1. Is Solar Right for Me? Neil Kaminar June 15, 2010 Neil Kaminar June 15, 2010

2. Neil Kaminar Contact Information  www.thesolardesignbook.com www.thesolardesignbook.com  Portion of photos courtesy of the National Renewable Energy Laboratory (NREL)  No affiliation with NREL  www.thesolardesignbook.com www.thesolardesignbook.com  Portion of photos courtesy of the National Renewable Energy Laboratory (NREL)  No affiliation with NREL

3. Is Solar Right for Me?  Why should I install solar on my house?  Can I sell the power to the utility company?  Doesn’t it cost a lot?  Do I need a basement full of batteries?  Won’t it look funny on my roof?  Is funding available?  How do I get started?  Why should I install solar on my house?  Can I sell the power to the utility company?  Doesn’t it cost a lot?  Do I need a basement full of batteries?  Won’t it look funny on my roof?  Is funding available?  How do I get started?

4. Two Solar Types, Thermal and Electric  Solar thermal heats water for domestic use

5. This Talk is About Solar Electric  Solar electric makes electricity using solar cells

6. Solar Electric  Also known as photovoltaics or PV  Makes direct current (DC)  Like a battery  Only makes electricity when the sun is shinning  More sun, more current  Doesn’t store electricity  Also known as photovoltaics or PV  Makes direct current (DC)  Like a battery  Only makes electricity when the sun is shinning  More sun, more current  Doesn’t store electricity

7. 2.5 KW in Glastonbury, Connecticut

8. Average System Size  Average 2,000 sq ft house  Uses10,000 KWh of electricity per year  5.7 KW system (rated power)  Makes 10,097 KWh of electricity per year  Depends on many factors  $24,000 just for modules (4.21 $/W)  Before any credits or rebates  www.solarbuzz.com/moduleprices.htm www.solarbuzz.com/moduleprices.htm  www.energy.ca.gov/distgen/equipment/photovoltaic/ cost.html www.energy.ca.gov/distgen/equipment/photovoltaic/ cost.html  Average 2,000 sq ft house  Uses10,000 KWh of electricity per year  5.7 KW system (rated power)  Makes 10,097 KWh of electricity per year  Depends on many factors  $24,000 just for modules (4.21 $/W)  Before any credits or rebates  www.solarbuzz.com/moduleprices.htm www.solarbuzz.com/moduleprices.htm  www.energy.ca.gov/distgen/equipment/photovoltaic/ cost.html www.energy.ca.gov/distgen/equipment/photovoltaic/ cost.html

9. Factors that Effect Output  Orientation (south facing best)  Tilt (about 40 degrees best here in NC)  Location (Sunbelt is best)  Temperature (lower is better)  Shadowing (no shadows best)  Soiling (keep it clean)  Efficiency of inverter (about 95%)  Age of system (less than 1% loss per year)  Wiring losses (typically 3%)  Orientation (south facing best)  Tilt (about 40 degrees best here in NC)  Location (Sunbelt is best)  Temperature (lower is better)  Shadowing (no shadows best)  Soiling (keep it clean)  Efficiency of inverter (about 95%)  Age of system (less than 1% loss per year)  Wiring losses (typically 3%)

10. 6 KW in Purcellville, Virginia

11. Grid-Tied or Stand-Alone  Grid-tied are connected to the grid  Most common application today  Excess power goes to grid for use by neighbors  System will NOT work during power outage  Special systems operate during power outages  Stand-alone are not connected to the grid  Batteries store the energy  Night  Cloudy days  Grid-tied are connected to the grid  Most common application today  Excess power goes to grid for use by neighbors  System will NOT work during power outage  Special systems operate during power outages  Stand-alone are not connected to the grid  Batteries store the energy  Night  Cloudy days

12. Grid-tied Buy-all/Sell-all System  Home owner buys power used by home  Home owner sells power made by solar system  Home owner buys power used by home  Home owner sells power made by solar system

13. Inverter Changes DC to AC

14. Why Should I Put Solar On My Roof?  Could save you money  Generates income  Will help the environment  Improved property value  Will reduce the dependence on oil and coal  Will help the foreign trade balance  Could save you money  Generates income  Will help the environment  Improved property value  Will reduce the dependence on oil and coal  Will help the foreign trade balance

