Texas Solar Power Company Austin, Texas

Solar Power 101 Why use Solar How electricity is generated How energy is used Types of solar systems What it costs Q & A

Why use Solar

How electricity is

generated

How energy is used

Types of solar systems

What it costs

Q & A

Why Solar? You & your company care about the future – want to be good environmental stewards Sources of fossil fuel are finite You want to lock in your operational costs You want a reliable, maintenance-free system You want to “grow your own” energy and….

You & your company care about the future – want to be good environmental stewards

Sources of fossil fuel are finite

You want to lock in your operational costs

You want a reliable, maintenance-free system

You want to “grow your own” energy

and….

Solar Energy is the most abundant renewable energy in the world. Photo = Light Voltaic = Electricity

Albert Einstein to Henry Ford, 1931: “ I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait until oil and coal run out before we tackle that.”

Some Interesting Stats… Average commercial system = taking 4 - 5 cars off the road (reduction of greenhouse gas emissions) The earth receives more energy from the sun in just one hour than the world uses in a whole year.

Average commercial system = taking 4 - 5 cars off the road (reduction of greenhouse gas emissions)

The earth receives more energy from the sun in just one hour than the world uses in a whole year.

Solar Systems work well No moving parts No emissions No water required (except, perhaps, periodic cleaning) Grid-tie systems are easily managed – putting power directly on the grid. * Some assembly required! Batteries not included.

No moving parts

No emissions

No water required

(except, perhaps,

periodic cleaning)

Grid-tie systems

are easily managed

– putting power

directly on the grid.

Austin is a great place for Solar!

What are Solar Cells? Thin wafers of silicon Similar to computer chips Much bigger Much cheaper! Silicon is abundant (sand) Non-toxic, safe

Thin wafers of silicon

Similar to computer chips

Much bigger

Much cheaper!

Silicon is abundant (sand)

Non-toxic, safe

PHYSICS: Silicone absorbs white sunlight Causes electrons in atoms to collide with each other Activity creates + and - charges Charges collect on to positive and negative solders that lead to conducts How to Make Electricity

Silicone absorbs white sunlight

Causes electrons in atoms to collide with each other

Activity creates + and - charges

Charges collect on to positive and negative solders that lead to conducts

What are Solar Modules? Modules or panels are made up of multiple cells Two kinds of PV modules Monocrystalline = whole wafers Polycrystalline = composite wafers

Modules or panels are made up of multiple cells

Two kinds of PV modules

Monocrystalline = whole wafers

Polycrystalline = composite wafers

What are Solar Arrays? PV or Solar Arrays are made of a series of connected modules.

PV or Solar Arrays are made of a series of connected modules.

3 Basic Systems: Grid-Tie Grid-Tie / Battery Back-Up Stand Alone or Off-Grid

Grid-Tie

Grid-Tie / Battery Back-Up

Stand Alone or Off-Grid

Grid – Tie Systems: Feed power into the main load center Customers continue to receive power from the grid, but push any excess power produced by the PV system onto the grid “Net Metering” monitors the flow of power both to and from the utility grid

Feed power into the main load center

Customers continue to receive power from the grid, but push any excess power produced by the PV system onto the grid

“Net Metering” monitors the flow of power both to and from the utility grid

Net Metering: Electric meter can run both forwards and backwards Required of all electricity providers If you come out ahead, the energy company is not required to pay you at certain rate Austin Energy pays wholesale rate

Electric meter can run both forwards

and backwards

Required of all electricity providers

If you come out ahead, the energy

company is not required to pay you at

certain rate

Austin Energy pays wholesale rate

Grid –Tie, Battery Back-Up: In case of grid failure, system provides uninterrupted power to specified loads Battery bank is designed to meet user’s load objective in terms of Amps Run Time

In case of grid failure, system provides uninterrupted power to specified loads

Battery bank is designed to meet user’s load objective in terms of

Amps

Run Time

Grid –Tie, Battery Back-Up: Additional components used by this system Grid-tie Battery back-up Inverter Charge Controllers Batteries Inverters have both outputs and inputs OUTPUTS are from Batteries or PV array INPUTS are from the load center (grid) Charge batteries Monitor voltage

Additional components used by this system

Grid-tie Battery back-up Inverter

Charge Controllers

Batteries

Inverters have both outputs and inputs

OUTPUTS are from Batteries or PV array

INPUTS are from the load center (grid)

Charge batteries

Monitor voltage

Example of Battery Bank with 14 hours of reserve power (residential).

