Solar Energy in MarylandNovember 2014

Presented by:Hans Wittich

PresidentSolargaines

COURSE AGENDA

1. Theory Overview• Environmental movement• Economic movement

2. Solar in Maryland• Incentives and climate• Strong growth

3. Case Study• How does it work• Design considerations• Installation• Monitoring of system• Financial Analysis

4. Interactive discussion

What will be learned 1. How it works

2. Four design principals• Orientation• Tilt• Shading• Weather / geographic

3. Installation and monitoring

4. Economics• Costs• Electricity savings• Tax benefits• Incentives

An oil spill is called a tragic environmental disaster…

A solar spill is just called a really nice day!!!

1. Theory Overview

Why Solar? Unlimited and sustainable resource

Clean power is included in the future of energy generationMany states have adopted “Renewable Portfolio Standards”

Taking responsibility for the futureCurrent circumstances present unprecedented opportunity to “do good” and “do well,” the proverbial “double dividend”

THE FUTURE IS NOW

30,000 ft view of renewables

• The way that we currently deliver power is, from an economic and environmental perspective, unsustainable. Period.– Dependent on limited resources – Environmentally damaging – Wasteful; concentrated generation vs. distributed generation

Solar in Maryland

1. Political Willpower• RPS/Net Metering• Federal stimulus• Sustainability

mandate2. Favorable conditions

• Sun hours per day3. Attractive economics

• Good incentives• Rising rates• Lower costs

First LEED Platinum home in Baltimore

Market trends

Case StudyDistribution Services Company

2. Basics•How does it work•Design Phase/technology overview•Installation and monitoring of system•Economic Review

How does it work?

• Technology is relatively simple and has been around since the 1960’s• Points of potential failure are minimal with few moving parts (Panels,

Inverters and Balance of System)• No Batteries (net metering)• The Panels (or Modules) have warranties to perform for 25 years; some

systems placed in service in the 1970’s are still producing power

Suitable locationFour Main Design Principals

• Azimuth / orientation• Tilt / pitch (latitude on earth)• Shading analysis• Weather Patterns (avg sun hours per day) insolation maps

Azimuth / orientation

Compass Azimuth (deg)

True Azimuth (deg) Direction Scaling Factor

91.12 80 0.7216

101.12 90 East 0.7683

111.12 100 0.813

121.12 110 0.8547

131.12 120 0.8925

141.12 130 0.9255

151.12 140 0.9531

161.12 150 0.9747

171.12 160 0.9899

181.12 170 0.9984

191.12 180 South 1

201.12 190 0.9948

211.12 200 0.9827

221.12 210 0.9642

231.12 220 0.9394

241.12 230 0.9089

251.12 240 0.8733

261.12 250 0.8335

271.12 260 0.7901

281.12 270 West 0.7443

Tilt / PitchTilt Angle (deg) Scaling Factor

0 0.8577

5 0.8957

10 0.9278

15 0.954

20 0.9744

25 0.9888

30 0.9973

35 1

40 0.9968

45 0.9876

50 0.9726

55 0.9517

60 0.9249

65 0.8922

70 0.8536

75 0.8091

80 0.7587

85 0.7024

90 0.6403

Shading Analysis

Insolation Maps

Racking / layout design• Inverter design• Roofing attachments for

pitched roof (shingle or metal) and flat roof.

• Balance of system / electrical engineering – Service size constraints

Appropriate panel/inverter design

Panel types – output characteristics• Poly and Mono Crystalline silicon• Thin Film CIGS• Building integrated – roof shingles, wall systems

Examples

Installation of system

Monitoring of system

Financial Analysis

Incentives / Returns

1. Tax Advantagesa. Federal Income Tax Credit

• 30% of total cost (including site preparation)b. Modified Accelerated Cost Recovery System (MACRS)

depreciation (commercial projects only)• NPV of depreciation is taxes avoided

2. Savings / Revenue Benefita. Annual Electricity Savings (Net Metering)

• kWhr X total rate (supply+distribution+transmission+tax)b. Solar Renewable Energy Certificates (SRECs)

• Renewable Portfolio Standard (RPS)• Spot Market vs Forward Contract

Structuring considerations

1. Corporate, LLC or solar proprietor?• Tax rate of entity or members• Where is tax liability?• Passive income issues

See Spreadsheet for Analysis

Contact us if you have any questions or interest in learning more

Solar Gaines10616 Beaver Dam Rd.Baltimore, MD 21030

410.785.1760www.solargaines.com