Brad Burdic, AIA Spring, 2008 - DBIA-SW

Brad Burdic, AIA
Spring, 2008
• INTRODUCTION
• MARKET OVERVIEW
• PROJECT CONSIDERATIONS
• PROJECT SPECIFICATIONS
• PROJECT EXAMPLES
• SOLAR ECONOMICS
• TOOLS AND RESOURCES
Thank you Phoenix CSI Chapter!
Is renewable energy real?
New Energy Finance said Wednesday that “cleanenergy companies globally pulled in a whopping $117.3
billion in public and private funding in 2007. That's 41
percent more than the $83 billion the London-based
research firm tracked in 2006.
“Increased government support in clean energy around
the world contributed to investors' willingness to back
clean-energy companies and assets”, according to New
Energy Finance.
• Let’s not forget our common sense!
• Only after a building is designed or retrofitted to be
energy efficient, should we develop additional on-site
renewable energy sources such as PV systems, which
can be utilized to further reduce total annual energy
requirements.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
• Growth in installations in the United States increased
from 20 percent in 2005 to 31 percent in 2006,
primarily driven by California and New Jersey.
• The California Solar Initiative was launched in January
2006 to provide more than $3 billion in incentives for
solar power. The goal is to generate 3,000 megawatts
of new solar power statewide by 2017.
• Q. What is a Solar Renewable Energy Certificate
(SREC), and where is this used?
− A. SREC stands for Solar Renewable Energy Certificate and is a type
of clean energy credit that can be bought or sold. An SREC is issued
once a solar facility has generated 1000kWh (1MWh). New Jersey
has initiated this program to reduce dependence on rebates
Information from Prometheus Institute
In 2006, for the first time, more than half of
polysilicon production went into PVs instead
of computer chips.
•The majority of systems currently installed are
crystalline based solar panels
•but……
Information from Prometheus Institute
• For amorphous, or thin-film PV, production
costs are expected to reach $1 per watt in
2010, at which point solar PV will become
competitive with coal-fired electricity.
Ut
2012??
Information from Prometheus Institute
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PV systems fall into the following three distinct categories
• 1. Grid-Tie (Connected to local utility) Grid-tie PV systems
are typically designed to generate power for the owner’s
consumption on-site with any surplus power being sold to
the local utility.
• 2. Stand-Alone with On-Site Storage (Independent of local
utility): These PV systems are typically installed on remote
sites where a standard electrical connection to the local
utility grid is not physically or financially feasible.
• 3. UPS PV Systems (Uninterrupted Power Supply): These
PV systems are a combination of grid-tie and on-site
storage. UPS PV systems are often the most complex to
design, install, and operate.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
PV Construction Process
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
•
•
•
•
•
•
Sunlight availability
Orientation
Ambient Temperature
Solar Module Shading
Dirt and Debris
Output performance
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
• Sunlight availability
− The level of sunlight striking a given location on the earth is
ever changing. The earth’s orbit, daily rotation, and
atmosphere all play roles in the local solar resource. The
power output of a PV module or PV array, in turn, is directly
proportional to this ever-changing natural resource.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
• Orientation
− horizontal). When tilted, the position of the PV array relative to
“true” south (if in the northern hemisphere) is defined in terms
of the azimuth angle (south = 0°, west = 90°, east = -90°, north
= 180°).
• Think South, generally!
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Calculator (example)
Not good!
GREAT!!!
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
• Ambient Temperature
− As temperatures rise, panel output can decrease.
− Heat is the enemy!!!!
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
• Solar Module Shading
− As a general rule, small amounts of shading on a single
module can cause dramatic reductions in energy production.
− The level of power reduction is dependent on the amount of
shading relative to the wiring configuration of the PV array.
− As a design rule, review this possibility early
and create a go/no go based on common sense.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Performance Considerations
• Dirt and Debris
− Less sunlight on the solar cells equate to an output power
reduction, which is proportional to the amount of dust and dirt.
Typical power output reduction can amount to
as much as 10% depending on factors such as
type of dust, thickness of dust and length of
time since the last rainfall.
− Dry climates such as Arizona, New Mexico or Texas could
experience power output reductions of between 2% to 7% due
to dust accumulation if not accounted for.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Solar Electric Components
• PV modules – 2 broad types
− Crystalline silicon and
Amorphous or thin films.
