It Don t Mean a Thing Without Good Marketing!! Marketing Solar for Agricultural Uses

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1 It Don t Mean a Thing Without Good Marketing!! Marketing Solar for Agricultural Uses

2 MY AGENDA Survey of agricultural uses Economics case studies Marketing solar in Minnesota 2

3 Energy Harvest Group Solar thermal for agriculture Distributed energy storage Urban Solar Farm for Peak Power 3

4 Industrial process heat Agriculture Commercial hot water Domestic hot water Not space-heating!! 4

5 Monthly DHW Load 5

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7 Stock watering Electric fencing Emergency power Electric grid support 7

8 The Two Sides of Solar Reduces Demand Produces Energy 8

9 Solar Thermal vs. PV comparison Solar Thermal is my first choice! Solar Thermal 50 75% Efficient Photovoltaics 17-23% Efficient

10 Reliability 4.6 Megawatt AZ Solar Electric Plant Online since 2002 Availability 99.72% No onsite staff Remotely monitored Annual maintenance cost 0.16% of installed cost

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12 The Guts of a System

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14 Intention planning Structural engineering first!! Keeping it in the budget Incentives & Financing tools Preparation for Phase II Streamline the GANTT chart 14

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16 Solar Energy is variable Primary Fossil Fuel is stored Backup Solar Energy is our Paycheck Fossil Fuel our Savings Account 16

17 Stock Watering 17

18 PV Tracker 18

19 Wool-drying 19

20 Bavarian Farmhouse 20

21 Utilize the Roof space!! 21

22 Lumber Drying BARN VENTILATION 22

23 Residential SDHW & PV 23

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26 Weekday Water Usage Single Family Home Apartment Building Hot water usage 12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM Time of Day 26

27 8 each 4 X 10 collectors and racks $18,000 Hardware & plumbing $ 3,000 2 each 120-gallon storage tanks $ 2,500 Heating plant tie-in $ 3,000 Engineering & Labor $ 6,000 Total $32,500

28 Solar Energy Fossil Fuel High front-end cost Long life of product Low maintenance No fuel costs! Low front-end cost Shorter life Higher maintenance Consumes fuel Replacement cost!

29 simple payback = Front-end cost Yearly savings but consider: energy price inflation incentives depreciation

30 Assumptions (Inputs) Annual Cash Flow Model Total Installed Cost ($): $32,500 Allocation to Business (%): 100 Year Net O&M Net Net Loan Annual Total Annual Therms Saved: 800 Energy Costs Depreciat. Payments Cash Flow Cash Flow Price/ therm ($) $ ($17,718) ($17,718) Energy Inflation Rate (%): 7 Loan Down payment (%): $800 $0 $2,383 $0 $3,183 ($14,535) Down Payment ($): $32,500 2 $856 $0 $1,430 $0 $2,286 ($12,249) Amount of Loan ($): $0 3 $916 $0 $858 $0 $1,774 ($10,475) Interest Rate (%): 4 4 $980 ($250) $858 $0 $1,588 ($8,887) Loan Term (Years): 5 5 $1,049 $0 $429 $0 $1,478 ($7,409) Month Installed: 0 6 $1,122 $0 $0 $0 $1,122 ($6,287) Net Federal Tax Rate (%): 30 7 $1,201 $0 $0 $0 $1,201 ($5,087) Net State Tax Rate (%): 8 8 $1,285 ($270) $0 $0 $1,015 ($4,072) O & M Cost ($/therm): $ $1,375 $0 $0 $0 $1,375 ($2,698) O & M Inflation Rate (%): 2 10 $1,471 $0 $0 $0 $1,471 ($1,227) Utility Rebate (%): $1,574 $0 $0 $0 $1,574 $347 State Tax Credit (%): 0 12 $1,684 ($1,300) $0 $0 $384 $731 Federal Tax Credit (%): $1,802 $0 $0 $0 $1,802 $2,533 Basis for Depreciation $19, $1,928 $0 $0 $0 $1,928 $4, $2,063 $0 $0 $0 $2,063 $6,523

31 Assumptions (Inputs) Total Installed Cost ($): $30,000 Financed Cash Flow Allocation to Business (%): 100 Year Net O&M Net Annual Therms Saved: 850 Energy Cost Deprec. Net Loan Annual Total Payme nts Cash Flow Cash Flow Price/ therm: $ ($2,079) ($2,079) Energy Inflation Rate (%): 7 Loan Downpayment (%): 25 1 $850 $0 $2,554 ($4,826) ($1,423) ($3,502) Down Payment: $7,500 2 $910 $0 $1,532 ($4,826) ($2,385) ($5,886) Amount of Loan: $22,500 3 $973 $0 $919 ($4,826) ($2,934) ($8,820) Interest Rate (%): 4 4 $1,041 ($250) $919 ($4,826) ($3,116) ($11,936) Loan Term (Years): 5 5 $1,114 $0 $460 $0 $1,574 ($10,362) Month Installed: 0 6 $1,192 $0 $0 $0 $1,192 ($9,170) Net Federal Tax Rate (%): 30 7 $1,276 $0 $0 $0 $1,276 ($7,894) Net State Tax Rate (%): 8 8 $1,365 ($270) $0 $0 $1,095 ($6,799) O & M Cost ($/therm): $ $1,460 $0 $0 $0 $1,460 ($5,339) O & M Inflation Rate (%): 2 10 $1,563 $0 $0 $0 $1,563 ($3,776) USDA & Utility Rebates (%): $1,672 $0 $0 $0 $1,672 ($2,104) State Tax Credit (%): 0 12 $1,789 ($1,300) $0 $0 $489 ($1,615) Federal Tax Credit (%): $1,914 $0 $0 $0 $1,914 $300 Basis for Depreciation $21, $2,048 $0 $0 $0 $2,048 $2, $2,192 $0 $0 $0 $2,192 $4,540 31

32 Space Heat and SDHW

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35 Solar Thermal 1200 SF 26 4x10 panels Contractor $ 50,000 Hardware & plumbing $ 3, gallon storage tank $ 2,000 DHW and Furnace tie-in $ 3,000 Admin & Engineering $ 4,000 Labor $10,000 Total $72,000

36 Large Commercial System

37 Commercial Grid Tie 200 each, 200 watt collectors and racks and blocks $ 235,000 Hardware & wiring parts $ 25,000 Inverters $ 20,000 Crew & Electrician Labor $ 60,000 Engineering & crane $ 10,000 Total $ 350,000 37

38 Price of Solar Electricity Amortized Cost = Total cost Total production Over 25 years = $350,000 1,300,000 kwh Raw Cost = 27 /kwh Subsidized Cost = 13 /kwh

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41 Product or service Local manufacturing!! Market research Look for Opportunities Improve the economics Government support Utility support 41

42 Solar Skies MFG is the Midwest s Leading manufacturer of Solar Thermal Collectors Solar Skies is located in West Central MN in the town of Starbuck.

43 Farmers & ranchers Food industry Animal handlers Bankers HVAC contractors Electrical contractors 43

44 Build awareness RE on Schools Contractor training Minimize risk for banks Local expertise Build business models Create green jobs Local vs. International 44

45 Contact Us At: Minnesota Renewable Energy Society th Avenue South Minneapolis, MN Phone: (612) General Info Website:

46 Ralph Jacobson 46