ, Stockton)

True South = Solar South


NOTE: go to National Geophysical Data Center (NGDC) at http://www.ngdc.noaa.gov/seg/geomag/jsp/Declination.jsp to determine your sites magnetic declination

Describing Location of the Sun


First understand where it is!
Azimuth - horizontal angle of sun east or west of due south Altitude - angle of sun above the horizon Azimuth and altitude describe the location of the sun in the sky at a given time.

Illustration from Environmental Control Systems by Fuller Moore, McGraw-Hill, Inc., 1993, p. 76.

PV Orientation
For tilted roof:
North

Not good West Good OK Very good

East

South

Pacific Energy Center San Francisco

135

PV Orientation
N W E

S Overhead maps
Pacific Energy Center San Francisco

136

Horizon in winter

Horizon in summer

Source: Wikipedia

Tilt
12 ft. 4 ft.
18 deg.

Typical roof in this area is 4:12. For every 12 feet horizontal, it drops 4 feet. This equals 18 degrees up from horizontal.

Normal roof pitch is a very good mounting angle.


138

Tilt Angle vs. Building Orientation


Orientation / Degrees from South

0 23 45 68 90

(South) (SSE, SSW) (SE, SW) (ESE, WSW) (E, W)

0 Flat 0.89 0.89 0.89 0.89 0.89

18 30 4:12 7:12 0.97 1.00 0.97 0.99 0.95 0.96 0.92 0.91 0.88 0.84

45 12:12 0.97 0.96 0.93 0.87 0.78

60 21:12 0.89 0.88 0.85 0.79 0.70

90 Vertical 0.58 0.59 0.60 0.57 0.52

Source: A Guide to Photovoltaic (PV) System Design and Installation -- CEC, June 2001

Bottom line: Tilt is a factor, but not a major one.


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3. Will the PV system be free from shade?

Source: DOE National Renewable Energy Laboratory

Monocrystalline Shading Effect


Partial Module Shading Effect
3

Unshaded Module
2.5

The Extreme Effects of Shading


1 cell 25% shaded 1 cell 50% shaded 1 cell 75% shaded 1 cell 100% shaded

% of One Cell Shaded


0% 25 % 50 % 75 % l00 % with 3 cells shaded

% Loss of Module Power


0% 25 % 50 % 66 % 75 % 93 %

Amps

1.5

0.5

0 0 5 10 15 20 25

Volts

Courtesy: Solar Energy International

Solar Access
PV Requirements
Solar Window = 9 am - 3 pm (ideal) 8 am - 4 pm (possible) Need minimum of 4 hours during solar window with no shade (prefer 5 hours) Summer more important than winter

Shading
Sunset Sunrise

Solar Window
Shade-free from 9 to 3

Good chance for PV


Pacific Energy Center San Francisco 143

Shading

Bad chance for PV


Pacific Energy Center San Francisco 144

Planning for Shade

Source: PEC Staff

Planning for Shade


S
2 to 1 ratio recommended
1 ft. 2 ft.

No good

Source: PEC Staff

Solar Pathfinder
Used to gain a quick and approximate understanding of solar access and objects on the horizon that shade a given location. Latitude specific sun path diagram is placed in the pathfinder. The transparent, convex plastic dome reflects objects on the horizon, enabling the user to see the relationship between these objects and the path of the sun. Obstructions can be traced onto sunpath diagram.

Solmetric SunEyeTM

Handheld measurement device that accurately measures solar access and shading (about $1400)

Courtesy: Solmetric, Corp.

Sunpath View
Visually demonstrates seasonal sun path and shading effects of obstructions Summary tabular data

Courtesy: Solmetric, Corp.

Detailed View
Chart shows proportion of total solar energy available at this site each month

Courtesy: Solmetric, Corp.

Where to Go for Tools


Pacific Energy Center: Tool Lending Library Phone: 415-973-9945 Email: pectools@pge.com

Pacific Energy Center Web Site:


www.pge.com/pec/tll

Does the site have adequate space?

PV Requirements
Adequate Roof Area:
Crystalline Silicon
100-150 square feet per kW

Thin-Film
170-300 square feet per kW
Note: Consideration should also be given for access to the system (can add up to 20% of needed area)

How will PV affect site aesthetics?

Source: Darren Bouton

How will PV affect site aesthetics?

Source: Darren Bouton

Tracking

Courtesy of DOE/NREL

For most home systems, the extra expense and maintenance of tracking tracking motors is not worth the efficiency gain. Better to buy a few extra panels. extra For large commercial systems it may be worth it.
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Roof Issues
Dont put a new PV system on an old roof!
Minimum roof life should be 5 7 years. Good idea to do PV and roof at same time Estimate for panel removal/replacement is $1,000 per Kw of system size.

Source: LondonFlatRoofing.co.uk

Review of Learning Objectives


FEASIBILITY Learn the current average costs of PV systems, before and after accounting for relevant incentives Identify the key siting issues that need to be considered for every potential PV project

157

Agenda
Technology
Products System Design

Feasibility
Financing Location/Siting

Process
Installation Business Overview

158

Case Studies

Residential Case Study


Phone screening information:
John Doe in Gilroy, CA John Doe $200/month PG&E electric bill Usage projected to stay the same Composition shingle roof Thinks there are no shade issues Overhead photos not clear

Site Visit Data: Roof Layout


N W S E
25 4:12 pitch

Back of house

65

Front of house

N W S E

Source: Pete Shoemaker

Site Visit First Pass


No shading issues Roof in good shape About 200 sf. south-facing sf. south Lots of room west-facing west Good site for inverter(s) inverter(s) Electrical service and panel OK Substantial electric bill

What Size System?


