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.
Thursday, February 18, 2010
Thursday, February 11, 2010
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.
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.
Wednesday, February 10, 2010
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.
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.
Tuesday, February 9, 2010
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.
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.
Monday, February 8, 2010
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.
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.
Wednesday, February 3, 2010
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.
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.
Tuesday, February 2, 2010
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.
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.
Monday, February 1, 2010
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.
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.
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