Solar 101 Austin Energy Commercial Customers

Texas Solar Power CompanyTexas Solar Power Companyp yp yAustin, TexasAustin, Texas

Solar Power 101Solar Power 101

Why use SolarWhy use SolarWhy use SolarWhy use Solar

How electricity is How electricity is

generatedgenerated

How energy is usedHow energy is usedow e e gy s usedow e e gy s used

Types of solar systemsTypes of solar systems

What it costsWhat it costs

Q & AQ & AQQ

Why Solar?Why Solar?yyYou & your company care You & your company care about the future about the future –– want want to be good environmental to be good environmental stewardsstewards

S f f il f l S f f il f l Sources of fossil fuel are Sources of fossil fuel are finitefinite

You want to lock in your You want to lock in your You want to lock in your You want to lock in your operational costsoperational costs

You want a reliable, You want a reliable, You want a reliable, You want a reliable, maintenancemaintenance--free systemfree system

You want to “grow your You want to “grow your g yg yown” energyown” energy

and…. and….

Solar Energy is the mostSolar Energy is the mostSolar Energy is the most Solar Energy is the most abundant renewable energy abundant renewable energy in the world. in the world.

Photo = Light Voltaic = ElectricityPhoto = Light Voltaic = Electricity

Thomas Edison toThomas Edison toThomas Edison toThomas Edison toHenry Ford, 1931:Henry Ford, 1931:y ,y ,

“I’d put my money on “I’d put my money on the sun and solar the sun and solar energy. What a source of energy. What a source of power! I hope we don’t power! I hope we don’t have to wait until oil have to wait until oil

d l b f d l b f and coal run out before and coal run out before we tackle that.”we tackle that.”

Some Interesting StatsSome Interesting StatsSome Interesting Stats… Some Interesting Stats… Average commercial system Average commercial system

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

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

Solar Systems work wellSolar Systems work wellSolar Systems work wellSolar Systems work wellNo moving parts No moving parts g pg p

No emissionsNo emissions

No water required No water required No water required No water required

(except, perhaps, (except, perhaps,

) )periodic cleaning)periodic cleaning)

GridGrid--tie systems tie systems

are easily managed are easily managed

–– putting power putting power * Some assembly required!* Some assembly required!directly on the grid.directly on the grid.

* Some assembly required!* Some assembly required!

Batteries not included.Batteries not included.

Austin is a great place for Solar! Austin is a great place for Solar! g pg p

What are Solar Cells? What are Solar Cells? Thin wafers of siliconThin wafers of silicon

Similar to computer chipsSimilar to computer chipsMuch biggerMuch biggerggggMuch cheaper!Much cheaper!

Silicon is abundant (sand)Silicon is abundant (sand)Silicon is abundant (sand)Silicon is abundant (sand)NonNon--toxic, safetoxic, safe

PHYSICS: PHYSICS: How to Make ElectricityHow to Make Electricity

Silicone absorbs white sunlight Silicone absorbs white sunlight C l t i t t llid C l t i t t llid Causes electrons in atoms to collide Causes electrons in atoms to collide with each other with each other Activity creates + and Activity creates + and -- chargescharges

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

What are Solar Modules?What are Solar Modules?Modules or panels are made up of Modules or panels are made up of o es o pa e s a e a e p o o es o pa e s a e a e p o multiple cellsmultiple cells

Two kinds of PV modulesTwo kinds of PV modules

Monocrystalline = whole wafersMonocrystalline = whole wafers

Polycrystalline = composite wafersPolycrystalline = composite wafersPolycrystalline = composite wafersPolycrystalline = composite wafers

What are Solar Arrays?What are Solar Arrays?yy

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

3 B i S3 B i S3 Basic Systems:3 Basic Systems:

1.1. GridGrid--TieTie2.2. GridGrid--Tie / Battery BackTie / Battery Back--UpUp3.3. Stand Alone or OffStand Alone or Off--GridGrid

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

Net Metering:Net Metering:Net Metering: Net Metering: Electric meter can run both forwards Electric meter can run both forwards Electric meter can run both forwards Electric meter can run both forwards

and backwardsand backwards

Required of all electricity providersRequired of all electricity providers

If you come out ahead, the energy If you come out ahead, the energy

company is not required to pay you at company is not required to pay you at company is not required to pay you at company is not required to pay you at

certain ratecertain rate

Austin Energy pays wholesale rateAustin Energy pays wholesale rate

GridGrid ––Tie Battery BackTie Battery Back--Up:Up:Grid Grid Tie, Battery BackTie, Battery Back Up:Up:

