Solar Markets
HEARTLAND ENERGY CONFERENCE 2010 Business Opportunities In Alternative Energy
Solar Markets Presented by: Pamela Speraw Sun City Solar Energy, LLC
September 15, 2010 Rogers State University, Claremore, OK
Solar specialists since1983 - SunCityEnergy.com Part of the American Solar Energy Society’s National Solar Tour © 2005-2010 Sun City Solar Energy, LLC, All Rights Reserved
Certified by American Institute of Architects
Information Sources Renewable Global Status Report U.S Census Bureau Solar Rating & Certification Corporation World Future Council Oklahoma Department of Commerce International Energy Association National Renewable Energy Lab SolarBuzz Earth Policy Institute US Energy Information Association Department of Energy FedConnect DSIRE Renewable Energy Associations
What Can The Sun Do? Reduce operating costs. Decrease our dependence on foreign oil. Own your utility rather than rent. Save money. Provide educational opportunities. Create a cleaner and healthier future by producing energy from a renewable, pollution free resource. Create a sustainable quality environment.
LET YOUR ENERGY COMPANY BE THE SUN! Our future belongs to the efficient.
Solar is Reliable - works for decades with little or no maintenance Proven - operating across the world Clean - produces power without creating air pollution Cost-effective – has a payback typically 3-10 years
Home-grown - reduces our reliance on foreign energy Popular - Polls show 9 of 10 Americans want the U.S. to use more solar power
Solar Now at Forefront of International Political Agenda Rising world energy demand in India and China. Environmental concerns, strong consensus to reduce carbon emissions. Geopolitical concerns, energy supply security. Rising crude oil prices. National desires to improve living standards and achieve clean technology leadership.
World Solar Investment Government support, financial incentives, and greatly increased investment from both public sector and banks. Particularly banks based in Europe, Asia, and South America. Over $5 billion in 2009 and $2 billion in 2008
World City and local Governments Enacting Solar Promotion Policies
Established future targets Urban planning incorporating solar into city development Building codes that mandate/promote solar Tax credits and exemptions Purchases of solar power for public buildings Innovative electric utility policies Subsidies, grants, or loans Information and promotion activities
2009 Growth Rate Solar PV & SHW 53 % - Grid-Connected PV 21% - Solar Hot Water/Heating For the second year in a row, the US and Europe, added more renewable power capacity than conventional power capacity (coal, gas, nuclear).
Fossil Fuel Subsidies Outpace Renewables 2009: $43-46bn World Governments spent on Biofuels and Renewable Energy $557bn spent on subsidizing Fossil Fuels Global direct subsidy for fossil fuels is around ten times the subsidy for renewables (not including enormous security and public health costs of fossil fuels, and pollution catastrophes). The US: $18.2bn spent in 2009. 40% supporting the US biofuels sector with 60% supporting renewables. The federal stimulus program played a key role; its Treasury Department grant program alone provided $3.8bn in support for clean energy projects.
Europe accounted for $19.5bn of the total 2009 spent, or just under half the global total for Feed-in-tariffs (FiT) subsidizing the purchase of clean electricity. Germany: world’s single most expensive clean energy subsidy program in 2009,Its FiT cost Germany’s ratepayers $9.6bn in 2009 and is a reflection of the extraordinary number of PV systems installed in the country in recent years. Source: July 29, 2010, The research and consulting firm Bloomberg New Energy Finance (BNEF), and International Energy Agency
Jobs from Renewable Energy Worldwide, jobs in renewable energy industries exceeded 3 million in 2009. China and Brazil account for a large share of global total employment, having strong roles in solar hot water and biofuels industries. Many of these jobs are in installation, operations, and maintenance, as well as in biofuels feedstocks. Industry Estimated jobs Selected national estimates worldwide: Solar Hot Water- Worldwide 300,000 China 250,000 Solar PV: Worldwide 300,000 Germany 70,000; Spain 26,000; United States 7,000 Solar thermal power: Worldwide 2,000 Spain 1,000; US 1,000
Energy-Intensive Manufacturing Industries A few industries account for a 60% share of total industrial energy consumption and only 22 percent of total value of shipments. Ranked by their 2008 total energy use the top five energyconsuming industries: Bulk Chemicals Refining Steel Paper Food From 2008 to 2035, 4 of these 5 industries (food products the exception), as well as the other energy-intensive industries (glass, cement, and aluminum) projected to grow more slowly than the non-energy-intensive industries.
Energy Consumption Growth Varies Widely Across Industry Sectors The three largest energy-consuming industries: Bulk Chemicals, Iron/Steel, and Refining declines in energy use due to changes in competition from countries with access to less expensive energy sources, as well as changes in product mix. Energy consumption in the refining industry increases—despite a relative flat trend in overall petroleum demand—given the industry’s needs to process heavier crude oils, comply with low-sulfur fuel standards, and produce biofuels as mandated in EISA2007. Energy use also increases in the food, paper and pulp industries, where rising shipments reverse recent declines. For the cement, aluminum, and “other nonmanufacturing”industries, delivered energy consumption declines, primarily as a result of relatively slow output growth and long-term changes in production technology.
Almost all Renewable Energy Industries Experienced Manufacturing Growth in 2009, despite the Global Economic Crisis.
