Solar Seminar July 21st, 2018 Barry Cinnamon
Agenda 1. Company Overview 2. Solar Economics Cost of Electricity Solar Incentives Solar Costs Are You a Candidate? 3. Solar Technology PV Solar Shingles Battery Storage 4. Steps to Going Solar Process & Timing 5. Considerations for Selecting a Solar Installer 6. Current Industry Dynamics 7. Q & A
Cinnamon Energy Systems COMPANY OVERVIEW
Heritage of Solar Experience 2001 2010 2012
Silicon Valley s Premier Solar & Battery Storage Contractor Solar Made Easy Full-service solar installation company with a heritage of over 10,000 happy customers since 2001. Leading Energy and Equipment Guarantee 15 year energy output guarantee, 10 year workmanship guarantee, 25 year solar panel guarantee and 10-25 year electronics guarantee. Solutions to Meet Your Budget Offering Good Better Best solar solutions designed to meet your energy saving objectives while matching your budget. Your Local Home and Commercial Solar & Battery Storage Contractor Local building permit and inspectors know us. Our friendly work crews are employees, not outside contractors, and strive for your 100% satisfaction. Ongoing Local Service and Support Silicon Valley homeowners depend on Cinnamon Energy Systems for inverter repair/replacement, rooftop cleaning, removal and replacement for re-roofing, and wiring repairs.
Silicon Valley s Premier Solar & Battery Storage Contractor Certifications & Qualifications
Solar makes dollars and sense SOLAR ECONOMICS
Cost of Electricity PG&E s E-1 rate is tiered $0.20/kwh first tier (300 kwh/month) $0.28/kwh top tier (next 90 kwh/month) $0.40/kwh super user tier (over 390 kwh/month) Compare to rooftop solar at <$0.07/kwh
Cost of Electricity ETOU A rate $0.39/kwh peak from 3-8 PM summer weekdays $0.32/kwh off peak all other times Extra Battery Benefit
Cost of Electricity EV rate $0.45/kwh peak 2-9 PM $0.25/kwh partial peak 7 AM-2 PM and 9-11 PM $0.12/kwh off peak 11 PM-7 AM Extra Battery Benefit
Silicon Valley Clean Energy New Community Choice Aggregation (CCA) Program 100% carbon free electricity supplied over PG&E system Slightly better rates All rates (including solar) are 2% cheaper Special 100% renewable rate for $0.008/kwh extra (better for solar customers) Excess solar generation dollars are paid by SVCE (PG&E only reimburses for excess kwh) Automatic for all communities except San Jose, Palo Alto and Santa Clara Customers phased in gradually during 2017
Cost of Electricity Rates continue to rise - 5 to 6% per year average $/kwh $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 Average Tier Rate 2004-2017 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 A $200 per month bill could be $810 in 25 years! $0.05 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cost to Go Solar Example System System Size (watts) 6,050 System Output (kwh/year) 7,857 Current Electric Costs ($/yr) $2,600 Electric Costs with Solar $331 Estimated Annual Savings ($/yr) $2,269 Investment Summary Cost per watt $3.05 Total System Cost $18,449.00 Less - Investment Tax Credit ($5,535.00 ) Net Cost $12,914.00 Financial Benefits Simple Payback (years) 5.7 Tax Free Return on Investment 18% 25 Year Solar Electricity Cost ($/kwh) $0.066
25 Year Costs Cash vs. Financed $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 No Solar Solar - Lease/PPA Solar - Bank Loan Solar - PACE Loan Solar - Cash $10,000 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Year
Lease, Borrow or Buy? Financing Comparison Monthly Bill 25 Year Costs No Solar $216.69 $ 65,006 Solar - Lease/PPA $188.32 $ 56,495 Solar - Bank Loan $129.25 $ 29,458 Solar - PACE Financing $104.80 $ 25,878 Solar - Cash $27.56 $ 21,183
Are You a Candidate for Solar? Do you own your home? Is your average monthly electric bill $100 or more? Does your roof have minimal shade?
