Feb 08 German Market
PV Installations in Germany Same Panels Much Lower Costs than U.S. Barry Cinnamon Chief Executive Officer and President Akeena Solar, Inc.
Total Installation Costs •
Customers purchase complete, installed systems o
•
Not just cells or panels
Total installation costs are key metric o
$6/DC Watt Germany
o
$8/DC Watt United States
Why are German installations cheaper? Solar panels o Same, in fact cost a bit more • Inverters o Same, in fact could be a bit less • Feed in tariff o Is this in some way “better?” • Hourly labor rates o Similar Road trip to multiple German residential and commercial installation in April 2007 •
Key Differences Administrative • Technical • Sales and Marketing • Financial •
Adminstrative o
o o o o o o
Negligible incentive paperwork (job folders are 2” thick in the U.S.) No utility interconnection paperwork No engineering drawings No local building permit No local inspection No utility inspection No incentive administration inspection
Technical o o o
o
o
o o
No AC disconnect No DC disconnect Source circuits from modules are run with USE-2 cable with quick connects right into sockets on the inverters – no wire transitions Source circuit cabling runs in snap-on plastic raceway – no conduit No grounding is required on each module and rack component Simplified ground mount techniques Streamlined roof attachment brackets
Sales and Marketing o o
o
Solar installers have storefronts in many towns Jobs are done in a week, from start to finish, including paperwork Installation is key expertise -- not paperwork
Financial o o o
No rebate “check is in the mail” Financial ROI more favorable -- easier sales Faster turnaround -- less working capital needed
Conclusion Feed-in tariffs ARE NOT the reason the German market has grown more rapidly • U.S. costs are structurally $1-$2/watt higher •
o
Incentive mechanism must compensate for these costs
Regardless of how much more efficient our industry gets, these additional costs will not disappear easily. • Many of these additional costs are fixed •
o
•
Less significant on larger systems
Incentives must take this substantial “bureaucratic” friction into account
PV Installations in Germany Same Panels Much Lower Costs than U.S. Barry Cinnamon Chief Executive Officer and President Akeena Solar, Inc.
Total Installation Costs •
Customers purchase complete, installed systems o
•
Not just cells or panels
Total installation costs are key metric o
$6/DC Watt Germany
o
$8/DC Watt United States
Why are German installations cheaper? Solar panels o Same, in fact cost a bit more • Inverters o Same, in fact could be a bit less • Feed in tariff o Is this in some way “better?” • Hourly labor rates o Similar Road trip to multiple German residential and commercial installation in April 2007 •
Key Differences Administrative • Technical • Sales and Marketing • Financial •
Adminstrative o
o o o o o o
Negligible incentive paperwork (job folders are 2” thick in the U.S.) No utility interconnection paperwork No engineering drawings No local building permit No local inspection No utility inspection No incentive administration inspection
Technical o o o
o
o
o o
No AC disconnect No DC disconnect Source circuits from modules are run with USE-2 cable with quick connects right into sockets on the inverters – no wire transitions Source circuit cabling runs in snap-on plastic raceway – no conduit No grounding is required on each module and rack component Simplified ground mount techniques Streamlined roof attachment brackets
Sales and Marketing o o
o
Solar installers have storefronts in many towns Jobs are done in a week, from start to finish, including paperwork Installation is key expertise -- not paperwork
Financial o o o
No rebate “check is in the mail” Financial ROI more favorable -- easier sales Faster turnaround -- less working capital needed
Conclusion Feed-in tariffs ARE NOT the reason the German market has grown more rapidly • U.S. costs are structurally $1-$2/watt higher •
o
Incentive mechanism must compensate for these costs
Regardless of how much more efficient our industry gets, these additional costs will not disappear easily. • Many of these additional costs are fixed •
o
•
Less significant on larger systems
Incentives must take this substantial “bureaucratic” friction into account
PV Installations in Germany Same Panels Much Lower Costs than U.S. Barry Cinnamon Chief Executive Officer and President Akeena Solar, Inc.
