Going Solar: How your Faith Community FITs in! 2 Thank you to our funding partner 3 Agenda Greening Sacred Spaces Renewable Energy Options Solar Overview Financing Options Incentives & Rebates Green Energy Act MicroFIT Program MicroFIT Process FAQs 4 Greening Sacred Spaces Greening Sacred Spaces (GSS) is a practical program developed by Faith & the Common Good to assist faith communities in taking concrete actions to create a more sustainable and energy efficient place of worship and to educate members of the community about ecological issues. Our latest initiative, Renewable Energy Revival for Faith Communities (RERFC) engages diverse faith communities and their key decision makers across Ontario in a year-long revival of renewable energy development. RERFC builds on our Solar Faith Initiative work over the last three years through developing resources and tools to assist faith groups in going solar. RERFC will further increase knowledge and raise awareness about the role faith communities of all backgrounds are playing in contributing to a clean energy future. 5 Renewable Energy Renewable energy is any energy that comes from naturally replenished resources such as sunlight, wind, rain, tides, flowing water and geothermal heat. Renewable energy options for Faith Communities come in the form of solar panels, wind turbines, geothermal heating systems and potentially hydro turbines. All renewable energy projects (with the exception of geothermal heating) are eligible for the Ontario governments FIT and microFIT program, where premium $$ are paid for energy produced by these systems. Although solar power is generally more suitable for both urban and rural faith communities, it is important to consider that there are other renewable energy options out there. 6 Wind Turbines A wind turbine is a device that converts kinetic energy from the wind into mechanical energy. Both small and large scale wind projects are eligible to be paid 11.5 cents per kWh through the Ontario governments FIT and MicroFIT programs. Geothermal Heating A geothermal heat pump is a central heating and/or cooling system that pumps heat to or from the ground. It uses the earth as a heat source (in the winter) or a heat sink (in the summer). Although not eligible for the FIT program, geothermal heating systems receive a large rebate from the governments ecoEnergy program. 7 Hydro Power Power that is derived from the force or energy of moving water, which may be harnessed for useful purposes. Energy produced from hydro power is eligible to receive 13.1 cents per kWh through the FIT and MicroFIT programs. Biogas Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Organic waste such as dead plant and animal material, animal dung, and kitchen waste can be converted into a gaseous fuel called biogas. Energy produced from biogas is eligible to receive up to 16 cents per kWh through the FIT and MicroFIT programs. 8 Going Solar for Faith Communities There are two main areas of focus: -Community Members (homes and offices) -Faith Buildings There are two main solar technologies -Solar Hot Water -Solar Photovoltaic (PV) 9 Energy Efficiency – the first step! 10 Why invest in solar? Helping the Environment: use of fossil fuels GHGs, air pollution - Creating immediate impact, for the long term! Be a part of a movement - Solar industry jobs, transformation Save money - Hedge against rising energy prices by becoming energy secure - Low risk investment! Thinking of future generations: – Set an example to your community, family and friends! 11 Canadian Solar Map 12 Solar Potential of Major Cities City Cairo, Egypt Los Angeles, U.S.A Regina, Saskatchewan Rome, Italy Ottawa, Canada Toronto, Canada Washington, D.C., U.S.A. Paris, France Berlin, Germany London, England Yearly PV potential (kWh/kW) 1635 1485 1361 1283 1198 1161 1133 938 848 728 Hours of sun is reliable - only varies by +/- 3% per year 13 An Ideal Roof for Solar Structurally sound with adequate rafters and spacing – A re-shingled roof in the last 5 years Sloped at 30-45 degrees – A flat roof will require a rack and withstand snow / wind loads if higher than 3 feet – <30 or >45 degrees will reduce output (by 5% at 60 degrees) South or SW/SE facing – East or west facing will reduce output by 15%-20% At least 120 square feet (12 sq metres) of free roof area – Un-shaded by other buildings or trees (now and for 20 years) 14 Solar PV vs Solar Hot Water Solar Photovoltaic (PV): – Solar panels convert photons into electricity – $20,000+ initial investment – microFIT and FIT programs provides guaranteed 20 year income stream, SolarHot Water (SHW): – Solar collectors pre-heat water or glycol for potable water or space heating – $5,000 - $15000 initial investment depending on size – Reduces your hot water heating bill Both are reliable, low maintenance investments – About 10 year payback time 15 A typical SHW installation A typical system has: – Collectors – Heat Transfer Medium (Glycol) – Storage Tank – Heat Exchanger 16 Solar PV Grid-Tie vs Off-Grid Grid-Tie – Solar electricity is fed to electricity grid – Less expensive than off-grid • no batteries required – Can use as much electricity as you need from grid • No back up power in an outage Off-Grid – Solar electricity is stored in batteries and used in the home – More expensive than grid-tie • Batteries & controller required – Limited to electricity generated by sun • Not affected by electricity outages 17 A typical Grid Tie Solar PV Installation Panels mounted flush on sloping, south facing roof An Inverter to convert DC power to grid AC power A new meter to measure how much power you generate Connection through your electrical panel A grid disconnect switch Simple and reliable – no moving parts! 18 Financing Options Invest savings as alternative to other low risk options Vendor financing – Offered by some suppliers Secured bank loans – Shorter term Capital Campaign Debentures program Maximize rebates and incentives 19 Rebates, Incentives and Grants Programs for home owners Programs for faith buildings Preferential pricing from local installers 20 PV Incentives Government incentives: – the FIT and microFIT programs 21 Ontario Green Energy Act Green Energy Act aims to expand the green economy by supporting renewable energy and conservation projects Feed In Tariff (FIT) provides guaranteed 20 year pricing for renewable energy projects – Solar, wind, hydro and bio-energy can qualify – The FIT program is divided into two streams – FIT and microFIT The MicroFIT program is designed to encourage homeowners, institutions, and small business to invest in small renewable energy projects – Simplified process for projects less than 10 kW in size – Provides reasonable rate of return for 20 years The FIT program is designed for large scale renewable energy projects such as wind and solar farms – The project size must be over 10 kW in size and up to 500 kW 22 MicroFIT Price Schedule Renewable Energy Price Solar PV (rooftop) Contract 38.4 cents/kWh 20 years Solar PV (non-rooftop) 28.9 cents/kWh 20 years Wind 12.8 cents/kWh 20 years Waterpower 24.6 cents/kWh 40 years Biomass 17.5 cents/kWh 20 years Biogas 16.8 cents/kWh 20 years Landfill 17.1 cents/kWh 20 years Premium for solar makes sense because it matches peak demand. 23 Solar PV Price Schedule Mounting MicroFIT Roof MicroFIT Ground FIT Rooftop FIT Rooftop FIT Ground Size < 10 kW < 10 kW 10 - 100 kW 100 - 500 kW 10 - 500 kW Contract Price 38.4 cents/kWh 28.9 cents/kWh 34.3 cents/kWh 31.6 cents/kWh 27.5 cents/kWh FIT program has lower pricing for larger solar systems. 24 MicroFit Rules for Solar 10 kW or less in size Located in Ontario Not have an existing IESO or Ontario Power Authority contract Have a separate meter, as specified by your LDC, suitable for data collection and payment calculation. Have an eligible participant as the Applicant. The IESO has developed an Eligible Participant Schedule to identify who is able to submit an Application to the microFIT Program. http://microfit.powerauthority.on.ca/ 25 Participating in Ontario’s MicroFIT Program – Step by Step Get a site assessment and quotes Evaluate your options Decide on size and supplier Apply for a Conditional MicroFIT Contract Apply for a Connection Agreement Arrange Insurance, Financing and Permits Install and connect your system Finalize your MicroFIT Contract 26 FIT Rules for Solar Greater than 10 kW in size up to 500 kW Located in Ontario Not comprise an Incremental Project Directly connect to the Distribution System. Projects are no longer permitted to connect directly to the Transmission System Have Access Rights to the Site in which the Project will be located