11

Go Green - Conserve energy in Go Green - Conserve energy in residential homes through solar energyresidential homes through solar energy

Sonia BatraSonia BatraPh. D Student, Walden UniversityPh. D Student, Walden University

PUBH - 8165 – 1PUBH - 8165 – 1Instructor: Instructor: Howard E. Rubin, Ph.D.Howard E. Rubin, Ph.D.

Fall 2010Fall 2010

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AgendaAgenda

• Solar PowerSolar Power• Environmental Impact of Conventional energy Environmental Impact of Conventional energy

use in residential homesuse in residential homes• FinancingFinancing• Solar Electric System (aka photovoltaic or PV Solar Electric System (aka photovoltaic or PV

system)system)• Example of PV SystemExample of PV System• Cost SavingsCost Savings• ConclusionConclusion

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Solar PowerSolar Power• Two forms of solar powerTwo forms of solar power

– Photovoltaic Panels & Solar thermal plantsPhotovoltaic Panels & Solar thermal plants(New Jersey Clean Energy Program. Technologies. Renewable (New Jersey Clean Energy Program. Technologies. Renewable

Energy Energy Technologies)Technologies)

• A key driver in renewable energy market A key driver in renewable energy market (Siemens, Solar Power)(Siemens, Solar Power)

• US Trends – Solar power industryUS Trends – Solar power industry(Chen & Pang)(Chen & Pang)

• A remarkably great investmentA remarkably great investment

• Incentives and rebates provided by the State and FederalIncentives and rebates provided by the State and Federal

((New Jersey Solar FAQ'sNew Jersey Solar FAQ's))

Chen, H. H. & Pang, C. (2010). Organizational forms for knowledge management in photovoltaic solar energy industry. Knowledge-Based systems, 23, 924-933

New Jersey Clean Energy Program. Technologies. Renewable Energy Technologies. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/technologies

New Jersey Solar FAQ's. Retrieved on October 10, 2010 from http://www.renewablepowerinc.com/id63.html

Siemens. Solar Power. Retrieved on October 09, 2010 from http://www.energy.siemens.com/us/en/power-generation/renewables/solar-power/

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Environmental ImpactEnvironmental Impact• ClimateClimate

• GeologyGeology

• GroundGround

• Subterranean Surface WaterSubterranean Surface Water

• Flora and FaunaFlora and Fauna

• LandscapeLandscape

• NoisesNoises

• Social EnvironmentSocial Environment

HEV. FAQ. What environmental impact does photovoltaic solar energy have? Retrieved on October 09, 2010 from http://english.energiasverdes.com/preguntas-frecuentes/que-impacto-ambiental-tiene-la-energia-solar-fotovoltaica.html

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FinancingFinancing

Many options for financing are available Many options for financing are available through various types of rebate and through various types of rebate and incentivesincentives– Federal rebateFederal rebate

– State RebateState Rebate

– Local Government rebate/incentiveLocal Government rebate/incentive

– Out of pocket and private capital Out of pocket and private capital

New Jersey Solar FAQ's. Retrieved on October 10, 2010 from http://www.renewablepowerinc.com/id63.html

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New Jersey’s Solar Financing ModelNew Jersey’s Solar Financing Model

• Relies on Five Sources of revenue:Relies on Five Sources of revenue:– Societal Benefits ChargeSocietal Benefits Charge– Fed Tax CreditsFed Tax Credits– Electric Cost Savings through Net MeteringElectric Cost Savings through Net Metering– Renewable Energy Certificates sold to Renewable Energy Certificates sold to

Renewable Portfolio StandardsRenewable Portfolio Standards ( (RPS) & RPS) & Voluntary MarketsVoluntary Markets

– Out of Pocket EquityOut of Pocket EquityNew Jersey Clean Energy Program. FAQs. New Jersey's Solar Renewable Energy Certificates (SREC) Program and New Jersey's Solar Market: Transition to Market-Based REC Financing System. How does New Jersey’s Solar financing Model work? Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/tools-and-resources/faqs/srec#Anchor-Tax-9999

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Solar Renewable Energy Certificates – SRECs Solar Renewable Energy Certificates – SRECs How they are generated at NJ Clean Energy?How they are generated at NJ Clean Energy?

