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Solar Energy: An Overview

EgyE 221

Solar Energy 1

Energy Engineering Program

College of Engineering

University of the Philippines, Diliman

Topic outline

• Solar Energy Resource

• Solar Energy Applications

• Solar Energy Economics

• Solar Energy Policy

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What is solar energy and why is it of

interest?

• solar radiation – electromagnetic radiation emitted by the sun, available anywhere on earth at least part of the year

• Can be primarily converted into useful forms of energy

– heat

– electricity

• Technical feasibility of conversion technologies depends on availability of the resource in a specific location

Solar Energy Resource

• How much is there?

• What is the distribution?

• How much can be converted to useful energy?

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How much is there?

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How much is there?

Useful energy (exergy) in surface incident solar radiation, wind, hydro and

geothermal[1] compared to global consumption - Energy Information Administration

(in 2004, 447.605 Quadrillion btu/yr = 14.965 x 10^12 Watts)

Solar Data Measurement Sites in the

Philippines*

Univ of

Lowell, 1991

Profile of

Solar

Insolation in

the

Philippines,

early 1980s

PAGASA Solar

Data, 1970-

recent.

Data are not

continuous with

some missing

years.

*Cited in “Assessment of Solar Resources in the Philippines, Task 7Bb Report, Philippine

Renewable Energy Project, prepared by NREL under contract w USAID. Oct, 2000

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Solar Radiation Distribution in the

Philippines*

*Reported in “Assessment of Solar Resources in the Philippines, Task 7Bb Report, Philippine Renewable Energy Project,

prepared by NREL under contract w USAID. Oct, 2000

How much capacity is installed?

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Solar Energy Applications

Solar Photovoltaic

• Calculators, other small

electronic articles

• Street lighting, Community

charging

• Home electrification

• Remote stations (weather,

communications, etc...)

• Centralized power

generation

Solar Thermal

• Solar water heating (home,

pools, hospitals, hotels...)

• Solar space heating

• Solar space cooling

• Solar cooking

• Solar drying (agricultural

products)

• Solar incubators (eggs, etc...)

• Solar thermal power

generation

Solar

Thermal

Energy

Economics

Electric Water

Heater

Natural Gas

Water Heater

Solar Water

Heater

Solar Water

Heater w Rebates

Annual Energy Produced kWh 4300 same same

therm* 200 same same

Cost of fuel (1st year) $/kWh 0.11

$/1000 cuft 12.5

Energy Inflation Rate 6% 10%

Installed Cost, $ 1,500 1500 9000 5000

Maintenance, $/mo 0 0 2 2

Cost to Operate, $ 1st year 473 250 0 0

2nd year 501.38 275 0 0

3rd year 531.46 302.5 0 0

4th year 563.35 332.75 0 0

5th year 597.15 366.03 0 0

6th year 632.98 402.63 0 0

7th year 670.96 442.89 0 0

8th year 711.22 487.18 0 0

9th year 753.89 535.90 0 0

10th year 799.12 589.49 0 0

Total Cost of Energy

Consumed 6234.52 3984.36 0 0

Life Cycle Cost AFter 10

years 10 7,734.52 5,484.36 9,240.00 5,240.00

After 15 years 15 12,509.53 9,443.12 9,360.00 5,360.00

After 20 years 20 18,899.58 15,818.75 9,480.00 5,480.00

After 30 years 30 38,894.52 42,623.51 9,720.00 5,720.00

After 40 years 40 74,702.41 112,148.14 9,960.00 5,960.00

* 1 therm = 100 cu ft natural gas = 100,000 Btu = 105.5 MJ = 29.3 kWh

Comparative Life-

Cycle Cost Analysis:

�Electric Water

Heater

�Natural Gas Water

Heater

�Solar Water

Heater

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Solar Energy EconomicsCash Flow Analysis for Solar Water Heater

