Solar Power Authority has partnered with Cooler Planet, the leading provider of residential and commercial solar panel installation quotes, to help you estimate the total costs, benefits and payback period for a solar installation on your property.

Here you can find local solar installers and get free installation quotes. Just enter your zip code, project type (residential or commercial), how much electricity you want to offset, your current monthly electricity bill, and the name of your local utility provider:

• Input your zip code to get a free solar quote
• Choose how much of your electricity bill you would like to offset with solar energy
• Identify your utility company and determine net metering options

This tool also provides valuable solar panel installation information for free, including what you need to know about:

• Solar radiance: Solar radiance (insulation) is the amount of solar energy received by a given surface area in a given time period, commonly expressed in kilowatt-hours per square meter per day (kWh/sqm/day). This measurement varies according to the weather and latitude of a given location.
• Average monthly usage: This is the amount of electricity you consume in an average month. It is determined by the solar calculator either by the amount you put in, or approximated by dividing the amount of your electricity bill by the cost-per-kilowatt-hour for your area.
• System size: This approximation tells you what you need for a solar power system to produce enough electricity to offset your annual electricity use. It is determined by taking your average daily electrical use and dividing it by your solar radiance, multiplied by 71%. The 71% factor is necessary to approximate the inherit inefficiencies in solar power systems.
• Roof size: This is the approximate roof size needed with exposure to the sun, in order to accommodate your solar power system. It can be determined by taking the size of the system and dividing that by 10 to get square footage (based on 10 Watts per square foot).
• Estimated solar installation costs: The approximate costs are based on $9 per Watt. This is an average rate, including parts and installation, for systems above 2kW.
• Cost of installing solar panels after rebates and incentives: This is an estimate of costs based on the available solar credits and solar rebates for your geographical area. This includes kWh production incentives for up to 25 years, if available in your region. It also provides an approximation of your local and state incentives.
• Average monthly savings: Calculated for post-installation of solar panels on your house or commercial property.
• 25-year savings: Based on what you save over a 25-year period, assuming a yearly 4% increase in utility rates. You can also calculate a 25-year return on investment (ROI) for installing solar panels, and your break-even point in number of years.

Finally, this free solar panel cost calculator will tell you how many pounds of carbon dioxide (CO2) you are responsible for with your yearly electricity use. The production and release of CO2 from burning coal, gasoline and other fossil fuels is a major contributor to global warming, as you probably know. It will also tell you how many trees you would need to plant to offset your current carbon emissions.

For more ideas information on the cost of installing solar panels:

• How Much Does it Cost to Install Solar on an Average US House?
• Comparison of home solar panel on-grid and off-grid power systems

In the USA, a rule of thumb is that the average house consumes electricity at the rate of 1 kW per hour (kWh). There are about 730 hours in each month, and the average price of a kWh of electricity is $0.10. So an average monthly bill would be around $73 for 730 kWh of electricity.

Of course, this can vary considerably if you have non-standard items such as a hot-tub, or some electrical appliances running continuously. Extended computer use, plasma screen TVs and video games consoles can also make an impact. Your usage will increase significantly in months when you run an air conditioning unit, as well. Finally, the cost of electricity varies widely across the USA, from as low as $0.07/kWh in West Virginia to as much as $0.24/kWh in Hawaii. You’ll have to adjust my guidelines accordingly, because they apply to an average home with average consumption and average electricity costs.

A conservative value to use as a solar panel’s generating capacity is 10 watts/sq. ft. This represents a panel conversion efficiency of about 12%, which is typical. This means that for every kW you generate, you need about 100 sq. ft. of solar panels. If the sun shone 24 hours a day, you could put up 100 sq. ft. of panels and have enough energy to power the average home.

But, as we all know, the sun is available only during daylight hours, and the amount available per day is highly dependent on the extent of cloud cover. Also, the length of each day is dependent on the season. Fortunately, there are resources on the web to help you figure out how many hours per day (on average) you can count on the sun to shine, based on where you live.

The averages across the USA vary from around 3 hours per day in places like Seattle, Chicago, and Pittsburgh, to 5 or 6 hours per day in states like Colorado and California, to a high of 7 hours per day in Arizona. What that means is that the size of the panel array required can vary, anywhere from 400 sq. ft. to 800 sq. ft. (i.e., 4 kW to 8 kW), depending on where you live. You’ll need more panels if you live in a location that gets less sunshine per day, and fewer if you live in a location that gets more.

