Solar Energy Development

Creating a Sustainable Energy Economy

Presented to:VT Community Development Association –

March 14, 2007

End of an Era 100 years of exponential growth in fossil fuel use will soon be

ending due to environmental and economic constraints

Escalating Electric Rates

Northeast Residential Electric Rates

$0.1000

$0.1100

$0.1200

$0.1300

$0.1400

$0.1500

$0.1600

2002 2003 2004 2005

June of Calendar Year

$/K

ilow

att

CT

ME

MA

NH

NJ

NY

RI

VT

Source: U.S. Dept of Energy

Northeast utility electric rates are escalating rapidly due increased oil and natural gas prices.

The burning of fossil fuels IS having

a large impact on Vermont

Acid Rain

Mercury

Global Warming

The Solar Energy Resource

In a single one hour period, the sun sends enough energy to our planet to meet all of our energy needs for an entire year.100,000 kWh a year of solar energy falls on the average house roof in the Northeast.The availability and cost of delivering energy from the sun to our planet has remained amazingly constant for 4 billion years.

Solar Energy Development Clear Choice for Environment

& EconomyZero emissions/zero greenhouse gasesReduces fossil & nuclear fuel useSilentProduced domesticallyAccessible to allLowest life-cycle cost

Solar technology is affordable and cost-effective in Vermont,but there are significant market barriers to widespread adoption

Solar electric and thermal systemAnnual energy savings – 4,000 kWhWeybridge, VT

What is Holding Solar Energy Back?

Access to Information - poor“Solar doesn’t work in Vermont”

Access to Capital - limited95% of a system’s life-cycle cost is up front

Correct price signals – non-existent

Fossil & nuclear power is heavily subsidized

Education & Community Awareness

bring solar to our public places

University of Vermont 5 kW photovoltaic array

School Power…Naturally Program in NY

VT could be the leader in solar education

Students in NY schools can now learn firsthand the many uses of solar energy. VT could learn a lesson or two.Darrow SchoolNew Lebanon, NY

Access to capital is a major barrier

Some families have the capital to make a smart 30-year investment in solar.

Most don’t.

A state low-interest revolving loan fund could solve this.

Solar investments are very low risk

25-year panel warranty

No moving parts

Predictable output

Suitable for state investment funds

50 kW grid-intertie PV systemStonyfield Farm, Londonderry, NH

Get Price Signal Right

Expand Net MeteringSolar generation offsets “peak” expensive power

Incentives for solar investment are necessary

Initiate a long-term program that is sustainable and predictable that will ramp up in-state industry.

Bring life-cycle costing to investment decision

Government and private investment decisions need to be informed by life-cycle analysis.

Life-Cycle Analysis – An Example

Cost Item Electric LPG SolarCapital Cost $750 $750 $6,250*First year fuel cost $850 $860 $25025-yr fuel cost** $18,760 $18,980

$5,52025-yr maintenance** $550 $550

$1,500Total Life Cycle Cost $20,910 $21,140

$13,520

* includes $750 for back-up LPG hot water heater, less state incentives** present worth based on inflation at 4%, discount rate at 7%** prices based on January 2006 average cost for New England

Southern VT Recreation Center, Springfield VT130 kW thermal array saves $15,000 a year in fuel

Promote Large Scale Commercial Systems

•Economies of scale

•Educate businesses

•Develop market for in-state manufacturingThere are no commercial scale incentives now in VT

Possibility for VT Solar Manufacturing

Flat Plate CollectorsMounting systemsInvertersControlsData Acquisition

Thermodynamics LTDHalifax, NS

Quiz

What state has the highest per capita number of solar installers?In what state was the first New England solar collector manufacturer located?The first solar system installed on the White House came from which state?