solar for your home and business

Solar for your Home and Business

Earth Wind and Fire Energy SummitAddison Texas

October 4, 2014

Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

• Independent consulting firm specializing in renewable energy, particularly distributed generation

• Services

• Clients

• Renewable energy programs• Education and training• Project development• Technical and market analysis• Advocacy

• End-use energy consumers, Engineering and construction firms, Clean energy project developers, Utilities, Government agencies, and Regulators

Clean Energy Associates

3

• Top distributed solar installer in Texas with offices in DFW+Austin+San Antonio

• Successful contractor for recent Solarize Garland project

• Goal: To be the be the best installer of the best solar equipment at the best prices for the best customers in Texas

Our Recent Growth:2009 – 32 kW 2010 – 104 kW 2011 – 242 kW 2012 – 1134 kW 2013 – 1676 kW 2014 – 2024 kW YTD


How Solar Integrates with a Home or Business


Solar Panel Technologies


Types of Solar Cells• Crystalline Silicon (~88% of worldwide market)

– Poly (~60%)– Mono (~18%)

• Thin Film (~10%)– Cadmium Telluride (Cd-Te, ~5%)– Copper Indium Gallium Diselenide (CIGS ~2%)

• Multi-junction, Nanocrystal, Organic, Plastic, Polymer, Quantum Dot, etc. (~2%)

Advice• Don’t get too caught up in

the latest developments and industry press

• Best selling technology is so because it’s bullet proof

• Longest warranties of any product (25 years) means you should look to strong companies with proven track records

• And for good values

• Stand-Alone or String Inverter• Benefits – access, simplicity, strong track record, low cost• Drawbacks – slightly less efficient under certain circumstances, less granular performance data

• Microinverters and AC Modules• Benefits – slightly more efficient

under certain circumstances, highly granular performance data

• Drawbacks – access, higher cost, finicky data integration

• DC Optimizers• Benefits – slightly

more efficient under certain circumstances, highly granular performance data

• Drawbacks – access, higher cost, finicky data integration

Common Inverter Technologies


Advice• Don’t get too caught up

in the latest developments and industry press

• Best selling technology is so because it’s bullet proof

Using Solar Energy


• Solar electricity feeds to home on your side of the utility electric meter• It flows to wherever it’s needed – lights, appliances, etc.• Utility-provided electricity will supplement to match your needs• If you’re generating more than you’re using, energy flows back to the utility

Advice• Use it any way you like• Be aware of contractual

relationships regarding “green” or renewable energy credits


Inflow-Outflow Metering (competitive market, most common in DFW area)

• Wires company meters inflows and outflows separately, passes data to retailers for billing

• Retailers have no obligation to purchase or credit customer for outflows

• Green Mountain Energy, TXU, and Reliant, and have buyback offers for residential customers

• http://www.powertochoose.org/en-us/Content/Resource/Selling-Renewable-Power

Net Metering (many coops and munis)• Value (full retail, wholesale energy), rollover policiesValue of Solar (Austin only, so far), FiT or PPA (someday)• VOS: Utility charges you for all your consumption, regardless of

whether it came from your solar or their wires; utility then credits you for all solar production, regardless of whether you used it in your home or exported it as excess energy to the grid

• FiT/PPA: Utility contracts directly with customer for solar production

Realizing Value for Solar Energy


The US Solar Market is Growing Rapidly…

…and Growth is Becoming More Widespread

Solar Prices are Declining…

U.S.

…and areRelatively

Lowin Texas

Texas



Grid Parity…

At $3.22/w-dc with no incentives

http://www.ilsr.org/projects/solarparitymap/


Grid Parity…

At $3.22/w-dc with 30% Federal ITC

http://www.ilsr.org/projects/solarparitymap/

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

Jan-

08M

ay-0

8Se

p-08

Jan-

09M

ay-0

9Se

p-09

Jan-

10M

ay-1

0Se

p-10

Jan-

11M

ay-1

1Se

p-11

Jan-

12M

ay-1

2Se

p-12

Jan-

13M

ay-1

3Se

p-13

Jan-

14M

ay-1

4Se

p-14

Jan-

15M

ay-1

5Se

p-15

Jan-

16M

ay-1

6Se

p-16

Ince

ntive

Leve

ls O

ffere

d, $

/w-d

cTexas Investor-Owned Utility Solar Incentive Levels

AE ResOncor Res Oncor CommEntergy Res Entergy CommTNMP Res TNMP CommAEP-TCC Res AEP-TCC CommAEP-TNC Res AEP-TNC CommSWEPCO Res SWEPCO CommEPE Res EPE Comm

Solar Incentives are Declining…

U.S.

