Photovoltaic Solar Energy and Solar Hydrogen

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Photovoltaic Solar Energy and Solar Hydrogen

• The Role of Solar Energy in Reducing American
  Dependence on Foreign Oil
• Jay Marhoefer
• Energy Law

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The Role of Solar Energy

• Renewable source of H2 production.
• Renewable source of electricity.
• Easily integrated with grid and renewables.
• Scalable.
• Residential/community distributed generation.
• DGREPs (distributed generation real estate
  partnerships).
• National/international infrastructure projects.

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Problems Addressed

• Chicken/egg enigma in building a national
  hydrogen infrastructure.
• Requirement of fossil fuels for hydrogen.
• Requirement of more coal, gas-fired and possibly
  nuclear power plants.
• Peak electricity consumption, both daytime and
  summer.
• Increased vehicle miles of summer.

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Conclusions

• Solar is already becoming cost-competitive in
  some states (including Illinois).
• Hydrogen solves the non-dispatchability problem
  of solar.
• Hydrogen also cures the peak/baseload issue of
  solar.
• Solar is one way to ensure that Mexico will
  continue to have oil for export to the U.S.

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The Power of the Sun

• Each day, the sun provides more than 15,000x the
  entire annual energy needs of the world.
• A site of solar panels 20 miles x 20 miles in
  Nevada could provide enough electricity to meet
  the entire U.S. demand.

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The Suns Energy Banks

• Second law of thermodynamics requires more energy
  to produce less energy.
• But suns energy can be banked over time.
• Biomass lt1 year (corn/ethanol).
• Petroleum gt100 million years (resulting in
  highly concentrated energy stores).

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A Brief History of Solar Energy

• 1839 Edmond Becquerel (19 years old) discovers
  PV effect.
• 1923 Albert Einstein receives Nobel Prize for
  theories explaining the photoelectric effect.
• 1954 Bell Laboratories scientists develop first
  PV cells for space applications.
• 1973 PV introduced to replace fossil fuels
  during the oil crisis.
• 1995 US PV industry grosses more than 350M.
• 1996 Amorphous silicon PV panels on market at
  3 per Wp.

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How Solar Cells Work

• Two types of siliconnegative n type (A) and
  positive p type (B)form an electric field.
• Each photon hitting the cell will free exactly
  one electron, e-, which flows toward the load.
• This results in an electric current.

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Types of Solar Technologies

• Crystalline Silicon
• Leading commercial material for PV.
• Requires most semiconductor material.
• Most expensive and efficient (15).
• Thin film
• Semiconductor material only a few microns thick
  much less required.
• Least expensive and efficient (8).
• Films can degrade over time (amorphous).

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PV Costs--2003

• Modules
• 3-5 per peak watt
• Systems
• Installation, inverters, batteries
• Another 3-5 per watt

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Example

• Sharp 185W NT-S5E1U
• Crystalline silicon
• 185 watts per module
• Each module 3 x 5
• 736 per module
• 4 per watt

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Example (contd)

• Marhoefer manor
• 3000 kWh in August 2002
• 5.5 kW peak PV capacity desired
• 30 panels (450 square feet)
• Configurable on southern exposure only
• 15 x 30
• Panel cost 22,000
• Installed system cost 45,000

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Misconceptions About PV

• Myth Solar works well only in hot climates.
• Reality Light, not heat, drives PV too much
  heat degrades performance (explains Arizona)
• Myth Solar panels are extremely expensive.
• Reality The prohibitive cost of PV is not the
  panels, it is the labor and other required
  components (e.g., inverters, batteries).

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Where Does the Sun Shine?
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Where Does the Sun Shine?
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Who Are the Players?

• In 2000, oil companies owned one-third of PV
  manufacturing capacity
• BP Solar
• Siemens Solar (owned by Royal Dutch Shell)

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Who Are the Players?

• Between 1995 and 2000
• Eightfold increase in Japanese production
• Tripling of EU production
• Doubling of US production

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Production Cost Trends
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A Cost Comparison

• The expectation is that sometime between 2010 and
  2015, the per kWh cost of PV will be equivalent
  to coal.

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How Much Does Solar Cost?

• Assumptions
• Unsubsidized
• 6 hours per day dispatchable
• 20-year system life
• 5 percent annual cost of capital
• Doubling domestic manufacturing scale

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A Real Cost Comparison

• Within 5 years, unsubsidized solar costs will be
  less than summer peak rates for residential
  consumers

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The Clean Power Calculator

• Free example at
• http//kyocerasolar.clean-power.com/kyocerasolar/
  default.asp
• The fully customizable version can be found at
• http//www.clean-power.com/cpe/setup/

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Million Solar Roofs Initiative

• Announced June 1997
• Goal is to install solar energy systems on one
  million U.S. buildings by 2010
• DOE focuses efforts on national, state and local
  partnerships.
• Utilities
• Building industry
• Government agencies

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The Solar Decathalon

• Fourteen universities built solar homes on
  National Mall in Washington, D.C. in Fall 2002
• Goal was to prove self-sufficiency.