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

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

AmpsAmpsRun TimeRun Time

GridGrid ––Tie Battery BackTie Battery Back--Up:Up:Grid Grid Tie, Battery BackTie, Battery Back Up:Up:Additional components used by this Additional components used by this systemsystem

GridGrid--tie Battery backtie Battery back--up Inverterup InverterCharge ControllersCharge ControllersCharge ControllersCharge ControllersBatteriesBatteries

Inverters have both outputs and inputsInverters have both outputs and inputsOUTPUTS are from Batteries or PV OUTPUTS are from Batteries or PV arrayarrayINPUTS are from the load center (grid) INPUTS are from the load center (grid)

Charge batteriesCharge batteriesCharge batteriesCharge batteriesMonitor voltageMonitor voltage

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

Stand Alone or OffStand Alone or Off -- GridGridStand Alone or Off Stand Alone or Off GridGridDesigned to meet Designed to meet allall power needspower needs

Necessary when location is not served by Necessary when location is not served by power companypower company

D i t i t D i t i t Design constraints Design constraints Surge ampsSurge ampsB tt b k h itB tt b k h itBattery bank amp hour capacityBattery bank amp hour capacityDays of backDays of back--up storage (poor sunlight)up storage (poor sunlight)Square footage for componentsSquare footage for componentsSquare footage for componentsSquare footage for componentsWe use a lot of electricity!We use a lot of electricity!

Majority of Installations:Majority of Installations: GridGrid--TieTieMajority of Installations: Majority of Installations: GridGrid--TieTie

Ideal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar Install

South facing roofSouth facing roofTilted to location’s Tilted to location’s Tilted to location s Tilted to location s latitude latitude

Austin = 30.27Austin = 30.27= to a 7 / 12 pitch= to a 7 / 12 pitch

ShadeShade--free area, free area, ,,every day of the every day of the yearyear

Ideal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar Install

We can provide the tilt…We can provide the tilt…

ComponentsComponentsComponents Components of a Solar Installationof a Solar Installation

PV Modules produces Direct PV Modules produces Direct ppCurrent (DC)Current (DC)

We use Alternating Current (AC)We use Alternating Current (AC)

Power must be converted from DC Power must be converted from DC Power must be converted from DC Power must be converted from DC to AC with an Inverterto AC with an Inverter

A Residential GridA Residential Grid –– Tie SystemTie SystemA Residential Grid A Residential Grid Tie SystemTie System

Service P l

InverterPanel

DC

PV Meter

AC

A Commercial GridA Commercial Grid –– Tie SystemTie SystemA Commercial Grid A Commercial Grid Tie SystemTie System

ACDisconnectPV Gutterbox DisconnectPV

MeterGutterbox

Inverter Combiner bDC boxDC

Disconnects

PV ARRAY PV ARRAY

How Much PowerHow Much PowerHow Much Power How Much Power Can You Produce?Can You Produce?

Austin Energy offers a fabulous rebate Austin Energy offers a fabulous rebate program: $3.75 per wattprogram: $3.75 per wattp g pp g p

A 23.6 kilowatt system “maxes out” their perA 23.6 kilowatt system “maxes out” their per--year allotment for commercial year allotment for commercial installationinstallationyear allotment for commercial year allotment for commercial installationinstallation

One rebate per year, per One rebate per year, per system (i.e. per meter)system (i.e. per meter)p y , pp y , p y ( p )y ( p )

The following calculations are based on a The following calculations are based on a 23 6 23 6 kW tkW t23.6 23.6 kW systemkW system


System SIZE: System SIZE: System SIZE: System SIZE: 23.6 kW = 23,600 Watts 23.6 kW = 23,600 Watts

Production per HOUR:Production per HOUR:System will produce 23 600 watts System will produce 23 600 watts System will produce 23,600 watts System will produce 23,600 watts per hourper hour


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

Production per MONTH:Production per MONTH:127,440 watt hours per day x 30.5 days per 127,440 watt hours per day x 30.5 days per month = 3,886,920 watt hours per month, or month = 3,886,920 watt hours per month, or 3 887 kWh/mo3 887 kWh/mo3,887 kWh/mo.3,887 kWh/mo.


