The More Things Change.... by Harry Warren, WGES

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Harry Warren Jr., President of Washington Gas Energy Services, speaks about the viability of solar energy in large-scale commercial projects as the Maryland, DC, Virginia region approaches grid-parity.

This presentation was given December 4, 2009 at the Solar Energy Focus Conference: Fall 2009 hosted by the Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) in Gaithersburg, MD.

To learn more please visit:

www.mdvseia.camp7.org

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The More Things Change.... by Harry Warren, WGES

  1. 1. The more things change … Presentation to the Solar Energy Focus Conference by Harry A. Warren, Jr. President Washington Gas Energy Services, Inc December 4, 2009 Energy Services, Inc.
  2. 2. 1984 Energy Services, Inc.
  3. 3. Energy Services, Inc.
  4. 4. Energy Services, Inc.
  5. 5. Solar PV Balance of System Costs If solar panels are free, balance of system costs are too high to make solar PV grid competitive. Theodore B. Taylor and Harry Warren - 1984 Energy Services, Inc.
  6. 6. Energy Services, Inc.
  7. 7. Energy Services, Inc.
  8. 8. 2009 Energy Services, Inc.
  9. 9. Energy Services, Inc.
  10. 10. Energy Services, Inc.
  11. 11. Energy Services, Inc.
  12. 12. Solar PV Balance of System Costs If solar panels are free, balance of system costs are too high to make solar PV grid competitive. Harry Warren - 2009 Energy Services, Inc.
  13. 13. Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008 Ryan Wiser, Galen Barbose, Carla Peterman, Naïm Darghouth Lawrence Berkeley National Laboratory, October 2009 Energy Services, Inc.
  14. 14. Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008 Ryan Wiser, Galen Barbose, Carla Peterman, Naïm Darghouth Lawrence Berkeley National Laboratory, October 2009 Energy Services, Inc.
  15. 15. Mini Financial Analysis - Solar PV Project 1 Watt System No incentives Capital Cost $ 3.00 Debt Ratio 50% Pre-tax Cost of Debt 6% System Life 20 yrs Tax Rate 35% $3.00 per watt Annual Output Power Price $ 1.2 kwh 0.40 per kwh isn’t grid parity Annual Revenue Operating Expenses EBITDA $ $ $ 0.48 - 0.48 Depreciation $ 0.15 EBIT $ 0.33 Debt Service $ 0.09 EBT $ 0.24 Taxes $ 0.08 Net Income $ 0.16 After Tax ROE 10.4% Energy Services, Inc.
  16. 16. BOS = Non-module costs “Non-module costs (which may include items such as inverters, other balance of systems hardware, labor, and overhead).” “Average non-module costs (which may include such items as inverters, mounting hardware, labor, permitting and fees, shipping, overhead, taxes, and profit) shown in Figure 5 were calculated as the difference between the average total installed cost and the module price index in each year.” Tracking the Sun II, The Installed Cost of Photovoltaics in the U.S. from 1998-2008 Ryan Wiser, Galen Barbose, Carla Peterman, Naïm Darghouth Lawrence Berkeley National Laboratory, October 2009 Energy Services, Inc.
  17. 17. Reducing Non-module Costs • ?????????? • Standardization/modularization of design – Optimal component matching / economics – Minimize design work – Minimize runs • Don’t oversize for roof • Optimal tilt • Project development efficiency – Client and site selection Energy Services, Inc.
  18. 18. Reducing Non-module Costs • DC to AC to DC? Energy Services, Inc.
  19. 19. The more things change … The closer we get to grid parity!! Thanks Energy Services, Inc.

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