BIPV: Marketing Tool or Market Reality


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A deck I presented at Intersolar North America in July 2009. The intent was to demonstrate my thoughts on BIPV definitions, product categories, and important market trends. I hope to be posting a cleaner version in the future.

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BIPV: Marketing Tool or Market Reality

  1. 1. BIPV: Marketing Tool or Market Reality Presentation for Intersolar US July 14, 2009 Approved for Public Distribution - Copyright 2009 1
  2. 2. Forward–looking statements In addition to historical information, this presentation contains forward–looking statements that are based on assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward–looking statements. These factors include, among others, the following: general economic and business conditions; the company’s cost of operations; the success of cost containment initiatives, including costs arising from changes in regulations; availability and cost of capital; the success of growth initiatives; the effect of regulation on consolidation of the industry; and the ability to generate earnings from capital investment. Approved for Public Distribution - Copyright 2009 2
  3. 3. Introduction This presentation is based on a simple progression 1. What are BIPV products? 2. Why BIPV? 3. How does Ascent Solar fit in the BIPV space? This discussion will also touch upon the following • The BIPV value proposition and challenge of the solar “brand” • Limitations of different PV technologies and product implications • Briefly explore relevant markets and support systems • Challenges to traditional solar business models Approved for Public Distribution - Copyright 2009 3
  4. 4. BIPV Products: What is BIPV? Building Integrated Photovoltaics (BIPV) are particular application and sub-segment within the grid-connected market More specifically, BIPV implies dual functionality In addition to generating electricity a BIPV system also provides: • Shading • Glazing (window) • Weatherization (roof) Electricity Electricity & Shade • Cladding (walls This presentation will focus on BIPV products No • That class of products purposefully design for particular building applications • Not commodity modules (framed or unframed) Yes Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 4
  5. 5. BIPV Products: Product Categorization Building Retro-Fit: The large majority (>90%) of solar PV Increasingly Integrated installations are on existing structures using various attachment technologies. Can be removed or replaced Building Applied Photovoltaics (BAPV): Product applied or attached to building. Removal may be difficult, but would not impact building integrity Building Integrated Photovoltaics (BIPV): Product operates as an energy generating device and building element. Removal would compromise building integrity Shades of Grey: classification is more of a sliding scale than distinct categories Perceived Value: I am not implying one is better than the other. The choice of which solution is influenced by many factors: aesthetics, economics, feasibility, etc. Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 5
  6. 6. BIPV Products: Façade and Related BIPV Products Facades: Products for the non-roof building envelope such as glazing or cladding • Opaque: Typically unframed laminates with glass encapsulation • Semi-Transparent: Glass module cells spacing (CZ) or etching (TF) to allow transmittance • Transparent: Uniformly translucent glass modules (a-Si) Shading: Products which extend out from the building envelope such as louvers, carports, awnings, or canopies Opaque Facade Semi-Transparent Transparent Shading Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 6
  7. 7. BIPV Products: Roof Element Products Residential Pitched Roof Products • Tile: Cells integrated into tile or shingle products for pitched roofs • Slate: Modules integrated as the weather surface in pitched roofs Low Slope Commercial Roof Products • Metal: Cells or Modules integrated into low slope metal roofs, such as standing seam (but not building applied) • Membrane: Cells or Modules integrated with TPO, EPDM, PVC, or other low slope roof membranes • Asphaltic: Bitumen, Mod-Bit or other asphaltic low slope roofs. Does not include product such as composite shingle for pitched roofs. Tile Slate Metal Membrane Asphaltic Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 7
  8. 8. BIPV Products: Survey of Product Marketplace My Product Survey Distribution by Product Category • 140 products • 99 companies Other, 2 Building Applied, 21 Photon Survey1 Facades - • 115 products Shading, 44 Fastening • 43 companies Systems 2, 15 Facades, Shading Device, and Residential Roof System are the Commercial greatest number of products Roof, 18 Residential The majority of BIPV MWp installed Roof, 40 Are building applied or integrated Products for Commercial Roof systems 1- As defined by the manufacturer, so many are simply unframed modules and/or laminates 2- Fastening Systems are Integrated installation systems that can incorporate a variety of module products Approved for Public Distribution - Copyright 2009 8
  9. 9. Why BIPV? Strong Demand Few of the independent industry analysts are tracking BIPV, but there are some reports which cite strong demand and growth potential in this market sub-segment “In 2007 the PV market raked in approximately €6.24 billion, with a growth rate of 46%. As a part of that growing market, in 2007 BIPV brought in €149 million with a market growth rate of 33%.” ~ Frost & Sullivan; Press release for BIPV market report; July 7, 2009 “NanoMarkets expects this type of integration, called building integrated PV (BIPV), to grow substantially, from $528.5 million in 2008 to about $8.2 billion by 2015. “ ~ NanoMarkets; Press release for BIPV report published July 17, 2008 Approved for Public Distribution - Copyright 2009 9
