Solar PV 101: Building for the Green Economy

Josh MarderVP of Sales & MarketingEco Solar Solutions, Inc.

Presentation Topics

• What is solar PV?• Benefits of solar PV vs. fossil fuels• IL market vs. other parts of the country• Available grants and tax credits• Economic expectations for future growth• New tech developments in solar and storage• Finding jobs in the green economy

Solar PV Basics

• Solar PV = Solar Photo-Voltaic, or the production of electricity by exposing chemical substances (inside solar panels) to light

• Solar Thermal – panels transfer heat from sun to a fluid that runs through small pipes, which people use for heat or hot water

• Solar PV is the clear economic winner so far

Residential Solar PV Installation

Commercial Solar PV Installation

Industrial and Utility-Scale Solar PV

Total Project Costs

• Residential = $15,000 - $40,000

• Commercial = $100,000 - $1,000,000+

• Industrial = multi-million or billion $

Benefits of Solar PV vs. Fossil Fuels

• Fossil fuels are finite – 50 to 100 years• Global emissions need 40-70% redux by 2050• Solar has no carbon emissions• Sun is an abundant, renewable energy source• Distributed energy generation – solar energy

can be used wherever there is sunlight• Electronics provide online monitoring• Solar is now cost-competitive with fossil fuels

Illinois Market Comparison• Illinois ranks in the middle of the pack• Top 10 solar markets in 2013: CA, NC, AZ, NJ,

TX, MA, HI, NM, NV and NY• Up-and-coming: Minnesota and Georgia• Primary Variables: electricity rates + incentives

drive a project’s ROI and payback period• NO COMPREHENSIVE FEDERAL POLICY• State-by-state Renewable Portfolio Standards

(RPS) create policy inefficiencies

Available Tax Credits and Grants• Investment Tax Credit = 30% costs

*Expires in 2016• IL Residential Grant = 25% or $10,000 max• IL Commercial Grant = 25% or $20,000 max• IL Non-profit or Public Sector = 40% or $30K• IL Total Fund = $1.5 million per year• CA Total Fund = $2.167 billion over 10 years• States like CA have no-money-down solar

leasing programs for homeowners

Illinois Solar Schools Program

• Any Illinois school is eligible, public or private• Small 1 kW PV system w/ online monitoring• Perfect for K-12 science projects• School applies for a $7,000 grant• $1,000-$2,000 out-of-pocket expense• Great way to introduce students, faculty and

the community to renewable energy• Illinois Clean Energy Community Foundation

Economic Expectations: Growth

• John Naisbitt’s “Megatrends” concept that major trends start on the coasts (CA, NY) and move rapidly towards the Midwest

• Moore’s Law: transistor capacity doubles approx. every 2 years via exponential growth

• Ray Kurzweil, engineer and futurist, predicts a similar trajectory for solar PV market curve

• Richard Keiser, solar economics expert, predicts significant cost reductions in 5 years

1997-2013 Price Curve

• 1977 price per watt = $76.67

• 2013 price per watt = $0.74

Doubling Capacity

Economic Growth Continued…

• As the price of solar drops and electricity prices rise, the number of people that will be able to afford solar rises exponentially

• Keiser Report predicts a boom in distributed generation (rooftop solar) over utility projects

• This rapid expansion will result in local jobs for installers, designers, sales, accountants, etc.

• Utilities will fight to keep their 100+ year-old business models in place, this is expected!

Utilities Strike Back

• Some utilities invest in solar• Many others attempt to stop early growth

before it takes off• Net Metering provides credit for excess power

generated by solar customers• Net-metering battles currently in 22 states• Chess match between utilities and solar

Utilities Face Losing Battle

• Utilities fighting against solar are facing an uphill battle against technologic progress

• Solar has the potential to be a “disruptive technology” and change energy generation

• Annual 5% electricity cost increases are only hastening the shift towards renewables

Solar’s Competitive Advantages

• “Solar is cheap, clean, convenient and reliable…fossil fuel extraction costs will keep rising” –Investment Bank Sanford Bernstein

• Jobs: currently more people employed in solar than in mining coal in US; transitioning to clean energy will not result in job loss

• In 2012, solar added 14K new jobs, up 36% from 2010, and will add another 20K in 2014

• Fossil fuels industry cut 4,000 jobs last year

Price and Capacity Advantages

• Price: consistent drop in solar panel price over last 30 years; massive drop in last few years

• Since 2008, cost of coal has risen by 13%• Capacity: as solar prices drops, installations

are escalating at an exponential rate• Two-thirds of global solar capacity has been

installed over the last 2 years• 175 coal fired power plants expected to be

shut down over next 5 years in US

Investment Advantages

• Fossil fuels will eventually face a “carbon bubble” as nations seek to curb emissions

• New regulations will attempt to prevent carbon levels beyond 450 ppm, the accepted rate to avoid catastrophic climate change

• Stricter climate regulations will sharply devalue fossil fuel companies

• Coal Companies: 75% decrease in value in the past 5 years

Environmental Impacts of Coal• Pollution of rivers and streams• Acid rain, smog, respiratory illnesses and

cancers• Coal combustion waste is the second largest

contributor to landfills after solid waste• Mountaintop mining causes flooding,

destruction of ecosystems and communities• Annual emissions of 381,740,601 lbs of

toxic carbon dioxide, methane, sulfur dioxide, mercury, radioactive materials and particulates

• Enormous contributor to global climate change

Potential Disadvantages and Hurdles

• Intermittency: sun only shines during day• For 24-7 energy, solar needs battery storage,

which is a more expensive project• High land-use with long-term commitments• Property values for solar are just being

established causing resale uncertainty• Policy can be 5+ years behind trends

New Developments

• Solar Panel Efficiency: new high-efficiency panels will maximize roof space and capacity

• Sunshot program will streamline the permitting process

• Concentrated PV (CPV) uses mirrors to focus sunlight onto a small PV area

• Software, app and cloud computing solutions for mass-scalability

Battery Storage

• Key to unlocking true potential of solar lies in resolving the issue of storage

• Current batteries are too expensive, too heavy and bulky to be a long-term solution

• Battery technology development, especially in the US, has lagged considerably compared to other tech developments

Fuel Cell and Chemical Storage

• Fuel Cell: converts chemical energy (hydrogen) into electricity through a chemical reaction with oxygen; first invented in 1838

• Nathan Lewis, Prof. of Chemistry, California Institute of Technology, seeks to mimic the photosynthetic process to store energy

• High efficiency, low-cost storage has both on and off-grid implications and has the potential to drive further economic growth

Finding Jobs in the Green Economy

• Step 1: Figure out what drives you• Step 2: Research the industry • Step 3: Use the skills you already have• Step 4: Get involved locally• Step 5: Participate in online webinars• Step 6: Stay informed and keep reading! • Step 7: Consider environmental/sustainability

education degree

Environmental & Sustainability Education

• Community College: Wilbur Wright, Chicago

• Undergraduate: Illinois State University, Illinois Institute of Technology, U of I, UIC, Northern Illinois University, DePaul, Northwestern and University of Chicago

• Graduate: Illinois Institute of Technology (MS or MBA), Northwestern (MBA) or UIC (self-guided)

Contact Info

Josh MarderVP of Sales & MarketingEco Solar Solutions, Inc.

www.eco-solar-solutions.comjosh@eco-solar-solutions.com