FLORIDA SOLAR ENERGY CENTER
Creating Energy Independence Since 1975
Taking Charge of Our
Energy Future
Choosing the Better Pie
James M. Fenton, Ph.D.
Director
A Research Institute of the University of Central Florida
Current Projection
New Generation for 2014
Why Not?
New Generation for 2014
Economic Context
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The economic implications of fuel purchases in
Florida are large
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At $2.50/gal = $23 billion/year for automotive fuel. Plus
another $17 billion/year for electricity yields a total of $40
billion/year
At least half ($20 billion per year) leaves Florida’s
economy as fuel payments to other states and nations.
Keeping this money in Florida would result in $40
to $60 billion/year (2-3 times the $20 billion
exported) in real economic activity and job creation.
Florida ranks 5th nationally in the amount of energy
consumed per capita and 3rd in total energy
consumption. (This statistic does not account for
tourists.)
Growth
Opportunities
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Florida has one of the nation’s fastest growing
populations (1,000 new residents per day),
promoting rapid expansion of an energy industry
that imports its fuel supplies.
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160,000 new homes per year in Florida
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The tourist industry brings upwards of 80 million
visitors a year to Florida, adding to the
burgeoning demand.
Florida Solar Energy Center
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Created in 1975 by the Florida Legislature
The energy research institute of the state of Florida
Mission is research, testing and education
More than $9 - 12 million annually in external contracts
and grants
The experience, staff (>140) and capabilities to help solve
our energy problems and help meet our energy needs
Began as a “solar energy” center, but grew into many
new research and development areas
Housed in one of the world’s most energy-efficient
buildings.
Florida Solar Energy Center
Creating Energy Independence Since 1975
A Research Institute of the University of Central Florida
FSEC Program Areas
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High-Performance Buildings
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Solar Thermal Systems (today’s cost-effective solution)
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Photovoltaics (solar electricity)
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Testing & Certification (protecting Florida’s citizens)
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Hydrogen and Fuel Cells (the future’s fuels and engines)
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Education and Training (Florida’s workforce for today
(energy efficiency)
and the future)
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Alternative Fuels & Transportation
opportunity for Florida)
(an agricultural
Some FSEC Highlights
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Our buildings research has helped save state
residents more than $2.2 billion in energy costs.
Our solar research has led to more than 250,000
solar water heating systems installed in the
state – saving homeowners $30 million
annually.
We have trained more than 15,000 industry
professionals, government officials and others.
Our PV research has helped accelerate a market
now growing 30 percent annually.
The Art of the Possible
The Lakeland House Project
Efficiency First
Electric Power:
Business-as-usual?
Residential Dominates
2004 Actual Energy Use by Sector (233 TWh)
Governor Bush on Energy
“… the cheapest, easiest and
fastest kilowatt we can
generate is the one we save
through efficiencies. There is a
consensus on conservation and
efficiency, so let us start there.”
Jeb Bush, 2000
Pay Me Now Or . . .
Pay me more later!
#1 Recommendation
“Create or designate an entity to oversee
state energy policy. Give it the authority,
responsibility and appropriations it needs
and hold it accountable for accomplishing
its mission.”
Source: “Florida’s Energy Future: Opportunities for Our Economy,
Environment and Security.” Report to Florida DEP, January
2004. (available online at www.fsec.ucf.edu)
New Opportunities:
Federal Tax Credits!
Residential Buildings
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$2,000 to builders of highly efficient new
residences
30% of expenditures, up to $2,000, to
purchasers of residential solar hot water
systems
30% of expenditures, up to $2,000, to
purchasers of residential PV systems.
Up to $500 for energy-efficiency improvements
to existing homes.
Sweetening the Pot
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There are many additional federal income tax
incentive opportunities in commercial
buildings, transportation, etc.
But, . . . If Florida wants to maximize the
availability of federal income tax incentives
and transform its marketplace for highefficiency buildings, then Florida will need to
step up to the plate and provide additional
incentives.
Example Incentives
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Add the following performance-based Florida
consumer rebates to to the federal income tax
credits:
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Solar hot water systems – $0.30 per annual
kWh equivalent saved
Home efficiency – $0.30 per annual kWh
equivalent saved
Photovoltaic systems – $2.50 per peak watt
installed (minimum installation = 2 kW-peak)
Payoff to Florida
The 25 TWh Example
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160,000 new Florida homes per year
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6.2 million existing Florida homes
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24,000 tax credit homes per year
24,000 solar water heaters per year
62,000 home improvements (15%) per year
62,000 solar water heaters per year
Photovoltaic Systems
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9,000 PV systems per year (2 kW peak)
Off-the-Shelf Technology
40% annual energy savings (~$630)
2.06 kW
2000 sq.ft., 3 BR, single story, concrete block home
Florida Benefits
Cumulative Ten Year Totals
Total energy savings
24.7 TWh
Total consumer cost savings
$2.47 billion
Total fuel not purchased
$1.24 billion
Avoided capacity
Avoided generation costs
New jobs
Tradable renewable energy
credits (TRECs)
CO2 savings
1,669 MW
$1.67 billion
126,000
$420 million
26.4 million tons
Costs & Benefits
Cost
($mil)
Benefit
(GWh)
Example Florida “Home
Improvement” program
$374*
4,497
2004 Florida DSM program
$240
239
* 50% of Florida “Home Improvement” costs covered
by federal tax credits – actual cost to Florida is only
$187 million per year.
The Homes Benefit
A Very Different Result
Old Pie
New Pie