Economics of Solar PV By Dan Catlin Energy Consultant & Air Quality Specialist, Fort McDowell Yavapai Environmental Department For presentation at: National Tribal Forum on Air Quality May 1, 2013

Solar Photovoltaic systems where, why, how, and when? Yes…sun exposure is Important! Location, location, location. Environmental, economic, and policy. Good design is important. Competition helps keep cost down. Now vs. later and expected ROI.

New Energy Paradigm: Distributed Generation (DG) Economic Reasons…focus on Solar DG Environmental Reasons Security Reasons Political Reasons

Energy usage and cost history? Electric rate schedule(s)? Energy inflation? Capital cost? Interest rates? Utility incentives? Federal & State incentives? Purchase vs. Purchase Power Agreements (PPA) vs. leasing vs. do it yourself? Solar Economics & ?s to ask

Solar information websites ATTS/version1/ ATTS/version1/

Location considerations

Small office building PV Watts Near Phoenix, Arizona projected 12.1 kw system KWhr tilt according array azimuth to utility to EnlightenAC energy kwh AC/DC default Derate: 0.77 production AC/DC derate: 0.95 meter year 2011 January February March April May June July August September October November December totals 22, year 2012 January February March April May June July August September October November December ,

Why differences between projected and Actual Line loss between Enlighten system measurement & utility measurement. Possible different time of day measurements taken. Average cloud covering assumed by PVwatts & actual cloud covering. Overly conservative assumptions of PVwatts but still gave good ball park projections.

Energy cost 10 cents/kwh January 2011 $ February 2011$ March 2011$ April 2011$ May 2011$ June 2011$ July 2011$ August 2011$ September 2011$ October 2011$ November 2011$ December 2011$ year total$

Return on Investment 54 PV modules Sharp 224 watt each 54 Enphase micro inverters Roof mounted March 2010 Installed cost of $52, $4.35/installed watt Using PVwatts & 10 cents/kwh –22.3 year payback or 4.5% ROI

Energy Cost Utility rate schedules Connection costs Demand charges Power factor charges Kilowatt-hour energy charges Time of Day & seasonal factors Future energy cost?? Energy storage and/or back-up power

Solar Advantage Covered Parking with PV LEED points Public Relations Easy-quick install with few approval issues Low maintenance needs Easy to monitor Proven technology

Urban Heat Island Problem Global Warming + City pavement = problem. Pavement absorbs solar energy & causes higher night time temperatures in cities. Shade is greatly appreciated in Central Arizona. Answer: more photovoltaic panels used shade pavement. Added benefit energy turned to electricity. Up to 20% of solar energy impacting commercially available solar modules converted to electricity rather than heat.

Apartment Complex-Mesa, AZ

ASU is setting example Covered parking with solar PV. Helps meet their sustainability goals. Possible lower cost electricity by use of PPAs (Purchase Power Agreements). Can charge more for the covered parking spaces.

Success Stories & Examples Competition is driving down the cost of installing Solar PV systems. Public support for renewable energy. Ramped up production. Employment.

Can start small

Works at Home also Tax credits Utility incentives Tax advantages (not taxed on what you save) May not impact property tax Increase value of home Great return on investment Inflation Hedge

Pole or roof mount or both

Title for next picture It’s not all about the environment If you build it they will come All work and no play makes for a dull existence Solar and water do mix Where would you like to be when it is 110 degrees outside? Lifestyle Decisions

Questions?? Dan Catlin Can be reached at Or