If your utility company allows you to have net metering — that is, they supply you with a special meter that will spin backwards when you generate more electricity than you use — your annual bill can average out at zero. Because of shorter days in the winter, you’ll likely be a net purchaser of electricity in that season and a net producer in the summer months. A grid-tied system like this is different than off-grid systems used in remote locations with no electrical service; those require batteries, which can significantly increase overall system costs.

At the time of this writing, the installed cost of solar panels was between $7-$9 per watt: A 5 kW system would cost around $25,000-$35,000. Many utility companies offer incentives, and some subsidize as much as 50% of system costs. Even at half the cost, though, a system that generates an average $75 of electricity per month could take a long time to pay for itself.

For example: A system that costs $18,000 has a payback period of about 20 years. The cost of a solar panel today is around $3 per watt, and the extra cost of installation brings costs up to $5- $6 per watt. Note: Installation costs for PV systems include both labor and the electronics needed to tie the solar array into your existing electrical system.

Standard Solar System Components

This brings up an important point: it takes more than a solar panel to get a PV system up and running, though. In fact, there are generally four components in every PV system:

1. Solar panels – captures sun’s energy and converts it to electricity
2. Controller – protects batteries by regulating the flow of electricity
3. Batteries – store electricity for later use
4. Inverter – converts energy stored in a battery to voltage needed to run standard electrical equipment

The entire system is what drives the cost of solar up and equipment like batteries need to be replaced over time.

The good news is that the costs for solar panels are expected to continue to drop, as thin film panels from companies like First Solar, Nanosolar, and AVA Solar become available to the residential market. Right now, though, First Solar is only selling to commercial customers. Nanosolar and AVA Solar have yet to ramp up their production facilities. It will be interesting to see where this all goes in the next year or two, since these companies are talking about very aggressive price targets — in the order of $1-2 per watt — and volumes that are several times today’s total output.

Assuming that installation and auxiliary equipment costs can be reduced to around $1 per watt, then a 5 kW system may cost as little as $10,000, and the payback period would be 10 years, even without subsidies. This makes PV solar installations much more attractive. Of course, all this assumes that electric rates stay constant.

However, they are likely to rise as fuel and other infrastructure costs increase, so payback periods may be even shorter in the future. In the meantime, expect to see more PV solar panels installed on roofs, especially in areas with favorable solar conditions or with higher-than-average electricity rates.

RESEARCH AND DEVELOPMENT

Google’s philanthropy arm, Google.org, launched its Renewable Energy Cheaper than Coal (RE<C) initiative in 2007. RE<C’s mandate was to sponsor research on “breakthrough” renewable technologies and to help lower the costs of renewable energy. Google.org funded companies (such as Brightsource Energy and eSolar) to help them develop concentrating solar power (CSP), a technology that uses sun-tracking mirrors (heliostats) to direct solar energy to a receiver mounted atop “power towers.” The system produces the steam required to spin a turbine to generate electricity. RE<C research focused on reducing the cost of heliostats and the cost and water consumption of CSP systems.

Google ceased operations of RE<C in November of 2011, as new challenges arose which it felt other institutions would be better equipped to deal with. Google is now focusing on financing large projects, something they know a thing or two about.

LARGE-SCALE PROJECTS

Before shutting down RE<C, Google shifted its investment focus from R&D for renewable technologies to implementation. The company now invests in a number of projects totaling 1.7 GW; enough electricity to power over 350,000 homes.

December 2011 – Recurrent Energy | $94 million | Sacramento – This most recent investment will fund the construction of four solar PV projects outside of Sacramento, California. With a total capacity of 88 MW, these power plants will provide enough electricity to power 13,000 homes. The Sacramento Municipal Utility District has agreed to purchase this power under a feed-in tariff program for a period of 20 years.

September 2011 – Clean Power Finance | $75 million | USA – Google is facilitating the solar aspirations of 3,000 homeowners with this investment. Clean Power Finance connects solar installers with investors (in this case, Google) willing to finance homeowners who are interested in a solar PV system. The homeowner gets a free system installed on his or her roof, and pays a monthly rate that’s often less than the cost of energy purchased from the grid. The program’s obvious benefit is that it speeds up solar power adoption, and it also has the capacity to lower costs.

