Solar Power International 2010

This month I attended Solar Power International conference and trade show in Los Angeles (Oct 12-14). It was my second time on this biggest (at least in North America) solar trade event. Exposition was huge, but I have not seen any radically new products: e.g. solar shingles.

Solar Industry in Germany: First Glimpse

Finally, I have returned from my trip to Germany. I visited the most prosperous land - the free state of Bavaria. First impression: residential sector is covered just slightly - not more than 10%. However, there are a lot of large ground solar installations.

Trip to Germany: to see Green Energy in Action

I am on my trip to Germany to see by myself how green initiatives work in this country. Germany became undisputed solar energy leader due to their Feed In Tariff. I will try to figure out what we can do differently here, in North America.

New player in photovoltaic solar panels

Solar Source plans to bring 150 full-time jobs with the first 30MW phase of the photovoltaic solar panels manufacturing plant in Windsor, Ontario. The second phase will bring an additional 50 jobs to total 200 jobs for the plant. The company promises to invest “well in excess of $40 million” in its Windsor launch, with the first solar panels to be coming off the line by the end of 2010 at an operation expected to employ up to 200 people by next year. Depending on the renewable energy marketplace, a Windsor workforce can be up to 500 within three years.

Solar Source Ontario is a joint venture of a subsidiary of Canadian merchant bank Solar Bancorp Inc. and India-based multinational HHV.

Visit the following links to learn more about domestic content and photovoltaic solar panel installation in Ontario.

FIT rates chopped by 15%

The situation which was predicted in my previous post Do it sooner rather than later happened... in Germany. According to PV-tech.org new rooftop solar systems' FiT rate will be chopped by 16% while solar parks built after July 1 will receive cuts of 15%, less than the 25% the Germany Environment Ministry originally proposed for parks.

History repeats itself. What happened in Germany may (and will) happen in Ontario. As it happened with ecoEnergy Retrofit program. So, don't procrastinate with your installation. The first layer of protection - apply for OPA approval.

To learn how to start a residential solar project visit Solar PV Installation.

Residential Solar Photovoltaic Installation: A Complete Guide for Ontario Homeowners

Solar Photovoltaic installation under the Ontario Feed In Tariff program is a quite big venture. It may take well over 3 months and require coordination between numerous parties. Here is your step-by-step tutorial for how to get this done smoothly:

Request approval for you project from OPA. According to program rules, you need to submit an application to the Ontario Power Authority for approval. You can send this request yourself or your PV installer can help with this. While you await the approval of your project (in autumn 2009, the processing time for applications was more than 2 months, but this time period has now been shortened) you or your PV contractor can contact your local utility to find out how you will be connected and learn about costs associated with this connection.

Find a photovoltaic installer. Do your homework. Research installers websites. Narrow down your list (tips for how to find a proper installer have been discussed in the previous article). Request estimates from 3-4 installers from your shortlist. Weigh all factors again (including price) and make an educated decision.

Receive approval from OPA. Now, you and your installer are ready for the active phase of the project.

Put together and submit an application for a municipal building permit. In Ontario, Photovoltaic panels measuring 5 sq. meters and more are considered "designated structures" and require a building permit. There are 3 options: you can prepare the application yourself, your PV contractor can do this, or your PV installer can put together the application and you submit it. The third alternative is the most practical if you are not prepared to dive deeply into drawing and building codes. Municipalities usually process applications within 2-3 weeks.

Receive a building permit. Now you can schedule all final steps of the project: installation, ESA inspection, connection to utility.

Install PV system. For a 3-5kW residential rooftop system it will usually take 2 days.

ESA inspection. Your PV installer should schedule and pass an Electrical Safety Authority inspection.

Connect to Utility. Utility's technician will come to install a designated meter and connect your system to the grid.

Sign contract with utility. This is the final step; after this, you are in production and produce electric power for North-Eastern America.

It may have taken you a bit more than 3 months but you have accomplished this big project. Congratulations! Now you not only help the environment, but receive hefty cheques for doing so.

To learn more about solar panel installations in Ontario visit Solar Photovoltaic Installation.

Timminco halted polysilicon production

Timminco Ltd. halted the production of solar-grade silicon at their Becancour facility in Quebec. Company's production process was expected to produce solar grade silicon at a cost equal to less than half that of traditional polysilicon producers.