One more factor….One more factor….The DC power produced from the system The DC power produced from the system The DC power produced from the system The DC power produced from the system must be converted to AC power must be converted to AC power This process looses power, so “This process looses power, so “deratingderatingThis process looses power, so This process looses power, so deratingderatingfactor” of .77 must be calculatedfactor” of .77 must be calculated3,886 kWh/month x .77 = 2,992 kWh/month3,886 kWh/month x .77 = 2,992 kWh/month, ,, ,

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

Austin Energy Bill Austin Energy Bill ––Example CustomerExample Customer

Average Monthly Usage:Average Monthly Usage:

Energy = 23,590 kW hoursEnergy = 23,590 kW hours

Demand = 52 kWDemand = 52 kW

Ave. Bill = $1,865.65 monthAve. Bill = $1,865.65 month

Yearly Austin Energy ChargesYearly Austin Energy ChargesYearly Austin Energy ChargesYearly Austin Energy Charges

$14,007.79 $8,380.00 $14,007.79

Energy Charge Demand Charge

PV for Example CustomerPV for Example CustomerPV for Example CustomerPV for Example Customer

23 623 6 kW system =kW system =23.623.6 kW system = kW system =

135135 panelspanels135135 panelspanels

PV for Example CustomerPV for Example Customer

23 623 6 kW system =kW system =


23.623.6 kW system = kW system =


At At 175 175 Watts eachWatts each







Power Output Power Output 18,19118,191 Watts ACWatts AC







Power Output Power Output 18,19118,191 Watts ACWatts AC

ProducingProducing 32,15432,154 kWh per yearkWh per year

Eco Equivalent:Eco Equivalent:Eco Equivalent:Eco Equivalent:43,852 Miles =

5 fewer cars on the road

856856 trees

4Yearly electricity use

of 4 Austin homes

Cost AnalysisCost AnalysisCost AnalysisCost AnalysisDEBIT CREDIT

$166kAustin Energy Rebate $85KPV System Cost

Customer's Out-of-Pocket $81KFederal Income Tax Credit $50K

$31KCost $31KCost

Subsidized 81%Subsidized 81%

Equipment DepreciationEquipment Depreciation

7 Year Schedule7 Year Schedule Year Amount1 $ 69,364

50% Bonus in 50% Bonus in year 1year 1

2 $ 11,0103 $ 9,437

Example based Example based 4 $ 8,0895 $ 13,266pp

on 50% tax on 50% tax bracketbracket

6 $ 13,2667 $ 13,266

BB LiLiBottom Bottom LineLine

Yearly energy Yearly energy savings ~ $3,400savings ~ $3,400At year 25 energy savings value is At year 25 energy savings value is At year 25 energy savings value is At year 25 energy savings value is projected to be projected to be ~ $~ $8,7008,700Payback period in 2 yearsPayback period in 2 yearsPayback period in ~2 yearsPayback period in ~2 yearsAccumulated savings over 25 years is Accumulated savings over 25 years is

$ $164K164K~ $~ $164K164KAverage ROR over 25 years 9%Average ROR over 25 years 9%

Other Financial ConsiderationsOther Financial ConsiderationsOther Financial ConsiderationsOther Financial ConsiderationsAfter the initial purchase, cost of your

i f P l d f 25 power is free. Panels are warranted for 25 years, but typically have up to a 40-year lifespan lifespan.

Solar reduces the peak load on your demand (kW) t(kW) meter.

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

Opportunity CostsOpportunity CostsOpportunity CostsOpportunity CostsIf you had invested your $54,000 in….y y $ ,

AMoney Market Accounts

Chase Bank 2.0%

Wells Fargo 1.76%

U i it F d l C dit U i 3 1% University Federal Credit Union 3.1%


*Mutual Funds*

Vanguard Institutional Index 2.21%

Fidelity Diversified International 1.22%

Fid lit M ll 39%Fidelity Magellan .39%*You would have lost on average 7% of your capital


C ’CD’s

3 month 3.13%

1 Year 3.62%

3 Y 3 88% 3 Year 3.88%


T Bills3 Month T Bill 1.85 6 Month T Bill 2.041 Year T Note 2.22

Federal Funds 2 Year Note 2.545 Year Note 3.2610 Year Note 4.0030 Year Note 4.61

Many variations…Many variations…Many variations…Many variations…









Questions?Questions?

1703 W. Koenig Lane1703 W. Koenig Lane

512512 459459 94949494Austin, TX 78756Austin, TX 78756

512512--459459--94949494www.txspc.comwww.txspc.com

Texas Solar Power CompanyTexas Solar Power Companyp yp yAustin, TexasAustin, Texas

Solar 101 Austin Energy Commercial Customers

Technology

system grid grid

solar energy

periodic cleaning grid

utility grid

grid tie battery backup

dc power

solar modules

uninterrupted power