SOLAR LIGHT AND FAN INTRODUCTION: Solar energy is energy that comes from the sun. energy.

Every day the sun radiates an enormous amount of The sun radiates more energy in one second than people have used since the beginning of time. All this energy comes from within the sun itself. Like other stars, the sun is a big gas ball made up mostly of hydrogen and helium. The sun generates energy in its core in a process called nuclear fusion. During nuclear fusion, the sun s e!tremely high pressure and hot temperature cause hydrogen atoms to come apart and their nuclei to fuse or combine. Some matter is lost during nuclear fusion. The lost matter is emitted into space as radiant energy. "t takes millions of years for the energy in the sun s core to make its way to the solar surface, and then appro!imately eight minutes to travel the #$ million miles to earth. The solar energy travels to the earth at a speed of %&',((( miles per second, the speed of light.

)nly a small portion of the energy radiated by the sun into space strikes the earth, one part in two billion. *et this amount of energy is enormous. Every day enough energy strikes the +nited States to supply the nation s energy needs for one and a half years, About %- percent of the sun s energy that hits the earth Another $( percent is used to is reflected back into space. rainfall.

evaporate water, which, lifted into the atmosphere, produces .lants, the land, and the oceans also absorb solar energy. The rest could be used to supply our needs. APPLICATIONS: Photovoltaics: .hotovoltaic are solar cells that produce from electricity sunlight. directly

The solar cells are made of thin layers of material, usually silicon. The layers, after treatment with special compounds, have either too many or too few electrons. /hen light strikes a sandwich of the different layers, electrons start flowing and an electric current results. .hotovoltaic are used throughout the nation and elsewhere to operate appliances, provide lighting,

and to power navigation and communication aids. .hotovoltaic panels provide power for e0uipment in space ships and satellites. .1 cells supply power needed to operate many kinds of consumer products such as calculators and watches. .hotovoltaic systems provide electricity to remote villages, residences, medical centers, and other isolated sites where the cost of photovoltaic e0uipment is less than the e!pense of e!tending utility power lines or using diesel2generated electricity. Solar Thermal: Solar

Thermal power is heat energy obtained e!posing by a

collecting device to the rays of the sun. A solar thermal system makes use of the warmth absorbed by the collector to heat water or another working fluid, or to make steam. 3ot water is used in homes or commercial buildings and for industrial

processes. Steam is used for process heat or for operating a turbine generator to produce electricity or industrial power. There are several basic kinds of solar thermal power systems including 4flat plate5 solar water heaters6 concentrating collectors, such as central tower receivers6 and parabolic trough and dish collectors. Flat plate solar /ater that water flows are heaters through

tubes

attached to a black metal absorber plate. The plate is enclosed in an insulated bo! with a transparent window to let in sunlight. The heated water is transferred to a tank where it is available for home, commercial or institutional use. Central tower recei ers "n order to produce steam and electricity with solar thermal energy, central receivers have a field of tracking mirrors called heliostats to focus sunlight onto a single receiver mounted on a tower. /ater or other heat

transfer fluid in the tower is heated and used directly or converted into steam for electricity. Para!olic "ishes or tro#$hs curved panels which follow the direction of the sun s rays and focus the sunlight onto receivers. A li0uid inside the pipes at the receivers focal point absorbs the thermal energy. The thermal energy received can be converted to electricity at each unit or transported to a central point for conversion to electricity.

Solar Stills:

Solar stills are systems designed to filter or purify water. The number of systems designed to filter water have increased dramatically in recent years.

