Steps to Installing Solar for Residential Customers

The Future is Clean Energy Steps to Installing Solar for Residential Customers Courtesy of DOE/NREL 1

Contact Information Pete Shoemaker 851 Howard St., CA 94103 (415) 973-8850 pjsy@pge.com 2

Just Another Product Solar is NORMAL. Not unusual or exotic anymore A solid consumer product that is becoming more and more widespread 3

The Full Energy Picture California Public Utilities Commission (CPUC) Loading Order 1. Conservation and efficiency 2. Demand response 3. Renewables 4. Conventional generation 4

The Full Energy Picture Why Energy Efficiency Before Solar? Bigger Bang for your Buck Less usage = smaller energy bills Cheap, easy, and less destructive to implement than other methods of energy Less usage smaller solar system needed lower cost Energy Audit Required to Participate in CSI Incentive Program Educate yourself and your customers Analyze usage Learn what to do 5

Energy Efficiency First PG&E Smart Energy Analyzer -- online, fast and easy Many no-cost and low-cost measures -- Power strips to turn off electronics when not in use -- CFL lights -- Energy Star appliances -- Many other measures 6

The Full Energy Picture PG&E Portfolio Solution 1) Reduce consumption as much as possible. 3) Offset any remaining carbon emissions. ClimateSmart Reduce Energy Use Partnership Education Outreach Renewable Power Supply 2) Get the greenest power you can. 7

PG&E SOLAR INTERCONNECTIONS Over 40,000 PG&E customer solar installations Approximately 40% of all grid tied in U.S. 2006: 4,345 2007: 6,574 2008: 6,534 2009 (through July): 5,217 300,000 30,000 Cumulative kw Cumulative Customers 250,000 25,000 200,000 20,000 kw 150,000 15,000 Customers 100,000 10,000 50,000 5,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0 8

Contact & Choose a Contractor Find installers Word of mouth ask friends and neighbors www.gosolarcalifornia.org best site for both PV and solar thermal -- CalSEIA Members http://calseia.org/, Find an Expert link Obtain bids Evaluate bids as you would with any contractor 9

Evaluating Contractors Interview 2-3 potential contractors Don t be afraid to ask questions Especially if there is something you do not understand Ask for personal references from previous customers Get everything in writing Do not accept verbal promises Any work over $500 must have a contract Verify their contractor s license California State License Board: www.cslb.ca.gov Better Business Bureau: www.bbb.org 10

Financing Three different ways to buy: 1. Cash sale 2. Solar lease 3. Power purchase agreement 11

Three Ways to Buy 1. Full purchase (cash or borrowing) You Owner of system Borrow money or pay cash Full payment up front Maintain and monitor system $$$ PV Vendor Design and install Sell Honor warranties (equipment & labor) Economics: Cash / total savings Loan pmt. / monthly savings 12

2. Solar Lease Three Ways to Buy You Low or no money down Fixed lease payment Possible buyout in the future Economics: Lease pmt. / monthly savings $ $ PV Vendor Owner of system Design and install Lease Maintain and monitor system Honor warranties (equipment & labor) Remove system at end if needed 13

Three Ways to Buy 3. Power Purchase Agreement (PPA) You Low or no money down Monthly power payment Possible buyout in the future Economics: Monthly pmt. / monthly savings $ $ PV Vendor Owner of system Design and install Sell power Maintain and monitor system Honor warranties (equipment & labor) Remove system at end if needed 14

One-Minute Summary Rent a portion of utility grid output CURRENT Same electricity Buy your own power plant POSSIBLE RENT Courtesy of DOE/NREL OWN Source: Pete Shoemaker Your home needs electricity The basic economics are just like the rent vs. buy of purchasing a home. 15

One-Minute Takeaway It works reliably for a long time. It requires good sun access in the middle of the day. Our weather is great fog is a minor factor. It is not taxable and will likely raise the value of your house. Accurate financial analysis is key. 16

Solar Overview Solar Pool Swimming pool heating 80 85 degrees May to October Solar Thermal Domestic Hot Water (DHW) 120 140 degrees All year Source: Pete Shoemaker Heats water 17

Solar Overview Solar Electric Photovoltaics (PV) Produces electricity Courtesy of DOE/NREL 18

Photovoltaic Effect Solar Electric photo = light; voltaic = produces voltage Photovoltaic (PV) systems convert light directly into electricity (using semi-conductor technology) 19

PV Terminology Cell Module Array Cell Module or Panel Courtesy of DOE/NREL 20

Crystalline Silicon PV Products Source: DOE National Renewable Energy Laboratory Firm, like crystals Longest track record, over 50 years Most common, over 85% of the market Highest efficiencies: avg. 15%, up to 22% Requires about 100 sf. per kilowatt 21

Thin Film PV Products Source: DOE National Renewable Energy Laboratory Can be applied on many different materials Longevity still to be proven Production growing at high rate Lower efficiencies: avg. 7%, up to 15% Has potential for big cost reduction Requires about 200 sf. per kilowatt 22

Inverter Inverter DC AC Changes Direct Current (DC) to Alternating Current (AC) 23

Typical System Components Array Inverter Meter Panel Balance of System (BOS) Source: Darren Bouton Loads 24

Typical System Components 1. Solar array 2. Inverter 3. House electrical panel Source: PG&E 25

Net Metering The utility grid is a twoway street! Electricity can be sent back to the grid by the customer. Source: Andy Black X Eliminates the need for batteries. Reduces cost and maintenance. Ensures a constant supply of electricity. 26

Net Metering Sell Power to the Utility by Day Buy Power at Night and Winter. Exchange at retail Annual billing cycle Understanding PV Financial Analysis 2006 Andy Black. All rights reserved. 27

