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Solar Water Heating Regional Member Services Conference Savannah, Georgia March 2010.

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Presentation on theme: "Solar Water Heating Regional Member Services Conference Savannah, Georgia March 2010."— Presentation transcript:

1 Solar Water Heating Regional Member Services Conference Savannah, Georgia March 2010

2 A Solar Tutorial Open Loop Systems An open loop system is open to the potable water, that is the potable water circulates through the solar panels to be warmed. –Active –Passive Closed Loop Systems A closed loop system is closed to the potable water, that is the potable water does NOT circulate through the solar panels to be warmed. A separate loop transfers the heat from the collector to the storage tank. –Active Solar Water Heating Systems fall into 2 groups

3 Flat Plate –“Thin plate” –“Thick plate” Integrated Collector Systems Vacuum or Evacuated Tube Collector Types

4 Thin Plate Collectors Use with Open or Closed Loop Systems –Slimmer roof profile –Less weight –Can protect from freezing

5 Thick Plate Collectors Used with Open Loop Systems –No moving parts –Low cost –No freeze protection –Heavy

6 Vacuum or Evacuated Tubes Used with Closed Loop Systems –High temperature (exceeds DHW temps needed) Ideal for +180 degree F Temps – Industrial Applications –High efficiency –High cost –Highly fragile

7 How Solar Water Heating Works Solar Energy: The Sun Begins To Shine. The light rays hit the panels on the roof. Solar Water Heating Panels: Panels begin to heat up which activates the Solar Loop Pump. Panels gain heat as the Sun intensifies. Solar Water Heater with Wraparound Heat Exchanger : Water sits in the center of the tank. The heat Exchanger is wrapped around it. Solar Loop Pump: The pump moves the heat transfer fluid through the Solar Loop Solar Loop: Heat Transfer Fluid is 50%Glycol / 50% Water and circulates continuously through the Solar Loop gaining heat. When the Sun isn’t Shining (Cloudy Days or at Night) Solar Water Heating Panels: The panels cool off and deactivate the Solar Loop Pump Solar Loop Pump: The pump shuts off Solar Loop: The fluid stops circulating. Solar Water Heater: The back up heater on the tank comes on. (electric shown) The heat transfer fluid continuously flows through the system whenever the sun is shining. The copper pipes continue to heat up. The heat transfers from the solar heat transfer fluid to the water in the tank by heating the copper wrapped around the tank. This cycle continues as long as the sun is shining. But what happens when the Sun isn’t shining? You ALWAYS have Hot Water! If the Sun is Shining it’s a “FREE Hot Water Day!” Closed Loop: Freeze Protected System

8 Solar & the USA

9 So why doesn’t everyone have one? Upfront costs to homeowners –Economy is down, when SWH is needed the most! –Financial mechanisms not in place No Tax liability to offset tax credit incentives –Layoffs, work hour reductions etc. May not be ideal candidate –No South facing roof plane, trees - shading

10 Incentive Programs Help Homeowners afford the installation of energy efficient and renewable products, which in the end, help us all. –Insulation, heat pumps, CFL’s, appliances, geo-thermal systems, photovoltaic panels, solar water heating systems, passive solar, solar space heating systems…

11 Federal Tax Incentives 30% Tax Credit on Installed Solar Water Heating Systems –Systems must be SRCC 100 rated – Can carry credit over to 2016 tax year –Covers installation and components

12 State Tax Incentives StateType IncentiveAmount (Applies to Residential, unless noted otherwise) ArkansasRebate $30/sf < 320 sf of collectors or $15/sf > 320 sf of collectors DelawareRebate 50% to $3,000 FloridaRebate $500 Homes, $100 Pools GeorgiaTax Credit 35% Can carry over 5 years. KentuckyTax Credit 30% with $500 Limit. Can carry over 1 year. LouisianaTax Credit 50% Excess credit is refundable North CarolinaTax Credit 35% with $3,500 Limit. Can carry over 5 years. South CarolinaTax Credit 25% with $3,500 Limit or 50% of tax liability for that year. Can carry over 10 years TennesseeGrant 40% Commercial/Industrial only up to $75,000 Limit VirginiaRebate $1,000 per kW equivalent

13 Utility Rebate Programs StateUtilityAmount of Rebate (Applies to Residential, unless noted otherwise) DelawareDelaware Electric Cooperative50% to $3,000 FloridaProgress Energy, Gainesville Regional Utilities, City of Tallahassee $450, $500, $450 respectively GeorgiaWalton EMC, Cobb EMC, GreyStone Power, Jackson EMC Up to $600, $450, $500, $450 respectively North CarolinaBlue Ridge EMC, Piedmont EMC, Progress Energy (Pilot), South River EMC $500, $500, $1,000, $1,000 respectively South CarolinaProgress Energy (Pilot)$1,000