As water supplies have increased in salinity, have been contaminated, or have e!perienced periods of contamination, people have lost trust in their drinking water supply. /ater filtration systems can be as simple as a filter for taste and odor to comple! systems to remove impurities and to!ins. Solar water distillation is one of the simplest and most effective methods of purifying water. Solar water distillation replicates the way nature purifies water. The sun7s energy heats water to the point of evaporation. As the water evaporates, purified water vapor rises, condensing on the glass surface for collection. This process removes impurities such as salts and heavy metals, as well as destroying microbiological organisms. The end result is water cleaner than the purest rainwater. Solar energy is allowed into the collector to heat the water. The water evaporates only to condense on the underside of the glass. /hen water evaporates, only the water vapor rises, leaving contaminants behind. The gentle slope of the glass

directs the condensate to a collection trough, which in turn delivers the water to the collection bottle.

Solar Crop Dryers: +sing the sun to dry crops and grain is one of the oldest and most widely used applications of solar energy. The simplest, and least e!pensive techni0ue is to allow crops to dry naturally in the field, or to spread grain and fruit out in the sun after harvesting. The disadvantage of these methods is that the crops and grain are sub8ect to damage by birds, rodents, wind, and rain, and contamination by windblown dust and dirt. 9ore sophisticated solar dryers protect grain and fruit, reduce losses, dry faster and more uniformly, and produce a better 0uality product than open air methods.

The basic components of a solar dryer are an enclosure or shed, screened drying trays or racks, and a solar collector. "n hot, arid climates the collector may not even be necessary. The southern side of the enclosure itself can be gla:ed to allow sunlight to dry the material. The collector can be as simple as a gla:ed bo! with a dark colored interior to absorb the solar energy that heats air. The air heated in the solar collector moves, either by natural convection or forced by a fan, up through the material being dried. The si:e of the collector and rate of airflow depends on the amount of material being dried, the moisture content of the material, the

humidity in the air, and the average amount of solar radiation available during the drying season. There are a relatively small number of large solar crop dryers in the +nited States. This is because the cost of the solar collector can be high, and drying rates are not as controllable as they are with natural gas or propane powered dryers. +sing the collector at other times of the year, such as for heating farm buildings, may make a solar dryer more cost2 effective. "t is possible to make small, very low cost dryers out of simple materials. These systems can be useful for drying vegetables and fruit for home use.

AD%ANTAG&S AND DISAD%ANTAG&S OF SOLAR &N&RG' Advantages: Solar energy makes use of a renewable natural resource that is readily available. Solar power used by itself creates no carbon dio!ide or other to!ic emissions. +se of solar thermal power to heat water or generate electricity will help reduce the Territory s complete dependence on fossil fuels.

Solar water heaters are an established technology, readily available on the commercial market, and simple enough to build, install and maintain by yourself. The production of electricity by the photovoltaic process is 0uiet and produces no to!ic fumes. .1 cells generate direct2current electricity that can be stored in batteries and used in a wide range of voltages depending on the configuration of the battery bank. Although most electric appliances operate on alternating current, an increasing number of appliances using direct current are now available. /here these are not practical, .12generated direct current can be changed into alternating current by use of devices called inverters.

Disadvantages:

Solar thermal systems are not cost2effective

in areas that have long periods of cloudy weather or short daylight hours. The arrays of collecting devices for large systems cover e!tensive land areas. Solar thermal systems only work with sunshine and do not operate at night or in inclement weather. Storage of hot water for domestic or

commercial use is simple, using insulated tanks, but storage of fluids at the higher temperatures needed for electrical generation, or storage of electricity itself, needs further technical development. .hotovoltaic2produced electricity is presently more e!pensive than power supplied by utilities. ;atteries need periodic maintenance and

replacement. 3igh voltage direct2current electricity can pose safety ha:ards to inade0uately trained home operators or utility personnel.
Solar energy is an ine!haustible resource. The sun produces vast amounts of renewable solar energy that can be collected and converted into heat and electricity. Te!as, due to its large si:e and abundant sunshine, has the largest solar energy resources among the states. Several other states, however, lead the nation in terms of using solar energy, mostly due to state policies and incentives that encourage the installation of solar energy systems. <alifornia is the nation s largest solar energy market by far, and has effective state initiatives promoting the industry. )ther states with notable markets for solar energy include =ew >ersey, Ari:ona, <olorado and =ew *ork.

