renergyco: solar pv for commercial properties
TRANSCRIPT
SOLAR ELECTRIC GENERATING
SYSTEMS FOR
COMMERCIAL PROPERTIES
Ian Diamond
Solar Power Consultant
RenergyCo, LLC
©Copyright 2010, Ian Diamond (914) 419-3134. Please contact author for permission to reproduce in part or full.
AUGUST 14TH, 2003
Northeast Blackout of 2003
8 States + Southeastern Canada
50 Million people lost power
Cause Factors: Grid Faults and Grid
Overload
MEETING FUTURE ELECTRICITY LOAD Load Growth expected of 1.05%
annually to 2030
Increase electricity generationPower Plants
Clean Coal Nuclear
Renewable Energy Wind Solar
WHAT IS SOLAR ENERGY? Solar Electric Generating System
aka: Solar Power aka: Solar PV
Photo-VoltaicProducing electricity from light
Solar Thermal E.g.: Solar Hot Water
Utilizing energy from heat
WHY SOLAR POWER? Increasing Energy/Electricity Demands Unlimited Resource. cf: fossil fuels Distributed Generation. cf: Transmission
costs and infrastructure Maximum production during peak
demand Helps Utility Energy Management Clean. cf: Gas, Clean Coal, Nuclear NIMBY or YOYR (Yes, On Your Roof) Eventual Unsubsidized Grid Parity
ROOFTOP SYSTEMBayonne School System 87.5kW
MOUNTING OPTIONS Rooftop
Flush Mounted, Affixed (typical single-family residential)
Tilt-mounted, ballasted (typical flat roof)Tilt-mounted, affixed (flat roof)
GroundGround or pole-mountBallasted (paved areas)
Car Port StructureParking lots – Solar Car Ports
ROOFTOP SYSTEMBayonne School System 158kW
ROOFTOP SYSTEMNorth Bergen School 355kW
BALLASTED ROOFTOP SYSTEMNesquehoning PA - 700kW
GROUND MOUNT SYSTEMMarlboro Township Water Department 600kW
SOLAR CANOPIESWilliam Paterson University, Wayne, New Jersey
SOLAR CANOPIESCalifornia
ROOFTOP PREFERENCES Facing true south (+/- 60°) Pitch: 0°- 45° (Optimum Production:
35°) No obstructions
Off roof: no trees, taller buildings, higher walls
On-roof: Parapet walls, bulkheads, HVAC equipment,
vents
Roof Life: 15+ years No structural load issues
TYPICAL SYSTEM Crystalline Panels Roof mounted / Ground mount Grid-tied (no batteries) Fixed mounting (no rotation) Net Metered Distributed Generation (On-site)
SYSTEM SIZING Flush Roof Mount
Example: single-family residential pitched roofsouth facing, unobstructed, 500sf
12W-13W / square foot = 6kW Solar PV system
Tilt Roof MountExample: commercial or multi-family flat
roofunobstructed, 6000sf
8W-10W / square foot= 48kW Solar PV system
PRODUCTION VALUE 1kW Solar PV produces approximately
1200 kWh per year5kW = 6,000 kWh/year50kW = 60,000 kWh/year
Avoided Electricity CostCon Edison @ $0.18 - $0.24/kWh Escalating electricity costs > 5% annually
System Life: 30+ years
SYSTEM COST Variables
System SizeLocation Building HeightFlush/Tilt;Ballasted/Affixed
Residential: $5.50-$6.50/Watt Commercial: $4.25-$5.25/Watt (excluding NYC)
TECHNOLOGY & FUTURE IMPROVEMENTS Mature technology of 30+ years
development and production Small incremental improvements
Smaller Tolerances Inverter efficiency improved
Improvements & ApplicationsWider applications
Thin-filmPart of roof membraneSolar walls
Building Integrated PV (BIPV) – solar shingles Transparent panels Solar Canopies (Car ports, etc)
MAINTENANCE Occasional cleaning (bi-annual) Remote Performance Monitoring No moving parts Annual system check
Electrical wiring InverterPanels
30+ year system life Inverter replacement (15 years ?) Roof membrane accessible
EVALUATION & PROJECT PROCESS• Preliminary consultation - identifying client needs &
interest, informing client on the economics of solar including all incentives
• Analysis of client electricity usage & cost, and solar electricity production potential of site
• Detailed Proposal with complete costs, production value, and complete breakdown of incentives including all applicable rebates, tax credits and production-based incentives
• Complete Solar Project from applications to interconnection and including all permitting, engineering & complete installation and integration.
