ON THE ROAD AHEAD, SOLAR

THERMAL WILL HELP THE U.S.

COPE WITH UNCERTAINTY
Why solar thermal?

Solar thermal is the most

competitive, widely
available, non-combustion
source for heating with
renewable energy
 Solar thermal makes
environmental sense
„ 2/3 of industry’s energy use is for process heat, and
1/3 of US energy use is for industry
„ Commercial and residential heating is also significant
„ Solar thermal can replaces combustion of natural
gas, oil, or coal, thereby avoiding emissions of NOx,
SO2, PM, Hg, CO, CO2
„ Solar thermal’s “embedded energy” is recovered in 2
years. Energy Star and CHP cannot break even.
„ Solar thermal avoids the mining, drilling, and
transportation associated with the fuel it displaces
„ Solar thermal collectors last 30 years or more and
use recyclable materials that have low toxicity
PM AND
OZONE
NON-
ATTAINMENT
DESIGNATED
COUNTIES
The need to reduce emissions
varies by state and county

Emissions avoided by solar

thermal have value for
emissions trading and as off-sets
in non-attainment areas
 SOLAR
COMPETITIVENESS
DEPENDS ON
ANNUAL SUNSHINE
AND ENERGY
COSTS

Arizona 2005 New Jersey 2005

Natural gas Price for Industry $7 to $8 /mmbtu $10 to $11 / mmbtu
Electricity Price for Industry $15.45 / mmbtu $25.14 / mmbtu

Annual Insolation fixed tilt=latitude 7 to 8 kwh/m2/yr 4 to 5 kwh/m2/yr

June Insolation tilt=Latitude 18 MJ/m2/day 11 MJ/m2/day

New Jersey has 40% less insolation than Arizona.

New Jersey’s natural gas is 40% more expensive per mmbtu
than Arizona’s. New Jersey’s electricity is 60 % more
expensive/kWh than Arizona’s. Both states have non-
attainment challenges solar thermal can serve.
 Solar thermal saves money

„ 30% federal tax credit in 2006 and 2007

„ 5 year accelerated depreciation
„ Hedge against energy shortages and high fuel prices
„ Satisfies some renewable portfolio standards
„ Can satisfy corporate energy and environmental
goals while saving money
„ Provides tradable emissions reductions, off-sets
„ Can be installed in lieu of paying certain fines
„ Lower operating and maintenance costs for heat
„ Many states have incentives
Solar thermal is a reliable hedge

„ Solar systems have a useful life of 25-35 years

„ Solar thermal provides a hedge against energy
shortages and higher prices for fuel
„ Medium and high temperature system paybacks with
current incentives are 5 to10 years, less with rising
energy prices
„ Low temperature applications have shorter paybacks
„ Maintenance costs are low and system availability
generally exceeds 98%
Comparison of solar thermal and
photovoltaic technology

„ Efficiency -- Solar thermal collectors are

4 to 5 times more efficient than
photovoltaic collectors converting sunlight
to usable energy
„ Cost -- Solar thermal collectors cost 3 to
4 times less per square foot of collector
area
„ PV emission reductions may be at a
power plant in another state, solar thermal
reductions are local
Financing makes it possible to
avoid large capital costs
„ Industrial Solar Technologies has been selling
heat from solar concentrators to large
commercial users for 20 years
„ Mondial Energy of Canada now meters and
sells solar thermal heat
„ Banks or investors can own the solar systems,
use the tax benefits, and lease equipment to
non-profits organizations, low profit enterprises,
and government
 Financial Developments
„ Federal tax credits make it reasonable for 3rd parties
to own and lease systems.
„ Btu meters facilitate 3rd party owned systems; 3rd
party can take advantage of emissions trading and
Renewable Energy Credits (RECs)
„ Low interest rates invite 3rd party ownership, thereby
expanding and avoiding capital investment by end
users
„ Capitalists/entrepreneurs and shareholders are
becoming enamored with renewable energy
„ Higher fuel prices are incentives for solar
Solar thermal produces tradable
emissions reductions
„ Renewable Energy Credits or Green Tags are
available for solar thermal based on fuel use
avoided
„ NOx, SO2, and CO2 emissions avoided can be
tradable if they are verifiable
„ Solar thermal can generate off-sets for sale in
non-attainment areas
„ Solar supplemental environmental projects can
be done in lieu of paying penalties for violating
environmental laws
Metrima and other Btu meters
measure energy delivered to
calculate avoided emissions
How They Work -- The TCT Metrima
BTU Meter measures thermal energy
delivered by monitoring the fluid inlet and
outlet temperature differential and the
volume of fluid passing through the
system. The measurement of the
temperature and flow calculates BTU
delivery and kWh saving. Additionally,
the Metrima provides users with
information on total gallons consumed,
volume/gallons per hour, system
operating temperatures, and total kWhth
generated.
Clear Skies Group from New York will soon offer a Btu
monitoring service to measure output for solar thermal utilities
and for other purposes. An Xtrax Meter will cost from $150 to
$600 and users will pay a modest monthly charge.
 Thermo Technologies
SMT 400 Controller