14 How the Incentives Work… LA EXAMPLE: $5,000 solar system (components and installation) The State of Louisiana gives a 50 % Credit ($5,000 *.50 = $2500) Income is increased by $2500 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $2500 is taxed as income (using 30% here) reducing the savings by $750 leaving a $3250 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $1750 LA EXAMPLE: $5,000 solar system (components and installation) The State of Louisiana gives a 50 % Credit ($5,000 *.50 = $2500) Income is increased by $2500 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $2500 is taxed as income (using 30% here) reducing the savings by $750 leaving a $3250 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $1750 GA EXAMPLE: $5,000 solar system (components and installation) The State of Georgia gives a 35% Credit ($5,000 *.35 = $1750) Income is increased by $1750 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $1750 is taxed as income (using 30% here) reducing the savings by $525 leaving a $2725 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $2275 GA EXAMPLE: $5,000 solar system (components and installation) The State of Georgia gives a 35% Credit ($5,000 *.35 = $1750) Income is increased by $1750 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $1750 is taxed as income (using 30% here) reducing the savings by $525 leaving a $2725 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $2275 SC EXAMPLE: $5,000 solar system ( components and installation) The State of So. Carolina gives a 25% Credit ($5,000 *.25 = $1250) Income is increased by $1250 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $1250 is taxed as income (using 30% here) reducing the savings by $375 leaving a $2375 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $2625 SC EXAMPLE: $5,000 solar system ( components and installation) The State of So. Carolina gives a 25% Credit ($5,000 *.25 = $1250) Income is increased by $1250 The Federal Gov’t gives a 30% Credit ($5,000 *.30 = $1500) The $1250 is taxed as income (using 30% here) reducing the savings by $375 leaving a $2375 net savings on the Solar Water Heating System. Solar Water Heating System Final Cost: $2625

15 Homeowner - ROI System Type Closed Loop Water Source City (Surface) Water Roof Surface Asphalt Shingles Solar design based upon a location with characteristics of Athens, Georgia Case 2 ADULTS, 2 PRE TEENS

16 Importance of Utility SWH Programs Reduces homeowner’s upfront costs. Reduces customer’s utility bills Improves customer perception of utility

17 Utility Benefits of SWH Program Reduces Customer Bills Improved Customer Service Manage Peak Loads (Demand-Side) Diversifying Utility Resource Mix Meeting or Anticipating Regulatory Requirements Supporting Economic Development Generating Valuable REC’s Reducing Purchased Power Costs Deferring or Optimizing Distribution Construction Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

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19 Types of Utility SWH Programs Rebate Program Utility Ownership Vender Partnership

20 Utility Rebate Program Utility program rests on rebates paid to solar customers. Most common utility program model. Relatively simple to implement Typically incorporates utility market-building activities, such as outreach, market segmentation, technical guidelines, etc… Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

21 Utility Ownership The utility provides turnkey SWH energy services. The best-known example is Lakeland Electric Model is also being used by co-ops providing non- solar equipment, such as the Colorado-based Delta-Montrose REC geothermal program. The utility can shape this model strategically to target high-value customers and load management. The model generates revenues and savings to the utility. It offers customers SWH service with no upfront cost and strong reliability benefits. Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

22 Vendor Partnerships In this business model the utility works with a vendor, who provides turnkey SWH services. Similar to the ESCO model that is very popular for all kinds of energy services. It is also being tested by Lakeland. It maximizes current tax incentives - Vendor can benefit from the 30-percent solar investment tax credit and accelerated depreciation, so long as it owns the system (a valid lease for roof space may be required). The utility benefits by outsourcing technology risks and by holding leverage with the vendor to meet utility needs, such as integrating load management. The utility may acquire RECs through negotiation with the vendor. Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

23 SWH Program Framework Utility Situation Analysis Assessment of SWH Local Technical Potential Assessment of SWH Local Market Potential Review of Technical Requirements for Systems and Installations Review of Incentives and Financing Options Testing, Using Modeling and/or a Pilot Program - Pilot or Model Data Assessment - Customer Economic Screening (C-EST) - Utility Economic Screening (U-EST) Business Model Assessment and Selection - Rebate - Utility Ownership - Vendor-Partner Utility Program Design, including - Market Segmentation - Integrated Marketing Campaigns - Technical Guidelines - Administration and/or Vendor Management - Monitoring and Evaluation Utility Situation Analysis Assessment of SWH Local Technical Potential Assessment of SWH Local Market Potential Review of Technical Requirements for Systems and Installations Review of Incentives and Financing Options Testing, Using Modeling and/or a Pilot Program - Pilot or Model Data Assessment - Customer Economic Screening (C-EST) - Utility Economic Screening (U-EST) Business Model Assessment and Selection - Rebate - Utility Ownership - Vendor-Partner Utility Program Design, including - Market Segmentation - Integrated Marketing Campaigns - Technical Guidelines - Administration and/or Vendor Management - Monitoring and Evaluation Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

24 Questions? Thank you for attending! Sunny Regards – Power Partners Solar


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