Issues and Economics Related to the use of Photovoltaics

Issues and EconomicsRelated to the use of

Photovoltaics

Ali Aman

Lori Lancaster

Summer 2003

KYOTO TREATY

• General review of the Kyoto Treaty

• What would the treaty mean to Americans?

• How did the senate vote on the Kyoto Treaty?

KYOTO TREATY• Strong support for the

treaty by Americans or not?

• Americans who have been informed about the Kyoto Treaty agree with it.

• Is the public being properly informed?

KYOTO TREATY

• What is George Bush’s stance on the Kyoto Treaty?

• Does the economy and big business supersede the environment?

IMPACTS OF GLOBAL WARMING

• What is the greenhouse effect?

• How does that effect the atmosphere?

• What is the problem with CO2?

IMPACTS OF GLOBAL WARMING

• Forest destruction creates more heat.

• What do the trees do with CO2?• What could happen if the trees are all cut down?• Are we replacing what we take?

Global Warming in Oregon

• Local climate changes

• How much has the temperature gone up in Corvallis?

• What has happened to the rain in the Cascades?

Global Warming in Oregon

• The warmest 9 years have occurred in the last 14 years.

• What does Mt. Pinautuba mean to the world.

• Future climate changes in Oregon.

RECOMMENDATIONS

• Home appliances

• Small investments pay off

• What can the community do?

• How much CO2 do we put into the air?

BIBLIOGRAPHY

• Americans & the World. Global Warming: Kyoto Treaty. Program on International Policy Attitudes. www.americans-world.org

• Environmental Defense. 20 Simple Ways to Reduce Global Warming. 2002. www.environmentaldefense.org

• Kuennen, Tom. EPA’s Declaration of Carbon Dioxide as Pollutant Makes All of Us Polluters. Primer on Climate Change. The Expressways Publishing Project. 2001. www.expresswaysonline.com

• The Effects of Global Warming. 1996 www.geocities.com/TimesSquare/1848/global.html

• United States Environmental Protection Agency. Climate Change and Oregon. Office of Policy. September 1998.

• U.S. Department of State. Excerpts: White House Briefing Comments on Kyoto Protocol. International Information Programs. March 28, 2001.

Applications

• Grid-Connected, Centralized

• Grid-Connected, Distributed

• Off-Grid, Domestic

• Off-Grid, Non-Domestic

Types of Photovoltaic Modules

Monocrystalline Silicon

http://www.nationalsolarsupply.com

Prices: $4 - 5/Watt

Mostly for use in grid-tiedsystems

Types of Photovoltaic Modules

Polycrystalline Silicon

http://www.nationalsolarsupply.com

Prices: $4-15/Watt

Off-Grid non-domesticOff-Grid domesticGrid-Tied applications

Types of Photovoltaic Modules

Amorphous

http://www.nationalsolarsupply.com

Price: $7-11/Watt

Battery charging applications

Types of Photovoltaic Modules

Thin-Film Amorphous Silicon

http://www.cisolar.com

Prices $6-8/Watt

Architectural Standing SeamStructural Standing SeamShingles

Grid-tied applications

PV Kits

PV Modules, wiring, mounts, inverters and batteries (if remote):

Remote: $10-20/Watt

Grid-Tied: $6-7/Watt

http://www.nationalsolarsupply.com

Incentives

http://dsireusa.org

Federal

Job Creation & Worker Assistance Act of 2002 – Special DepreciationAllows businesses to take an additional 30% depreciation on solar, wind, geothermal properties in the first year. Only applies to property purchased after 9/10/2001 and before 9/11/2004 which is placed in service before 1/1/2005.

Solar, Wind & Geothermal Modified Accelerated cost Recovery System (MACRS)Businesses can depreciate the investments in renewable energy property. This is in addition to the special depreciation listed above.

Incentives

http://dsireusa.org

Federal

Solar and Geothermal Business Energy Tax Credit10% tax credit for investing or purchasing energy proerty. There is no expiration to this thanks to the Energy Policy Act of 1992.