Nearly 11 GW of Solar PV was produced, a 50-percent increase over 2008. First Solar (USA) became the first firm ever to produce over 1 GW in a single year. Source: Renewable Global Status Report 2010
Non-fossil energy use grows rapidly, fossil fuels projected to provide 78% of total energy use in 2035 declining from 85%
Air Pollution/Health Hazards Global Carbon Concentration Air Pollution/Health Hazards from coal, oil, gas, & carbon dioxide emissions are expected to climb 52% by 2030*
Source:*International Energy Agency **National Atmospheric and Oceanic Administration
Clean Air Solar power systems operate without producing air & water pollution and solid wastes.
25 kWh’s of Solar Electricity Daily Saves • • • • • •
33 million kilowatt-hours of electricity 131 tons of coal 348 tons of carbon dioxide 2.3 tons of sulfur dioxide 2.5 tons of industrial waste emissions, 2 tons of atmospheric pollutants every year!
The Bright SideSun is Smart Energy!
In 40 minutes the SUN releases the amount of energy that is consumed by the entire population of the planet in ONE YEAR.
Currently we harness about 1% of the Sun’s energy.
SOLAR GAIN IN OUR REGION IS GREAT
Smart Choices for Energy Independence Solar Hot Water (Thermal) Solar Pool Heaters (Thermal) Solar Electric Power (Photovoltaic)
Certified Solar Hot Water System
• Provides 75-85% of your hot water needs with free energy from the sun • Premier freeze proof system • Manufactured for over a 30 year design life • Operates automatically all year • Keeps 7,200 pounds of carbon dioxide out of the air each year • Pays for itself several times over
Solar Hot Water A growing number of countries, states, and cities mandate solar hot water in new building construction,spanning all continents. Germany’s Renewable Heating Law requires 20% minimum heating from renewables in new residential buildings.
At least 20 countries provide capital grants, rebates, or investment tax credits for solar hot water/heating investments.
Solar Collector Shipments by Type, End Use, and Market Sector Year
# of Manufactuers
End use pool
SHW
Market Sector Residential Commercial
Heating
industrial
2000
26
7,863
367
99
7,473
810
57
2001
26
10,797
274
70
10,125
1,012
17
2002
27
11,073
423
146
11,000
595
62
2003
26
10,800
511
76
10,506
864
71
2004
24
13,634
452
13
12,864
1,178
70
2005
25
15,041
640
228
14,681
1,160
31
2006
44
15,362
1,136
330
15,123
1,626
42
2007
60
12,076
1,393
189
12,799
931
46
US Census Bureau
World Annual Amounts & Existing Capacity Added Annual Amounts 2009: Solar Hot Water/Heating: #1 China, #2 Germany, #3 Turkey, #4 Brazil, #5 India China In 2009 produced 40% of the world’s solar PV supply and 77% of the world’s solar hot water collectors and provided approximately $2bn in direct subsidies. China gives low-interest loans from state-owned banks. Europe is a distant second with 12%. Virtually all installations in China are for hot water only. But there is a trend in Europe toward larger ‘combo systems that provide both water and space heating; such systems now account for half of the annual market. Solar PV Grid-Connected: #1 Germany, #2 Italy, #3 US, #4 Japan #5 Czech Republic
Existing Capacity end of 2009: Solar PV (grid-connected): Germany Spain Japan United States Italy Solar hot water/heat: China Turkey Germany Japan Greece. China continues to dominate the world market for solar hot water collectors, with some 70% of the existing global capacity. Developing countries now make up over half of all countries with policy targets (45 out of 85 countries) and also make up half of all countries with some type of renewable energy promotion policy (42 out of 83 countries).
Solar Hot Water System
Energy Use
OWN UTILITY
RENT UTILITY
SOLAR WATER HEATER: FREE energy from the Sun
STANDARD WATER HEATER: COSTLY gas or electric
Annual operating cost: Much Less
Annual operating cost: 3rd largest energy use
Life expectancy: 30+ years.
Life expectancy: 8-12 years.
Does NOT deplete fossil fuels
Depletes fossil fuels.
Does NOT pollute environment.
Pollutes.
Adds Value
No added value
Has a return on your investment. (OWNING)
No return on utility payments (RENTING)
Protection from future price increases.
At mercy of utility companies and government.
BONUS FREE hot water!
High Usage Costly for locker rooms, laundry, & cafeteria.
“Buying green power was a small part of our construction costs and will pay for itself many times over”. John Charlton, president of Charlton Development. Both applications will eliminate approximately 40 tons of carbon emissions per year from the environment.
21 solar pool panels and 12 hot water collectors
Commercial Grade Seasonal Solar Pool Heaters Set desired pool temperature. Can cool pool at night. Highly reliable and generally maintenance free. Lasts 2-3 times longer than natural gas or electric heater. Preserves and shades roof. Affordable, low cost way to heat school pool. Fast return on investment Limited Lifetime Warranty.
