Solar Energy Costs For Mc Gehee Kelsey

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Kelsey explored the costs of solar energy.

Kelsey explored the costs of solar energy.

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  • Slde 1: what is solar energy Slide 2: pv Slide 3: thermal Slide 4: who benefits from solar energy Slde 5: solar pv installation costs Slide 6: solar thermal installation costs Slide 7: business energy investment tax credit Slide 8: property tax Slide 9: calculating costs Slide 10: calculating payback time Slide 11: mcgehee energy costs Slide 12: testing the numbers for solar energy

Transcript

  • 1. THE COST OF GOING SOLAR FINANCING SOLAR PANELS AND SOLAR THERMAL TECHNOLOGIES By Kelsey Zeitzer
  • 2. What’s Solar Energy
    • Solar energy creates useable power form sunshine
    • Photovoltaic or PV uses sunlight to generate electricity
    • Thermal solar uses sunlight to heat water
  • 3. - Sunlight absorbed & energy generated
    • PV cell: convert solar energy into electrical power
    • Takes energy - convert PV
      • (DC) into energy that can be used at home (AC)
    • - less efficient
      • sunlight to electricity conversion rate at 12%
    • Require a lot of space & collectors
    • 5Xs + costly than thermal
    • Usable year round
    • heating water & storing it
    • number of different solar thermal designs
    • More efficient
      • use up to 70% of the suns energy
    • requires less space & fewer collectors
    • difficult to add passive solar collectors to existing buildings
      • you will have to use an active system which means larger storage tank
    • 5Xs cheaper than PV
    • Wont work all year round
    Solar Cells Or Photovoltaic (PV) Solar Thermal Energy
  • 4. Who Solar Energy benefits
    • The Environment!
    • Solar energy reduces amount of fossil fuel being burned
    • reducing the pollutants & CO2 polluting the atmosphere
    • You!
    • - Reduces your energy bill
    • Federal, State & utility financial incentives
    • Adds value to property
    • Gain energy independence
    • Good investment in a sustainable future for yourself & your loved ones
    • The Community!
    • safer: improves national security
    • Protects future generations
    • Helps the economy!
  • 5. Solar PV installation costs
    • Commercial based solar electric systems
      • Typically cost: $25,000 to $350,000 installed
      • Multiple variables influence the cost of these systems:
        • Amount of utility grid power to be offset
        • Selected type of system
        • Mounting options
      • Third party financing available
  • 6. Solar thermal installation costs
    • Commercial water heating systems
      • Typically cost: $15,000 to $250,000 installed
      • Multiple variables influence cost of these systems:
        • Amount of water to be heated
        • Desired water temperature
        • Selected system collectors
        • Desired function(s) of the system
      • Typical payback period for solar hot water heating systems is 6-8 years
      • Third party financing is available
  • 7. Federal Tax Credit: Business Energy Investment Tax Credit (ITC)
    • Corporate tax credit
    • 2005: Energy Policy Act
      • S.48: Energy Business Energy Tax Credit
    • Oct. 3, 2008: Economic Stabilization Act of 2008
      • 179D: Energy Efficient Commercial Buildings Tax deduction
    • Allow AMT (alternative minimum tax) filers to take credit
    • 30% tax credit of expenditures
    • Extended for 8 yrs --> until Dec. 31 2016
    • NO maximum credit
    • Eligibility:
      • Technologies: Solar water heat, photovolatics ect.
      • Equipment used to:Generate electricity,heat/cool structures,provide solar process heat
  • 8. LA Credit:Business Energy Investment Tax Credit (ITC)
    • Corporate tax credit
    • Allow AMT alternative minimum tax filers to take credit
    • 30% of tax credit of expenditures
    • Max: fuel cells $1,500 per .05kW
    • Eligibility:
      • Technologies: solar water heat, photovolatics etc.
      • Equipment used to: generate electricity, heat/cool structures, provide process heat
  • 9. Energy Efficient Commercial Buildings Tax Deduction
    • Corporate deduction
    • Commercial, construction, state gov, fed gov
    • Energy Policy Act 2005
      • Tax deduction for energy efficient commercial buildings
    • Extended through 2013
    • Eligibility
      • Technologies: water heaters, lighting, lighting controls / sensors, chillers, furnaces, boilers, heat pumps, air conditioners, etc.
    • Ranging from $0.30-$1.80 pr sq-ft depending on technology & amount of energy reduction
  • 10. MACRS + Bonus Depreciation
    • Corporate deduction
    • Modified Accelerated Cost Recovery System (MACRS)
      • Business recover investments in certain property via depreciation deductions
      • Property includes:
        • Solar electric & solar thermal technologies etc.
    • Federal Economic Stimulus Act 2008
      • 50% bonus depreciation provisions for renewable energy systems
    • American Recovery & Reinvestment Act 2009
      • Provision from 2008 extended to 2009
      • Requirements:
        • Recovery of 20 years (or less) under normal fed. Tax depreciation rules
        • Taxpayer must claim deduction
        • Solar technologies acquired 2008 or 2009
