Solar Water Heating Regional Member Services Conference Savannah, Georgia March 2010

Solar Water HeatingSolar Water Heating

Regional Member Services Conference

Savannah, Georgia March 2010

A Solar TutorialA Solar Tutorial

Open Loop Systems

• An open loop system is open to the potable water, that is the potable water circulates through the solar panels to be warmed.

– Active

– Passive

Closed Loop Systems

• A closed loop system is closed to the potable water, that is the potable water does NOT circulate through the solar panels to be warmed. A separate loop transfers the heat from the collector to the storage tank.

– Active

Solar Water Heating Systems fall into 2 groups

• Flat Plate– “Thin plate”– “Thick plate”

• Integrated Collector Systems

• Vacuum or Evacuated Tube

Collector TypesCollector Types

Thin Plate CollectorsThin Plate Collectors

• Use with Open or Closed Loop Systems

– Slimmer roof profile– Less weight– Can protect from

freezing

Thick Plate CollectorsThick Plate Collectors

• Used with Open Loop Systems

– No moving parts– Low cost

– No freeze protection– Heavy

Vacuum or Evacuated TubesVacuum or Evacuated Tubes

• Used with Closed Loop Systems

– High temperature (exceeds DHW temps needed)

• Ideal for +180 degree F Temps – Industrial Applications

– High efficiency

– High cost– Highly fragile

How Solar Water Heating Works

How Solar Water Heating Works

Solar Energy: The Sun Begins To Shine.

The light rays hit the panels on the roof.

Solar Water Heating Panels: Panels begin to heat up which activates the Solar Loop Pump. Panels gain heat as the Sun intensifies.

Solar Water Heater with Wraparound Heat Exchanger: Water sits in the center of the tank. The heat Exchanger is wrapped around it.

Solar Loop Pump: The pump moves the heat transfer fluid through the Solar Loop

Solar Loop: Heat Transfer Fluid is 50%Glycol / 50% Water and circulates continuously through the Solar Loop gaining heat.

When the Sun isn’t Shining (Cloudy Days or at Night)

Solar Water Heating Panels: The panels cool off and deactivate the Solar Loop Pump

Solar Loop Pump: The pump shuts off

Solar Loop: The fluid stops circulating.

Solar Water Heater: The back up heater on the tank comes on. (electric shown)

The heat transfer fluid continuously flows through the system whenever the sun is shining. The copper pipes continue to heat up.

The heat transfers from the solar heat transfer

fluid to the water in the tank by heating the copper wrapped

around the tank.

This cycle continues as long as the sun is shining. But what happens when the Sun isn’t shining?

You ALWAYS have Hot Water! If the Sun is Shining it’s a “FREE Hot Water Day!”

Closed Loop: Freeze Protected System

Solar & the USASolar & the USA

So why doesn’t everyone have one?

So why doesn’t everyone have one?

• Upfront costs to homeowners– Economy is down, when SWH is needed the most!

– Financial mechanisms not in place

• No Tax liability to offset tax credit incentives– Layoffs, work hour reductions etc.

• May not be ideal candidate– No South facing roof plane, trees - shading

Incentive ProgramsIncentive Programs

• Help Homeowners afford the installation of energy efficient and renewable products, which in the end, help us all.– Insulation, heat pumps, CFL’s,

appliances, geo-thermal systems, photovoltaic panels, solar water heating systems, passive solar, solar space heating systems…

Federal Tax IncentivesFederal Tax Incentives

• 30% Tax Credit on Installed Solar Water Heating Systems– Systems must be SRCC 100 rated– Can carry credit over to 2016 tax year– Covers installation and components

State Tax IncentivesState Tax IncentivesState Type Incentive Amount (Applies to

Residential, unless noted otherwise)

Arkansas Rebate $30/sf < 320 sf of collectors or $15/sf > 320 sf of collectors

Delaware Rebate 50% to $3,000

Florida Rebate $500 Homes, $100 Pools

Georgia Tax Credit 35% Can carry over 5 years.

Kentucky Tax Credit 30% with $500 Limit. Can carry over 1 year.

Louisiana Tax Credit 50% Excess credit is refundable

North Carolina Tax Credit 35% with $3,500 Limit. Can carry over 5 years.

South Carolina Tax Credit 25% with $3,500 Limit or 50% of tax liability for that year. Can carry over 10 years

Tennessee Grant 40% Commercial/Industrial only up to $75,000 Limit

Virginia Rebate $1,000 per kW equivalent

Utility Rebate ProgramsUtility Rebate Programs

State Utility Amount of Rebate (Applies to Residential, unless noted otherwise)

Delaware Delaware Electric Cooperative 50% to $3,000

Florida Progress Energy, Gainesville Regional Utilities, City of Tallahassee

$450, $500, $450 respectively

Georgia Walton EMC, Cobb EMC, GreyStone Power, Jackson EMC

Up to $600, $450, $500, $450 respectively

North Carolina Blue Ridge EMC, Piedmont EMC, Progress Energy (Pilot), South River EMC

$500, $500, $1,000, $1,000 respectively

South Carolina Progress Energy (Pilot) $1,000

How the Incentives Work…How the Incentives Work…LA EXAMPLE:

$5,000 solar system(components and installation)

The State of Louisianagives a 50% Credit

($5,000 * .50 = $2500)Income is increased by $2500

The Federal Gov’t givesa 30% Credit

($5,000 * .30 = $1500)

The $2500 is taxed asincome (using 30% here)

reducing the savings by$750 leaving a

$3250 net savings on theSolar Water Heating

System.

