USH2O Annual Meeting 2012 Orlando - Energyapps1.eere.energy.gov/.../ush2o_annual_meeting_2012.pdf• SEPA’s Solar Thermal Initiatives, Sandra Burton • SEIA’s SHC Initiatives:

USH2O Annual Meeting

Solar Power International September 10, 2012

Orlando, FL

Utility Solar Water Heating Initiative

Welcome

Thanks for joining us!

Cosponsors – SEPA and SEIA

USH2O partners

Other solar heating & cooling stakeholders

Key Partnerships

Utility Solar Water Heating Initiative

Organized in 1992

Mission

To facilitate the successful launch and implementation of utility solar heating and cooling programs

419 Partners

SWH Programs -New Partners

Utilities

NV Energy

Long Island Power Authority

Brant Renewable Energy

Electric & Gas Industries Association

State & City Organizations

Arizona Solar Center

District Department of the Environment

California Center for Sustainable Energy

Solar Thermal Industry -New Partners

Solar Thermal Industry

Insource Renewables

Solar Renewable Solutions

Valverde Energy

BEAM Group

EnerWorks

Johnson Controls

SunEarth

SunReports

SunMaxx Solar

Southern Energy Management

FLS Energy

ThermaSun

Solar Thermal Industry

Amatis Controls

ICF International

Ergsol

Rusforth Solar

Rheem

Cogenra Solar

Industry Support Organizations

IAPMO

SRCC

NABCEP

Admirals Bank

Northeast Region, Solar Instructor Training Network

Services

Utility support for program development and implementation Publications Consulting with program managers

Advocacy for solar thermal initiatives RPS, REC’s – Input to proposed legislation Partnerships to promote solar thermal

DOE, NREL, SEPA, SEIA, SRCC, NABCEP, ASES, IAPMO

Services

Networking and information exchange Monthly conference calls Annual meeting Conference presentations Webinars

Education and Outreach

Publications Website

Partners List Solar Thermal Project Database

Join Us!

Sign “Join USH2O” list on table

Provide a business card

Agenda

• Introductions

• NREL Welcome, Tim Merrigan

• SEPA’s Solar Thermal Initiatives, Sandra Burton

• SEIA’s SHC Initiatives: Saving and Protecting the ITC,

Manning Feraci

• OUC’s Solar Thermal Program Pauline Furfaro, Orlando Utilities Commission

• Unifying Program Design Chris Beebe, BEAM Group

• NABCEP Solar Heating Installer Resource Guide

Ezra Auerbach, NABCEP

• USH2O Wrap-up & Networking

Introductions

Name &

Organization

NREL Welcome

Tim Merrigan

Technical Project Leader

SEPA Initiatives

Sandra Burton

Regional Director, Eastern U.S.

SEIA SHC Initiatives – Saving and Protecting the ITC

Manning Feraci

VP, Legislative Affairs

Orlando Utilities Commission

Pauline Furfaro

Renewables Coordinator

BEAM Energy & Engineering

Chris Beebe

CEO

NABCEP

Ezra Auerbach

Executive Director

Coming Soon…

USH2O Conference Call

Mon. Oct. 8, 3 p.m. Eastern

Solar Today article

Keys to Successful Solar Water Heating Programs

October/November issue

SPI Solar Heating & Cooling Events

Mon., Sept. 10 2:00-4:00pm SEIA annual membership meeting (SEIA members only)-

Convention Center, Room 109AB

5:00pm The State of the Solar Industry opening session- Convention Center, Valencia Ballroom

Tues., Sept. 11 8:30am-10:00am Solar Idea Swap: Solar Training, Workforce

Development and Licensure (with co-speaker Ezra Auerbach, NABCEP)- Convention Center, Room 308A

10:30am-12:00pm Washington Update- Legislation and Regulation that Could Affect You- Convention Center, Room 304E

1:00-4:00pm E44.25 Heat Meter Standard Meeting- Clarion Inn & Suites at International Drive, Manatee/Dolphin Room; pre-registration required; free event; contact James Critchfield ( mailto:[email protected] ) for more info

2:30-4:00pm The Sunshine State or the Unshine State? Florida Solar Market and Policy Issues- convention center, Room 311G

SPI Solar Heating & Cooling Events

Wed., Sept. 12

12:00pm-1:30pm SEIA SHC Division In-Person meeting (SEIA members only)- Convention Center, room 203A

1:30pm-3:00pm An Update on Solar Heating and Cooling- Convention Center, Room 304G

4:00-5:00pm Keynote Speaker: Former President Bill Clinton, Valencia Ballroom

Thu., Sept. 13

10:30am-12:00pm Solar Heating & Cooling: Innovations in Financing and Policy- Convention Center, Room 304A

What’s Next?