Solar Electric Power Converts Sunlight to Electricity Stand Alone (batteries for storage) Grid-Tie (meter runs backwards) Hybrid (Combination of Both)
PV inverter Market Growing rapidly, product shortages acute around the world, especially in Europe. The PV inverter market shipped 8.3 GW of devices in 2009, totaling $2.8 billion in revenue. IMS Research's analysis of PV industry projects market size of 14.6 GW in 2010. projected growth of almost 70% per year is unlikely to be sustainable in the long term. SMA Solar Technology retained its position as the world’s largest solar inverter supplier, with a market share of more than 37%. Due to extreme shortages and supply issues many inverter suppliers are in a position to both gain and lose major market share in 2011. Source IMS Research
Hilti/Sun City Solar Case Study
Result: Hilti purchased Unirac Mounting systems and redesigned the hardware as a result of input from Sun City Solar of problems with current mounting hardware during Sun City installs
Solar Power Questions Will the Solar System generate electricity on cloudy days? Yes, solar panels capture light energy from the sun. What happens at night with a grid-tie solar system? Draw on solar during day, switch to electric provider at night.
Can I put my Solar Electric Power System anywhere? South free of shade.
How much Solar Power do I need? Buildings don’t use electricity people do. Determined by usage.
Inverter • Modifies the current and voltage provided by the solar energy panels to maximize electric power output. • Converts DC power from the panels to AC power • Matches the converted AC power to the voltage and frequency of the utility's electrical. • Safeguards the utility network system and its personnel from possible harm during repairs.
• Prevents damage to the solar energy array and other components during unusual operating conditions.
Stand–Alone Off-Grid Solar System
Charge Controller Function Regulates Electricity Flowing from Solar Modules into Your Battery or Load
The controller keeps the battery fully charged without over-charging.
Grid-Tie with Back-up Hybrid System
The Sunny WebBox • System Access from any Web browser
• • • • • • •
Records daily, monthly and annual energy Remote plant diagnosis Remote system configuration Automatic data transfer at chosen intervals Data storage and display via Ethernet Compatible with all SMA inverters Low power consumption
Downtown Tulsa Historic Fire Station Solar Electric Awning 20)195 Watt Modules Generating 3,900 Watts Per Hour
Net Metering Steps 1. Make written application to electric provider. 2. Submit plans detailing electrical design 3. Electric company approval needed prior to performing work. 4. Sign interconnection agreement. .
Feed-In Tariffs By early 2010, at least 50 countries and 25 states/provinces had feed-in tariffs, more than half of these adopted only since 2005. Strong momentum for feed-in tariffs continues around the world as countries continue to establish or revise policies. States and provinces have been adopting feed-in tariffs in increasing numbers as well.
Feed in Tariffs
Feed In Tariffs have resulted in15,000 MW of Solar PV from 2000 to 2009 in the European Union. In comparison, there was only 1,250 MW of Solar PV in the U.S. at the end of 2009. Source: The Report ―Policymakers Guide to Feed-in Tariff Policy Design, NREL
Grading System of North American Feed-in Tariffs (FiT) Compared to FiT Best Practices Around the World. Country
Score
Grade
France
90
A
Germany
90
A
Spain
80
A-
Ontario
84
A-
Vermont
54
D
Maine
43
F
Wisconsin IOU’s
36
F
California
28
F
Oregon
16
F
Indiana HB 1190 - Proposed
82
A-
California AB 1106 - Proposed
54
D
Grading criteria: program and project size caps, contract terms, eligible technologies, and different tariff rates depending on technology, generation, and size. Source: World Future Council May 2010
Renewable Portfolio Standards (RPS) Require electricity providers to generate or acquire a percentage of generation from renewable sources. Many RPS programs have "escape clauses" if renewable generation exceeds a cost threshold. Some States have delayed compliance and others lack enforcement procedures. As a result, some States may not meet their RPS goals. EIA projects that most States should ultimately be able to meet their RPS requirements. Markets: A number of States have built Renewable Energy Certificates/Credits (RECs) into their Renewable Portfolio Standards. This allows electricity providers to sell renewable energy certificates/credits and use their proceeds for renewable projects. Some States have made REC markets mandatory, requiring electricity providers to produce or acquire renewable generation to reduce reliance on fossil fuels to generate electricity.
Renewable Portfolio Standard (RPS) Policies also called Renewable Obligations or Quotas
• Enacted by 10 national governments and 46 state/provincial governments around the world. • Most RPS policies require renewable power shares in the range of 5–20 percent, with many targets extending to 2020 and beyond. • Some type of direct capital investment subsidy, grant, or rebate is offered in at least 45 countries.
Renewable Energy Standard
A major new study conducted by Navigant Consulting, Inc. reveals that by 2025 a national Renewable Energy Standard would result in 274,000 more renewable energy jobs than a no-national RES policy. Source: Several renewable energy associations
Investment Tax Credit 30% Unlimited Through 2016 Tax credits boost the near-term expansion of solar in the residential and commercial sector.
PV capacity benefits from a 30-percent ITC through 2016 and reverts to a 10-percent credit thereafter. Some type of direct capital investment subsidy, grant, or rebate is offered in at least 45 countries.
Extended Tax Credits through 2035 The implications of extending the tax credits. Total installed PV capacity reaches 9.5 gigawatts in 2035 in the Reference case, it grows to 60.5 gigawatts in 2035 in the Extended Policies case. When the Federal tax credit expires in 2016 In the Extended Policies case—with the tax credit extended through 2035—the market share nearly doubles, to 4 percent in 2035.