Register in SRP Program

Provides anticipated new solar capacity & insight into future SREC Pricing

Registration Accepted

Construction Accepted

Final Paper Work Completed

Project complete & issued a NJ Certification # which enables to generate NJ SRECs

New Jersey CleanNew Jersey Clean Energy Program. SREC Registration Program. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/programs/solar-renewable-energy-certificates-srec/new-jersey-solar-renewable-energy

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Figure 1Figure 1

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Figure 2Figure 2

1010

Figure 3Figure 3

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The workings of Photovoltaic (PV) System The workings of Photovoltaic (PV) System Solar Electric SystemSolar Electric System

Batteries (optional

)

Batteries (optional

)

Customer Loads/Utilit

y Grid

CellSolar Electric

Modules

New Jersey Clean Energy Program. How Solar Works. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/how-solar-works/how-solar-works

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Work Process – PV SystemsWork Process – PV Systems

• Converts sunlight directly into electricityConverts sunlight directly into electricity

• Produces electricity directly from electrons that are Produces electricity directly from electrons that are freed when sunlight interacts with the semiconductor freed when sunlight interacts with the semiconductor material in the solar electric cellsmaterial in the solar electric cells

• Cells are the basic building blocks of the system and are Cells are the basic building blocks of the system and are wired together to form moduleswired together to form modules

• The modules are connected to an electricity utility The modules are connected to an electricity utility through an inverter that changes the DC produced by through an inverter that changes the DC produced by the cells into ACthe cells into AC

New Jersey Clean Energy Program. How Solar Works. Retrieved on October 09, 2010 from

http://www.njcleanenergy.com/renewable-energy/technologies/solar/how-solar-works/how-solar-works

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Benefits – PV SystemBenefits – PV System• Helps the environment due to low carbon energy technologyHelps the environment due to low carbon energy technology

(Alsema, Wild-Scholten, & Fthenakis, 2006)(Alsema, Wild-Scholten, & Fthenakis, 2006)

• Stabilize electric costsStabilize electric costs

• Smaller electric billsSmaller electric bills

• Uninterrupted electricity supplyUninterrupted electricity supply

• Income (net metering)Income (net metering)(New Jersey Clean Energy Program, Solar)(New Jersey Clean Energy Program, Solar)

• Increased property valueIncreased property value

• Reliable powerReliable power(Sharp, Why go solar? the answer is up to you) (Sharp, Why go solar? the answer is up to you)

Alsema, E. A., Wild-Scholten, M. J. de, & Fthenakis, V. M. (2006). Environmental impacts of PV electricity generation- a critical comparison of energy supply options. Retrieved on October 22, 2010 from http://www.clca.columbia.edu/papers/21-EUPVSC-Alsema-DeWild-Fthenakis.pdf

New Jersey Clean Energy Program. Solar. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/benefits/benefits

Sharp. Why go solar? The answer is up to you. Retrieved on October 09, 2010 from http://www.sharpusa.com/SolarElectricity/WhyGoSolar.aspx

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Monthly consumption cost Monthly consumption cost with conventional energywith conventional energy

Appliance Appliance NameName

EnergyEnergy Cost/monthCost/month

Air ConditionerAir Conditioner 162162 $19.44$19.44

Clothes DryerClothes Dryer 8080 9.609.60

DishwasherDishwasher 3030 3.603.60

CoffeemakerCoffeemaker 1212 1.441.44

Light BulbLight Bulb 1515 1.801.80

Refrigerator/Refrigerator/FreezerFreezer

165165 19.8019.80

New Jersey Clean Energy Program. Size and Features. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/size-and-features/size-and-features

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Costs ComparisonCosts ComparisonConventional Energy vs. Solar EnergyConventional Energy vs. Solar Energy

Conventional EnergyConventional Energy SolarSolar Energy Energy• Average house hold Average house hold

cost in the range of cost in the range of $8 - $10 per watt$8 - $10 per watt

• Depends on many factorsDepends on many factors– Home under constructionHome under construction– Modules are integrated Modules are integrated

into the roof ORinto the roof OR– Mounted on an existing Mounted on an existing

roofroof– Selection of equipmentsSelection of equipments– System component System component

manufacturermanufacturer– Contractor’s installation Contractor’s installation

cost cost • 2KW installed system cost 2KW installed system cost

approx. $20K or $10/wattapprox. $20K or $10/watt• 5KW installed system cost 5KW installed system cost

approx. $40K or $8/wattapprox. $40K or $8/watt

New Jersey Clean Energy Program. Cost, Incentives, and Savings. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/size-and-features/size-and-features

