Solar for Homeowners 1: Getting Started with Solar

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1 Solar for Homeowners 1: Getting Started with Solar 1 July 25, 2013

2 California Center for Sustainable Energy Vision: To create a sustainable energy future. Mission: To foster public policies and provide programs, services, information, and forums that facilitate the adoption of clean, reliable, renewable, sustainable, and efficient energy technologies and practices. 2

3 CCSE Programs CCSE operates in three focus areas: Energy Efficiency, Renewable Energy, and Transportation.. California Solar Initiative Solar Water Heating Program Clean Vehicle Rebate Project Self-Generation Incentive Program (Wind, Batteries, Fuel Cells) Energy Upgrade California 3

4 CCSE Services Workshops and Events Tool Lending Technical Assistance Vendor Database 4

5 Upcoming Workshops August 3, am 1pm North Park Energy Efficient Home Tour August 5, pm 7:30pm Scripps Ranch Community Event Home Energy Upgrades August 8, :30am 7:30pm Solar for Homeowners 2 Be a Smart Solar Customer September 20-21, th Annual San Diego Solar Tour

6 CCSE Housekeeping Please sign in Turn off your cell phones Refreshments Recycle Restrooms down the hall Fill out your Evaluation Forms Tell people about CCSE! Presentation is available online at /csi-presentations 6

7 CCSE Disclaimer Workshops are provided as a public service with the understanding that the California Center for Sustainable Energy makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or suitability of the information. The California Center for Sustainable Energy does not endorse any particular product, manufacturer or service mentioned and does not represent that any goods or services are fit for any purpose or use. Along the same lines, this is an informational workshop designed for homeowners. If you are in the energy efficiency or solar market, please refrain from pitching your products or services in this workshop. 7

8 Agenda 1. Introduction to Solar Electricity 2. Overview of the California Solar Initiative 3. Getting Started with PV 4. System Sizing 5. Finding & Researching Contractors 6. Online Resources and Next Steps 8

9 Introduction to Solar Electricity: Photovoltaics (PV) 9

10 What is Solar Electricity? Photo-voltaic (PV) photo = light voltaic = produces voltage Photovoltaic (PV) systems convert light directly into electricity using semi-conductor technology. Sunlight strikes the PV cell and causes the electrons to flow, creating an electric current (photovoltaic effect) 10

11 Terminology DC: Direct Current (produced by solar panels) AC: Alternating Current (used in the home) Efficiency: Measure of how much of the sunlight is converted to electricity (%) Capacity: Total amount of power that a system produces Watt: Basic unit of power Kilowatt: A unit of electrical power equal to 1,000 watts (most common measurement) Kilowatt-Hour: Basic unit of energy. The use of 1,000 watts of electricity for one full hour (basic unit of electrical usage billing) 11

12 What s a Watt? 1 light bulb = 100 Watts (W) 10 light bulbs = 1,000 Watts (W) or 1 Kilowatt (kw) If you keep 10 light bulbs turned on for 1 hour: 1 kilowatt x 1 hour = 1 kilowatt-hour (kwh) Kilowatt is a measure of instantaneous power Kilowatt-hour is a measure of energy consumption (or production) 12

13 What s a Kilowatt-Hour? 100 DC Watt module 10 modules: 10 x 100 W = 1,000 W (1 kw) If the sun shines for 5 hours/day on average 1 kw x 5 hours = 5 kwh per day 5 kwh x 365 days = 1,825 kwh per year 13

14 How does Solar PV work? AC Disconnect Utility 14

15 First, we will discuss PV Panels. 15

16 PV Terminology Cell Module / Panel Array 16

17 What are the different types of PV modules? 17 Crystalline vs. Thin Film

18 Crystalline Silicon PV Products Rigid crystals Longest track record, over 50 years Most common, over 93% of the market Highest efficiencies: avg. 15%, up to 22% 100 sq. ft. = 1 kw of solar Extreme heat reduces performance Shade highly reduces performance 18

