INTRODUCTORY SPECIAL INTRODUCTORY ... - PHOTON Info

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State 32 Politics invest. If history is any guide, electricity prices will likely rise: since 2001, electricity prices in the US have soared, though it is difficult to estimate what the future rate of increase will be, especially in the midst of an economic downturn. States with a heavily coal-based electricity mix tend to have had low inflation rates his- torically, while states using more natural gas have seen greater price increases. In our return calculations, we assumed that electricity prices will increase by 3 percent annually. Note: if prices rise more quickly, your return could be higher. In addition to price inflation, there are other ways to artificially increase electricity prices, and thereby make solar a more attractive investment. One strategy is for the utility to implement tiered electric price structures. Under price tiering, the more electricity a homeowner consumes, the more he pays per kWh – a structure Solar incentives in 13 states Arizona California Colorado Connecticut Delaware Hawaii Maryland State rebate Renewable energy credit market State tax credit Feed-in tariff Website for more information $ $ $ $ $ $ $ $ Massachusetts $ $ $ New Jersey New Mexico New York Pennsylvania Vermont $ $ $ $ $ $ $ $ $ $ $ www.azdor.gov/brochure/543.pdf www.cpuc.ca.gov/PUC/energy/solar www.csi-trigger.com/ www.xcelenergy.com/Residential/RenewableEnergy/Solar_Rewards/Pages/ home.aspx www.ctcleanenergy.com/YourHome/SolarRebates/RebateAmounts/tabid/77/ Default.aspx www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/GreenEnergy DelmarvaPower.aspx hawaii.gov/dbedt/info/energy/renewable/solar www.state.hi.us/tax/announce/ann09-09.pdf energy.maryland.gov/incentives/residential/solargrants/index.asp www.masstech.org/solar/res2009.html www.massenergy.com/Solar.REC.Sale.html www.njcleanenergy.com/renewable-energy/programs/renewable-energyincentive-program www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/solartaxcredit.htm www.pnm.com/customers/pv/program.htm www.powernaturally.org/Programs/Solar/incentives.asp www.depweb.state.pa.us/energindependent/cwp/view.asp?a=3&q=545926 paaeps.com/credit/ $ $ www.rerc-vt.org/incentives/forms.htm psb.vermont.gov/docketsandprojects/electric/7523 In our examination of the 13 solar colonies, we encountered a mix of incentive programs, including cash rebates, tax credits, renewable energy credits, and a feed-in tariff. that helps to motivate energy conserva- tion. The first part, or tier, of a household’s consumption is priced at a low rate. When consumption exceeds a certain limit, the consumer will enter the next higher- priced tier and pay that higher price for any additional energy usage. Many utilities in the US have adopted tiered pricing. California’s investor-owned utilities have especially steep tiers: in PG&E’s five-tier rate structure for residential customers, the Tier 5 price of 44 cents per kWh is four times the Tier 1 rate of 11 cents per kWh. Tiered pricing is a good thing for PV system owners. A PV system offsets the most costly electricity consumed first through net metering, improving the economics of solar. If you are considering the purchase of a PV system, you should learn more about your utility’s electricity price structure. If there is price tiering, and your monthly electricity consumption puts you in a higher tier, that could boost your return on investment. California’s investor-owned utilities – Pacific Gas & Electric, Southern California Edison, and San Diego Gas and Electric – have significant price differences between tiers, so the rate of return for a PV system will vary greatly depending on your tier. A PG&E customer in Tier 5 with a PV system would save a lot more money than a Tier 2 customer on a per kWh basis because of this difference, and thus have a much better IRR. We provided separate IRR calculations for these three utilities in California because their tiered rate structures differ significantly. Note that these calculations are based on an assumption that the customer is in Tier 4. If you live in California and your consumption puts you in a higher or lower tier, your IRR could be significantly higher or lower, respectively. PV system owners can also benefit from utilities that have a time-of-use rate structure, in which electricity prices are more expensive during periods of increased electricity demand. Such »peak« periods occur in the late afternoon in Arizona and California during the summer when air conditioning use is at its highest. Con- veniently, many PV systems produce the most solar electricity during this peak pe- riod, so homeowners can take advantage of the higher offset on their utility bill through net metering. In the eastern US, where humid summers can keep air conditioning units on all day, peak periods often stretch from 9 AM to 9 PM. There is yet another important vari- able that could impact electricity prices: the possibility of a carbon tax. If the US passes a carbon tax – and there are cur- rently proposals for one at the national level – prices in states with a heavily coal-based electricity mix could change significantly. Falling PV system prices could somewhat increase the rate of return for homeowners in states with low electricity rates. But according to On-Grid’s Andy Black, many states have such low grid prices that the system price doesn’t matter. »Even if you gave the system away for free, the savings on the electric bill wouldn’t be November 2009
