The Value of Durable Materials in Maximizing Your Investment in Solar Energy Jon Previtali, Director of Technology & Technical Services PV Magazine Webinar, November 2017 For Discussion & General Information Purposes Only Wells Fargo Renewable Energy & Environmental Finance (REEF) Established in 2006 to provide tax equity capital for the renewable energy industry. Today, the group has 28 professionals with decades of combined experience in renewable energy. Collaboration with Wells Fargo CleanTech Banking which offers traditional banking services & relationship management. Cumulative Solar Projects Financed by Wells Fargo (MWDC) 1,200 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cumulative Wind Projects Financed by Wells Fargo (MWAC) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2006 2007 2008 2009 2010 For Discussion & General Information Purposes Only 2011 2012 2013 2014 2015 2 2016 Wells Fargo Renewable Energy & Environmental Finance (REEF) 8+GW portfolio comprised of 50+ Wind projects and 300+ Solar projects 3 0 2 0 0 2 0 0 3 0 0 24 1 2 0 0 1 0 5 0 2 0 2 0 1 0 5 2 0 1 4 15 5 5 171 0 0 1 0 0 0 0 1 0 0 0 0 0 0 3 5 4 1 6 0 0 0 0 0 4 0 0 50 0 0 17 1 0 0 0 5 0 9 1 0 1 2 PR 12 # Number of Wind Projects within State # Number of Solar Utility Projects within State # Number of Solar DG Projects within State 0 0 0 0 MW Total Renewable Capacity within State 0.1-50 MW Total Renewable Capacity within State 51-150 MW Total Renewable Capacity within State 151-300 MW Total Renewable Capacity within State > 300 MW Total Renewable Capacity within State For Discussion & General Information Purposes Only 0 3 0 3 0 2 1 Typical PV Project & Portfolio Technical Due Diligence Mechanical Completion 20% Initial Funding (partnerships only) Project Commitment Substantial Completion Term Sheet Final Funding (partnerships) Funding (leases) IECRE Standards & WF Approved Advisors Project Developer, EPC, Operator, Asset Manager Planning, Engineering, Procurement Solar module manufacturer Construction Pre-production audit & remediation, production oversight (20%), pre-shipment inspection, QMS data review Qualification Accelerated Lifetime Tests (ALT) for each BOM (CSA EXP 450, DNV GL PQP, proposed UL method) 2 ALT/Durability tests of module batch (each BOM/assembly line combo3) per IEC61215 Independent Engineer1 Performance Testing & Final Commissioning Module production Module factory auditor1 Module Test Lab1 Dry Commissioning Phase 1 IE Report, construction lender IE report or equivalent Degradation rate tests (if needed) Phase II IE Report (more focus on long-term performance) Construction Monitoring/Site Visits Sampling techniques and expert judgement based on record can be used to reduce cost Ideally done in advance of module production, but could be done at start of production 3 Unless factory auditor confirms consistency between assembly lines 1 2 For Discussion & General Information Purposes Only 4 Operation & Asset Management Decom or Recom Example of PV Module Accelerated Lifetime Testing (ALT) Scope of Work Standard or Source Weeks: Days at Lab: Air Shipment Sample prep, outdoor preconditioning (Clause 5 61215) Visual, EL, IV, Flash Test, Wet Leakage (when required) Module Qualification Tests (IEC and Extended Testing) TC (Thermal Cycling) DH (Damp Heat) DML/TC50/HF30 PID (Potential Induced Degradation) Statistical Module Batch Tests (each BOM/factory combo) TC (Thermal Cycling) DH (Damp Heat) TC50/HF10 (Thermal Cycling/Humidity Freeze) PID (Potential Induced Degradation) DML (Dynamic Mechanical Load) LID (Light Induced Degradation) PAN file validation/creation (for PVSyst) IAM (Incident Angle Modifier) loss validation Bypass Diode Test Degradation Rate Characterization Tests* 75°C/20%RH 85°C/20%RH 95°C/20%RH Other tests** Modules: Hot Spot Test Components: UV Exposure of Junction Box Bypass Diode and Junction Box Thermal Test UV Exposure for Encapsulants UV Exposure for Backsheets UV Exposure for Cables and Connectors Result checks/Reports Test Module Count or Component Sample Count 1 2 7 3 14 4 21 x x x 5 28 6 35 7 42 8 49 9 56 10 63 11 70 12 77 13 84 14 91 15 98 x x x x x x x 200 500 500 1000 1500 2000 x NREL Qualification Plus NREL Qualification Plus NREL Qualification Plus NREL Qualification Plus IEC 61215 IEC 61215 IEC 61215 IEC 61215 IEC 61215 IEC 61215 IEC 61853-1 IEC 61853-2 IEC 61215 NREL special for Wells Fargo NREL special for Wells Fargo NREL special for Wells Fargo varies x 192 200 30 (6 per test) for 95% confidence level that 90% of modules will be defect free 500 x x x All of sample set 500 500 500 6 (1 with defect + 1 control with no defect per test) NREL Qualification Plus NREL Qualification Plus NREL Qualification Plus NREL Qualification Plus NREL Qualification Plus 5 5 5 12 3 1000 1000 1000 1500 1500 1500 2000 2000 2000 x 500 96 Initial Check *Initiated for each BOM/factory combo, but stopped if no fault found in IEC baseline **Performed if there is a reason for concern, e.g. historical defect, known issue, significantly new component, material or design, etc. For Discussion & General Information Purposes Only 2000 x x 3 of existing sample set 5 1000 x 96 20 of existing sample set NREL Qualification Plus/ASTM E2481-06 800 5 Check 1 Check 2 Check 3 Check 4 Check 5 IEC 61215 Report, Stop deg rate char tests if no fault found ~4000 hours>> ~4000 hours>> ~4000 hours>> Extended Test Report, Degradati on Rate Character ization (if needed) PV Module Degradation Rate Characterization Analysis Method Used in new energy production estimate that feeds project pro forma and purchase price. Specific fault ID’d in IEC test Degradation Rate Test Results Arrhenius equation coefficients Arrhenius equation model custom fit for fault Additional degradation due to fault. Baseline degradation assumption. Degradation Rate Characterization Tests 75°C/20%RH 85°C/20%RH 95°C/20%RH Typical Met Year (TMY) data for project location Built upon work by Kent Whitfield and NREL’s Mike Kempe, Sarah Kurtz, Dirk Jordan, and John Wohlgemuth. For Discussion & General Information Purposes Only 6 NREL study (“Photovoltaic Degradation Rates — An Analytical Review”, Jordan, Kurtz). New degradation assumption plus error. A few latent defects we’ve seen in ALT testing Bypass diode failures Diode failure at TC400 2-diodes fail at TC600 For Discussion & General Information Purposes Only Outdoor failure signature 7 A few latent defects we’ve seen in ALT testing Accelerated cell corrosion For Discussion & General Information Purposes Only 8 A few latent defects we’ve seen in ALT testing Junction box lid failures 2014 testing 2014 testing 2014 testing RETC RETC RETC RETC 2014 + RETC RETC RETC Resulting corrosion after 3 years near coast For Discussion & General Information Purposes Only 9 Thank you! Jonathan.m.previtali@wellsfargo.com (415) 947-1980