From Keeping Current - CCEnergy's newsletter, Summer 2002 Edition

Energy self-reliance begins at home

by Peter Asmus

Contents:
Dropping costs, growth cycle market | Solar PV: A quick primer | Solar PV facts
Wind vs. solar | Rules of thumb for wind | A few helpful tips | CEC buydown eligibility

Small-scale renewable energy technologies, such as solar photovoltaics (PV) and small wind turbines, have been around for many years. Typically, these distributed generation systems were installed by rural self-reliance buffs who lived off the grid. Many of these individuals learned how to drastically reduce electricity consumption since the cost of power from these technologies was extremely high. The less power they needed, the less they would have to produce for themselves.

Among those disconnected from the grid is Dale Glaser, a retired teacher who has installed both a solar and small wind turbine to provide his electricity. He could care less about the energy crunch that has made headlines in California. "I knew what is happening was coming," Glaser comments smugly. "It's about taking responsibility. You become the power plant."

Approximately 8,000 families in California are currently living off the grid, representing roughly 17 percent of the nation's total population of grid-free homes, according to Richard Perez, founder of Home Power magazine. Humboldt and Mendocino counties feature the majority of California's off-the-grid solar PV pioneers. (There is also a minority reliant upon small wind turbines.)

Dropping costs, growth cycle market

Global sales of solar PV systems have climbed steadily over recent years, growing 44 percent in 2000 and 39.7 percent in 2001, according to PHOTON International. World wide total installed solar PV capacity is now estimated at 401.4 MW. Last year, for the first time, European firms produced more solar PV panels than US firms (24.6 percent versus 23.6 percent). Japan remains the global leader with 43 percent of the global solar PV market.

The prices of solar PV cells continue to fall, costing just 20 percent of what they did 25 years ago. Rooftop systems that can generate roughly half of a home's electricity over a 20-year period or longer can cost as little as $10,000 factoring in rebates, tax credits, and other financial incentives offered by state and federal government.

In California, with the advent of electricity deregulation and the corresponding launch of the California Energy Commission's (CEC) Emerging Renewable Energy Buydown Rebate program, more and more Californians are installing the latest generation of small-scale renewable energy systems. The convergence of spiraling wholesale power prices, concerns over electrical reliability, and the dramatic drops in the cost of solar PV and small wind turbines, have resulted in a record number of grid-connected system installations, as evidenced by these latest statistics from the CEC:

• Buydown rebate applications for solar and wind systems averaged roughly 250 per month in 2001.


• Since the buydown program began in March 1998, the CEC received 5,417 reservation applications as of March 31, 2002. More than 80% of these have been received since January 2001.


• CEC buydown payments for that same time period totaled $30.4 million for 2,342 completed systems. In comparison, the CEC had paid out $3.46 million for 239 completed systems as of December 31, 1999.


• Installations financed with CEC buydown funds include 2,222 PV systems, 118 wind systems, and two fuel cell systems, for a total of 8.2 MW of capacity.


• Another 1,099 systems (representing 9.7 MW of capacity) have been approved more recently and are currently in various stages of construction.

"Our phones are ringing off the hook," remarks Ed Eaton, an instructor with Solar Energy International, earlier this year. "People are losing faith and trust in their utility companies."

Solar PV: A quick primer

Solar photovoltaic cells are small, square shaped panel semi-conductors manufactured in thin film layers from silicon and other conductive materials. When sunlight strikes the PV cell, chemical reactions release electrons, generating electric current. The small current from individual PV cells, which are installed in modules, power individual homes and businesses or can be plugged into the bulk electricity grid.

A variety of solar PV products are currently on the market, most of which rely upon silicon, a material that constitutes more than 25 percent of the earth's crust. Silicon is used in more than 90 percent of the three main types of solar PV technologies: single-crystal silicon; polycrystalline silicon, and thin-film amorphous silicon PV, the latter technology being the newest and cheapest. Although thin-film amorphous PV modules require less semiconductor material and are less expensive to manufacture, they also have lower conversion efficiency rates. Conversion of solar energy to electricity ranges from 5 to 16 percent.

Solar PV has come a long way since its early origins in the space program powering satellites and other extraterrestrial vehicles more than four decades ago. The technology has come down to earth and is now the first power supply choice for much of the developing world, where two billion people have yet to connect to electricity grids.

While it was once thought that Africa, Asia, and South America represented the primary potential market for solar PV off-grid applications, the market for solar PV systems tied into the grid is potentially 1,000 times greater, according to BP Solar, one of the largest manufacturers of solar PV panels.

Solar PV generates reliable electricity when it is most needed: during summer peaks in demand when consumers crank up their air conditioners. Statistics compiled by the federal Department of Energy's National Renewable Energy Laboratory underscore the benefit of installing solar PV. Seven major outages ­ including one impacting San Francisco last June ­ were analyzed from the perspective of the quality of the solar resource during the exact times of power blackouts. Not surprisingly, in all but one of the outages, conditions for optimal solar electricity generation were above 90 percent.

This makes inherent sense. Sunny days typically lead to heat waves that stress our electricity delivery infrastructure. Why not rely on the same sun that helped create the crisis to solve the power supply problem? Interestingly, solar conditions were close to perfect (99 percent) for generating electricity from the sun on June 14, 2000, the day 100,000 customers in San Francisco lost power.

