1. It Don’t Mean a Thing
Without Good Marketing!!
Marketing Solar
for Agricultural Uses

2. MY AGENDA
 Survey of agricultural uses
 Economics – case studies
 Marketing solar in Minnesota
2

3. Energy Harvest Group
 Solar thermal for agriculture
 Distributed energy storage
 Urban Solar Farm for Peak Power
3

4.  Industrial process heat
 Agriculture
 Commercial hot water
 Domestic hot water
 Not space-heating !!
4

5. Monthly DHW Load 5

6. 6

7.  Stock watering
 Electric fencing
 Emergency power
 Electric grid support
7

8. The Two Sides of Solar
Reduces Produces
Demand Energy
8

9. Solar Thermal vs. PV comparison
Solar Thermal is
my first choice!
Solar Thermal
50 – 75% Efficient
Photovoltaics
17-23% Efficient

10. Reliability
 4.6 Megawatt AZ Solar Electric Plant
Online since 2002 Annual maintenance cost
Availability 99.72%  0.16% of installed cost
No onsite staff
Remotely monitored

11. 11

12. The Guts of a System

13. 13

14.  Intention  planning
 Structural engineering  first!!
 Keeping it in the budget
 Incentives & Financing tools
 Preparation for “Phase II”
 Streamline the GANTT chart
14

16. Solar Energy is variable  Primary
Fossil Fuel is stored  Backup
Solar Energy is our Paycheck
Fossil Fuel our Savings Account
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17. Stock Watering
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18. PV Tracker
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19. Wool-drying
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20. Bavarian Farmhouse
20

21. Utilize the Roof space !!
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22. Lumber Drying
BARN VENTILATION
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23. Residential SDHW & PV
23

26. Weekday Water Usage
Single Family Home
Apartment Building
H ot w ater usage
12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM
Time of Day 26

27. 8 each 4’ X 10’ collectors $18,000
and racks
Hardware & plumbing $ 3,000
2 each 120-gallon storage $ 2,500
tanks
Heating plant tie-in $ 3,000
Engineering & Labor $ 6,000
Total $32,500

28. Fossil Fuel
Solar Energy
Low front-end cost
High front-end cost 

Shorter life
 Long life of product 
Higher maintenance
 Low maintenance 
Consumes fuel
 No fuel costs ! 
Replacement cost!


29.  simple payback = Front-end cost
Yearly savings
 but consider:
energy price inflation

incentives

depreciation


30. Annual Cash Flow Model
Assumptions (Inputs)
Total Installed Cost ($): $32,500
Allocation to Business (%): 100 Year Net O&M Net Net Loan Annual Total
Annual Therms Saved: 800 Energy Costs Depreciat. Payments Cash Flow Cash Flow
Price/ therm ($) $1.0000 ($17,718) ($17,718)
0
Energy Inflation Rate (%): 7
Loan Down payment (%): 100 1 $800 $0 $2,383 $0 $3,183 ($14,535)
Down Payment ($): $32,500 2 $856 $0 $1,430 $0 $2,286 ($12,249)
Amount of Loan ($): $0 3 $916 $0 $858 $0 $1,774 ($10,475)
Interest Rate (%): 4 4 $980 ($250) $858 $0 $1,588 ($8,887)
Loan Term (Years): 5 5 $1,049 $0 $429 $0 $1,478 ($7,409)
Month Installed: 0 6 $1,122 $0 $0 $0 $1,122 ($6,287)
Net Federal Tax Rate (%): 30 7 $1,201 $0 $0 $0 $1,201 ($5,087)
Net State Tax Rate (%): 8 8 $1,285 ($270) $0 $0 $1,015 ($4,072)
O & M Cost ($/therm): $0.020 9 $1,375 $0 $0 $0 $1,375 ($2,698)
O & M Inflation Rate (%): 2 10 $1,471 $0 $0 $0 $1,471 ($1,227)
Utility Rebate (%): 10.00 11 $1,574 $0 $0 $0 $1,574 $347
State Tax Credit (%): 0 12 $1,684 ($1,300) $0 $0 $384 $731
Federal Tax Credit (%): 30 13 $1,802 $0 $0 $0 $1,802 $2,533
Basis for Depreciation $19,600 14 $1,928 $0 $0 $0 $1,928 $4,460
15 $2,063 $0 $0 $0 $2,063 $6,523

