Transcript Document

RESIDENTIAL & COMMERCIAL
SOLAR REVIEW
Presented By:
Daniel M. Mullaney
1st Light Energy
www.1stLightEnergy.com
Solar System: Most systems today are Grid tied, meaning no battery back up involved. The typical
system includes the panels on the roof, which generate Direct Current from the sun’s rays. This D/C
current is carried by a conduit to an inverter, which converts the D/C power to A/C for use in homes and
business. From the inverter, the electricity flows into the service panel, with excess power flowing back
to the Grid.
Net metering is a program offered by a utility company for customers that install renewable
energy systems to generate their own electricity that can be used to offset a portion of the electric
energy provided by the utility. Any excess energy generated by the customer during the monthly
billing cycle would be sold to the utility company and credited to the customer.
Unlike most home improvement projects, Solar PV installations are a “true investment”, as
there is a rate of return based on the savings derived from a reduced utility bill, as well on
any funds invested as part of a down-payment to reduce the electric rate.
It is estimated that for every 6 residential system installed, one job is created.
Some Obvious Questions about Solar
Does Solar Work in New England?
New England’s climate can be tough at times, but there is plenty of sunlight to support solar energy. In
fact, cooler Northeast temperatures make solar electric cells work more efficiently. Much more important
than sunlight intensity are programs to make solar cost effective, which is why cool and cloudy Germany
is actually the global leader in solar generated electricity.
What about snow?
Solar panels will not produce when covered in snow. However they have a tempered glass surface and
dark color, so snow is quick to melt off them once the sun returns. This means that over the course of a
year snow cover has an extremely small effect on overall production.
Would a solar system increase the value of my home?
Every home is different, but a study published by the Appraisal Institute estimates that for every utility-bill
dollar saved due to an energy improvement, you gain $20 in property value. So a solar system that
saves $1,000 per year in utility costs can increase your home’s value by $20,000. Also, the U.S.
Department of Energy recently found that even in soft housing markets, a home with solar will sell in half
the time as one without.
Are solar panels fragile?
Solar Electric systems are extremely rugged. They have no moving parts to wear out over time. Many
solar installations have been producing energy for over thirty years, and today almost all solar panels
come with a 25 year warranty. Today’s panels are designed to withstand lightning strikes, hail storms,
and 100+ mile-an-hour wind.
Some Obvious Questions about Solar
Do solar panels need to be cleaned?
Except in unusual circumstances where panels are in close proximity to a dusty or heavily polluted area,
solar panels do not require cleaning. In New England there is enough rain to give solar panels all the
washing they need.
Does a roof need to face south?
The ideal roof slopes towards the south, since southern exposure will maximize the efficiency of solar
panels. But even if your roof is east or west facing, you can still get strong results. If there is a flat roof we
can orient the panels to maximize efficiency.
How much roof space is required for a solar electric system?
For every kilowatt (kW) installed, a solar system takes up about 100 square feet, so an average solar
system takes between 500 and 600 square feet.
What size solar system is needed?
The size of a solar PV system depends on how much electricity is used. When we design an array, we
start by looking at utility bills to determine the usage. From there we assess the specifics of a client’s
site, including building orientation and roof shading to see how much energy it could generate. We then
offer the client a detailed proposal – usually with two or three optimal system sizes - specific to their
situation.
Solar Power Qualifiers
•Roof Age
•Shading
•Azimuth
•Roof tilt
SITE QUALIFICATION
 Roof Condition and Age
No Cracking or Curling of Shingles,
10 Years or younger in age is ideal
Roof Mounts
Professional Mount
Roof Mounts
Panel Claw for Flat Roofs
SITE QUALIFICATION
 Shading
SITE QUALIFICATION
 Azimuth –
 Southern Orientation is most desirable
 Eastern Exposure typically acceptable
 Western Exposure is often possible
 Northern Orientation usually improbable
 Sun’s Path
SITE QUALIFICATION
 Roof Tilt –
For maximum annual generation in Massachusetts,
a solar array should be installed at approximately
a 30-45 degree angle to the horizon.
Example:
90° - 42° = 48° Tilt is the most ideal
State Solar Programs
Solar PV works in states with viable incentive programs
Massachusetts – Commonwealth Solar Initiative
California – Production Based Incentive (PBI)
New Jersey – SREC program
Pending - Connecticut, New York, Pennsylvania
Arizona, Colorado, New Mexico, Oregon and Hawaii,,
The ARRA – American Recovery and Reinvestment Act
Stay tuned – incentive programs are evolving.
Incentives - Lots of Green $$ to Go Green
 Federal Renewable Energy Residential Tax Credit
Tax credits are available at 30% of the cost of the solar energy system, with no
upper limit through 2016 (for existing homes, business & new construction). If a
potential tax liability is small a customer can take the credit every year until it is
gone until 2016.
 State Tax Credit A personal tax credit is available at 15% of the cost of the solar
energy system (after federal tax credits and grants) up to $1,000. The credit can be
carried forward for 3 years.
 State Rebates
The Massachusetts state rebates for solar PV and solar are available to customers
served by all the major utilities in the state. This rebate is capped at $2,000 and is
adjusted downward for larger systems (projects are eligible for rebates only if their
total capacity is under 15kW)
 Solar Renewable Energy Credits (SRECs)
SRECs are tradable certificates generated by the creation of solar electricity. A
system will produce 1 SREC per year for every 1kW of PV installed. The average
New England home uses about 6,000 kWh = 6 kW system = 6 SRECS
Incentives - Lots of Green $$ to Go Green (con’t)
SREC Values = $285 minimum per SREC
SREC Values are guaranteed until 2020 by the Commonwealth of Mass.