June 2011 – SolarCity | $280 million | USA — In its largest clean-tech investment to date, Google injected $280 million of capital into solar systems provider SolarCity, in an attempt to make residential solar projects more accessible. This funding is expected to open the solar gateway to 8,000 new customers through solar leasing or power purchase agreements. Google pays for the solar system and gets payback from both the homeowner and SolarCity in the form of lease payments. This innovative financing model removes the biggest barrier to solar adoption — initial system purchase.

April 2011 – Brightsource | $168 million | California — As previously mentioned, Google.org funded Brightsource through its RE<C program to conduct research on CSP. Google continued by investing an additional $168 million into Brightsource’s Ivanpah solar power tower project in the Mojave Desert. Once completed in 2013, Ivanpah will generate 392 MW of solar energy, enough to power 140,000 homes in California. According to Google, “This will be the first large-scale power tower project operating efficiently at high temperatures and pressures, demonstrating a critical step for the technology on a path to reliable, low cost, clean power.”

April 2011 – Capital Stage AG | $5 million | Germany — Google chose Germany for its first international clean technology investment. With this deal, they picked up a 49% equity stake from German financial investor Capital Stage AG in the recently-built Brandenburg solar project.  This is one of Germany’s largest solar plants, with a peak capacity of 18.65 MW, or enough to power 5,000 homes.

GOOGLE ENERGY

In December of 2009, Google formed the subsidiary Google Energy and simultaneously requested permission to buy and sell wholesale energy from the USA’s federal government. This initiative gives Google the flexibility to buy high-quality, affordable and renewable energy, so that it can better fulfill its corporate objective of carbon neutrality.

Some feel this move marks the search giant’s entry into the energy business. Google representative Niki Fenwick alluded to the company’s possible intentions in a CNET report.

“We want the ability to buy and sell electricity in case it becomes part of our portfolio.”

Google Energy symbolizes the company’s commitment to a carbon-neutral future. Slapping solar panels onto its rooftops and purchasing renewable energy from suppliers to feed its excess demand is just a small step towards sustainability and long-term profitability. Google has the cash to make massive investments in renewable energy and they’re committed to spending it.

Google has been on the lookout for high-quality, affordable and renewable energy to fuel its power-hungry servers. With the flurry of recent clean-tech investments, Google Energy could become a significant player in the clean energy economy of tomorrow. Whether that is the company’s intentions or not, their significant injection of capital into clean-tech serves as a model for other corporations looking to invest their profits. The speed at which these investments have been happening signals not just a commitment to do something for the environment, but to get to market fast. For Google, the time for a clean-energy revolution is now.

The Solar Energy Industries Association (SEIA) was formed in 1974 to advocate on behalf of its members and educate the public on solar energy’s many benefits. Cleantech Authority interviewed SEIA spokesperson Monique Hanis to get the association’s perspective on some of the current issues facing the solar energy industry.

The Section 1603 Treasury Program is set to expire on December 31, 2011. Your association is fighting to have it extended. How does this program benefit American taxpayers?

This is one of the most effective policies for stimulating jobs and installing clean, renewable energy. It is an alternative way to tap an investment tax credit that is more efficient, but it’s only paid out when energy generation projects are completed. It’s open to a dozen clean energy technologies and does not pick winners or losers.

The 1603 Program has leveraged $23 billion in private sector investment for over 22,000 energy projects covering all 50 US states. It has created tens of thousands of jobs in professions hit hard by the economic downturn — roofers, electricians, plumbers, contractors, and more. It will create 37,000 solar jobs in 2012 alone, if extended.

Solyndra’s bankruptcy generated some pretty big headlines. What’s often lost in the headlines is the details — in this case, the reasons behind the loan guarantees program. Can you explain how this program helps cash-strapped start-ups obtain affordable commercial financing?

The Department of Energy Loan Guarantee Program is particularly critical for utility-scale solar power projects, because it sends a signal to the financial markets that these projects are a solid investment with solid returns. This is the challenge that many fast-growing industries face in financing. No one wants to be the first to invest, but everyone wants to be the next investor after they see success. These are large projects which require significant financing investment over several years to complete construction.

Why is your association promoting the development of a government-run Clean Energy Bank? Government-owned businesses aren’t exactly well-received by the American public. Can you explain how this bank would succeed?