15. Can I Sell the Power to the Utility Company?  Option 1, Duke Energy buys excess energy Eliminates or reduces bill and sells any excess

16. Can I Sell the Power to the Utility Company?  Option 2, Duke “banks” excess energy Eliminates or reduces bill

17. Can I Sell the Power to the Utility Company?  Option 3, Buy-all / sell-all Sell all at high rate, buy at normal rate

18. What is NC GreenPower?  http://www.ncgreenpower.org/ http://www.ncgreenpower.org/  Independent, nonprofit organization  Funded by voluntary contributions  Private individuals  Companies  48 North Carolina Utilities  Buys REC’s (Renewable Energy Credits)  Currently 15 ¢/KWh  http://www.ncgreenpower.org/ http://www.ncgreenpower.org/  Independent, nonprofit organization  Funded by voluntary contributions  Private individuals  Companies  48 North Carolina Utilities  Buys REC’s (Renewable Energy Credits)  Currently 15 ¢/KWh

19. NC GreenPower  Owner sends in copy of utility statement  NC GreenPower pays within 30 days  Prefers to pay quarterly  Owner sends in copy of utility statement  NC GreenPower pays within 30 days  Prefers to pay quarterly

20. Can I Sell the Power to the Utility Company?  Buy-all / sell-all option  Green Energy NC pays 15 ¢/KWh (REC)  http://www.ncgreenpower.org/types/form/index.php http://www.ncgreenpower.org/types/form/index.php  Duke Energy pays average 7 ¢/KWh  http://www.duke-energy.com/customer-owned- generation/nc-gen-rate-options.asp http://www.duke-energy.com/customer-owned- generation/nc-gen-rate-options.asp  Federal credit 2.1 ¢/KWh  http://www.dsireusa.org/incentives/incentive.cfm?Inc entive_Code=US33F&re=1&ee=1 http://www.dsireusa.org/incentives/incentive.cfm?Inc entive_Code=US33F&re=1&ee=1  You sell energy at 24.1 ¢/KWh  You buy energy at 8.5 ¢/KWh  Buy-all / sell-all option  Green Energy NC pays 15 ¢/KWh (REC)  http://www.ncgreenpower.org/types/form/index.php http://www.ncgreenpower.org/types/form/index.php  Duke Energy pays average 7 ¢/KWh  http://www.duke-energy.com/customer-owned- generation/nc-gen-rate-options.asp http://www.duke-energy.com/customer-owned- generation/nc-gen-rate-options.asp  Federal credit 2.1 ¢/KWh  http://www.dsireusa.org/incentives/incentive.cfm?Inc entive_Code=US33F&re=1&ee=1 http://www.dsireusa.org/incentives/incentive.cfm?Inc entive_Code=US33F&re=1&ee=1  You sell energy at 24.1 ¢/KWh  You buy energy at 8.5 ¢/KWh

21. What Determines Sell Rate  Rate schedule at http://www.duke- energy.com/pdfs/ncppnh.pdfhttp://www.duke- energy.com/pdfs/ncppnh.pdf  Option A, 5-year rate to Distribution System  On peak  6.33 ¢/KWh Energy Credit  2.72 ¢/KWh Capacity Credit  June-September & December-March  M-F 7 AM - 11 PM  Off peak  4.64 ¢/KWh Energy Credit  0.54 ¢/KWh Capacity Credit  Rate schedule at http://www.duke- energy.com/pdfs/ncppnh.pdfhttp://www.duke- energy.com/pdfs/ncppnh.pdf  Option A, 5-year rate to Distribution System  On peak  6.33 ¢/KWh Energy Credit  2.72 ¢/KWh Capacity Credit  June-September & December-March  M-F 7 AM - 11 PM  Off peak  4.64 ¢/KWh Energy Credit  0.54 ¢/KWh Capacity Credit

22. What Determines Sell Rate  Option B, 5-year rate to Distribution System  On peak  6.63 ¢/KWh Energy Credit  9.58 ¢/KWh Capacity Credit  June 1 through September 30  M-F 1 PM - 9 PM  Other months  M-F 6 AM - 1 PM  Off peak  Other hours, weekends, and holidays  5.12 ¢/KWh Energy Credit  1.48 ¢/KWh Capacity Credit  Option B, 5-year rate to Distribution System  On peak  6.63 ¢/KWh Energy Credit  9.58 ¢/KWh Capacity Credit  June 1 through September 30  M-F 1 PM - 9 PM  Other months  M-F 6 AM - 1 PM  Off peak  Other hours, weekends, and holidays  5.12 ¢/KWh Energy Credit  1.48 ¢/KWh Capacity Credit