31. Financed Cash Flow
Assumptions (Inputs)
Total Installed Cost ($): $30,000
Net
100
Allocation to Business (%): Year Net O&M Net Loan Annual Total
Annual Therms Saved: Payme Cash Cash
850 Energy Cost Deprec. nts Flow Flow
Price/ therm: $1.0000 0 ($2,079) ($2,079)
7
Energy Inflation Rate (%):
25 1 $850 $0 $2,554 ($4,826) ($1,423) ($3,502)
Loan Downpayment (%):
$7,500 2 $910 $0 $1,532 ($4,826) ($2,385) ($5,886)
Down Payment:
$22,500 3 $973 $0 $919 ($4,826) ($2,934) ($8,820)
Amount of Loan:
4 4 $1,041 ($250) $919 ($4,826) ($3,116) ($11,936)
Interest Rate (%):
5 5 $1,114 $0 $460 $0 $1,574 ($10,362)
Loan Term (Years):
0 6 $1,192 $0 $0 $0 $1,192 ($9,170)
Month Installed:
30 7 $1,276 $0 $0 $0 $1,276 ($7,894)
Net Federal Tax Rate (%):
8 8 $1,365 ($270) $0 $0 $1,095 ($6,799)
Net State Tax Rate (%):
$0.020 9 $1,460 $0 $0 $0 $1,460 ($5,339)
O & M Cost ($/therm):
2 10 $1,563 $0 $0 $0 $1,563 ($3,776)
O & M Inflation Rate (%):
30.00 11 $1,672 $0 $0 $0 $1,672 ($2,104)
USDA & Utility Rebates (%):
0 12 $1,789 ($1,300) $0 $0 $489 ($1,615)
State Tax Credit (%):
30 13 $1,914 $0 $0 $0 $1,914 $300
Federal Tax Credit (%):
$21,000 14 $2,048 $0 $0 $0 $2,048 $2,348
Basis for Depreciation
15 $2,192 $0 $0 $0 $2,192 $4,540
31

32. Space Heat and SDHW

33. 33

34. 34

35. Solar Thermal – 1200 SF
26 4x10 panels $ 50,000
Contractor
Hardware & plumbing $ 3,000
450-gallon storage tank $ 2,000
DHW and Furnace tie-in $ 3,000
Admin & Engineering $ 4,000
Labor $10,000
Total $72,000

36. Large Commercial System

37. Commercial Grid Tie
200 each, 200 watt collectors $ 235,000
and racks and blocks
Hardware & wiring parts $ 25,000
Inverters $ 20,000
Crew & Electrician Labor $ 60,000
Engineering & crane $ 10,000
Total $ 350,000
37

38. Price of Solar Electricity
 Amortized Cost = Total cost
Total production
Over 25 years = $350,000
1,300,000 kwh
Raw Cost = 27¢ /kwh
Subsidized Cost = 13¢ /kwh

41.  Product or service
 Local manufacturing !!
 Market research
 Look for Opportunities
 Improve the economics
 Government support
 Utility support
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42.  Solar Skies MFG is the Midwest’s Leading
manufacturer of Solar Thermal Collectors
 Solar Skies is located in West Central MN in the town
of Starbuck.

43.  Farmers & ranchers
 Food industry
 Animal handlers
 Bankers
 HVAC contractors
 Electrical contractors
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44.  Build awareness
 RE on Schools
 Contractor training
 Minimize risk for banks
 Local expertise
 Build business models
 Create green jobs
 Local vs. International
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45. Contact Us At:
Minnesota Renewable Energy Society
2928 5th Avenue South
Minneapolis, MN 55408
Phone: (612) 308-4757
General Info E-mail: info@MNRenewables.org
Website: www.MNRenewables.org

46. Ralph Jacobson
ralphj@energyharvestgroup.com
46