Solar 101 - Franklin 8/20/14

1

Solar 101

Presented by:

Massachusetts Clean Energy Center

August 20, 2014

Introduction

Solar PV Basics

Solar PV Incentives and Economics

Outline

MassCEC Statutory Mandate

Advance Clean Energy Technology

Create Jobs

Develop a Trained Workforce

Accelerate Deployment of Clean Energy

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Solar Photovoltaic (PV) Basics

2 – 6 per year

COAL 1,8

Uranium 1,9

900 Total reserve

90-300 Total

Petroleum 1,8

240 total

Natural Gas 1,8

215 total

WIND1,2

Waves1,3

0.2-2

25-70 per year

OTEC1,4

Biomass 1,5

3 -11 per year

HYDRO 1,6

3 – 4 per year

TIDES 1 Geothermal1,7

0.3 – 2 per year

0.3 per year

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FINITE ENERGY RESERVES

RENEWABLES

ANWR

© R. Perez et al.

World energy use 16 TW-yr per year ~ 475 exajoules ~ 460 Quads

2 – 6 per year World energy use 16 TW-yr per year

COAL 1,8

Uranium 1,9

900 Total reserve

90-300 Total

Petroleum 1,8

240 total

Natural Gas 1,8

215 total

WIND1,2

Waves1,3

0.2-2

25-70 per year

OTEC1,4

Biomass 1,5

3 -11 per year

HYDRO 1,6

3 – 4 per year

TIDES 1

SOLAR10

23,000 per year

Geothermal1,7 0.3 – 2 per year

© R. Perez et al.

0.3 per year

ANWR

COAL 1,8

Uranium 1,9

Power from the Sun

Every 88 minutes, enough sunlight reaches the Earth’s surface to power the world for a year

Every 112 minutes, more sunlight reaches the Earth’s surface than is stored in all the proven oil, coal, and natural gas reserves in the world

Is There Enough Sun In MA?

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2.00

3.00

8.00

13.00

18.00

23.00

28.00

33.00

38.00

HI

AK

N

Y C

T V

T N

H

NJ

CA

M

A

ME RI

MI

DE

WI

MD

PA

D

C

US

NV

SC

O

H

CO

FL

A

L IL

NM

M

N

AZ

KS

GA

V

A

TX

NC

IA

IN

M

S M

O

TN

MT

SD

NE

UT

WV

W

Y O

R

OK

K

Y A

R

ND

ID

W

A

LA

2012 Avg Residential Electricity Prices (cents per kWh)

Massachusetts Residential Electricity Prices

Sources: EIA 2012 Data

MA homeowners had the 9th highest average electricity prices in 2012.

MA US

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

$/k

Wh

Pri

ce

Residential Electricity Rates

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Residential Project Trends

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

0

500

1000

1500

2000

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3500

Inst

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ost

($

/wat

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2006

2013

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What makes a good site?

http://energy.ltgovernors.com/solar-energy-pv-systems-self-generation-make-your-own-power.html

• Southern exposure •PV panels angled 30˚ – 45˚ • At least 4-6 hours of direct sunlight • Open roof area of ~100 sq ft per 1 kW • Open space for a ground or pole mounted system

How Does Solar a PV System Work?

Grid-connected projects can apply for Net Metering (utility meter spins backwards)

Power outage: Inverter shuts down, unless a battery-back up system is installed

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Shading of Solar PV Systems

Initial site feasibility can be

determined online through

aerial images

A shading analysis should be

performed for each feasible

project site

Solmetric SunEye

Solar Pathfinder

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Aerial photos

4.

1. 2. 3.

5.

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What adds costs to an installation?

Structural

• Reinforce Rafters

• Split Arrays/ Multi Roof

• Metal Roof

• Steep Roof

Electrical

• Service Change

• Supply Side Tap

Other

• Ground-mounted System

• Data Acquisition System

• Extended Warranty

• Increased shading

Common Cost Adders

Introduction

Solar PV Basics

Solar PV Incentives and Economics

Outline

High electricity prices + Reduced Solar PV Costs +

Numerous Incentives = Economical solar projects

Solar Incentives in Massachusetts

www.house-power.com/blog/wp-content/uploads/2009/12/iStock_000009001180XSmall.jpg

Incentives

Tax Incentives: Federal (30%)

State (15% up to $1,000)

Rebates from MassCEC

Net Metering

SREC Sales

Low/No money down options

Quarterly funding blocks

$1.5 million available

Residential, commercial, non-

profit & public solar PV

systems ≤ 15 kW

Rebate capped at 5 kW

Proposed rebate ranges from

$1,250 to $3,500 for 5kW

system

Rebate covers ~5% of Installed

Cost

Commonwealth Solar II Rebate Program

Block 19 Rebate Levels ($ per watt (DC @ STC))

Base Incentive $0.25

PLUS:

Massachusetts Company Component Adder $0.05

Moderate Home Value Adder OR Moderate Income Adder ≤ 120% of MA median income (only residential projects eligible)

$0.40

Natural Disaster Relief Adder $1.00

Go to www.MassCEC.com/solar to learn more.

MassCEC Rebate Program (cont.)

County Property Value

Berkshire, Franklin, Hampden, and Hampshire ≤ $300,000

Bristol, Suffolk, Worcester ≤ $350,000

Barnstable, Duke, Essex, Middlesex, Nantucket, Norfolk, and Plymouth

≤ $400,000

Income Category Income Levels

Individual Income ≤ $75,810*

Domestic Unit Income ≤ $95,420*

Moderate Home Value Adder Criteria

* 120% of median household income as determined by the US Census Bureau

Moderate Income Adder Criteria

Experienced Installer

Minimum Technical Requirements

Equipment must meet certain standards

Required warranties

− Panels have 20 year warranties

− Inverters have 10 year warranties

− 5 year workmanship warranty

80% of optimal system production

MassCEC Rebate Program (cont.)

Solar Renewable Energy Certificates (SRECs)

Electricity Pathway • Electrons from all

generation sources are

physically the same

• Cannot be tracked

independently on the

grid

SRECs Pathway • SRECs represent the

“green” attributes of the

renewable generation source

• Utilities are required to

purchase SRECs every year

• 1 SREC = 1,000 kWh

• Verified SRECs ensure

that only one buyer can

claim each SREC

Electricity and SRECs can be, and often are, sold

separately

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SRECs (cont.)

Will be able to sell SRECs for 10 years

Likely sell from $285 - $199 per SREC

Work with aggregator or broker to help with the sale

Monthly production reported to MassCEC’s

Production Tracking System (PTS)

SREC II Program began accepting new applications in

early May 2014

Outright purchase

Third party ownership

Ownership Models

Elizabeth Youngblood

Project Manager, Solar Programs

EYoungblood@MassCEC.com

Learn more at

www.MassCEC.com

Thank You! - Questions?