The company had planned to produce 3,600 tonnes of solar-grade silicon in 2010, with plans to expand capacity to more than 14,000. In its last quarter, it saw silicon metal sales of $29.4-million, and lost $3.9-million on its solar-grade silicon operations.


Read the full story in The Globe and Mail

Solar photovoltaic system: 5 ideas on how to hire a proper installer

The solar photovoltaic installation market has a tremendous number of participants; California alone has 80,000 solar installers. Are all photovoltaic installers created equal? Who is the most qualified candidate to do your rooftop PV installation? Price clearly is one of the most important considerations, but, there are other significant factors, neglecting which can cost you a lot of money down the road. In this article we will discuss 5 of the most important questions you should think about while searching for an installer for your solar Photovoltaic project.

Do they offer an array of a-la-carte services? A grid tie solar photovoltaic system may require a lot of project-related activities: proper sizing of the system, structural assessment of the roof, obtaining a municipal building permit, coordinating with local hydro, etc. Ideally, these features would be a-la-carte and your installer could offer them if they were needed. However, in this situation you will have the opportunity to save money by doing some of these tasks yourself.

Do they have an arrangement with manufacturers to service their products? If so, it may substantially reduce the possible system downtime and costs related to maintenance and repair.

Do they offer warranty, extended warranty and/or a maintenance plan? Even though solar photovoltaic systems are very reliable and require low maintenance, if you wish to have extra peace of mind and lock your maintenance costs, you may consider purchasing extended warranty and/or a maintenance plan. Your ideal installer should give you these options.

Do they offer roof warranty? Any kind of roof penetration (which is basically imminent for rooftop installation) almost definitely waives your roof warranty. Ideally, your solar PV installer has to offer you this warranty. (Tip: if your roof is old enough, re-do your roof and install the PV system simultaneously. It may save you significant money during installation and down the road).

How long have they been on the market? There is a risk that the installer may go out of business and will not honor the warranty. With a tremendous number of players (80,000 installers in California alone) this can be a quite possible scenario. To mitigate this threat, consider contractors which have been in solar or adjacent businesses (e.g. roofers, HVAC) for a long period of time. In this case, they’ve navigated through ups and downs of economic reality and have much better chances of making it through in the long run.

Here is your plan of action: Do your homework. Research installers websites and narrow down the list of contractors using the above mentioned criteria. Request quotes from 3-4 installers from your shortlist. Consider all aspects again (including price) and make an informed decision.

To learn more about solar photovoltaics visit Solar PV Installation.

Calisolar acquired Ontario-based silicon manufacturer

On February 11, 2010 Calisolar Inc. announced the acquisition of 6N Silicon Inc., an Ontario-based silicon supplier to Calisolar and the solar industry.

Calisolar Inc., which began commercial shipments of solar cells in January 2010, will increase capacity at the Sunnyvale, California cell manufacturing facility and expand silicon purification operations in Vaughan, Ontario. 6N Silicon will operate as a wholly-owned subsidiary of Calisolar.

Calisolar will integrate 6N Silicon's innovative, low-cost, silicon purification techniques. By optimizing silicon for wafering and cell manufacturing, Calisolar will significantly lower manufacturing and energy costs, improve silicon yield and enable scrap silicon recycling.

To read the whole story visit 6N Silicon Inc.

Rooftop Solar PV Installation- Warranties: Part 3

In previous articles we have discussed solar panel warranties and inverter warranties. In this final article about warranties we will discuss installer warranties and roof warranty, risks associated with them and strategies how to mitigate these risks.

Installer's warranty. There is no industry standards. Installers may offer you warranty for their labour and extended warranty for parts of a PV system. The extended warranty makes sense if you want to lock your expenses and reduce possible downtime of the system.

Installer's warranty: Waiving of warranty due to installer's bankruptcy. There is the possibility that the installer may go out of business and will not honor the warranty. With a huge number of players (80,000 installers in California alone) this is a very likely situation. To mitigate this risk, consider installers who have been in solar or adjacent businesses (e.g. roofers, HVAC) for a long period of time. In this case, they’ve navigated through ups and downs of economic reality and have much better chances of surviving in the long run.