19 Traditional Crystalline PV Panels (checker pattern) 19

20 Home with PV (front view) PV located here 20

21 Same Home with PV (side view) 21

22 Crystalline PV Panels on flat roof with tilt kit 22

23 Crystalline PV on a Ground Mount tilted for performance 23

24 Thin Film PV Products Can be applied on many different materials Production growing at high rate Lower efficiencies: avg. 7%, up to 15% sq. ft. = 1 kw of solar High heat somewhat reduces performance Shading moderately reduces performance 24

25 Thin Film (Flush mounted) 25

26 Integrated Roofing Tiles Pros Visually appealing Replaces roofing material Lightweight Avoids having to drill through roof Cons Expensive (60% higher cost) Less efficient 26

27 Comparison Crystalline Residential Market Share: 93% Efficiency 15-22% Proven technology Most efficient sunlight conversion technology commercially available Most sensitive to heat Thin Film Residential Market Share: 7% Efficiency 7-15% Less expensive per sq. ft. however you need more Less sensitive to heat and shading 27

28 Next, we will discuss Inverters. 28

29 Inverter Now you must decide to go with a Central Inverter or Micro Inverters 29

30 Central Inverters One individual inverter per array. Benefits: Older technology Less expensive than micro inverters Central point of failure Disadvantage: Shading effects power output dramatically Cannot see the output at the panel level Does not allow for easy system size increases 30

31 Micro Inverters One individual inverter per panel. Benefits: More tolerant to shade Allows flexibility in design and for future additions Easier trouble-shooting Disadvantage: Newer technology Typically more expensive but becoming more competitive 31

32 PV System Maintenance? 32

33 What is Net Metering? Net metering is a method of banking excess electricity credits. Available to solar and wind generating customers that are interconnected to the utility grid. Benefits: Eliminates the need for batteries. Ensures a constant supply of electricity Reduces costs and maintenance. 33

34 How does Net Metering work? The utility grid is a two-way street: During the day, when electricity usage is typically low, electricity can be sent back to the grid by the customer (accruing credits) At night, when electricity usage is high and solar system does not produce, the credit that was accumulated throughout the day is used. 34

35 Consumption and Production 35

36 The California Solar Surplus Act AB 920 requires the utility to purchase over generation by net metered utility customers. Purchase price is $0.04/ kwh 36

37 Overview of the California Solar Initiative 37

38 What is the California Solar Initiative? The California Solar Initiative (CSI) is the solar rebate program in California for customers of the investor-owned utilities - Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric (administered by CCSE). $2.1 billion program for 10 years ( ) Financed through utility rate-payers Designed for residential (retrofits only),commercial, government and non-profit sectors Program set in place by Senate Bill 1 (2006) Overseen by the California Public Utilities Commission 38

39 California Solar Initiative Goals Create 1,940 MW of new solar facilities in PG&E, SCE and SDG&E territory by 2016 Lower energy costs for consumers Reduce reliance on fossil fuel power plants Create a sustainable energy future Helps to achieve the goal of Arnold Schwarzenegger s Million Solar Roofs Program to create 3,000 MW of solar electricity in California. 39

40 CSI Goals for the San Diego Region Residential General Market Goal: Install 59.5 MW of solar photovoltaic on single-family homes from Total of 15,000 x 4kW (average size) systems Achieved : 67.8 MW and 13,646 residential solar systems currently installed 40

41 CSI Program Status in SDG&E Territory Program Goals Confirmed Under Review Remaining Program Achievements Currently Forecasted PG&E Capacity (MW) Budget ($) Capacity (MW) Budget ($) Capacity (MW) Budget ($) Capacity (MW) Budget ($) Capacity (MW) Final Step Residential ,628, ,217, , , Portion of Final Step (MW) Non-Residential ,164, ,587, ,708, ,868, Total ,792, ,804, ,716, ,271, N/A N/A SCE Residential ,767, ,731, , ,444, Non-Residential ,225, ,702, ,682, ,840, CCSE CCSE Total ,992, ,434, ,273, ,284, N/A N/A Residential ,880, ,817, , , Residential ,880, ,817, , , Non-Residential ,144, ,362, , ,481, Total ,024, ,180, , ,538, N/A N/A TOTAL Residential ,275, ,766, , ,903, N/A N/A Non-Residential 1, ,463,535, ,345,653, ,691, ,190,804 1, N/A N/A Total 1, ,947,810,000 1, ,810,419, ,295, ,094,660 1, N/A N/A 41