Obtaining financing on reasonable terms is one of the key challenges facing renewable-energy developers. Commercial banks are often reluctant to offer financing to small projects and unfamiliar technologies. Similar to loan guarantees, a Clean Energy Bank would reduce the cost of debt financing for renewable energy projects and send a signal to private capital markets that solar energy projects are a solid investment.

A lot of myths circulate about solar power. In dispelling the myth that solar power only works in sunny states like California, your website states that “more PV was installed on commercial buildings in New Jersey than in California during that quarter [Q2 2011].” How much energy do these solar installations produce when compared to a high-solar area such as California? Are businesses (such as those in New Jersey) putting up solar panels only because they receive subsidies, or would these systems be economically feasible without subsidies?

Solar PV works practically everywhere. Germany, the global leader in solar energy, has the solar resource of Anchorage, Alaska. States like New Jersey have seen the value solar energy brings to their citizens — in terms of energy production, benefits to the grid, etc. — and have crafted policies that open energy markets, so that solar developers are able to compete.

The SolarWorld coalition claims that Chinese solar panel prices are as much as 250% lower than American prices. They’re seeking anti-dumping and anti-subsidy duties to protect the American market. But another coalition of American solar companies takes the opposite stance, saying that duties would hurt the US solar industry and the American economy overall, as they would lead to higher prices, lower demand, and ultimately a loss of jobs. Where does your association stand on this divisive issue?

SEIA is not a party to the USA’s solar antidumping and countervailing duty (AD/CVD) investigation and has remained neutral. Our role is to help educate our diverse membership about the investigatory process and, in particular, the US Department of Commerce and US International Trade Commission proceedings.

Your website mentions that the number of people working in the solar industry doubled since 2009 and last year alone saw a 69% increase. Where do you see solar employment going in the next few years?

Much of the job growth going forward depends on whether the 1603 Program is extended. According to a report by EuPD Research, a one-year extension of 1603 would create 37,000 jobs in the solar industry alone in 2012, and result in an additional 2,000 megawatts of installed solar energy by 2016 — enough to power 400,000 homes.

For anyone else, there are actually several great ways to find and procure free solar panels for your house, mobile home or energy project. All you need is some spare time, a positive personality and a willingness to do a little fix-it work. Once you’ve scored these most expensive components of a solar PV system you’ll have taken one giant step closer to generating your own power.

• Look up solar cell manufacturers online, then call them up and ask if they have any defective panels. If when testing, the manufacturer discovers a panel doesn’t perform up to spec, it will not be sold. In many cases these panels are recycled but sometimes they are given away or discounted at a steep rate with no warranty. Though these panels won’t perform as well as their perfectly-produced counterparts, they will still produce electricity.
• Scan Craigslist, Kijiji, and Freecycle for freebies that people are giving away. While you’re on those sites, put ads up yourself asking for free panels, offering to come pick them up. The same type of people who put panels on their house 10 years ago when solar wasn’t so mainstream are usually the thoughtful, sharing type who will hook you up as they get ready to upgrade!
• Use social media tools such as Facebook, Twitter, and Myspace to let people know that you’re looking for free panels. You never know who people may know and it never hurts to ask.
• Contact government highway departments and road construction companies to see if they have any damaged solar panels that they’re giving away. Panels used to power traffic lights or signs sometimes get hit by drivers and break. If you’re handy with electronics, you might be able to get them working again by soldering the wires back in place. If you do attempt this type of repair be sure to consult an expert and be careful to avoid personal or property injury.
• Look up solar PV system installers and retailers and ask if they have any damaged panels that they are willing to give away for free. Since they sell new panels to customers wanting to replace their old ones, they will often have access to old panels. Propose a trade: you do the work to remove the old panels in exchange for keeping them. You could also barter your other skills. Who knows, they might need their office painted or windows cleaned. It never hurts to ask!

If all your attempts at procuring free solar panels fail or you aren’t able to spend the time and put in the effort to do the work, consider getting a solar PV system installed for free through a Solar Power Purchase Agreement. In these arrangements a solar energy provider such as SunRun installs a system in your home for free. They own the system and sell energy to you at a discounted rate. So one way or another you’ll  make solar happen for your home!

Aside from the most common flooded lead-acid type of battery, a couple of other options exist: gel-cell and sealed absorbent glass mat (AGM). Batteries are often considered the weakest link in a solar PV system since they will wear out quicker than the other parts, reducing the system’s performance. Keep the chain as strong as possible by purchasing the right product and purchasing high quality.