The Oklahoma Department of Commerce has established a loan/lease fund for institutes of higher education to improve energy efficiency. Two categories of funding are available for schools to reduce energy consumption: Category I funding will pay for technical and energy audits, the development of Energy Management Plans, and any professional services that contribute to the planning and design of energy reduction systems and measures.
Category II funding covers the actual acquisition and installation of energy conservation measures. All projects must be shown to reduce energy consumption, have a positive return on investment, and be able to be repaid within six years. Loan funds may not be used to pay off an existing loan, but may be used to leverage additional third-party financing of energy efficiency projects. An eligible institute of higher education may only have one active loan at a time.
State:
Oklahoma
Incentive Type:
State Loan Program
Eligible Efficiency Technologies:
Yes; specific technologies not identified
RenewableTechnologies:
Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors:
Institutes of Higher Education
Amount:
Varies
Maximum Incentive:
$300,000
Terms:
1 to 6 year terms at 3% interest rate
Program Budget:
$1.1 million
Web Site:
http://www.okcommerce.gov/index.php?option=com_content&task=view&...
The Oklahoma Department of Commerce has established a loan/lease fund for public and nonprofit K-12 schools to improve energy efficiency. Two categories of funding are available for schools to reduce energy consumption: Category One funding will pay for technical and energy audits, the development of Energy Management Plans, and any professional services that contribute to the planning and design of energy reduction systems and measures. Category II funding covers the actual acquisition and installation of energy conservation measures.
All projects must be shown to reduce energy consumption, have a positive return on investment, and be able to be repaid within six years. Loan funds may not be used to pay off an existing loan, but may be used to leverage additional third-party financing of energy efficiency projects. An eligible school district may only have one active loan at a time. State: Oklahoma Incentive Type: State Loan Program Eligible Efficiency Yes; specific technologies not identified Technologies: Eligible Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Renewable/Other Biomass Technologies: Applicable Sectors:
Schools
Amount:
100% of costs
Maximum Incentive:
$200,000 per eligible school district
Terms:
3% interest rate, for up to six years
Program Budget:
$1 million
Web Site:
http://www.okcommerce.gov/index.php?option=com_content&task=view&...
Grants.gov The federal government central website for information on grants and other funding opportunities. • Browse by topic or agency, or keywords. • Use the Advanced Search feature to identify solar energy grants. Type the phrase 'solar energy' in the search box. You can also use the Eligibility menu to specify criteria of specific interest to you and your community. • Searching for solar energy projects for your local school, click on the several school-related categories. • Pay particular attention to submission deadlines and eligibility criteria to make sure you maximize your chances for being awarded federal funding for your solar energy project. • Search on related phrases such as: renewable energy, solar energy, solar electric that are of specific interest to you.
FedConnect.net The Federal government funding opportunities. FedConnect includes business contracting opportunities as well as grants, so casts a broader net than grants.gov alone. • Searching is not particularly robust , so, use a broad variety of search terms to make sure you are identifying all projects related to solar energy .
Solar Sources Take the Tour in Tulsa October 2nd. The ASES National Solar Tour is the world's largest grassroots solar event. This event offers you the opportunity to tour innovative solar homes and buildings to see how you can use solar energy to reduce utility bills . More than 160,000 participants will visit some 5,500 buildings in 3,200 communities across the U.S.
Learn from Nonprofits: Job boards, background information, membership lists, local chapters, newsletters, and contact names of industry leaders. Plus: * Alliance to Save Energy (ase.org) * American Solar Energy Society (ases.org) *Solar Energy Industry Association seia.org * Interstate Renewable Energy Council (irecusa.org) * US Green Building Council (usgbc.org) Consider Incentives State governments are increasingly developing renewable portfolio standards, policies, and incentives to attract green-collar jobs to their states. A helpful website to track the latest green policies is the Database of State Incentives for Renewables and Efficiency, also known as the DSIRE database. Not only is this a valuable resource for those interested in policy, but you can see how the incentives in your state compare to others – which is key to understanding which sectors are likely to grow in your state: dsireusa.org
Solar Payback Does your current gas or electric have a payback?
Solar does…. Your company has lower utility bills. Major parts of your solar system expected to last 30+ years. You achieve energy independence.
Solar, makes money!
Initial Investment vs. Life Cycle for Solar Energy Projects Financial inputs: 1. Investment 2. Loan Term 3. Interest Rate 4. Nominal Discount Rate 5. General Inflation Rate 6. Replacement Cost & Frequency (25 years minimum) 7. Environmental Value
σ (f (s)) = f (σ (s))
Energy Inputs: 1. Solar Fraction Base Fuel Usage (amount of energy from solar divided by the total energy)
2. 3. 4. 5. 6.