Stand Alone or Off - Grid Designed to meet all power needs Necessary when location is not served by power company Design constraints Surge amps Battery bank amp hour capacity Days of back-up storage (poor sunlight) Square footage for components We use a lot of electricity!

Designed to meet all power needs

Necessary when location is not served by power company

Design constraints

Surge amps

Battery bank amp hour capacity

Days of back-up storage (poor sunlight)

Square footage for components

We use a lot of electricity!

Majority of Installations: Grid-Tie

South facing roof Tilted to location’s latitude Austin = 30.27 = to a 7 / 12 pitch Shade-free area, every day of the year Ideal Location for a Solar Install

South facing roof

Tilted to location’s latitude

Austin = 30.27

= to a 7 / 12 pitch

Shade-free area, every day of the year

We can provide the tilt… Ideal Location for a Solar Install

We can provide the tilt…

Components of a Solar Installation PV Modules produces Direct Current (DC) We use Alternating Current (AC) Power must be converted from DC to AC with an Inverter

PV Modules produces Direct Current (DC)

We use Alternating Current (AC)

Power must be converted from DC to AC with an Inverter

A Residential Grid – Tie System DC AC Inverter PV Meter Service Panel

A Commercial Grid – Tie System AC Disconnect PV Meter Inverter Combiner box DC Disconnects Inverters Gutterbox

PV ARRAY

How Much Power Can You Produce? Austin Energy offers a fabulous rebate program: $4.50 per watt A 23.6 kilowatt system “maxes out” their per-year allotment for commercial installation One rebate per year, per system The following calculations are based on a 23.6 kW system

Austin Energy offers a fabulous rebate program: $4.50 per watt

A 23.6 kilowatt system “maxes out” their per-year allotment for commercial installation

One rebate per year, per system

The following calculations are based on a 23.6 kW system

How Much Power Can You Produce? System SIZE: 23.6 kW = 23,600 Watts Production per HOUR: System will produce 23,6000 watts per hour

System SIZE:

23.6 kW = 23,600 Watts

Production per HOUR:

System will produce 23,6000 watts per hour

How Much Power Can You Produce? Production per DAY: Austin averages 5.4 good sun hours per day, so 23,600 watts x 5.4 hours = 127,440 watt hours per day Production per MONTH: 127,440 watt hours per day x 30.5 days per month = 3,886,920 watt hours per month, or 3,886 kWh/mo.

Production per DAY:

Austin averages 5.4 good sun hours per day, so 23,600 watts x 5.4 hours = 127,440 watt hours per day

Production per MONTH:

127,440 watt hours per day x 30.5 days per month = 3,886,920 watt hours per month, or 3,886 kWh/mo.

How Much Power Can You Produce? One more factor…. The DC power produced from the system must be converted to AC power This process looses power, so “derating factor” of .77 must be calculated 3,886 kWh/month x .77 = 2,992 kWh/month On average, this system will generate ~ 3,000 kWh per month

One more factor….

