Should I Get a Solar Array for my House? The Regulations, Available Equipment, and Benefits Steven Johnson 1
Scope Explore the considerations in the decision to install a PV System on my house Limited to my particular example: Unincorporated Jefferson County Connected to the Xcel Energy grid Equipment, rebates, codes, standards Investment merits of a PV System 2
Subsidies and Rebates Xcel Solar Rewards Program 1 Rebate of $2 / Watt Capacity $2.50 / Watt Renewable Energy Credit Federal Tax Credit 2 Expired December 31, 2007 HR5351 Passed by the House in February 2 I couldn t find any progress since then Would extend the credit to December 31, 2014 Would increase maximum credit from $2,000 to $4,000 1 http://www.xcelenergy.com/xlweb/cda/0,3080,1-1-2_41004_43476-23075-2_358_571-0,00.html 2 http://www.govtrack.us/congress/bill.xpd?bill=h110-5351 3
Utility Agreements Solar Rewards Contract 1 Net metering Equipment must have at least a 5 year warrantee and meet applicable standards and regulations Must be free of shading within ±60 horizontal and 15-90 vertical New equipment only 20 year term Must continue to operate or pay back rebate and credit pro-rata 1 http://www.xcelenergy.com/docs/retail/conmrkts/solarrewardscontract-v2.pdf 4
Utility Agreements Small Generation System Interconnection Agreement 1 Must comply with Safety, Interference, Interconnection Guidelines for Co-Generators, Small Power Producers and Customer Owned Generators Must comply with relevant Rules of the Colorado PUC Must undergo a design review Utility has right to inspect the system and witness testing Must perform commissioning test as required by applicable codes and standards including IEEE 1547.1 Must receive written approval prior to changes Must have $300,000 liability insurance 1 http://www.xcelenergy.com/docs/retail/conmrkts/interconnectionagreement.pdf 5
Homeowner s Association Submit a picture of what it will look like from the street Obtain approval signatures from adjacent neighbors Submit Project Submission Form Equipment (excluding panels) must be concealed from view on the street 6
Net Metering Included in Xcel s Solar Rewards agreement You pay for the net energy you draw from the grid at normal rates Approx. $0.08-$0.09 / kwhr + $6.25 They will pay for the net energy you supply to the grid at their cost No greater than $0.032 / kwhr in winter Rates based on the Xcel Energy tariff with the Public Utility Commission: http://www.xcelenergy.com/docs/psco_elec_entire_tariff.pdf 7
Codes & Regulations Jefferson County Adopted Codes 1 National Electric Code 2005 Detailed and specific Requirements for photovoltaic systems in Article 690 NEC 2008, if adopted later, would add a requirement that equipment be identified and listed for the application Fire Codes May Apply West Metro Fire District 2 International Fire Code 2006 1 http://www.co.jefferson.co.us/building/building_t45_r14.htm 2 http://www.westmetrofire.org/docs/2007/codes/2007_03_firecode.pdf 8
Site Suitability 9
Site Suitability 10
Site Suitability 11
Site Suitability At most, 30 X 130 Watt Modules would fit. 12
Site Suitability However, significant shadowing due to trees and the chimney would occur at times 13
Site Suitability N Roof faces 35d off of true south ±60 clear view required by Solar Rewards Contract is violated by three trees and chimney I would not be eligible for the full rebate. 14
Insurance Presently have homeowner s insurance through State Farm They said a PV system would be considered part of the structure and therefore already covered However, we may have to increase the amount insured The Xcel Interconnection Agreement requires $300,000 liability insurance 15
Maintenance No maintenance requirement anticipated I am assuming no batteries 16
Equipment - Modules Xcel Energy requires modules from the Go Solar California list of eligible equipment Researched on the Web to find pricing for some of the modules on that list All of the modules priced were UL listed Power output warranties ranged from 20 to 25 years 17
Equipment - Modules Histogram of PV Module Price/Watt Data 30 25 20 15 10 5 0 $3.50- $3.99 $4.00- $4.49 $4.50- $4.99 $5.00- $5.49 $5.50- $5.99 $6.00- $6.49 $6.50- $6.99 $7.00- $7.49 18
Equipment - Inverters The Go Solar California list of eligible equipment includes inverters Researched on the Web to find pricing for some of the modules on that list All of the modules on the list were UL 1741 certified Most were also certified to IEEE 1547 or IEEE 929 19