The SMT 400 has an internal

reusable memory which stores up
to nine months of solar history
(collector, tank temperatures and
solar energy gain). A sample is
taken every 10 minutes from each
of these readings. These are
displayed in graphical form to
illustrate the system performance.

The unit also records and plots Solar thermal system

daily readings for the most recent
8 weeks. It displays total monthly
controller captures
energy delivered for the last 6 and stores operating
months as a histogram based on an
internal algorithm for calculating it.
data
Btu meters

ISTEC Smart model BTU meters combine a flow meter and monitor in one unit that employs a chip
card reading system to transfers the BTU total from the meter to a computer for storage and
manipulation with spreadsheet or word processing programs. For small systems, the flow counter
is non-resettable and available with contact pulsers for remote reading or computer
interconnections.

The Smart ISTEC BTU Meters calculate energy consumption by multiplying the flow volume by the
difference in water temperature between the supply and return lines and display the BTU total on
an LCD counter. The Chip Card can store information from as many as 50 different meters, which
can include BTU meters, water meters, or any pulse meter with the Pulse to Chip Card Converter.
ISTEC ensures the highest level of accuracy by using Platinum temperature sensors and
microprocessor calculations.

ISTEC also has a Model 5202 remote Btu meter that measures energy for larger systems when
combined with separate flow meter. "SUPER-JET“ 1700, 1800 and 1900 Series flow meters are
multi-wing units with high reliability and great accuracy at lower cost. A
trickle flow indicator shows even the smallest water flow and the counter is
hermetically sealed to prevent condensation. The information from the
meters can be transferred to a computer for billing, performance monitoring
or statistical analysis.
The Model 7431 and Model 7437 BTU calculators
are used to measure individual energy consumption
in virtually any liquid heating/cooling system such
as apartment complexes, office buildings, hospitals,
colleges, and universities. The BTU system consists
of a Model 7431 or Model 7437 BTU calculator, a
supply temperature sensor, a return temperature
sensor, and a flowmeter/transmitter.
Sterling Planet is a trader that
S
t

buys and sells thermal RECs

O
Emission trading entities

„ Evolution Markets
(www.evomarkets.com_
„ Canton Fitzgerald
(www.emissionstrading.com)
„ Natsource (www.natsource.com)
„ Trexler Associates
(www.climateservices.com)
„ Sterling Planet (www.sterlingplanet.com)
States should encourage large
solar thermal installations

„ Fewer systems to administer lower

administrative costs (e.g., $1 million in MD,
capped at $2,000 per installation, means more
than 5,000 grant applications to be reviewed;
one large industrial plant = 5,000 residences)
„ More cost-effective – 1/3 to 1/2 the cost per
unit of energy collected
Solar applications for industry

• Boiler Make Up Water Heating

• Boiler Combustion Air Heating
• Ventilation Air Pre-Heating
• Backup Generator Heating
• Process Water or Air Heating
• Building HVAC (absorption or evaporation)
• Solar Daylighting in Buildings
• Remote power (e.g., parking lot lighting)
SOLAR COLLECTORS AND
HOT WATER STORAGE TANK