Deciding on a Battery Bank

1. Determine how many watt-hours your system will consume by following “How to Properly Size your Solar PV System.”
2. Decide how many days of stored energy you would like for your system. Ask yourself how important autonomy is to you. Are you fine with being grid-tied? If so, you don’t even need batteries. Are you OK with using a backup fossil fuel energy source or do you want your system to be powered by renewable energy at all times? Are you going off the grid completely or not? Do you want to be prepared for long blackouts? Once finding the answers to those questions decide how many days of storage you need. Most systems are sized for 1 to 5 days of storage capacity.
3. Determine what type of battery is best for your application (see chart below)
4. Since lead-acid batteries typically drop 20 to 25% of their capacity while operating in 30ºF temperatures, plan to house them somewhere warm (ideally between 50 and 85ºF, with 77ºF as the optimal temperature). If you cannot keep them somewhere warm, purchase additional batteries to compensate.
5. Simple is best when deciding on a battery bank. Choose a single series string of cells because there is less that can go wrong than with multiple strings and they are easier to replace when broken.
6. If you foresee yourself expanding your system, buy a larger battery bank than you think you will need since battery banks cannot be easily expanded. Overtaxing your battery bank also leads to a chronic undercharged condition that can cause the batteries to fail prematurely. As a general rule of thumb, aim for 30 to 40% more energy than the load demands.

The Indian government is keen on economic growth. Their current five-year plan projects annual growth of 9% per year. And the population is growing at a quick 1.3% annually — growth that’s not projected to slow any time in the near future. India’s next five-year plan calls for a doubling of infrastructure investment from $500 million to $1 trillion.

Government support will be necessary for solar to compete with conventional power in India since, according to KPMG’s 2011 report “A Rising Sun,” it costs twice as much to produce. But, conventional power costs are rising 4-5% per year whereas solar costs are plummeting 7% per year.

India relies heavily on coal as 71% of its energy needs come from the dirty fossil fuel. To meet energy supply shortages, the nation has been hungrily buying up coal and other fossil fuels from outside the country. It’s a problem the government wants to fix.

So to keep up with economic and population growth while improving the country’s energy security, the federal government has created the National Solar Mission. The project positions solar at the heart of the country’s renewable energy plan. The goal is to install 20GW of solar energy by 2022, making it the country’s number one renewable energy source.

The Indian government’s penchant for red tape has been holding the country back from faster renewable energy growth. The government wants contracts to go to local manufacturers, but in light of rapidly declining solar module costs, Indian firms can’t supply at a low enough cost to compete. A problem that stretches beyond India, as has recently been seen with the Solyndra bankruptcy in the U.S. To do business in India, foreign companies have to hook up with a local partner. Once in the country, they then have to face arduous land usage, pollution control, and other approval processes.

India’s high unemployment and growing industrial and service labor force (more women are entering the workforce and agricultural productivity has been increasing, causing farmers to seek other work) mean increasingly competitive manufacturing, installation, and maintenance costs for solar producers. The National Manufacturing Policy set the ambitious goal of boosting manufacturing’s percentage of GDP from 16% to 25% for an employment increase of 100 million by 2022. The country also launched the National Skill Development Programme to train 500 million people by that same date. As India retools its massive and largely unemployed workforce to handle the kind of jobs the solar power industry needs, the country will have no problems competing in the renewable energy market as long as its government reforms.

The KPMG report marks these next few years as crucial in India’s solar power development. It recommends that the government further improve its support for solar by extending funding to cash-strapped power utilities to handle the higher costs of solar energy, aggressively support private developers in their efforts, and assist banks to better lend money to players in this sector.

With fossil fuels increasing in price and solar decreasing, a country as intent on growth as India with its rich solar potential and hundreds of millions sitting around in the dark, solar power will likely dominate the nation’s energy landscape in years to come. Ernst & Young, in its Renewable Energy Country Attractiveness Indices, ranks India the second most attractive country in the world to invest in solar. Indeed, the vision of a developing nation powering itself with its own renewable resources serves as an inspiration for the whole world.