Networking – in this room

Copies of NABCEP Solar Heating Installer Guide available

See Vaughan Woodruff

Copies of ENEREF publications available

Contact Information

Chip Bircher

USH2O Coordinator

(920) 498-7100

[email protected]

mailto:[email protected]

R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P 1

OUC’s Solar Thermal Program September 10, 2012

Pauline Furfaro, Renewables Coordinator

2 R E L I A B I L I T Y • A F F O R D A B I L I T Y • E N V I R O N M E N T A L S T E W A R D S H I P

About OUC

• Began serving utility customers in 1923

– Currently serving nearly 225,000 customers throughout

Orange and Osceola counties

• Provides electric, water, lighting and chilled

water services

• Governed by a five-member board that includes

City of Orlando Mayor

• Second largest municipal utility in Florida

• 16th largest in the nation

• Generation capacity of 1,850 Megawatts


OUC’s Renewable Energy Business Objectives

• Balance sustainability with affordability

and reliability

• Provide a hedging strategy against

potential regulatory requirements

through the acquisition of renewable

energy credits (RECs) and carbon

offsets

• Leverage state and federal incentives

offered to encourage the development

of customer-sited assets

• Offer an option to customer requests

for environmentally-friendly energy and

water investments

• Pursue least-cost planning for future

energy and water investments


OUC’s Solar Thermal Pilot Program

• Program was launched in 2007 - available to residential and commercial customers

• Required a Solar Agreement

• Required solar installer to install OUC provided BTU Meter Kit on the solar Thermal system

• OUC provided a $250 credit on customer bill to cover the installation cost of the BTU Meter

• OUC provided a monthly production incentive of $0.03/kWh on customer’s OUC bill

• OUC retained ownership of the Renewable Energy Credits

• Included a solar loan option for residential customers


OUC/OFCU Solar Loan Program

• OUC partnered with the Orlando Federal

Credit Union (OFCU) to provide low

interest solar loan options

– Available to residential customers only

– Available for PV and Thermal projects

– OUC pays a portion or all of the interest

on the loan depending on the loan term


OUC/OFCU Solar Loan Program

Solar Thermal

Systems

(Up to $7,500)

Term Rate

36 Months 0.00%

60 Months 2.75%

84 Months 4.00%

Solar PV Systems

(Up to $20,000)

Term Rate

36 Months 2.00%

60 Months 4.00%

84 Months 4.75%

120 Months 5.50%


Solar Thermal Pilot Program Review

Completed a program review in mid-2011

• Total Participants – 317 – 311 residential

– 6 commercial

• Total Capacity – 836 kW – 659 kW residential

– 177 kW commercial

• Total Solar Thermal Loans – 72 – 23 percent participated in the solar loan

– 8 percent opted to pay loan on OUC bill


What We Found

Internal challenges

• Meter reading errors – Meter Readers were

reading the digits after the decimal point

(like demand meters)

• Billing errors – Reading after the decimal

point caused an exception error in billing

• Lack of control – OUC relied on the installing

contractor to make repairs

• Increase in administrative time – Trouble

shooting and coordinating return trips

• Start-up solar contractors – Increased

negative feedback from customers using

contractors new to the industry and OUC’s

Solar Thermal Program


What We Found (cont.)

External challenges

• Identified an upward trend in meter maintenance calls and cost

• Of the 311 residential participants – 31 percent required field maintenance

• 15 percent due to meter kit failure

• 16 percent due to installation errors

– 3 percent required multiple site visits

• Cost of customer participation – $775 initial cost

– $1,200 initial cost, one maintenance call

– $1,600 initial cost, two maintenance calls


Where We Decided to Go

• Residential customers

– OUC offers an upfront

point-of-sale rebate

– $1,000 rebate for customers who do not

finance with a low interest loan

– $550 rebate for customers who finance

with a low interest loan

– Customer must use an OUC Preferred

Solar Contractor

– No Solar Agreement required

– No BTU Meter Kit required

– OUC’s value of the solar systems shifts

from RECs to conservation credits


How We Got There

• Removal of 338 BTU meter kits

– Contracted with existing Solar Preferred

Contractors to remove OUC equipment

• Remove solar service from all participating

customer accounts

• Buy out the customers’ initial term of the

existing solar agreements (example)

• $1,000 new incentive

• - $300 production credits earned to date

• $700 credit on customers account


How We Got There (cont.)