Even so, in ?((' solar energy accounted for 8ust (.(% percent of all +.S. electricity, mainly because of its higher costs compared to other power options.% Solar energy plays an even smaller role in the Te!as electricity market. Still, Te!as has the sunshine, manufacturing base and research institutions needed to become a leader in the development of solar energy.? The state is well positioned to compete with other states and countries in a global solar energy market worth @%(.' billion in ?(('.$ )ne study estimates that Te!as could capture about %$ percent of all new 8obs and investments related to solar photovoltaic technologies by ?(%-, primarily in manufacturing.A
History

3umans have harnessed the power of the sun for millennia. "n the fifth century ;.<., the Breeks took advantage of passive solar energy by designing their homes to capture the sun s heat during the winter. Later, the Comans improved on solar architecture by covering south2facing windows with clear materials such as mica or glass, preventing the escape of solar heat captured during the day."n the %D'(s, 3orace de Saussure built an insulated rectangular bo! with a glass cover that became the prototype for solar collectors used to heat water. The first commercial solar water heaters were sold in the +.S. in the late %&#(s, and such devices continue to be used for pool and other water heating.'
Texas has the sunshine, manufacturing base and research institutions needed to become a leader in the development of solar energy.

"n the late %#th century, inventors and entrepreneurs in Europe and the +.S. developed solar energy technology that would form the basis of modern designs. Among the best known of these inventors are August 9ouchet and /illiam Adams. 9ouchet constructed the first solar2 powered steam engine.D /illiam Adams used mirrors and the sun to power a steam engine, a technology now used in solar power towers. 3e also discovered that the element selenium produces electricity when e!posed to light. "n %#-A, three scientists at ;ell Labs developed the first commercial photovoltaic E.1F cells, panels of which were capable of converting sunlight into enough energy to power electrical e0uipment. .1 cells powered satellites and space capsules in the %#'(s, and continue to be used for space pro8ects.&

"n the %#D(s, advances in solar cell design brought prices down and led to their use in domestic and industrial applications. .1 cells began to power lighthouses, railroad crossings and offshore gas and oil rigs. "n %#DD, solar energy received another boost when the +.S. Department of Energy created the Solar Energy Cesearch "nstitute. "t was subse0uently renamed as the =ational Cenewable Energy Laboratory E=CELF, and its scope e!panded to include research on other renewable energy sources. =CEL continues to research and develop solar energy technology. "n the last ?( years, solar energy has made further inroads and now is used e!tensively in off2grid and remote power applications such as data monitoring and communications, well pumping and rural power supply, and in small2scale applications such as calculators and wristwatches. ;ut solar energy has not yet achieved its potential to become a ma8or contributor to world electrical grids. .rivate and government research and development in solar energy technologies have led to continuing innovation over the last $( years. The conversion efficiency of .1 cells G that is, the percentage of sunlight hitting the surface of the cell that is converted to electricity G continues to improve. <ommercially available cells now on the market have efficiencies approaching ?( percent.# <ell efficiencies achieved in research laboratories recently surpassed A( percent.%( The worldwide .1 market has grown by an average of $( percent annually for the past %- years, an increase that has improved economies of scale for manufacturers.%% As a result, the cost of electricity generated from .1 modules has fallen significantly, from more than A- cents per kilowatt hour Ek/hF in %##( to about ?$ cents per k/h in ?(('.%? "n ?((' and ?((D, a shortage of silicon Ea primary component of crystalline silicon .1 systemsF temporarily increased .1 module costs, but prices are e!pected to decline once again between ?((& and ?(%%, when silicon plants currently under construction are completed.
The worldwide PV market has grown by an average of 30 percent annually for the past ! years.

