SOLAR ELECTRIC GENERATING

SYSTEMS FOR

COMMERCIAL PROPERTIES

Ian Diamond

Solar Power Consultant

RenergyCo, LLC

©Copyright 2010, Ian Diamond (914) 419-3134. Please contact author for permission to reproduce in part or full.

AUGUST 14TH, 2003

Northeast Blackout of 2003

8 States + Southeastern Canada

50 Million people lost power

Cause Factors: Grid Faults and Grid

Overload

MEETING FUTURE ELECTRICITY LOAD Load Growth expected of 1.05%

annually to 2030

Increase electricity generationPower Plants

Clean Coal Nuclear

Renewable Energy Wind Solar

WHAT IS SOLAR ENERGY? Solar Electric Generating System

aka: Solar Power aka: Solar PV

Photo-VoltaicProducing electricity from light

Solar Thermal E.g.: Solar Hot Water

Utilizing energy from heat

WHY SOLAR POWER? Increasing Energy/Electricity Demands Unlimited Resource. cf: fossil fuels Distributed Generation. cf: Transmission

costs and infrastructure Maximum production during peak

demand Helps Utility Energy Management Clean. cf: Gas, Clean Coal, Nuclear NIMBY or YOYR (Yes, On Your Roof) Eventual Unsubsidized Grid Parity

ROOFTOP SYSTEMBayonne School System 87.5kW

MOUNTING OPTIONS Rooftop

Flush Mounted, Affixed (typical single-family residential)

Tilt-mounted, ballasted (typical flat roof)Tilt-mounted, affixed (flat roof)

GroundGround or pole-mountBallasted (paved areas)

Car Port StructureParking lots – Solar Car Ports

ROOFTOP SYSTEMBayonne School System 158kW

ROOFTOP SYSTEMNorth Bergen School 355kW

BALLASTED ROOFTOP SYSTEMNesquehoning PA - 700kW

GROUND MOUNT SYSTEMMarlboro Township Water Department 600kW

SOLAR CANOPIESWilliam Paterson University, Wayne, New Jersey

SOLAR CANOPIESCalifornia

ROOFTOP PREFERENCES Facing true south (+/- 60°) Pitch: 0°- 45° (Optimum Production:

35°) No obstructions

Off roof: no trees, taller buildings, higher walls

On-roof: Parapet walls, bulkheads, HVAC equipment,

vents

Roof Life: 15+ years No structural load issues

TYPICAL SYSTEM Crystalline Panels Roof mounted / Ground mount Grid-tied (no batteries) Fixed mounting (no rotation) Net Metered Distributed Generation (On-site)

SYSTEM SIZING Flush Roof Mount

Example: single-family residential pitched roofsouth facing, unobstructed, 500sf

12W-13W / square foot = 6kW Solar PV system

Tilt Roof MountExample: commercial or multi-family flat

roofunobstructed, 6000sf

8W-10W / square foot= 48kW Solar PV system

PRODUCTION VALUE 1kW Solar PV produces approximately

1200 kWh per year5kW = 6,000 kWh/year50kW = 60,000 kWh/year

Avoided Electricity CostCon Edison @ $0.18 - $0.24/kWh Escalating electricity costs > 5% annually

System Life: 30+ years

SYSTEM COST Variables

System SizeLocation Building HeightFlush/Tilt;Ballasted/Affixed

Residential: $5.50-$6.50/Watt Commercial: $4.25-$5.25/Watt (excluding NYC)

TECHNOLOGY & FUTURE IMPROVEMENTS Mature technology of 30+ years

development and production Small incremental improvements

Smaller Tolerances Inverter efficiency improved

Improvements & ApplicationsWider applications

Thin-filmPart of roof membraneSolar walls

Building Integrated PV (BIPV) – solar shingles Transparent panels Solar Canopies (Car ports, etc)

