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Solar 101
Presented by:
Massachusetts Clean Energy Center
August 20, 2014
 Introduction
 Solar PV Basics
 Solar PV Incentives and Economics
Outline
MassCEC Statutory Mandate
Advance Clean Energy Technology
Create Jobs
Develop a Trained Workforce
Accelerate Deployment of Clean Energy
4
Solar Photovoltaic (PV) Basics
2 – 6 per year
COAL 1,8
Uranium 1,9
900
Total reserve
90-300
Total
Petroleum 1,8
240
total
Natural Gas 1,8
215
total
WIND1,2
Waves1,3
0.2-2
25-70
per year
OTEC1,4
Biomass 1,5
3 -11 per year
HYDRO 1,6
3 – 4 per year
TIDES 1
Geothermal1,7
0.3 – 2 per year
0.3 per year
16
FINITE ENERGY
RESERVES
RENEWABLES
ANWR
© R. Perez et al.
World energy use
16 TW-yr
per year
~ 475 exajoules
~ 460 Quads
2 – 6 per yearWorld energy use
16 TW-yr
per year
COAL 1,8
Uranium 1,9
900
Total reserve
90-300
Total
Petroleum 1,8
240
total
Natural Gas 1,8
215
total
WIND1,2
Waves1,3
0.2-2
25-70
per year
OTEC1,4
Biomass 1,5
3 -11 per year
HYDRO 1,6
3 – 4 per year
TIDES 1
SOLAR10
23,000 per year
Geothermal1,7
0.3 – 2 per year
© R. Perez et al.
0.3 per year
ANWR
COAL 1,8
Uranium 1,9
Power from the Sun
 Every 88 minutes, enough sunlight reaches
the Earth’s surface to power the world for a
year
 Every 112 minutes, more sunlight reaches the
Earth’s surface than is stored in all the proven oil,
coal, and natural gas reserves in the world
Is There Enough Sun In MA?
9
2.00
3.00
8.00
13.00
18.00
23.00
28.00
33.00
38.00
HI
AK
NY
CT
VT
NH
NJ
CA
MA
ME
RI
MI
DE
WI
MD
PA
DC
US
NV
SC
OH
CO
FL
AL
IL
NM
MN
AZ
KS
GA
VA
TX
NC
IA
IN
MS
MO
TN
MT
SD
NE
UT
WV
WY
OR
OK
KY
AR
ND
ID
WA
LA
2012 Avg Residential Electricity Prices
(cents per kWh)
Massachusetts Residential Electricity Prices
Sources: EIA 2012 Data
MA homeowners had the 9th highest
average electricity prices in 2012.
MA
US
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
$/kWhPrice
Residential Electricity Rates
10
Residential Project Trends
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
0
500
1000
1500
2000
2500
3000
3500
InstalledCost($/watt)
NumberofProjects(15kW&smaller)Installed
2006
2013
13
What makes a good site?
http://energy.ltgovernors.com/solar-energy-pv-systems-self-generation-make-your-own-power.html
• Southern exposure
•PV panels angled 30˚ – 45˚
• At least 4-6 hours of direct
sunlight
• Open roof area of ~100 sq ft
per 1 kW
• Open space for a ground or
pole mounted system
How Does Solar a PV System Work?
 Grid-connected projects can apply for Net Metering (utility meter spins backwards)
 Power outage: Inverter shuts down, unless a battery-back up system is installed
15
Shading of Solar PV Systems
 Initial site feasibility can be
determined online through
aerial images
 A shading analysis should be
performed for each feasible
project site
 Solmetric SunEye
 Solar Pathfinder
16
Aerial photos
4.
1. 2. 3.
5.
17
What adds costs to an installation?
Structural
• Reinforce
Rafters
• Split Arrays/
Multi Roof
• Metal Roof
• Steep Roof
Electrical
• Service Change
• Supply Side Tap
Other
• Ground-
mounted System
• Data Acquisition
System
• Extended
Warranty
• Increased
shading
 Common Cost Adders
 Introduction
 Solar PV Basics
 Solar PV Incentives and Economics
Outline
High electricity prices + Reduced Solar PV Costs +
Numerous Incentives = Economical solar projects
Solar Incentives in Massachusetts
www.house-power.com/blog/wp-content/uploads/2009/12/iStock_000009001180XSmall.jpg
Incentives
Tax Incentives:
Federal (30%)
State (15% up to $1,000)
Rebates from MassCEC
Net Metering
SREC Sales
Low/No money down options
 Quarterly funding blocks
 $1.5 million available
 Residential, commercial, non-
profit & public solar PV
systems ≤ 15 kW
 Rebate capped at 5 kW
 Proposed rebate ranges from
$1,250 to $3,500 for 5kW
system
 Rebate covers ~5% of Installed
Cost
Commonwealth Solar II Rebate Program
Block 19 Rebate Levels ($ per watt (DC @ STC))
Base Incentive $0.25
PLUS:
Massachusetts Company Component Adder $0.05
Moderate Home Value Adder OR Moderate
Income Adder ≤ 120% of MA median income
(only residential projects eligible)
$0.40
Natural Disaster Relief Adder $1.00
Go to www.MassCEC.com/solar to learn more.