Fuel Cost Fuel Escalation Rate Base Electrical Usage Electricity Cost (taxes & distribution) Electricity Escalation Rate
∫
X2
x e dx
(5% Nat’l average over 30 yrs.) 72
σ (f (s)) = f (σ (s))
∫
x
e
X2
dx
73
“Lifetime Utility Rental Plan”
energy at the speed of light™
Solar – a better choice
energy at the speed of light™
SunCityEnergy.com
Solar Markets Presented by: Pamela Speraw Sun City Solar Energy, LLC
September 15, 2010 Rogers State University, Claremore, OK
Solar specialists since1983 - SunCityEnergy.com Part of the American Solar Energy Society’s National Solar Tour © 2005-2010 Sun City Solar Energy, LLC, All Rights Reserved
Certified by American Institute of Architects
Information Sources Renewable Global Status Report U.S Census Bureau Solar Rating & Certification Corporation World Future Council Oklahoma Department of Commerce International Energy Association National Renewable Energy Lab SolarBuzz Earth Policy Institute US Energy Information Association Department of Energy FedConnect DSIRE Renewable Energy Associations
What Can The Sun Do? Reduce operating costs. Decrease our dependence on foreign oil. Own your utility rather than rent. Save money. Provide educational opportunities. Create a cleaner and healthier future by producing energy from a renewable, pollution free resource. Create a sustainable quality environment.
LET YOUR ENERGY COMPANY BE THE SUN! Our future belongs to the efficient.
Solar is Reliable - works for decades with little or no maintenance Proven - operating across the world Clean - produces power without creating air pollution Cost-effective – has a payback typically 3-10 years
Home-grown - reduces our reliance on foreign energy Popular - Polls show 9 of 10 Americans want the U.S. to use more solar power
Solar Now at Forefront of International Political Agenda Rising world energy demand in India and China. Environmental concerns, strong consensus to reduce carbon emissions. Geopolitical concerns, energy supply security. Rising crude oil prices. National desires to improve living standards and achieve clean technology leadership.
World Solar Investment Government support, financial incentives, and greatly increased investment from both public sector and banks. Particularly banks based in Europe, Asia, and South America. Over $5 billion in 2009 and $2 billion in 2008
World City and local Governments Enacting Solar Promotion Policies
Established future targets Urban planning incorporating solar into city development Building codes that mandate/promote solar Tax credits and exemptions Purchases of solar power for public buildings Innovative electric utility policies Subsidies, grants, or loans Information and promotion activities
2009 Growth Rate Solar PV & SHW 53 % - Grid-Connected PV 21% - Solar Hot Water/Heating For the second year in a row, the US and Europe, added more renewable power capacity than conventional power capacity (coal, gas, nuclear).
Fossil Fuel Subsidies Outpace Renewables 2009: $43-46bn World Governments spent on Biofuels and Renewable Energy $557bn spent on subsidizing Fossil Fuels Global direct subsidy for fossil fuels is around ten times the subsidy for renewables (not including enormous security and public health costs of fossil fuels, and pollution catastrophes). The US: $18.2bn spent in 2009. 40% supporting the US biofuels sector with 60% supporting renewables. The federal stimulus program played a key role; its Treasury Department grant program alone provided $3.8bn in support for clean energy projects.
Europe accounted for $19.5bn of the total 2009 spent, or just under half the global total for Feed-in-tariffs (FiT) subsidizing the purchase of clean electricity. Germany: world’s single most expensive clean energy subsidy program in 2009,Its FiT cost Germany’s ratepayers $9.6bn in 2009 and is a reflection of the extraordinary number of PV systems installed in the country in recent years. Source: July 29, 2010, The research and consulting firm Bloomberg New Energy Finance (BNEF), and International Energy Agency
Jobs from Renewable Energy Worldwide, jobs in renewable energy industries exceeded 3 million in 2009. China and Brazil account for a large share of global total employment, having strong roles in solar hot water and biofuels industries. Many of these jobs are in installation, operations, and maintenance, as well as in biofuels feedstocks. Industry Estimated jobs Selected national estimates worldwide: Solar Hot Water- Worldwide 300,000 China 250,000 Solar PV: Worldwide 300,000 Germany 70,000; Spain 26,000; United States 7,000 Solar thermal power: Worldwide 2,000 Spain 1,000; US 1,000
Energy-Intensive Manufacturing Industries A few industries account for a 60% share of total industrial energy consumption and only 22 percent of total value of shipments. Ranked by their 2008 total energy use the top five energyconsuming industries: Bulk Chemicals Refining Steel Paper Food From 2008 to 2035, 4 of these 5 industries (food products the exception), as well as the other energy-intensive industries (glass, cement, and aluminum) projected to grow more slowly than the non-energy-intensive industries.
Energy Consumption Growth Varies Widely Across Industry Sectors The three largest energy-consuming industries: Bulk Chemicals, Iron/Steel, and Refining declines in energy use due to changes in competition from countries with access to less expensive energy sources, as well as changes in product mix. Energy consumption in the refining industry increases—despite a relative flat trend in overall petroleum demand—given the industry’s needs to process heavier crude oils, comply with low-sulfur fuel standards, and produce biofuels as mandated in EISA2007. Energy use also increases in the food, paper and pulp industries, where rising shipments reverse recent declines. For the cement, aluminum, and “other nonmanufacturing”industries, delivered energy consumption declines, primarily as a result of relatively slow output growth and long-term changes in production technology.
Almost all Renewable Energy Industries Experienced Manufacturing Growth in 2009, despite the Global Economic Crisis.
