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Solar Energy: An Overview

EgyE 221 Solar Energy 1 Energy Engineering Program College of Engineering University of the Philippines, Diliman

Topic outline
Solar Energy Resource Solar Energy Applications Solar Energy Economics Solar Energy Policy

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What is solar energy and why is it of interest?

solar radiation electromagnetic radiation emitted by the sun, available anywhere on earth at least part of the year Can be primarily converted into useful forms of energy
heat electricity

Technical feasibility of conversion technologies depends on availability of the resource in a specific location

Solar Energy Resource

How much is there? What is the distribution? How much can be converted to useful energy?

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How much is there?

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How much is there?

Useful energy (exergy) in surface incident solar radiation, wind, hydro and geothermal[1] compared to global consumption - Energy Information Administration (in 2004, 447.605 Quadrillion btu/yr = 14.965 x 10^12 Watts)

Solar Data Measurement Sites in the Philippines*

PAGASA Solar Data, 1970recent. Data are not continuous with some missing years.

Univ of Lowell, 1991 Profile of Solar Insolation in the Philippines, early 1980s

*Cited in Assessment of Solar Resources in the Philippines, Task 7Bb Report, Philippine Renewable Energy Project, prepared by NREL under contract w USAID. Oct, 2000

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Solar Radiation Distribution in the Philippines*

*Reported in Assessment of Solar Resources in the Philippines, Task 7Bb Report, Philippine Renewable Energy Project, prepared by NREL under contract w USAID. Oct, 2000

How much capacity is installed?

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Solar Energy Applications

Solar Photovoltaic Calculators, other small electronic articles Street lighting, Community charging Home electrification Remote stations (weather, communications, etc...) Centralized power generation Solar Thermal
Solar water heating (home, pools, hospitals, hotels...) Solar space heating Solar space cooling Solar cooking Solar drying (agricultural products) Solar incubators (eggs, etc...) Solar thermal power generation

Solar Thermal Energy Economics

Comparative LifeCycle Cost Analysis: Electric Water Heater Natural Gas Water Heater Solar Water Heater

Electric Water Natural Gas Solar Water Solar Water Heater Water Heater Heater Heater w Rebates Annual Energy Produced kWh therm* Cost of fuel (1st year) $/kWh $/1000 cuft Energy Inflation Rate Installed Cost, $ Maintenance, $/mo Cost to Operate, $ 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year Total Cost of Energy Consumed Life Cycle Cost AFter 10 years 10 After 15 years 15 After 20 years 20 After 30 years 30 After 40 years 40 4300 0.11 6% 1,500 0 473 501.38 531.46 563.35 597.15 632.98 670.96 711.22 753.89 799.12 6234.52 7,734.52 12,509.53 18,899.58 38,894.52 74,702.41 12.5 10% 1500 0 250 275 302.5 332.75 366.03 402.63 442.89 487.18 535.90 589.49 3984.36 5,484.36 9,443.12 15,818.75 42,623.51 112,148.14 same 200 same same same

9000 2 0 0 0 0 0 0 0 0 0 0 0 9,240.00 9,360.00 9,480.00 9,720.00 9,960.00

5000 2 0 0 0 0 0 0 0 0 0 0 0 5,240.00 5,360.00 5,480.00 5,720.00 5,960.00

* 1 therm = 100 cu ft natural gas = 100,000 Btu = 105.5 MJ = 29.3 kWh

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Solar Energy Economics

Cash Flow Analysis for Solar Water Heater
Electric Heater Annual Cost Cost to Operate, $ 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year 11th year 473 501.38 531.46 563.35 597.15 632.98 670.96 711.22 753.89 799.12 847.07 Monthly Cost 39.42 41.78 44.29 46.95 49.76 52.75 55.91 59.27 62.82 66.59 70.59 Solar Water Heater w Rebate Monthly Monthly Cash Payments Flow Impact 55.51 -16.09 55.51 -13.73 55.51 -11.22 55.51 -8.56 55.51 -5.75 55.51 -2.76 55.51 0.40 55.51 3.76 55.51 7.32 55.51 11.09 0.00 70.59

Bank loan to pay for SWH: $ 5000 Bank interest: 6% equal monthly payments for 10 years

The Renewable Energy Act 2008

The Main benefits to be given to Renewable Energy developers are: Seven year income tax holiday Carbon credits generated from renewable energy sources will be free from taxes. A 10% corporate income tax, as against the regular 30%, is also provided once the income tax holiday expires. Energy self-sufficiency to 60% by 2010 from 56.6% in 2005, by tapping resources like solar, wind, hydropower, ocean and biomass energy Renewable energy facilities will also be given a 1.5% realty tax cap on original cost of equipment and facilities to produce renewable energy. The bill also prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable energy sources. Power generated from renewable energy sources will be value added taxexempt. A net metering scheme will give capable consumers the option to generate their own power. Net metering will allow renewable energy producers to earn from the power they contribute to the grid, and are also charged for electricity drawn from the grid.

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RE Act: Market Development

On-grid/Off-grid Development Mechanisms: Renewable Portfolio Standard
sets a minimum percentage of generation to be sourced from eligible RE sources contribute to the RE growth

Feed-in Tariff
guaranteed fixed price for electricity generated from RE sources for at least 12 years only those covered by RPS

Renewable Energy Market

Submarket of the WESM for trading RE certificates

RE Act: Market Development

On-grid/Off-grid Development Mechanism Off-grid RE development
Minimum percentage of annual generation from available RE resources Cash incentive to RE developers for missionary electrification

Priority and Must-Dispatch for Intermittent RE resources Connection facilities for RE-based power Payment of ancillary services

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RE Act: Production Stimuli

Production Incentives
Income tax holiday for 7 years Duty-free importation of RE machinery, equipment and materials within the first 10 years Net operating loss to be carried over the next 7 consecutive years 10% corporate tax tax exemption of carbon credits Tax credit on domestic capital equipment and services

Incentives for Feedstock Producers

Duty-free importation and VAT-exemption on all types of agricultural inputs, equipment and machinery

RE Act: Consumer Empowerment

Consumption Incentives
Zero percent VAT on sale of fuel generated from RE Green Energy Option allows end-users to use RE as their source of energy Net metering for RE to allow end-users who generate their own power to sell to the grid

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ERC approved feed-in tariffs for renewable energy generation sources

RE Resource Hydro Biomass Wind Solar *NREB ** ERC (July 2012) Proposed FIT* 6.15 7.00 10.37 17.95 Approved FIT** 5.90 6.63 8.53 9.68

10 50

RE Target Capacity Distribution

250

200

250

TOTAL: 760 MW Wind Solar Ocean

Hydro

Biomass

Data from: http://www.renewableenergyworld.com/rea/blog/post/2012/07/fit-now-out-in-the-philippines

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Homework Due: Nov 18, 2013

For a given capacity, find out and compute the capital and operating costs for a solar water heater, an LPG-based water heater and an electric water heater in the Philippine context. Compare the Life Cycle Costs and the Cash Flows. Explain your results and their significance to the utilization of solar water heaters here in the Philippines.

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