MassCEC Rebate Program (cont.)
County Property Value
Berkshire, Franklin, Hampden, and Hampshire ≤ $300,000
Bristol, Suffolk, Worcester ≤ $350,000
Barnstable, Duke, Essex, Middlesex, Nantucket,
Norfolk, and Plymouth
≤ $400,000
Income Category Income Levels
Individual Income ≤ $75,810*
Domestic Unit Income ≤ $95,420*
Moderate Home Value Adder Criteria
* 120% of median household income as determined by the US Census Bureau
Moderate Income Adder Criteria
 Experienced Installer
 Minimum Technical Requirements
 Equipment must meet certain standards
 Required warranties
− Panels have 20 year warranties
− Inverters have 10 year warranties
− 5 year workmanship warranty
 80% of optimal system production
MassCEC Rebate Program (cont.)
Solar Renewable Energy Certificates (SRECs)
Electricity Pathway
• Electrons from all
generation sources are
physically the same
• Cannot be tracked
independently on the
grid
SRECs Pathway
• SRECs represent the
“green” attributes of the
renewable generation source
• Utilities are required to
purchase SRECs every year
• 1 SREC = 1,000 kWh
• Verified SRECs ensure
that only one buyer can
claim each SREC
Electricity and SRECs can
be, and often are, sold
separately
24
SRECs (cont.)
 Will be able to sell SRECs for 10 years
 Likely sell from $285 - $199 per SREC
 Work with aggregator or broker to help with the sale
 Monthly production reported to MassCEC’s
Production Tracking System (PTS)
 SREC II Program began accepting new applications in
early May 2014
 Outright purchase
 Third party ownership
Ownership Models
Elizabeth Youngblood
Project Manager, Solar Programs
EYoungblood@MassCEC.com
Learn more at
www.MassCEC.com
Thank You! - Questions?

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Solar 101 - Franklin 8/20/14

  • 1. 1 Solar 101 Presented by: Massachusetts Clean Energy Center August 20, 2014
  • 2.  Introduction  Solar PV Basics  Solar PV Incentives and Economics Outline
  • 3. MassCEC Statutory Mandate Advance Clean Energy Technology Create Jobs Develop a Trained Workforce Accelerate Deployment of Clean Energy
  • 5. 2 – 6 per year COAL 1,8 Uranium 1,9 900 Total reserve 90-300 Total Petroleum 1,8 240 total Natural Gas 1,8 215 total WIND1,2 Waves1,3 0.2-2 25-70 per year OTEC1,4 Biomass 1,5 3 -11 per year HYDRO 1,6 3 – 4 per year TIDES 1 Geothermal1,7 0.3 – 2 per year 0.3 per year 16 FINITE ENERGY RESERVES RENEWABLES ANWR © R. Perez et al. World energy use 16 TW-yr per year ~ 475 exajoules ~ 460 Quads
  • 6. 2 – 6 per yearWorld energy use 16 TW-yr per year COAL 1,8 Uranium 1,9 900 Total reserve 90-300 Total Petroleum 1,8 240 total Natural Gas 1,8 215 total WIND1,2 Waves1,3 0.2-2 25-70 per year OTEC1,4 Biomass 1,5 3 -11 per year HYDRO 1,6 3 – 4 per year TIDES 1 SOLAR10 23,000 per year Geothermal1,7 0.3 – 2 per year © R. Perez et al. 0.3 per year ANWR COAL 1,8 Uranium 1,9
  • 7. Power from the Sun  Every 88 minutes, enough sunlight reaches the Earth’s surface to power the world for a year  Every 112 minutes, more sunlight reaches the Earth’s surface than is stored in all the proven oil, coal, and natural gas reserves in the world
  • 8. Is There Enough Sun In MA?