Solar Water Heating System Final Cost:

$1750

LA EXAMPLE:$5,000 solar system

(components and installation)

The State of Louisianagives a 50% Credit

($5,000 * .50 = $2500)Income is increased by $2500


($5,000 * .30 = $1500)

The $2500 is taxed asincome (using 30% here)



System.


$1750

GA EXAMPLE: $5,000 solar system(components and installation)

The State of Georgiagives a 35% Credit

($5,000 * .35 = $1750) Income is increased by $1750


($5,000 * .30 = $1500) The $1750 is taxed asincome (using 30% here)



System.


$2275

GA EXAMPLE: $5,000 solar system(components and installation)

The State of Georgiagives a 35% Credit






System.


$2275

SC EXAMPLE:$5,000 solar system


The State of So. Carolina gives a 25% Credit






System.


$2625

SC EXAMPLE:$5,000 solar system


The State of So. Carolina gives a 25% Credit






System.


$2625

Homeowner - ROIHomeowner - ROISystem Type Closed Loop

Water Source City (Surface) Water

Roof Surface Asphalt ShinglesSolar design based upon a

location with characteristics ofAthens, Georgia

Case 2 ADULTS, 2 PRE TEENS

Importance of Utility SWH Programs

Importance of Utility SWH Programs

• Reduces homeowner’s upfront costs. • Reduces customer’s utility bills• Improves customer perception of

utility

Utility Benefits of SWH Program

Utility Benefits of SWH Program

• Reduces Customer Bills• Improved Customer Service• Manage Peak Loads (Demand-Side)• Diversifying Utility Resource Mix• Meeting or Anticipating Regulatory Requirements• Supporting Economic Development• Generating Valuable REC’s• Reducing Purchased Power Costs• Deferring or Optimizing Distribution Construction

Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

Types of Utility SWH Programs

Types of Utility SWH Programs

• Rebate Program• Utility Ownership• Vender Partnership

Utility Rebate ProgramUtility Rebate Program

Utility program rests on rebates paid to solar customers.

• Most common utility program model. • Relatively simple to implement • Typically incorporates utility market-

building activities, such as outreach, market segmentation , technical guidelines, etc…


Utility OwnershipUtility OwnershipThe utility provides turnkey SWH energy

services. • The best-known example is Lakeland Electric• Model is also being used by co-ops providing non-

solar equipment, such as the Colorado-based Delta-Montrose REC

geothermal program. • The utility can shape this model strategically to

target high-value customers and load management.

• The model generates revenues and savings to the utility.

• It offers customers SWH service with no upfront cost and strong reliability benefits.


Vendor PartnershipsVendor PartnershipsIn this business model the utility works with a

vendor, who provides turnkey SWH services.

• Similar to the ESCO model that is very popular for all kinds of energy services.

• It is also being tested by Lakeland. • It maximizes current tax incentives

- Vendor can benefit from the 30-percent solar investment tax credit and accelerated depreciation, so long as it owns the system (a valid lease for roof space may be required).

The utility benefits by outsourcing technology risks and by holding leverage with the vendor to meet utility needs, such

as integrating load management.

The utility may acquire RECs through negotiation with the vendor.Used with permission: “Assessing the Strategic Value of Solar Water Heating to Electric Utilities – J. Cliburn 2008

SWH Program FrameworkSWH Program Framework• Utility Situation Analysis• Assessment of SWH Local Technical Potential• Assessment of SWH Local Market Potential• Review of Technical Requirements for Systems

andInstallations

• Review of Incentives and Financing Options• Testing, Using Modeling and/or a Pilot Program

- Pilot or Model Data Assessment- Customer Economic Screening (C-

EST)- Utility Economic Screening (U-EST)

• Business Model Assessment and Selection- Rebate- Utility Ownership- Vendor-Partner

• Utility Program Design, including- Market Segmentation- Integrated Marketing Campaigns- Technical Guidelines- Administration and/or Vendor

• Management- Monitoring and Evaluation

• Utility Situation Analysis• Assessment of SWH Local Technical Potential• Assessment of SWH Local Market Potential• Review of Technical Requirements for Systems

andInstallations

• Review of Incentives and Financing Options• Testing, Using Modeling and/or a Pilot Program

- Pilot or Model Data Assessment- Customer Economic Screening (C-

EST)- Utility Economic Screening (U-EST)

• Business Model Assessment and Selection- Rebate- Utility Ownership- Vendor-Partner

• Utility Program Design, including- Market Segmentation- Integrated Marketing Campaigns- Technical Guidelines- Administration and/or Vendor

• Management- Monitoring and Evaluation


Questions?Questions?

Thank you for attending!

Sunny Regards –Power Partners Solar

Documents

Solar Water Heating Regional Member Services Conference Savannah, Georgia March 2010