Solar PV facts to consider

Four different emerging renewable technologies ­ solar photovoltaic (PV), small wind turbines, fuel cells that rely upon non-fossil fuels, and solar thermal electric systems ­ are eligible for buydown rebates from the CEC. These rebates of $4.50 per watt (or $4,500 per kilowatt) can cover about half of the installation costs of these clean technologies that represent the long-term future of the electricity industry. The vast majority of applications for buydown funds, however, have been for solar PV and small wind turbine systems from residential customers.

If you are interested in solar PV panels, consider the following:

• As a starter, check with CCEnergy to determine whether your location is in an area with enough solar radiation to justify an investment in solar PV modules. Some counties have this information available from wind and solar surveys to aid in site selection.


• Even if you do live in an area where there is enough sun, you also need adequate unobstructed roof area that faces south or west. (A pole-mounted installation on a sunny spot of your property might also work.)


• Typically it doesn't make sense for a homeowner to buy a solar PV system that generates more electricity than they would otherwise use per year without a solar system because utilities are not obligated to buy the excess electricity you generate.

Wind turbine vs. solar PV

Trying to decide between small wind turbines and solar PV? You might want to investigate installing both. "Wind should be considered a complement to photovoltaics," according to Andy Kruse, vice president for Southwest Windpower, which specializes in tiny, ultra-light weight off-grid models. "The most reliable systems are hybrid energy systems consisting of PV and wind." In response to CEC buydown incentives, Southwest WindPower is now offering 1 and 3 kW grid-connected systems, which can reduce electricity bills by 20 and 60 percent respectively. "You name the customer type, we have a product for them," Kruse continues. "The Air Marine is sold to the sailboat market. Generally speaking, these folks are rich, retired people taking the cruise of their life. Most of our oil company customers use The Air on offshore platforms. NASA also uses the same model in the AArcticand many governments also use them for monitoring stations." Some of the most exciting potential applications are large, rural electrification projects for the World Bank, he added. "Of course, environ-mentalists and self-reliance buffs also buy our products."

In addition to CEC buydown rebates, which will be available over the next 10 years for residential customers, a state law passed in 2000 also greatly increases the value of all small wind turbine systems. AB 918, effective as of January 2001, includes a "time-of-use" provision. Anyone who sells their wind power to the grid during time of peak power pricing receive credits that reflect those peak power prices sold to consumers at that same point in time.

The types of loans available for financing new wind systems also make a big difference economically. "People who use home equity loans to finance the system can also deduct the interest, which makes financing very affordable. In some cases, the payments may even be less than the utility bill savings right from the start," notes David Salliotte of Tehachapi-based Specialized Turbine Services.

While hybrid PV/wind systems connected to the grid can collect buydown funds for both solar and wind components, hybrid systems plugged into off-grid battery storage systems are not. Nevertheless, Kruse points out that off-grid applications could still be cost effective without the aid of public subsidies.

Rules of thumb to consider for small wind turbines

You may have a good wind turbine site when:

• The average wind speed at the site exceeds 9 mph.
• The site is at least as large as an acre.
• City or county or homeowner association does not restrict tower heights.
• Your present electricity cost is 11 cents per kilowatt-hour or higher.
• The wind blows, at least in part, during your peak periods of consumption.

A few helpful tips

Some small wind turbine owners, such as Dan Whitehead, are so enthusiastic about wind power that he advocates wind turbine owners perform their own maintenance. Most do not, of course. Even if you hire help, Whitehead's advice is still quite sound: "Listen to your machine every day. Get used to the way it sounds in all types of wind conditions. If it makes a new sound, you will immediately be aware of it and be able to spot small problems before they become big expensive ones." The most important thing to remember, however, is to shut down the wind turbine during a thunderstorm, since lightening can destroy your clean energy investment if the machine is operating and connected to the grid.

Winter snow, insect build-up in the summer, and blasting sand in deserts, can all reduce power production levels tremendously. So keep your wind turbine clean!

Buydown rebate eligibility

There are several issues to consider before applying for the California Energy Commission's Emerging Renewable Buydown Funds. Funding for the CEC buydown program is collected from ratepayers of investor-owned utilities including:

• PG&E - Pacific Gas & Electric
• SCE - Southern California Edison
• SDG&E - San Diego Gas & Electric
• BVE - Bear Valley Electric

Only residents operting within the service territories of the utilities listed above are eligible for CEC buydown funds.

Residents served by their own municipal utilities are not eligible for CEC buydown funds. However, serveral such municipal utilities have their own programs to reduce the costs of solar photovoltaic (PV) systems. See chart below:

For the CEC buydown rebate, the four eligible renewable energy technologies - solar PV, small wind turbines, fuel cells (powered by non-fossil fuels), and solar thermal electric systems - must be connected to the grid. The CEC must certify the vendors of these different types of emerging renewable energy systems and components. CEC-certified vendor and equipment lists are available on the CEC web site.

As part of purchasing a system and applying for a CEC Buydown rebate, you should consider whether you have enough sun, wind, or alternative fuel resources available to justify your investment. CCEnergy can help you with this. CCEnergy offers a free site visit to evaluate your location, analyze your utility usage, and generate a proposal for system sizing, equipment, and financial considerations. As a co-op member, you can tap into the collective expertise and resources of solar professionals and the experiences of other members who have installed systems. The CCEnergy web site also features tools and resources to help you make well-informed choices and select the system that is right for you. You can also get more information at the California Energy Commission web site about buydown rebates and current lists of certified equipment or call CEC at 1-800-555-7794.

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