An Introduction to the Solar Electric Market . Presented by: Derek Coen Atlantic Electric Supply firstname.lastname@example.org. Black & Decker University October 23, 2009. I.E.C.- Chesapeake Renewable Energy Committee. Foad Alvandi Spectrum Energy email@example.com
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Presented by: Derek Coen
Atlantic Electric Supply
Black & Decker University
October 23, 2009
Foad Alvandi Spectrum Energy firstname.lastname@example.org
Don Bonnet Ridgeway & Ernest email@example.com
Derek Coen, Chair Atlantic Electric Supply firstname.lastname@example.org
Jim Deal IEC – Chesapeake email@example.com
Julie Golofski BP Solar firstname.lastname@example.org
Mike Fitzpatrick M & S Electric email@example.com
Jim Holt Holt Electric firstname.lastname@example.org
Tom Hummel Aztec Electric email@example.com
David Lucier Crum Electric firstname.lastname@example.org
Jean Maisel JDL Electric email@example.com
Mathew Misterka New Age Electric firstname.lastname@example.org
John Ross Hawkins Electric email@example.com
Eric Shatzer Hawkins Electric firstname.lastname@example.org
Grant Shmelzer IEC – Chesapeake email@example.com
Mike Yeakey Anne Arundel CC firstname.lastname@example.org
Despitethe environment, global warming, national security and job creation,
individuals will not make the move to renewable energies until it makes financial sense to do so.
The time is NOW!
increases are forecast to continue into the future.
Sources: Washington Post 2-3 & 7-1-08
Bureau of Labor Statistics 8-10-09
To reduce pressure on the grid, governments will increase incentives to encourage the switch to Renewable Energy.
The solar investment tax credit covers 30% of PV system costs.
The credit will be offered for a period of eight years (until 2017).
Over $800 million of clean energy bonds will be authorized for renewable energy generating facilities.
This alone is projected to create tens of thousands of new jobs.
Congress Passes Investment Tax Credit (10-7-08)
“… these tax credits have turned the solar industry from a small, cottage industry into an economic engine for America”Rhone Resch, President SEIA
Prohibits unreasonable restrictions of solar energy projects.
Requires 2% of state’s energy from solar by 2011 and 20% from renewable power by 2022.
Establishes SREC program.
Establishes Clean Energy Loan Program.
Several counties now offer property tax credits.
Maryland Solar Grant: Up to $10,000 for systems under 20kWh
$1.25/ watt for the first 2,000 watts of capacity
$0.75/ watt for watts 2,001 - 8,000
$0.25/ watt for watts 8,001 - 20,000
Maryland – Solar Related Incentives
“We must do all that we can to secure Maryland’s energy future.” Gov. Martin O’Malley
Maryland has a program that offers Solar Renewable Energy Credits (SRECs).
One SREC equals 1000 kWh of electrical generation.
The value of an SREC is based on the Alternative Compliance Payment (ACP) schedule (2009 = $400, 2011 = $350). This is the penalty that utilities must pay to the Public Service Commission (PSC) for not meeting target goals.
The value of an SREC in 2009 is about 60% to 70% of the ACP ($240 to $280).
To benefit, homeowners must register their systems with the Maryland PSC and the PJM Interconnection GATS program.
A 3kW solar system generates about 3.6 SRECs per year
A 5kW solar system generates about 6 SRECs per year.
Selling of SRECs is another way that Marylanders can offset the costs of solar systems.
$3.00 for each of the first 3,000 installed Watts: $ 9,000
$2.00 for each of the next 7,000 installed Watts: $14,000
$1.00 for each of the next 10,000 installed Watts: $10,000
Maximum Rebate (20kW system): $33,000
Approved incentives will be paid in advance of installation.
District of Columbia Establishes New Incentives (2-2009)
Washington DC joins the ranks of progressive states and counties offering incentives to purchase solar systems
Residents and businesses can receive rebates for installation of PV systems.
Residential Rebate: $2.25/Watt. Capped at 10kW.
Business Rebate: Varies by size. $2.25/Watt for 3 to 10kW systems. Capped at 200kW.
PA also participates in the AEC market (RECs).
“Today marks another exciting milestone in Pennsylvania’s efforts to achieve energy independence…,”Gov. Ed Rendell
Pennsylvania opens “Sunshine Program” (May 2009)
Federal Tax Credit: Tax credit covers 30% of system cost.
District of Columbia: Grants based on system size. Range from $3,000 to $33,000.
Maryland: Grants based on system size range from $1,250 to $10,000.
Montgomery County – Property Tax Credit of $5,000 of system cost.