Nearly 11 GW of Solar PV was produced, a 50-percent increase over 2008. First Solar (USA) became the first firm ever to produce over 1 GW in a single year. Source: Renewable Global Status Report 2010
Non-fossil energy use grows rapidly, fossil fuels projected to provide 78% of total energy use in 2035 declining from 85%
Air Pollution/Health Hazards Global Carbon Concentration Air Pollution/Health Hazards from coal, oil, gas, & carbon dioxide emissions are expected to climb 52% by 2030*
Source:*International Energy Agency **National Atmospheric and Oceanic Administration
Clean Air Solar power systems operate without producing air & water pollution and solid wastes.
25 kWh’s of Solar Electricity Daily Saves • • • • • •
33 million kilowatt-hours of electricity 131 tons of coal 348 tons of carbon dioxide 2.3 tons of sulfur dioxide 2.5 tons of industrial waste emissions, 2 tons of atmospheric pollutants every year!
The Bright SideSun is Smart Energy!
In 40 minutes the SUN releases the amount of energy that is consumed by the entire population of the planet in ONE YEAR.
Currently we harness about 1% of the Sun’s energy.
SOLAR GAIN IN OUR REGION IS GREAT
Smart Choices for Energy Independence Solar Hot Water (Thermal) Solar Pool Heaters (Thermal) Solar Electric Power (Photovoltaic)
Certified Solar Hot Water System
• Provides 75-85% of your hot water needs with free energy from the sun • Premier freeze proof system • Manufactured for over a 30 year design life • Operates automatically all year • Keeps 7,200 pounds of carbon dioxide out of the air each year • Pays for itself several times over
Solar Hot Water A growing number of countries, states, and cities mandate solar hot water in new building construction,spanning all continents. Germany’s Renewable Heating Law requires 20% minimum heating from renewables in new residential buildings.
At least 20 countries provide capital grants, rebates, or investment tax credits for solar hot water/heating investments.
Solar Collector Shipments by Type, End Use, and Market Sector Year
# of Manufactuers
End use pool
SHW
Market Sector Residential Commercial
Heating
industrial
2000
26
7,863
367
99
7,473
810
57
2001
26
10,797
274
70
10,125
1,012
17
2002
27
11,073
423
146
11,000
595
62
2003
26
10,800
511
76
10,506
864
71
2004
24
13,634
452
13
12,864
1,178
70
2005
25
15,041
640
228
14,681
1,160
31
2006
44
15,362
1,136
330
15,123
1,626
42
2007
60
12,076
1,393
189
12,799
931
46
US Census Bureau
World Annual Amounts & Existing Capacity Added Annual Amounts 2009: Solar Hot Water/Heating: #1 China, #2 Germany, #3 Turkey, #4 Brazil, #5 India China In 2009 produced 40% of the world’s solar PV supply and 77% of the world’s solar hot water collectors and provided approximately $2bn in direct subsidies. China gives low-interest loans from state-owned banks. Europe is a distant second with 12%. Virtually all installations in China are for hot water only. But there is a trend in Europe toward larger ‘combo systems that provide both water and space heating; such systems now account for half of the annual market. Solar PV Grid-Connected: #1 Germany, #2 Italy, #3 US, #4 Japan #5 Czech Republic
Existing Capacity end of 2009: Solar PV (grid-connected): Germany Spain Japan United States Italy Solar hot water/heat: China Turkey Germany Japan Greece. China continues to dominate the world market for solar hot water collectors, with some 70% of the existing global capacity. Developing countries now make up over half of all countries with policy targets (45 out of 85 countries) and also make up half of all countries with some type of renewable energy promotion policy (42 out of 83 countries).
Solar Hot Water System
Energy Use
OWN UTILITY
RENT UTILITY
SOLAR WATER HEATER: FREE energy from the Sun
STANDARD WATER HEATER: COSTLY gas or electric
Annual operating cost: Much Less
Annual operating cost: 3rd largest energy use
Life expectancy: 30+ years.
Life expectancy: 8-12 years.
Does NOT deplete fossil fuels
Depletes fossil fuels.
Does NOT pollute environment.
Pollutes.
Adds Value
No added value
Has a return on your investment. (OWNING)
No return on utility payments (RENTING)
Protection from future price increases.
At mercy of utility companies and government.
BONUS FREE hot water!
High Usage Costly for locker rooms, laundry, & cafeteria.
“Buying green power was a small part of our construction costs and will pay for itself many times over”. John Charlton, president of Charlton Development. Both applications will eliminate approximately 40 tons of carbon emissions per year from the environment.
21 solar pool panels and 12 hot water collectors
Commercial Grade Seasonal Solar Pool Heaters Set desired pool temperature. Can cool pool at night. Highly reliable and generally maintenance free. Lasts 2-3 times longer than natural gas or electric heater. Preserves and shades roof. Affordable, low cost way to heat school pool. Fast return on investment Limited Lifetime Warranty.
