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Solar Energy Technologies Program

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Solar Energy Technologies Program ( solar-energy-technologies-program )

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Sources of thermal energy are varied, with natural-gas service common in most urban areas, fuel oil in parts of the Northeast, and propane in rural areas. All-electric buildings are also common. Demand for energy from conventional sources can be reduced through the use of building- integrated solar-energy systems. Because solar-electric systems can be connected to the utility, excess energy can be exported to the grid. Excess thermal energy produced by a building- integrated solar system is usually stored for later use. Benchmark Cost of Energy: In considering solar as an option for a building, builders and buyers will consider a number of factors, including economics, value, and aesthetics. Applicable solar technologies and some of the competing conventional sources are shown in Tables 2-3a and 2-3b. Solar-System Economics: For a grid-connected solar-electric system, the competing cost of energy is the retail electric rate. All of the energy produced by the system is used since excess power (not consumed by the building loads) is provided to the utility grid. If net metering is permitted (where the meter runs backwards when the building is producing more solar energy than it uses), then power is bought and sold at the portion of the full retail rate that is billed as a function of kWh consumed. Without net metering, the building owner may receive a much lower “avoided cost” rate for the electricity produced and pay full retail for the electricity used. These rates may vary during the day, if time-of-day metering is applied. The calculation of energy collected by a water-heating system is more complex, because the amount of energy used is a function of the load profile. For example, when demand exceeds the rate of collection of thermal energy by a solar water heater, all of the collected energy is used. When demand is lower than the collection rate, storage is charged. When storage is fully charged, for example, when a homeowner goes on vacation, no hot water is used and no conventional energy is displaced. The levelized cost of the offset energy is also more complex, because the cost and energy-conversion efficiency of the conventional source, such as a solar water heater, must be considered. Maintenance costs, scheduled or unscheduled, can have a major effect on system economics. Large systems generate enough energy to support significant maintenance. But for residential- scale PV and solar water heating systems, the value of energy is insufficient to support significant maintenance. For example, if $0.01/kWh were budgeted for maintenance in a 1-kW PV system, only about $20/year would be available for service calls. Thus, high reliability is important to good economic value in residential solar systems. For hybrid lighting systems, the LEC of the system includes the elements identified for other solar systems above, including the incremental cost of hybrid luminaries and controls. The LEC of the conventional alternative would include energy costs and the cost of labor and parts for more frequent replacement of lightbulbs required to obtain the equivalent level of illumination. Solar Energy Technologies Program Multi-Year Technical Plan 18

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