Olympic Energy Systems, Inc.

Renewable Energy Consulting and System Development

907 – 19th StreetPort Townsend, WA 98368

(360) 301-5133www.olympicenergysystems.com

An Introduction to Solar Energy(PV Electric & Thermal)

May 2009

Early ADOPTERS Discerning OWNERS MAINSTREAMERS

1970’s 2001OES foundedApril 27, 2001

2009 2020 ?

Industry not yetstandardized;science and technology stilldeveloping

OES serves as anIndependentClient Advocateto achieve systemsthat are optimized for Cost & Performance

Industry reaches a levelof State Of The Artwith PROVENTechnologies

Solar Contractor- Assess- Specify- Procure- Install

High CostLess Optimum

Solar Developer- OES: Assess- OES: Specify- Contractor: Procure- Contractor: Install

Lower CostOptimized

Community ofContractors (all solar)- Assess- Specify- Procure- Install

Lowest CostSustainable

The old model: The updated model:The ultimate model:

Solar Energy Systems

The Company• Independent

– Represents no other company or manufacturer• Fee Based

– Facilitates working with ALL contractors– Choice in equipment sourcing & labor

• Process Oriented– More system options are assessed– Assures optimum economic return

Though solar energy equipment is Commercial Off The Shelf (ready to use or install, without further design or engineering), the variety of applications andimplications to the economy and environment calls for more rigor and analysisprovided by an independent, process-oriented Solar Developer – Engineer.

The Mission

Our MISSION STATEMENT

Implement sustainable energy systems through the application of basic science, engineering principles, and innovation, promoting involvement of local contractors,

technicians, and workers while enhancing understanding of global implications of our individual and mutual actions.

The Office

2006Earth DayPort Townsend

Think GlobalAct Local

2007Every DayPort Townsend

Think First

Solar Electric

Solar Thermal

Wind

Hydro

Small & Simple Solar

Off [the utility] Grid -Standalone / Backup

Energy Efficiency

Solar PV v. Thermal

• Economics differ between Solar Electric PV and Thermal Systems– Solar Electric (Photovoltaic)

• Typically 6 to 17% efficient (converting sunlight into electrical energy)

• System Payback is over 20 years– Solar Thermal

• Collectors can be 50 to 70% efficient (converting incident solar radiation into thermal energy)

• System Payback may be less than 10 years

Solar Thermal Systems

• Two primary approaches in the Pacific NW– Indirect (Closed Loop) with Glycol-Water as

the Heat Transfer Fluid (freeze protection)• Pressurized• Heat Exchanger

– Direct (Open Loop) DRAINBACK with Water as the Heat Transfer Fluid

• Potable Water pumped through Collector and Drains Back when not pumped

• Can be more efficient than Closed Loop• Collector is empty when not drawing heat (thus,

protection from freezing)

Flat Plate v. Evacuated Tubes

• Two primary thermal collectors available– Flat Plate Collector– Evacuated Tube

• On average, both collector types work well in the Pacific Northwest– FP Collectors have better tolerance to high

temperatures (because they are “lossy”)– Evacuated Tubes have less loss (due to no

convective loss in the vacuum), thus work well in cold or cloudy weather

Solar Thermal Concerns• OVERHEAT

– Fixed collectors mounted to optimize performance in the fall/winter/spring tend to produce too much heat in summer, thus, TOO MUCH ENERGY

• Creates a solar thermal energy storage problem• Controllers can dump heat to collectors at night

• OVERTEMP (or over pressure)– Instantaneous high temperatures may result in release

of Heat Transfer Fluid…TOO MUCH TEMPERATURE• MAINTENANCE of Glycol-Water Solution

– Propylene Glycol (USDA), when exposed to continued high temperatures, can break down, particularly into acid, which may eventually corrode the heat loop

Solar Domestic Hot Water

• Solar PREHEAT (before the main hot water heater) works the best in the Northwest– Storage tank heats the Cold Water Supply with

a solar heat exchanger– Captures as many solar BTUs as possible for

use over time (as DHW demand requires)– A larger Delta Temperature is maintained

across the Heat Exchanger, thus, a more efficient transfer of heat to storage

Solar Space Heat• Space Heat from Active (pumped) Solar

Thermal Systems in the Northwest is a special challenge – due to lack of direct sunlight in the winter (heating season). Combined DHW and Space Heat:

