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Marketing Solar for Agricultural Uses It Don’t Mean a Thing Without Good Marketing!!

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Page 1: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Marketing Solar for Agricultural Uses

It Don’t Mean a Thing Without Good Marketing!!

Page 2: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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MY AGENDA

Survey of agricultural uses

Economics – case studies

Marketing solar in Minnesota

Page 3: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Energy Harvest Group

Solar thermal for agriculture

Distributed energy storage

Urban Solar Farm for Peak Power

Page 4: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Industrial process heatAgricultureCommercial hot waterDomestic hot water

Not space-heating !!

Page 5: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

5Monthly DHW Load

Page 6: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Page 7: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Stock wateringElectric fencingEmergency powerElectric grid support

Page 8: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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The Two Sides of Solar

ReducesReducesDemandDemand

ProducesProducesEnergyEnergy

Page 9: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Solar Thermal vs. PV comparison

Solar Thermal

50 – 75% Efficient

Photovoltaics

17-23% Efficient

Solar Thermal is my first choice!

Page 10: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Reliability

4.6 Megawatt AZ Solar Electric Plant

Online since 2002Availability 99.72%No onsite staffRemotely monitored

Annual maintenance cost 0.16% of installed cost

Page 11: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Page 12: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

The Guts of a SystemThe Guts of a System

Page 13: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Page 14: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Intention planningStructural engineering first!!Keeping it in the budget Incentives & Financing toolsPreparation for “Phase II”

Streamline the GANTT chart

Page 15: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!
Page 16: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Solar Energy is variable

PrimaryFossil Fuel is stored

Backup

Solar Energy is our PaycheckFossil Fuel our Savings Account

Page 17: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Stock Watering

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Page 18: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

PV Tracker

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Page 19: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Wool-drying19

Page 20: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Bavarian Farmhouse20

Page 21: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Utilize the Roof space !!

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Page 22: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

BARN VENTILATION

Lumber Drying

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Page 23: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

23Residential SDHW & PV

Page 24: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!
Page 25: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!
Page 26: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Weekday Water Usage

12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AMTime of Day

Hot

wat

er u

sage

Single Family HomeApartment Building

Page 27: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

8 each 4’ X 10’ collectors and racks

$18,000

Hardware & plumbing $ 3,000

2 each 120-gallon storage tanks

$ 2,500

Heating plant tie-in $ 3,000

Engineering & Labor $ 6,000

Total $32,500

Page 28: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Solar Energy

High front-end cost

Long life of product

Low maintenance

No fuel costs !

Fossil Fuel

Low front-end cost

Shorter life

Higher maintenance

Consumes fuel

Replacement cost!

Page 29: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

simple payback = Front-end cost

Yearly savings

but consider:

energy price inflation

incentives

depreciation

Page 30: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Assumptions (Inputs) Annual Cash Flow ModelTotal Installed Cost ($): $32,500

Allocation to Business (%): 100 Year Net O&M Net Net Loan Annual Total

Annual Therms Saved: 800 Energy Costs Depreciat. Payments Cash Flow Cash FlowPrice/ therm ($) $1.0000 0 ($17,718) ($17,718)

Energy Inflation Rate (%): 7Loan Down payment (%): 100 1 $800 $0 $2,383 $0 $3,183 ($14,535)

Down Payment ($): $32,500 2 $856 $0 $1,430 $0 $2,286 ($12,249)Amount of Loan ($): $0 3 $916 $0 $858 $0 $1,774 ($10,475)

Interest Rate (%): 4 4 $980 ($250) $858 $0 $1,588 ($8,887)Loan Term (Years): 5 5 $1,049 $0 $429 $0 $1,478 ($7,409)

Month Installed: 0 6 $1,122 $0 $0 $0 $1,122 ($6,287)Net Federal Tax Rate (%): 30 7 $1,201 $0 $0 $0 $1,201 ($5,087)

Net State Tax Rate (%): 8 8 $1,285 ($270) $0 $0 $1,015 ($4,072)O & M Cost ($/therm): $0.020 9 $1,375 $0 $0 $0 $1,375 ($2,698)

O & M Inflation Rate (%): 2 10 $1,471 $0 $0 $0 $1,471 ($1,227)Utility Rebate (%): 10.00 11 $1,574 $0 $0 $0 $1,574 $347

