Solar Renewable Energy - Now
ISPE Meeting
Thomas Leyden, Managing Director
October 28, 2009
SunPower Update
Established in 1985
World record solar cell efficiency = MORE POWER
4,000 Employees: All we do is solar
Over 85 patents and over 20 years of R&D
Worldwide footprint
Publicly traded (NASDAQ), strong balance sheet
Over 450 systems on 3 continents
Energy efficiency expertise
Over 500 MW installed, 24 MWs in NJ
$1.4 billion in 2008 revenue – all solar
Largest solar projects in North America
Fully staffed NJ office in Trenton
Established and Proven. Technology Leaders.
Solar: Different Types of Solar
Solar Hot Water:
Parabolic Trough:
Photovoltaics:
Beats Electric Water
Heating Today
“Dispatchable”
Wholesale Power
Modular;
Customer Side Value
Technology
Comprehensive Solar Program
Your SunPower Solar Solution
Reaching “Grid Parity”
MSEIA/PV Now
All-in price of electricity
0.4
0.35
Incentives accelerate the cross-over
0.3
$/kwh
0.25
Grid 4.5% inflation
Grid 3% inflation
solar declining 5%
solar declining 6%
0.2
0.15
Crossover points
0.1
0.05
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2005-2020
Deployment Applications
Residential Retrofit
New Production Homes
Commercial & Public
Power Plants
6
Solar PV Value Chain
Raw Materials to Rooftops = Lower Risk and Higher Savings
Polysilicon
Ingot
Wafer
Solar Cell
Solar Panel
Systems
Deployment Products
Solar Cell
Rooftop
SunPower
PowerGuard ®
SunPower ®
T10 Solar Roof Tile
Ground
SunPower ®
T5 Solar Roof Tile
SunPower ®
T0 Tracker
SunPower ®
T20 Tracker
8
More Power Per Square Foot
More Energy (kWh) = More Customer Cost Savings
Thin Film
Conventional
High Efficiency
205,000 kWh
468,000 kWh
880,000 kWh
(4.4% efficiency)
(12.8% efficiency)
(18.4% efficiency)
More Energy, Less Space
Efficient Use of Land with High-Efficiency PV
Technology
Thin Film
Conventional
High Efficiency
41 Acres
32 Acres
21 Acres
9.5% Efficiency
12.6% Efficiency
19.3% Efficiency
6MW Solar Power Plant
Installation Methods Have Improved Dramatically
Features
Patented
Lightweight
No roof penetrations
Insulates roof
Pre-engineered
Class B Fire Rating
11
J&J Leadership Has Made a Difference
Ortho-McNeil
Pharmaceuticals,
Springhouse, PA
75 kW
12
Meaningful Power in the Commercial/Industrial Sector
1.01 MW
Fala Direct
Marketing
Farmingdale, NY
13
Shiseido 699 kW
New Jersey Headquarters
• Reduces annual energy usage by 35%
• Saves $100,000 annually in electricity costs
Tiffany & Co. 1.3 MW
Parsippany, NJ
Solar + Energy Efficiency delivering
savings of more than $450,000/year
Wal-Mart 5.9 MW
Multiple Locations in CA & CO
Reduce energy consumption
by 10–40% per store
New Jersey National Guard, Ft. Dix - 181 kW
17
Bayonne School District, Bayonne, NJ - 231 kW out of 2 MWs
18
J&J Consumer Products
Skillman, NJ 500 kWs
Sonoma County Water Agency
Sonoma Valley, CA
Bavaria 10.08 MW – Was World Largest
Generates enough solar energy to power the entire village
Nellis Air Force Base 14.2 MW
Las Vegas, Nevada - Largest in the United States
Supplies 25% of the base’s total power
Over 500 Installations Worldwide
Major Companies Turn to Solar
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Simple and Robust Components
Solar runs in parallel with utility power
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Cutting-Edge Performance Monitoring
 Daily performance monitoring
– Energy output
Commercial
Performance
Monitoring
Meteorological
weather station
– Sunlight irradiance and
ambient temperature
– Wind speed
Web Accessible
User Interface
– Actual vs Expected array output
– 15-minute interval data logging, 30-minute
data updates to server
 Annual/monthly performance reports
 Exportable data for analysis
 Utility-grade data gathering, management
and reporting:
Monitoring