Solar Thermal PROJECT Pictures

Dual Flat Plate80 Gallon Preheat TankBainbridge Island, WA

More PROJECT Pictures

Dual Flat Plate (west)50 Gallon Preheat TankBremerton, WA

More PROJECT Pictures

30 Evacuated Tubes60 Gallon Preheat TankSequim, WA

More PROJECT Pictures

Single Flat Plate40 Gallon Preheat TankPort Angeles, WA

Solar Thermal – References

• Tom Lane’s “Solar Hot Water Systems –Lessons Learned”, 2004

• Greg Pahl’s “Natural Home Heating”, 2003• Home Power Magazine #123 (February

and March 2008) “Get Into Hot Water” –Solar Thermal Collector Guide

System Development

• Initial Consultation [No Charge]• Do Proceed• Preliminary Design• Go Ahead [Fee Prescribed]• Detail Design [OES coordinates project]• Procurement• Installation [By licensed contractors]• DeploymentSolar Client has the ultimate in flexibility and optimization when using a consultant

Solar Assessment

Solar Blockage 2008Port Townsend

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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61

Fall Equinox + Days - 1

Per

Cent

Series1

BLOCKAGE LOSS Calculation

Days Period

PSHD/Period

Open Time (Not Blocked by

trees, etc.) per Pathfinder Tool

% Insolation (in terms of

period’s total energy)

Total Weighted

PSHD

92 Dec/Jan/Nov 1 pm % 59 February/October 2.25 pm % 61 March/September 3.5 pm % 61 April/August 4.75 pm % 92 May/July/June 6 pm % 365 One Year 3.5 /1278 % Open

( % Blockage) % x 3.5 = PSHD

year basis PSHD = Peak Sun Hours per Day (“noon” equivalent sun) Total Weighted PSHD = Days * PSHD/Period * {% Insolation = (sum of the “open” ½ hour increments on the sun path line on the Pathfinder template)/100} Note: A 1000 Watt PV array, facing South at the Latitude Angle (48 deg), should produce 1278 KWh per year.

Economics

RCMFlow Chart

RCMIn MS Excel

OUTPUTS:

System Cost

Present Worth

Financial Incentives• 30% uncapped Federal Tax Credit

– Residential and Commercial• Incentive Payments = $0.18 or $0.36/KWh

– Through 2014 in Washington State– Paid by utilities in Net Metered Systems– On top of the retail cost avoidance (electricity)

• Sales Tax Exemption (WA State) thru 6/30/09• Green Tags ($0.03 or more per KWh)

– Available from NWSC or others– Contract basis (apply for)

System Costs• Solar Electric Grid-Tied Systems

– $7.25 to $7.50 per Watt, typical • Before incentives (such as a 30% federal tax credit)• Battery Backup systems cost more ($8 to $9 per Watt)

– OES achieved an installed price of $6.50 per Watt in 2008 on a 2.66 KW Grid-Tied PV System

• Solar Hot Water Systems– Installed Costs at $6,500 to $9,500

• Depending on size & integration factors– Sized for 2 to 4 or more person households

• Before incentives (such as a 30% federal tax credit)

Forms• Net Metering Agreement

– Between Owner & Utility

• Production Metering Agreement– Between Owner & Utility

• Buyers Retail State Tax Exemption– For solar energy systems > 200 Watts

• Department of Revenue Certification– Allows for production incentive payments

OES assists clientsin completing forms

Energy Network • Established Contracting Firms

– Licensed, Bonded, and Insured– Conduct system installations– Over time may opt to become a Solar Firm

• Contracts directly with the Solar Client– OES works upfront with the Client

• Site Assessment• Decision Analysis• System Specification

– OES coordinates the project• Contractors may approach OES for design

ContractorsA snapshot and growing list of solar-related firms on the O.P.

