1. F LORIDA S OLAR E NERGY C ENTER Creating Energy Independence Since 1975 A Research Institute of the University of Central Florida 1 The Renewable Portfolio --- Defined & Refined Florida Public Service Commission Workshop July 26, 2007

2. 2 Definition by Technology Absolute method Traditional method Focus on present or near-term technology Generally exclusive, Specifically inclusive 366.91(b) "Renewable energy" means electrical energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations. 377.803(6) "Renewable energy" means electrical, mechanical or thermal energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen, biomass, solar energy, geothermal energy, wind energy, ocean energy, waste heat, or hydroelectric power.

3. 3 Definition by Attribute Flexible method, emphasis on Results Allows future technologies Generally inclusive, Specifically exclusive Special riders to include a target method Specific set-aside for favored attributes For purposes of this standard, Renewable Energy" means electrical energy produced (or directly and quantifiably displaced) from a method with: 1] No extraneous limits on the prime energy source, 2] No environmental detriments from prime energy source acquisition, 3] No net release of carbon dioxide or other pollutants. Electric energy derived from Acoustic Kryptonite Hyperdrive Technology does not qualify as renewable energy under this standard. Reductions (from 2007) by utilities in system operations energy losses also qualify as renewable energy under this standard. No less than ten percent (20%) of the energy required by this standard shall be derived directly from solar energy. For Example:

4. 4 Attributes: Electric Energy Production Technologies Technology Prime Source Constraint?* Environmental Detriment from Acquisition?* Net Release Pollutant?* PhotovoltaicNo Solar (or Waste) Thermal-ElectricNo WindNo Photochemical, Photothermal (H 2 )No Open Loop Biomass/gasNo Run of River HydroNo Landfill GasNo Comb Heat/ Power – waste electricityNo HydroNoYesNo Municipal Solid WasteNo ?? Closed Loop Biomass/gasYes No IGCC w/ SequestrationYes No Ocean CurrentNo??No NuclearYes??No * My opinion Generally no issues Some issues

5. 5 Attributes: Electric Energy Displacement Technologies Technology Prime Source Constraint?* Environmental Detriment from Acquisition?* Net Release Pollutant?* Solar Thermal Domestic Hot Water (SDHW) No Solar Assist Adsorption Chilling No Active Solar Thermal Space Heating No Solar Process Heat (product drying, etc) No * My opinion

6. 6 Utility Efficiency Technologies Technology Prime Source Constraint? Environmental Detriment from Acquisition? Net Release Pollutant? Low-Loss Distr TransfN/A HPS-LED St Light ConvN/A Distributed GenerationN/A Attributes not applicable…

7. 7 Renewables Refined After initial screen, shades of green…...with a strong focus on solar and wind energy... -- EXECUTIVE ORDER NUMBER 07-127

8. 8 Solar Energy: 2020 Single-Family Residential Economic Installations Only – no subsidies Assumed Net Energy for Load is 340,000 GWH Quick Calculations - Reasonable Assumptions Solar Thermal (DHW) brings 2% of NEL Solar Photovoltaic (PV) brings 2% of NEL 4% NEL (20% of RPS) is Feasible and Economic!

9. 9 Solar Energy: 2020 -- Other Opportunities PV Parity expected 2010-2012 & No Real Limits on Land Commercial PV (Big Box, malls, attractions, etc) State & Local Govt rooftops PV (schools, offices, conv centers) Parking Canopies PV (Shade asphalt for fee, market advantage) Linear PV farms: edge-of Transmission RoW Linear PV farms: edge-of & median-barrier, Interstate Highways PV Farms: Restricted-use (airports, brownfields, retention ponds) Rooftop Leasing: the 4&20 Plan-individual & utility joint venture Natural Gas continues to climb Solar Thermal- Commercial (hotels, dorms, food processing) Reconfigure Multi-Family: Common SDHW sys, metered to units ST Assist for Adsorption Chilling – BIG potential in FL! More than 10% of NEL is Likely

10. 10 Recommendation Statutory and Regulatory Definition by Attribute Technology Approval by Simple, Streamlined Regulatory Process Category or Scenario Approval Appeal & Dispute Resolution, etc. Monitoring, Verification and Reporting by state agency 20% of RPS as Solar Energy Set-Aside (Our Suggested Definition of the Definition Process)