http://microfit.powerauthority.on.ca/ 27 Up Front Costs Panels, inverter and wiring (including taxes), installation and testing – $2500 - $4500 per kW – 75 sq ft roof space per kW Connection fee (Hydro) – $1000 to $1500 Building Permit (City) – typically $250 28 Annual Revenue On a south facing un-shaded roof your system should provide about 1200 kWh/year for each kW installed At the MicroFIT tariff of 38.4 cents/kWh for 20 yrs – $460.80 per year for each kW Expect a small drop in output each year - no more than 20% over 20 years Retains it’s value after 20 years (net metering) 29 Simple Payback Fixed – No Tracking (10 kW) Estimated Cost to Install Capacity Factor Annual Production $35,000 13% 13,000 kWh Annual Revenue $4608 Simple Payback 7.5 years Return on Equity* 12% *Return on equity = annual revenue – annual debt repayment (70% of project costs) ÷ equity investment (30% of project costs) 30 Annual Costs Additional Insurance (damage and liability) – May be 0.1% to 0.3% of Installed cost per year Maintenance (minimal) – Warrantees should cover any failures of components – Set aside $100 / yr for inverter replacement Account management fee (Hydro) – $8 per month expected 31 Site Assessment and Quotes Each supplier should provide you with the following information: – The maximum and minimum size system for suitable for your home – Any modifications needed to your roof – A guarantee that the solar PV system meets all MicroFIT program requirements – The cost of different size systems including equipment, installation, taxes, connection fees, permits, and warrantees – How many kWh per year each system will generate in an average year and the income you can earn 32 Apply for a Conditional MicroFIT Contract Register with the Ontario Power Authority (OPA) – Register on-line and obtain a My MicroFIT Home Page. Work with Supplier to Prepare Drawings and Other System Details – Information needed for a conditional MicroFIT contract, building permit, electrical permit, and connection agreement. Apply for a Conditional MicroFIT Contract Offer from the OPA – Submit an on-line application. 33 Apply for a Connection Agreement Apply for a Micro Embedded Connection Agreement from Hydro covering: – Technical requirements (including disconnection devices, maintenance) – Liabilities (e.g., responsibilities for damages) – Compensation and billing (relating to payments for electricity generation) – Termination and assignment of the agreement. Hydro will provide details about how your project will be connected and the costs involved. 34 Apply for Building and Electrical Permits Flush mounting solar panels on a roof requires rafter spacing and unsupported spans in the roof to be adequate. A City building inspector will asses this based on the drawings provided by your solar system supplier. The cost of a permit will be in the order of $250. Your supplier will arrange for electrical permits and inspections. 35 Arrange Insurance and Financing Add the value of your solar system to your house insurance and ensure that your liability coverage is adequate. Arrange financing with your supplier, financial institution or through a fundraising program 36 Install your system Your supplier will install your system and normally arrange for all inspections. 37 Connect Your System Provide Hydro with: – A letter of authorization to connect from the Electrical Safety Authority – Payment for the connection fee – A signed Micro-Embedded Connection Agreement Hydro will then install a meter and connect you to the grid. 38 Finalize your MicroFIT Contract The OPA will send you a notice of MicroFIT contract offer that you accept through your “My MicroFIT home page”. 39 Let the Clean $ Roll in Payments will be made to you by Hydro for all the electricity produced by your MicroFIT project. 