Texas


30% Federal ITC expires at the end of 2016 unless extended

Key Drivers of Customer Decisions

Motivations for Going Solar• Environment, legacy,

interest/hobby, network/peer effects, independence, conservation theology, simple economics

• Economics – Price of solar – Price of traditional power

(current and forecasted)– Asset and property value– Value of money– Incentives and tax credits

(Utility rebates, federal tax credit)

Constraints

• Cash or credit rating• Electricity usage• Available roof area• Shading• Alternatives to solar


Buying Solar• Cash – most common in Texas,

straightforward purchase, cash payment then tax credit

• Loan – can help match payment flow to energy bill reduction, customer owns the system

• Lease – can help match payment flow to energy bill reduction, third party owns the system

• Others (PPA, ESPC, PACE)

The “10-2-10 rule of thumb” (for cash only)

• 10c/kWh electricity price• + $2/w-dc net installed cost of solar (after

rebates, tax credits, etc.)• Yields 10 year simple payback


Choosing a Solar Company• Quality/Thoroughness of Bid• Credentials and Experience

• Licensed electrical contractor• NABCEP certified installers

• Knowledgeable/Attentive Sales Staff• Online Reviews

Going Solar

Sample Economics – Oncor 2014


Oct - May June - Sept

$ per kWh $ per kWh

Tier 1 0-500 kWh $0.100 $0.100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Tier 2 501-1,000 $0.100 $0.100 515 525 635 605 615 625 670 670 620 630 510 470

Tier 3 1,001-1,500 $0.100 $0.100

Tier 4 1,501-2,500 $0.100 $0.100

Tier 5 Over 2,500 $0.100 $0.100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Fuel Charge $0.000 $0.000 601 512 497 548 669 1012 1271 1341 1322 1000 558 555

REP Base Monthly Charge 0.00 0.00

System Size (kW) 5.0 5

System Base Cost (no adders) $15,250 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

System Produces (kWh per year) 7090 $60.10 $51.15 $49.70 $54.84 $66.94 $101.20 $127.09 $134.11 $132.23 $100.00 $55.83 $55.45Energy Offset 72%ONCOR Rebate -$5,450 -$5,450Longhorn Solar Cash Discount -$750Out of Pocket Cost $9,050

30% Federal Tax Credit -$2,715Net Cost (after Rebates/Credits) $6,335Annual Solar Savings $709.00Estimated Payback (Years) 8.94

Financed Down Payment $1,550.00Financed Est. Monthly Payment $58.94Net Monthly Savings (Cost) $0.14

TILT 30

Your Energy Consumption by Month

Estimate using Greensky 7.99% 12 year for net cost.

Energy Use (kwh) System Production By Month Per PVWATTS (v1.0)

ONCOR R.E.P. Rate (Generalization) System Size(watts) 5000 Area of Solar (sq ft) 455

# of Panels 20 Watts/Panel 250

Estimated R.E.P. Billing (for sample purposes only)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Consumption 601 512 497 548 669 1012 1271 1341 1322 1000 558 555

Production 515 525 635 605 615 625 670 670 620 630 510 470

0

200

400

600

800

1000

1200

1400

1600

Kil

ow

att H

ou

rs (k

Wh

)

For sample purposes only – not a quotation!• System offsets 72% of customer’s electricity usage• $6,300 net cost after rebates and tax credits• Financed $1550 down yields net zero cash flow

(monthly savings = monthly payment)


Some Final Thoughts

Policy and Incentives• Tweaking the Economics

– Rebates– Tax credits– Rate structures– Financing

• Removing Barriers to Competition– HOA rules– Solar access– Consistent, predictable, efficient

permitting processes• Big Questions and Issues

– Declining incentives– Increasing electricity prices– Utility rate structures– Utility participation model

Steve WieseClean Energy Associates

(512) [email protected]

Steve WieseLonghorn Solar(512) 837-4800

[email protected]

mailto:[email protected]

mailto:[email protected]

solar for your home and business

Documents

longhorn solar

texas solar

solar recs

best solar equipment

distributed solar installer

future of solar incentives

solar incentive programs

frontier associates