23. More Information from Duke Energy  Solar Energy FAQ  http://www.duke-energy.com/pdfs/customer- generation-solar-energy-faq.pdf http://www.duke-energy.com/pdfs/customer- generation-solar-energy-faq.pdf  Project Check List  http://www.duke-energy.com/pdfs/checklist- nc.pdf http://www.duke-energy.com/pdfs/checklist- nc.pdf  Customer Owned Generation Homepage  http://www.duke-energy.com/customer- owned-generation/nc-main.asp http://www.duke-energy.com/customer- owned-generation/nc-main.asp  Solar Energy FAQ  http://www.duke-energy.com/pdfs/customer- generation-solar-energy-faq.pdf http://www.duke-energy.com/pdfs/customer- generation-solar-energy-faq.pdf  Project Check List  http://www.duke-energy.com/pdfs/checklist- nc.pdf http://www.duke-energy.com/pdfs/checklist- nc.pdf  Customer Owned Generation Homepage  http://www.duke-energy.com/customer- owned-generation/nc-main.asp http://www.duke-energy.com/customer- owned-generation/nc-main.asp

24. Doesn’t It Cost a Lot  $20,000 to $60,000 depending on size  Less 30% Federal tax credit*  Less 35% North Carolina tax credit*  Maximum of $10,500 on solar electric  Deduct interest from taxes  Improved property value  80% property tax exclusion*  Could be 5 to 15 year payback  Systems last 30 years or more * www.dsireusa.orgwww.dsireusa.org  $20,000 to $60,000 depending on size  Less 30% Federal tax credit*  Less 35% North Carolina tax credit*  Maximum of $10,500 on solar electric  Deduct interest from taxes  Improved property value  80% property tax exclusion*  Could be 5 to 15 year payback  Systems last 30 years or more * www.dsireusa.orgwww.dsireusa.org

25. Doesn’t It Cost a Lot?  $30,000 for 5 KW ($6.00 per Watt)  Subtract $9,000 Federal tax credit  Subtract $10,500 NC tax credit  Net cost = $10,500 ($2.11 per Watt)  $30,000 for 5 KW ($6.00 per Watt)  Subtract $9,000 Federal tax credit  Subtract $10,500 NC tax credit  Net cost = $10,500 ($2.11 per Watt)

26. Do I Need a Basement Full of Batteries?  No, utility “stores” energy like a huge battery  Batteries are required if you live off the grid  Battery systems are much more expensive than grid-tied systems  But far less expensive than running a generator  No, utility “stores” energy like a huge battery  Batteries are required if you live off the grid  Battery systems are much more expensive than grid-tied systems  But far less expensive than running a generator

27. Off-Grid (Stand-Alone) Systems Use Batteries Large battery bank for a large house Small battery/ inverter for a cabin

28. Won’t It Look Funny on My Roof?  Standard solar modules stick up above roof surface  Can sometimes be hidden  Standard solar modules stick up above roof surface  Can sometimes be hidden

29. Modules are available that blend in with roofing  Can you see the two types of modules on this roof?

30. Modules Can Blend Into Roof  A careful layout of modules

31. Modules Can Be Incorporated Into the Building Design  Modules can become an architectural element

32. Is Funding Available?  Most systems financed with home equity loan  Can deduct interest from taxes  At the present time, interest is low  Duke does not currently offer a rebate for solar systems, other utility companies do  Federal loan program available  http://www.dsireusa.org http://www.dsireusa.org  May also finance through manufacturer  Most systems financed with home equity loan  Can deduct interest from taxes  At the present time, interest is low  Duke does not currently offer a rebate for solar systems, other utility companies do  Federal loan program available  http://www.dsireusa.org http://www.dsireusa.org  May also finance through manufacturer