Uses

Solar energy has many uses. "t can be used to provide heat, light or to generate electricity. Passive solar energy refers to the collection of heat and light6 passive solar design, for instance, uses the sun s energy to make homes and buildings more energy2efficient by eliminating the need for daytime lighting and reducing the amount of energy needed for

heating and cooling. Active solar energy refers to storing and converting this energy for other uses, either as photovoltaic E.1F electricity or thermal energy. Solar Heating Solar systems that heat water for homes and businesses, and passive solar design for buildings of all si:es, both have the same effect on the electric grid as conservation. They do not generate electricity per se, but reduce the demand for electricity and natural gas. Hrom %##& to ?((-, the solar water heating market produced about the thermal e0uivalent of %?A,((( megawatt2hours E9/hF annually.%$Solar pool heating is the most commonly used solar energy in the +.S. %A "n ?((-, it accounted for #- percent of +.S. solar thermal collector shipments. The second2largest end use for solar thermal collectors was water heating, primarily in residential buildings, accounting for about A percent of +.S. shipments in ?((-.%Solar Electricity Solar energy technology is used on both small and large scales to produce electricity. A uni0ue advantage of small2scale solar energy systems is that, if they include storage devices, they may eliminate the need to connect to the electric grid. .1 systems power road maintenance and railroad warning signs, flashing school :one lights, area lighting and other devices without e!pensive power lines or batteries. )ffshore oil rigs, navigational aids, water pumps, telecommunication e0uipment, remote weather stations and data logging e0uipment also benefit from .1 power.%' "n ?((-, small2scale, off2grid .12powered devices accounted for about %- percent of .1 capacity installed worldwide.%D "n the same year, most installed .1 systems G -# percent G provided electricity to homes and buildings connected to the electrical grid.%& The remaining .1systems were installed for use in remote off2grid homes and buildings in industriali:ed countries and the developing world. )n a larger scale, solar technology can produce commercially significant amounts of electrical power. +tility2scale concentrating solar power E<S.F systems, for instance, typically offer capacities of from -( to ?(( megawatts E9/F, and could produce enough electricity to power appro!imately D,&(( to $%,((( homes in Te!as, based on average electric use in ?((', when the sun is shining.%# SOLAR ENERGY IN TEXAS

"n >une ?((D, the +niversity of Te!as at Austin s "< ? "nstitute, an interdisciplinary research unit, released a study making a case for supporting the solar industry in Te!as.?( This study notes that Te!as has e!cellent solar resources and should use its high technology infrastructure to build a solar industry that creates high20uality technology and manufacturing 8obs. <urrently, all of the solar energy generated in Te!as accounts for a minute portion of the state s electricity production and comes from distributed .1 solar systems on homes and businesses.
Economic Impact

"n ?((', global solar industry revenues were @%(.' billion. ?% Te!as specific data for solar industry revenues are not available. The "<?"nstitute e!pects the solar industry to create more 8obs and contribute billions of dollars in investment and income to the +.S. economy over the ne!t decade, if long2term incentives are offered to encourage the solar industry.?? An "<? study noted thatI Jsince high2tech manufacturing employment in Te!as has yet to return to pre2recession levels, the .1manufacturing industry creates an opportunity to generate employment for semiconductor and electric component workers statewide whose 8obs have been outsourced offshore.?$ )ne study that evaluated the state2by2state impact of an e!panding +.S. solar .1 market found that <alifornia and Te!as stand to gain a large share of all new solar .1 8obs and investment created between ?((A and ?(%-.?A The study assumed that the nation s solar .1 capacity would grow from $A( 9/ in ?((A to #,'(( 9/ total .1 capacity in ?(%-, with an investment value of @$A billion. According to this study, Te!as should gain about %$ percent of all new +.S. solar .1 8obs and investment, primarily in manufacturing. This translates into appro!imately -,-'D new 8obs G #$ percent in manufacturing and D percent in constructionKinstallation G and represents about @A.- billion of investment in Te!as by ?(%-.?"n #00$, global solar industry revenues were % 0.$ billion.

