Integrated Balance of System Solution: The Next Solar Cost Savings Frontier

Phil is First Green Energy's go to expert on all things Solar!  Great read for those interested in the solar industry. Reducing BoS field labor and material costs on projects are critical to achieving competitive system performance and pricing.

By Phil Winters As PV modules decline in price, the focus on cost savings increasingly turns to the Balance of Systems (BoS). Though material costs of BoS continue to rise (copper, aluminum, steel, etc.), costs savings are derived primarily from the engineered integration of the BOS system which can reduce labor and materials on the job site. Two recent studies concluded that BoS costs will likely exceed the costs of PV modules in the near term, becoming the highest cost portion of a solar system (this is including the mounting system, which we are including in BoS descriptions). According to GTM research, “…attention from developers and EPCs will increasingly be placed on a project’s balance-of-system (BoS) costs. Historically, innovation in the BoS space has been somewhat limited, given its smaller share of the total system. However, BoS costs will represent more than half of total project costs by 2012, and many BoS players are beginning to integrate their offerings into full-service component packages and positioning for greater share in the market via meaningful economic gains.” As well, the recently launched U.S. Department of Energy SunShot Initiative ‘aims to dramatically decrease the total costs of solar energy systems by 75% before the end of the decade’. Much of the focus of this initiative is on BoS and labor savings advancements. During the last decade, we have seen a series of shifts in the PV landscape. In 2002, the solar industry was squarely focused on the modules while the inverter was considered a mysterious box with a limited 3 year warranty that could be sourced from only a handful of suppliers in the market. Slowly the focus changed to the inverter, which now comes with standard 10 and 20 year warranties, and boasts thousands of suppliers globally. Until recently, nary a thought was given to the BoS, with integrators frequently building their own mounting systems out of strut, stuffing their own combiner boxes and cobbling together their BoS solutions from a series of manufacturers via their local electrical distributor. Thankfully, the industry has matured and many of these ‘home-made’ solutions have abated over time with suppliers like Eaton stepping in with high-quality, volume manufacturing. This has contributed to the decreasing installed cost of PV. There is, however, much to improve upon where significant BoS cost savings can occur, which Eaton is now squarely addressing. Take for instance, the current state of connecting modules to combiner boxes. Most contractors currently do all this work manually; running PV cable the length of the combiner box to module connection point, cutting and stripping the wires, crimping their contacts, assembling the connectors, attaching ID labels and terminating the string in the combiner box. This will be repeated dozens, hundreds and thousands of times depending on the scale of the project. Did we mention this is generally being done by highly paid electricians? Like days of old, with homemade mounting systems and combiner boxes, this practice results in more cost, more connection points, more leak paths and definitely more potential quality and safety issues due to human error. On top of this, it is questionable whether testing is conducted on every one of those connection points─i.e. pull, hi-pot and continuity testing─thus further increasing potential human error trouble spots, which can be dangerous down the road, costing significant resources to fix. There’s an option, Eaton BoS alternative: a custom made PV cable assembly that is manufactured for your project in a controlled condition, by highly trained personnel using precision Swiss made equipment. These custom assemblies arrive at the job mapped, labeled, guaranteed and 100% certified for pull test, continuity and Hi-Pot. This approach also reduces material and labor costs up to 30% while significantly increasing the quality and certainty of long-term system performance. The Eaton solution replaces a highly laborious and time consuming process with a plug and play solution. BoS breakthroughs like this are driving the reduction in system costs while driving solar towards grid parity. Companies like Eaton, with their integrated total BoS solution, are driving innovation and cost reductions across the system to benefit the entire solar industry. Part of what differentiates the Eaton approach to BoS is how the engineering teams from each product work together to optimize layouts and system designs to achieve material and labor savings. Eaton engineers across product disciplines work together, so our designs are focused on reducing labor and materials in the field. While other mounting manufacturers design their mounting solution and provide a quote around this one component of the system, the Eaton approach is to review the electrical design parameters of the project to ensure mounting, cable, cable management and combiners are all designed in one integrated fashion to maximize efficiency and cost savings opportunities on each specific project. A complete BoS engineered solution looks at every angle of the project, ensuring consideration of every component in tandem rather than in a vacuum. This reduces cost while increasing certainty of construction logistics, material costs and performance of PV asset. Let me give you a real-world example: Eaton recently worked on a 10 MW project which had received three quotes from three different companies to provide single component solutions (mounting, combiner boxes and PV cable solutions). Standard solutions at a standard price. Then, Eaton got involved with our Total BoS Solutions. What we were able to achieve by integrating our design practices across our BoS solutions was a 15% reduction in mounting costs, and a reduction in pier requirements by 33%. By matching our mounting configuration to the string sizing of the system, were able to reduce PV cable costs by 50% while reducing the labor on PV cable installation by 70%. This is a remarkable achievement on one project─and this approach drove the advancement of innovation at Eaton. It is a remarkable and positive change for the PV industry that one company can offer roof and ground mounting solutions, combiners and re-combiners, cable management solutions, PV cable harness assemblies, wireless monitoring and grid tie solutions all from one qualified highly bankable vendor. As solar continues to step onto the world stage of large scale utility and massively distributed rooftops, the manufacturing community also needs to step up their game to ensure they are integrating BoS solutions which provide better performance, higher long-term certainty and reduced costs in materials and labor. Phil Winters is the Renewable Energy Business Development Manager for Eaton in Canada. Prior to joining Eaton, Winters launched and led project development and EPC firms serving the Canadian and global solar markets. Winters is a graduate of both Solar Energy International (1999) and the Ontario Solar Academy (2009), and is currently the Vice President of the Solar and Sustainable Energy Society of Canada. He holds MBA from Southern Methodist University’s Cox School of Business. http://www.interpv.net/market/market_view.asp?idx=814&part_code=03

Stay Clear, Stay Safe - Dam Safety

Always an important message when it comes to hydroelectric power.

