Is Solar Right for Me?Is Solar Right for Me?

Neil Kaminar

June 15, 2010

Neil Kaminar

June 15, 2010

Neil KaminarContact Information

Neil KaminarContact Information

www.thesolardesignbook.com

Portion of photos courtesy of the National Renewable Energy Laboratory (NREL) No affiliation with NREL

www.thesolardesignbook.com

Portion of photos courtesy of the National Renewable Energy Laboratory (NREL) No affiliation with NREL

Is Solar Right for Me?Is Solar Right for Me?

Why should I install solar on my house? Can I sell the power to the utility

company? Doesn’t it cost a lot? Do I need a basement full of batteries? Won’t it look funny on my roof? Is funding available? How do I get started?

Why should I install solar on my house? Can I sell the power to the utility

company? Doesn’t it cost a lot? Do I need a basement full of batteries? Won’t it look funny on my roof? Is funding available? How do I get started?

Two Solar Types, Thermal and Electric

Two Solar Types, Thermal and Electric

Solar thermal heats water for domestic use

Solar thermal heats water for domestic use

This Talk is About Solar Electric

This Talk is About Solar Electric

Solar electric makes electricity using solar cells

Solar electric makes electricity using solar cells

Solar ElectricSolar Electric

Also known as photovoltaics or PV Makes direct current (DC)

Like a battery Only makes electricity when the

sun is shinning More sun, more currentDoesn’t store electricity

Also known as photovoltaics or PV Makes direct current (DC)

Like a battery Only makes electricity when the

sun is shinning More sun, more currentDoesn’t store electricity

2.5 KW in Glastonbury, Connecticut2.5 KW in Glastonbury, Connecticut

Average System SizeAverage System Size

Average 2,000 sq ft house Uses10,000 KWh of electricity per year

5.7 KW system (rated power) Makes 10,097 KWh of electricity per year

Depends on many factors $24,000 just for modules (4.21 $/W)

Before any credits or rebates www.solarbuzz.com/moduleprices.htm www.energy.ca.gov/distgen/equipment/photovoltaic/

cost.html

Average 2,000 sq ft house Uses10,000 KWh of electricity per year

5.7 KW system (rated power) Makes 10,097 KWh of electricity per year

Depends on many factors $24,000 just for modules (4.21 $/W)

Before any credits or rebates www.solarbuzz.com/moduleprices.htm www.energy.ca.gov/distgen/equipment/photovoltaic/

cost.html

Factors that Effect OutputFactors that Effect Output

Orientation (south facing best) Tilt (about 40 degrees best here in NC) Location (Sunbelt is best) Temperature (lower is better) Shadowing (no shadows best) Soiling (keep it clean) Efficiency of inverter (about 95%) Age of system (less than 1% loss per year) Wiring losses (typically 3%)

Orientation (south facing best) Tilt (about 40 degrees best here in NC) Location (Sunbelt is best) Temperature (lower is better) Shadowing (no shadows best) Soiling (keep it clean) Efficiency of inverter (about 95%) Age of system (less than 1% loss per year) Wiring losses (typically 3%)

6 KW in Purcellville, Virginia6 KW in Purcellville, Virginia

Grid-Tied or Stand-AloneGrid-Tied or Stand-Alone

Grid-tied are connected to the grid Most common application today Excess power goes to grid for use by neighbors System will NOT work during power outage

Special systems operate during power outages

Stand-alone are not connected to the grid Batteries store the energy

Night Cloudy days

Grid-tied are connected to the grid Most common application today Excess power goes to grid for use by neighbors System will NOT work during power outage

Special systems operate during power outages

Stand-alone are not connected to the grid Batteries store the energy

Night Cloudy days

Grid-tied Buy-all/Sell-all

System

Grid-tied Buy-all/Sell-all

System

Home owner buys power used by home

Home owner sells power made by solar system

Home owner buys power used by home

Home owner sells power made by solar system

Inverter Changes DC to ACInverter Changes DC to AC

Why Should I Put Solar On My Roof?