− Crystalline silicon modules
represented 90% of manufactured
PV modules in 2003, but as we
indicated in our marketing data there
is considerable research and
development in the U.S. on thin film
(amorphous) technologies.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Solar Electric Components Conclusion
• Each project will be unique, just like
roofing!
• Thin film may be less expensive to buy and install; however, it
requires more space and produces less output than a modular
installation. On a per Watt basis, Thin film can deliver the most for
the customer’s money. On a kilowatt-hour production basis,
Silicon Panels deliver the most for the customer’s money.
•
•
If a system size is the limiting factor, thin film may be the best
decision.
If the consumption or the size of the roof is the limiting factor Silicon
Panel technology may be the best decision.
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
How do I create a
robust program for
my client?
Project Discovery
Guide!
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
How do I create a
spec for systems
that did not exist 2
years ago?
CSI developed
Project
Specifications!
Information from the Construction Specifications Institute Phoenix Chapter Technical Committee
Project Examples
Framing basics
Framing basics
Framing basics
Project Examples
Project Examples
Project Examples
Project Examples
Project Examples
Project Examples
Project Examples
• Solar Economics
Financial Solution Example
6% Energy Inflation ROI Example
6% Energy Inflation ROI Example
Solar power frequently asked finance questions
Questions
Purchase
Lease
Purchase Power
Agreement-PPA
What is the
basic contract
structure
difference
between the
agreements?
Contract will be
between building
owner and
Ecostream.
Building owner
receives rebates
and tax benefits.
Financing will be
between the
building owner
and the finance
company. Rebates
and tax benefits
assignable.
Lessor will be
owner of the solar
system. The
building owner will
lease the system
from the lessor
and pay monthly
lease rates. The
lessor will use the
tax benefits. The
rebates can be
taken by the
lessor or building
owner. Residual
buyout option at
conclusion of lease
term.
PPA company buys
the system and
sells the energy
for a long term
fixed price to the
building owner.
Typical terms are
20 years. PPA
company takes tax
benefits and
rebates. Turnover,
or residual buyout
option at
conclusion of PPA
term.
Questions
What is the
payback
timeframe?
Purchase
4-8 years if
rebates are
available, 8-14
years without
rebates.
Building owner
claiming tax
benefits can
depreciate
entire system
in 5 years.
Lease
Buy out of the
system (market
value) typically:
50% after 5
years
25% after 7
years
10% ater 10
years
Purchase Power
Agreement-PPA
No payback for
building owner
during term of
PPA. Turnover
option at
conclusion of
PPA term.
Questions
Purchase
Lease
Purchase Power
Agreement-PPA
What are the
Typically 20%
Possible
upfront capital own capital, rest Application fee.
may be loan
costs
associated
with each
method?
none
Who owns the Building owner. Lessor
Federal Tax
Can be
Credits?
assigned.
PPA company
Who owns the Building owner. Building owner. PPA company
(typically)
energy credits Can be
Can be
assigned.
if issued by a assigned.
State?
(SRECS)
Questions
Private vs.
Public issues?
Purchase
Lease
Purchase Power
Agreement-PPA
It g
ets
ha a l
ng ittl
wi e s
th tic
me ky
!! , so
Questions
Which system
makes the
most sense if I
am a private
owner that will
sell the real
estate
investment
within 5
years?
Purchase
Lease
Di
sc
us
sio
nr
eq
uir
Purchase Power
Agreement-PPA
ed
Questions
Which system
makes the
most sense if I
am a public
owner that will
hold on to the
real estate
investment? I
cannot take
advantage of
the Federal
Tax Credits.
Purchase
Lease
Lease gives the
best option to
generate
additional
income after
system is paid
Purchase Power
Agreement-PPA
PPA is the safest
way, no risk but
also no chance
to generate
additional
income.
Questions
How should I
account for
maintenance?
How long are
the typical
finance options
(years)
Can I
depreciate the
cost of the roof
when installing
a solar electric
system?
Purchase
Lease
Di
sc
us
sio
nr
eq
uir
Purchase Power
Agreement-PPA
ed
Resources
Resources
Resources
Resources
Resources
Thank you!
Brad Burdic, AIA
[email protected]
303-809-4519