–
IBM Maximo asset-management
–
OSI PI real-time backbone infrastructure
Control Center
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Johnson & Johnson / Solar System Performance
350,000
Total Expected Energy (kWh): 8,976,895
Total Typical Energy (kWh): 9,022,304
Total Energy Produced (kWh): 8,898,314
% of Expected Energy Produced: 99.1%
300,000
250,000
Energy (kWh)
200,000
150,000
100,000
50,000
Energy Expected in Typical Year
Energy Expected with Actual Weather
3/1/2009
1/1/2009
11/1/2008
9/1/2008
7/1/2008
5/1/2008
3/1/2008
1/1/2008
11/1/2007
9/1/2007
7/1/2007
5/1/2007
3/1/2007
1/1/2007
11/1/2006
9/1/2006
7/1/2006
5/1/2006
3/1/2006
1/1/2006
11/1/2005
9/1/2005
7/1/2005
5/1/2005
3/1/2005
1/1/2005
11/1/2004
9/1/2004
7/1/2004
5/1/2004
3/1/2004
1/1/2004
0
Electrical Generation
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NJ SRECS 101
1 SREC = 1 MWhr (or 1000 kWhr)
Energy Year = June 1- May 31
SREC generation for 15 years, Class 1 years 16+
First 3 Years
 NJ SRECs must be purchased by LSEs that supply the NJ electricity
markets in order to meet the RPS obligation or else they will be fined (via
an ACP) by the NJ BPU @ $300/MWh (or $0.30/kWh) – “Compliance
RECs”
Next 8 years
 New ACP schedule more than doubled to make up for lack of rebates
2009
2010
2011
2012
2013
2014
2015
2016
$
$
$
$
$
$
$
$
711
693
675
658
641
625
609
594
27
27
NJ Solar Renewable Energy Certificate (SRECs)
Energ
y Year
2010
2011
2012
2013
2014
2015
2016
20172023
S-ACP
$693
$675
$658
$641
$625
$609
$594
3% per Yr
decrease
Spot
$589
$574
$559
$545
$531
$518
$505
~85%
• Current NJ Renewable Portfolio Standard (RPS) goal is 2.12% by 2021
• RPS Obligation continues beyond 2021, with no escalation
• Load Servicing Entities (LSEs) required to comply with State RPS
• Solar Alternative Compliance Penalty (S-ACP) created by Board of Public Utilities
• S-ACP set maximum market trading price for NJ SRECs
• S-ACP levels set forward for 8years at ~3% discount per year (renewed each yr)
SunPower Proprietary and Confidential. © 2008 SunPower Corporation. All Rights Reserved
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Purchase Option
Objectives
Benefits
 Maximize value
 Low-risk return on investment
 Long term asset ownership
 Reduce long term cost of energy
 Utilize Investment Tax Credits
 Increased cash flow
 Hedge energy costs
 No property tax impact
 Strategic investment
 Public recognition
5,000
4,000
3,000
2,000
1,000
0
-1,000
-2,000
-3,000
-4,000
25
23
21
19
17
15
Time
13
11
9
7
5
3
1
-5,000
0
 Societal/environmental goals
Cumulative Cashflow
$ Thousands
 Cash/Credit reinvestment for
strategic reasons
Utility Purchases
Solar Cash Flow
29
PPA Financing
Objectives
Benefits
 Site solar power system on property
 Simplified solution: focus on cost of energy
 Predictable long term electricity
supply arrangement
 No up-front capital investment
 No asset ownership/investment risk
 Performance based obligation: pay
only for electricity delivered
 Hedge against uncertain utility rates
 Integrator designs, builds, operates and
maintains solar project
 Fixed rate electricity cost for 10+ years
 Enhanced cash flow: redirect sale of solar
electricity to tenant
 Meet clean energy and
environmental sustainability goals
30
Dedications & Media Events
Positive publicity and recognition
Promote goodwill
31
Corporate Media Coverage
Enhance Value of Renewable Energy and Social Responsibility
Leverage Investment: increase awareness of corporate
social responsibility activities
32
Extend Corporate Vision
Value to Your Employees, HR Department, and Organization
SunPower can partner with HR
departments to launch a
program for your employees,
offering them solar for their
homes at reduced rates, with
simple financing.