SOLAR IS SIMPLE
• Feasibility Analysis.
• Contract signing with deposit
• Permitting, Design & Engineering. 3 Months
• Installation. 1-2 Months
• Electricity Production. You’re producing your own electricity for 25+ years.
QUESTIONS?Solar Feasibility & Analysis
Ian DiamondSolar Power Consultant
(914) 419-3134RenergyCo, LLC
www.RenergyCo.com
©Copyright 2010, Ian Diamond (914) 419-3134. Please contact author for permission to reproduce in part or full.
EXAMPLE: 50 KW MULTI-FAMILY RESIDENTIAL SYSTEM – NYC
Gross System Cost ($7/W) $350,000
NYSERDA Rebate ($1.75/W) -$87,500 25%
Federal Grant/Tax Credit (30%) -$105,000 30%
State Tax Credit (25% of rebated cost, $5,000 cap per owner)
-$65,625 18.75%
NYC Property Tax Abatement (35% of rebated cost)
-$91,875 26.25%
Total Net Cost after incentives $0
Annual avoided electrical costs (@ $0.20/kWh)
$12,000
SOLAR ELECTRIC GENERATING SYSTEMS - CONCLUSION Solar utilizes underused property
(rooftops, parking lots, etc) to provide on-site electricity
Solar Distributed Generation (On-site, Behind the meter) provides localized electricity – no extra burden on transmission infrastructure
Solar PV is extremely important component to help us meet increasing global electricity needs
EXAMPLE: 200KW COMMERCIAL SYSTEM – NEW JERSEY (WITH PSE&G SOLAR LOAN)
Gross System Cost ($5.25/W) $1,050,000
Federal Grant (30%) -$315,000
Net System Cost $735,000
PSE&G Solar Loan -$588,643
Net Investment Required $146,357
Annual avoided electrical costs (year 1)(@ $0.15/kWh)
$34,220
Payback: 2-4 Years
Rate of Return: > 20%
INCENTIVES (CONT’D) State - New Jersey
Rebate Program closed
Solar Renewable Energy Certificates (SREC’s) – Production Credits sold to Load Serving Entities (LSE’s). Current Market Value: $650/SREC (= $0.65/kWh) SREC Life – 15 years
Utility Funding Incentives PSE&G Solar Loan Program
50-60% of Project Cost paid by assigning SREC’s to PSE&G
JCP&L, ACE: SREC-based financing 10-15 year contract to purchase SREC’s
average contract value: $424/SREC for 10 years
INCENTIVES (CONT’D) State – New York
Personal Tax Credit 25% of Net System Cost (after Rebate) up to $5,000 (multi-family – each apartment owner eligible for up to
$5,000)
New York City Property Tax Abatement
35% of Net System Cost (after Rebate & Grant) – 2010 20% of Net System Cost (after Rebate & Grant) – 2011-
2012
Municipal Property Assessed Clean Energy (PACE) Financing
INCENTIVES Federal
30% of Gross System Cost Commercial: Investment Tax Credit
2010 available as a Grant. Residential: Personal Tax Credit (30% of rebated
cost) 5 year MACRS
Accelerated Depreciation
State – New York NYSERDA Rebate
$1.75/Watt up to 5kW Residential $1.75/Watt up to 50kW Commercial Per metered account