Why Should I Put Solar On My Roof?

Could save you moneyGenerates income

Will help the environment Improved property value Will reduce the dependence on oil

and coal Will help the foreign trade balance

Could save you moneyGenerates income

Will help the environment Improved property value Will reduce the dependence on oil

and coal Will help the foreign trade balance

Can I Sell the Power to the Utility Company?

Can I Sell the Power to the Utility Company?

Option 1, Duke Energy buys excess energy

Option 1, Duke Energy buys excess energy

QuickTime™ and a decompressor

are needed to see this picture.

Eliminates or reduces bill and sells any excess

Can I Sell the Power to the Utility Company?

Can I Sell the Power to the Utility Company?

Option 2, Duke “banks” excess energy

Option 2, Duke “banks” excess energy

QuickTime™ and a decompressor

are needed to see this picture.

Eliminates or reduces bill

Can I Sell the Power to the Utility Company?

Can I Sell the Power to the Utility Company?

Option 3, Buy-all / sell-all Option 3, Buy-all / sell-all

QuickTime™ and a decompressor

are needed to see this picture.

Sell all at high rate, buy at normal rate

What is NC GreenPower?What is NC GreenPower?

http://www.ncgreenpower.org/ Independent, nonprofit organization Funded by voluntary contributions

Private individuals Companies 48 North Carolina Utilities

Buys REC’s (Renewable Energy Credits) Currently 15 ¢/KWh

http://www.ncgreenpower.org/ Independent, nonprofit organization Funded by voluntary contributions

Private individuals Companies 48 North Carolina Utilities

Buys REC’s (Renewable Energy Credits) Currently 15 ¢/KWh

NC GreenPowerNC GreenPower

Owner sends in copy of utility statement NC GreenPower pays within 30 days Prefers to pay quarterly

Owner sends in copy of utility statement NC GreenPower pays within 30 days Prefers to pay quarterly

Can I Sell the Power to the Utility Company?

Can I Sell the Power to the Utility Company?

Buy-all / sell-all option Green Energy NC pays 15 ¢/KWh (REC)

http://www.ncgreenpower.org/types/form/index.php

Duke Energy pays average 7 ¢/KWh http://www.duke-energy.com/customer-owned-gene

ration/nc-gen-rate-options.asp

Federal credit 2.1 ¢/KWh http://www.dsireusa.org/incentives/incentive.cfm?In

centive_Code=US33F&re=1&ee=1

You sell energy at 24.1 ¢/KWh You buy energy at 8.5 ¢/KWh

Buy-all / sell-all option Green Energy NC pays 15 ¢/KWh (REC)

http://www.ncgreenpower.org/types/form/index.php

Duke Energy pays average 7 ¢/KWh http://www.duke-energy.com/customer-owned-gene

ration/nc-gen-rate-options.asp

Federal credit 2.1 ¢/KWh http://www.dsireusa.org/incentives/incentive.cfm?In

centive_Code=US33F&re=1&ee=1

You sell energy at 24.1 ¢/KWh You buy energy at 8.5 ¢/KWh

What Determines Sell RateWhat Determines Sell Rate Rate schedule at http://www.duke-

energy.com/pdfs/ncppnh.pdf Option A, 5-year rate to Distribution System

On peak 6.33 ¢/KWh Energy Credit 2.72 ¢/KWh Capacity Credit June-September & December-March M-F 7 AM - 11 PM

Off peak 4.64 ¢/KWh Energy Credit 0.54 ¢/KWh Capacity Credit

Rate schedule at http://www.duke-energy.com/pdfs/ncppnh.pdf

Option A, 5-year rate to Distribution System On peak

6.33 ¢/KWh Energy Credit 2.72 ¢/KWh Capacity Credit June-September & December-March M-F 7 AM - 11 PM

