FLORIDA SOLAR ENERGY CENTER Creating Energy Independence Since 1975 Taking Charge of Our Energy Future We Can Do Much Better! James M. Fenton and Philip Fairey A Research Institute of the University of Central Florida 1 Economic Context Florida ranks 5th nationally in the amount of energy consumed per capita and 3rd in total energy consumption (This statistic does not account for tourist population.) The economic implications of fuel purchases in Florida are large At $2.50/gal = $23 billion/year for automotive fuel. Plus another $20 billion/year for electricity yields a total of $43 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. 2 Where Florida Stands 7 States => 15% market share 3 EPA Energy Star Homes National brand recognition Reduce total home energy use by about 15% compared to 2006 code standards Save owners money each month – monthly energy efficiency savings are greater than their costs when paid through a 30-year mortgage Save Florida citizens about 2,000 kWh per year and about 1.5 tons of CO2 emissions per home each year 4 Energy Star Answers What it Takes? Standard minimum code features plus. . . Energy Star windows, refrigerator and dishwasher Three Energy Star lighting fixtures A substantially leak-free duct system An Energy Star air conditioner (SEER = 14) Benefits and Costs? Total estimated annual savings = 1,995 kWh Total estimated added costs = $1,600 Levelized cost of energy savings = 6¢ per kWh 5 Current Projection New Generation for 2014 Source: http://www.fsec.ucf.edu/pubs/eere_study/ 6 Residential Dominates 2004 Actual Energy Use by Sector (233 TWh) Source: http://www.fsec.ucf.edu/pubs/eere_study/ 7 Off-the-Shelf Technology 40% annual energy savings (~$630) 2.06 kW 2000 sq.ft., 3 BR, single story, concrete block home 8 Why Not This? New Generation for 2014 Source: http://www.fsec.ucf.edu/pubs/eere_study/ 9 Efficiency First The least expensive kWh is the one that we do not use (or produce) New homes (190,000 per year) can cost effectively achieve almost 40% greater efficiency than 2007 code requirements Existing homes (7.3 million) can be cost effectively improved by more than 30% Achieving this cost effective efficiency would result in 53 billion kWh savings at a levelized cost of about $0.05 per kWh.1 1 ACEEE, 2007. Potential for Energy Efficiency and Renewable Energy to Meet Florida’s Growing Energy Demands 10 Energy Efficiency Policy Florida should provide incentives (rebates) for new homes that are more efficient than code, as measured by the national HERS Index Florida should provide incentives (rebates) for existing homes that are improved by at least 25%, as measured by the national HERS Index All rebates should be tied to performance such that the rebate amount is $0.60-0.75 times the annual kWh saved for all efficiency improvements, including solar hot water. 11 The Art of the Possible The First “Zero Energy Home” 12 $2400 at $0.12/kWh $1800 at $0.12/kWh Efficiency First 13 Florida PV Rebates From 30th to 9th through Florida’s Energy Act 14 Photovoltaic Costs 15 Renewable Energy Policy Renewable “green” energy is now selling voluntarily at a premium of only $0.025 per kWh in Florida through TECO Florida should establish a renewable energy portfolio standard (RPS) that achieves at least 5% of power from renewables by 2023 Florida should establish an on-site solar energy program that aims to achieve 10% of all water heating and a 3% penetration of on-site PV energy (~2,300 MW) by 2023. 16 Renewable Electricity Standards Washington: 15% by 2020 MN: 19% by 2015 (Xcel Energy)* IA: 2% by 1999* CA: 20% by 2010 ME: 30% by 2000* WI: 10% by 2015 MT: 15% by 2015 NV: 20% by 2015 NY: 24% by 2013 IL: 8% by 2013** MA: 4% by 2009 RI: 16% by 2019 CT: 10% by 2010 NJ: 22.5% by 2020 DE: 10% by 2019 CO: 10% by 2015 MD: 7.5% by 2019 D.C: 11% by 2022 AZ: 15% by 2025 NM: 10% by 2011 PA: 8% by 2020 TX: 5,880 MW (~5.5%) by 2015 HI: 20% by 2020 21 States + D.C. *MN has a requirement for one utility, Xcel Energy, and a 10% by 2015 renewable energy goal for all other utilities. In addition to their requirements, IA has a 1,000 MW (~10%) by 2010 goal, and ME has a 10% new resources by 2017 goal. **Renewable energy goal, with no specific enforcement measures. RES RES and Goal RE Goal Renewable Energy Policy Florida should have a mandatory net metering law just as 40 other states do Florida should increase