Photovoltaics vs. Solar Water Heating

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Photovoltaics vs. Solar Water Heating

• Creating Individual Incentives for Green Energy

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The Question

• Should States emphasize photovoltaics or solar
  hot water heating systems when implementing
  subsidies for
• solar energy?
• We will use California as our test case.

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Why should we care?

• Solar-power systems are currently available.
• Solar can be both generated and used on an
  individual level.
• A large majority of solar hot water heaters are
  run on natural gas.
• Distributed energy production creates a buffer
  against market fluctuations or disruptions in
  fossil fuel supply.

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WHAT WEVE FOUND
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Photovoltaics
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U.S. Department of Energy's Photovoltaics Program
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Solar Hot Water heaters
Flat-plate collector, Pomona Valley, CA, 1911
Source Perlin, 2005.
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Solar Hot Water Systems
Solar heat collection Flat plate collector
Heating water Direct Circulation System
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Current Market Penetration

• 0.2 MW of Photovoltaic Modules
• and
• 8,500 Solar Hot Water Heaters
• sold for domestic use every year

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Federal Incentives

• Energy Act of 2005
• 30 of system cost, up to 2000
• Same for Solar Hot Water Heating and Photovoltaic
  systems
• Expires December 31, 2008
• Solar America Initiative

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State Incentives

• Typically cover around 30 of cost
• Range from 800 - 46,500 maximum rebate
• Differ on requirements for net-metering
• CALIFORNIA
• Residential and commercial customers will receive
  incentives of 2.50 per watt up for PV
  installations of up to 1 megawatt in size.
• Similar incentives for Solar Hot Water Systems.

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CBA Solar Hot Water
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CBA Photovoltaic Modules
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Findings

• Current Federal and State incentives completely
  cover the individuals net costs for Solar Hot
  Water Heaters
• Photovoltaic systems are not completely covered.
• Economies of Scale Research and Development are
  the two most important factors in developing the
  solar market