The Solar Energy "ndustries Association ESE"AF estimates that 4every megawatt of solar power currently supports $? 8obs, with & of these 8obs in system design, distribution, installation and service created where the systems are installed.5?' The .rometheus "nstitute, a data source on solar energy initiatives, pro8ects that solar energy will create ??,((( American 8obs in manufacturing, distribution and various building trades over the ne!t decade.?D

Austin Energy, a municipal utility, commissioned a study of the economic benefits of solar energy manufacturing and installation in ?(('. This study concluded that construction of a %(( 9/ solar manufacturing plant in the Austin area could create nearly $(( new 8obs and add about @% billion to the regional economy by ?(?(.?& "n addition, the city of Austin and Travis <ounty would benefit from an increase in sales ta! and property ta! revenue. Te!as technology companies have demonstrated an interest in the solar industry. "n Austin, 3elio1olt has developed a low2cost manufacturing process for applying a thin2film .1 coating to building materials.?# )n April %-, ?((&, Bovernor Cick .erry announced that 3elio1olt would receive @% million from the state s Te!as Enterprise Hund ETEHF for the construction of a development and manufacturing facility. According to the Bovernor s office, the pro8ect is e!pected to create about %'( 8obs and @'? million in capital investment.
&unlight can be converted into heat and electricity in a number of ways.

Entech, located in Leller, Te!as, provides advanced solar energy technology including high2efficiency solar cells for =ASA spacecraft.$( The company also has invented a new lighting system to illuminate office buildings, schools and stores. "n addition, Applied 9aterials, which has a semiconductor manufacturing plant in Austin, recently ac0uired a company called Applied Hilms in order to enter the .1 business. Applied 9aterials plans to use its chip2industry knowledge to drive down manufacturing costs for solar panels.$% The "<? "nstitute notes that the solar industry could produce substantial savings for Te!as energy consumers in the form of 4avoided generation capacity capital costs, avoided fuel costs, avoided <) ? emissions, the value of fossil fuel price hedging and avoided distribution costs.5 $? "n <alifornia, "<? estimated that these savings ranged from eight to ?? cents per k/h in ?((-.$$ "<? says that further research is needed to estimate similar savings for Te!as consumers. Solar energy also can reduce price volatility related to fluctuating natural gas prices. As utilities begin to charge higher rates for peak load periods, .1 systems that generate the most electricity during the hottest time of the day can produce substantial savings on energy costs. +tility companies would benefit because additional peak load power reduces the strain on their systems and the need for additional power plants.
EXHIBIT 10-1

View 'xhibit 0( ) The Photovoltaic *ell, in Text +ormat. Production

Sunlight can be converted into heat and electricity in a number of ways. A variety of solar technologies are in production, and many companies and researchers are pursuing efforts to develop devices that convert the sun s energy more efficiently. Photovoltaic Energy .hotovoltaic cells E.1F are used worldwide to convert sunlight into electricity. The .1 cell contains two layers of semiconducting material, one with a positive charge and the other with a negative charge E &(hi!it )*+)F. /hen sunlight strikes the cell, some photons are absorbed by semiconductor atoms, freeing electrons that travel from the negative layer of the cell back to the positive layer, in the process creating a voltage. The flow of electrons through an e!ternal circuit produces electricity.$A Since individual photovoltaic cells produce little power and voltage G they generate only about one to two watts per cellGthey are connected together electrically in series in a weatherproof module. To generate even more power and voltage, modules can be connected to one another to form a solar panel6 solar panels are grouped to form anarray. The ability to add additional modules as needed is a significant advantage of .1 systems. Several .1 technologies are in use or in development. The silicon2 based .1 cell, made with the same silicon used in the semiconductor

