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

4. 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

5. 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!

6. 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 > $400 million utility bill savings 400,000 kW demand reduction 3 million tons GHG reduction > 5,000 job years $1 billion industry

7. 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)

8. 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

9. 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

10. Total kWh Reductions for Water Heating Compared to Other End Uses

11. Water Heating as a Percentage of Household Energy Use

12. Hot Water Energy Savings Versus Other End Uses

13. 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

14. 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