Roof warranty. Any roof penetration (which is almost imminent for rooftop installation) almost certainly waives roof warranty. To mitigate this risk while installing a PV system consider working with a company that does both roofing and solar PV installations.

To learn more about solar photovoltaics visit Solar PV Installation. To learn more about roofing visit Toronto Roofers.

Rooftop Solar PV Installation- Warranties: Part 2

In the previous article we have discussed solar panel warranties. In this article we will discuss inverter related warranties, risks associated with them and strategies how to mitigate these risks.

Inverters: Manufacturer's warranty. Almost all manufacturers of inverters offer the same warranty. For inverters, the industry standard is 5 years on parts and labours. It is well known that typical lifetime of inverter is around 15-20 years. Thus, there is a possibility that you need to change an inverter during the 20 year timeframe (e.g. span of FIT contracts in Ontario). Thus, you can consider buying extended warranty or inverters with warranty above the industry standards (obviously they cost more).

Inverters: Waiving of warranty due to manufacturer's bankruptcy. There is a possibility that inverter manufacturer will go out of business and will not honor the warranty. Unlike solar panel industry with hundreds (if not thousands) suppliers, the inverter industry has not more than 10 major players with well established market shares. Thus, a possibility that a manufacturer will go out of business within warranty lifespan and will not honor warranty is pretty remote.

To learn more about solar photovoltaics visit Solar PV Installation. To learn more about roofing visit Toronto Roofers.

Rooftop Solar PV Installation- Warranties: Part 1

Warranties: What should you take into account while looking for rooftop solar PV installation?

In this series of articles about solar photovoltaics we will discuss different aspects of rooftop installations. Such as a solar PV rooftop system is an essential part of roof, it is expected to work 20+ years and it costs a lot of money, warranties have to be very important part of purchase decision. In this article we will discuss solar panel related warranties, risks associated with them and strategies how to mitigate these risks.

Solar panels: Manufacturer's warranty. Almost all manufacturers of solar panels offer the same warranty. For solar panels, the industry standard is 5 years on parts and labours and 25 years on 20% output degradation. It is well known that typical lifetime of solar panels is much more than 20-25 years- solar farms, which were built in mid 70-th still generate electricity. However, if you need extra peace of mind you can consider buying extended warranty or panels with warranty above the industry standards (obviously they cost more).

Solar panels: Waiving of warranty due to manufacturer's bankruptcy. There is a possibility that panel manufacturer will go out of business and will not honor the warranty. Again, typical lifetime of solar panels is much more than 20-25 years. Moreover, all solar panels sold in North America and used in grid tie installations are subjects to strict certification (UL, TUV, etc). Thus, a panel failure within warranty lifespan is a pretty rare event and a possibility that that a manufacturer will go out of business and will not honor warranty is pretty remote as well.

To learn more about solar photovoltaics visit Solar PV Installation. To learn more about roofing visit Toronto Roofers.

Who Should Install Your Photovoltaic System?

Installers of rooftop solar systems: who are they? Consider all the numerous types of solar installers: pure PV guys, HVAC guys, electric contractors, roofers, etc. In California alone you can find roughly 80,000 photovoltaic installers. So are all solar installers created equal? Who is the best candidate for your rooftop PV installation? There are many reasons why the answer should be roofers. Consider the following advantages of roofers over pure electricians:

They know weatherproofing techniques. A rooftop PV system should not just generate electricity; being an integral part of the roof, it should protect you and your property from precipitations. Who knows weatherproofing techniques better than roofers?

They have an understanding of roof loading techniques. Solar panels may create an extra load on the roof structure. Who knows how to distribute load on a roof better than roofers?

They understand material transport across a rooftop. This is especially important for flat or low-slope roofs. Improper storage materials on the roof may cause structure collapse.
 
They know how to do it safely. Roofers use proper safety considerations during installation (e.g., torch use).

They know how to work at high heights. Not everybody can work on heights, nor can they do it safely. Roofers work on heights every day; they are properly trained, they have appropriate experience, and they have proper insurance.

They are familiar with site organization, staging, public safety, and material hoisting. If part of a rooftop system is not properly hoisted it may pose significant danger to public safety.

