Saving Big On Solar

Saving Big On SolarAN INTELLIGENT APPROACH

ROD

IPM

33%+

Savings Increase

Know HowRate Optimized Design (ROD) ensuresthat a planned PV system is properlysized in accordance with customer’selectricity demand, local electricitytariffs, and location.

Integrated Project Management (IPM)minimizes capital requirements for thePV system, particularly, by cutting thecost of Balance of System (BoS) or socalled “Soft Cost”.

Together these two result in morethan 33% total savings increasecompared to unoptimizedconventional “turn key” installations.

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Tariffs MatterCost of solar generated kWh is $0.10-$0.12, which is less than cost of on-peakAPS tariff ($0.22-$0.27)/kWh but morethan off-peak APS tariff $0.07 kWh.

Intraday period of solar generation differsfrom the APS on-peak Time Of Use (TOU),and APS allows to off-set the on-peakpower only by solar kWhs generatedduring the APS on-peak period.

Thus, optimization is to size-position a PVsystem so it would supply enough powerfor on-peak demand while keeping off-peak capacity at minimum (Area A = AreaB, Area C → 0 on the Chart).


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Net Metered PV System Design Optimization

Solar Power Consumed Power Net Power

A

BC

Off Peak On Peak

Rate Optimized Design

Rate Optimized Design (continued)COST OF ELECTRICITY DEPENDING ON TARIFF AND SYSTEM SIZE VARIES BY 53%

COST OF ELECTRICITY DEPENDING ON TARIFF AND SYSTEM SIZE VARIES BY 126%


$3.84$3.59

$3.20

$2.66 $2.51

32 kWh Daily Electricity CostsWinter 2014

$9.09

$6.74

$5.05$4.29 $4.02

51 kWh Daily Electricity CostsSummer 2014

Rate Optimized Design (continued)WINTER OPTIMAL ORIENTATION: SW

27% OF SYSTEM CAPACITY IS WORTHLESS

SUMMER OPTIMAL ORIENTATION: W

35% OF SYSTEM CAPACITY IS WORTHLESS


15.5

30.5 31.225.7

17.4

20.311.8

7.7

EAST SOUTH SOUTHWEST WEST

Solar kWhGenerated In A Winter Day

On-peak Solar kWh, save money Off-peak Solar kWh, do not save money

29.334.8

38.8 39.4

32.927.7 22.6 21.1

EAST SOUTH SOUTHWEST WEST

Solar kWhGenerated In A Summer Day

On-peak Solar kWh, save money Off-peak Solar kWh, do not save money

Maximum SavingsVs.

Highest ReturnA 9-10 kW dc rated system will providethe highest return on invested capital(ROI in 15 and 25 years, respectively).

A 13-16 kW dc rated system willprovide maximum savings (NPV in 15and 25 years, respectively).

Any additional money spent on thesystem rated over 13-16 kWdc will bewasted.

Practically, a 12 kW dc rated systemwould be the choice to satisfy more orless both NPV and ROI criteria.


Rate Optimized Design (continued)

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SYSTEM DC RATING, KW

Savings Vs System Rating

Savings in 15 years, discounted $ Savings in 25 years, discounted $

Economic Effect

In 25 years, an optimized PV systemwill ensure at least 33% more totalsavings from the system cost andelectricity bill than unoptimized one.

The difference is even greater forshorter terms.

Payout of the optimized system is 9years vs. 16 years for the unoptimizedone, which is a 44% improvement.

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$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

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Years

Discounted Cash Flow ProjectionsOptimized vs Unoptimized PV System

Net Present Value (NPV), $ Optimized System NPV, $

Unoptimized PV SystemDC Rating 16 kWTotal Cost $57300Cost per kWdc $3.60Cost of kWh $0.13

Optimized PV SystemDC Rating 12 kWTotal Cost $33500Cost per kWdc $2.79Cost of kWh $0.11

Total Savings Estimate

System Cost EffectThe cost of electricity generated by asolar PV system is the most significantfactor affecting system’s economicoutput. In turn, solar electricity costis determined by the cost of theinstalled system.

For instance, APS customers wouldneed a rate optimized design for anyPV system, cost of which is more than$1.7 per kWdc.

Systems installed for more than $3.5per kWdc are unlikely to beeconomical for APS customers.


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Cost of Installed Solar System, $/kWdc

Cost Of Solar Power vs Solar System Cost

6 kWdc 12 kWdc 18 kWdc

APS On-Peak Summer Rate

APS On-Peak Winter Rate

APS Flat Winter Rate

APS Flat Summer Rate

APS Off-Peak Rate

Rate Optimized Design (continued)

Integrated Project ManagementDESPITE 15% HIGHER COST OF HARDWARE AND INSTALLATION LABOR,

ADDIN’ SOLAR IPM SAVES APPX. 30% OF THE TOTAL SYSTEM COST IN BOTH CASES


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Median 2014 Price * Addin' Solar Price

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Cost Structure of a 5 kW System

Total Hardware Cost Customer acquisitionInstallation labor Permitting, inspection, intercon.Transaction cost Indirect corporate costProfit Supply chain cost

$4.47/kW *

$3.16/kW

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Cost Structure of a 12 kW System

Total Hardware Cost Customer acquisitionInstallation labor Permitting, inspection, intercon.Transaction cost Indirect corporate costProfit Supply chain cost

$4.00/kW *

$2.79/kW

* Adjusted for Arizona for 2014 NREL and Berkeley Lab data

Addin’ Solar LLC6424 E Greenway Pkwy Ste 100

Scottsdale AZ 85254Phone: 480-296-0223

Fax: 480-296-0225Email: [email protected]

www.addinsolar.com

mailto:[email protected]

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