Solar Thermal Input

for Steam System
 Even with heat recovery, solar
improves energy efficiency

SOLAR HOT
WATER ENTRY
POINT
FLAT PLATE GLAZED
WATER HEATING
PANELS ARE
DOMINENT
TECHNOLOGY
FLAT PLATE SOLAR COLLECTORS FOR
BOILER COMBUSTION AIR HEATING
An American Solar Inc. air heating system can be used to pre-heat
ventilation air, furnish process heat, or preheat combustion air for
boilers. Technology being introduced can be glazed metal
absorbers or unglazed twin wall polymer. Glazed collectors are best
mounted on a south facing sloping roof. A new generation of the
technology will mount horizontally for flat roof installation.
American Solar systems will cost $10.00 to $15.00 per square foot
to install.

1 cubic foot per minute of air per sq ft of installed roof requiring 1 watt
of fan power delivers air at 45-50 degrees F above ambient conditions,
approximately 70 BTU/sq ft/hour during peak operating conditions.
65,000 –70,000 BTU/sq ft/yr for winter space heating use only (mid
latitudes) 100,000-150,000 BTU/sq ft/yr for year round heating use.
15 year delivered cost of energy ~ $4.00 per million BTU
 TWINWALL POLYMER
SOLAR AIR COLLECTOR,
UNGLAZED, FOR GENSET
HEATING
SAVINGS CALCULATIONS FOR
ILLINOIS SCOTT AIR FORCE BASE
Ten Year Savings $3,861.10
Five Year Savings $1,759.07
Early Systems Cost $2500
Incentive Net Cost $1264

Source: CBO 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CPI 0.027 2.4 1.9 2.1 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Electric NIST Index 0.97 0.95 0.94 0.93 0.94 0.94 0.94 0.95 0.95 0.95 0.96
Electricity Inflator 0.027 3.37 2.85 3.04 3.13 3.14 3.14 3.14 3.15 3.15 3.15 3.16
% Inflation 0.0337 0.0285 0.0304 0.0313 0.0314 0.0314 0.0314 0.0315 0.0315 0.0315 0.0316
Net Savings cpi & energy None $ 315.17 $ 324.75 $ 334.92 $ 345.44 $ 356.28 $ 367.47 $ 379.04 $ 390.98 $ 403.30 $ 416.04
Savings due to element life extension $ 40.00 $ 42.51 $ 45.18 $ 48.48 $ 51.53
Combined savings $ 315.17 $ 364.75 $ 334.92 $ 387.94 $ 356.28 $ 412.65 $ 379.04 $ 439.46 $ 403.30 $ 467.58
SOLAR HEATING GENSET WATER JACKETS
Solar thermal transpired
collectors

Preheating
Outdoor Ventilation Air
Ford Motor Company installed a 50,000 square foot SOLARWALL system on its
Buffalo, New York stamping plant. This particular installation covered the
SOLARWALL with a glazing material. 25 fans and 5500 feet of fabric ducting
deliver 350,000 cubic feet per minute of air to the building. This system cost
$615,000 over a decade ago, and was saving $194,000 per year when fuel was
cheaper.

A Federal Energy Management

Program report documented a GM
installation in Canada with 4520 ft2 of
SOLARWALL delivering 40,000 cfm.
The system cost $14,72 per ft2 to install
for a total of $66,530. Savings equaled
940 million Btu per year, 678 million
from the heated air, and 262 million by
recapturing heat loss from the wall. If
the HVAC system delivered energy cost
$9.00 per million Btu, the savings would
amount to $8460 per year. 10%
Federal investment incentive would
reduce the initial cost to less than
$50,000, and depreciation would make
the payback 5 to 6 years, or sooner.
PARABOLIC TROUGHS DELIVER
HIGHER TEMPERATURES MORE
EFFICIENTLY
Why troughs?