its interconnection standards for PV systems from 10 kW maximum capacity to 100 kW Florida should establish a public benefits fund to support its RPS. 18 Non-Appropriated Public Benefits Funds Oregon: $95 million Minnesota: $200 million Montana: $14 million New York: $89 million Wisconsin: $21 million Ohio: $25 million MA: $494 million RI: $30 million CT: $248 million NJ: $286 million Delaware: $18 million Pennsylvania: $67 million California: $2,048 million Arizona: $234 million Illinois: $114 million 15 States = $4 billion by 2017 19 Net Metering NY: varies (10 kW - 400 kW) IN: 10 kW and 1,000 kWh/month 25 kW 50 kW Ohio: No limit 100 kW 40 kW 25 kW 20 kW 25 kW 30 kW 25 kW No limit 30 kW 40 kW 25 kW 100 kW 15 kW 1 MW 10 kW 10 kW 50 kW 40 States + D.C. HI: 50 kW VT: 15 kW, 150 kW for ag. NH: 25 kW MA: 60 kW RI: 25 kW CT: 100 kW 50 kW NJ: 2 MW DE: 25 kW MD: 200 kW DC: 100 kW VA: 10 kW (res.); 500 kW (comm.) NC: 20 kW (res.); 100 kW (comm.) GA: 10 kW (res.); 100 kW (comm.) OK: 100 kW or 25,000 kWh AR: 25 kW (res.); 100 kW (comm.) ME: 100 kW FL: 10 kW State-wide Programs LA: 25 kW (res.); 100 kW (comm. or ag.) Individual Utilities 20 $600 per capita at $0.12/kWh California’s Example 21 Level The Playing Field California (PUC & CEC) provides $550 million per year in renewable energy incentives California has twice the population of Florida Thus, Florida would need to provide $275 million per year to produce a level playing field The surcharge to achieve this fund in Florida would be $0.0012 per kWh For the typical Florida household, this would equal $18 per year. 22 Florida Solar Energy Center Creating Energy Independence Since 1975 A Research Institute of the University of Central Florida 23 Florida Solar Energy Center Created in 1975 by the Florida Legislature The energy research institute of the state of Florida Mission is research, testing and education $8 - 10 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. 24 FSEC Expertise (30 years) High-Performance Buildings Solar Thermal Systems (today’s cost-effective solution) Photovoltaics (tomorrow’s source of electricity) Testing & Certification (protecting Florida’s citizens) Hydrogen, Alternative Fuels and Fuel Cells (energy efficiency) (the future’s fuels and engines) Education and Training (Florida’s workforce for today and the future) Demonstrations (moving the market) 25 FSEC Leads the Nation U.S. DOE, Building America, Energy Efficiency – Only University to lead a BA team (Industrialized Housing) U.S. DOE, Southeast RES – Eastern U.S leader for photovoltaic applications research U.S. DOE, Fuel Cell Membranes – FSEC leads $19 million, 12-member university and industry team U.S. DOE Center of Excellence in Hydrogen Tech & Ed NASA, Hydrogen – FSEC leads team of 6 Florida universities – largest university team in nation Zero Energy Homes - FSEC created the first “Zero Energy Home” in the nation. K-12, PV for Schools, Florida Renewable Energy Curriculum Developed at FSEC FSEC’s Gossamer Wind® ceiling fan is UCF’s most productive patent. (> 1M sold, > $20M annual energy) 26 Some FSEC Highlights 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. 27 Becoming the Best Thanks to FSEC’s research, Florida’s residents are saving more than $150 million annually in energy costs, more than the total state investment in FSEC over 30 years. The center has also attracted more than $150 million in external R&D contracts. FSEC provides unbiased, university-based R&D and education and training. Our work is enhancing industry and job creation. Developing renewable energy and energy efficiency provides both energy and environmental security. 28 Taking Charge Home Energy Efficiency Policy Renewable Energy Policy Renewable Energy Portfolio Standard (5% by 2023) 10% Solar Hot Water, 3% on-site PV by 2023 Mandatory Net Metering Interconnection PV standard increased from 10 kW to 100kW Level the Playing Field so that the “Sunshine State” beats the “Golden State” New and Existing Homes Renewable Energy Incentives $275 million per year ($1.50 per month typical household) Measure, Verify and Manage 29 For Further Information James M. Fenton, Director jfenton@fsec.ucf.edu (321) 638-1002 Philip Fairey, Deputy Director pfairey@fsec.ucf.edu (321) 638-1005 Main FSEC web site www.fsec.ucf.edu “Taking Charge of Our Energy Future” www.fsec.ucf.edu/energynews/2006/2006-02-energyuse2014.htm 30