Renewable Energy Systems and Energy Efficiency Improvement ProgramGrants for PV systems of $10,000- $500,000 for agricultural producers or rural small businesses during 2003. Applications were due 6/27/2003

Incentives

http://dsireusa.org

Federal

Tribal Energy Program GrantDOE's Office of Energy Efficiency and Renewable Energy's (EERE's) Tribal Energy Program provides financial and technical assistance to tribes for feasibility studies and shares the cost of implementing sustainable renewable energy installations on tribal lands

Energy Efficient Mortgage (EEM)Persons who qualify for home loans qualify for EEM. Gives buyers additional benefits on top of the usual mortgage deal. The Energy Efficient Mortgage (EEM) can be used by homeowners to pay for energy efficiency measures for new and existing homes. Includes PV.

Incentives

http://dsireusa.org

Oregon

Business Energy Tax Credit (BETC)http://www.energy.state.or.us/bus/tax/taxcdt.htm35% tax credit taken over 5 years: 10% in years 1 and 2. 5% each year after that. If the eligible project is less than $20,000, the credit may all be taken in the one year.

Pass Through Option: The project owner transfers the credit to a “pass-through” partner in exchange for cash. This is good for non-profits, schools, government agencies and tribes who have no or very little tax liabilities.

Incentives

http://dsireusa.org

OregonPhotovoltaic Electricity Production Incentive for Environmental Attributeshttp://www.b-e-f.org/news/releases/061802.shtm The Bonneville Environmental Foundation (BEF) and the Northwest Renewable Energy Cooperative (NWREC) have joined together to help reduce the costs of small (10 kW maximum) residential and commercial photovoltaic systems in parts of Oregon and Washington. NWREC will sign 5-year agreements with the owners of new photovoltaic systems and will pay them an annual amount equivalent to 10¢/kWh for the environmental attributes - or Green Tags - produced by the solar systems. System owners will be paid annually. BEF will then purchase the Green Tags from NWREC and sell them to its wholesale customers and on its web site.

Incentives

http://dsireusa.org

Oregon

Residential Energy Tax Credithttp://www.energy.state.or.us/res/tax/taxcdt.htmPhotovoltaics are elegible for $3/peak watt up to $1500.

Renewable Energy Systems Exemptionhttp://www.energy.state.or.us/renew/Solar/Support.htmAny increase in property value that accompanies the installation of a PV system cannot be included in its assessment for property taxes.

Incentives

http://dsireusa.org

Oregon

Small Scale Energy Loan Programs (SLEP)http://www.energy.state.or.us/loan/selphme.htmLow interest loans to individuals, businesses, schools, cities, etc., to finance small-scale local energy projects.

Solar Electric Buy-Down Programhttp://www.energytrust.org/renewable_energy_programs/solar/pv.html This is through the Energy Trust. Systems must be grid-tied, net metered, no larger than 25kW and installed by an Energy Trust approved contractor.

Residential: $2.50/Watt DC Installed, $7000 cap/siteCommercial: $1.75/Watt DC Installed, $20,000 cap/site

Incentives

http://dsireusa.org

Oregon

Small Scale Energy Loan Programs (SLEP)http://www.energy.state.or.us/loan/selphme.htmLow interest loans to individuals, businesses, schools, cities, etc., to finance small-scale local energy projects.

Solar Electric Buy-Down Programhttp://www.energytrust.org/renewable_energy_programs/solar/pv.html This is through the Energy Trust. Systems must be grid-tied, net metered, no larger than 25kW and installed by an Energy Trust approved contractor.

Residential: $2.50/Watt DC Installed, $7000 cap/siteCommercial: $1.75/Watt DC Installed, $20,000 cap/site

Incentives

International

Many countries have introduced taxes on formsof electricity that contribute to CO2 emmisions

Some governments have set targets for increasing PV deployment

http://www.iea-pvps.org

Performance Calculator for Grid-Connected PV Systems

http://rredc.nrel.gov/solar/codes_algs/PVWATTS/

Allows one to calculate the energy value of a PV system based on location, AC Rating, and Energy costs for that location. Calculates it per month and tallies for the year.

Trends in the USA PV Market

http://www.nrel.gov/pvmat/pvmatcost.html