Annual Cost Monthly CostMonthly

Payments

Monthly Cash

Flow Impact

Cost to Operate, $ 1st year 473 39.42 55.51 -16.09

2nd year 501.38 41.78 55.51 -13.73

3rd year 531.46 44.29 55.51 -11.22

4th year 563.35 46.95 55.51 -8.56

5th year 597.15 49.76 55.51 -5.75

6th year 632.98 52.75 55.51 -2.76

7th year 670.96 55.91 55.51 0.40

8th year 711.22 59.27 55.51 3.76

9th year 753.89 62.82 55.51 7.32

10th year 799.12 66.59 55.51 11.09

11th year 847.07 70.59 0.00 70.59

Electric Heater Solar Water Heater w Rebate

Bank loan to pay for SWH: $ 5000

Bank interest: 6%

equal monthly payments for 10 years

The Renewable Energy Act 2008The Main benefits to be given to Renewable Energy developers are:

• Seven year income tax holiday

• Carbon credits generated from renewable energy sources will be free from

taxes. A 10% corporate income tax, as against the regular 30%, is also

provided once the income tax holiday expires.

• Energy self-sufficiency to 60% by 2010 from 56.6% in 2005, by tapping

resources like solar, wind, hydropower, ocean and biomass energy

• Renewable energy facilities will also be given a 1.5% realty tax cap on

original cost of equipment and facilities to produce renewable energy.

• The bill also prioritizes the purchase, grid connection and transmission of

electricity generated by companies from renewable energy sources.

• Power generated from renewable energy sources will be value added tax-

exempt.

• A net metering scheme will give capable consumers the option to

generate their own power. Net metering will allow renewable energy

producers to earn from the power they contribute to the grid, and are also

charged for electricity drawn from the grid.

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RE Act: Market Development

On-grid/Off-grid Development Mechanisms:

• Renewable Portfolio Standard– sets a minimum percentage of generation to be

sourced from eligible RE sources

– contribute to the RE growth

• Feed-in Tariff– guaranteed fixed price for electricity generated from

RE sources for at least 12 years

– only those covered by RPS

• Renewable Energy Market– Submarket of the WESM for trading RE certificates

RE Act: Market Development

On-grid/Off-grid Development Mechanism

• Off-grid RE development

– Minimum percentage of annual generation from available RE resources

– Cash incentive to RE developers for missionary electrification

• Priority and Must-Dispatch for Intermittent RE resources

• Connection facilities for RE-based power

• Payment of ancillary services

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RE Act: Production Stimuli

• Production Incentives– Income tax holiday for 7 years

– Duty-free importation of RE machinery, equipment and materials within the first 10 years

– Net operating loss to be carried over the next 7 consecutive years

– 10% corporate tax

– tax exemption of carbon credits

– Tax credit on domestic capital equipment and services

• Incentives for Feedstock Producers– Duty-free importation and VAT-exemption on all types of

agricultural inputs, equipment and machinery

RE Act: Consumer Empowerment

• Consumption Incentives

– Zero percent VAT on sale of fuel generated from

RE

– Green Energy Option allows end-users to use RE

as their source of energy

– Net metering for RE to allow end-users who

generate their own power to sell to the grid

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ERC approved feed-in tariffs for

renewable energy generation sources

RE Resource Proposed FIT* Approved FIT**

Hydro 6.15 5.90

Biomass 7.00 6.63

Wind 10.37 8.53

Solar 17.95 9.68

*NREB

** ERC (July 2012)

250

250

200

50

10RE Target Capacity Distribution

Hydro Biomass Wind Solar Ocean

TOTAL: 760 MW

Data from: http://www.renewableenergyworld.com/rea/blog/post/2012/07/fit-now-out-in-the-philippines

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Homework

Due: Nov 18, 2013

• For a given capacity, find out and compute the capital and operating costs for a solar water heater, an LPG-based water heater and an electric water heater in the Philippine context.

• Compare the Life Cycle Costs and the Cash Flows.

• Explain your results and their significance to the utilization of solar water heaters here in the Philippines.

End