“SunPower has a presence throughout the U.S. and a great dealer channel,
so we could offer the benefit to a good percentage of our employees.”
—Debbie Ledbetter, Corporate, Social, and Environmental Responsibility, Hewlett-Packard
33
Economic, Environmental and Social Benefits of Solar
1
Reduced carbon footprint and zero
emissions — Be part of the solution!
4
Purchase electricity below current
utility rates
2
Align with organizational
sustainability goals
5
Flexible financing options
3
Reduce fossil fuel dependence
6
Hedge against rising and volatile
electricity prices
A New Era is Upon Us….….
DOE HQ
Thomas Leyden
Managing Director
SunPower Corporation, Systems
tleyden@sunpowercorp.com
Pearl Harbor
609-964-8901
Fort Dix
35
Nothing is as powerful as an idea whose time has come
-- Victor Hugo
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Solar Initiatives
10/28/09
Art Goehry
J&J Sr. Director Project
Management
agoehry1@its.jnj.com
732 524 1898
Jed Richardson
J&J Site Manager
jrichar9@its.jnj.com
908 927 5562
1
© Johnson & Johnson 2006
Energy Overview
ƒ Climate Friendly Energy Policy
ƒ Energy Usage/Cost & Procurement
ƒ Energy Reduction Projects
ƒ Campus Opportunities
2
© Johnson & Johnson 2006
Climate Friendly Energy
Policy
1999/2003
Achieve a 7% absolute
reduction in Green House Gas
(CO2) emissions by 2010,
compared to a base year of
1990
3
© Johnson & Johnson 2006
CO2 Reduction Pathway: A Balanced
Approach
• Energy Efficiency
• On-site Cogeneration
• On-Site Renewables: Solar, Wind, LFG, Biomass,
Geothermal
• Green Power Purchases
• Carbon Offset Trading & Sequestration
4
© Johnson & Johnson 2006
J&J Group Finance
CO2 Capital Funding Process
August, 2004
$40 million per year in capital relief for Projects Worldwide
Projects provide good financial returns: 10-15% Internal Rate of
Return
Projects provide meaningful CO2 reduction: $1000/Metric Ton
•
•
•
March 2009: CO2 Committee receives continued
endorsement from CFO
Identify
Project
Complete
Project
Form*
Submit
to WWEM
for Review
*Must include Finance Approved IRR Calculation
CO2
Committee
Review &
Approval
Obtain
Local
Approval
Implement
Project
5
© Johnson & Johnson 2006
CO2 Reduction Projects
ƒ 80 projects approved for
funding
ƒ $187.2 million US
ƒ 129,199 metric tons CO2/yr
ƒ Average IRR: 18.6%
ƒ 50 Projects Complete
6
© Johnson & Johnson 2006
Balancing 2009,2010,2011
ƒ 2009 Estimate
ƒ 2010 Estimate:
ƒ 2011 Estimate:
:
$47.2 MM
$70.0 MM
$31.7 MM
•7
7
© Johnson & Johnson 2006
Existing Solar PV Systems
Company
Location
Capacity
Neutrogena USA
Los Angeles, CA
546 kW
J&J Pharma R&D
Springhouse, PA
75 kW
Cordis
Warren, NJ
72 kW
Janssen USA
Titusville, NJ
500 kW
J&J Consumer Products
Skillman, NJ
505 kW
Ethicon, Inc.
