Global Market Demand for PV – 2009
Global Demand for PV 2005 - 2013 Market expected to decline 33% in 2009 from 2008’s 5.2GW Prices expected to decrease 12% ...
BenefitsEnvironmentalUtility BenefitsPV SalesJob Creation
Utility BenefitsPortfolio diversificationStronger position in future as we become lessdependent on fossil fuels
PV SalesModule prices have fallen 12% since 2008PV sales will be down about 30% globallyfor 2009PV sales expected to incre...
Job CreationThe United Nations Environment Programestimates PV job creation at 7 to 11 per MWpof solar power installedTop ...
Current Distribution of PV Jobs
Support Mechanisms for PV
Essential Components     of a Successful FiT SystemLong Term Contracts (20+ years)Price Guarantee  Reasonable rates of ret...
Essential Componentsof a Successful FiT System (cont.)Flexibility to change with a dynamicmacro environmentState budgets m...
Market Barriers for PVShortage of information and little consumerawarenessInsufficient product standardsInconsistent inter...
Market Barriers for PV (cont.)Inconsistent and insufficient state and localfinancial incentivesLack of flexible and proven...
German ModelSpread cost equally across all consumersNot a burden on taxpayersWorks independently from state economies
Gainesville Regional Utilities         (GRU) ModelZoning Guidelines (Alachua County) Rooftop Ground Based Systems    Speci...
Gainesville Regional Utilities         (GRU) ModelStandards  IEEE 1547  IEEE 1262 - 1995  IEEE 929  UL1741  National Elect...
Gainesville Regional Utilities         (GRU) Model82,000 Residential Customers8,000 Commercial CustomersIncrease Fuel Char...
GRU FiT Rate and Degression Schedule
Breakeven AnalysisAssumptions: PV System: 25 kW installed capacity 25 year system life expectancy Produces 36,250 kWh/year...
FiT Income Analysis
Success of GRU ModelCurrently: GRU is at capacity with 4 MWof electricity generated from PVGRU has signed up nearly 100 cu...
Local PV Sales from FiTGainesville, FL  In Gainesville, currently 35 solar rooftops  since March 1, 2009  Cost of these sy...
Other Applications of FiT in the U.S.  State of California  Green Mountain Power (Vermont)  Eugene Water and Electric Boar...
A Well Designed Feed-in Traff Will: Be designed with long-term contracts Not be a burden on tax payers Increase demand and...
How a successful Feed-in Tariff system will stimulate the growth of the PV industry [PV 2009]
How a successful Feed-in Tariff system will stimulate the growth of the PV industry [PV 2009]
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How a successful Feed-in Tariff system will stimulate the growth of the PV industry [PV 2009]

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- Policies and incentives
- Economic analysis of implementation of FiT
- Demand analysis and benefits
Jessica Glenn, Market Analyst, Global Market Consultants Inc

Published in: Business, Technology
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How a successful Feed-in Tariff system will stimulate the growth of the PV industry [PV 2009]

  1. 1. Global Market Demand for PV – 2009
  2. 2. Global Demand for PV 2005 - 2013 Market expected to decline 33% in 2009 from 2008’s 5.2GW Prices expected to decrease 12% in 2009 for installed systems
  3. 3. BenefitsEnvironmentalUtility BenefitsPV SalesJob Creation
  4. 4. Utility BenefitsPortfolio diversificationStronger position in future as we become lessdependent on fossil fuels
  5. 5. PV SalesModule prices have fallen 12% since 2008PV sales will be down about 30% globallyfor 2009PV sales expected to increase 22% for 2010
  6. 6. Job CreationThe United Nations Environment Programestimates PV job creation at 7 to 11 per MWpof solar power installedTop three jobs created by PV systems: Manufacturing Operations Installer Sales
  7. 7. Current Distribution of PV Jobs
  8. 8. Support Mechanisms for PV
  9. 9. Essential Components of a Successful FiT SystemLong Term Contracts (20+ years)Price Guarantee Reasonable rates of return for FiT Consumers Access to credit line (guaranteed payback period)Look at Long-Term Planning in conjunctionwith other policiesAnnual rate must decrease (depending ontechnological progress)
  10. 10. Essential Componentsof a Successful FiT System (cont.)Flexibility to change with a dynamicmacro environmentState budgets must not interfere Simple structuredLow managerial/administrative costsLarge investments needed Private capital, long-term stability of income, long-term PPA guaranteed
  11. 11. Market Barriers for PVShortage of information and little consumerawarenessInsufficient product standardsInconsistent interconnection, net metering,and utility rate structuresInadequate codes and complex and expensivepermitting procedures
  12. 12. Market Barriers for PV (cont.)Inconsistent and insufficient state and localfinancial incentivesLack of flexible and proven financingmechanismsLimited education for and insufficientnumbers of trained and experiencedpersonnel and services
  13. 13. German ModelSpread cost equally across all consumersNot a burden on taxpayersWorks independently from state economies
  14. 14. Gainesville Regional Utilities (GRU) ModelZoning Guidelines (Alachua County) Rooftop Ground Based Systems Special Exemption 4 – 9 Month DelayContracts Interconnection Agreement Solar Energy Purchase Agreement (SEPA)
  15. 15. Gainesville Regional Utilities (GRU) ModelStandards IEEE 1547 IEEE 1262 - 1995 IEEE 929 UL1741 National Electric Code City of Gainesville Electric Code
  16. 16. Gainesville Regional Utilities (GRU) Model82,000 Residential Customers8,000 Commercial CustomersIncrease Fuel Charge from 6.1¢/kWh to6.178¢/kWh (increase of .078¢)
  17. 17. GRU FiT Rate and Degression Schedule
  18. 18. Breakeven AnalysisAssumptions: PV System: 25 kW installed capacity 25 year system life expectancy Produces 36,250 kWh/year $0.32 x 36,250 = $11,600/year in FiT revenue Installed cost of system: $132,000 Breakeven at 11 years 14 years profitable operation
  19. 19. FiT Income Analysis
  20. 20. Success of GRU ModelCurrently: GRU is at capacity with 4 MWof electricity generated from PVGRU has signed up nearly 100 customers toinstall 4 MW of solar panels each year for thenext three years.
  21. 21. Local PV Sales from FiTGainesville, FL In Gainesville, currently 35 solar rooftops since March 1, 2009 Cost of these systems: $30 million
  22. 22. Other Applications of FiT in the U.S. State of California Green Mountain Power (Vermont) Eugene Water and Electric Board (Oregon) WE Energies (Wisconsin) Madison Gas and Electric (Wisconsin) Washington State
  23. 23. A Well Designed Feed-in Traff Will: Be designed with long-term contracts Not be a burden on tax payers Increase demand and drive costs down by creating economies of scale Help the PV industry create quality technologies with increasingly efficient performance Create secure investment options Spur substantial job creation

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