42 San Diego Solar Map 42

43 CSI Residential Incentives 2 types of incentives: Expected Performance-Based Buy down (EPBB): One-time, up-front payment based on the expected performance of the solar system. EPBB is required for all projects less than 10 kw. Performance-Based Incentives (PBI): 5-year monthly payment based on the actual performance of the solar system. PBI is required for all projects larger than 30 kw. 43

44 CSI Residential Incentives Rebates are offered on a declining scale: the more solar installed, the lower the rebate. The current rebate is $0.20/watt (EPBB) for residential systems. 44

45 CSI Eligibility You are currently a customer of SDG&E, PG&E, or SCE Residential projects must be on a Domestic Rate (DR) schedule All major system components are new The system is installed on an existing permanent building New Construction can apply for the New Solar Homes Partnership At least 1 kw of solar is to be installed The system is sized so that it offsets part or all of the on-site load 45

46 Wait List We are currently accepting applications to be placed on the waitlist. Wait-listed projects are reviewed and funded as older projects are cancelled or withdrawn. A Petition to Modify was submitted in August, 2012, to merge Non-Residential funding with Residential funding, allowing for all the wait listed projects to be funded. Still waiting on final CPUC decision. To view the current waitlist and waitlist process, visit energycenter.org 46

47 5 Minute Break 47

48 What should you consider doing in your home before installing a solar PV system? 48

49 Things to Think About Before Going Solar Is your home energy efficient? Reduce before you produce. Does your home have feasible space for solar? What direction could your system face? Will shading pose a problem for your system? What are your HOA restrictions? (Civil code 714) What are your expectations for financing? Remember to add your system to your homeowners insurance. 49

50 REDUCE, THEN PRODUCE! Energy efficiency improvements reduce the amount of energy your home wastes. Make your home energy efficient before you go solar you may be able to get a smaller solar system! Energy efficiency improvements also bring quality-of-life benefits: Comfort: Adding insulation and sealing air leakage helps keep your home cool in summer and warm in winter. Health: Sealing leaky ducts helps keep dust and irritants out of your home. Safety: Ensuring your natural gas appliances are operating properly reduces risk of gas leaks or carbon monoxide. 50

51 SDG&E s Energy Audit Accessed through your account on the SDG&E website Pulls data directly from your account Analyzes the energy use at the home and makes recommendations to save energy 51

52 Energy Upgrade California Connects homeowners with contractors trained in energy efficiency Provides rebates of between $1,000 and $4,500 Insulation, air sealing and duct sealing High efficiency heating, cooling and/or water heating systems Cool roofs, high efficiency windows, etc. 3 steps to participate: /homeupgrade 52

53 Historical Energy Use System sizing is specific to each individual site Know your home and know your energy usage prior to contacting contractors. Having an understanding of your usage and the amount of offset you would like to achieve will prepare you for entering into negotiations with contractors. 53

54 Energy Waves On-line tool that records your monthly consumption in kwh. Click Registration -- you will need your SDGE account #, meter #, zip code, and address You will receive an with your password. Click Sign On on the webpage and enter your account number and password from the 54

55 Energy Waves 55

56 System Sizing How big should your system be? How much of your energy load do you want to offset? How much do you want to save? How much do you want to spend? 1. Rule of Thumb The basic approach to sizing your system 2. CCSE On-line Electric Rate Analyzer The in depth approach to sizing your system 56

57 1. Rule of Thumb a. Total your 12 month electricity consumption (kwh) b. Divide the annual kwh by 1700kWh (average annual production of 1kW in San Diego). This will give you the number of kw that would offset your energy use Example: 7,000kWh / 1,700kWh = 4.1 kw PV System **Remember: this will offset 100% of your annual energy use** 57

58 CCSE s Electric Rate Analyzer /analyzer Allows you to understand your current electric usage and rates and project how energy savings and solar power can lower your energy costs. 58

59 SDG&E Utility Rates Tiered Pricing System 4 progressively more expensive tiers Tier 1 is the lowest rate called the baseline Tiers 2, 3 & 4 are a percentage of your baseline Residential Electric Rate Tiers Total Standard Electric Rates per kwh Summer Winter Baseline Tier % to 130% of baseline Tier % to 200% of baseline Tier Above 200% of baseline Tier

