Solar Energy Commercial Applications
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Solar Energy Commercial Applications Valerie Rauluk Venture Catalyst Inc. [email protected] Solar America Cities Briefing June 23, 2009 2 Agenda • Intro • Opportunity • Applications • Financing • How to start Venture Catalyst Inc. © 2009 3 Venture Catalyst Inc. • 30 years experience in business/ project design and development • 11 years experience in renewable energy commercialization & financing • 20 year presence in Arizona Venture Catalyst Inc. © 2009
Transcript of Solar Energy Commercial Applications
Solar Energy Commercial Applications
Valerie RaulukVenture Catalyst Inc. [email protected]
Solar America Cities Briefing
June 23, 2009
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Agenda
• Intro
• Opportunity
• Applications
• Financing
• How to start
Venture Catalyst Inc. © 2009
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Venture Catalyst Inc.
• 30 years experience in business/ project design and development
• 11 years experience in renewable energy commercialization & financing
• 20 year presence in Arizona
Venture Catalyst Inc. © 2009
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Opportunity• Solar energy supplies over 35% of
electricity and 69% of our energy needs by 2050 (3,500 GW), dominated by solar electric photovoltaic (“PV”) technologies. The Grand Solar Plan, Scientific American January 2008
• Solar energy development brings 12 jobs per MW (35 million +).
• Solar energy development increases energy security.
• Arizona is a key nexus for solar energy deployment and solar energy innovation and manufacturing.
Venture Catalyst Inc. © 2009
Benefits of Solar EnergySolar is a zero-emission energy sourceSolar is scalable and growing
•Growing globally at 41% per annum, 60% in U.S.Solar is competitive
•Nuclear, coal, natural gas power plant costs have increased significantly•Transmission/ distribution infrastructure has increased in costs and takes significantly longer
Solar is predictable•Distributed technologies can be built quickly, averting power crises more effectively•Solar is well correlated to air conditioning and lighting loads
Solar space is available•Each year over 2 billion square feet of new roofs are installed –supporting far more than 40 GW solar needed to meet 100% of incremental load growth in the US
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Deployment
• Technology Type– Solar Thermal– Solar Photovoltaic (“PV”)
• Development Format– Central Station
Large scale (20MW+), remote locations, connected to transmission infrastructure (higher voltage, longer distance)
– Distributed Generation (“DG”)Large (up to 20MW) to small scale connected to distribution network near customer load (lower voltage, shorter distances)
Venture Catalyst Inc. © 2009
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Capturing the sun’s heat or light
Venture Catalyst Inc. © 2009
Power Delivery
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Transmission
DistributionVenture Catalyst Inc. © 2009
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Solar Thermal Options for Utility-Scale Power
Venture Catalyst Inc. © 2009
Distributed Resources: Solar Thermal
48 Evacuated Tubes, for domestic hot water and radiant floor heat.
5 Flat plate thermal collectors, each 40,000 BTUs per day.
Concentrated SolarPower parabolic trough (Sopogy Sopanova 4.0, 60sf 934 kWh per year)
Distributed Resources: Solar Thermal– Solar Cooling
Absorption Chiller System http://www.treehugger.com/files/2006/06/solar_powered_a.php
Solar Electric (PV)
Photovoltaics (PV) Solar Electric: Kinds of TechnologyCrystalline
More energy produced / sq. ft.More $$$ per kWMore prevalentTime-tested
Types:Mono-crystalline siliconPoly-crystalline silicon
Thin filmLess energy produced / sq ft. Less $$$ per kWBetter performance in shading & heatFlexible and laminate forms
Types:Amorphous silicon (a-Si)Cadmium telluride (CdTe)Copper indium gallium diselenide (CIGS)
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Modules & Mounting Methods
Modules & Mounting Methods
Distributed Resources: Photovoltaic Ground Mounted
Pictures courtesy of SunEdison
Alamosa, CO 8.22MW
Rifle, CO 1MW
Alamosa under construction.
Patton State Hospital, CA (259kw)
Stockton, CA (250kw)sidewalk awning, parking shade canopy and roof top
Pictures courtesy of SunEdison
Distributed Resources: Photovoltaic Parking Shade Mounted
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Solar Photovoltaic Options for Utility-Scale Distributed Power
Staples Ontario, CA; Rialto, CA (560kW)ICU Medical (475kW)
Cal Food Distributor (1.2MWs)Sicor Laboratories (404kW)Seagull Lighting (2 facilities, 1MW)
Sure Save Storage (886kW)
19Alamosa, Colorado 8.2 MW SunEdison for Xcel Energy Distributed Generation
Large Scale Distributed Generation
Reducing Risk & Exposure to Fossil Fuels
• Electricity Price Drivers
• Solar Benefits
U.S. Commercial Electricity Prices: By Region
5.56.57.58.59.5
10.511.512.513.514.515.516.5
2000 2002 2004 2006 2008
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wh)
New England
Middle Atlantic
Pacific
West South Central
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East South Central
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West North Central
On average, prices have increased 4.76% each year for the last 8 years
Energy Demand Drives Costs
Demand drives energy production• Energy plants are dispatched by (lowest) variable costs Utility rate breakdown• Baseload rate• Peak rates
• driven by volatile variable costs• Demand charges
• determined by facility’s highest energy use To save energy $$$• Reduce peak demand from utility 0
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Peak Energy Prices: Volatile & Increasing
Cause EffectLower natural gas (NG) production Higher NG pricesLess new NG drilling Higher NG pricesOil prices increase Higher NG pricesHigher NG prices Utilities raise rates
Natural Gas Futures Prices
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Programs & Financing
• Federal Investment Tax Credits• State Investment Tax Credits
– Arizona State Tax Credit– State Sales Tax waiver
• Utility Incentive/ Rebate/ Loans• USDA Renewable Energy Grants & Loans
• Third Party Financing/ Private Investment Capital
• Utility rate-payer contribution
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Financing Details
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Federal Investment Tax Credits
• 30% of investment with carry forward and carryback
• No limits (change from prior legislation)
• Monetizing the tax credit: timing is everything
• Issues concerning what is eligible and treatment of utility incentive
• Consult your tax advisor
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State Incentives
• 10% Investment tax credit up to $25K max.
• No sales tax on equipment purchases.
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Utility Incentives
• Per watt if under 30 KW • Performance based, per kWh paid monthly/ quarterly over 20 years
• The Renewable Energy Credits are relinquished if incentives are taken.
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Renewable Energy Credits
• Definition in Arizona: 1 credit equals 1 kWh generated from a “allowable” renewable energy generator
• Value– Set by agreed upon matrix
• Selling/ Banking
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How to start
Project AssessmentRoof space or ground space (10 watts per sf, 1 MW per 6-10 acres)Roof capacity, safety factors for ground.Solar capture & shading/ obstructionsEnergy consumption and profile.Interconnection/ metersMatching generator capacity to loadAvoided cost review
Identify & Select designer/ developer/ project partner (including utility)
Financial Review (when financed)Viability of businessBusiness credit status.Financial statements
In conclusion…
• Significant opportunity
• Prudent Investment.
• Variety of applications depending on site, load and technology
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Thank you!
Contact:
Valerie Rauluk
Venture Catalyst [email protected]
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Emerging Storage Opportunities
• Technology improvements across all forms
• Compressed Air Energy Storage in Arizona salt caverns
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Arizona Salt Deposits
Resource for Compressed Air Energy Storage
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Compressed Air Energy Storage