Off peak 4.64 ¢/KWh Energy Credit 0.54 ¢/KWh Capacity Credit

What Determines Sell RateWhat Determines Sell Rate Option B, 5-year rate to Distribution System

On peak 6.63 ¢/KWh Energy Credit 9.58 ¢/KWh Capacity Credit June 1 through September 30

M-F 1 PM - 9 PM Other months

M-F 6 AM - 1 PM Off peak

Other hours, weekends, and holidays 5.12 ¢/KWh Energy Credit 1.48 ¢/KWh Capacity Credit

Option B, 5-year rate to Distribution System On peak

6.63 ¢/KWh Energy Credit 9.58 ¢/KWh Capacity Credit June 1 through September 30

M-F 1 PM - 9 PM Other months

M-F 6 AM - 1 PM Off peak

Other hours, weekends, and holidays 5.12 ¢/KWh Energy Credit 1.48 ¢/KWh Capacity Credit

More Information from Duke Energy

More Information from Duke Energy

Solar Energy FAQ http://www.duke-energy.com/pdfs/

customer-generation-solar-energy-faq.pdf Project Check List

http://www.duke-energy.com/pdfs/checklist-nc.pdf

Customer Owned Generation Homepage http://www.duke-energy.com/customer-

owned-generation/nc-main.asp

Solar Energy FAQ http://www.duke-energy.com/pdfs/

customer-generation-solar-energy-faq.pdf Project Check List

http://www.duke-energy.com/pdfs/checklist-nc.pdf

Customer Owned Generation Homepage http://www.duke-energy.com/customer-

owned-generation/nc-main.asp

Doesn’t It Cost a LotDoesn’t It Cost a Lot

$20,000 to $60,000 depending on size Less 30% Federal tax credit* Less 35% North Carolina tax credit*

Maximum of $10,500 on solar electric Deduct interest from taxes Improved property value

80% property tax exclusion* Could be 5 to 15 year payback

Systems last 30 years or more

* www.dsireusa.org

$20,000 to $60,000 depending on size Less 30% Federal tax credit* Less 35% North Carolina tax credit*

Maximum of $10,500 on solar electric Deduct interest from taxes Improved property value

80% property tax exclusion* Could be 5 to 15 year payback

Systems last 30 years or more

* www.dsireusa.org

Doesn’t It Cost a Lot?Doesn’t It Cost a Lot?

$30,000 for 5 KW ($6.00 per Watt) Subtract $9,000 Federal tax credit Subtract $10,500 NC tax credit Net cost = $10,500 ($2.11 per

Watt)

$30,000 for 5 KW ($6.00 per Watt) Subtract $9,000 Federal tax credit Subtract $10,500 NC tax credit Net cost = $10,500 ($2.11 per

Watt)

Do I Need a Basement Full of Batteries?

Do I Need a Basement Full of Batteries?

No, utility “stores” energy like a huge battery

Batteries are required if you live off the gridBattery systems are much more

expensive than grid-tied systemsBut far less expensive than running a

generator

No, utility “stores” energy like a huge battery

Batteries are required if you live off the gridBattery systems are much more

expensive than grid-tied systemsBut far less expensive than running a

generator

Off-Grid (Stand-Alone) Systems Use BatteriesOff-Grid (Stand-Alone) Systems Use Batteries

Large battery bank for a large house

Small battery/ inverter for a cabin

Won’t It Look Funny on My Roof?

Won’t It Look Funny on My Roof?

Standard solar modules stick up above roof surface

Can sometimes be hidden

Standard solar modules stick up above roof surface

Can sometimes be hidden

Modules are available that blend in with roofing

Modules are available that blend in with roofing

Can you see the two types of modules on this roof?

Can you see the two types of modules on this roof?

Modules Can Blend Into RoofModules Can Blend Into Roof A careful layout of modules A careful layout of modules

Modules Can Be Incorporated Into the Building Design

Modules Can Be Incorporated Into the Building Design

Modules can become an architectural element

Modules can become an architectural element

Is Funding Available?Is Funding Available?