With all this comes the key factor, roof warranty. Any roof penetration (which is almost imminent for rooftop installation) almost certainly waives your warranty (check your warranty!). In the end, working with roofers while installing a PV system may save you from hassle down the road. (Tip: if your roof is old enough, do your roof and install the PV system simultaneously. It may save you significant amounts of money at the time of installation and down the road). 

So, how is it supposed to work? Definitely, electricians should not take on roofing duties, nor should roofers take on electrician duties. Thus, your ideal solar installer consists of the best of two worlds: a roofers' company with electricians on board (either as a part of the company or a subcontractor).

To learn more about solar photovoltaics visit Solar PV Installation. To learn more about roofing visit Toronto Roofers.

Solar Installations in Ontario: what is within MicroFIT

On September 24th, 2009 Ontario government introduced Ontario's Green Energy Act, which is expected to create 50,000 new jobs and reshape the energy landscape in the province. One of the major components of Ontario's Green Energy Act is a Feed-In Tariff (FIT) program, which allows individuals and companies to sell renewable energy (solar, wind, water, biomass, biogas and landfill gas) into the grid at set rates. The MicroFIT program is a subset of the Feed-In Tariff program which targets residential and small commercial projects which are less than 10kW in nameplate capacity. In this article we discuss implications of most essential provisions in the MicroFIT program (namely, local content rule, price, the Electrical Safety Authority (ESA) inspection and connection to a local utility) on residential and small commercial solar installation projects.

Price
This is the most attractive part of the program. Currently for solar MicroFIT projects (less than 10kW in nameplate capacity) the price is set to 80.2c/kWh. This price will be fixed in the contract for 20 years. However, the program rules indicate there is a provision that this price may be reviewed (obviously downgraded) for those signing contracts after the few initial years. Thus, timing matters for MicroFIT projects.

Local content
A certain part of the PV project should be manufactured or produced in Ontario. For solar PV projects that reached commercial operation on or before December 31, 2010 it is 40%, after December 31, 2010 – 60%. According to program rules, it is easy to achieve 40% threshold using a local installer (27%) and a supplier of electric hardware (10%) in combination with either assembled solar panels (13%), an inverter (9%) or a mounting system (9%). However, 60% threshold can be reached using all components mentioned above (it is very unlikely that within the next couple years anybody will build any facilities for silicon processing or cell manufacturing in Ontario, thus it does not make sense to discuss any other possibilities to meet this threshold). Essentially, limited supply (currently just PV panels with a 5MW nameplate capacity per year are produced in Ontario) may trigger temporary higher system prices in 2011.

ESA Inspection
According to MicroFIT rules, a solar PV project is a subject of the Electrical Safety Authority (ESA) inspection. It simply means that it is not a do-it-yourself project. All hardware (including solar panels) should have appropriate certifications and wiring should be done by a certified electrician. Contact ESA to get more details.

Connection to a local utility
Currently this is the most uncertain part of the requirements. Utilities have not yet had experience with microFIT projects, therefore expect some (perhaps even major) delays. To avoid this, begin working with them ASAP.

The MicroFIT program is an essential part of Ontario's Green Energy Act, which should bring us to a greener, brighter and more sustainable future. The most significant ingredients of this program include: local content rule, fixed price, the Electrical Safety Authority (ESA) inspection and connection to a local utility. Make sure that you and your contractor/supplier understand these rules prior to jumping into a project.

To learn more about photovoltaic systems visit Solar PV Installation.

Increase in PV System Prices: Is This Possible?

In the previous article we discussed reasons for installing a PV system sooner rather than later. In this article we discuss factors which may lead to increase in system prices for Ontario homeowners:

C$/US$ parity
The cost of photovoltaic systems is tied to an underlying commodity (silicon) which is priced in US dollars. Moreover, most parts of photovoltaic systems (cells, power electronics) will be imported (despite local content rule) from China. Thus, photovoltaic system cost will be significantly dependent on the CAD/USD exchange rate. Take advantage of the current near parity exchange rate. It will not last long. Economists expect a decline in the loonie back to 0.55-0.65 USD range within a couple years.