60 Where can you find local solar contractors? 60 We can help!

61 Find a Contractor 1. Find solar contractors at: Contact a minimum of 3 contractors and ask for quotes 3. One of the following active licenses is required: A General Engineering Contractor B General Building Contractor C10 Electrical Contractor C46 Solar Contractor 61

62 Find a Solar Contractor 62

63 Find a Solar Contractor 63

64 Find a Solar Contractor 64

65 Find a Solar Contractor The advanced search allows you specify the parameters of the projects you would like to view (i.e. Program Administrator, Sector etc.) 65

66 Where can you research solar contractors? Researching solar contractors at: Remember to ask for references!

67 Contractors State License Board 67

68 Contractors State License Board 68

69 Contractors State License Board CONTRACTOR A 123 Main St. San Diego, CA Business Phone number: (619)

70 Contractors State License Board CONTRACTOR B 321 Main St San CONTRACTOR Diego, CA B Business 321 Main Phone St. number: (619) San Diego, CA Business Phone number: (619)

71 Contractors State License Board CONTRACTOR B Contractor B AB /25/2011 A

72 Better Business Bureau Does your contractor have any complaints against them? 72

73 How Much Does Solar PV Cost? 73

74 Historical Cost of Solar PV ( ) Average installed cost of solar PV has decreased 48% from 1998 to 2010 Source: Galen Barbose, et al., Tracking the Sun IV, Lawrence Berkeley National Laboratory, 13 (Sept. 2011) 74

75 Average Cost of Residential PV System: $4 - $7 / Watt (AC) 75 Visit californiasolarstatistics.com for further cost information

76 Purchased System Example 5100 kwh/year 5100kWh/1700kWh 3kW System System Cost 3,000W x $5.50/Watt $15,000 Rebate Amount 3,000 x $0.20/Watt $600 Federal Tax Credit 30% x ($15,000 $600) $4,320 Total after Incentive and Tax Credit $10,080 That s a savings of 33%! 76 Possibility of payback within 6-9 years

77 Solar Adds Value to Your Home Studies have shown that on average in California, homes with PV sold for an additional $5.50/Watt-DC of solar installed. Ex: 3 kw DC Solar System 3 kw = 4000 W 3000 W x $5.50 = $16, Source: B. Hoen et al., An Analysis of the Effects of Residential Photovoltaic Energy Systems on Home Sales Prices in California, Lawrence Berkeley National Laboratory, 13 (Apr. 2011)

78 Financing Options Lease Fixed $ per Month Power Purchase Agreement (PPA) Fixed $ per kwh produced by system Home Equity Loan Bank loan secured with equity in home (if available) San Diego Metropolitan Credit Union Energy Efficient and Solar Loans 78

79 Online Resources energycenter.org CCSE Website energycenter.org/csi-presentations - CSI Presentations energycenter.org/analyzer Electrical Rate Analyzer energycenter.org/csi-webinars- CSI Online Trainings csi-trigger.com - CSI Statewide Trigger Point Tracker CPUC and CEC Website CSI Program Data Contractor State License Board Better Business Bureau energywave.sdge.com SDG&E Data 80

80 Now you know! General knowledge about solar technology & equipment About the CSI program How to size your PV system Where to find and research contractors 81

81 Next Steps to Take Review the Residential Solar Install Guide: Complete SDG&E Energy Efficiency Audit Run Energy Waves report Use the Electric Rate Analyzer Find & research local contractors Get quotes from a minimum of 3 contractors Come to Solar for Homeowners 2! 82

82 Upcoming Workshops August 3, am 1pm North Park Energy Efficient Home Tour August 5, pm 7:30pm Scripps Ranch Community Event Home Energy Upgrades August 8, :30am 7:30pm Solar for Homeowners 2 Be a Smart Solar Customer September 20-21, th Annual San Diego Solar Tour

83 CCSE CSI Contact Information California Center for Sustainable Energy (CCSE) 9325 Sky Park Court, Suite 100 San Diego, CA /csi-presentations 84