The DC power produced from the system must be converted to AC power

This process looses power, so “derating factor” of .77 must be calculated

3,886 kWh/month x .77 = 2,992 kWh/month

On average, this system will generate ~ 3,000 kWh per month

Austin Energy Bill – Example Customer Average Monthly Usage: Energy = 23,590 kW hours Demand = 52 kW Ave. Bill = $1,865.65 month

Yearly Austin Energy Charges

PV for Example Customer 23.6 kW system = 135 panels

23.6 kW system = 135 panels At 175 Watts each PV for Example Customer

23.6 kW system = 135 panels At 175 Watts each Power Output 18,191 Watts AC PV for Example Customer

23.6 kW system = 135 panels At 175 Watts each Power Output 18,191 Watts AC Producing 31,560 kWh per year PV for Example Customer

Eco Equivalent: 43,852 Miles = 856 trees 5 fewer cars on the road of 4 Austin homes Yearly electricity use

Cost Analysis Subsidized 69%

Rate of Return in Years

Return on Investment #1 Out-of-pocket cost (after rebates) is $54,399 System cost = $177,712 So you have a $177,712 value for $54,399 Therefore: your capital appreciation = 326% ----------------------------------------------- #2 Your annual energy savings is $3,314 (before price increases, based on 10.5 cents per kWh) Therefore: you earn 6%* on your investment (3,313.80 divided by $54,399) *This will go up each year because of increased energy costs.

Opportunity Costs If you had invested your $54,000 in…. Money Market Accounts Chase Bank 2.0% Wells Fargo 1.76% University Federal Credit Union 3.1%

If you had invested your $54,000 in….

Money Market Accounts

Chase Bank 2.0%

Wells Fargo 1.76%

University Federal Credit Union 3.1%

Opportunity Costs If you had invested your $54,000 in…. Mutual Funds* Vanguard Institutional Index 2.21% Fidelity Diversified International 1.22% Fidelity Magellan .39% *You would have lost on average 7% of your capital

If you had invested your $54,000 in….

Mutual Funds*

Vanguard Institutional Index 2.21%

Fidelity Diversified International 1.22%

Fidelity Magellan .39%

*You would have lost on average 7% of your capital

Opportunity Costs If you had invested your $54,000 in…. CD’s 3 month 3.13% 1 Year 3.62% 3 Year 3.88%

If you had invested your $54,000 in….

CD’s

3 month 3.13%

1 Year 3.62%

3 Year 3.88%

Opportunity Costs If you had invested your $54,000 in…. T Bills 3 Month T Bill 1.85 6 Month T Bill 2.04 1 Year T Note 2.22 Federal Funds 2 Year Note 2.54 5 Year Note 3.26 10 Year Note 4.00 30 Year Note 4.61

If you had invested your $54,000 in….

T Bills

3 Month T Bill 1.85

6 Month T Bill 2.04

1 Year T Note 2.22

Federal Funds

2 Year Note 2.54

5 Year Note 3.26

10 Year Note 4.00

30 Year Note 4.61

Other Financial Considerations Federal 5-year accelerated depreciation schedule for solar energy property OR Get a power production tax credit at 2 cents per kWh for the life of the system You are eligible for a Solar Energy Device Franchise Tax Deduction **

Federal 5-year accelerated depreciation schedule for solar energy property

OR

Get a power production tax credit at 2 cents per kWh for the life of the system

You are eligible for a Solar Energy Device Franchise Tax Deduction **

Other Financial Considerations After the initial purchase, cost of your power is free. Panels are warranted for 25 years, but typically have up to a 40-year lifespan. Solar reduces the pea k load on your demand (kW) meter. Solar helps lock in operational costs and hedge against rising energy costs. As the price of energy goes up, savings increase exponentially.

After the initial purchase, cost of your power is free. Panels are warranted for 25 years, but typically have up to a 40-year lifespan.

Solar reduces the pea k load on your demand (kW) meter.

Solar helps lock in operational costs and hedge against rising energy costs. As the price of energy goes up, savings increase exponentially.

Many variations…

Many variations…

Many variations…

Many variations…

Many variations…

Many variations…

Many variations…

Many variations…

Many variations…

Questions? 512-459-9494 1703 W. Koenig Lane Austin, TX 78756 www.txspc.com

Texas Solar Power Company Austin, Texas