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Solar Photovoltaics in British Columbia a Scoping Review of Residential, Grid-Connected Systems

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Solar Photovoltaics in British Columbia a Scoping Review of Residential, Grid-Connected Systems Solar Photovoltaics in British Columbia A Scoping Review of Residential, Grid-Connected Systems by SEAN TYNAN A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS (PLANNING) in THE FACULTY OF GRADUATE STUDIES School of Community and Regional Planning We accept this project as conforming to the required standard …………………………………………………………….. …………………………………………………………….. …………………………………………………………….. THE UNIVERSITY OF BRITISH COLUMBIA Vancouver April, 2010 © Sean Tynan, 2010 Abstract This document provides information regarding recent developments in small-scale residential, grid-connected photovoltaic systems. The purpose of the document is three-fold: to explore the current status and potential of these systems within the Province of British Columbia, to identify the major barriers to PV systems, and to examine the key policy interventions that would be required to bring about widespread uptake of these systems. Research was conducted primarily through a review of the literature. This information was supplemented through a market survey and interviews with key informants from both the public and private sector. The document contains two substantive findings. Firstly, there are environmental benefits (greenhouse gas reductions) that will result from the uptake of residential PV systems within the Province. Secondly, cost is by far the largest barrier to PV system uptake. A major policy intervention to rebalance the economics of PV systems in BC would be required to support their widespread adoption within the next decade. Economic interventions to directly subsidize solar PV would likely be expensive relative to other forms of renewable energy in BC, and are therefore unlikely to be justifiable at present. If the price of PV systems reduces sufficiently over time, such measures could be considered. Over the shorter term, then, policies which support PV as well as other forms of renewable energy are recommended. ii Table of Contents Abstract........................................................................................................................i Executive Summary ....................................................................................................iii Definitions ................................................................................................................ viii 1. Introduction.............................................................................................................1 2. Background..............................................................................................................4 Technology and Characteristics of Solar PV...................................................................................................4 Policy Context in British Columbia.....................................................................................................................9 Goals and Objectives .................................................................................................................................................9 Current Support for Solar Energy in BC........................................................................................................11 3. Solar Resources in British Columbia........................................................................13 Available Solar Energy: Regional Scale ......................................................................................................... 13 Winter and Solar Availability ............................................................................................................................ 15 Shading and Solar Access .................................................................................................................................... 15 Estimating Residential PV Potential in British Columbia...................................................................... 16 4. Environmental Impacts of Residential Solar Photovoltaics in British Columbia .......17 Greenhouse Gas Emissions Profile for Residential Solar PV................................................................ 17 Emissions from status quo grid electricity: BC’s “Clean” Hydropower........................................... 20 Other Environment Considerations: Toxins and Recycling ................................................................. 23 5. The Economics of Residential Solar PV Systems in British Columbia .......................28 Trends in PV Module Pricing in Canada........................................................................................................ 28 Current Market Pricing for Solar PV Systems in BC................................................................................. 29 PV Cost Forecast...................................................................................................................................................... 37 Changing the Economics of Solar: Rate Structures, Feed-in Tarrifs, and Financing.................. 38 Peak Demand, Deferred Infrastructure Costs, and Time of Use Rate Structures ........................38 Feed-in Tariffs...........................................................................................................................................................41 6. Local Government: Planning and Regulatory Powers for Promoting Solar PV .........44 Zoning to Promote Solar Access and Solar PV Systems ......................................................................... 45 Development Permit Areas (DPAs) and Solar Access............................................................................. 45 Educational Tools ................................................................................................................................................... 47 Other Tools................................................................................................................................................................ 47 Green Building Standards and Solar PV: LEED, Built Green, and R-2000...................................... 48 7. Conclusions and Recommendations .......................................................................50 Appendix A: The Grid Interconnection Process and Solar PV in British Columbia........53 Electrical Permits & Fees .....................................................................................................................................53 Steps for Homeowners to Install and Operate a Grid-Connected PV System ................................54 System Maintenance and Warranties ............................................................................................................55 Appendix B: Market Survey of PV Systems in BC ........................................................57 Bibliography ..............................................................................................................62 [Solar Photovoltaics in BC: A Scoping Review of Residential, Grid-Connected Systems] iii Executive Summary Solar photovoltaics (PV) can produce clean electrical energy directly from sunlight. This rapidly evolving technology is receiving increasing support from governments in other jurisdictions, most recently in Ontario. A growing segment of the PV market consists of small-scale, residential PV systems that can input power into the existing electrical grid. This document was prepared for the Knowledge and Information Services Branch of the Province of British Columbia. The document evaluates the potential of grid- connected residential PV installations to meet key Provincial objectives for energy independence and greenhouse gas reduction, and explores some of the policy interventions that would likely be required to stimulate PV uptake. The document updates the reader on developments in residential PV technology, assesses the environmental impact of PV systems, and explores economic barriers to PV uptake. A brief exploration of the relationship between local government regulatory powers, solar access, and solar PV systems is also included. Solar PV Technology Description Solar PV technologies for residential applications typically fall into one of two categories: conventional silicon panels, or ‘thin-film’ technologies. Thin-film technologies use far less material and energy in their manufacture, thereby reducing greenhouse gas emissions associated with panel production. Although thin-film represents an increasing market share for residential PV systems, conventional silicon panels still dominate the market at present. Both conventional silicon and thin-film photovoltaic panels may be integrated directly into building materials, such as facades, rooftops, or windows. These types of PV systems are called Building Integrated Photovoltaics (BIPV). By replacing conventional building materials, BIPV can offset costs while generating electricity. Other emerging technologies include organic solar cells and polymer-based solar cells, which can even be applied as a “solar paint”. If they perform as promised they may have the potential to significantly reduce costs over time, but these technologies are still in the development stage and are likely years from commercialization. iv Relevant Provincial Objectives The Province of British Columbia has committed to reduce greenhouse gas emissions 33% by 2020 and to become self-sufficient in energy production by 2016. The two objectives are complementary as BC currently imports a significant portion of its power from other jurisdictions that use non-renewable
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