Solar Radiation Data Yearly average solar radiation (kWh/m 2 /day) Phoenix, AZ Albuquerque, NM Honolulu, HI Los Angeles, CA Boulder, CO San Francisco, CA Wilmington, DE Boston, MA Baltimore, MD Atlantic City, NJ New York, NY Philadelphia, PA Hartford, CT Burlington, VT 4.6 4.6 4.6 4.6 4.6 4.6 4.4 4.3 5.7 5.6 5.5 5.4 6.5 6.4 0 1 2 3 4 5 6 7 8 *Data collected for flat-plate collectors facing south with a fixed latitude-angle tilt Sunny: solar irradiation data from the National Renewable Energy Laboratory reveals remarkable uniformity among select cities in the 13 solar colonies. The irradiation levels in Phoenix are 51% higher than those in Burlington, Vermont. enough to pay for the maintenance and the inverter replacement cost,« says Black. »You’re in a perpetually negative cash sit- uation, and shrinking your module costs won’t solve that problem.« One state, many stories Keep in mind that the single IRR num- ber we calculated for each state doesn’t tell the whole story. The economics of solar can vary significantly within a single state, due to variations in incentive programs, electricity prices, and rate structures from utility to utility. With more than 3,000 utility companies in the US, a single state can have many different stories. New York is a good illustration. If you live in New York, our IRR calculation of 5.2 percent may somewhat understate the financial attractiveness of going solar for many customers in the state. Residents of Source: National Renewable Energy Laboratory kWh/m 2 * year > 2100 2000-2100 1900-2000 1800-1900 1700-1800 New York can opt for the state rebate program administered by New York State En- ergy Research and Development Author- ity, which yields a maximum payment of $20,000. But Long Island residents who are customers of Long Island Power Authority (LIPA) are eligible for a rebate capped at $35,000 – a significant financial boost. Additionally, electricity prices Solar Financial Calculators Given the limitations of statewide IRR numbers for residential solar, prospective PV system buyers can find more detailed return on investment information for their specific location by using sophisticated solar financial calculators available on the Internet. Solar Advisor Model from the National Renewable Energy Laboratory www.nrel.gov/analysis/sam Solar PV Calculator from Kyocera and Clean Power Research www.kyocerasolar.com/ products/pv_calculator.html 1600-1700 1500-1600 1400-1500 1300-1400 1200-1300 1100-1200 November 2009 33 ıı 1000-1100 900-1000 in upstate New York, where there is a great deal of hydropower, are cheaper than in Long Island. In other words, if we had bro- ken down the state into LIPA customers and other New York residents, the former would have a better rate of return. Naturally, we aren’t suggesting that customers outside of the 13 solar colonies avoid going solar now because of un- attractive economics. In fact, the more earlier adopters in »uneconomic« states call installers to request PV systems, the more installers will set up shop in those states, which will help reduce installa- tion costs. Purchasing a PV system also boosts overall US market growth, which in turn helps manufacturers upscale their operations and therefore reduce solar module prices. Thus every PV purchase is an investment in a clean energy future for the US. Michael D. Matz Quelle: NRE: Deutscher Wetterdienst, Grafik: <strong>PHOTON</strong>
Page 1: A LONG, STRANGE TRIP SOUTHERN EXPOS
Page 4 and 5: 4 Under the Sun National Renewable
Page 6 and 7: 6 Photo of the month The garden of
Page 8 and 9: May we introduce ourselves? The PHO
Page 10 and 11: 10 Readers‘ letters PHOTON, welco
Page 12 and 13: 12 Readers‘ letters So why are so
Page 14 and 15: 14 Under the Sun History A long, No
Page 16 and 17: 16 Under the Sun The headquarters o
Page 18 and 19: Under the Sun selling book, »A Gui
Page 20 and 21: Under the Sun Academy of Sciences,
Page 22 and 23: Under the Sun made to uniquely fit
Page 24 and 25: Under the Sun to figure out how to
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Page 28 and 29: 28 The 13 Solar Colonies PHOTON inv
Page 30 and 31: Politics to federal income tax. Als
Page 34 and 35: 34 Politics San Francisco From mega
Page 36 and 37: 36 Politics (see table below). Acco
Page 38 and 39: Politics cent of permits are over-t
Page 40 and 41: 40 Politics Stimulus package Feel t
Page 42 and 43: 42 Politics guide companies interes
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82 Architecture November 2009
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84 In Practice Proposals The perfec
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86 In Practice Is your proposal com
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88 In Practice that are predictable
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90 In Practice System: accomplished
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In Practice bluntly: »We have this
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Elkus’ golden trout pond is the l
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Test Laboratory A couple of years a
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Events From system inspection to in
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November 19-20, 2009 Alternative En
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Who should exhibit? • Manufacture
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Education & Training Producer-indep
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Internships New internships in the
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Ask the Editors Whether it’s abou
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Industry Registry Here is informati
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Preview The issue 12-2009 appears a
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