Germanys Solar Program

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Germanys Solar Program

• Sean Larson
• ECE 510

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PV vs. CS
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Germany
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Important German Icons
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Germanys Goal

• Increase electrical energy generation from
  renewable sources to 12.5 by 2010
• And, increase electrical energy generation from
  renewable sources to 20 by 2020

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The Sustainable Energy Act

• Priority connection
• Priority purchase
• Guaranteed purchase price
• Purchase price is set for 20 years
• Burden of compatibility on the transmission
  provider

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Effects of the act on Solar

• Between 2000 and 2004 solar generation capacity
  increased by 900
• Capacity for wind doubled
• Cost of installing solar decreased by 25
• Cost of installing wind turbines decreased by 30

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Guaranteed Price

• Hydroelectric at least 9.7 cents per kilowatt
  hour
• Wind energy at least 5.5 cents per kilowatt hour
• Solar energy at least 45.7 cents per kilowatt
  hour, and as high as 57.4 cents per kilowatt hour

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REA 2004 revision

• Requires generators to be able to be controlled
  in case of system over load

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PV manufacturing Capabilities

• In 2003 two thirds of the PV panels installed in
  Germany were imported

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40 MW PV Generation Park
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40 MW PV Generation Park

• Expected Completion 2009
• 171 Million Dollar Cost
• Size of 200 Soccer Fields
• Largest Plant now is 12 MW

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Nuremberg Soccer Stadium
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Interesting Fact

• 2006 Half of the electric energy in the world
  produced by solar, was produced in Germany
  Washington Post

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Incentives for installing PV U.S. vs. Germany
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Quick recap of Germanys policies

• Guaranteed sale price per kWhr
• Sale price guaranteed for 20 years
• The burden of compatibility with the grid is
  placed on the transmission provider
• The transmission provider is required to buy
  energy from renewable sources before buying
  energy from non-renewable alternatives

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Incentives provided by the U.S.

• No guaranteed sale price per kWhr
• The burden of compatibility with the grid is
  placed on the owner of the PV system
• The transmission provider is NOT required to buy
  energy from renewable sources before buying
  energy from non-renewable alternatives

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Incentives provided by the U.S. cont.

• The U.S. does provide tax incentives for PV
  installations, and a fast depreciation schedule
• The U.S. also provides some grants for PV
  installation

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Deregulated energy market in the U.S.

• Most energy laws and requirements are on a state
  by state basis
• The states provide most of the incentives for
  installing PV

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1999 energy restructuring law

• The electric company has to collect a public
  purpose charge of 3 from its retail customers
• Residential customers are exempt
• Retail customers can be exempt if they use, on
  average, more than 1 MW

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1999 energy restructuring law cont.

• 63 will be used for new cost-effective
  conservation
• 19 will be used for new renewable energy
  resources

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Definitions

• New renewable resources
• Solar
• Wind
• Hydro
• Etc.
• Cost-effective conservation is not defined in the
  document

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1999 energy restructuring law cont.

• Utilities are required to give residential
  customers the option to support new renewable
  energy resources, by supplying them with several
  rate options

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DSIRE

• http//www.dsireusa.org/
• DSIRE Database of State Incentives for
  Renewables and Efficiency

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Example of an Oregon state incentive

• ORS 307.175 states that the added value to any
  property from the installation of a qualifying
  renewable energy system may not be included in
  the assessment of the propertys value for
  property tax purposes. Qualifying renewables
  include solar, geothermal, wind, water, fuel cell
  or methane gas systems for the purpose of
  heating, cooling or generating electricity. This
  exemption is intended for end users and does not
  apply to property owned by anyone directly or
  indirectly involved in the energy industry.  

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The Energy Trust of Oregon

• http//www.energytrust.org/
• Non-profit organization that provide incentives
  for renewable energy installations and energy
  efficiency
• Provide reduced cost installations for homeowners
  and businesses, by selling the green tags (carbon
  credits)

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Energy Trust incentive for business customers

• The business owns the green tags for the first 2
  years, then the energy trust owns the tags for
  the next 18 years
• The business can recover 50 of the installation
  cost over 5 years through tax state tax
  deductions
• The state of Oregon provides a 5 year
  depreciation schedule

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Third party ownership

• The Energy Trust also helps to facilitate third
  party ownership
• Third party ownership an LLC that is created
  between owner of the PV location and a company
  that can utilize the tax incentives and green
  tags

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Homeowners

• Homeowners receive fewer incentives to install PV
  than business owners
• Incentives come from the local utility and
  federal and state tax credits

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The largest PV system in western Oregon

• 4 kW PV installation on the roof of the Nature
  Conservancy office
• Funded by PGE-Enron
• Produces enough power to supply an average
  houses NON-heating energy

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PV on grid stability

• Most of the concern about grid stability, is
  about rural or other already weak grids
• Specifically in locations with a mild climate
  where short breaks in the clouds can cause
  periods of high voltage

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PV on grid stability cont.

• Studies that have been done have shown that areas
  with a high penetration of PV do not suffer much
  from short periods of high sun exposure
• In areas with high sun exposure, the peak sun
  corresponds with peak load because of air
  conditioners