Most systems financed with home equity loan Can deduct interest from taxes At the present time, interest is low

Duke does not currently offer a rebate for solar systems, other utility companies do

Federal loan program available http://www.dsireusa.org

May also finance through manufacturer

Most systems financed with home equity loan Can deduct interest from taxes At the present time, interest is low

Duke does not currently offer a rebate for solar systems, other utility companies do

Federal loan program available http://www.dsireusa.org

May also finance through manufacturer

How Do I Get Started?Step 1

How Do I Get Started?Step 1

Collect 2 years of bills from DukeHaven’t saved them? Go on linehttp://www.duke-energy.com/north-

carolina.asp You want yearly energy use

KWh total per yearAverage monthly bill

Total over year divided by 12

Collect 2 years of bills from DukeHaven’t saved them? Go on linehttp://www.duke-energy.com/north-

carolina.asp You want yearly energy use

KWh total per yearAverage monthly bill

Total over year divided by 12

Step 2 (installers can do this)

Step 2 (installers can do this)

Measure roof size, slope, and orientation Ideal orientation and full sun?

South facing at 30 to 45 degrees tilt No shadows If far from ideal, a solar system on your roof

may not be economical Solar calculator at www.pvwatt.org

Are repairs needed? Roofing in excellent condition Structure is sound

Measure roof size, slope, and orientation Ideal orientation and full sun?

South facing at 30 to 45 degrees tilt No shadows If far from ideal, a solar system on your roof

may not be economical Solar calculator at www.pvwatt.org

Are repairs needed? Roofing in excellent condition Structure is sound

Step 3Step 3

Find minimum of 3 installersNABCEP certified installers

(North American Board of Certified Energy Practitioners)

http://www.nabcep.org/ List of NABCEP NC installers at site

Get a minimum of 3 quotes

Find minimum of 3 installersNABCEP certified installers

(North American Board of Certified Energy Practitioners)

http://www.nabcep.org/ List of NABCEP NC installers at site

Get a minimum of 3 quotes

Step 4Step 4

Do an energy audit of your house You should do this anyway $1 saves $4

Rebates, loans, and tax benefits are available for efficiency improvements Get paid for saving energy http://www.dsireusa.org

Factor in projected energy savings when sizing solar system

Do an energy audit of your house You should do this anyway $1 saves $4

Rebates, loans, and tax benefits are available for efficiency improvements Get paid for saving energy http://www.dsireusa.org

Factor in projected energy savings when sizing solar system

Step 5Step 5 Review quotes

$/W (cost divided by rated AC size) How is payback time calculated?

Cost of loan included? Tax credits counted? REC? What sell price to Duke is assumed?

How is output calculated? Did they use the actual roof orientation(s) and slope(s)?

What equipment is specified? Are you happy with the brands?

Check references (past customers)

Review quotes $/W (cost divided by rated AC size) How is payback time calculated?

Cost of loan included? Tax credits counted? REC? What sell price to Duke is assumed?

How is output calculated? Did they use the actual roof orientation(s) and slope(s)?

What equipment is specified? Are you happy with the brands?

Check references (past customers)

Example PaybackCost and IncomeExample PaybackCost and Income

Constant dollars (no inflation)

Your mileage may vary

Cost of system, $/W 6 Optimistic, based on a quoteRated size of system, W 5,000

Total initial cost, $ 30,000.00$

Yearly energy use, KWh 5,000 With energy improvementsYearly output by PV, KWh 8,857 South facing, no shadows

Yearly energy expense (425.00)$ 8.5 c/KWhYearly energy sold 619.99$ 7 c/KWhFederal REP credit 186.00$ 2.1 c/KWhYearly REC 1,328.55$ 15 c/KWh

Yearly net income 1,709.54$

Example PaybackAssumptions

Example PaybackAssumptions

Loan term 10 yearsLoan interest 4.4% Based on a quoteLoan payment 2,640.91$ per year

Insurance 100$ EstimateUtility expenses 100$ Estimated administrative and access feesFed tax bracket 25.0%NC tax bracket 8.0%

6/20/2010- Actual utillity expense is $194 per year. Actual insurance expense could range from a saving to

$370 per year.