Silicon price
While system prices decrease steadily, in short-term, prices on silicon may be volatile. The booming photovoltaic industry worldwide is a major consumer of polysilicon. Because European countries have started to offer incentives to install solar energy, demand for solar cells has heavily increased. This demand may continue to increase significantly when incentives are introduced in China (expected in 2010). The amount of polysilicon needed today for both solar cell and semiconductor production is larger than the manufacturing capacity. Therefore limited supply + high demand = high price of silicon; a typical supply and demand situation.

Increase in system price due to local content rule
Until January 1, 2011 FIT rules require 40% local (Ontario) content which can be easily satisfied using numerous scenarios. After January 1, 2011 however, local content rule will be increased to 60%, making it much more difficult to satisfy. Consequently, system prices may increase until enough manufacturing facilities are built in Ontario to satisfy all demand.

Thus, despite a steady tendency of decreasing system prices, there are some factors which may contribute to short run (e.g. local content rule, commodity price) or even long run (e.g. due to change in exchange rate) increase in PV system prices.

To learn more about solar PV systems visit Solar PV Installation.

Installing Photovoltaic Systems in Ontario: Do it sooner rather than later

In previous articles we discussed PV as an investment and PV systems from homeowner's perspective. However, while installing a photovoltaic system is a great investment in general, there are some significant reasons for doing it sooner rather than later. Among them: increasing system price, decline in energy purchase price, accelerated amortization, Home Renovation Tax Credit, and being a green role model.

Increasing system price
The cost of photovoltaic systems is dependent on numerous factors: supply/demand for an underlying commodity (silicon) and cells, foreign exchange rate, local content rule implementation. Consequently, system prices may increase in short run (e.g. until enough manufacturing facilities are built in Ontario to satisfy all demand) or in long run (e.g. due to significant change in foreign exchange rate).

Decline in purchase price
Currently within the FIT Program, there is no notion of gradually declining purchase price for generated electricity. However, based on German experience (which is mirrored in the FIT program so far) most industry experts expect introducing a 5-7% reduction of feed-in tariffs each year (so-called degression).

Thus, after initial two years for newly installed PV systems the rate of degression may be higher than annual drop in installed system prices. The FIT Program may also be suspended (which happened with RESOP) or capped (as in Spain) for new entrants.

Accelerated Amortization
For purchases made before Dec 31, 2011, homeowners can use Class 43.2 of the Canada Income Tax Act to write off the income from their solar system until the capital cost of the system is fully depreciated.

Home Renovation Tax Credit
Residential solar systems are also currently eligible for $1,350 federal Home Renovation Tax Credit.

Being a Green Role Model
On top of above mentioned financial reasons, there is significant moral incentive to be a green role model. With constantly rising global warming awareness, you will demonstrate to yourself, your kids, your friends and your neighbors that you really do care about the environment.

There are significant benefits to being an early adapter of photovoltaic technologies. Some of them are strictly financial (e.g. increasing system price, decline in energy purchase price, accelerated amortization, Home Renovation Tax Credit), while others offer the huge moral incentive of being a green role model.

In the next article we will talk about factors which may contribute to higher price for photovoltaic systems.

To learn more about photovoltaic systems visit Solar PV Installation.

Solar PV and Your House: FAQ

Installing a photovoltaic system on your house is a great investment for a number of reasons: not only does it increase resale value of your home without increasing property taxes, but it may protect your roof, help to reduce your energy bill, and be a great selling point for your house. Not to mention that a solar installation actively demonstrates your green attitude.

Does PV add to the Resale Value of my home?
Based on US data one can conclude: yes, PV does add to the house value. Research published in the Appraisal Journal concluded that “the increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs due to energy efficiency measures” (Nevin and Watson, "Evidence of Rational Market Valuations for Home Energy Efficiency," Appraisal Journal, 1998).

According to a study by the National Appraisal Institute, a PV system will add $10-$20 to the value of your home for every dollar saved over the course of the year. For instance, if your system generates $2,000/year, it would typically add $20,000-$40,000 to your home's value.

Does PV increase my property taxes?
It may in some jurisdictions, but not in Ontario. The Ontario Ministry of Finance has confirmed recently that there will be NO property tax implications resulting from installing small renewable energy systems, including solar electric and solar thermal systems.

Thus, installing photovoltaic system for Ontario homeowners is a unique home improvement that generates stable income without property tax implications.