        • Solar technologies working by 2010
  • 11. Property Tax
    • Solar Systems are an asset that add value to your property
    • The value of solar energy systems are not subject to property tax in Louisiana
  • 12. Calculating the payback time
    • Years to Breakeven
      • net cost - property value increases
      • “ pre-tax” average annual utility savings
      • = years to break even
    • Break Even point:
      • Costs / expenses = revenue
      • NET = ZERO (no net loss or gain)
      • EX) you spend $40 you make $40
  • 13. Years to Break Even
      • EX) Solar Panels
        • Entergy bill: 1,000 a month
        • Solar Panels cost: 10,000
        • Save money over time
        • So the years to break even is how many years it would take to get a net zero (recoup costs)
      • Hybrid Cars
        • Cost extra but your not paying as much for gas
        • So if gas is cheep than the years break even will be longer but if gas is expensive then the years to break even will be short
  • 14. Years to Break Even (cont) “ pre-tax” average annual utility savings: how much your not spending on Entergy Net cost - Property value increases Saving $2 $10 - $5 = 5 Property value increases by $5 Property value increases: property value increases with solar panels Net cost: what its worth to put on solar panels = Years to break even (Net cost - property value increases) (“Pre-tax” average annual utility savings) What it means (Net cost - property value increases) (“Pre-tax” average annual utility savings) $10 - $5 $2 = Years to break even = 2.5 years Example $10 for solar panels
  • 15. McGehee Energy Costs Date Building Account # KW pr Month Price 8/18/08 2343 Prytania 1286158 66600 $7,817.41 9/11/08 2343 Prytania 1286158 49800 $7,119.57 10/16/08 2343 Prytania 1286158 80000 $11,693.63 11/11/08 2343 Prytania 1286158 60000 $7,690.39 12/11/08 2343 Prytania 1286158 49000 $7,547.29 1/12/09 2342 Prytania 1286158 73600 $8,686.29 2/13/09 2343 Prytania 1286158 62800 $7,501.12
  • 16. Average Monthly Bill Cost $8293.67
  • 17. Average Kilowatts per month 63,114.29 kW/Month
  • 18. Electric Rate $.1314kWh
  • 19.  
  • 20.  
  • 21.  
  • 22. Assumptions
  • 23. Solar Electric Numbers
  • 24. What to examine
    • Estimated system size
    • Estimated system cost
    • Financial incentives
    • Savings and benefits
  • 25. Estimated System Size
  • 26. Estimated System Cost
  • 27. Financial Incentives
  • 28. Savings and Benefits
  • 29.  
  • 30. Summary
    • Renewable Technologies in the future
      • Help the economy
        • More domestic jobs that cannot be outsourced
        • Less money spent on foreign oil and natural gas
      • Help the planet
        • Our planet needs responsible inhabitants
    • Energy costs are going to keep going up
    • Energy self sufficiency is key for financial freedom
    • Investing in solar technologies will help you gain financial freedom
  • 31. Works Cited
    • “ Business Energy Investment Tax Credit (ITC). ” DSIRE: LA Federal Incentives for Renewables and Efficiency. February 18 2009. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US02F&State=federal&currentpageid=1&ee=1&re=1 >.
    • “ Commercial Solar Electric Power (PV). &quot; APS: Alternative Power Solutions. 2008. April 26 2009. < http://www.apowersolutions.com/index.php?p=1_5_Solar-Electric-Power-PV- >.
    • “ Commercial Solar Water Heating. ” APS: Alternative Power Solutions. 2008. April 26 2009. < http://www.apowersolutions.com/index.php?p=1_6_Solar-Water-Heating >.
    • Dan. “ Solar Thermal vs. Solar PV. ” CalFinder: residential Solar Power Contractors. July 30 2008. April 26 2009. <http://solar.calfinder.com/blog/going/solar-thermal-vs-solar-pv/>.
  • 32.
    • Dan. “ The Lowdown on Solar Thermal Savings. ” CalFinder: residential Solar Power Contractors. May 28 2008. April 26 2009. < http://solar.calfinder.com/blog/solar-information/the-lowdown-on-solar-thermal-savings/ >.
    • “ Energy Efficient Commercial Buildings Tax Deduction. ” DSIRE: LA Federal Incentives for Renewables and Efficiency. October 7 2008. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US40F&State=federal&currentpageid=1&ee=1&re=1 >.
    • “ Financing Solar & Energy Efficiency Projects. ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. <http://www.solar-estimate.org/index.php?page=rightforme&subpage=finance>.
    • “ How do you calculate the payback time? ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. <http://www.solar-estimate.org/showfaq.php?id=9&fromsearch=1>.
    • Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009). ” DSIRE: LA Federal Incentives for Renewables and Efficiency. February 19 2009. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US06F&State=federal&currentpageid=1&ee=1&re=1 >.
    • 23 2009. < http://www.conergy.us/desktopdefault.aspx/tabid-2343/ >.
  • 33.
    • “ My Solar Estimator. ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. < http://www.solar-estimate.org/index.php?verifycookie=1&page=solar-calculator >.
    • “ The American Recovery and Reinvestment Act of 2009 (Recovery Act). ” U.S. Department of the Treasury: American Recovery and Reinvestment Act. May 5 2009. April 23 2009. < http://www.treas.gov/recovery/ >.
    • “ Thy Solar? ” Conergy USA: Renewable Energy. 2008. April