Renewable Energy Consulting – PPA Partners, LLC

PPA Partners is first and foremost your renewable energy information source

Energy Solutions

Photovoltaic (Solar or PV) Systems

Posted by PPA Partners On February - 28 - 2010ADD COMMENTS

Solar cells convert sunlight directly into electricity. Solar cells are made of semiconducting materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. This process of converting light (photons) to electricity (voltage) is called the photovoltaic (PV) effect.

The performance of a solar cell is measured in terms of its efficiency at turning sunlight into electricity. Only sunlight of certain energies will work efficiently to create electricity, and much of it is reflected or absorbed by the material that makes up the cell and panel. Because of this, a typical commercial solar cell has an efficiency of 15%-about one-sixth of the sunlight striking the cell generates electricity. Low efficiencies mean that larger arrays are needed, and that means higher cost. Improving solar cell efficiencies while holding down the cost per cell is an important goal of the PV industry, NREL researchers, and other U.S. Department of Energy laboratories, and they have made significant progress. The first solar cells, built in the 1950s, had efficiencies of less than 4%.

Solar cells are typically combined into modules that hold about 40 to 72 cells; a number of these modules are mounted in arrays that can measure up to several meters on a side. These flat-plate PV arrays can be mounted at a fixed angle facing south, or they can be mounted on a tracking device that follows the sun, allowing them to capture the most sunlight over the course of a day. Several connected PV arrays can provide enough power for a household; for large electric utility or industrial applications, hundreds of arrays can be interconnected to form a single, large system.

Thin film solar cells use layers of semiconductor materials only a few micrometers thick. Thin film technology has made it possible for solar cells to now double as rooftop shingles, roof tiles, building facades, or the glazing for skylights or atriums. The solar cell version of items such as shingles offer the same protection and durability as ordinary asphalt shingles.

Some solar cells are designed to operate with concentrated sunlight. These cells are built into concentrating collectors that use a lens to focus the sunlight onto the cells. This approach has both advantages and disadvantages compared with flat-plate PV arrays. The main idea is to use very little of the expensive semiconducting PV material while collecting as much sunlight as possible. But because the lenses must be pointed at the sun, the use of concentrating collectors is limited to the sunniest parts of the country. Some concentrating collectors are designed to be mounted on simple tracking devices, but most require sophisticated tracking devices, which further limit their use to electric utilities, industries, and large buildings.

A Simple Case Study

Posted by PPA Partners On February - 28 - 20101 COMMENT

A Power Purchase Agreement is a financing mechanism that has been in use for a number of years by Utilities and by large Industrial and Commercial Power Users.

There are normally no up front costs, to have the system “placed” at your facility.

So you can have Solar, Co-Generation, Fuel Cells and other technologies and have immediate savings with no Capital costs.

Terms are 10 to 20 years+, with better start rates and lower annual increases the longer the contract.

Rates are typically 5-20% below current utility rates with normally a nominal 2%+ yearly increase as opposed to utility published increases of 6.7% annually over the last 20 years.

Sites need to be appropriate for the application.

REC’s and tax benefits are retained by the PPA funding group.

Billing is monthly or quarterly.

Clients need to fill out a full 1003 form (standard loan form)

Client needs to provide 2 years tax returns, 3 trade references, 1 year’s bank statements, and the current years P and L.

Time line from the receipt of the application and additional documents is normally 7-10 business days for determination.

After a positive evaluation of the property and acceptance of the terms and conditions by the client. Typically 30 business days are required to arrange funds, etc.

Minimum size is 50 kW; Maximum is typically 1 MW, dependent upon the technology.

There are substantial penalties for early termination.

As an example we will look at a solar PPA since it is not as complex in analysis.

An industrial user who chooses to have a 1 MW solar generation facility placed on his roof. His current Utility kWh rate is $0.147; we will look at a 5 year cycle of a PPA with normal characteristics. Irradiation allows a 5 hr per day average over the course of the year. Obviously with longer terms, there are better savings, but in this 5 year view of a 10 year contract the argument is compelling.

Start Rate10 year Term @ 10% Initial Reduction and 3% Annual EscalationUtility Rate with 6.7% IncreasesSavingsYear
$.147$.1323$.147$26,8271
$.1362$.156$36,1352
$.1402$.166$47,0853
$.1444$.177$59,4954
$.1487$.188$74,8255
5 Year Savings$244,367

How We Help

Posted by PPA Partners On February - 28 - 2010ADD COMMENTS

PPA Partners is first and foremost your renewable energy information source.

Sifting through the hype, the conflicting information, and the sales pitches can be difficult for anyone. Our staff of industry experts is here to help you evaluate the technologies currently available to you in the marketplace,  serving as your personal renewable energy advisers giving you factual information regarding the benefits and potential drawbacks of each technology. From there we determine the options for your project and present you with the various scenarios that fit your site spatially, financially, and that achieve your desired result.

We can at your request take it even further, generating and issuing RFP’s, interviewing contractors, bid analysis, and even providing project management from the permitting phase through final construction and commissioning.

We are above all here to help you implement an energy generation strategy that will carry your project or company forward conserving resources and finances in the most sustainable position possible.