• Change program to require customers

to select an OUC Solar Preferred

Contractor to participate in the new

solar program

• Train the Solar Preferred Contractors

on the point-of-sale sale and

reimbursement process

• Update marketing material, brochures,

agreements, websites


Where We Are Today

As of today, we have:

• Total participants – 385 – 378 residential

– 7 commercial

• Total capacity – 994kW – 796 kW residential

– 198 kW commercial

• Processed 67 rebate applications totaling $66,550


Lesson’s Learned

• Recognize the need and take action to correct course

• Protect the customer experience

• If using BTU meters and retaining RECs, find a way to manage maintenance in-house

• Pros of the new program – Higher penetration in the first six months

– Improved customer solar experience

– Lower program management costs

• Cons of the new program – Customers lost ability to track production

through BTU meter

– It is now a conservation program and does not count toward our renewables goals


Contact Information

Pauline Furfaro

Renewables Coordinator

Orlando Utilities Commission

[email protected]

www.reliablygreen.com

(407) 434-2104

Unifying Solar Heating Programs

BEAM Energy & Engineering Boston, MA Chris Beebe, PE

[email protected] 781-439-5239

September 10, 2012


BEAM & Solar Heating Industry

• 10 years experience of energy industry experience in utilities, ESCO, and consulting capacities.

• We successfully provide solar heating program consulting and support services.

• We work with customers, program administrators, contractors, and manufacturers all in equal parts.

Presentation Outline

• Why are Unified Solar Heating Programs Important?

• Solar Program Modules

• How do we shift towards “plug and play” Solar Heating Programs?

Prepared by: BEAM Energy & Engineering, www.beamgrp.com

What are Unified Solar Programs?

What is the condition? 50 states, with 1000s of utilities (i.e. potential program administrators), differing programs create ‘micro-markets’ that are usually non-transferrable across states or territories, hindering business growth.

How do we fix it? Create a platform where program components can be optimized, shared, and taken ‘off the shelf’ in a plug and play capacity, and then customized to localized conditions as necessary.


Why Unified Solar Programs?

1. Better Investment for Program Administrators – Faster to market and can control costs better by reducing unknowns and using proven methods.

2. Consistent programs allow for manufacturers and vendors to make consistent investments in their business strategies.

3. Fosters stronger, more consistent, and easier to understand messaging to stakeholders.


Solar Programs Module

Modules May Include…

1. Program Design 2. Construction Incentive Basis 3. Design Reviews and Inspections 4. Workforce Development 5. Sales and Marketing 6. Feasibility / Engineering Studies 7. 100% Project Funding RFPs 8. Continuous Troubleshooting 9. Performance Monitoring Market Transformed


The Case for Comprehensive Programs

1. ‘Trickle-down’ capital construction grants are difficult to direct in complex or nascent industries. There is no magical benefit-to-cost price point or elasticity that has yet been established for solar heating.

2. Address known problems directly. 3. Targeted and integrated program efforts build a

robust foundation by fostering transparency, quantifiable metrics, and flexible options for growth.

4. Communicative leadership allows for industry gains to be shared and reinvested up and down channels.


Program Design

• Understanding market metrics and proper incentive structure • Ensuring participation • Managing costs – including administration, construction and industry grants, and technical consultants • Proper risk management • Long-term market growth strategy • Exit strategy


Construction Incentive Basis

Based on: • % of Project Cost • Monitored Performance • Energy Model • Equipment (performance ratings) •Combination


Primary Benefit Secondary Benefit

Buy down upfront system cost Provide confidence to consumers

that administrating authority supports technology

Design Reviews and Inspections

• Professional support and validation • Capturing issues upstream before construction • Identifies potential liability issues • Code and program compliance • Operating as designed • Integrate inspections with remote monitoring and alerts


Catch design and program requirement issues early

Protect installation investment – Customer and

Program

Workforce Development

• Subsidized entry positions for solar heating companies (i.e. $12.00/hr subsidy for 400 hours)


Decrease risk to company when looking to expand

Provide entry point for individuals into workforce

Sales and Marketing

• Build solar heating company sales and marketing staff before (or in conjunction) with dedicated “marketing firm” efforts.