Usage History Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07
Jun-07 Total Avg.

946 1127 1349 970 1093 1077 1349 867 886 768 815
836 12083 1007

Usage pattern normal Monthly average is good starting point Propose maximum size system and then work to customers budget customer Check for competitive bids, ask to see them

Acme Solar final bid

24 190-watt modules Two 2000-watt inverters

Commercial Case Study

Car dealership in Gilroy

Commercial Case Study


Check usable space Estimate maximum size of system Determine average usage from bill Give ballpark financial numbers

Total space is about 16,000 square feet, but how much is usable? Need site visit to determine.

Visual estimate about 60+% usable space. about 10,000 sf. total = 100 KW system maximum.

Electric bill yearly average: 31,000 Kwh/month

Average blended rate per Kwh = $ .16594 Average monthly bill = 31,000 x $ .16594 = $5,144 or about $5,000 per month.

From website: www.csi-epbb.com

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PV Installation Process
STEP 1: Complete an Energy Audit STEP 2: Contact and Choose an Installer INSTALLER HANDLES THE REST STEP 3: Complete and Submit Applications for CSI STEP 4: Install System STEP 5: Schedule Final Building Inspection STEP 6: Schedule Final Utility Inspection STEP 7: Claim Your Incentives

Reduce Electricity Consumption


Look for negawatts Efficiency First
Lights
use the right light for the job, CFLs instead of incandescent lamps

Heating, Ventilating & Air Conditioning (HVAC)


use the most efficient available

Appliances & office equipment


Energy Star

Building envelope
insulation, glazing, cool roofs

Find Installers
FindSolar.com
www.findsolar.com/index.php

California Energy Commission

www.consumerenergycenter.org/erprebate/datab ase/index.html www.norcalsolar.org/biz_members_list/busmemb ers.php

NorCal Solar Business Members CalSEIA Members


http://calseia.org/, Find an Expert link

Personal references

http://www.findsolar.com/index.php

Obtain Bids
Phone interview Site visit System design Bid presentation Bid comparison

Comparing Bids: DC vs. AC watts


DC watts are name only DC rating is determined under Standard Test Conditions (STC), not real-world DC must be changed to AC before use DC system size: 20 Sharp 200-watt modules = 20 x 200 = 4000 watts = 4.0 kW DC

Comparing Bids: DC vs. AC watts


Lookup CEC ratings for panels.

http://www.gosolarcalifornia.org/equipment/

Comparing Bids: DC vs. AC watts


Lookup CEC ratings for inverters.

http://www.gosolarcalifornia.org/equipment/

Comparing Bids: DC vs. AC watts


AC watts are real power AC rating is determined under Practical Test Conditions (PTC), real-world AC takes efficiency losses into account AC system size: 20 Sharp 200-watt modules PTC rating 176 watts, inverter efficiency 96% = 20 x 176 = 3520 watts x .96 = 3379 watts = 3.38 kW AC

Comparing Bids: DC vs. AC watts


System size: 20 Sharp 200-watt modules 1 SMA SB 4000US inverter 4.0 kW DC 3.38 kW AC (CEC rating)

DC is about 18% more, but misleading. AC is the important number, and if installer only gives DC numbers be suspicious and ask for AC size.

Comparing Bids: apples to apples


Installers may use different modules and inverters, so AC sizes may not be exact. To compare properly you need to determine the Price per AC watt. = Top Line Price (before rebate and tax credit) divided by AC watts (AC kW x 1000) Price: $32,500 for 3.38 kW AC $32,500/3380 = $9.61 per AC watt

Monitoring
Extra hardware sends inverter data to internet Inverter company or 3rd party hosts website Customer can view system from home or remotely Current and historical data can be displayed

Can cost extra but some companies are offering it as standard package.

PV Business Overview

Manufacturers Distributors Integrators (retailers) Subcontractors

Integrators (retailers)
Management Sales Marketing Accounting Ordering Installation Service

Sales Marketing
Marketing: advertising, design & layout, partnerships Inside sales: phone screeners, field support Field reps: residential & commercial

Installation Service
Design & permitting: drafting, permit applications, coordination Crew supervision: crew chief, trainer Crews: Installers, apprentices

Accounting Ordering
Financial accounting, payroll Paperwork management, CSI applications Product supply, costs

Renewable Energy Credits


Called RECs or green tags The green attribute of the power Valuable in carbon offset accounting Cap and trade legislation will create market Potentially useful in helping fund PV Both voluntary market and mandatory market

Carbon Offsets
Making activity carbon neutral Funding projects that remove as much carbon as you generate Social & business image value PG&Es Climate Smart first such program in the country for utility customers

Review of Learning Objectives


PROCESS Understand the sales and installation cycle and how to interpret PV bids Get an overview of the PV business and job opportunities

Dont forget the bottom line


Paper

Wealth

PV Resources
Go Solar California www.gosolarcalifornia.ca.gov PG&E Solar Program www.pge.com/solar Expected Performance-Based Buydown Calculator Performance http://www.csi-epbb.com California Solar Center (Solar e-Clips) e www.californiasolarcenter.org/index.html California Solar Energy Industries Association www.calseia.org/index.html Northern California Solar Energy Association (NCSEA) www.norcalsolar.org US Department of Energy, Solar Energy Technologies Program www.eere.energy.gov/solar/photovoltaics.html Solarbuzz www.solarbuzz.com/index.asp

Additional PV Training Resources


Solar Energy International
www.solarenergy.org/

The Solar Living Institute


www.solarliving.org/

Diablo Valley College


www.dvc.edu/

Contact Information

Pete Shoemaker
Pacific Energy Center 851 Howard St. San Francisco, CA 94103 (415) 973-8850 pjsy@pge.com