Solar Water Heating as a Green House Gas Reduction and Energy Conservation Strategy

1
Solar Water Heating as a Green House Gas
Reduction and Energy Conservation Strategy

• Florida Solar Energy Industries Association and
  Florida Solar Energy Research and Education
  Foundation

2
Solar Water Heating

• One solar water heater creates the equivalent of
  2800 kWh per year, or
• One solar water heater saves 2800 kWh per year
• Solar water heaters are a hybrid they generate
  energy or they conserve energy
• The best of both worlds!

3
Floridas Historical Use of Solar Water Heating

• The only way to heat water in the early 1900s
• Resurgence in 1978-1985 as a result of tax
  credits and FPL rebates
• Virtually eliminated from the market until 2006
  with the rebirth of tax credits, state rebate,
  and utility rebates

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Solar Water Heatings Green House Gas Reduction
Potential

• Each solar water heater installed in Florida can
  offset green house gases each and every year of
  operation
• 4046 pounds of Carbon Dioxide
• 11.9 pounds of Sulfur Dioxide
• 7 pounds of Nitrogen Oxide

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Cumulative Value From 1979 to 2006

• Solar Water Heater has a design life of 20 years
• Florida residents installed 136,00 solar water
  heaters from 1978 through 2006
• 500 million industry
• Offset nearly 100 tons of Green House Gases
• In a declining market!

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Solar Water Heating in an RPS

• Solar industry has recommended a 2 solar thermal
  set aside in the 20 Renewable Portfolio Standard
  by 2020 proposed by the Governor
• Under that scenario, 262,570 solar water heaters
  are installed by 2020 (residential share only,
  does not include commercial)
• 13 of the 2 solar thermal share (.26 RPS)
• 4 billion kWh saved
• gt 400 million utility bill savings
• 400,000 kW demand reduction
• 3 million tons GHG reduction
• gt 5,000 job years
• 1 billion industry

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Solar Water Heating in a Robust Market

• Consider solar water heating as standard in new
  home construction
• 150,000 home starts (single family only)
• Assume 80 feasible for solar
• By 2020, 1,440,000 systems would be installed
• Does not include the retrofit market (with a 4.4
  million single family housing inventory)

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Solar Water Heating in a Robust Market

• 26 thousand GWh saved
• 46 of 20 RPS (9 RPS with just residential
  solar water heating in new construction)
• 3 billion utility bill savings
• 2.2 GW demand reduction
• 19 million tons GHG reduction
• 30,000 job years
• 6 million industry

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How Do We Get There?

• Florida Energy Code has not achieved significant
  energy savings for water heating (only 3
  decrease)
• In fact, the percentage of household energy use
  attributed to heating water has increased from
  11 under the 1979 code to 15 under the current
  code

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Total kWh Reductions for Water Heating Compared
to Other End Uses
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Water Heating as a Percentage of Household Energy
Use
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Hot Water Energy Savings Versus Other End Uses
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Solar Water Heating as a Demand Side Management
Measure

• Solar Water Heating generally excluded as it does
  not pass the RIM test
• Why? Lost revenues due to significant energy
  savings
• Progress Energy combined SDHW with Load
  Management to pass RIM
• Lakeland Electric sells solar energy to customers
  to pass RIM
• FPL provided a rebate with PSC approval in spite
  of the fact that it does not pass RIM as good
  public policy

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Recommendations

• Encourage solar in new construction
• Review the Florida Energy Code to determine why
  energy reductions for water heating have not been
  achieved
• Create a Public Benefits Fund to provide
  financial incentives
• Eliminate the RIM Test for utility solar water
  heating programs
• Reinstate solar property tax exemption
• Require solar water heating on state buildings
  (owned/leased, new/existing) and all public
  educational facilities (new/existing)
• Require solar water heaters in state funded or
  administered affordable housing programs
• Provide dedicated budget for solar in the
  weatherization assistance program
• Increase commercial sector use of solar water
  heating