Sustainable Energy Innovation

1
Sustainable Energy Innovation

• A New Era in Solar
• Dominic Drenen Manager Solar Energy Systems

2
Renewable Energy

• As an organisation Origin Energy has a strong
  commitment to Clean Energy Solutions
• We operate businesses providing/supplying the
  following
• Environmental Refrigerants
• Cogeneration
• Wind power
• Natural Gas for Vehicles
• Geoexchange
• Energy efficiency consulting

3
Sustainable Energy Innovation
Proudly sponsored by Origin Energy
4
Origin Energy and Solar

• From a distributed power perspective, solar is
  the leading option.
• Research and Development
• ANU solar module development with objectives of
  increased efficiency and reduced cost. Total
  investment in approx. 4 million to date, pilot
  plant early 2003.
• AES grid connect inverter objective of reduced
  cost. Total investment approx. 2.5 million,
  prototypes being developed bench testing/field
  testing 3rd quarter 2002.
• In advance of having access to our own technology
  we have entered the retail market as a provider
  of grid connected solar systems.

5
Consumer preference is clearly biased towards
clean and green

Strongly Support
Support
Hydro
Solar
Natural Gas
Landfill Gas
Wind
GeoTherm
Oppose
Forest Waste
Nuclear
Coal
Source SMUD Sacramento Municipal Utility
District, March 1997
6
Origin Energys Solar Offer

• Offer a comprehensive range of sizes (450 watt
  plus).
• Facilitate the completion of all documentation
  for the customer.
• Competitive buy back rate for electricity
  exported back to the grid (28c/kWh).
• Free consultation and energy advice.
• Competitive pricing through Origin Energy's
  buying power.
• Access to approved Australian Greenhouse Office
  installers.
• Extended warranty (panels have a 20 year warranty
  and an expected useful life of 30 years).
• More than 140 years of experience in the energy
  business.

7
What are the costs?

• Installed prices for solar systems in Australia
  are currently running at 16/watt.
• The AGO PVRP provides a rebate of 5/watt, giving
  the customer an effective price of 11/watt.

Return on investment for a 1500 watt
system Capital cost 14,000 Return 2,200kWh
14c/kWh 308 ROI 308/14,000 2 (tax free!)
8
Solar Installation
9
The price of silicon has only slightly decreased
in the last decade
This is expected because PV uses waste from
semiconductor production (PV uses 10 of total)
and therefore cumulative volume much larger and
annual cost reduction smaller
All prices in US2002 Source Silicon study by
Walarian Kipiniak
10
Approved Applications by StateUp to Jan 2000 Oct
2001
11
Current Market size

• Up to January 2002 the total number of installed
  grid connected solar units across Australia was
  900.
• The average installation size is 1kW and
  therefore the annual national grid connect solar
  contribution is estimated at 1.5 GWh.

12
Market Segments

• Two distinct market segments
• Retrofit (installing a solar energy system on an
  existing house), customers reached through
• Yellow Pages, mail outs, advertorials, web page,
  trade shows, bill inserts, Origin Energy shops.
• Range of businesses servicing this market
  including Origin Energy.
• New Homes, (installing a specific solar package
  incorporated into the house design), customers
  reached trough
• Major developers, architects, eco developers,
  councils.
• No supplier servicing this market.

13
Developer Package

• Origin Energy has developed a 450 watt grid
  connect solar system specifically for new home
  builders.
• After rebate installed price of just over 3,000
  or 6.70/watt.
• Can get to this price through a combination of
• Scale multiple sales to one customer.
• System installation during construction.
• Significantly easier approval process reduces
  cost.

14
Developer Package

• The following developers are now beginning to
  offer an Origin Energy solar system option to
  their customers
• Australand Homes
• Henley Homes
• Metricon Homes
• Origin Energy is confident that the uptake by
  developers of this streamlined solar energy
  package will result in a quantum increase in
  solar installations, heralding a new era in
  Solar.