Net Metering kwh/mo Average monthly usage PV system production 750 Roll over 500 250 May SUMMER October WINTER April 28

Net Metering kwh/mo Average monthly usage PV system production 750 The surplus covers the shortfall, and your yearly bill is minimal. 500 250 May SUMMER October WINTER April 29

Net Metering kwh/mo Average monthly usage PV system production 750 PV system produces less than your yearly usage. 500 You pay this amount 250 May SUMMER October WINTER April 30

Net Metering kwh/mo Average monthly usage PV system production 750 PV system produces more than your yearly usage. 500 You are paid a different rate for this amount TBD. 250 May SUMMER October WINTER April 31

Grid-Tied System Green energy from your own PV system. The reliability and security of the utility company. Best of both worlds. 32

Ground Mounted Residential Source: Pete Shoemaker Courtesy of DOE/NREL 33

Rooftop Solar Roof Tiles Courtesy of DOE/NREL 34

Reliability Mature technology over 50 years old Essential to the space program Millions in use Long warranties backed by large, stable companies Products tested and approved by CEC 35

Technology Summary No moving parts Reliable with long warranties Very widespread Scalable, adaptable Low footprint Big environmental benefits 36

Will it work for me? Criteria, in order of importance: 1. Shading 2. Shading 3. Shading 4. Orientation (north-south) 5. Tilt (from horizontal) 6. Weather 37

Sunset Shading Solar Window Shade-free from 9 to 3 Sunrise Good chance for PV 38

Shading Bad chance for PV 39

Orientation For tilted roof: North Not good West Good Very good OK East South 40

Orientation N W E S Overhead maps 41

Weather Source: www.sf.solarmap.org 42

Weather California climate ideal for solar Panels produce in all light Fog has cooling effect, which raises efficiency Microclimates likely less than 15% loss from normal 43

Roof Issues Don t put a new PV system on an old roof! Minimum roof life should be 5 7 years. Good idea to do PV and roof at same time Estimate for panel removal/replacement is $1,000 per Kw of system size. Source: LondonFlatRoofing.co.uk 44

Wash panels Maintenance Once or twice a year regularly. Check for any debris such as branches. Make sure trees don t grow to shade system. Check production Monitoring (web enabled) is desirable Check inverter periodically Check utility bills 45

Can I afford it? Is it too expensive? Compared to what? Let s see what you have now 46

Current Situation PG&E monthly electric bill for a large home user: 1,698.00 5 rate tiers = $ 41.96 = $ 14.31 = $ 57.37 = $ 113.63 = $ 218.48 $ 445.75 Used 1,698 Kwh costing $ 445.75 1 2 3 4 5 47

E-1 1 / PG&E Standard Rate Schedule (Residential) 40.0 37.1 35.0 32.2 30.0 Cost (cents / kwh)) 25.0 20.0 15.0 11.4 13 23 Solar reverses the rate tier effect 10.0 5.0 Longer payback Shorter payback 0.0 Less Than 100% 101% - 130% 131% - 200% 201% - 300% over 300% Rate Tier (% of baseline) 48

California Solar Initiative (CSI) Helps people buy solar electric systems. Official Goal: To transform the solar market in California through declining subsidies, so that after 10 years it no longer needs subsidies. 49

The CSI makes PV Economical: Gives financial incentives to lower the cost Secure Screens and tests equipment Requires long warranties Helps screen and check installers Standardizes production estimates Easy Helps installers handle everything 50

CSI Incentives EPBB = Expected Performance-Based Buydown PBI = Performance-Based Incentive EPBB PBI Overall outline: Current step for residential. Incentives step down according to amount of PV installed (MW) 51

Other Incentives Local city/county incentives and financing http://www.dsireusa.org Federal Tax Credit 30% of net cost No cap Extended through 2016. Tax Incentives for Businesses Accelerated Depreciation (first 5 years) Resources SEIA Guide to Federal Tax Credits http://calseia.org/news/general/tax-credit.html 52

PV Statistics & Performance for the Average Family of Four (monthly electrical bill $100-$200) 4.0 Kw AC System COST (before rebate = $9,000 / kw) $36,000 REBATE (est. $600 / kw) $2,400 TAX CREDIT $10,080 NET COST $23,520 kwh Production Space requirements ~ 6,500 kwh / year ~ 350-500 s.f. Avg. cost of power now ($150/mo) $.18/Kwh 25-yr. cost of power (est.) $.18/Kwh 40-yr. cost of power (est.) $.13/Kwh 53

Analyzing Bids: Key Information 1. Full price, before incentives. This includes all adders (such as extra roof charges), and extras (such as monitoring), an estimate for permit fees (around $300), and taxes. 2. The system size in CEC AC watts (industry standard). Do not accept just the DC system size. 3. The per-watt price. This is determined by dividing the full price by the system size. This is the unit price that allows you to compare apples to apples. It will typically be around $9.00/watt. 4. Warranty Information. Make sure you understand what is and is not covered and who to contact 54

Analyzing Bids: Per-Watt Price Base price: $29,000 Roof adder: $2,000 Permit fee: $300 Total: $31,300 System Size: 4.0 Kw DC 3.38 Kw AC (CEC) (3,380 watts) Per-watt price: $31,300 / 3,380 = $9.26/watt 55

Before System Completion Make sure you are receiving new equipment Compare serial numbers on each module to the invoice/contract Don t t let payments get ahead of the work Make sure project is complete before making final payment While uncommon, solar panel theft occurs Make sure your contractor safeguards against this or look into insurance 56

Final Word: Don t t forget the bottom line Paper Wealth 57

The Future is Clean Energy Pete Shoemaker (415) 973-8850 pjsy@pge.com 58