The solar projects developer is building a 110 megawatt solar plant — the state’s largest — using United Technologies’ Power Towers, a proven concentrating solar power technology that uses tracking mirrors (heliostats) to direct sunlight on a receiver that heats salt to more than 1000 degrees Fahrenheit. The power plant can provide solar power day or night by pumping the stored molten salt to a steam generator.

Nevada’s energy utility, NV Energy has already signed a 25-year agreement to purchase energy from the plant, which will power approximately 75,000 homes at peak operating capacity. Cleantech Authority spoke with Tom Georgis, Senior Vice President of Development at SolarReserve about their Tonopah project.

The Energy department guaranteed $737 million in loans to SolarReserve for your Crescent Dunes Solar Energy Project. How will this project benefit the country?

The project provides numerous benefits to the country in terms of job creation, reduction of harmful greenhouse gas emissions, and the deployment of an American-developed clean technology. The Crescent Dunes Solar Energy Plant is expected to create more than 600 direct jobs over the 30-month construction period, and more than 4,300 direct, indirect, and induced jobs at companies throughout the US that provide engineering, equipment supply, and manufacturing, transportation, and other value-added services.

Given Solyndra’s bankruptcy, American taxpayers are concerned about investing in solar. Is there anything your company is doing differently that will reassure taxpayers that their investment is sound?

The biggest difference between this project investment and Solyndra is that the loan is going to a project that has a 25-year contract with revenue coming from Nevada’s largest utility company, NVE. The Solyndra deal was a direct investment in the company and projected sales of their technology in the market. Our one big sale has already been concluded with the 25-year NVE power contract.

Many feel that government dollars shouldn’t be invested in private industry. Would you have been able to finance this project privately?

It should be noted that the government routinely invests in almost every facet of private industry at some point, including billions of dollars in subsidies to the oil and gas industry. Clean technology and renewable energy benefit from government support in the same way, and helps the US remain competitive with other nations such as China, Germany, and Spain.  Financing the project with commercial debt certainly would have been more challenging. The project also required $260 million in private equity, which was successfully raised.

The DOE guarantees loans to businesses that are expected to turn a profit and repay the loans. When do you envision this project will become profitable?

The loan will be repaid over time with interest per the terms in the DOE loan agreement.

The clean energy race is getting more competitive every day, particularly solar. Will your project help America abroad in any way?

The fact that we are building our first project with this U.S. technology will make it easier for SolarReserve to develop, finance, and build projects internationally — creating markets for exportation of this technology that will result in more green manufacturing, engineering, and development jobs here in the U.S.

Since 2008, solar panel prices have dropped by more than half, but the cost of building a CSP plant stayed about the same. This year, one solar thermal power plant after another have reacted by abandoning steam technology in favor of panels. Your concentrated solar power plant uses steam technology. Though it’s a proven technology, can it generate power at a competitive rate given the falling cost of panels?

The cost of our technology will continue to decline as we build more and more facilities around the world. What differentiates our technology from PV and other solar thermal plants that use direct steam or therminol (trough) is that we use molten salt to collect and store thermal energy. We can then create steam on demand when the utilities need and value it most — operating like a conventional power plant. PV certainly has advantages such as price (for now), but it is an intermittent resource that requires conventional power to back it up when the sun is not shining.

The ability to generate solar power at night is a huge bonus. With the many renewable technologies out there, do you see molten salt technology occupying the nighttime niche in the solar energy market or do you think it will be able to produce power at all times of the day at a rate that’s competitive some years down the road?

On demand generation even at night is a huge advantage for this technology. Peak power in the west often extends well into the evening hours from early afternoon. We can customize how our plant operates to best meet the needs of our customers. Storage also allows us to double the electricity output of our facility in comparison to a similarly sized PV or other solar thermal plant. As fuel prices increase and the costs of integrating intermittent resources climb, we are confident we will be able to compete on price in the near future.

Doug McClenahan of Natural Resources Canada, a federal department of the Government of Canada, used his decades of experience working with solar and other clean technologies to initiate the Drake Landing Solar Community, a master planned neighborhood of 52 homes just outside of Calgary, Alberta. The community is the first of its kind to use high fraction borehole thermal energy storage (BTES), a technology that stores solar power in the ground to save it for winter space heating use. Despite sub-zero temperatures, Drake Landing’s innovative heating system delivers 90% of every home’s space heating needs throughout the year using solar energy.

Drake Landing recently took home this year’s Energy Globe World award for its innovative technology and successful performance. Cleantech Authority spoke with McClenahan about the project and future implementations of this technology.

