Many local markets in Michigan present significant opportunities for solar photovoltaic development due to high electricity rates. The presentation will cover the basics of going solar on your own property, and the future of solar in the regional energy mix.
Sponsored By:
Western Upper Peninsula Center for Science, Mathematics and Environmental Education, Michigan Tech Center for Science Outreach
Cosponsored by:
Lake Superior Stewardship Initiative, Michigan Tech Center for Water & Society, Keweenaw Unitarian Universalist Fellowship, and Keweenaw Land Trust
3. OCREA
ALGER DELTA
UPPCO
PRESQUE ISLE
WEPCO
GREAT LAKES
DTE ELECTRIC
ALPENA POWER
CONSUMERS
TRI-COUNTY
CHERRYLAND
MIDWEST…
THUMB
CLOVERLAND
XCEL
WPS
AEP
MI Average: $0.14/kWh
Source: MPSC Utility Company Annual
Reports 2013
MI AVERAGE RESIDENTIAL ELECTRIC RATES 2013
[$/KWH]
4. Average Residential Electricity Retail Rates
by State (2013)
State
Average Price
[$/kWh]
Hawaii $0.37
Houghton $0.21-$0.24
New York $0.19
Alaska $0.19
Connecticut $0.18
Vermont $0.18
New Hampshire $0.17
California $0.16
New England $0.16
Middle Atlantic $0.16
Massachusetts $0.16
New Jersey $0.16
Michigan $0.15 Source: www.eia.gov
20. Simple ROI Calculations for Houghton
• Daily Consumption / (Sun Hours * Derate
Factor)= 16.4/(3.8*0.8) = 5.4 [kW] System Size
• System Size*Cost Per kW = 5.4*$3,500
=$18,900 System Cost
• 30% of system costs = $18,900 –
30%*18,900 = $13,448
Federal Tax
Rebate
21. Simple ROI Calculations for Houghton
•Energy*Rates =
6000*0.19 = $1,140
Annual
Savings
•System Costs / Annual
Savings = 12 years
Payback
Period
24. Utility Fuel Source Summary
Fuel Source USA OCREA UPPCO Region
Coal 39.10% 63.80% 54.11% 59.43%
Nuclear 19.18% 23.10% 23.08% 25.36%
Gas 27.57% 5.50% 8.90% 9.77%
Oil 0.67% 0.10% 0.50% 0.55%
Hydroelectric 7.07% 3.40% 9.55% 0.65%
Biofuel 0.00% 0.00% 0.45% 0.49%
Biomass 0.92% 0.10% 0.41% 0.45%
Wind 4.11% 2.80% 2.50% 2.75%
Wood 0.48% 0.10% 0.44% 0.49%
Other 0.71% 1.10% 0.50% 0.44%
Solar 0.20% 0.00% 0.02% 0.02%
Source:
OCREA Fuel
Mix Report
Source:
MPSC
Regional
Average Fuel
Mix
Disclosure
Source: EIA
Total Power
Industry Fuel
Sources
25. Currently all MI utilities are on track to
meet RES Compliance*
Phased integration of renewables 50%
cheaper than new coal generation
facilities.
*Source: MPSC Report on RES Compliance
*Figure: MIRECS 2009-2013 Credits by Energy
Source
Impact of MI PA 295
26. Benefits of Renewables
Michigan Department of Energy, Labor & Economic Growth Report on
Green Jobs says renewable energy sector job creation = 3% of all private
sector employment in state
International Energy Agency Report on Energy Security says renewable
energy systems reduce supply disruptions and reliance on imported fuel.
27. Actual Quote: “The only green that matters,
is the color of my $$$$$”
(Obviously, not a philosopher)
28. PV Market Opportunity by Utility Electric Rates
OCREA
MI AVERAGE RESIDENTIAL ELECTRIC RATES 2013
ALGER DELTA
UPPCO
PRESQUE ISLE
WEPCO
GREAT LAKES
DTE ELECTRIC
ALPENA POWER
CONSUMERS
TRI-COUNTY
CHERRYLAND
MIDWEST…
THUMB
CLOVERLAND
XCEL
WPS
AEP
[$/KWH]
MI Average: $0.14/kWh
Source: MPSC Utility Company Annual
Reports 2013
29. PV Market Opportunity by Utility Electric Rate Increases
OCREA
ALGER DELTA
MI AVERAGE RESIDENTIAL ELECTRIC RATE
UPPCO
PRESQUE ISLE
WEPCO
GREAT LAKES
DTE ELECTRIC
ALPENA POWER
CONSUMERS
TRI-COUNTY
CHERRYLAND
MIDWEST ENERGY
THUMB
CLOVERLAND
XCEL
WPS
AEP
INCREASE 2001-2013
MI Average: 74%
Source: MPSC Utility Rates Summary
30. PV Market Opportunity by Average Annual Consumption
MI Average: 8MWh/Year
OCREA
ALGER DELTA
UPPCO
PRESQUE ISLE
WEPCO
GREAT LAKES
DTE ELECTRIC
ALPENA POWER
CONSUMERS
TRI-COUNTY
CHERRYLAND
MIDWEST ENERGY
THUMB
CLOVERLAND
XCEL
WPS
AEP
MI AVERAGE RESIDENTIAL ELECTRIC
CONSUMPTION 2013 [MWH/YEAR] Source: MPSC Utility Company Annual
Reports 2013
37. Simple Online Free Solar Calculator using Local Data
Collected Across Michigan:
You Enter:
1. Enter Monthly Electric Bill
2. Utility Name
Calculator shows:
• Monthly Bills Before and After Solar
• Size and Cost of Solar System
• Payback Period
• Annual Loan Payments
• Return on Investment
• Environmental Impact
38. Solar Calculator Link:
http://abhilashkantamneni.com/solar/
Complete Guidebook for Solar Link:
http://abhilashkantamneni.com/everything-you-ever-needed-
to-know-about-solar-energy-in-houghton/
43. Growth of Solar in Michigan
Large majority of installed net metered
customer generation is Solar.
Source: MPSC Annual Net Metering Report 2014
Figure: MPSC Figure: MPSC 2013 Net Metering Program - Installations 2013 Net Metering Program - Installed Capacity
44. Solar Market Penetration in Houghton
2013:-
~30kW
Summer
2014:
60kW
added
Fall 2015:
+200kW
expected.
45.
46. Electric Utility Markets are a
“Zero-Sum Game”
Rates = $$Generation + $$Transmission +
$$Distribution + $$Administration +
$$Return on Equity
47. Working Group
Recommendations
Expand Net
Metering to state
wide 50MW
Credit on net
generation
Credit on
generation
Source: MPSC Solar Working
Group Report, June 2014
62. What is GUEP? ($ 5,000,000)
•Quantitative (aggregate gas and electric consumption over 2 years)
•Qualitative (community engagement and involvement)
•Sustainability (planning for our energy future)
The $5 million GUEP challenges small- to medium-size towns, cities, and counties
to rethink their energy use and implement creative strategies to increase
efficiency.
70. Houghton County will be a model
for rural communities in creating
an affordable, sustainable, and
Houghton County will be a
model for rural communities
in creating an affordable,
sustainable, and community-driven
community-driven energy
landscape energy to landscape support a vibrant
to
regional economy and high
quality of life for all its members.
support a vibrant regional
economy and high quality of
life for all its members.