PARABOLIC TROUGH SYSTEMS ARE

CHEAPER PER SQUARE FOOT OF
COLLECTOR ARRAY TO INSTALL
THAN MEDIUM TEMPERATURE FLAT
PLATES AND EVACUATED TUBES.

CURRENT PRICE IS $45.00 PER

SQUARE FOOT. COSTS WILL DROP
WHEN REGULAR PRODUCTION OF
INDUSTRIAL PROCESS HEAT AND
COMMERCIAL SYSTEMS BEGINS.

EVEN THOUGH TROUGHS ONLY

CONVERT DIRECT BEAM SUNLIGHT
TO ENERGY, IN SUNNY CLIMATES,
TROUGHS DELIVER AS MUCH
ENERGY ANNUALLY AS FLAT PLATE
COLLECTORS DUE TO THEIR
SIGNIFICANTLY HIGHER EFFICIENCY
 SOLAR WATER HEATING TESTIMONIAL
FCI PHOENIX 900 kWth PARABOLIC TROUGH SYSTEM
“On a sunny day,the solar system delivers up to 50,000 gallons of hot water to
the institution,displacing approximately 4,000 kWh of electricity.

“On a monthly basis,the system delivers an overall average of 300 million

Btu/month,offsetting 89,000 kWh of electricity consumption and an estimated $5,600 of
energy costs.

“Operational benefits include maintaining temperatures for domestic hot water (in the
past the prison frequently ran out of hot water), reducing electricity peak demand for
water heating by more than 200 kW,and reducing maintenance and replacement parts
for the offset electric boilers.“We save a lot of money on electric water heater elements,
maintenance calls, and repairs,” says the facilities manager.“ [Plus,] the calls we’ve
gotten from the inmates about cold water have basically gone away.” Operation and
maintenance savings on the existing boilers are in addition to the reduced utility costs.
Furthermore, avoided emissions based on EPA eGRID 2000 factors for Arizona,
amount to:
589 tons/yr of CO
2,655 lbs/yr of SO2
2,358 lbs/yr of NOx “
Technical Developments

„ Flat plate manufacturers continue to explore

new materials to lower system costs and
improve cost performance
„ Solar concentrators for heating, already
cheaper per Btu than flat plate glazed panels,
will gain from production economies
„ Btu meters and automated data analysis will
verify and track energy savings and emissions
reductions at lower cost
„ Low-cost methods to heat air now exist
Can-do state governments…

„ Include solar thermal in renewable portfolio

standards
„ Use incentives – RECs, off-sets, emissions
trading, supplemental environmental projects,
carbon trading -- to spur investment
„ Base incentives on performance rather than
cost
„ Establish demand-side management programs
for natural gas and reward gas utilities for
customer efficiency gains they support
Can-do state governments also…

„ Make certain that air regulations, state

building codes, utility regulation, and
permitting do not unduly impede solar
„ Encourage industrial, commercial and
multi-family residential projects for
greater impact and cost-effectiveness
„ Demonstrate a wide variety of uses
„ Welcome out-of-state designers and
installers to establish the market quickly
Additional resources
„ http://www.eere.energy.gov (US DOE)
„ http://www.eere1.energy.gov (“US H2O”)
„ http://www.dsireusa.org/(state incentives)
„ http://www.acore.org/ (renewable energy)
„ http://www.seia.org/ (trade association)
„ http://www.ases.org/ (trade association)
„ http://www.mrsolar.com (design info)
„ http://www.solar-rating.org (rating
collectors)
„ http://www.fsec.ucf/edu/ (technical info)
 CONTACT INFORMATION
Carlo La Porta
Albert Nunez
Judy Kosovich
Capital Sun Group, Ltd
6503 81st Street
Cabin John, MD 20818
Office 301 229-0671
Cell 202 270-5000 (Albert)
Cell 202 257-9556 (Judy)
Fax 301 229-0434
Email: judykosovich@hotmail.com
capital.sun@verizon.net
solarnrgman@gmail.com
Web www.capitalsungroup.com