industry, has dominated the market and continues to do so. Solar Energy "ndustries Association ESE"AF reports that #A percent of .1modules used today are made of crystalline silicon.$The search for cheaper solar energy systems, however, has spurred the development of thin2film .1 cells that have semiconductor layers only a few millionths of a meter thick. Thin2film .1 technologies are intended to reduce the amount of e!pensive materials needed to produce solar cells. Hor e!ample, new methods are being used to produce solar cells that reduce or eliminate the use of high2priced silicon. The +.S. Department of Energy ED)EF estimates that +.S. production of thin2film solar modules will e!ceed that of crystalline silicon modules by ?(%(.$' /hile thin2film efficiencies are lower than silicon s, the lower cost may tip the balance in thin film s favor.$D Cesearch scientists also are working on a new generation of solar cells that include nanomaterials, multi8unction cells and various other research efforts that may produce 4leapfrog5 technologies, offering considerably higher efficiency at a lower cost.$& =anotechnology, for instance, has attributes that, in theory, may triple the amount of energy produced by photons of sunlight. This technology also could result in .1 cells that could be painted on homes and buildings.$# Cesearch on inverted multi8unction cells that capture more of the sun s energy also is ongoing, and already has produced a world2 record $#.$ percent conversion efficiency.A( These emerging technologies have the potential to produce higher efficiencies more cost2effectively. Some companies are developing faster and more efficient ways to manufacture thin2film solar cells at lower costs. 3elio1olt, an Austin2 based company, has developed HASST, which it claims is a low2cost manufacturing process for applying copper indium gallium selenide, a thin2film .1 coating, to construction materials such as roofing, steel and fle!ible composites in &( to #& percent less time than conventional processes. This would position the company to bring economical building products featuring integrated .1 cells to the market. 3elio1olt is seeking partners and plans to have some products available by ?((&.A% The +.S. Army also is interested in lightweight solar panels, since it wants to reduce the need for generators and personal battery packs that soldiers use to power fans, light, radios and laptops. A? "n Te!as, the Army s Hort ;liss, in cooperation with the +.S. =aval .ostgraduate School and Army <orps of Engineers, is the site for a 4.ower The Army5 pro8ect that will conduct large2scale field trials of three new solar energy

technologies. The army and others hope that the pro8ect will improve solar system efficiencies and lead to lower solar energy costs.A$ Solar Thermal Energy Solar thermal energy refers to technologies that use the sun s energy to heat water and other heat2transfer fluids for a variety of residential, industrial and utility applications. Simple and widely used applications of solar thermal energy include solar water heating, swimming pool heating and agricultural drying. "n the +.S., solar pool, water and space heating are currently the ma8or applications of thermal energy.
EXHIBIT 10-2

View 'xhibit 0(#) +lat Plate *ollector, in Text +ormat.

&olar thermal energy refers to technologies that use the sun,s energy to heat water and other heat(transfer fluids for a variety of residential, industrial and utility applications.

EXHIBIT 10-3

View 'xhibit 0(3) - Parabolic Trough &ystem, in Text +ormat.

Hlat2plate collectors G large, insulated metal bo!es with glass or plastic covers and dark heat2absorbing plates G are the most common collectors used for home solar water and space heating E&(hi!it )*+,F.AA )ther common varieties are evacuated2tube collectors and integral collector2 storage systems. All three types gather the sun s energy, transform it to heat and then transfer that heat to water, a heat2transfer fluid or air. Hlat2 plate collectors typically are mounted on the roof. Evacuated2tube collectors are sometimes used to heat water, but also have useful commercial and industrial applications where higher temperatures are re0uired. The most powerful large2scale solar thermal technology, however, is concentrating solar power E<S.F. /hile <S. can be .12based, it generally refers to three solar thermal systemsGparabolic troughs, solar dishKengines and power towersGeach of which is in use or under development today. These systems use mirrors or reflectors to focus sunlight to heat a fluid and make steam, which then is used to generate electricity. At present, only parabolic trough <S. systems are in commercial use in the +.S., with three installations in three states capable of generating A%# 9/ of electricity in all.A-Trough systems consist of a linear,

