Transcript Board Presentation - Clean Energy Strategy
Sustainable Energy Innovation
A New Era in Solar Dominic Drenen – Manager Solar Energy Systems
Renewable Energy
•
As an organisation Origin Energy has a strong commitment to ‘Clean Energy Solutions’
•
We operate businesses providing/supplying the following:
– Environmental Refrigerants – – Cogeneration Wind power – – Natural Gas for Vehicles Geoexchange – Energy efficiency consulting
2
‘Sustainable Energy Innovation’
Proudly sponsored by Origin Energy 3
Origin Energy and Solar
•
From a distributed power perspective, solar is the leading option.
•
Research and Development
– – ANU – solar module development with objectives of increased efficiency and reduced cost. Total investment in approx. $4 million to date, pilot plant early 2003.
AES – grid connect inverter objective of reduced cost. Total investment approx. $2.5 million, prototypes being developed bench testing/field testing 3 rd quarter 2002.
•
In advance of having access to our own technology we have entered the retail market as a provider of grid connected solar systems.
4
Consumer preference is clearly biased towards clean and green
100
%
80 60 40 20 0 -20 -40 -60 -80 18 6 -69 Coal 19 12 -63 Nuclear 37 22 32 33 -18 -29 Forest Waste Landfill Gas 38 33 -13 42 41 -11 Geo Therm Natural Gas 31 52 -10 Wind 28 57 -4 Hydro 26 67 -5 Solar Source: SMUD – Sacramento Municipal Utility District, March 1997 5
Origin Energy’s Solar Offer
•
Offer a comprehensive range of sizes (450 watt plus).
•
Facilitate the completion of all documentation for the customer.
•
Competitive buy back rate for electricity exported back to the grid (28c/kWh).
•
Free consultation and energy advice.
•
Competitive pricing through Origin Energy's buying power.
•
Access to approved Australian Greenhouse Office installers.
•
Extended warranty (panels have a 20 year warranty and an expected useful life of 30 years+).
•
More than 140 years of experience in the energy business .
6
What are the costs?
•Installed prices for solar systems in Australia are
currently running at ~$16/watt.
•The AGO PVRP provides a rebate of $5/watt, giving the
customer an effective price of ~$11/watt.
System Size watt
500 900 1500
Approx. output (kWh per annum)
730 1300 2200
Approx. installed Price incl GST
$8,500 $14,500 $21,500
AGO reabate
$2,500 $4,500 $7,500
Approx. final price to customer
$6,000 $10,000 $14,000
Return on investment for a 1500 watt system: Capital cost: $14,000 Return: 2,200kWh * 14c/kWh = $308 ROI: $308/$14,000 = 2% (tax free!) 7
Solar Installation
8
The price of silicon has only slightly decreased in the last decade
300 250 200 150 100 50 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 8 6 4 2 0 20 18 16 14 12 10
This is expected because PV uses waste from semiconductor production (PV uses ~10% of total) and therefore cumulative volume much larger and annual cost reduction smaller
All prices in US$2002 Source: Silicon study by Walarian Kipiniak
9
Approved Applications by State
Up to Jan 2000 Oct 2001 State
NSW VIC QLD SA WA TAS NT ACT
Grand Total Grid Connect Systems
178 271 121 180 56 13 3 15
837 10
Current Market size
•
Up to January 2002 the total number of installed grid connected solar units across Australia was 900.
•
The average installation size is 1kW and therefore the annual national grid connect solar contribution is estimated at 1.5 GWh.
11
Market Segments
•
Two distinct market segments:
– Retrofit (installing a solar energy system on an existing house), customers reached through: – Yellow Pages, mail outs, advertorials, web page, trade shows, bill inserts, Origin Energy shops.
– Range of businesses servicing this market – including Origin Energy.
– New Homes, (installing a specific solar package incorporated into the house design), customers reached trough: – Major developers, architects, eco developers, councils.
– No supplier servicing this market.
12
Developer Package
•
Origin Energy has developed a 450 watt grid connect solar system specifically for new home builders.
•
After rebate installed price of just over $3,000 or ~$6.70/watt.
•
Can get to this price through a combination of:
– Scale – multiple sales to one customer.
– – System installation during construction.
Significantly easier approval process reduces cost.
13
Developer Package
•
The following developers are now beginning to offer an Origin Energy solar system option to their customers:
– – Australand Homes Henley Homes – Metricon Homes •
Origin Energy is confident that the uptake by developers of this streamlined solar energy package will result in a quantum increase in solar installations, heralding a new era in Solar. 14