  10. 10. Why BIPV? Strong Demand Incentives Higher incentives for BIPV in some countries BIPV Tariffs in France and Italy 0.70 Both France and Italy have aggressive tariffs for architecturally integrated systems 0.60 • France: a premium of €0.28-cents/kWh 0.50 Non- • Italy: depending upon system size systems 2009 Tariff 0.40 Integrated receive between €8.8-cents and €7.8-cents (!/kWh) Partially more per kWh. 0.30 Integrated Fully 0.20 Integrated China has proposed a specific BIPV tariff 0.10 • Uncertain, but $2.90/Wp is expected for BIPV 0.00 France Italy Various other programs in Malaysia and the United States 1- French BIPV tariff is defined as a Bonus that is applied in addition to the base rate 2- Italy has three tiers depending upon system size. Presented is data for the middle tier from 3-kWp to 20-kWp Approved for Public Distribution - Copyright 2009 10
  11. 11. (Aside) Definition of BIPV in Key Markets France1 Besides power generation, photovoltaic equipment must perform a technical function or architectural key to the act of construction. Equipment producing photovoltaic electricity at least one of these functions in part to construction, to: • The mechanical • Protection and thermal regulation • Physical protection of property or persons • Search for a particular architectural aesthetics Italy2 Replacement of roof materials, roofing, facades of buildings, and buildings with photovoltaic modules of the same inclination and architectural features of the surface coated. This includes: • Shelters or sheds in which the exterior structure consists of photovoltaic modules • Portions of the building exterior where the PV modules replace the transparent or semitransparent material and enable the natural illumination of the interior • noise barriers where the sound-absorbing panels are replaced with photovoltaic modules • (and other application definitions) 1 -Specifications techniques relatives a la protection des personnes et des biens dans les installations photovoltaiques raccordees au reseau; ADEME; December 2008 2- Decreto 19 Febbraio, 2007 – only 3 of the specific types of installations listed in Annex 3 Approved for Public Distribution - Copyright 2009 11
  12. 12. Why BIPV? Optimal Solar Design Initial Concept: Ideal Concept: Design decision: - Unstable Installation - Stable Installation Integrating PV into building - Poor Orientation - Optimal Orientation for multiple use purposes - Dual Purpose Approved for Public Distribution - Copyright 2009 12
  13. 13. Why BIPV? Significant Cost Reduction Traditional PV Installation require significant BOS, at significant cost • Land needs to be purchased • Connections to the existing utility are • Permits needs to be pulled needed • Land needs clearing • Transformers and switching gear are • Mounting structures need to be erected needed • Electrical lines need to be strung in • A fence is needed conduit • Holes needs to be dug • Concrete needs to be poured Photovoltaics aren’t even mentioned yet! Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 13
  14. 14. Why BIPV? Makes Economic Sense With a building you have already: • Purchased the land • Paid for permits • Have electrical equipment • Don’t need a fence around equipment With BIPV you have: • Improved aesthetic value proposition With onsite power generation (net metering), you obtain the retail value of the electricity! Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 14
  15. 15. Why Ascent Solar? Many of the existing solar roofing products have significant commercial drawbacks Crystalline products Thin Film products • add significant weight to roof • Same concerns as crystalline if • change the aesthetic of the building modules are encapsulated in glass • put glass on the roof (fragile) • Lower efficiency (typically <6%) A flexible, glass free, higher efficiency solution is required Pictures courtesy of NREL Approved for Public Distribution - Copyright 2009 15
  16. 16. Why Ascent Solar? Ascent offers a variety of enabling solutions for the BIPV market Lightweight, Flexible, High-Performance and Glass free CIGS Modules… …available in a variety of form factors Approved for Public Distribution - Copyright 2009 16
  17. 17. Why Ascent Solar? Ascent Solar intends to be the supplier of choice for high-performance, flexible PV modules that can be integrated into a variety of products EIPV Products Strategic Partners BIPV Products Military/Other Approved for Public Distribution - Copyright 2009 17
  18. 18. Solar Industry Transition: Rise of the Roofing Industry Outside of Uni-Solar OEMs the major building material manufacturers/suppliers have made only limited forays into solar, and primarily only in Europe • Kwaneer (Alcoa), Imerys, Schuco, ThyssenKrupp*, LaFarge Baas* The roofing industry has developed significant interest in solar • Competitive positioning with a unique product spec • The roof is their real estate (control through product warranty) • Existing customer base and distribution network • Contractors feel like they are leaving money on the table – Roofers are a less expensive labor pool than electricians The entry of building material suppliers into the solar market could have significant implications for the existing solar distribution/installation channels Approved for Public Distribution - Copyright 2009 18
  19. 19. Branding BIPV Products The “Blue Square” has become the solar industry brand This brand has developed a particular value proposition • (positive) energy independence, sustainability, job creation, climate awareness • (negative) roof penetrations, roof load, a particular aesthetic, expense The challenge for BIPV product manufacturers/suppliers is how to best leverage the positive attributes while avoiding the pitfalls of this brand The solar industry needs to think “outside the square” Approved for Public Distribution - Copyright 2009 19
  20. 20. Thank You! Joe McCabe Daniel Tomlinson Ascent Solar Ascent Solar VP of Business Development Senior Associate of Business Development Office: +1 (720) 872-5104 Office: +1 (720) 872-5192 Email: Email: Approved for Public Distribution - Copyright 2009 20