OMEU Annual Meeting Solar Industry Perspective

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OMEU Annual MeetingSolar Industry Perspective
the Implications for Public Power

• Alan Hickenbottom
• Director, Commercial and Industrial Division
• Energy Outfitters

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Energy Outfitters Ltd

• Founded in Grants Pass in 1991
• Oregons largest and most experienced solar firm
• 25 employees
• 6 locations
• 3 Business units
• North American distribution
• Readywatt solar PV system products
• Commercial Industrial Division

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Why Solar?

• Pick your poison
• Foreign oil (LNG) dependence
• Clean Coal
• Assignment of external costs could reduce price
  advantage
• The return of nuclear power
• Global climate change
• On-site generation
• No transmission upgrades
• No efficiency losses
• Great solution when be combined with efficiency
  and conservation
• Eventual goal of net zero structures
• Base load remains critical

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Solar Industry Update

• 1.46 GW in 2005
• 34 growth
• 3.2 to 3.6GW, 18B - 23B by 2010
• 20-30 shortage in silicon crystal
• Demand - Germany 57, Japan 20, US 7
• Production Japan 46, Europe 28, US 8
• Government policy is the difference
• Stable, long term environment is needed
• Minor changes could make the US the largest solar
  producer and user again

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System types

• Residential
• 2kW to 5kW
• Incentives not quite in line with Public Power
• Customer satisfaction more than power production
• Commercial/Industrial
• Net-metered, on-site load offset
• 10kW to 200kW
• Wider system implications
• Utility scale
• 1MW
• Requires utility infrastructure
• Third party investor model

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Regional Solar Resource
Northwest Region Irradiance Map Oregon,
Washington, Idaho, and portions of Wyoming and
Montana
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Solar Shading Analysis

• Available Tools for Evaluating Site Shading
• ASSET by Wiley Electronics
• Solar Pathfinder

Note Most rebating entities will not accept any
more than 25 shading. Ideal is free from shading
9am-3pm.
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Common PV Module Types

• Crystalline Modules (Mono and Poly)
• Higher Efficiency
• Higher Power Density

• Thin Film Modules
• Less prone to temperature de-rating.
• Less per watt

(Kaneka 60W )
(Isofoton 100W )
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Common Mounting Systems
Flush Roof Mounting
Ballasted Roof Mounting
Tilted Roof Mount
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Common Mounting Systems
Ground Mount
Top of Pole Mount
Photos courtesy of UniRac
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DCgtAC Inverters
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Photo John Cunningham
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Commercial scale solar

• Enabled by the EPact of 2005
• 30 ITC for certain renewables inc. solar
• Current ITC sunset December 31, 2007
• The perfect customer
• Privately held C-corp
• Owns and occupies facility for the long term
• Tax appetite
• Sustainability is part of their mission
• Has internal champion
• Possible increase of Oregon BETC to 50

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Incentives

• Bonneville Power Administration CRD funds
• 0.50 per watt
• Pro-rated to 0.22 in 2006
• Federal ITC 30 of system cost
• Year one credit
• Can be carried forward
• Cannot be transferred
• Oregon BETC - Up to 35 of system cost
• Five year credit
• Pass-though option available 25.5 as single
  credit
• Accelerated depreciation
• MACRS 5 year term

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Photo Kettle Foods
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Payback and other trivial matters

• Payback based on known factors 6-8 years
  (commercial)
• Finance options available
• Private sources
• Public bonds
• Not in calculation
• Re-investment of tax credits
• PR value
• Internal and external branding
• Asset value
• Not counted against property tax value

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What are the Implications for Public Power?

• Opportunities and Challenges

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What does all this mean to OMEU members?

• General renewable energy drivers
• Global climate change
• National security
• Salmon issues
• Better incentives on the way?
• The BPA Regional Dialogue
• High Water Mark (see page 62)
• 2011
• Tier 1, Tier 2 et al

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For discussion . . .

• Nuisance or opportunity?
• Peak load power source
• Least cost upgrade option
• Efficiency vs. conservation
• Net metering issues

• Stakeholder perception
• Local economic development opportunity
• Safety issues i.e. manual disconnect
• Perspective
• Next fiscal quarter vs. next quarter century

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Have PowerPoint, will travel

• Management
• Public administration and elected officials
• Specific businesses
• Civic and business groups

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Summary

• The solar industry continues to grow 30 CAGR
• Drivers, Awareness and Incentives are increasing
• Solar is a viable addition to the DG portfolio
• Solar provides new opportunities to serve your
  stakeholders

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Thanks!Alan Hickenbottom503-703-0602
Direct800-467-6527 Corporatealanh_at_energyoutfitte
rs.comwww.energyoutfitters.com