How Payback Period is CalculatedHow Payback Period is Calculated

Year’s balance (as a negative value)+ Year’s income and credits- Year’s expenses= Next year’s balanceRepeat

Payback period is when balance is positive

Year’s balance (as a negative value)+ Year’s income and credits- Year’s expenses= Next year’s balanceRepeat

Payback period is when balance is positive

Example Payback CalculationExample Payback Calculation

Year Balance Net income

Fed Interest writeoff

NC interest writeoff

State tax credit

Loan interest payment Insurance

Utility expenses

1 ($21,000) 1,710$ 231$ 74$ 2,100$ 924$ 100$ 100$ 2 ($18,157) 1,710$ 212$ 68$ 2,100$ 848$ 100$ 100$ 3 ($15,252) 1,710$ 192$ 62$ 2,100$ 770$ 100$ 100$ 4 ($12,281) 1,710$ 172$ 55$ 2,100$ 687$ 100$ 100$ 5 ($9,242) 1,710$ 150$ 48$ 2,100$ 601$ 100$ 100$ 6 ($6,132) 1,710$ 128$ 41$ 512$ 100$ 100$ 7 ($5,047) 1,710$ 104$ 33$ 418$ 100$ 100$ 8 ($3,884) 1,710$ 80$ 26$ 320$ 100$ 100$ 9 ($2,640) 1,710$ 54$ 17$ 218$ 100$ 100$

10 ($1,311) 1,710$ 28$ 9$ 111$ 100$ 100$ 11 $106 1,710$ 100$ 100$ 12 $1,615 1,710$ 100$ 100$ 13 $3,125 1,710$ 100$ 100$ 14 $4,634 1,710$ 100$ 100$ 15 $6,144 1,710$ 100$ 100$ 16 $7,653 1,710$ 100$ 100$ 17 $9,163 1,710$ 100$ 100$ 18 $10,672 1,710$ 100$ 100$ 19 $12,182 1,710$ 100$ 100$ 20 $13,692 1,710$ 100$ 100$ 21 $15,201 1,710$ 100$ 100$ 22 $16,711 1,710$ 100$ 100$ 23 $18,220 1,710$ 100$ 100$ 24 $19,730 1,710$ 100$ 100$ 25 $21,239 1,710$ 100$ 100$ 26 $22,749 1,710$ 100$ 100$ 27 $24,258 1,710$ 100$ 100$ 28 $25,768 1,710$ 100$ 100$ 29 $27,277 1,710$ 100$ 100$ 30 $28,787 1,710$ 100$ 100$

Totals 51,286$ 1,352$ 433$ 10,500$ 5,409$ 3,000$ 3,000$

ExpensesIncome and credit

SummarySummary In North Carolina, you can make money by

selling electricity to Duke Other reasons for solar are environmental Payback period can be less than 15 years while

systems last 30 years No batteries needed for grid-tied systems Well designed solar can blend in with roof Funding through home improvement loan

Also Federal loan program or manufacturer Work through a licensed installer

Don’t forget energy efficiency improvements

In North Carolina, you can make money by selling electricity to Duke

Other reasons for solar are environmental Payback period can be less than 15 years while

systems last 30 years No batteries needed for grid-tied systems Well designed solar can blend in with roof Funding through home improvement loan

Also Federal loan program or manufacturer Work through a licensed installer

Don’t forget energy efficiency improvements

ThanksThanks

Copies of slides availableTalk also posted at

www.thesolardesignbook.com Books for sale

Solar Basics (for beginners)Solar Design (for system designers)

Copies of slides availableTalk also posted at

www.thesolardesignbook.com Books for sale

Solar Basics (for beginners)Solar Design (for system designers)