Equipment - Inverters Histogram of Inverter Price/Watt Data 40 35 30 25 20 15 10 5 0 $0.20- $0.39 $0.40- $0.59 $0.60- $0.79 $0.80- $0.99 $1.00- $1.19 $1.20- $1.39 $1.40- $1.59 $1.60- $1.79 $1.80- $1.99 20
Sizing You get the most for your money if you generate exactly what you use. Utility pays back at cost Retail rate is $0.08 - $0.09. Buy back is less than $0.032 1 Some of the costs are independent of size (design, inspections, installation, equipment pricing has an offset) Our usage last year was 7,732 kwh The average generation in Colorado is about (1900 kwh) / (kw rating) per year 2 Therefore, the optimal size is (7,732 kwh / yr) / (1900 kwh / kw-yr) = 4 kw 1 http://www.xcelenergy.com/docs/psco_elec_entire_tariff.pdf 2 A Consumer s Guide to Buying a Solar Electric System, Produced for the US Department of Energy by the National Renewable Energy Laboratory, September 1999. 21
Cost Estimate My Estimate for a 4kW Grid Parallel System Assuming I cut down three trees and received the full rebate Notes PV Modules $19,880 4 kw * $4.97 / W Based on pricing research Inverter $2,920 4 kw * $0.73 / W Based on pricing research Engineer Check $750 Personal communication with Pat Osborn of Great Plains Power, 4/11/2008 Other Equipment $2,355 My guess Installation $7,000 Dan Ramsey, David Hughes, "The Complete Idiot's Guide to Solar Power for Your Home", Alpha Books, 2007, page 173 Inspections $200 $100 / hour Permit $1,002 Total $34,107 Total / W $8.53 http://www.co.jefferson.co.us/building/building_t45_r55.htm $69 for first $2,000 + $3 / $100 http://www.co.jefferson.co.us/building/building_t45_r55.htm Rebate -$18,000 $4.50 Per Watt Net Cost $16,107 Net Cost / W $4.03 22
Merits as an Investment Inflation 1 One Month Supply of Electricity Based on Bureau of Labor Statistics Price per month $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 (644 kwh per month) Oct-95 Jul-98 Apr-01 Jan-04 Oct-06 Jul-09 Actual 5% fit 1 http://data.bls.gov/pdq/outside.jsp?survey=cu 23
Merits as an Investment PV System Value vs. Tax Free Bond Fund $40,000 Value in Today's Dollars $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 4/1/08 3/30/18 3/27/28 3/25/38 PV System Tax Free Bond 1 https://personal.vanguard.com/us/fundssnapshot?fundid=0044&fundintext=int 24
Gasoline Prices Are Going Nuts One Month Supply of Electricity and Gasoline Based on Bureau of Labor Statistics and My Fit $350 $300 $6.60 / Gallon Price per month $250 $200 $150 $100 (50 Gallons, 644 kwh) electricity 5% fit gasoline 16% fit $50 $0 Oct-95 Jul-98 Apr-01 Jan-04 Oct-06 Jul-09 Apr-12 Dec-14 1 http://data.bls.gov/pdq/outside.jsp?survey=cu 25
Merits of adding a fuel efficient vehicle for commuting I presently commute 20 miles a day in a Ford F150 I need to keep our truck for towing our boat How does buying a 2004 Ford Focus with 50,000 miles compare to the status quo? 26
Added Car Investment Merits Fuel Savings and Added Cost $4,000 $3,500 $3,000 Todays Dollars $2,500 $2,000 $1,500 $1,000 $500 Yearly Fuel Savings Added Insur. & Maint $0 -$500 -$1,000 Apr- 08 Apr- 09 Apr- 10 Apr- 11 12 13 14 15 16 27
Added Car Investment Merits Depreciation With and Without the Added Car $4,000 $3,500 Yearly Depreciation $3,000 $2,500 $2,000 $1,500 $1,000 $500 Truck Deprec w/o Car Truck Deprec with Car Added Car Deprec Added Yearly Deprec. $0 Apr- 08 Apr- 09 Apr- 10 Apr- 11 12 13 14 15 16 28
Added Car Investment Merits Cumulative Savings and Odometer Reading $14,000 180,000 $12,000 160,000 $10,000 140,000 Todays Dollars $8,000 $6,000 $4,000 $2,000 120,000 100,000 80,000 60,000 Savings Car Mileage Truck Mileage $0 40,000 -$2,000 20,000 -$4,000 Apr- 08 Apr- 09 Apr- 10 Apr- 11 12 13 14 15 16 17 18 0 29
Equipment References Used http://www.gosolarcalifornia.org/equipment/pvmodule.php http://pvsolarmodules.com/kyocera.html http://www.affordable-solar.com/kyocera-solar-panels.htm http://www.affordable-solar.com/solar.panels.htm http://www.day4energy.com/literature/day4_energy_spec_sheet_english.pdf http://www.evergreensolar.com/upload/195w_product_datasheets/s195_us_010408.pdf http://www.gepower.com/prod-serv/products/solar/en/downloads/gepv173_datasheet.pdf http://www.jatsgreenpower.com/astropower.html http://www.kyocerasolar.com http://www.pvsolarmodules.com/sanyo_solar_modules.html http://www.pvsolarmodules.com/sharp.html http://www.affordable-solar.com/solar.inverters.grid.tied.htm http://www.beyondoilsolar.com/inverters.htm http://www.jatsgreenpower.com/trace-list.htm#sw 30