  • 9. 9 2.00 3.00 8.00 13.00 18.00 23.00 28.00 33.00 38.00 HI AK NY CT VT NH NJ CA MA ME RI MI DE WI MD PA DC US NV SC OH CO FL AL IL NM MN AZ KS GA VA TX NC IA IN MS MO TN MT SD NE UT WV WY OR OK KY AR ND ID WA LA 2012 Avg Residential Electricity Prices (cents per kWh) Massachusetts Residential Electricity Prices Sources: EIA 2012 Data MA homeowners had the 9th highest average electricity prices in 2012. MA US 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 0.2 $/kWhPrice Residential Electricity Rates
  • 11. 2006
  • 12. 2013
  • 13. 13 What makes a good site? http://energy.ltgovernors.com/solar-energy-pv-systems-self-generation-make-your-own-power.html • Southern exposure •PV panels angled 30˚ – 45˚ • At least 4-6 hours of direct sunlight • Open roof area of ~100 sq ft per 1 kW • Open space for a ground or pole mounted system
  • 14. How Does Solar a PV System Work?  Grid-connected projects can apply for Net Metering (utility meter spins backwards)  Power outage: Inverter shuts down, unless a battery-back up system is installed
  • 15. 15 Shading of Solar PV Systems  Initial site feasibility can be determined online through aerial images  A shading analysis should be performed for each feasible project site  Solmetric SunEye  Solar Pathfinder
  • 17. 17 What adds costs to an installation? Structural • Reinforce Rafters • Split Arrays/ Multi Roof • Metal Roof • Steep Roof Electrical • Service Change • Supply Side Tap Other • Ground- mounted System • Data Acquisition System • Extended Warranty • Increased shading  Common Cost Adders
  • 18.  Introduction  Solar PV Basics  Solar PV Incentives and Economics Outline
  • 19. High electricity prices + Reduced Solar PV Costs + Numerous Incentives = Economical solar projects Solar Incentives in Massachusetts www.house-power.com/blog/wp-content/uploads/2009/12/iStock_000009001180XSmall.jpg Incentives Tax Incentives: Federal (30%) State (15% up to $1,000) Rebates from MassCEC Net Metering SREC Sales Low/No money down options
  • 20.  Quarterly funding blocks  $1.5 million available  Residential, commercial, non- profit & public solar PV systems ≤ 15 kW  Rebate capped at 5 kW  Proposed rebate ranges from $1,250 to $3,500 for 5kW system  Rebate covers ~5% of Installed Cost Commonwealth Solar II Rebate Program Block 19 Rebate Levels ($ per watt (DC @ STC)) Base Incentive $0.25 PLUS: Massachusetts Company Component Adder $0.05 Moderate Home Value Adder OR Moderate Income Adder ≤ 120% of MA median income (only residential projects eligible) $0.40 Natural Disaster Relief Adder $1.00 Go to www.MassCEC.com/solar to learn more.
  • 21. MassCEC Rebate Program (cont.) County Property Value Berkshire, Franklin, Hampden, and Hampshire ≤ $300,000 Bristol, Suffolk, Worcester ≤ $350,000 Barnstable, Duke, Essex, Middlesex, Nantucket, Norfolk, and Plymouth ≤ $400,000 Income Category Income Levels Individual Income ≤ $75,810* Domestic Unit Income ≤ $95,420* Moderate Home Value Adder Criteria * 120% of median household income as determined by the US Census Bureau Moderate Income Adder Criteria
  • 22.  Experienced Installer  Minimum Technical Requirements  Equipment must meet certain standards  Required warranties − Panels have 20 year warranties − Inverters have 10 year warranties − 5 year workmanship warranty  80% of optimal system production MassCEC Rebate Program (cont.)
  • 23. Solar Renewable Energy Certificates (SRECs) Electricity Pathway • Electrons from all generation sources are physically the same • Cannot be tracked independently on the grid SRECs Pathway • SRECs represent the “green” attributes of the renewable generation source • Utilities are required to purchase SRECs every year • 1 SREC = 1,000 kWh • Verified SRECs ensure that only one buyer can claim each SREC Electricity and SRECs can be, and often are, sold separately
  • 24. 24 SRECs (cont.)  Will be able to sell SRECs for 10 years  Likely sell from $285 - $199 per SREC  Work with aggregator or broker to help with the sale  Monthly production reported to MassCEC’s Production Tracking System (PTS)  SREC II Program began accepting new applications in early May 2014
  • 25.  Outright purchase  Third party ownership Ownership Models
  • 26. Elizabeth Youngblood Project Manager, Solar Programs EYoungblood@MassCEC.com Learn more at www.MassCEC.com Thank You! - Questions?