Selecting the System

• After deciding that we were interested in a demonstration project, we attempted to follow the path of the typical consumer.
• We gathered articles about PV technology, searched the Internet for more information, comments and recommendations. We looked in the yellow pages and sought personal recommendations.
• After identifying a group of contractors, we contacted seven or eight that were within 75 miles of our site. In addition being able to compare recommendations and products, we wanted to make sure that they would be willing and available to return if our equipment needed servicing.
  • Five Photovoltaic professionals visited CVEC to look at our project and discuss options
  • Most have 15-30 years of experience
  • Some focused on providing guidance, charging for their expertise as a consultant, then arranging for installation.
  • Others were more sales oriented following the traditional process of helping the customer select a system
  • Others started as electrical contractors and expanded in the PV installations.
• CVEC compared roof mount systems to pole mount systems
  • We chose a stationary pole mount system because we had the space and understood that you may see longer life with better airflow behind the panels. We also chose a stationary system rather than one that followed the sun due to cost and service considerations of a mechanical tracking device.
• CVEC compared a variety of panels that ranged in price and country of origin
  • CVEC chose the panels for the cell efficiency, frame strength and expected longevity (20 years guaranteed and 30+ years projected. Others might choose a different panel and be happy with the selection.
• CVEC chose the SMA Sunny Boy 3000/4000 Inverter which converts the DC (direct current) output of the panels to the AC (alternationg current) so that the solar unit can be connected to our circuit breaker panel. Useful life is 10 years guaranteed with 15+ years as a reasonable projections
• CVEC also chose the SMA Webbox to allow us to monitor the system and share the data results with CVEC members.
• CVEC chose to have the contractor install the pole in a very large concrete foundation and have them trench from the PV system to the service entrance to CVEC Headquarters.
• Turnkey cost for the 2 KW system? $20,000
  • The CVEC PV system is rated to generate up to 2 kilowatts(KW) of electric energy at any given moment, but it will likely never reach that mark. Actual energy output is determined by:
    • the time of day
    • the amount of cloud cover
    • the temperature.
  • A Megawatt-hour:
    • Would presently cost CVEC about $45 from our wholesale supplier
    • It would light 10,000 hundred-watt lightbulbs for one hour
    • It equals the standard unit for Renewable Energy Certificates (REC’s)
  • If a kilowatt hour cost 8.5¢ then 3000 kwh’s generated would save: $255 per year.
  • If a kilowatt hour cost 12.5¢ then 3000 kwh’s generated would save: $375 per year
  • If a kilowatt hour cost 16.5¢ then 3000 kwh’s generated would save : $495 per year
  • Purchasing the rights to your SREC’s for a long period (10 years) for a lump sum. One estimate was 22% of your capital cost. You keep and use the energy but the “green aspect” is sold.
  • Providing a fixed rate over a period of time (annuity) for your SREC’s. Check with SREC brokers for actual figures.
  • Selling your SREC’s into the market and paying the broker a fee. You would likely see fluctuations in market prices with this option.
  • Department of Energy List of REC Marketers
  • Regional Example – SRECTrade
  • DC Based: SolSystems
  • A PV system qualifies for a 30% tax credit with no upper limits. That means that the $20,000 PV system would provide a $6,000 tax credit, reducing the initial cost to $14,000.
  • This federal tax credit expires on December 31, 2016
  • Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
  • More information on the Federal Tax Credit that may also apply to other projects that you might be considering.
  • DSIRE – Database of State Incentives for Renewables and Efficiency
  • USDA REAP Grants – Rural Energy for America Program

Energy Output

Notice that the system is peaking near 1.6 KW around early afternoon and that the the prime generation hours are from 10 AM to 4 PM during summer hours. Since this graph only gives you a continuous snapshot of energy output, the question becomes how much energy per hour or per day would it provide to my home or business, measured in kilowatt-hours (energy output over time). Read the information below and see if you can calculate the daily output.

The 2 kilowatt photovoltaic system at CVEC headquarters
marked a milestone at the end of July 2010
generating 1 megawatt-hour of electric energy during the first 100 days of operation.