How does your BTES technology work?

The concept is fairly simple. It collects solar energy during the summertime and stores it in the soil through a system of boreholes, which is just like a giant heat exchanger in the ground to get the heat into the soil. We then recover that heat when we need it, such as when there isn’t a lot of solar radiation in the winter and there’s a lot of heat load.

Can this technology warm homes throughout the cold Canadian winter?

It’s designed to provide an average of approximately 92% of the heat demand from solar. It takes a number of years to build up to that steady state performance. So now that we’re in year five, we’re just approaching that right now. Last year we were 86% solar fraction. The year before that we were 80%. So we hope this year, unless it’s a really strange weather year, to be up around 90%.

After December 21^st we get more and more daylight hours and by February we can even get days when the system can be recharged a little bit. Then by March and April, you’re home free.

When you get really cold days of -40 degrees Celsius do you need to use the backup gas boiler or can your system handle it?

It depends on the time of year. We can handle it early on if it was a really cold November or December. If we get -40 in January or February the boiler would likely have to come on at that point because our soil temperature would probably have reduced. Fortunately, those really cold periods don’t last that long. It’s a small percentage of time in the year that you’re at the really cold temperatures — maybe 5% or something like that — even though it represents a large part of the heating load. So far this year we’ve experienced -20s and there was no problem providing 100% solar heat at those temperatures.

What have residents’ reviews been like?

Excellent. All their comments have been very positive. They’re like-minded people wanting to live in a community like that. They’re very much environmentally conscious and want to bring their kids up in that environment. They have their street parties and have musicians come in. They love it out there.

Is Drake Landing meeting the 5 tonnes per home annual decrease in greenhouse gas emissions target?

Yes. That’s based on a combination of energy efficiency plus solar contribution. And that’s the contribution at the 90% solar fraction level or slightly higher at year 5, year 6, which is what we’re getting into right now. So, the system has been performing as expected so far.

Have any of the homes been resold yet? Do these homes have a higher resale value than conventional homes?

Yes, there have been a number resold. There’s anecdotal evidence that there is a premium. When they were sold they started out at around $230,000 each. They now sell for twice that.

I think we had about 10 families for every home on a waiting list back then. We had people moving from different parts of the country. A couple even moved from the U.S. just to live in the community. So it attracted a lot of attention and since that time I’ve had calls from a number of people wondering when the next community like this is going to be built.

When is the next community going to be built?

We’re keen on moving to the next step. For us the next step is looking at a larger scale community. Drake Landing was considered a technical demonstration. It was never considered to be economic at that scale because it’s too small. The borehole storage is quite small and the efficiency is fairly low, but we knew that we wanted to use Drake Landing as a means to verify the computer models and predicting the performance. Then we would take those models to design a much larger community.

We’re in the process of doing that now as we’re looking at a number of possible new solar communities in Alberta or even Whitehorse in the Yukon. Because of this project’s publicity a lot of communities across Canada have expressed interest for some of their new developments to introduce this new concept. A proposal came in to our department to build a larger scale one and we’ll see whether that gets accepted in the next few months.

DLSC was a project conceived by Natural Resources Canada. Most people don’t think of a government department initiating a project such as this. How did it come about?

It wasn’t something that happened on the spur of the moment. My first job was working at the University of Toronto with Prof. Frank Cooper, considered one of Canada’s pioneers in solar energy. One of the concepts that he was really interested in exploring was solar seasonal storage. I started working with him when he was on contract with the U.S. Department of Energy to model and do research in the area back in the late 70s, early 80s. And that’s where I got my inspiration and learned about the potential for this concept in Canada.

When that work wound up I eventually moved to Ottawa to manage a solar thermal research program in 1986. During that period I was always looking for an opportunity to build a project like this, having had some background already in it. However, there needed to be a number of components in place before such a project could be proposed. We needed solar companies that could supply good quality collectors, a utility that would be willing to own and operate such a system, good computer models for predicting the performance of heat in underground storage, and funding programs that would assist the project.

We did a lot of work on other applications at Natural Resources Canada to go after the low hanging fruit, but by the early 2000s we started looking into space heating and what we can do in Canada. That’s when I promoted the concept of seasonal storage.

How did you implement the project?