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ROI - SummaryROI - Summary

•Per NJ’s Finance model explained on Per NJ’s Finance model explained on slide #4, the ROI is as follows:slide #4, the ROI is as follows:

– Using rebate, tax credits, electric cost Using rebate, tax credits, electric cost savings; the ROI is about 25 years for an savings; the ROI is about 25 years for an average of 10kW systemaverage of 10kW system

– Adding SRECs which are paid out over the Adding SRECs which are paid out over the life of the system & provide about $2,400 life of the system & provide about $2,400 per year for a 10kw system, the ROI is per year for a 10kw system, the ROI is reduced to 10 years from 25 years reduced to 10 years from 25 years

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Important facts to considerImportant facts to consider

• Initial high capital costInitial high capital cost

• Long term ROILong term ROI

• Energy depend upon the direction of Energy depend upon the direction of Sun Sun

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ConclusionConclusion

• Best alternate to conserve energyBest alternate to conserve energy

• Environmentally viable optionEnvironmentally viable option

• Initial high cost investment with a Initial high cost investment with a long term ROIlong term ROI

• Ample support from the Ample support from the local/state/federal in terms of tax local/state/federal in terms of tax rebates, incentives, and other rebates, incentives, and other financial resources financial resources

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GlossaryGlossary• Net Metering –Net Metering – A service option available from your electric utility that A service option available from your electric utility that

allows your electric meter to spin backwards when excess energy is generated allows your electric meter to spin backwards when excess energy is generated by your solar electric system. The excess energy is effectively stored by the by your solar electric system. The excess energy is effectively stored by the utility until it is required for future use by the customerutility until it is required for future use by the customer

• Solar Cell –Solar Cell – The basic building block of a solar electric system. Solar cells The basic building block of a solar electric system. Solar cells are made of a semiconductor material and convert sunlight directly into are made of a semiconductor material and convert sunlight directly into electricityelectricity

• Solar Module –Solar Module – A group of solar cells, modules are the smallest solar A group of solar cells, modules are the smallest solar electric components sold commercially, ranging in power output from 10 electric components sold commercially, ranging in power output from 10 watts to 300 wattswatts to 300 watts

• Inverter –Inverter – A device that converts Direct Current (DC) into Alternating A device that converts Direct Current (DC) into Alternating Current (AC)Current (AC)

• Kilowatt (kW) –Kilowatt (kW) – 1,000 watts of electric power1,000 watts of electric power• Kilowatt-hour (kWh) –Kilowatt-hour (kWh) – A unit of electric power consumption indicating the A unit of electric power consumption indicating the

total energy developed by the power of one kilowatt acting for one hourtotal energy developed by the power of one kilowatt acting for one hour

New Jersey Clean Energy Program. Glossary. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/glossary/glossary

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ReferencesReferencesAlsema, E. A., Wild-Scholten, M. J. de, & Fthenakis, V. M. (2006). Environmental impacts Alsema, E. A., Wild-Scholten, M. J. de, & Fthenakis, V. M. (2006). Environmental impacts

of PV electricity generation- a critical comparison of energy supply options. Retrieved of PV electricity generation- a critical comparison of energy supply options. Retrieved on October 22, 2010 from on October 22, 2010 from http://www.clca.columbia.edu/papers/21-EUPVSC-Alsema-DeWild-Fthenakis.pdf

Chen, H. H. & Pang, C. (2010). Organizational forms for knowledge management in photovoltaic Chen, H. H. & Pang, C. (2010). Organizational forms for knowledge management in photovoltaic solar energy industry. solar energy industry. Knowledge-Based systems, 23Knowledge-Based systems, 23, 924-933, 924-933