parabolic2shaped reflector that focuses the sun s energy on a receiver pipe, heating a transfer fluid flowing through the pipe6 the transfer fluid then generates superheated steam which is fed to a turbine and electric generator to produce electricity. The troughs track the sun from East to /est during the day so that the sun is continuously focused on the receiver pipes E&(hi!it )*+-F. A solar dish/engine system consists of a solar concentrator G glass mirrors in the shape of a dish that reflect sunlight onto a small area G and a power conversion unit that includes a thermal receiver and a generator E&(hi!it )*+.F. The thermal receiver includes tubes for the transfer fluid G usually hydrogen or helium G that transfers heat to a generator to produce electricity. "n ?((', Stirling Energy Systems, a .hoeni!2based provider of such systems, signed agreements to build two large plants employing the technology in Southern <alifornia. A' This would be the first commercial installation of a solar dishKengine system in the +.S.
EXHIBIT 10-4

View 'xhibit 0(.) &olar /ish0'ngine &ystem, in Text +ormat.

&olar energy differs from most energy technologies in that it can be generated on site, reducing or eliminating fuel transportation and electricity transmission and distribution costs.

EXHIBIT 10-5

View 'xhibit 0(!) &olar Power Towers, in Text +ormat.

Solar power towers use a large field of sun2tracking mirrors called heliostats to concentrate sunlight on a receiver located on the top of a tower. The receiver heats a heat transfer fluid such as molten nitrate salt that is then used to generate steam to power a turbine2generator to produce electricity E&(hi!it )*+/F. The molten salt reaches about %,(-( degrees Hahrenheit in the receiver before being stored in a tank where it can retain its heat for several hours. "n the +.S., two large2scale power tower demonstration plants G Solar )ne and Solar Two located in the 9o8ave Desert near ;arstow, <alifornia G have generated %( 9/ of electricity each. Solar )ne operated off and on from %#&? to %#&& and used water as its heat transfer fluid, while Solar Two used molten nitrate salt for heat transfer, operating periodically from %##' to %###.AD Europe s first commercial solar power tower went online in Spain in late ?((' and currently generates %% 9/ of electricity, enough to power 8ust under ',((( homes.A&9ore fields of mirrors are being added to this plant. Solucar, its developer and operator, plans two more power towers at other locations in Spain.A#

Transmission

Solar energy differs from most energy technologies in that it can be generated on site, reducing or eliminating fuel transportation and electricity transmission and distribution costs. Solar water heating and space heating devices are 4stand2alone5 systems that are not connected to the electric grid. A .1 system provides electric power directly to a user and can be used either as a 4stand2alone5 power source or connected to the electricity grid E&(hi!it )*+0F.
EXHIBIT10-6
Types of .hotovoltaic Energy Systems
Connected to the electr c ty gr d! Energy stor"ge de# ce n the system!

System

Energy Source

E$"m%les

Brid2tiedM solar system

.1 cells

*es

=o

3ome system that draws on the electricity grid at night and e!ports e!cess power in the day 3ome or business system uninterruptible power Ee.g. for computers, serversF. Still operates when the grid is down

Stand2 alone grid2 tiedM solar system Stand2 alone solar system without energy storage Stand2 alone solar system with energy storage Stand2 alone off2 grid hybrid solar system

.1 cells

*es

*es EbatteriesF

.1 cells

=o

=o

/ater pumping

.1 cells

=o

*es EbatteriesF

Cemote homes, lighting, T1, radio, telemetry

.1 cells in combination with another energy sourceMM

9ost often not

=o

Cemote large2scale communications, industrial uses

& "lso &&such "s d esel or * nd Source+ Sol"r,u--(

c"lled

'gr d-connected()

Systems offering this fle!ibility sometimes are called distributed power generators. ;y contrast, utility2scale concentrating solar power plants use centrali:ed power plants and transmission lines to distribute electricity to customers. "n ?((-, off2grid .1 systems accounted for about %& percent of all .1 installed worldwide.-( 3omes in remote areas can use .1 systems for lighting, home appliances and other electrical needs, saving the cost of e!tending power lines to a remote location. These systems re0uire a storage device to store power generated during the day for nighttime use6 typically, this is a lead2acid battery bank. +nlike gasoline2powered generators, .1 systems do not re0uire fuel deliveries and are clean and 0uiet to operate.
- home or business with aPV system that is connected to the electric grid has the option of supplementing its energy needs with electricity from the local utility company and delivering excess electricity to the grid.