First we needed a developer, a builder, a utility, and a municipality. Then we put together a number of federal, provincial, and other funding partners. Since the private sector had no experience with this concept, we funded the extra costs for the solar and storage, thus removing the financial risk associated with the project.

Since we were using quite accurate simulation tools, we were able to convince them that you could displace almost all of the space heating with solar using seasonal storage. One of the first steps our team took was to do a study tour in Europe of similar projects that were at a lower solar fraction. During that tour we consolidated the main concept and design ideas. That was a great start. From there we went to the detailed design phase and then ultimately to the construction. 

Why has it taken so long to implement another project?

The main thing is cost. Especially in Canada we have very low cost energy. Even when putting insulation in homes it’s hard to get a payback. Until energy prices really go up quite a bit higher than what they are, it’s going to be difficult for utilities to fund a project such as this on their own and do it as a business case.

The next step is to get the cost down by going to a larger scale project. We just finished a round of performance and cost estimations for the larger scale project and it looks like the cost can be reduced anywhere from 35 to 50% compared to the original Drake Landing. But, it’s still in an area with low cost conventional natural gas. So, we’re looking at other areas in Canada where heating energy costs are higher, such as Whitehorse. They don’t have natural gas and they use oil for their heating, which is six times the cost of natural gas in Alberta.

Also, a lot of people are waiting to make sure this first system performs well. All the messages we’ve been putting out so far have been yes, everything is on track. We’re looking good for the over 90% solar fraction that we said. But you can imagine that people were waiting to see that type of information come out before they look more closely at it themselves.

What does the future look like for this technology?

The country that’s really taking off in large scale solar district heating — with and without seasonal storage — right now is Denmark. The number of systems going in has just risen exponentially and it is related to the price of energy. Their taxes appear to be higher than other countries to the point where solar is competitive. So, those systems are going in without subsidy, which is interesting. All the previous systems in Sweden, in Germany, even this one in Canada required subsidies because the cost of natural gas or other heating forms were much lower. Really, Denmark is an example of what we’re going to see in the future when the price of energy increases and solar is competitive.

“Since 2008, the price of photovoltaic (PV) solar modules has fallen by more than half,” GTM research analyst Brett Prior told Reuters, “whereas the cost of building a CSP plant is about the same today as it was three years ago.” That has caused one solar power plant after another to make the switch from CSP to solar panels. Just this year, four projects in California, which represent approximately 1,850 megawatts of solar power generation, have made the switch.

According to Prior, CSP generates power at 15-16¢ per kwh, whereas PV produces at 12-13¢, with further declines foreseeable. Since a PV plant costs less to build, less to maintain, produces more, and is easier to finance (banks trust PV because it has a long track record) one might wonder whether CSP is on its way out?

CSP technology comes in many forms for many applications. “Power towers” use mirrors to direct sunlight towards a tower that produces steam for generating electricity. Setting up this technology sometimes proves difficult because it means razing large tracts of land; a particular problem in environmentally-sensitive areas. Solar Millennium is one company facing this difficulty. They’re considering redesigning their project in Kern County because the California Energy Commission wouldn’t approve it, due to concern about its impact on native species. In cases like this, PV would likely get the nod because of its flexibility in site-locating a project.

Thermata, a start-up funded by Bill Gross’ Idealab, has developed an innovative technology that generates steam for industrial processes used in paper mills and chemical plants. According to their research, approximately 17% of all industrial energy is used to power industrial boilers. With a product that can produce steam for less expense than natural gas, and is easier and cheaper to install than other CSP systems, the start-up hopes to grab a share of this huge market.

Hybrid-technology concentrated photovoltaic (CPV) looks so promising that some think it may become the first PV technology to achieve cost parity with fossil fuels. It works by concentrating light (via mirrors) onto solar panels, requiring 1/10 as many panels to do the job.

Despite solar PV’s improving cost competitiveness, CSP technology still has room to grow. Using fluids rather than panels, CSP technology is able to generate electricity cheaply. It can make use of existing thermal power plant infrastructure and use fossil-fuel backup systems for better reliability. Finally, it can generate both heat and power, using a technology called integrated solar combined cycle.

If the power plant sector fails, CSP can still be used for other applications, such as industrial processing. When any market takes a nosedive, those players who are able to diversify survive and thrive. The internal competition between competing solar technologies will only lead to the improvement of both, making them all the more competitive against the biggest competition — fossil fuels.