HEV. FAQ. What environmental impact does photovoltaic solar energy have? Retrieved on HEV. FAQ. What environmental impact does photovoltaic solar energy have? Retrieved on October 09, 2010 from October 09, 2010 from http://english.energiasverdes.com/preguntas-frecuentes/que-impacto-ambiental-tiene-la-energia-solar-fotovoltaica.html

New Jersey Clean Energy Program. Technologies. Renewable Energy Technologies. Retrieved on New Jersey Clean Energy Program. Technologies. Renewable Energy Technologies. Retrieved on October 09, 2010 from October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/technologies

New Jersey Clean Energy Program. FAQs. New Jersey's Solar Renewable Energy Certificates New Jersey Clean Energy Program. FAQs. New Jersey's Solar Renewable Energy Certificates (SREC) Program and New Jersey's Solar Market: Transition to Market-Based REC Financing (SREC) Program and New Jersey's Solar Market: Transition to Market-Based REC Financing System. How does New Jersey’s Solar Financing Model Work? Retrieved on October 09, System. How does New Jersey’s Solar Financing Model Work? Retrieved on October 09, 2010 from 2010 from http://www.njcleanenergy.com/renewable-energy/tools-and-resources/faqs/srec#Anchor-Tax-9999

New Jersey Clean Energy Program. SREC Registration Program. Retrieved on October 09, 2010 New Jersey Clean Energy Program. SREC Registration Program. Retrieved on October 09, 2010 from from http://www.njcleanenergy.com/renewable-energy/programs/solar-renewable-energy-certificates-srec/new-jersey-solar-renewable-energy

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References - Contd.References - Contd.New Jersey Clean Energy Program. How Solar Works. Retrieved on October 09, 2010 from New Jersey Clean Energy Program. How Solar Works. Retrieved on October 09, 2010 from

http://www.njcleanenergy.com/renewable-energy/technologies/solar/how-solar-works/how-solar-works

New Jersey Clean Energy Program. Solar. Retrieved on October 09, 2010 from New Jersey Clean Energy Program. Solar. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/benefits/benefits

New Jersey Clean Energy Program. Size and Features. Retrieved on October 09, 2010 from New Jersey Clean Energy Program. Size and Features. Retrieved on October 09, 2010 from http://www.njcleanenergy.com/renewable-energy/technologies/solar/size-and-features/size-and-features

New Jersey Clean Energy Program. Cost, Incentives, and Savings. Retrieved on October 09, 2010 New Jersey Clean Energy Program. Cost, Incentives, and Savings. Retrieved on October 09, 2010 from from http://www.njcleanenergy.com/renewable-energy/technologies/solar/size-and-features/size-and-features

New Jersey Solar FAQ's. Retrieved on October 10, 2010 from New Jersey Solar FAQ's. Retrieved on October 10, 2010 from http://www.renewablepowerinc.com/id63.html

Sharp. Why go solar? The answer is up to you. Retrieved on October 09, 2010 from http://www.sharpusa.com/SolarElectricity/WhyGoSolar.aspx

Siemens. Solar Power. Retrieved on October 09, 2010 from Siemens. Solar Power. Retrieved on October 09, 2010 from http://www.energy.siemens.com/us/en/power-generation/renewables/solar-power/

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Additional ResourcesAdditional Resources• Sharp websiteSharp website http://www.sharpusa.com/ http://www.sharpusa.com/SolarElectricity/HowSolarWorks/ResidentialFAQ.aspx

• New Jersey Board of Public UtilitiesNew Jersey Board of Public Utilitieswww.nj.gov/bpu

• Mid-Atlantic Solar Energy Industries AssociationMid-Atlantic Solar Energy Industries Associationseia.org

• Northeast Sustainable Energy AssociationNortheast Sustainable Energy Associationnesea.org

• New York Solar Energy Industries Association (NYSEIA)New York Solar Energy Industries Association (NYSEIA)nyseia.org

• U.S. Department of EnergyU.S. Department of Energyenergy.gov

• National Center for PhotovoltaicsNational Center for Photovoltaicsnrel.gov/ncpvnrel.gov/ncpv

• National Renewable Energy Laboratory (NREL)National Renewable Energy Laboratory (NREL)nrel.gov nrel.gov

• Office of Energy Efficiency & Renewable EnergyOffice of Energy Efficiency & Renewable Energyeren.doe.goveren.doe.gov