Winning home by University of Colorado, Boulder
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The Solar/Hydrogen Solution

• Non-dispatchable solar power can be stored in
  hydrogen through electrolysis.
• Then, hydrogen can be run through fuel cell for
  baseload power.
• Efficiencies
• Solar PV 15-20
• Electrolyzer 90
• Fuel cell 45 (excluding thermal)

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The IIT Solar/Hydrogen Project
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The IIT Solar/Hydrogen Project
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Why Does This Matter to Oil Imports?

• Hydrogen is far more expensive to produce than
  gasoline there are no hydrogen mines.
• Producing H2 requires a free source of energy
  (exclusive of capital costs) to be viable.
• Solar and wind are the only two renewables that
  have this potential.

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Energy Life Cycle Facts

• Most vehicle miles are driven in summer solar is
  most productive in summer.
• Most vehicle miles come from residential/consumer
  use solar is much better suited for residential.
• Most peak electricity use occurs in daytime
  solar is productive only during daylight hours.

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Other Renewables

• Wind tends to blow more at night and during
  winter months.
• Provides the perfect complement to solar.
• Solar and wind together can provide adequate
  coverage when either by itself might be
  inadequate.
• Example is Chicago, which has low average wind
  velocity but higher speeds at night and in
  winter.
• Only issue is cost.

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Seasons of the Wind
Winter
Spring
Summer
Fall
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A New Dispatchability Paradigm

• Hydrogen is used as common denominator between
  grid electricity, NG, renewables.
• Solar/wind/fuel cell provides baseload grid
  provides peak.
• Hydrogen produced by either electrolysis or
  natural gas reformation.
• H2 production allows home fueling.
• System saves consumer money even before the
  hydrogen cars arrive.

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Residential Optimization
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Community Optimization

• Networked version of residential
• Single refueling station for a community
• Mid-rise public housing
• New housing developments
• 250kW fuel cell generator
• Use of smart cards to bank energy
  inputs/outputs
• Issue QF for grid or independent transmission?

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Large-scale Corporate Distributed Generation

• Alternative to pure IPPs.
• Large companies develop renewable-based QFs to
  produce hydrogen.
• QF is remote to companys site.
• Company may be active or passive in hydrogen
  refueling site.
• Smart card/debit card/branded credit card
  transactions.
• Insource or outsource the hydrogen fuel
  business.

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National Infrastructure Projects

• National (or Mexican) site incorporating recycled
  solar panels.
• Nevada 80 federal land, prime PV site.
• Mexico Panels for barrels program.
• Mexico expected to be net importer of oil by 2020
  unless major changes occur.
• Prime PV site.
• Use of recycled panels a possiblity.

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How This Could Play Out

• Critical mass of residential refueling stations
  developed in clusters.
• 2-3 million.
• SFHs, new developments and public housing.
• Provides benefits even without H2 cars.
• Automakers get interested.
• Commuter car market.
• Oil companies get interested.
• Clusters need to be networked who better?
• Feeding frenzy develops.

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What Would It Cost?

• Residential (2003)
• Solar panels 30,000
• Micro wind turbines 15,000
• Inverter 10,000
• Electrolyzer 15,000
• Reformer 15,000
• Fuel cell 25,000
• Optimizer 5,000
• Total 115,000
• Value of independence Priceless

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Current Law 100K Tax Deduction

• However,
• 26 U.S.C. 179A (2)(A) provides a 100,000 tax
  deduction for constructing a clean energy
  refueling station.
• Only components covered by the law are for
  holding and dispensing clean fuel.
• Same law that provides 2,000 credit for buying a
  LEV.
• Entire deduction must be taken in one year.
• Property must be depreciable.

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Current Laws and Incentives
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Current Laws and Incentives

• Illinois
• Chicago Million Solar Roofs Partnership
  (Illinois)
• City of Chicago - Green Power Purchasing
  (Illinois)
• Fuel Mix and Emissions Disclosure (Illinois)
• Illinois Clean Energy Community Foundation Grants
  (Illinois)
• Photovoltaic Incentive Program (PIP) (Illinois)
• Renewable Energy Resources Program Rebates
  (Illinois)
• Renewables Portfolio Goal (Illinois)
• Special Assessment for Renewable Energy Systems
  (Illinois)
• State of Illinois - Green Power Purchasing
  (Illinois)

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Current Laws and Incentives

• Federal
• Energy Efficient Mortgage (Federal)
• Energy Star Financing and Mortgages (Federal)
• Job Creation and Worker Assistance Act of 2002 -
  Special Depreciation (Federal)
• Renewable Energy Production Incentive (REPI)
  (Federal)
• Renewable Energy Systems and Energy Efficiency
  Improvements Program (Federal)
• Solar and Geothermal Business Energy Tax Credit
  (Federal)
• Solar, Wind, and Geothermal Modified Accelerated
  Cost Recovery System (MACRS) (Federal)

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Questions?