This presentation is posted for public use. ACEEE does not endorse any product or service.

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1 This presentation is posted for public use. ACEEE does not endorse any product or service. ACEEE accepts no responsibility for any facts or claims this presentation may contain.

2 SOLAR Solar Water Heating Ken May, P.E. Industrial Division Director, Abengoa Solar 2011 ACEEE Hot Water Forum, Berkeley, CA May 2011

3 SOLAR Natural gas imports California imports 86% of the natural gas used in the state In future, NG use will increase for transportation fuel and in electricity generation to drive electric cars putting pressure on prices Denver Post 2

4 SOLAR Solar Thermal Technology Solar Thermal Technology can: Displace natural gas for more beneficial uses, such as electricity generation where it can be used for clean, efficient power generation Boost the use of California s indigenous solar energy resource Stabilize energy prices for California industries that are importing energy from out of state and country Increase direct and indirect employment in the manufacturing and construction industries Mitigate greenhouse gas emissions and reduce air pollutants 3

5 SOLAR Natural Gas Use Solar thermal technologies can displace natural gas in the residential, commercial and industrial sectors where over 60% of CA natural gas is consumed Natural gas use in California is about 2.3% of total US energy consumption (2,244 trillion Btu) 4

6 What solar thermal can do Domestic Hot Water (DHW) Process Heat & Steam Generation Food processing Cleaning & Sanitization Petroleum Refining Enhanced Oil Recovery Desalination Power absorption chiller for cooling Supply thermal energy for building heating 5

7 Hot water case study 1: 2010 Federal Correctional Institution, Englewood, CO 160 PT-1 parabolic trough collector modules (22,720 ft2 aperture area) 1.7 acres of land area Peak delivery 1.3 MW (4.4 million Btu/h) Storage tank volume, 16,000 gal Solar field flow rate, 80 gpm (3 hp pump) Solar system rating: 150 psig pressurized glycol/water, closed loop 6

8 Operational Data: March 26, 2011 Actual vs TRNSYS model data: temperatures and solar radiation 7

9 Operational Data: March 26, 2011 Actual vs TRNSYS model data: energy delivery 8

10 Hot water case study 2: 1998 Federal Correctional Institution, Phoenix, AZ 120 PT-1 parabolic trough collector modules (17,040 ft2 aperture area) 1.4 acres of land area Peak delivery 0.9 MW (3 million Btu/h) Storage tank volume, 22,000 gal Solar field flow rate, 100 gpm (3 hp pump) Solar system rating: 150 psig pressurized glycol/water, closed loop 9

11 Hot water case study 2: Utility Savings, $ Utility Savings, $ Year 3 months 10

12 Process steam generation 54,000 ft 2 PT-1 installation, (384 modules) 4 acres of land 422 F (217 C), 300 psig steam used to heat oil to cook potato and corn chips 11

13 Dehumidification and heating 5,400 ft 2 Roof Mounted PT-1 Trough System Two-stage 99-ton Absorption chiller with NG backup Low-pressure steam generation for process and space heat 12

14 Building HVAC 6,800 ft 2 PT-1 installation 60-ton ammonia-cycle absorption chiller 7,500 gallon pressurized water storage tank Summer cooling, winter heating 13

15 Air conditioning 2,016 ft 2 Roof Mounted Trough (RMT) installation 20-ton lithium bromide, single-effect absorption chiller 14

16 Advantages of Solar Thermal Technologies Solar thermal collectors convert sunlight into heat at high efficiency (60% or more) The current market for large-scale solar thermal systems is small so expanded markets will reduce costs Current installed costs are around $1/Watt thermal making systems competitive with petroleum fuels Expanded markets will bring solar thermal systems into competition with natural gas State incentives can leverage larger private investments The US content of solar thermal systems is larger than PV, since overseas manufacture is less competitive 15

17 Barriers to Solar Hot Water Unlike electricity, there are no mandates to deploy solar thermal technology to displace natural gas Unlike PV, CA state incentives for industry are limited to DHW applications There are no credits for reductions in air pollutants, even in non-attainment areas Natural gas prices are low Industry demands rapid payback of investments In high product value industries, energy is not a large fraction of product manufacturing costs Industry is not familiar with solar thermal technology Solar needs to be integrated into existing plant 16

18 Hot water system economics Peak output of the solar field about 2 MW thermal (6.8 million Btu/hour) Estimated installed price ~ $1/W thermal $2.0 million Incentives 30% federal tax credit $600,000 Depreciation (85% of system price in $595, or spread over 5 years 2012+) at 35% combined state and federal tax rate CSI grant $500,000 Total Incentives $1,695,000 Net investment $305,000 Income Natural gas displacement ~4 therms/ft2 145,000 therms/yr Value ($1/therm natural gas price) $145,000/year 17

19 Policy Initiatives Expand the CSI-Thermal program beyond domestic hot water heating to processes such as steam generation and process heating that will help industry Create more ambition goals than a total of 9 million ft 2 of collectors by 2017 (less than the collector area of one 200 MW solar thermal electric plant) Increase funding beyond the $108 million that is allocated for multi-family/commercial applications Continue the program beyond 2017 if needed by market conditions Mandates for the replacement of natural gas by renewables the same as for electricity or renewable energy credit purchase agreements 18

20 SOLAR Thank you for your time Questions? 19