1. Solar Energy Development Creating a Sustainable Energy Economy Presented to: VT Community Development Association – March 14, 2007

2. End of an Era 100 years of exponential growth in fossil fuel use will soon be ending due to environmental and economic constraints

3. Escalating Electric Rates Source: U.S. Dept of Energy Northeast utility electric rates are escalating rapidly due increased oil and natural gas prices.

4. The burning of fossil fuels IS having a large impact on Vermont  Acid Rain  Mercury  Global Warming

5. The Solar Energy Resource In a single one hour period, the sun sends enough energy to our planet to meet all of our energy needs for an entire year. 100,000 kWh a year of solar energy falls on the average house roof in the Northeast. The availability and cost of delivering energy from the sun to our planet has remained amazingly constant for 4 billion years.

6. Solar Energy Development Clear Choice for Environment & Economy Zero emissions/zero greenhouse gases Reduces fossil & nuclear fuel use Silent Produced domestically Accessible to all Lowest life-cycle cost

7. Solar technology is affordable and cost- effective in Vermont, but there are significant market barriers to widespread adoption Solar electric and thermal system Annual energy savings – 4,000 kWh Weybridge, VT

8. What is Holding Solar Energy Back? Access to Information - poor “Solar doesn’t work in Vermont” Access to Capital - limited 95% of a system’s life-cycle cost is up front Correct price signals – non-existent Fossil & nuclear power is heavily subsidized

9. Education & Community Awareness bring solar to our public places University of Vermont 5 kW photovoltaic array

10. School Power…Naturally Program in NY VT could be the leader in solar education Students in NY schools can now learn firsthand the many uses of solar energy. VT could learn a lesson or two. Darrow School New Lebanon, NY

11. Access to capital is a major barrier Some families have the capital to make a smart 30-year investment in solar. Most don’t. A state low-interest revolving loan fund could solve this.

12. Solar investments are very low risk 25-year panel warranty No moving parts Predictable output Suitable for state investment funds 50 kW grid-intertie PV system Stonyfield Farm, Londonderry, NH

13. Get Price Signal Right Expand Net Metering Solar generation offsets “peak” expensive power Incentives for solar investment are necessary Initiate a long-term program that is sustainable and predictable that will ramp up in-state industry. Bring life-cycle costing to investment decision Government and private investment decisions need to be informed by life-cycle analysis.

14. Life-Cycle Analysis – An Example Cost Item Electric LPG Solar Capital Cost $750 $750 $6,250* First year fuel cost $850 $860 $250 25-yr fuel cost** $18,760 $18,980 $5,520 25-yr maintenance** $550 $550 $1,500 Total Life Cycle Cost $20,910 $21,140 $13,520 * includes $750 for back-up LPG hot water heater, less state incentives ** present worth based on inflation at 4%, discount rate at 7% ** prices based on January 2006 average cost for New England

15. Southern VT Recreation Center, Springfield VT 130 kW thermal array saves $15,000 a year in fuel Promote Large Scale Commercial Systems Economies of scale Educate businesses Develop market for in-state manufacturing There are no commercial scale incentives now in VT

16. Possibility for VT Solar Manufacturing Flat Plate Collectors Mounting systems Inverters Controls Data Acquisition Thermodynamics LTD Halifax, NS

17. Quiz What state has the highest per capita number of solar installers? In what state was the first New England solar collector manufacturer located? The first solar system installed on the White House came from which state?