State Tax Credit (%): 0 12 $1,684 ($1,300) $0 $0 $384 $731Federal Tax Credit (%): 30 13 $1,802 $0 $0 $0 $1,802 $2,533 Basis for Depreciation $19,600 14 $1,928 $0 $0 $0 $1,928 $4,460

15 $2,063 $0 $0 $0 $2,063 $6,523

Page 31: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Assumptions (Inputs) Financed Cash FlowTotal Installed Cost ($): $30,000

Allocation to Business (%): 100 Year Net O&M Net Net Loan Annual TotalAnnual Therms Saved: 850 Energy Cost Deprec. Payments Cash Flow Cash Flow

Price/ therm: $1.0000 0 ($2,079) ($2,079)Energy Inflation Rate (%): 7

Loan Downpayment (%): 25 1 $850 $0 $2,554 ($4,826) ($1,423) ($3,502)

Down Payment: $7,500 2 $910 $0 $1,532 ($4,826) ($2,385) ($5,886)

Amount of Loan: $22,500 3 $973 $0 $919 ($4,826) ($2,934) ($8,820)

Interest Rate (%): 4 4 $1,041 ($250) $919 ($4,826) ($3,116) ($11,936)

Loan Term (Years): 5 5 $1,114 $0 $460 $0 $1,574 ($10,362)

Month Installed: 0 6 $1,192 $0 $0 $0 $1,192 ($9,170)

Net Federal Tax Rate (%): 30 7 $1,276 $0 $0 $0 $1,276 ($7,894)

Net State Tax Rate (%): 8 8 $1,365 ($270) $0 $0 $1,095 ($6,799)

O & M Cost ($/therm): $0.020 9 $1,460 $0 $0 $0 $1,460 ($5,339)

O & M Inflation Rate (%): 2 10 $1,563 $0 $0 $0 $1,563 ($3,776)

USDA & Utility Rebates (%): 30.00 11 $1,672 $0 $0 $0 $1,672 ($2,104)

State Tax Credit (%): 0 12 $1,789 ($1,300) $0 $0 $489 ($1,615)

Federal Tax Credit (%): 30 13 $1,914 $0 $0 $0 $1,914 $300

Basis for Depreciation $21,000 14 $2,048 $0 $0 $0 $2,048 $2,348

15 $2,192 $0 $0 $0 $2,192 $4,540

Page 32: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Space Heat and SDHW

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Page 34: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Page 35: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

26 4x10 panelsContractor

$ 50,000

Hardware & plumbing $ 3,000

450-gallon storage tank $ 2,000

DHW and Furnace tie-in $ 3,000

Admin & Engineering $ 4,000

Labor $10,000

Total $72,000

Solar Thermal – 1200 SF

Page 36: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Large Commercial System

Page 37: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Commercial Grid Tie200 each, 200 watt collectors and racks and blocks

$ 235,000

Hardware & wiring parts $ 25,000

Inverters $ 20,000

Crew & Electrician Labor $ 60,000

Engineering & crane $ 10,000

Total $ 350,000

Page 38: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Price of Solar Electricity

Amortized Cost = Total cost

Total production

Over 25 years = $350,0001,300,000 kwh

Raw Cost = 27¢ /kwh

Subsidized Cost = 13¢ /kwh

Page 39: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!
Page 40: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!
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Product or service

Local manufacturing !!

Market researchLook for Opportunities Improve the economics

Government support

Utility support

Page 42: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Solar Skies MFG is the Midwest’s Leading manufacturer of Solar Thermal Collectors

Solar Skies is located in West Central MN in the town of Starbuck.

Page 43: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Farmers & ranchersFood industryAnimal handlersBankersHVAC contractorsElectrical contractors

Page 44: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

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Build awareness

RE on Schools

Contractor trainingMinimize risk for banksLocal expertiseBuild business modelsCreate green jobsLocal vs. International

Page 45: It Don’t Mean a Thing Without Good Marketing!! · Marketing Solar . for Agricultural Uses. It Don’t Mean a Thing Without Good Marketing!!

Contact Us At:Minnesota Renewable Energy Society2928 5th Avenue SouthMinneapolis, MN 55408

Phone: (612) 308-4757General Info E-mail: [email protected]: www.MNRenewables.org