A Megawatt-hour generated over 100 days also averages 10,000 watt-hours per day, also referred to as 10 kilowatt-hours per day. What could you power in your home with 10 kwh per day? Look at the appliance energy usage chart to see what you PV panels could simultaneously power.

Daily Energy OutputEnergy and Power
Plant OverviewPlant Profile

Want more information on what to expect from PV (photovoltaic) generators?

Have a comment or suggestion for CVEC?

Financing

The Sanyo 2 kilowatt photovoltaic system cost CVEC $20,000 for a turnkey installation.

We were advised that we might pay $8000 -$10,000 per kilowatt of generation capacity. While the capital costs are very high per kilowatt, the PV system requires no purchased fuel, unlike coal, gas and other electric generation plants. The idea is to recover the investment over time, possibly a very long time.

In addition to government incentives, there are a number of options to help reduce the capital cost of a PV system or generate annual revenue.

Assuming that our system generates 3 megawatt-hours per year, which equals 3000 kilowatt-hours per year, how much are we saving?

As a Virginia utility, CVEC is required to provide a “Net Metering” option to Co-op members generating energy. In short, CVEC provides a credit when a member’s energy generation exceeds their energy consumption. CVEC provides a credit of 8.5¢ per kwh, the effective residential rate. In the near future, CVEC will provide a purchased power agreement option for members who consistently generate more power than they use.

Another way of offsetting the cost of the PV system is to sell the solar renewable energy credits (SREC’s) through a broker to people who want to support renewable energy by paying an additional fee. SREC’s are a tradable commodity and represent the renewable attributes of solar energy. Some states require a minimum percentage of renewable energy and some individuals are willing to purchase the renewable attributes for personal reasons. SREC’s are sold on the market in 1 MW increments.

Like any commodity, prices are constantly changing and SREC brokers have developed programs to help individuals. These include:

Be advised that CVEC has no knowledge of the long term outcomes of selling SREC’s into another market and is not endorsing the use of an SREC broker. If, however, you are interested, here are links to SREC marketers if you want to explore and evaluate this option:

Recent legislation has enabled CVEC to sell REC’s to members as a CVEC tariff rate. Look for more information in the future as this optional rate is established.

Incentives

If you are thinking about investing in renewable energy, then this is a good time if you are interested in government incentives.

Currently there are investment tax credits and grants that can help to reduce the cost of a PV system

Federal Tax Credit for Energy Efficiency Investment

• A PV system qualifies for a 30% tax credit with no upper limits. That means that the $20,000 PV system would provide a $6,000 tax credit, reducing the initial cost to $14,000.
• This federal tax credit expires on December 31, 2016
• Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
• More information on the Federal Tax Credit that may also apply to other projects that you might be considering

.

Other Energy Efficiency Incentives

• DSIRE – Database of State Incentives for Renewables and Efficiency
• USDA REAP Grants – Rural Energy for America Program

Safety Information

There are a number precautions that should be observed to ensure that a PV system owner will enjoy the benefits of the generation equipment. CVEC, like other utilities, has specific standards for interconnection to the Cooperatives distribution system to ensure the safety of the public and our dedicated linemen.

Net Metering and Interconnection Safety

As a Net Metering customer you will have the benefit of placing your renewable fuel generated energy on the CVEC distribution system grid when you don’t need to use it and drawing energy from the CVEC distribution system when you do.

As a Net Metering customer you must submit a completed commission-approved notification form to CVEC at least 30 days prior to the date that you intend to connect your renewable fuel generator to the CVEC distribution system if it is less than 25 KW and you must have all equipment necessary for interconnection prior to the notification.

Please review the CVEC Net Metering Energy Rider so that you will be aware of the requirements for internconnection, which include the installation of a manual disconnect switch.

Also be aware that, CVEC will conduct an inspection prior to the day of intended interconnection to the CVEC distribution system. Please contact CVEC at 800-367-2832 ext 1401 if you, your licensed electrician or the renewable fuel generator installer have any question.

*Notification is 60 days prior to intended interconnection for systems greater than 25 KW.

Links

CVEC will be adding links related to solar energy. If you have suggestions, please forward them to ms@forcvec.com