40 Summary Over 110 faith communities have already installed or are planning to install solar Solar power is a good investment – Return is better than GIC or bond with less tax Solar power is low risk – 20 year contract with OPA – Sun hours consistent year over year – No moving parts, low maintenance Solar power is good for the environment – No greenhouse gases, no transmission losses Solar power is good for Ontario’s economy – Your investment helps create local jobs 41 Making Your Final Decision - a Check List Acceptable rate of return Financing OK Roof up to scratch Willing to sell system and contract with house if you move Decide on system size, location Decide on supplier 42 Solar Case Study # 1 – Neighborhood Unitarian Universalist Congregation Location: Toronto, Ontario Installation Type: Solar PV Capacity: 22.80 kW Technical Specs: 114 – Canadian Solar – 200 watts114 – Enphase 200 – microinvertors Orientation: South facing roof mounted fixed Installed Cost: $220,000 Installer: Intervolt Electric Lmt. Financing Mechanism: Half of the installation was financed by an interest free loan from the City of Toronto. NUUC also issued 110 debentures for $1000 each at 5% interest paid annually (privately held). The remaining amount was financed by private donations. Estimated Annual Revenue: 15,000 Expected Payoff Period: 14 years 43 Solar Case Study # 2 – Richards Memorial United Church Location: London, Ontario Installation Type: Solar PV Capacity: 10 kW Technical Specs: 50 – Schuco 230 PSO4 modules1 Solectria Renewable/PV1 10KW Orientation: South facing roof mounted fixed Installed Cost: $87,000 Installer: Direct Current Renewable Energy Lmt. Financing Mechanism: A 4% interest loan from the United Church Council of Middlesex Presbytery. Estimated Annual Revenue: $11,000 Expected Payoff Period: 8-9 years 44 Solar Case Study # 3 – Hillcrest Mennonite Church Location: New Hamburg, Ontario Installation Type: Solar PVCapacity: 9.87 kW Technical Specs: 42 – Conergy P235PA2 – Aurora Power One PVI 6000 Orientation: Dual axis tracker – ground mounted Installed Cost: $80,000 Installer: Fritz Construction Services Financing Mechanism: Fifty per cent of the $80,000 initial investment was funded through the Mennonite Savings and Credit Union and 50 per cent was funded through 10-year debentures sold in $1,000 increments to members of the Estimated Annual Revenue: $13,500 Expected Payoff Period: 7-8 years 45 FAQs How do I know if it is right for me? How much does it cost? What is the payback? Is there maintenance required? Do I have to climb on my roof or know how the system works? What about snow? Do they work in the winter? What are the installation requirements? Will a Solar system affect my insurance? How do I know what size of a system to get? 46 How do I know if it’s right for me? Need to check: – southern exposure – shading – slope – plumbing connections (SHW only) – space for a second water tank, if needed (SHW only) Complete the solar faith assessment tool developed by Faith & the Common Good (for faith buildings) 47 How much does it cost? Depends if it is for a home (congregation member) or the faith building Hot Water System: approximate cost is $7,000 to $14,000 for a system, but can be greater if hot water use is great Faith building costs varies greatly depending on type and size of system (your hot water demand) Approximate cost for a PV system is $2500-$4500 per kilowatt installed (depending on the system) Co-generation systems exist which combine PV and SHW 48 What is the payback? Can save up to 55% to 70% on annual hot water costs with a SHW system Can earn money with the FIT program Estimated ROI (Return on Investment) depends on – System cost – Current and increased energy prices – Energy output – Financing and incentives 49 Maintenance Is there maintenance required? Do I have to climb on my roof or know how the system works? Systems are low maintenance No special knowledge required Fluids need to be checked/changed every few years for glycol-filled SHW systems Most maintenance & inspections are done by installer – you need to make arrangements Verify what the installer offers 50 What size of system do I get? Typical systems vary depending on – Consumption patterns – Roof space (how many panels can you FIT!) – Investment capital and financing Need to compare priorities for PV (to generate income with FIT) and solar thermal (to reduce hot water costs) 51 What to look for in an installer CanSIA member Offer warranty, guaranteed service and maintenance plan Good references Experienced installer Experienced plumber on staff Federally approved systems 52 Next Steps 1. Determine if solar is right for your home or faith building (self-assessment tool) 2. Prioritize type of solar project and obtain quotes, permits, permissions 3. Arrange financing and FIT application 4. Implement and showcase! 53 Questions?