Ontario Power Generation (OPG) is urging the public to exercise extreme caution around waterways, and to be mindful of water safety especially near or around hydroelectric stations and dams.

"Stay clear, stay safe is a simple message," says Mike Martelli, OPG's Senior Vice President of Hydro-Thermal Operations. "Ontario's lakes and rivers are popular holiday weekend destinations but people need to keep themselves and their families safe by paying attention to the warnings signs, fences and booms around hydroelectric stations."

Most hydroelectric facilities are controlled remotely by operators located many kilometres away. As a result, dams can suddenly open at any time, creating rapid change to water levels and flows, while producing deadly undertows.
Additional water safety information can be found online at www.stayclearstaysafe.ca including links to OPG's water safety partners - the Ontario Provincial Police, and the Ontario Federation of Anglers and Hunters.

SOURCE Ontario Power Generation Inc.

 @opg Stay Clear, Stay Safe

Hydroelectric Energy Advantages and Disadvantages « Green World Investor

Hydro Power is one of the largest sources of energy accounting for roughly 20% of the worldwide demand of electricity and for well resourced countries it accounts for majority of the energy.For Paraguay 100% of the electricity comes from hydro power and lot of it is exported as well.Compared to other sources of Energy, Hydroelectric Power is one of the cheapest,non Carbon Emitting,non Polluting,Mature Energy Sources.Hydro Power plants have been developed to almost full potential in developed countries because of their superior characteristics and many more are being constructed by developing countries like China and India.However Hydro Power like all other thins in life suffers from disadvantages as well.The failure of a Hydro Dam can result in massive losses of human life and cause widespread devastation.Large Dams have always been controversial leading to displacement of people and ecology.They have also been cited as the reason for earthquakes due to large land changes.Here is a list of the advantages and disadvantages of Hydro Power

Hydroelectric Energy Advantages

No Fuel Cost - Hydro Energy does not require any fuel like most other sources of energy.This is a huge advantage over other fossil fuels whose costs are increasing at a drastic rate every year.Electricity prices are increasingly rapidly in most parts of the world much faster than general inflation.Price shocks due to high fuel costs are a big risk with fossil fuel energy these days
Low Operating Costs and little Maintenance - Operating labor cost is also usually low, as plants are automated and have few personnel on site during normal operation.
Low Electricity Cost – The Electricity produced from Hydro Power is quite low making it very attractive to construct hydro plants.The payback period is estimated to be between 5-8 years for a normal hydro power plant.Hydro Plants also have long lives of between 50-100 years which means that they are extremely profitable
No Greenhouse Gas Emissions/Air Pollution – Hydroelectricity does not produce any GHG emissions or cause air pollution from the combustion of fossil fuels unlike coal,oil or gas.This makes them very attractive as a source of cheap,non carbon dioxide producing electricity.
Energy Storage – Pumped Hydro Storage is possible with most of the hydro power plants.This makes them ideal storage for wind and solar power which are intermittent in nature.Hydro Dams can be modified at low costs to allow pumped storage.
Small Size Possible - Hydroelectricity can be produced in almost any size from 1 MW to 10000 MW which makes it very versatile.Small Hydro Plants are being encouraged by government as they cause less ecological affects than large hydro plants.Even micro hydro plants are possible
Reliability - Hydro Power is much more reliable than wind and solar power though less than coal and nuclear as a baseload source of power.Hydroelectricity is more or less predictable much in advance though it can decrease in summer months when the water is low in the catchment areas.
High Load Factor - The Load Factor for Solar and Wind Energy ranges from 15-40% which is quite low compared to Fossil Fuel Energy.Hydroelectricity on the other hand has a load factor of almost 40-60% .
Long Life - Hydro Plants has a very long life of around 50- 100 years which is much longer than that of even Nuclear Power Plants.The long life implies that the lifecycle cost of a Hydel Power Plant becomes very low in the long term
Hydroelectric Energy DisAdvantages

1) Environmental, Dislocation and Tribal Rights - Large Dam construction especially in populated areas leads to massive Tribal Displacement,Loss of Livelihood and Religious Infringement as potentially sacred Land is occupied by the Government.

2) Wildlife and Fishes get Affected - The Fishes are the most affected species from Dam Construction as the normal flow of the river is completely changed form its river character to a lake one.Submergence of land also leads to ecological destruction of the habitat of land based wildlife.

3) Earthquake Vulnerability – Large Dam Construction has been linked to increased propensity of Earthquakes.Massive Earthquakes in China and Uttarakhand in India were linked to the building of Massive Dams in these countries

4) Siltation When water flows it has the ability to transport particles heavier than itself downstream. This has a negative effect on dams and subsequently their power stations, particularly those on rivers or within catchment areas with high siltation

5) Tail Risk,Dam Failure - Because large conventional dammed-hydro facilities hold back large volumes of water, a failure due to poor construction, terrorism, or other cause can be catastrophic to downriver settlements and infrastructure. Dam failures have been some of the largest man-made disasters in history.The Banqiao Dam Failure in Southern China directly resulted in the deaths of 26,000 people, and another 145,000 from epidemics.

6) Cannot be Built Anywhere - This disadvantage of Hdyro Energy is present with other forms of Energy as well.Some forms of Energy are just better suited to some places.For example you can’t build a nuclear plant on top of an earthquake prone region,you can’t build a wind farm near the Dead Sea etc.Hydro Energy can only be built in particular places though enough of those places exist globally

7) Long Gestation Time - The time to construct a large hydro power project can take between 5-10 years which leads to time and cost overruns.