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Solar Overview 101408

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Good summary of the financial benefits of going solar

Good summary of the financial benefits of going solar

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Transcript

  • 1. The Benefits Of Solar
  • 2. How Much Does A Car Cost?
    • Avg. New Car: $28,400*
    • Depreciation in first 4 years:
      • 40-60%**
    • For about the same amount of money, Solar is a much better investment
    * National Automobile Dealers Association **Consumer Reports
  • 3. Energy Inflation & Volatility
    • Historically, energy rates double every 10 years, however…Oregon natural gas prices nearly quadrupled in the last 10 years!
    $3.28 $12.58* Wholesale gas prices per thousand cubic feet *Avg. NYMEX-Henry Hub Price 6/1-6/19/08 Source: Energy Information Administration, Oregonian 6/22/08
  • 4. Impact of Natural Gas Inflation
    • Inflation in wholesale natural gas affects the retail price of natural gas…
      • NW Natural asking a 14% rate increase in November, 2008 (20% in Washington)
    • AND, it affects the retail price of electricity
      • PGE asking for a 14-15% rate increase in January, 2009
  • 5. Oil is even worse!
    • Light Sweet Crude, Per Barrel Futures Price (source: NYMEX)
    • June 1, 2007 = $65
    • June 23, 2008 = $136.74
  • 6. Efficient Homes Appreciate
    • High Efficiency Solar homes appreciate in value faster than comparative, conventional homes 1
    $163,629 $227,592 $ gain in property value (mean) 26% 42% Percentage of $ gain in property value (mean) 13%-35% 6%-56% Range of percentage $ gain in propery value $208,410, owned 24 mos. $309,505, PV, owned 14 mos. High-end of gain 17-25 mos. 10-29 mos. Length of ownership (range in mos.) 21.8 mos. 18.7 mos. Length of ownership before resale (mean in mos.) Homes in Comparison Community Homes in SheaHomes Community Variable
  • 7. Higher Satisfaction With Solar
    • Energy efficiency improves overall buyer satisfaction with the home—when combined with solar
      • Table below shows percentage comparison of respondents from homeowners in the SheaHomes communities regarding their expectations about savings on the utility bills 1
    21% 17% 19% Disagree/strongly disagree 50% 30% 43% Unsure 29% 53% 38% Agree/strongly agree SheHomes Respondents without PV (n=68) SheaHomes Respondents with PV (n=40) All Shea Homes Respondents (n=108) Response
  • 8. Efficiency Increases Home Value
    • Solar electric systems increase property value by decreasing utility operating costs. Appraisal Journal found that a home’s value is increased $20,000 for every $1,000 reduction in annual operating costs from energy efficiency.
    Sources: Appraisal Journal, Oct 1998; NorCal Solar Energy Resource Guide, Oct 2005, “Payback and other Financial Tests for Solar in your home”, Author: Andy Black. Wells Fargo Bank
  • 9. Solar Rate Of Return Higher
    • Another study found that solar additions to existing homes nets higher rate of return
    Source: Business 2.0 , November 2006 1)National average, 2)Average cost for 2,000 sq/ft home, 3) California Incentives $15,000 Rebates and tax credits 3 $9,900 Utility savings (5 years) $2,450 -$3,942 Payoff $22,500 $39,920 Home value increase $45,000 2 $43,862 1 Average Cost Solar Energy System Kitchen Remodel
  • 10. Green Homes Sell For More
    • Portland Metro four county avg. per square foot sales cost:
      • Conventional Home Avg. = $185
      • Green Certified Home Avg. = $223
    • Time on market:
      • Conventional Home Avg. = 73 days
      • Green Certified Home Avg. = 66 days
    Source: Earth Advantage, May 6, 2008
  • 11. An Observation about Global Warming