•Hanson Electric & Networks•Current Electric•Jarmuth Electric•Lang's 'Lectric•Cascade Electric•Extra Mile Tech & Electrical•Black Point Electric•West Sound Electric•Frederickson Electric•Greenspace Design & Landscaping Ltd•Alpha Builders Corporation•Sunrise Heating•Air-Flo Heating•H2O Plumbing Contractors•Precision Plumbing•NW Gas Supply & Plumbing•Shay's Plumbing•Bob Brown Plumbing

OES works with all of theseestablished contracting firms!

Olympic RE News• Published Quarterly since 2001 (and previously as Houston RE News• Feature Articles with other news, book reviews, project pictures, etc.

A Good Sign

TBD

Anthracite Coal from Pennsylvania(used in electricity generation)

OES Founder at Davis-BesseNuclear Generating Plant (Ohio)

Resume of Company FounderProfessional Experience Olympic Energy Systems, Inc. 2001-present Port Townsend, WA Consultant and Systems Engineer performing design and development of renewable energy and electric power systems, facilitated through roles as System Architect and Client Advocate and an emphasis on independence. Basic tasks include site assessment, system specification, parts procurement, and contractor coordination. The company developed the Olympic Energy Network, providing opportunities for contractors to participate in the solar energy industry through direct education, training, and experience. Systems developed to date include solar domestic hot water, thermal, off-grid and utility grid-tied solar electric and hydroelectric systems; residential, commercialand institutional. Founded the company in April 2001. ECON, Incorporated 1998-2001 Houston, TX Senior Systems Engineer performing analysis of acquisition and operations costs of space transportation systems, as part of the ongoing Space Transportation Architecture Study (STAS) with NASA. Utilize cost models to assist in determining development, production, and operations costs of proposed reusable launch vehicles. Analyze technology development programs for risk and cost. Provide cost and technical analysis support of the Space Shuttle Avionics Upgrades, also leading the development of risk management plans. The Boeing Company 1989-1997 Seattle, WA Systems Engineer in Electrical Systems performing duties as Equipment Manager in the development of the 777 Airplane; responsible for project planning, development of specifications, sub-contractor coordination, system integration, and certification of the ARINC Signal Gateway (ASG) System, the 2nd most integrated microprocessor-based system on the 777. Systems Engineer on the Command & Data Handling System of the International Space Station performing duties as hardware focal. Initiated and maintained a Hardware Problem Review Board and MDM (hardware) Integration Team. Scientific-Atlanta, Inc. 1987-1989 Atlanta, GA Graduate CO-OP Engineer PC-based circuit testing General Dynamics Corp. 1986-1987 Fort Worth, TX Systems Engineer Avionics testing [Secret s/c] New Departure Hyatt (GM) 1984-1985 Sandusky, OH CO-OP Engineer (now Delphi Energy & Chassis) Process engineering, Controls

Education Huron High School HS Diploma 1981 Huron, OH 44839 Case Western Reserve University BS Electrical Engineering w/Honors 1985 Cleveland, OH 44106 Georgia Institute of Technology MS Electrical Engineering 1989 Atlanta, GA 30332

Solar Washington 2001-present Seattle, WA Active member; Speaker at Annual Membership Meeting Re: Conservation TxSES 1999-2001 Austin, TX Board Member and VP (Texas Solar Energy Society) Organizer for RE Roundup (1st annual RE fair in Texas; Invited speaker 2000, 2001) HREG 1999-2001 Houston, TX Co-founder of TxSES chapter (Houston Renewable Energy Group) formed in 1999; membership grew from 10 to 125 by 2001 The Sierra Club 1998-present San Francisco, CA Committees: (Lone Star Chapter) Sprawl/Transportation (Evergreen Chapter) Sustainability Campaigns: Save the Katy Prairie Light Rail Houston Air Quality Solar Energy International 2000-2002 Carbondale, CO Solar, Wind, Hydro Workshops Northwest Energy Efficiency Alliance Portland, OR Member since 2001 Northwest Eco Building Guild Seattle, WA Member since 2002 Houston RE News 2000-2001 Houston, TX Editor (quarterly) Olympic RE News 2001-2008 Port Townsend, WA Editor (quarterly)

BACKGROUND (Jonathan A. Clemens)

• Engineering• Development• Environmental Activism