SOLAR BASICS

CONTENTS I.Introduction to Solar Technology II.Terminology: Solar Terms and Energy Terms III.Costs and Financing IV.Basics of Federal, State, and Utility Policy V.Solar Project Design Considerations

EXISTING SOLAR TECHNOLOGIES Solar Photovoltaic (PV) Solar Hot Water Concentrated Solar Power

SOLAR TECHNOLOGY: PV COMPONENTS Cell Panel / Module PV Array

SOLAR TECHNOLOGY: PV SYSTEMS Battery-less, grid-tied – grid connection, can be with or without net metering more than 90% of all installed PV in the US Battery-based, grid-tied – batteries plus ability to put power onto the grid Off-grid – only tied to a battery bank PV-direct – e.g. solar signs, street lights, solar calculator

SOLAR TECHNOLOGY: MOUNTING Solar PV systems can be ground mounted or roof mounted

SOLAR TERMS: SYSTEM COSTS Hardware Costs Solar Panels Balance of System Soft Costs Financing Permitting Customer Acquisition Installation Maintenance Total System Cost

SOLAR TERMS: SOFT COSTS

SOLAR TERMS: SOLAR CELL, MODULE, PANEL, ARRAY & SYSTEM

SOLAR TERMS: BALANCE OF SYSTEM Wiring Disconnect Switches Mounting System Inverter Solar Generation Meter The balance of system or BOS encompasses all components of a photovoltaic system other than the photovoltaic panels.

SOLAR PV TERMS: INVERTER, METER, DISCONNECT Inverter Utility Grade Solar Meter Disconnect Switch These requirements may vary by utility. The outlay of these items can vary visually.

SOLAR TERMS: SYSTEM COSTS Hardware Costs Solar Panels Balance of System Soft Costs Financing Permitting Customer Acquisition Installation Maintenance Total System Cost

SOLAR TERMS: INTERCONNECTION The technical and procedural requirements necessary to connect PV system to the electricity grid. Up until the 1970s utilities owned all generation and thus had total control over the process of how systems connected to the grid.

ENERGY TERMS: BASE LOAD AND PEAKING POWER Electrical power demand rises and falls during the course of a typical day. Base load power - the minimum amount of electricity used on the grid. Peaking power - the maximum amount of electricity used both anticipated and unanticipated.

Net metering allows for the delivery of excess electricity generated back to the utility grid for use elsewhere. This offsets electricity provided by the utility to the customer during the billing period. SOLAR TERMS: NET METERING

CONTENTS I.Introduction to Solar Technology II.Terminology: Solar Terms and Energy Terms III.Costs and Financing IV.Basics of Federal, State, and Utility Policy V.Solar Project Design Considerations

THE COST OF SOLAR PV

25% drop in price % drop in price Tracking the Sun VI: The Installed Cost of Photovoltaics in the US from (LBNL)

SOLAR MARKET: TRENDS Source: Solar Electric Power Association Today Grid Parity

SOLAR MARKET: CONSTANT PRICE Source: Solar Electric Power Association Today Grid Parity 25 years at today’s price

Solar Technology is similar to computer or cell phone technology in that as there are higher adoption rates, prices decreases. SOLAR MARKET: TECHNOLOGY CURVE Increased Solar PV Soft Costs Decline Hardware Costs Decline

POLICIES & INCENTIVES State and Utility Federal Qualified Clean Energy Bonds Accelerated Depreciation Investment Tax Credit Tax Credits Tax Exemptions Direct Cash Incentive Net Metering Renewable Energy Credits CLEAN Contract Loan Programs

POLICIES & INCENTIVES State and Utility Federal Qualified Energy Conservation Bonds Accelerated Depreciation Investment Tax Credit Tax Credits Tax Exemptions Direct Cash Incentive Net Metering Renewable Energy Credits CLEAN Contract Loan Programs

POLICIES & INCENTIVES State and Utility Tax Credits Tax Exemptions Direct Cash Incentive Net Metering Renewable Energy Credits CLEAN Contract Loan Programs Federal Qualified Clean Energy Bonds Accelerated Depreciation Investment Tax Credit

TAX CREDITS Corporate tax credit(s) only Personal + corporate tax credit(s) Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps. Personal tax credit(s) only Puerto Rico DC 24 states offer tax credits for renewables

PROPERTY TAX INCENTIVES 38 States, +Washington DC & Puerto Rico, offer property tax incentives for renewables. 38 States, +Washington DC & Puerto Rico, offer property tax incentives for renewables. DC Local governments authorized to offer exemption (no state exemption or assessment) State exemption or special assessment + local government option State exemption or special assessment only

SALES TAX INCENTIVES FOR RENEWABLES Puerto Rico DC State exemption + local governments (option) authorized to offer exemption or deduction State exemption or deduction 28 states + Puerto Rico offer sales tax incentives for renewables

RENEWABLE PORTFOLIO STANDARD Solar carve-out

RENEWABLE PORTFOLIO STANDARD A requirement on retail electric suppliers to supply a minimum percentage or amount of their retail load with eligible sources of renewable energy. Typically backed with penalties of some form Often accompanied by a tradable renewable energy credit (REC) program, to facilitate compliance, in the case of solar in PA and NJ these are called SRECs. Never designed the same in any two states

RENEWABLE PORTFOLIO STANDARD

RENEWABLE PORTFOLIO STANDARD – MID- ATLANTIC

CONTENTS I.Introduction to Solar Technology II.Terminology: Solar Terms and Energy Terms III.Costs and Financing IV.Basics of Federal, State, and Utility Policy V.Solar Project Design Considerations

DESIGN: ORIENTATION N S W E 100% 90% 75% 90% 75% Average loss in energy produced

DESIGN: SHADING Source: Renewable Energy World 10% shading of an array can lead to a 50% decline in efficiency

SOLAR PROJECT DESIGN Solar contractors prefer large square roofs. Solar panels usually need clear space of up to 24sq/m. Adequate space on the ground for a ground or pole mount installation. Is there space inside the home for a string-inverter?

FIRST RESPONDER CONSIDERATIONS First responder training should include: Assess the situation Visual identification Look for labeling Shut down the system Ensure circuit breaker is shut off Cover panels with opaque material Verify conduits are still intact Marking & labeling so when firefighters get there they know how to respond Setbacks so there is space to move about the roof and vent Electrical equipment in conduits and inverter strategically placed to prevent firefighters from cutting live wires

SOLAR READY II Solar Ready II is a part of the Department of Energy’ s SunShot Initiative. Solar Ready II aims to reduce the soft costs of solar and streamline the permitting process. The goal of Solar Ready II is to enable local governments to replicate successful solar practices to reduce soft costs and expand local adoption of solar energy.

FOR MORE INFORMATION Liz Compitello Research Analyst Energy and Climate Change Initiatives Delaware Valley Regional Planning Commission (215) Justin Dula Manager County & Regional Planning Delaware County Planning Department (610)