[Watchdogs] Solar power as cheap as from the grid- new panels achieve "grid parity"

Sat Jul 2 20:17:32 CDT 2011

I would have hoped that you all had gone to the rate workshop we had last
month where PEC talked about all fo the parts that go into our rates.

Let me steer you towards the explanation of the Beat the Peak program, which
you can find here:
http://pec.coop/Home/Savings_And_Conservation/beatthepeak.aspx

PEC is starting a program called Together We Can Beat The Peak that
encourages members to team up with their Co-op in an effort to help lower
our power supply costs.

Click here<http://pec.coop/Home/ResidentialMembers/ManageAccounts/AccountPreferences/AccountPreference.aspx>
 to join us and help Beat the Peak today *(registration required)*. It only
takes a minute.

As the graph below shows, the price that PEC pays for power fluctuates over
the course of a day, and PEC pays a much higher price for power between 2-6
p.m., from June through September. That is when the demand for electricity
reaches its peak.

  <http://pec.coop/Libraries/PDFs/power_costs.sflb.ashx>

*Click on image to enlarge*

In 2010, the cost of power accounted for 68 percent of PEC's total operating
expenses. By working together, PEC and its members can Beat the Peak by
reducing the power consumed during those peak-demand hours.

Each member can Beat the Peak by making some simple changes at home such as:

   - Raising the thermostat in your home by 3 degrees.
      - Shifting your use of hot water away from the peak-demand hours.
      - Avoiding using major appliances between the peak hours of 2-6 p.m.

*If every member shifts two kilowatt-hours of electric use to an off-peak
time every day, PEC estimates it can save more than $2 million between June
and September.*
If together, the membership and the Co-op succeed in reducing PEC's power
costs, we can pass these savings on to you.

Since solar produces best at peak times, it would be advantageous to have
them decreasing demand when our power costs are 300% higher.  After the
initial investment is paid for, they continue to produce dividends for the
co-op, making them far more valuable in the long term. As David pointed out,
the payback for a solar system can be as little as 2-4 years, but is
generally closer to 10. Compare that to capitalizing a natural gas power
plant, and the costs are generally closer to 30 years.

As for owning our own power, it is an entirely different thing for the co-op
to own a power plant and for a co-op owner member to have solar panels on
their rooftops. For one thing, proximity to power plants generally depresses
property values, while a study done a few months ago in the CA real estate
market showed that, on average, a $10,000 solar system increased the market
value of the home by $20,000 - $30,000.

So, achieving grid parity is step 1.  Step 2 is creating an economy of scale
to insure that enough panels are deployed to significantly impact peak
demand, because a solar program doesn't make sense unless we're talking in
the dozens, or even hundreds of megawatts.   Notice San Antonio gearing up
similar large-scale programs.  There's a reason for that-- because it makes
financial sense.

On Sat, Jul 2, 2011 at 7:12 PM, David Lambing <user261483 at yahoo.com> wrote:

> Milton, my desire for solar energy (my house only, not a whole network) is
> because I live on a fixed income.
> I only worked for the State for six years so my retirement check is only
> $548.  My light bill this month is half
> of that.  My friend that had the solar panels installed by Austin Energy
> broke even on the cost for his system
> three years ago.  Now his electric bill is $40 to $50 a month.  I would be
> willing to go in debt now to know
> that in four or five years I'd have a light bill like that.  With PEC I'll
> never have that option.  We'll all be paying
> for Bernie's $16,000 retirement check forever!!
>
> Ray Lambing
> ------------------------------
> *From:* Milton Hawkins <milton.hawkins at gmail.com>
> *To:* Merle Moden <mlmoden at gmail.com>
> *Cc:* R.B. Sloan <rbsloan.ceo at peci.com>; Watchdogs <watchdogs at pec4u.org>
> *Sent:* Saturday, July 2, 2011 5:42 PM
> *Subject:* [Watchdogs] Solar power as cheap as from the grid- new panels
> achieve "grid parity"
>
> I'm eager to hear Andy's response to your assumption, Merle.  Are we being
> set up to bear the expense of even more incentives and rebates, plus the
> expense of running a loan operation and absorbing bad loans?
>
> ("I assume that you meant that these lower costs for solar panels will
> provide the impetus for the *PEC to subsidize these costs, or provide
> low-interest loans* for member-owners choosing to install solar panels." -
> Merle's assumption, with my emphasis on the suggested use of member-owners'
> money)
>
> ---------- Forwarded message ----------
> From: *Merle L. Moden* <mlmoden at gmail.com>
> Date: Sat, Jul 2, 2011 at 5:14 PM
> Subject: Re: [Watchdogs] Solar power as cheap as from the grid- new panels
> achieve "grid parity"
> To: Andy Wilson <andy.citizen at gmail.com>
> Cc: Watchdogs <watchdogs at pec4u.org>
>
>
> **
> Andy:
>
> Although a few provisions of the LCRA contract have become known, the
> payments amounts in the LCRA contract regarding demand charges remain a
> secret, as far as I know.  Do you have information about the prices we pay
> for peak energy?  If so, please share those numbers with the Watchdogs.  I
> have requested and have been refused any information about the terms of the
> LCRA contract.
>
> This secrecy has been an impediment to any meaningful cost comparisons
> among the various energy sources.
>
> You say that this development will allow PEC member-owners to own their own
> power.  PEC member-owners have always had the opportunity to own their own
> power.  I assume that you meant that these lower costs for solar panels will
> provide the impetus for the PEC to subsidize these costs, or provide
> low-interest loans for member-owners choosing to install solar panels.
>
> Thanks.
>
> Mr. Merle L. Moden
> 1111 Thompson Ranch Road
> Wimberley, Texas 78676-6129512 847-1335
>
>
> On 7/1/2011 1:25 PM, Andy Wilson wrote:
>
> Solar power has long been assailed as "too expensive", but QSolar will
> begin shipping panels to California later this month that achieve "grid
> parity"-- meaning they will produce electricity for as cheap as the average
> market cost. Now, in this case it's the average market cost in California,
> which is more expensive. The point is that for less than what we pay LCRA
> for our peak energy, co-op member-owners can truly own their own power.
>
>  To get to that cost, PEC would probably have to buy quite a few panels to
> get the bulk discount.  However, with San Antonio and Austin's solar
> programs, and everyone from Bluebonnet to San Marcos to Georgetown looking
> at alternatives, this might be something where all of the public power
> entities up and down the I-35 corridor work together to buy in bulk from the
> same supplier to bring costs down.  This is an example of the "cooperation
> among cooperatives" principle I think that is worth exploring.
>
>  ~~Andy
>
>
> http://www.electroiq.com/photovoltaics/2011/06/1443360111/qsolar-will-achieve-grid-parity-on-a-commercial-scale-with-crystalline-silicon-and-plans-to-start-sh.html?cmpid=ENLPVTimesJune302011
>
>    QSolar Will Achieve Grid Parity on a Commercial Scale with Crystalline
> Silicon and Plans to Start Shipments of Kruciwatt PV Panels in Q4 2011
>     QSolar Limited ("QSolar" or the "Company")(CNSX: QSL) is pleased to
> announce that it will be the first solar company in the world to achieve
> grid parity in the manufacturing of high efficiency crystalline silicon
> solar panels on a commercial scale. ... The initial production run that will
> achieve grid parity status will be to fulfil the $75.4 million order that
> was previously announced for Commercial Solar Design Inc. of California
> (April 21, 2011).
>  Andreas Tapakoudes, President & CEO of QSolar commented, *"The ultimate
> objective for solar industry participants is to achieve grid parity, which
> means that they can produce electricity from the sun at the same overall
> cost as the commercially available cost of electricity produced by fossil
> fuels. Until now this objective has not been achieved on a commercial scale
> of production.* With QSolar's proprietary Kruciwatt wafer manufacturing
> process, the Company has already achieved grid parity in the laboratory and
> is now working on scaling up its production to commercial quantities. The
> Company believes this grid parity status will be achieved in Q4 this year.
> With the manufacturing cost of our Kruciwatt panels below $0.74/W, and in
> view of the fact that commercially available panels are selling at around
> $1.50/W in volume quantities, QSolar will be in an extremely strong position
> in terms of market penetration and operating profits."
>
>
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>
> --
> Milton Hawkins  milton.hawkins at gmail.com
> P.O. Box 1502
> Johnson City, Texas 78636-1502
> 830-868-9075
>
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