Somerville, NJ
250 kW
J&J Corporate
New Brunswick, NJ
234 kW
J&J Pharma R&D
La Jolla, CA
246 kW
Ortho-McNeil, GPSG
Raritan, NJ
10 KW
GPSG
Vacaville, CA
Ortho-McNeil, GPSG
Raritan, NJ
515 KW
Janssen
Xi’an, China
10 KW
J&J Corporate
New Brunswick, NJ
Total Installed Capacity
1,194 KW
451 KW
4,608 kW
8
© Johnson & Johnson 2006
Proposed 2010 Solar PV Projects
Company
Location
Capacity
Ortho-McNeil-Janssen USA
Titusville, NJ
4100 kW
Ortho Clinical Diagnostics
Raritan, NJ
1700 kW
Consumer Products
Skillman, NJ
1200 kW
J&J Corporate ITS USA
Raritan, NJ
1000 kW
Cordis
Bridgewater, NJ
Total New Potential
Capacity
250 kW
8,250 kW
9
© Johnson & Johnson 2006
Company:
Neutrogena USA
Location:
Los Angeles, California
Project:
546 kW Solar Photovoltaic Roof Mounted System
Completed:
August 2001, November 2002 (II)
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© Johnson & Johnson 2006
Company:
PSGA
Location:
Springhouse, Pennsylvania
Project:
75 kW Solar Photovoltaic Roof Mounted System
Completed:
April 2002
11
© Johnson & Johnson 2006
Company:
Cordis
Location:
Warren, New Jersey
Project:
72 kW Solar Photovoltaic Roof Mounted System
Completed:
May 2002
12
© Johnson & Johnson 2006
Company:
Janssen USA
Location:
Titusville, New Jersey
Project:
522 kW Solar Photovoltaic Roof Mounted System
Completed:
February 2003
13
© Johnson & Johnson 2006
Company:
J&J Consumer Products
Location:
Skillman, New Jersey
Project:
505 kW Solar Photovoltaic Tracking System
Completed:
October 2005
14
© Johnson & Johnson 2006
Company:
Ethicon Inc.
Location:
Somerville, New Jersey
Project:
250 kW Solar Photovoltaic Roof Mounted System
Completed:
February 2006
15
© Johnson & Johnson 2006
Company:
J&J Corporate
Location:
New Brunswick, New Jersey
Project:
234 kW Solar Photovoltaic Tracking System
Completed:
March 2006
16
© Johnson & Johnson 2006
Company:
J&J Pharma R&D
Location:
La Jolla, California
Project:
246 kW Solar Photovoltaic Roof Mounted System
Completed:
March 2007
17
© Johnson & Johnson 2006
Company:
Ortho-McNeil
Location:
Raritan, NJ
Project:
10 kW Solar Photovoltaic Tracking System
Completed:
April 2007
18
© Johnson & Johnson 2006
Company:
GPSG
Location:
Vacaville, California
Project:
1,194 kW Solar Photovoltaic Tracking System
Completed:
September 2007
19
© Johnson & Johnson 2006
Company:
Ortho-McNeil
Location:
Raritan, New Jersey
Project:
515 kW Solar Photovoltaic Tracking System
Completed:
December 2007
20
© Johnson & Johnson 2006
Company:
Janssen
Location:
Xi’an, China
Project:
10 kW Solar Photovoltaic Tracking System
Completed:
June 2008
21
© Johnson & Johnson 2006
Company:
Hyatt Hotel
Location:
New Brunswick, New Jersey
Project:
451 kW Solar Photovoltaic Roof Mounted System
Completed:
April, 2009
22
© Johnson & Johnson 2006
Solar Thermal Projects
J&J China, Shanghai: Domestic Hot Water
McNeil Consumer
Ft. Washington, PA
Boiler Pre-heat
Janssen
Gurabo, Puerto Rico
Domestic Hot Water
23
© Johnson & Johnson 2006
Solar projects – Lessons Learned
• Turnkey project may not cover all needs
•
•
•
•
•
•
Safety – Fencing, Fall protection
Engineering – Arc flash, Wetlands, GPR
Landscaping
Electrical – Relays, Grounding
Legal
IT
• Roof mounted
• Loading, FM Requirements
• Roof condition
• Ground mounted
• Land use
• Impervious surface
• Foundations
24
© Johnson & Johnson 2006
Solar projects – Lessons Learned cont.
• Long term maintenance and operations
• Negotiate before contracting
• Duration/cost
• Planned maintenance and monitoring
• Unplanned maintenance
• Data monitoring
• Automatic notification
• Other issues
• Ground faults
• Blown fuses
• Inverter issues
• Complete failures
• Board failures
25
© Johnson & Johnson 2006
THANK YOU !
26
© Johnson & Johnson 2006