Solar Electric Power Converts Sunlight to Electricity Stand Alone (batteries for storage) Grid-Tie (meter runs backwards) Hybrid (Combination of Both)
PV inverter Market Growing rapidly, product shortages acute around the world, especially in Europe. The PV inverter market shipped 8.3 GW of devices in 2009, totaling $2.8 billion in revenue. IMS Research's analysis of PV industry projects market size of 14.6 GW in 2010. projected growth of almost 70% per year is unlikely to be sustainable in the long term. SMA Solar Technology retained its position as the world’s largest solar inverter supplier, with a market share of more than 37%. Due to extreme shortages and supply issues many inverter suppliers are in a position to both gain and lose major market share in 2011. Source IMS Research
Hilti/Sun City Solar Case Study
Result: Hilti purchased Unirac Mounting systems and redesigned the hardware as a result of input from Sun City Solar of problems with current mounting hardware during Sun City installs
Solar Power Questions Will the Solar System generate electricity on cloudy days? Yes, solar panels capture light energy from the sun. What happens at night with a grid-tie solar system? Draw on solar during day, switch to electric provider at night.
Can I put my Solar Electric Power System anywhere? South free of shade.
How much Solar Power do I need? Buildings don’t use electricity people do. Determined by usage.
Inverter • Modifies the current and voltage provided by the solar energy panels to maximize electric power output. • Converts DC power from the panels to AC power • Matches the converted AC power to the voltage and frequency of the utility's electrical. • Safeguards the utility network system and its personnel from possible harm during repairs.
• Prevents damage to the solar energy array and other components during unusual operating conditions.
Stand–Alone Off-Grid Solar System
Charge Controller Function Regulates Electricity Flowing from Solar Modules into Your Battery or Load
The controller keeps the battery fully charged without over-charging.
Grid-Tie with Back-up Hybrid System
The Sunny WebBox • System Access from any Web browser
• • • • • • •
Records daily, monthly and annual energy Remote plant diagnosis Remote system configuration Automatic data transfer at chosen intervals Data storage and display via Ethernet Compatible with all SMA inverters Low power consumption
Downtown Tulsa Historic Fire Station Solar Electric Awning 20)195 Watt Modules Generating 3,900 Watts Per Hour
Net Metering Steps 1. Make written application to electric provider. 2. Submit plans detailing electrical design 3. Electric company approval needed prior to performing work. 4. Sign interconnection agreement. .
Feed-In Tariffs By early 2010, at least 50 countries and 25 states/provinces had feed-in tariffs, more than half of these adopted only since 2005. Strong momentum for feed-in tariffs continues around the world as countries continue to establish or revise policies. States and provinces have been adopting feed-in tariffs in increasing numbers as well.
Feed in Tariffs
Feed In Tariffs have resulted in15,000 MW of Solar PV from 2000 to 2009 in the European Union. In comparison, there was only 1,250 MW of Solar PV in the U.S. at the end of 2009. Source: The Report ―Policymakers Guide to Feed-in Tariff Policy Design, NREL
Grading System of North American Feed-in Tariffs (FiT) Compared to FiT Best Practices Around the World. Country
Score
Grade
France
90
A
Germany
90
A
Spain
80
A-
Ontario
84
A-
Vermont
54
D
Maine
43
F
Wisconsin IOU’s
36
F
California
28
F
Oregon
16
F
Indiana HB 1190 - Proposed
82
A-
California AB 1106 - Proposed
54
D
Grading criteria: program and project size caps, contract terms, eligible technologies, and different tariff rates depending on technology, generation, and size. Source: World Future Council May 2010
Renewable Portfolio Standards (RPS) Require electricity providers to generate or acquire a percentage of generation from renewable sources. Many RPS programs have "escape clauses" if renewable generation exceeds a cost threshold. Some States have delayed compliance and others lack enforcement procedures. As a result, some States may not meet their RPS goals. EIA projects that most States should ultimately be able to meet their RPS requirements. Markets: A number of States have built Renewable Energy Certificates/Credits (RECs) into their Renewable Portfolio Standards. This allows electricity providers to sell renewable energy certificates/credits and use their proceeds for renewable projects. Some States have made REC markets mandatory, requiring electricity providers to produce or acquire renewable generation to reduce reliance on fossil fuels to generate electricity.
Renewable Portfolio Standard (RPS) Policies also called Renewable Obligations or Quotas
• Enacted by 10 national governments and 46 state/provincial governments around the world. • Most RPS policies require renewable power shares in the range of 5–20 percent, with many targets extending to 2020 and beyond. • Some type of direct capital investment subsidy, grant, or rebate is offered in at least 45 countries.
Renewable Energy Standard
A major new study conducted by Navigant Consulting, Inc. reveals that by 2025 a national Renewable Energy Standard would result in 274,000 more renewable energy jobs than a no-national RES policy. Source: Several renewable energy associations
Investment Tax Credit 30% Unlimited Through 2016 Tax credits boost the near-term expansion of solar in the residential and commercial sector.
PV capacity benefits from a 30-percent ITC through 2016 and reverts to a 10-percent credit thereafter. Some type of direct capital investment subsidy, grant, or rebate is offered in at least 45 countries.
Extended Tax Credits through 2035 The implications of extending the tax credits. Total installed PV capacity reaches 9.5 gigawatts in 2035 in the Reference case, it grows to 60.5 gigawatts in 2035 in the Extended Policies case. When the Federal tax credit expires in 2016 In the Extended Policies case—with the tax credit extended through 2035—the market share nearly doubles, to 4 percent in 2035.