Find more customers and close sales at a higher rate

Marketing strategy analysis tends to constructively build

out business plans

Feasibility / Engineering Studies

• Large companies are generally risk adverse, complex customers; large projects are inherently risky, engineering studies are needed to bridge that gap • Require hot water monitoring, structural analysis, equipment layouts, and financial analysis of project





Identifying critical issues prior to

contract, sizing system accurately.

Best method to direct market towards sophisticated or

complex customers


Small Medium Large Very Large

Customer Load Hot Water / Yr (therms) 500 5,000 50,000 500,000 Produced Savings by SHW (therms) 175 2,100 26,000 315,000

Feasibility Study Cost $2,500 $5,000 $10,000 $15,000 Likelihood of Moving to Construction - Gas 10% 10% 10% 10%

Cost of $ feasibility / therm $78.46 $13.077 $2.112 $0.261

• With proper customer screening criteria, feasibility funding can be one of the most cost effective program investments • Customer or targeted load size can have bigger impact on program cost-effectiveness than fuel displaced.

In Massachusetts: 43 customers, totaling over 21 million therms of annual usage, had studies funded. This translates to $100 million in potential solar heating projects if only 10% gets constructed.


• 80/20 Rule – 80% of energy savings will be from 20% of projects...

100% Project Funding - RFP

• Design, Bid, Construction Manage, Track Performance • Bidding process accelerates contractor development (even if companies don’t respond, RFPs are still being read). • Ensures competitive bidding and high quality projects • Gains market traction and new institutional customers • Builds existing and new contractor experience base in safer environment


Reviewing Bids


• Eliminate missed components • Can compare and understand bids more easily • Allows for independent component cost analysis • Reduce change orders • Compare apples to apples • We have solicited over 110 detailed bids

Continuous Troubleshooting

a. Resolves operational issues identified with remotely accessible performance monitoring system

b. Increases delivered energy through continuous monitoring and alert system by ensuring uptime

c. Improves cost effectiveness of program by achieving more claimed savings



Is system on and is it generally functioning as

expected?

Protect Investment – Customer and Program

Performance Analysis


• Continually adding projects to our aggregate database • Larger sample size improves significance of data set

Troubleshooting / Resolutions

• Investing in monitoring and ongoing analysis: • Sample size - 19 projects • In last 2 months - 3 projects non-operational • 15.8% major issues rate (non-operational) • Average system cost - $131,578 • Average failure rate * system cost = Value of Monitoring • $20,775/project average for this data set

• Therefore, projects should have monitoring and it should be tracked in a centralized and accountable way.



• Ensuring system producing energy as expected. • Indicating and understanding abnormal operations. • Supports program evaluation and determination of incentive structures (i.e. SRECs). Compare:

1. Energy model 2. Monitored production & consumption 3. Utility bills 4. SRCC estimations (for comparative purposes only)



Method Description Example

A. Partially Measured Retrofit

Isolation

Savings are determined by partial field

measurement of the energy use of the system(s)

to which an ECM was applied, separate from the

energy use of the rest of the facility.

Measurements may be either short-term or

continuous.

Continuous Performance Monitoring,

Indirect with Assumed Variables

i.e. Energy Input to Storage Tank, with

assumed standby, heat exchanger, and

balance of system losses.

B. Retrofit Isolation Savings are determined by field measurement of

the energy use of the systems to which the ECM

was applied, separate from the energy use of the

rest of the facility. Short-term or continuous

measurements are taken throughout the post-

retrofit period.

Continuous Performance Monitoring,

Direct

i.e. Energy Directly Input to Hot Water

Load plus

C. Whole Facility Analysis of whole facility utility meter or

sub-meter data using techniques from simple

comparison to regression analysis.