MAINTENANCE Occasional cleaning (bi-annual) Remote Performance Monitoring No moving parts Annual system check

Electrical wiring InverterPanels

30+ year system life Inverter replacement (15 years ?) Roof membrane accessible

EVALUATION & PROJECT PROCESS• Preliminary consultation - identifying client needs &

interest, informing client on the economics of solar including all incentives

• Analysis of client electricity usage & cost, and solar electricity production potential of site

• Detailed Proposal with complete costs, production value, and complete breakdown of incentives including all applicable rebates, tax credits and production-based incentives

• Complete Solar Project from applications to interconnection and including all permitting, engineering & complete installation and integration.

SOLAR IS SIMPLE

• Feasibility Analysis.

• Contract signing with deposit

• Permitting, Design & Engineering. 3 Months

• Installation. 1-2 Months

• Electricity Production. You’re producing your own electricity for 25+ years.

QUESTIONS?Solar Feasibility & Analysis

Ian DiamondSolar Power Consultant

(914) 419-3134RenergyCo, LLC

www.RenergyCo.com

©Copyright 2010, Ian Diamond (914) 419-3134. Please contact author for permission to reproduce in part or full.

EXAMPLE: 50 KW MULTI-FAMILY RESIDENTIAL SYSTEM – NYC

Gross System Cost ($7/W) $350,000

NYSERDA Rebate ($1.75/W) -$87,500 25%

Federal Grant/Tax Credit (30%) -$105,000 30%

State Tax Credit (25% of rebated cost, $5,000 cap per owner)

-$65,625 18.75%

NYC Property Tax Abatement (35% of rebated cost)

-$91,875 26.25%

Total Net Cost after incentives $0

Annual avoided electrical costs (@ $0.20/kWh)

$12,000

SOLAR ELECTRIC GENERATING SYSTEMS - CONCLUSION Solar utilizes underused property

(rooftops, parking lots, etc) to provide on-site electricity

Solar Distributed Generation (On-site, Behind the meter) provides localized electricity – no extra burden on transmission infrastructure

Solar PV is extremely important component to help us meet increasing global electricity needs

EXAMPLE: 200KW COMMERCIAL SYSTEM – NEW JERSEY (WITH PSE&G SOLAR LOAN)

Gross System Cost ($5.25/W) $1,050,000

Federal Grant (30%) -$315,000

Net System Cost $735,000

PSE&G Solar Loan -$588,643

Net Investment Required $146,357

Annual avoided electrical costs (year 1)(@ $0.15/kWh)

$34,220

Payback: 2-4 Years

Rate of Return: > 20%

INCENTIVES (CONT’D) State - New Jersey

Rebate Program closed

Solar Renewable Energy Certificates (SREC’s) – Production Credits sold to Load Serving Entities (LSE’s). Current Market Value: $650/SREC (= $0.65/kWh) SREC Life – 15 years

Utility Funding Incentives PSE&G Solar Loan Program

50-60% of Project Cost paid by assigning SREC’s to PSE&G

JCP&L, ACE: SREC-based financing 10-15 year contract to purchase SREC’s

average contract value: $424/SREC for 10 years

INCENTIVES (CONT’D) State – New York

Personal Tax Credit 25% of Net System Cost (after Rebate) up to $5,000 (multi-family – each apartment owner eligible for up to

$5,000)

New York City Property Tax Abatement

35% of Net System Cost (after Rebate & Grant) – 2010 20% of Net System Cost (after Rebate & Grant) – 2011-

2012

Municipal Property Assessed Clean Energy (PACE) Financing

INCENTIVES Federal

30% of Gross System Cost Commercial: Investment Tax Credit

2010 available as a Grant. Residential: Personal Tax Credit (30% of rebated

cost) 5 year MACRS

Accelerated Depreciation

State – New York NYSERDA Rebate

$1.75/Watt up to 5kW Residential $1.75/Watt up to 50kW Commercial Per metered account