The Oklahoma Department of Commerce has established a loan/lease fund for institutes of higher education to improve energy efficiency. Two categories of funding are available for schools to reduce energy consumption: Category I funding will pay for technical and energy audits, the development of Energy Management Plans, and any professional services that contribute to the planning and design of energy reduction systems and measures.
Category II funding covers the actual acquisition and installation of energy conservation measures. All projects must be shown to reduce energy consumption, have a positive return on investment, and be able to be repaid within six years. Loan funds may not be used to pay off an existing loan, but may be used to leverage additional third-party financing of energy efficiency projects. An eligible institute of higher education may only have one active loan at a time.
State:
Oklahoma
Incentive Type:
State Loan Program
Eligible Efficiency Technologies:
Yes; specific technologies not identified
RenewableTechnologies:
Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors:
Institutes of Higher Education
Amount:
Varies
Maximum Incentive:
$300,000
Terms:
1 to 6 year terms at 3% interest rate
Program Budget:
$1.1 million
Web Site:
http://www.okcommerce.gov/index.php?option=com_content&task=view&...
The Oklahoma Department of Commerce has established a loan/lease fund for public and nonprofit K-12 schools to improve energy efficiency. Two categories of funding are available for schools to reduce energy consumption: Category One funding will pay for technical and energy audits, the development of Energy Management Plans, and any professional services that contribute to the planning and design of energy reduction systems and measures. Category II funding covers the actual acquisition and installation of energy conservation measures.
All projects must be shown to reduce energy consumption, have a positive return on investment, and be able to be repaid within six years. Loan funds may not be used to pay off an existing loan, but may be used to leverage additional third-party financing of energy efficiency projects. An eligible school district may only have one active loan at a time. State: Oklahoma Incentive Type: State Loan Program Eligible Efficiency Yes; specific technologies not identified Technologies: Eligible Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Renewable/Other Biomass Technologies: Applicable Sectors:
Schools
Amount:
100% of costs
Maximum Incentive:
$200,000 per eligible school district
Terms:
3% interest rate, for up to six years
Program Budget:
$1 million
Web Site:
http://www.okcommerce.gov/index.php?option=com_content&task=view&...
Grants.gov The federal government central website for information on grants and other funding opportunities. • Browse by topic or agency, or keywords. • Use the Advanced Search feature to identify solar energy grants. Type the phrase 'solar energy' in the search box. You can also use the Eligibility menu to specify criteria of specific interest to you and your community. • Searching for solar energy projects for your local school, click on the several school-related categories. • Pay particular attention to submission deadlines and eligibility criteria to make sure you maximize your chances for being awarded federal funding for your solar energy project. • Search on related phrases such as: renewable energy, solar energy, solar electric that are of specific interest to you.
FedConnect.net The Federal government funding opportunities. FedConnect includes business contracting opportunities as well as grants, so casts a broader net than grants.gov alone. • Searching is not particularly robust , so, use a broad variety of search terms to make sure you are identifying all projects related to solar energy .
Solar Sources Take the Tour in Tulsa October 2nd. The ASES National Solar Tour is the world's largest grassroots solar event. This event offers you the opportunity to tour innovative solar homes and buildings to see how you can use solar energy to reduce utility bills . More than 160,000 participants will visit some 5,500 buildings in 3,200 communities across the U.S.
Learn from Nonprofits: Job boards, background information, membership lists, local chapters, newsletters, and contact names of industry leaders. Plus: * Alliance to Save Energy (ase.org) * American Solar Energy Society (ases.org) *Solar Energy Industry Association seia.org * Interstate Renewable Energy Council (irecusa.org) * US Green Building Council (usgbc.org) Consider Incentives State governments are increasingly developing renewable portfolio standards, policies, and incentives to attract green-collar jobs to their states. A helpful website to track the latest green policies is the Database of State Incentives for Renewables and Efficiency, also known as the DSIRE database. Not only is this a valuable resource for those interested in policy, but you can see how the incentives in your state compare to others – which is key to understanding which sectors are likely to grow in your state: dsireusa.org
Solar Payback Does your current gas or electric have a payback?
Solar does…. Your company has lower utility bills. Major parts of your solar system expected to last 30+ years. You achieve energy independence.
Solar, makes money!
Initial Investment vs. Life Cycle for Solar Energy Projects Financial inputs: 1. Investment 2. Loan Term 3. Interest Rate 4. Nominal Discount Rate 5. General Inflation Rate 6. Replacement Cost & Frequency (25 years minimum) 7. Environmental Value
σ (f (s)) = f (σ (s))
Energy Inputs: 1. Solar Fraction Base Fuel Usage (amount of energy from solar divided by the total energy)
2. 3. 4. 5. 6.
Fuel Cost Fuel Escalation Rate Base Electrical Usage Electricity Cost (taxes & distribution) Electricity Escalation Rate
∫
X2
x e dx
(5% Nat’l average over 30 yrs.) 72
σ (f (s)) = f (σ (s))
∫
x
e
X2
dx
73
“Lifetime Utility Rental Plan”
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