Does it protect my roof?
Yes, it may protect your roof. A PV system shadows the covered part of the roof and protects it from UV, which in combination with water is the primary source of asphalt shingle degradation. Thus, installing a PV system will protect roof materials on southern parts of the roof (which experience direct hit from the sun) and may extend your roof's service life.

Will it reduce my energy bill?
A properly installed PV system may reduce your energy bill by keeping your home cooler in the summer and warmer in winter. A PV system shadows the covered (southern) part of the roof and and reduces the heat gain on the roof surface, in doing so it decreases the heat transfer in the attic during summertime, lowering your A/C bill. In wintertime, the narrow distance between the solar panel and roof may work as additional thermal insulation, in turn reducing your heating bill.

Green Attitude
You will be reducing the carbon footprint, meanwhile also contributing to a cleaner Earth. With increasing global warming awareness, you will demonstrate to yourself, your kids, your friends and your neighbours that you truly care about the environment.

The solar photovoltaic system is a great investment and may be a great selling point for your house. While helping the environment does not add up to much financial gain in a real estate contract, giving the buyer this peace of mind coupled with steady income without increasing property taxes, extended roof's service life and reduced energy bill certainly would assure them of increased equity for years to come.

Solar PV: Top 5 Reasons to Invest in Ontario

Since October 2009, significant financial incentives have become available for Ontario homeowners to encourage adoption of renewable energy in the province. Under the Ontario Solar Feed In Tariff Program, homeowners will be paid a guaranteed price of 80.2 c/kWh (for solar PV projects of 10 kilowatts or less) for all the electricity their project generates for at least 20 years. With this legislation in place, green investments in general have never made such financial sense. Consider the following advantages:

- Return is fantastic, while it is a virtually risk-free investment
With significant incentives that are available to Ontario homeowners, going solar is far more than just an environmental and socially responsible opportunity. You will earn up to 14% (!) on your investments annually for at least 20 years. In addition, these investments are virtually risk-free (guaranteed by the provincial government) and can be considered as buying a 20-year provincial bond with 10-12% yield.

- Provide steady and predictable income
The set price in the contract remains fixed for 20 years, guaranteeing you a steady and predictable income for at least 20 years. However, current solar panels have a much longer lifespan, allowing you to sell electricity (and generate income) long after the initial 20 years.

- Cash incentives from the government - Home Renovation Tax Credit
On top of these huge financial incentives, current $1,350 federal Home Renovation Tax Credit (HRTC) is still available.

- Green investment
Green Impact of a 3kW Residential Solar System:
Amount of work conducted is equal to:    0.8 acres of trees
Pounds of carbon dioxide prevented:     5,831 lbs a year
Pounds of sulfur dioxide prevented:      0.1 lbs per year
Pounds of nitrous dioxide prevented:     1.7 lbs per year

- Support local jobs and community
With local content rule built-in into the Feed In Tariff program, the major part of your investment will stay in Ontario, creating green jobs and supporting local communities.

In the next article we will analyze implications of photovoltaic installation from homeowner's perspective.

Feed In Tariff in Ontario: On a Verge of Solar Boom

Having suspended Standard Offer Program (the first North America Feed In Tariff in recent twenty years) in 2008, on September 24, 2009 Ontario made its second attempt to create a green economy. Solar Feed In Tariff with a guaranteed price of 80.2 c/kWh for solar PV projects 10 kilowatts or less in size and 71.3 c/kWh for solar PV projects 250 kilowatts or less in size may trigger a solar boom in the province.

Can Ontario repeat the success of Germany? If so, we can expect installing 200-250 MW nameplate capacity even in the first year.

In the next couple of articles I will try to analyze opportunities created by the new initiative. We start with investment aspects of solar photovoltaics in Ontario.

New Blog about Solar Technologies

In recent months I developed significant interest in all aspects of solar technologies (primarily photovoltaic). After attending Solar International in Anaheim and Canadian Solar in Toronto I decided to depart from just theoretical concepts about sustainability to something more practical...

So, I started this blog. I will focus on solar technologies and their practical implications. Sometimes implications will be general; sometimes with Canadian (or even Ontarian) flavor.

I understand that this is just one of numerous blogs about green energy and sustainability. However, I believe that together we will make our world a better place to live.

So, welcome aboard! Enjoy the flight!