33. How Do I Get Started? Step 1  Collect 2 years of bills from Duke  Haven’t saved them? Go on line  http://www.duke-energy.com/north- carolina.asp http://www.duke-energy.com/north- carolina.asp  You want yearly energy use  KWh total per year  Average monthly bill  Total over year divided by 12  Collect 2 years of bills from Duke  Haven’t saved them? Go on line  http://www.duke-energy.com/north- carolina.asp http://www.duke-energy.com/north- carolina.asp  You want yearly energy use  KWh total per year  Average monthly bill  Total over year divided by 12

34. Step 2 (installers can do this)  Measure roof size, slope, and orientation  Ideal orientation and full sun?  South facing at 30 to 45 degrees tilt  No shadows  If far from ideal, a solar system on your roof may not be economical  Solar calculator at www.pvwatt.orgwww.pvwatt.org  Are repairs needed?  Roofing in excellent condition  Structure is sound  Measure roof size, slope, and orientation  Ideal orientation and full sun?  South facing at 30 to 45 degrees tilt  No shadows  If far from ideal, a solar system on your roof may not be economical  Solar calculator at www.pvwatt.orgwww.pvwatt.org  Are repairs needed?  Roofing in excellent condition  Structure is sound

35. Step 3  Find minimum of 3 installers  NABCEP certified installers (North American Board of Certified Energy Practitioners)  http://www.nabcep.org/ http://www.nabcep.org/  List of NABCEP NC installers at site  Get a minimum of 3 quotes  Find minimum of 3 installers  NABCEP certified installers (North American Board of Certified Energy Practitioners)  http://www.nabcep.org/ http://www.nabcep.org/  List of NABCEP NC installers at site  Get a minimum of 3 quotes

36. Step 4  Do an energy audit of your house  You should do this anyway  $1 saves $4  Rebates, loans, and tax benefits are available for efficiency improvements  Get paid for saving energy  http://www.dsireusa.org http://www.dsireusa.org  Factor in projected energy savings when sizing solar system  Do an energy audit of your house  You should do this anyway  $1 saves $4  Rebates, loans, and tax benefits are available for efficiency improvements  Get paid for saving energy  http://www.dsireusa.org http://www.dsireusa.org  Factor in projected energy savings when sizing solar system

37. Step 5  Review quotes  $/W (cost divided by rated AC size)  How is payback time calculated?  Cost of loan included?  Tax credits counted?  REC?  What sell price to Duke is assumed?  How is output calculated?  Did they use the actual roof orientation(s) and slope(s)?  What equipment is specified?  Are you happy with the brands?  Check references (past customers)  Review quotes  $/W (cost divided by rated AC size)  How is payback time calculated?  Cost of loan included?  Tax credits counted?  REC?  What sell price to Duke is assumed?  How is output calculated?  Did they use the actual roof orientation(s) and slope(s)?  What equipment is specified?  Are you happy with the brands?  Check references (past customers)

38. Example Payback Cost and Income Constant dollars (no inflation) Your mileage may vary

39. Example Payback Assumptions 6/20/2010- Actual utillity expense is $194 per year. Actual insurance expense could range from a saving to $370 per year.

40. How Payback Period is Calculated Year’s balance (as a negative value) + Year’s income and credits - Year’s expenses = Next year’s balance Repeat Payback period is when balance is positive Year’s balance (as a negative value) + Year’s income and credits - Year’s expenses = Next year’s balance Repeat Payback period is when balance is positive

41. Example Payback Calculation

42. Summary  In North Carolina, you can make money by selling electricity to Duke  Other reasons for solar are environmental  Payback period can be less than 15 years while systems last 30 years  No batteries needed for grid-tied systems  Well designed solar can blend in with roof  Funding through home improvement loan  Also Federal loan program or manufacturer  Work through a licensed installer  Don’t forget energy efficiency improvements  In North Carolina, you can make money by selling electricity to Duke  Other reasons for solar are environmental  Payback period can be less than 15 years while systems last 30 years  No batteries needed for grid-tied systems  Well designed solar can blend in with roof  Funding through home improvement loan  Also Federal loan program or manufacturer  Work through a licensed installer  Don’t forget energy efficiency improvements

43. Thanks  Copies of slides available  Talk also posted at www.thesolardesignbook.com www.thesolardesignbook.com  Books for sale  Solar Basics (for beginners)  Solar Design (for system designers)  Copies of slides available  Talk also posted at www.thesolardesignbook.com www.thesolardesignbook.com  Books for sale  Solar Basics (for beginners)  Solar Design (for system designers)