1. F LORIDA S OLAR E NERGY C ENTER Creating Energy Independence Since 1975 A Research Institute of the University of Central Florida Taking Charge of Our Energy Future Choosing the Better Pie James M. Fenton, Ph.D. Director

2. Current Projection New Generation for 2014

3. Why Not? New Generation for 2014

4. Economic Context  The economic implications of fuel purchases in Florida are large  At $2.50/gal = $23 billion/year for automotive fuel. Plus another $17 billion/year for electricity yields a total of $40 billion/year  At least half ($20 billion per year) leaves Florida’s economy as fuel payments to other states and nations.  Keeping this money in Florida would result in $40 to $60 billion/year (2-3 times the $20 billion exported) in real economic activity and job creation.  Florida ranks 5 th nationally in the amount of energy consumed per capita and 3 rd in total energy consumption. (This statistic does not account for tourists.)

5. Growth Opportunities  Florida has one of the nation’s fastest growing populations (1,000 new residents per day), promoting rapid expansion of an energy industry that imports its fuel supplies.  160,000 new homes per year in Florida  The tourist industry brings upwards of 80 million visitors a year to Florida, adding to the burgeoning demand.

6. Florida Solar Energy Center  Created in 1975 by the Florida Legislature  The energy research institute of the state of Florida  Mission is research, testing and education  More than $9 - 12 million annually in external contracts and grants  The experience, staff (>140) and capabilities to help solve our energy problems and help meet our energy needs  Began as a “solar energy” center, but grew into many new research and development areas  Housed in one of the world’s most energy-efficient buildings.

7. Florida Solar Energy Center Creating Energy Independence Since 1975 A Research Institute of the University of Central Florida

8. FSEC Program Areas  High-Performance Buildings (energy efficiency)  Solar Thermal Systems (today’s cost-effective solution)  Photovoltaics (solar electricity)  Testing & Certification (protecting Florida’s citizens)  Hydrogen and Fuel Cells (the future’s fuels and engines)  Education and Training (Florida’s workforce for today and the future)  Alternative Fuels & Transportation (an agricultural opportunity for Florida)

9. Some FSEC Highlights  Our buildings research has helped save state residents more than $2.2 billion in energy costs.  Our solar research has led to more than 250,000 solar water heating systems installed in the state – saving homeowners $30 million annually.  We have trained more than 15,000 industry professionals, government officials and others.  Our PV research has helped accelerate a market now growing 30 percent annually.

10. The Art of the Possible The Lakeland House Project

11. Efficiency First

12. Electric Power: Business-as-usual?

13. Residential Dominates 2004 Actual Energy Use by Sector (233 TWh)

14. Governor Bush on Energy “… the cheapest, easiest and fastest kilowatt we can generate is the one we save through efficiencies. There is a consensus on conservation and efficiency, so let us start there.” Jeb Bush, 2000

15. Pay Me Now Or... Pay me more later!

16. #1 Recommendation “Create or designate an entity to oversee state energy policy. Give it the authority, responsibility and appropriations it needs and hold it accountable for accomplishing its mission.” Source: “Florida’s Energy Future: Opportunities for Our Economy, Environment and Security.” Report to Florida DEP, January 2004. (available online at www.fsec.ucf.edu)

17. New Opportunities: Federal Tax Credits!  $2,000 to builders of highly efficient new residences  30% of expenditures, up to $2,000, to purchasers of residential solar hot water systems  30% of expenditures, up to $2,000, to purchasers of residential PV systems.  Up to $500 for energy-efficiency improvements to existing homes. Residential Buildings

18. Sweetening the Pot  There are many additional federal income tax incentive opportunities in commercial buildings, transportation, etc.  But,... If Florida wants to maximize the availability of federal income tax incentives and transform its marketplace for high- efficiency buildings, then Florida will need to step up to the plate and provide additional incentives.

19. Example Incentives  Add the following performance-based Florida consumer rebates to to the federal income tax credits:  Solar hot water systems – $0.30 per annual kWh equivalent saved  Home efficiency – $0.30 per annual kWh equivalent saved  Photovoltaic systems – $2.50 per peak watt installed (minimum installation = 2 kW-peak)

20. Payoff to Florida

21. The 25 TWh Example  160,000 new Florida homes per year  24,000 tax credit homes per year  24,000 solar water heaters per year  6.2 million existing Florida homes  62,000 home improvements (15%) per year  62,000 solar water heaters per year  Photovoltaic Systems  9,000 PV systems per year (2 kW peak)

22. Off-the-Shelf Technology 40% annual energy savings (~$630) 2.06 kW 2000 sq.ft., 3 BR, single story, concrete block home

23. Florida Benefits Total energy savings24.7 TWh Total consumer cost savings$2.47 billion Total fuel not purchased$1.24 billion Avoided capacity1,669 MW Avoided generation costs$1.67 billion New jobs126,000 Tradable renewable energy credits (TRECs) $420 million CO 2 savings26.4 million tons Cumulative Ten Year Totals

24. Costs & Benefits Cost ($mil) Benefit (GWh) Example Florida “Home Improvement” program $374 * 4,497 2004 Florida DSM program$240 239 * 50% of Florida “Home Improvement” costs covered by federal tax credits – actual cost to Florida is only $187 million per year.

25. The Homes Benefit

26. A Very Different Result Old Pie New Pie