Choosing the Right Solution SOLAR TECHNOLOGY
How Solar Works
Solar Panels Current panels produce 250-360 watts per panel Panels are extremely reliable No moving parts Warranted by manufacturer for 25 years Lifetime expectancy ~40 years Our customers from 2001 are still going strong
Solar Panel Mounting Ordinary Rack Mounted Solution Aluminum rails mounted to roof Panels clamped to rails Popular with most installers but Slower to install higher labor costs Not aesthetically pleasing Lots of aluminum & wiring exposed
Solar Panel Mounting Built-in-Racking Solution No aluminum rails Racking is integrated into panels Panels clamp directly to roof Faster to install Very aesthetically pleasing Low profile Integrated wiring All black Array skirt at front available (but reduces air flow)
Installs on All Roof Types Composition Shingle
Installs on All Roof Types Flat Concrete Tile
Installs on All Roof Types Barrel Tile
Installs on All Roof Types Standing Seam
Installs on All Roof Types Metal Tile Cal-Pac
Installs on All Roof Types Flat Roof Copyright Copyright 2018, Cinnamon 2018, Cinnamon Energy Systems
Solar Inverters Solar Inverters convert DC power from panels to normal household AC current 3 basic inverters types: String Micro-inverter Power Optimizers
Solar Inverters String Inverters Pros String inverters are the simplest design Do not need to be installed directly adjacent to individual panels, making them somewhat easier to maintain Cons More difficult to troubleshoot if something goes wrong Any issues such as shading on one panel reduces performance of entire system Performance monitoring is limited to total system output vs. each individual panel New Rapid Shutdown requirements add substantial costs to string inverters no longer cost-effective
Solar Inverters Micro Inverters Pros Best suited for roofs that have shading or are oriented in multiple directions Uses power point tracking, - if one solar panel is shaded from the sun, the rest of the panels are not affected More reliable than string inverters Provides performance monitoring for each panel vs. entire system for string inverters Typically warranted for 25 years vs. 10 for string inverters Meet Rapid Shutdown requirements Cons Currently not designed to support Battery Storage More expensive
Solar Inverters Power Optimizers Pros Offer many of the same benefits as micro-inverters, but tend to be slightly less expensive More reliable than string inverters Can provide performance monitoring on each panel vs. entire system Well suited for Battery Storage (DC power can charge batteries directly) Meet Rapid Shutdown requirements Cons Only one established supplier
System Monitoring Consumption (red) Solar Production (green) Self Consumption (blue) Export to Grid (green bar) Battery Energy Level (blue line)
Alternative Solar Solutions Solar Shingles - aka Building Integrated Photovoltaic (BIPV) Great Concept Numerous products introduced over last decade: Atlantis, AstroPower, UniSolar, BP Solar, PowerLight, Dow, Suntegra, CertainTeed, and now Tesla We installed many of them Not Without Challenges! Historically high component and installation costs No commercially viable solutions available that make economic sense Longer payback - ~25 years vs. 5 to 7 for solar panels Numerous points of failure (3,000 wiring connections) Life expectancy unproven (few have lasted 10+ years)
Battery Storage Battery Storage Systems Are Cost Effective and Provide Free Backup Power Use solar to charge batteries during day Draw power from battery storage during peak energy periods when cost/watt is highest $3,000 California rebate plus 30% ITC EV electric rate with $0.45/kwh peak and $0.12/kwh off peak rewards battery storage Incremental cost about $7,000 with 5 to 10 year payback backup power as a bonus! Utility Service Main Breaker Panel Battery and Control System Solar Power System -Critical Loads Sub-Panel
Battery Storage In-House Battery Test Lab Hands-on technical evaluations Ensure we offer leading solutions for your home Evaluations based on installation and performance results, using commercially available products and software
Cinnamon Energy Systems Offering Good Better Best
Solar installation process STEPS TO GO SOLAR
Process for Going Solar Solar Quote Contract Submit Plans Pull Permits Install Inspection Approval to Operate System Live 1-2 weeks 2-3 days 1-2 days 2 weeks
Important Facts to Consider SELECTING A SOLAR & BATTERY BACKUP CONTRACTOR
Selecting a Solar Contractor Consider: Years in business Certified, licensed, insured References, reviews & reputation Products that look best on your home & leverage new storage technology Workmanship & product warranties Experience with permitting from your jurisdiction Avoid: Selecting on price alone Hard sell tactics $0 Down offers Companies using sub-contractors Bids that do not specify products to be installed New installation companies Companies without in-stock inventory
Market Events Will Drive Increased Cost CURRENT INDUSTRY DYNAMICS
Solar Tariffs President Trump announced a 30% tariff on solar panels and components (washing machines too) imported from nearly every country in the world These tariffs will increase the price of a typical 6,600 watt rooftop solar installation by about $0.20/watt or about $1,300 Tariff went into effect February 7, 2018 Tariffs do not apply to inventory that is already in the U.S 10% aluminum tariffs will increase racking costs by about $100
Solar Investment Tax Credit (ITC) Currently 30% for solar and storage Steps down to 26% in 2020, 20% in 2021 and 0% after 2021 Solar tax credits in U.S. were preserved as part of tax reform
Thank You Thank You Questions?