Utility Bills

i.e. Comparing summertime fuel usage

year over year

D. Calibrated Simulation Energy use simulation, calibrated with hourly or

monthly utility billing data and/or end use

metering and/or operational conditions

TSOL, or similar Energy Model

i.e. Input

“The framework will draw off the International Performance Measurement & Verification Protocol (IPMVP). The IPMVP defines approved general procedures to achieve reliable and cost-effective determination of savings in energy and water efficiency or conservation projects. This method is the accepted and practiced protocol in the ESCO and performance contracting fields.”

Next Steps

• Industry to provide input solar heating program platform • Program Administrators contact me at [email protected] or Jen Taylor at [email protected]

Program Module Criteria

Program Design Off the Shelf Components + Local Factors

Construction Incentive Basis Energy Model + Continuous Monitoring

Workforce Development On the Job Training Subsidies

Sales and Marketing Competitive Industry Grants

Feasibility / Engineering Studies Fund Engineering Grants Focused on

Large Customers

100% Project Funding & RFPs Design, bid, manage, track

Design Reviews and Inspections First two each installer + random

Continuous Troubleshooting All projects

Performance Monitoring Continue to Build Database



Questions

BEAM Energy & Engineering Boston, MA

Chris Beebe, PE [email protected]

781-439-5239


BEAM Engineering

Copyright BEAM Engineering 2012

NABCEPSolar Heating Programs

and ResourcesSolar Power International

Orlando, Florida

September 2012

Sunday, September 9, 2012

Ezra Auerbach, Executive Director of NABCEP• I have a long and varied career in the

renewable energy industry. • Been involved with NABCEP since it’s

inception.• I have enjoyed the

benefits of solar heatingfor more than 25 years.


Agenda• NABCEP Solar Heating Programs

• NABCEP Solar Heating Resources

• Questions


Certified Solar Heating Installer• The “Gold Standard” for solar heating

installation professionals.• Offered since 2006.• 271 Certified Solar Heating Installers• All candidates must demonstrate

prior Solar Heating installationexperience to qualify to takethe exam.


Solar Heating Installer•These renewable energy professionals are

responsible to ensure that SH systems are specified correctly for local climatic conditions along with safe and professionally installation practices.


NABCEP Certified Installers are in high demand –

“ I am more likely to get a job over someone without the NABCEP certification. More job requests now call for NABCEP certification up front.”

Jessica Baldwin, Solar Plumbing Design


The Job Task Analysis covers six topic areas:• Prepare for the Project• Evaluate the Site• Plan System Installation• Install the System• Commission the System• Service and Maintain

the System


Solar Heating Entry Level• A new program launched this year.• Offered by more than 30 educational

organizations.• Aimed at individuals entering or

transitioning into the SHindustry.

• NOT Installer “light.”


The Learning Objectives cover six content areas• Conducting a site analysis

including a load Analysis.• Identifying SH safety practices,

standards, codes and certifications.

• Identifying systems for specific climates and applications.


The Learning Objectives cover six content areas• Identifying proper operation and installation

techniques• Identifying the proper use

of BOS components and materials

• Identifying common SH maintenance items


NEW - Solar Heating Resource Guide

• Helps Candidates prepare for the exam• Used by educators for study

resources in both SH Installer and EL Programs

• Authored by Chuck Marken andVaughan Woodruff

• Edited by Les Nelson• An “all star” cast of expertise


NEW - Solar Heating Resource Guide

• Distributed at no charge on the NABCEP website.

• Supported, in part, by sponsors who receive the opportunity to place advertisements.

• We need more sponsorsplease contact me if youwould like to help.


NABCEP Continuing Education Conferences• CE Credits are required for recertification• Conferences offer opportunity for

Certificants to receive high quality CE training.

• Offer manufacturers a great way to reach extremely qualified potential customers.


Two CE Conferences in 2012 • March 8-11 in Sacramento CA• Aimed at PV and SH

certificants • April 2012 (date TBD) in

New York• Aimed exclusively at the

SH Industry!• Want to take part?• Present, train, exhibit?



Contact InformationEzra AuerbachExecutive [email protected]

1 800 654 002156 Clifton Country Road Clifton Park, NY 12065




Documents

USH2O Annual Meeting 2012 Orlando - Energyapps1.eere.energy.gov/.../ush2o_annual_meeting_2012.pdf• SEPA’s Solar Thermal Initiatives, Sandra Burton • SEIA’s SHC Initiatives: