in rea introducingsolarelectricity2009

04/11/23 Indiana Renewable Energy Association

http://www.indianarenew.org

1

Solar Electricity for Indiana

Adapted from:“Solar Electricity for

Illinois”With permission from

The Illinois Solar Energy Association

www.illinoissolar.org

April 11, 2023NWI Green Drinks



2

Indiana Renewable Energy Association

• Indiana Chapter of the American Solar Energy Society• Founded January 16, 2008 • Promoting environmental sustainability in Indiana through

the use of renewable energy• InREA is striving to:

* Raise public awareness about renewable energy through public education workshops like this one

* Work with government to promote legislation favorable to renewable energy

* Promote employment opportunities through green job creation

Visit us on the web:




3

Illinois Solar Energy Association

• Chapter of American Solar Energy Society• Is almost 40 years old, and is a 501(c)

(3)orgainzation• Has 500 members and 50 businesses and

orgainzations• The ISEA:

– We educate the public about solar, wind and other renewable energies in Illinois,

– We offer classes & workshops through membership, – We organize the Annual Illinois-wide Tour of Solar

Buildings– We furnish policy analysis to business and government,– And we publish the Heliographs newsletter.



4

Tonight’s presentation is an introduction to Solar Electricity, or

“Photovoltaics”• ISEA offers Solar 101, a half-day workshop.

To find out more visit their website: http://www.illinoissolar.org/

• To take one of their classes, you must join ISEA

• Membership is VERY REASONABLE!– Individual - $30– Family - $40– Seniors and Student - $20



5

Solar Electricity is Photovoltaic (PV) Energy and is not Solar Thermal

Energy

Solar Thermal is about capturing the heat from the sun

Photovoltaic Technology is about making electricity directly from the sun.



6

Some basics: Solar electrical energy is mostly from the Visible range of the solar spectrum

The Sun’s energy: about 51% is in Infrared about 46% is in Visible light about 3% is in UV radiation



7

More Basics: A quick definition for the glossary:

Primary Energy• Primary Energy is

energy contained in raw fuels such as coal, oil, gas, uranium, wood, or solar.

• Electricity is NOT a primary energy, as it is derived from Primary Energy resources.



8

Primary Fossil mix in the US Electric Grid (from the US EIA)

* 96% of Indiana’s electricity comes from

burning coal

*



9

Primary Fossil energy costs are rising rapidly

US EIA sources 2003 2004 2005 2006Natural Gas ResidentialPrice/MMBTU

$9.63 $10.75 $12.81 $13.75

Natural Gas Electric Utility Prices/ MMBTU

$5.57 $6.11 $8.45 $7.09

Bituminous Coal $/Ton $25.82 $27.30 $30.98 $31.70Uranium Hexafluoride/lb $10.81 $12.61 $10.40 $13.90



10Chart compliments of Indiana Utility Regulatory Commission.

Energy Prices are on the rise



11

So are residential electricity rates

ComEd’s rates:• December 31, 2006 = 8.3¢/kWh

• December 31, 2007 = 11.4¢/kWh• June 30, 2008 expected to be about 12.0¢/kWh

Residential rates up nationally 14% in last 5 years – Outlook? All rising, and no expectation of dropping in foreseeable future.



12

What’s Driving Energy Prices/Costs?

Supply/Demand

PoliticalFactors

Environmental

War, Terrorism, Sanctions, Price Fixing = most attention

Weather Patterns, “Natural” Disasters, Pollution = some coverage

Population, Economic Growth, Resource Depletion = little to

no attention or coverage



13

There is a global Paradigm shift underway in energy generation

Mining energy – petroleum, coal, natural gas, uranium

Harvesting energy – solar, wind, water, earth, biomass

Living off capital Living off interest



14

The Power of the Sun on Illinois

A quad is big! (= 1,000,000,000,000,000 BTU) About 100 Quad/Yr = total US energy useAbout 4 Quad/Yr = total ILLINOIS energy useAbout 0.000000025 Quad/yr = avg. IL home

use

(= 250,000,000 BTU/yr)Sources: U.S. Energy Information Agency National Renewable Energy Laboratory Oak Ridge National Laboratory

673 quads per year of solar energy per year

2,205 quads of coal in the ground

Almost as much solar energy falls on Illinois in 3-1/2 years as all demonstrated recoverable coal under it!



15

Illinois as a whole buys more energy from out of state than it exports

(this is true of Indiana also)

• Energy (2001)- $29.4 Billion (B)• Petroleum $12.7B• Electricity - $9.1 B

(including coal and nuclear fuel)

• Natural Gas $7.5 B• Non-electric coal, other

fuels $0.1B• $2,354 per capita,

up 23% from 1999 ($1,914)

• <70% leaves communities and state (Rocky Mountain Inst estimate on economic loss of non-renewable energy usage for communities www.rmi.org)

U.S. Energy Information Agency

ftp.eia.doe.gov/pub/state.prices/html/tcil.htm



16

Or a Better question: What can harvesting the Sun do for you?

What Can tapping the Sun do for Indiana?



17

But first: What does

Photovoltaic Power Look Like?



18

Merrillville Town Hall Roof Mounted 5 kW Photovoltaic

Array



19



20



21



22



23

Solar Power in Illinois

• More than 200 PV Installations in Illinois, totaling about 2,000 kW of capacity, about the equivalent of powering 400-500 homes with electricity

• Within 2 years, each of these figures are expected to double.



24

PV Works Well in Indiana

87

131

100

139131

159148

163 167

147

161

131

169

143

160

146 147

132

117

138

76

125

64

131

0

25

50

75

100

125

150

175

kilo

wa

tt-h

rs/m

on

th

J F M A M J J A S O N D

NW Indiana Miami, FL

A solar electric system will work about as well in Indiana as one in Miami, Florida, around 88%. A PV system in Indiana can out-produce a Miami system in the summer.

PVWATTS simulation – Natl Renewable Energy Lab, 1 kW AC, 30 degrees fixed angle due south



25

Building Integrated Photo-Voltaic



26

More BIPVThin film on standing seam in the UK

On r

aili

ngs

in D

enm

ark

Skylights in The Netherlands

New housing in Arizona



27



28

Large Utility Scale PV Arrays



29

More Large Utility Scale PV

Arrays



30

Concentrated Photovoltaics

CPV focuses the sun onto a PV cell to boost electrical output

So far, there is no application of CPV for residential installations



31

Economic Values of Solar ElectricityEnergy savings (return on investment and “payback”)

IncentivesIndiana $0 from state for residential systems, some grants for commercial, non profit, K-12. 30% Federal Tax Credit. Property tax exemption. NIPSCO FIT. Typical residential payback now under 10 years! Commercial systems now under 5!! (Illinois 30% State rebate plus Federal Tax Credit)

Capital asset(additional home value at re-sale is often close to initial investment)

Visit http://www.dsireusa.org/ to see incentives from other states then write your member of congress and ask why we don’t have any incentives in Indiana!



32

Other Values of Going Solar

Pride in Ownership(satisfaction in taking part in solutions!)

Greater Self Reliance/Resilience

(Lower energy bills/locked in rates. Less dependence on foreign energy sources increases national security)

Environmental Benefits(reducing carbon & mercury and other toxic emissions,

not generating as much radioactive waste)



33

Cost of Solar Electricity (caveat!: all values estimated)

Grid-Tied System

Now most common system in the United States

PV Hybrid

Partial battery backup

Off-GridFull battery bank,

perhaps a generator for backup

For a 2.5 kW(Half a typical home’s energy

use)

2.5 kW(1/2 typical

home)

4 kW to 7 kW(Typ. Home, but assumes making EE improvements)

$14,000 to $20,000(30% rebate excluded)(tax credit excluded)

$25k +(rebate?

batteries not included)

$35k +



34

Cost of Solar Electricity (caveat!: all values estimated)

Grid-Tied System

PV Hybrid

Fully Off-Grid

2.5 kW 2.5 kW 4 kW to 7 kWSavings in utility cost at CURRENT utility rates:

$350-400/yr $350-400/yr $800-$1,400/yrAnnualized Maintenance

$100/yramortized cost of inverter

replacement

$150 -$300/yr inverter

replacement & battery maintenance

$350 -$450/yr inverter replacement & battery

maintenance & replacement

Inverter warranties increasing/added value with extended warranties



35

Carbon Emissions & Pollution Reduction of Solar

Electricity

• 1,000 kWh (1 MWh) from PV avoids 1 ton CO2 (and other pollutants from fossil & mined fuels)

• A plug-in hybrid powered by the sun?



36

Incentives in Illinois

• State– 30% rebate up to $10,000– PV min 800 watts UL products– Thermal min 50,000 BTU SRCC– Max project size $50,000– Large solar thermal funding up to $400,000 per project– Small wind funding up to $25,000

• Federal– Residential - 30% tax credit– Business – 30% tax credit unlimited, carried forward <15 years,

against taxes owed only• MACRS 5 years against tax bracket (Modified Accelerated Cost Recovery System-~15% ?)

– Fed tax credit taken after state incentives– IRS rules not set yet

• Clean Energy Community Foundation– Funding small (1kW)school PV systems– Funding building integrated PV on “green buildings” $5/W <30kW– Community-scale wind systems – Public or not-for-profit sector only



37

Incentives in Indiana

• 30% FTC• Some utilities offer incentives (NIPSCO FIT)• $.30/kWh 5-10 kW residential systems• $.26/kWh >10 kW systems• Check http://www.dsireusa.org• Property tax exemption• Depreciation for business• Write your member of congress (PLEASE!)



38

Economics of PV

• Payback: Measures years before capital is recovered through savings. (PV has a long payback, but this is better than grid supplied energy, which has No payback at all!)

• Life Cycle: Needs to outlast payback period

• Cash Flow: Examines actual expense and savings or income.

• Asset Value: What is PV worth upon resale? • Net Metering: Quicker payback



39

Where might PV fit in as home improvement

value?Investmen

tPV Remodel Equivalent Cost vs. Value

$10,0001

kWMid-range bathroom

remodel90.1%

$20,0002

kWMid-range bathroom

addition86.4%

$30,0003

kWSunroom addition 70.8%

$40,0004

kWMajor kitchen remodel

mid-range79.4%

$50,0005

kWBasement remodel 70.8%

Cost Vs Value 2004 NAHB survey



40

Resale Value

Home Improvement

Net Investmen

t

Resale Value

% Return

Deck addition $6,300 $6,700 104%

4.3 kW PV system

$23,000* $22,000 95%

Bathroom remodel

$10,100 $9,100 89%

Window replacement

$9,600 $8,200 85%

Kitchen remodel $44,000 $33,000 75%Source: After California incentives Solar Today Magazine 5-6/2006 – info from Remodeling Online and NREL



41

Some Useful Websites

• www.ases.org American Solar Energy Society• www.in.gov/oed/index.htm Indiana Offices of Energy and Defense• www.midwestrenew.org Midwest Renewable Energy Association • www.chicagosolarpartnership.com• www.dsireusa.org Database of State Incentives Renewable Energy• www1.eere.doe.gov/solar US Dept of Energy solar programs• www.illinoiscleanenergy.org IL Clean Energy Foundation• www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/Energy/

IL Dept of Commerce & Economic Opportunity• www.nrel.gov National Renewable Energy Laboratory• www.nabcep.org/installer-locator Find certified installers locally • www.findsolar.com locating solar contractors• www.builditsolar.com A do-it-yourself resource center



42

Support renewable energy in IndianaVisit InREA on the web and

become a member.Individual and Business/Professional

memberships availablehttp://www.indianarenew.org



43

Visit us on the web, join ISEA and help us shine in

Illinois Illinois Solar Energy Association

www.illinoissolar.org800 W. EvergreenChicago, IL 6062

312-376-8245 (voice messages)

773-938-1931 (fax)



44

• Solar 101 is 9:30am to 12:30pm • Wind 101 is 1:30pm to 4:30pm• Check the website for dates and locations

For more, visit us on the web, and register for Solar 101 and/or Wind

101www.illinoissolar.org

The ISEA is the Best way to connect and plug-in to the renewable energy network of people and companies in Illinois and the Midwest!



45

First Saturday in October (Oct 1, 2011)

ASES.org

-X



46

Questions about PV?

• Tracy Hall: [email protected]• Kevin Moore:

[email protected] • Thanks for your interest in

Renewable Energy!