  • 12. Mt. Hood & Global Warming
      • Mt. Hood’s White River Glacier has lost 61% of its volume since 1982
    Photos courtesy of Gary Braasch: http://www.braaschphotography.com . More of his photography regarding global climate change is available at http://www.worldviewofglobalwarming.org
  • 13. Does Solar Really Work Here?
  • 14. The Willamette valley gets as much sun on an annual basis as the US average
  • 15. Oregon’s Solar Advantage
    • “ Even the cloudiest parts of Oregon receive more sunlight than Germany and Japan, who are currently the world leaders in PV Installations.”
      • Frank Vignola, University of Oregon
  • 16. Better than Florida!
    • “ An average solar water heater in western Oregon will save as much energy, on an annual basis, as an average system in Florida.”
      • Christopher Dymond, Senior Energy Analyst, Oregon Department of Energy
  • 17. Anytime The Sun Shines, We Get Energy
    • Location: Lion’s Gate Inn, Newberg, Oregon
    • Date: January 24, 2008
    • Time: 2:00 PM
    • Outside Air Temperature: 37 F
    • "Real Feel" (AccuWeather): 26 F
    • Conditions: Sunny, winds from NNW, incoming clouds
    • Temp in Solar Water Tank: 100 F
  • 18. Net Metering
    • Excess power is sold back to the power company at retail rates when sunny
    • Acts as your battery so when it rains you have credit to draw from
  • 19. Consumer Photovoltaic (Solar Electric) Incentives
    • Energy Trust
    • $2.25/Watt (PGE) or $2.00/Watt (Pacific Power) up to $10,000
    • Paid to contractor to reduce customer cost
    • Oregon RETC
    • $3.00/Watt up to $6,000
      • Max $1,500 claimed/yr
    • Federal
    • 30% of net cost, NO CAP! (2009)
      • Income tax credit
    • Example: 2 kW DC System
    • $20,000 Installed price
    • -$4,500 ETO Incentive
    • $15,500 Net price
    • -$6,000 Oregon RETC
    • -$4,650 Fed tax credit
    • $4,850 Final cost
  • 20. Consumer Solar Hot Water Incentives
    • Energy Trust
    • Electric: $.40/kWh up to $1500
    • Gas: $.30/kWh up to $1500
    • Paid to contractor to reduce customer cost
    • Oregon RETC
    • $.60/kWh up to $1,500
      • Claimed in one year
    • Federal
    • 30% of net cost, NO CAP! (2009)
      • Income tax credit
    • Example:
    • System Savings: 2,700 kWh annually, electric backup
    • $8,500 Installed price
    • -$1,080 ETO Incentive
    • $7,420 Net price
    • -$1,500 Oregon RETC
    • -$2,226 Fed tax credit
    • $3,694 Final cost*
  • 21. System Payback
    • Historically, Energy Rates Double Every Ten Years
    • In a home, for every $1 in annual energy savings created, the value of the home appreciates by $20
      • Sources:
        • Appraisal Journal
        • Wells Fargo Bank
    Value Appreciation Payback Model™ Assumed current power rate: $.10 per kW/h Energy Inflation assumption: 5% Annually (Conservative) Property Appreciation assumption: $20 increase for every $1 annual energy savings Estimated System Payback, as proposed: 3 to 5 years For the 2,700 kw/h Solar Water and 2 kw PV examples, previous slides--~$8,544 installed after incentives.
  • 22. In Conclusion
    • Solar improves the value of your home
    • Solar insulates you from energy inflation and volatility—energy cost savings escalates as energy rates inflate
    • Solar saves energy by creating energy
    • Solar payback is aggressive, when considering market factors
  • 23. Solar Hot Water Side-wall mounted, drain-back system, PV powered pump, offsets 2,700 kWh annually
  • 24. Hybrid 2 kw PV with space and water heating
  • 25. 5.6 kw PV system in Oregon Wine Country
  • 26. Thank You! Contact: Keith Knowles Vice President, Solar Consultant 503-317-6536 [email_address]

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