SREC’s Trade on an auction platform regulated by the states.
Typical System: 6 SRECS x 285 = $1,710 per year in income
This income is either received by the customer or by the Solar Provider, depending
upon the method of financing selected.
Solar is expensive at roughly $4,700/kilowatt (or $0.37/kWh)
Government credits, rebates and subsidized programs = under .10/kWh
On a typical solar project, the federal tax incentives pay for more than 1/3, local or state
incentive programs pay for 1/3 and the last 1/3 comes from spreading out payments through
PPA or Lease/Loan.
Choice of Funding Methods
CASH –(All incentives) Customer pays for the entire system from savings
Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life.
LOAN – (All incentives) Customer pays for system through 10Y debt
Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life.
PREPAY w/SREC-(SREC’s only)–Customer pays for lease UPFRONT
NOT Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life.
Receives SREC’s
LEASE/P.P.A – (No Incentives) – Customer pays a low monthly fee, no upfront.
NOT Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life. NO SREC
FINANCE PARTNERS
 FINANCIERS
1.) Clean Power Finance PPA (Pay for amount of energy PV
system produces every month)
2.) NRG Solar Lease (fixed monthly payment)
3.) Admiral Bank – Conventional Loans and FHA Title 1
Funding
Lease & Power Purchase Agreement (PPA)
 Free Installation
1st Light Energy will install the solar system for free with zero out of pocket cost.
 Save on Monthly Electric Bills
With a Solar PPA- simply pay for solar power by the month—just like a utility bill—only lower.
 Savings Grow Every Year
Savings can grow over time as utility rates continue to increase. Historically, utility rates have
increased over 4.5% every year. With a Solar PPA, a low rate will be locked in for 20 years.
 Premium Service Package
With a Solar PPA, we install a system for free and we maintain the equipment on the home.
System Monitoring- Constant monitoring of a system's performance with Locus®, a premier
monitoring service. If problems do arise, a service crew will be notified and
dispatched to get the solar system back online.
Repair Service- 1st Light Energy owns the equipment and is responsible for repairs, such as
inverter replacement.
Insurance Coverage-- All-inclusive system coverage protects against damage or theft.
Performance Guarantee- Built in guarantee that a system will produce as much electricity as
was promised or homeowners gets a credit of shortfall of production.
Power Purchase Agreement (PPA)
• PPA gives you a low ($0 or more) up front cost.
• You’re locked in for 20 years to this agreement, which is transferable to a new
owner of the home should you sell the house.
• They charge you a set electrical rate that is sometimes flat, and sometimes
calculated to rise over the term of your agreement. So instead of paying for coal
fired electricity rates, you’re paying for PPA rates generated through your solar
panels.
• The PPA company takes care of the maintenance and any needed repairs and
monitors your system.
• You don’t get any tax benefits or State rebates or Solar Renewable Energy Credits
(SREC’s)
• You usually have some kind of option to buy later or at the end of the agreement
for a set price per watt.
• You need to have an good credit rating to qualify.
• You’re always tied to the grid, so any residual electricity needs that your solar
panels don’t produce is covered by your utility.
Lease
• Lease gives you a low ($0 or more) up front cost.
• You’re locked in for 20 years to this agreement, which is transferable to a new
owner of the home should you sell the house.
• Unlike a PPA, you do NOT pay for any power that your solar panels generate.
Instead, you pay a lease payment plus any extra power you need to buy from your
electric company. So, solar panel power is technically free, but you have a set
lease payment that is fixed or may rise 3 to 4% a year. That’s typically less than
the 5% rate increases by your electric company.
• The lease company takes care of the maintenance and any needed repairs and
monitors your system.
• You don’t get any tax benefits or State rebates or Solar Renewable Energy Credits
(SREC’s)
• You usually have some kind of option to buy later or at the end of the agreement
for a set price per watt.
• You need to have an good credit rating to qualify.
• You’re always tied to the grid, so any residual electricity needs that your solar
panels don’t produce is covered by your utility.
Information needed for enrollment
• Credit Rating Score of 700 or greater
• Updated Utility Bill
• Site Survey
• High Speed Internet Connection
High Speed Internet Connection
12000
10000
8000
6000
4000
2000
0
Pre solar
usage
Post solar
usage2
Pre solar cost
Post Solar
cost
Evan Shu Case
scenario
• Reduced need of
electricity from
National Grid by 56%.
• Reduced annual
energy cost by 18%
from $1550 a year
down to $1250!
With a locked in rate of $0.096 and 55%
of energy coming from Solar Power
$3,500
$3,000
$2,500
$2,000
Pre Solar
Post Solar
$1,500
$1,000
$500
$0
1 2 3 4 5 6 7 8 9 1011121314151617181920
8000
7000
6000
5000
4000
3000
2000
1000
0
Pre Solar
Usage
Post Solar
Usage2
Pre Solar
Cost
Post Solar
Cost2
Customer Kevin
Case scenario
• Reduced need of
electricity from
NSTAR by 100%
• Reduced annual
energy costs by 51%
from $1200 a year
down to $580 a year!
With a locked in rate of $0.087 and 100%
of energy coming from Solar Power
$4,000
$3,500
$3,000
$2,500
Pre Solar
Post Solar
$2,000
$1,500
$1,000
$500
$0
1 2 3 4 5 6 7 8 9 1011121314151617181920
[email protected]
1 (508)395-9380
www.1stlightenergy.com