AGENDA #5a

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Staff Report:  Hargraves Center Solar System Performance

DATE: June 10, 2002

This staff report provides information on the performance of the photovoltaic system installed at the Hargraves Center during December 2000.

BACKGROUND

On November 22, 1999, the Town Council approved a resolution authorizing the Town Manager to accept a Virginia Alliance for Solar Electricity (VASE) Photovoltaic (PV) Program Grant for the purpose of installing a 3.5 kWac photovoltaic solar collector system on a Town building.  After a review of suitable installation sites, the Hargraves Recreations Center was selected as the site for the installation of the photovoltaic system.  Installation of the system was completed during December 2000 at a cost of about $18,800, net of a discount of about $10,000 provided by the grant program.  

DISCUSSION

Calculations provided by the NC Solar Center prior to the installation of the system estimated that the project would provide the Town with an annual savings of about $499 in reduced electricity costs. The simple payback, based on installation costs of $18,800, would be 37.6 years. 

During the first full year of operation, January 2001 to December 2001, we realized a 7,279 kwh reduction in energy consumption; however, the cost of electricity for the building actually increased by $228 as compared to the prior year.  We believe that the increased cost is due to rate changes over the period.  At a cost of about $0.08 per kwh, the cost avoidance associated with the 7,279 kwh reduction in consumption is about $580.

The first graph on page 2 illustrates this comparison of energy consumption data.  The second graph shows weather data for the same period.  This data suggests that some of the reduction in energy use in 2001 can be attributed to a much cooler summer.

CONCLUSION

As was expected, the energy savings associated with the Hargraves Center photovoltaic system are small.  The value in the project was and continues to be that it demonstrates emerging technology advances in the area of energy efficiency and air quality.