11. 11 Results-Based Realities Awareness and Acceptance of Solar Thermal Energy as a major RPS resource for Florida

12. 12 PERCEPTION BECAUSE etc, etc…

13. 13 REALITY BECAUSE 1 KWH T = 1 KWH E 1 KWH = 1 KWH EVERY DAY, EVERY WAY

14. 14 ENERGY 1 kilowatthour (kWh) is the Energy needed to raise the Temperature of 409 gal of Water by 1 o F

15. 15 Given: Result: Subdivision w/o gas = Electric water heaters Solar-Thermal WH = Less electric energy Metered Solar WH = Measured, verified displacement of electric energy or: 1.0 kWh STEEEC = * 1.0 kWh ELEC ! * Actually, 1.0 kWh STEEEC > 1.0 kWh ELEC (Ask me why)

16. 16 Equality !! -- Consider Normal PV: Solar Energy Thermal Energy to Tap Thermal Energy Electric Energy Water Heater PV Panel (AC Module) M M M Thermal Energy Meter Electric Energy Meter 5100 kWh/yr 2940 kWh/yr D Green Energy Display Electric Energy from Grid Green Energy 3060 kWh/yr Green Energy 6000 kWh/yr 900 kWh/yr Standby Losses

17. 17 Now Place the Green Shroud: Solar Energy Thermal Energy to Tap Thermal Energy Electric Energy Water Heater PV Panel M M M Thermal Energy Meter Electric Energy Meter 5100 kWh/yr 2940 kWh/yr D Green Energy Display Electric Energy from Grid Green Energy 3060 kWh/yr Green Energy 6000 kWh/yr 900 kWh/yr Standby Losses Pay no attention to the man behind the curtain..

18. 18 Then Reveal: Solar Energy Thermal Energy to Tap Thermal Energy Electric Energy Water Heater Thermal Panel MM Thermal Energy Meter Electric Energy Meter 5100 kWh/yr 2940 kWh/yr D Green Energy Display Electric Energy from Grid Green Energy 3060 kWh/yr Green Energy + - 900 kWh/yr Standby Losses (Undisputed, 100%, Grade A, Prime Choice)

19. 19 Submitted for your consideration: If the Inputs & Outputs are IDENTICAL, any two systems are EQUIVALENT-- It doesnt matter what is in the Black Box… How do we know they identical? – We Measure the All-Important METER: ( Output Displayed in kWh )

20. 20 Concept Established– other direct electric offsets Solar Thermal assist for Adsorption Chilling Solar Thermal space heat Solar Thermal Process Heat

21. 21 RPS & Solar Water Heating – now 7 states Source: DSIRE, North Carolina Solar Center & Interstate Renewable Energy Council

22. 22 Florida Solar Energy Center Creating Energy Independence Since 1975 A Research Institute of the University of Central Florida

23. 23 For Further Information Bob Reedy, Director – Solar Energy Division reedy@fsec.ucf.edu (321) 638-1470 Philip Fairey, Deputy Director pfairey@fsec.ucf.edu (321) 638-1005 pfairey@fsec.ucf.edu James M. Fenton, Director jfenton@fsec.ucf.edu (321) 638-1002 jfenton@fsec.ucf.edu Main FSEC web site www.fsec.ucf.edu www.fsec.ucf.edu

24. 24 Solar Thermal-to-Electric Energy Equivalency Credit (STEEEC): A standard unit of used and useful thermal energy generated from solar sources, directly displacing thermal energy otherwise generated from electric sources, and equal to the amount of electric energy displaced Appendix A: The Language

25. When Selling Energy... Feedback to the Host Detect malfunction Quantify pollution reduction Feedback to the Owner (if different) Detect malfunction Verify return on investment Record of generated STEECCs Feedback to the Green Power Market Certify Green Power and Green Tags The Meter is Critical !!

26. 26 the All-Important METER: Important Note: Output Displayed in kWH !!

27. 27 Meter Costs are falling No fuel burned Allows no more than approach Owner choice: more accurate meters for more credit Utility Scale Volumes Solid State In-line flow meters coming available No maintenance, no decline in registration Low Cost Temperature Sensors Read-by-email-digicam method (w/ spot audit) New FSEC Meter Method Modeling of Standby Losses One more Temperature sensor (ambient) Eliminates electric meter of backup source