Howard County – Property Tax Credit of $5,000 of system cost.
Pennsylvania: Residential rebates based on system size range from $2,250 to $22,500.
Net-Metering: All jurisdictions offer Net-Metering.
Renewable Energy Credits (RECs): Provide additional incentives.
Sales Tax Exemption: All PV systems are sales tax exempt.
Federal and local credits, grants and rebates add up to make the case for going solar very compelling.
Other Initiatives Exist The Solar America Initiative
The aim of the SAI is to achieve parity with grid electricity by 2015.
“By 2016, we expect solar energy to be the least expensive
source for consumers.”Rhone Resch, President SEIA
Source: BP Solar
Installations are Soaring
Source: BP SolarPhotovoltaic (PV) Prices are Dropping
Production growth rates have exceeded 35% annually.
With incentives, the solar market will continue to grow at impressive rates -- even in the current economy!
Solar Economics and Prospects
A Summary of the Market
How Much Sunlight is Required? impressive rates -- even in the current economy!
DC/MD/PA Average sunlight exceeds 4 hrs/day
This area is considered a good environment for solar energy.
What Direction are the Panels Pointed? impressive rates -- even in the current economy!
Solar will not work for every location. Panels must be ……
Represents 90% of solar PV market.
Takes advantage of Net-Metering option.
Simple system – modules, racks and inverter.
Does not work when grid is down.
Provides power when grid is down.
Expensive - generators are often better option.
Often used where grid interruptions can last several days and a generator is not feasible.
Well suited for mission critical applications: medical, emergency services, computer systems.
Ideal for remote locations that only need power during the day.
Solar module(s) powers fan or water pump.
No battery or controller needed.
More complex and expensive.
Often used in remote off-grid areas.
Or, where electricity is inconvenient.
Batteries require regular maintenance.
To AC Grid
To / From AC Power Grid impressive rates -- even in the current economy!Grid-tied With Battery Back-up
Solar System Components impressive rates -- even in the current economy!
Size: 60” x 33” x 1.8”
Weight: 25 to 40 lbs
Voltage: 17 to 36 vdc
Watts: 170 to 205
BP Solar Evergreen
Sharp Solar World
Static Mount or
“Rule of Thumb”- impressive rates -- even in the current economy!
Installed prices are around $8.00/WattTypical System Installed Costs
impressive rates -- even in the current economy!Electrical savings/M: 3kW = $60 Renewable Energy Credits (RECs)
Other credits could apply Interest on loans is deductible
Property value increases Provides Hedge against rate increases
Simplified System Costs with Incentives
District of Columbia
Solar electric systems in this size would save 75 tons of CO2 over 25 years.
An Introduction to Photovoltaics impressive rates -- even in the current economy!:
NABCEP Certificate of Knowledge Exam offered
October 2nd, 3rd and 4th - Bristol, PA (BCCC)
Oct. 20th thru Dec. 15th - (9 wks) Odenton, MD (Tuesdays 4:00 to 6:00 p.m.)
IEC-Chesapeake – Learning Opportunities
November 3rd, 4th and 5th - Elkridge, MD / Newtown, PA
November 17th and 18th - Elkridge, MD (U of M) / Wilmington, DE
February 2nd and 3rd - Odenton, MD / Bucks Co, PA
IEC-Chesapeake is proud to be recognized as a NABCEP approved training facility.
IEC-Chesapeake - Learning Opportunities impressive rates -- even in the current economy!
February 12th and 13th – Odenton, MD
By Special Arrangement – Odenton, MD
IEC-Chesapeake is pleased to have partnered with BP Solar for two functioning Solar Labs.
Things are changing in all of these areas and will further boost opportunities in the industry.
Watch Developments Closely
www.dsireusa.org - Database of State Incentives
www1.eere.energy.gov/solar/solar_america/about.html - Solar America Initiative
www.renewable-energy-world.com - Solar News & Industry Information
www.solarbuzz.com - Solar News & Industry Information
www.Findsolar.com - Solar Estimator
www.solarenergy.com - Education & Training
www.irecusa.org - Interstate Renewable Energy Council – Education & Training
www.nabcep.org - North American Board of Certified Energy Practitioners
www.seia.org - Solar Energy Industry Association, Lobbying & Education
www.solarelectricpower.org - Solar Electric Power Association
www.ases.org - American Solar Energy Society
www.bge.com - Baltimore Gas & Electric
www.pepco.com - PEPCO
“I'd put my money on the sun and solar energy.
What a source of power!
I hope we don't have to wait 'til oil and coal run out before we tackle that.”