Distri !te"# Gri"$Tie" P% At night and even on cloudy days, a .1 system is not likely to produce enough energy to power a home s needs, while on sunny days it may produce more electricity than needed. A home or business with a .1 system that is connected to the electric grid has the option of supplementing its energy needs with electricity from the local utility company and delivering e!cess electricity to the grid. Brid2 tied .1 systems thus can reduce strains on the power grid.
.et /eter ng

=et metering standards allow owners of 0ualifying solar energy systems to be compensated for the value of electric energy they produce6 they have been proven to promote solar energy systems. The "< ? "nstitute report that e!amined opportunities for the development of the Te!as .1 industry recommended the adoption of retail net metering in the state.-% Cetail net metering credits customers at the utility s full retail rate for each k/h generated rather than at the utility s avoided2cost rate, which is lower Esee <hapter # of this report for further discussion of net meteringF.
EXHIBIT10-0

Brid2tied .1 "nstalled <apacityI Leading States EEstimatedF

St"te <alifornia =ew >ersey <olorado =ew *ork Ari:ona Te!as 9assachusetts =evada )regon <onnecticut C"%"c ty /eg"*"tts 1/23 %#&.( $-.A.( ?.$ %.D %.D (.(.(.$ (.$ 4er od through the end of ?((' from mid2year ?((D, does not include all installations pro8ected from actual mid2year ?((' capacity from mid2year ?((D, does not include all installations from mid2year ?((D, does not include all installations from mid2year ?((D, does not include all installations pro8ected from actual mid2year ?((' capacity pro8ected from actual mid2year ?((' capacity pro8ected from actual mid2year ?((' capacity pro8ected from actual mid2year ?((' capacity

Source+ Te$"s Com%troller o5 4u,l c 6ccounts "nd 4rometheus Inst tute(

The grid2connected .1 market continues to grow more rapidly than off2 grid .1 and accounted for about -# percent of the world .1 market in ?((-.-? ;etween %##- and ?((-, the grid2connected .1 market rose by more than -( percent annually, compared to ?# percent for all solar applications.-$ "n the +.S., cumulative installations of grid2 tied .1 systems surpassed those of off2grid systems in ?((-. The .rometheus "nstitute e!pects that grid2tied .1 systems for homes and businesses in the +.S. will become even more popular in the coming years.-A <alifornia accounts for the ma8ority of the +.S. .1market, with a cumulative grid2tied .1 capacity of more than %#& 9/ at the end of ?((' E&(hi!it )*+1F.-- The second2largest market is =ew >ersey, with more than $-9/ of grid2tied .1 installed capacity.-' ;oth <alifornia and =ew >ersey have generous .1 incentives that have spurred growth in installations. Te!as ranked fifth in grid2tied capacity in ?((', with more than %.D 9/.-D &entral Po'er Generation

+tility2scale concentrating solar power plants usually are connected to the electric grid and often re0uire the construction of new transmission lines. This is because they are generally located in remote areas with high rates of solar radiation, far away from urban centers, rather like wind farms. And, like wind farms, <S. systems can produce significant amounts of electricity. A ?((D D)E study identified seven southwestern states G <alifornia, Ari:ona, =ew 9e!ico, =evada, +tah, <olorado and Te!as G as good candidates for <S.. These states have the combined solar capacity needed to generate up to 16 billion 9/h of electricity.-& Ari:ona, =ew 9e!ico, <alifornia and =evada account for &D percent of this potential capacity. /est Te!as has enough potential solar capacity to generate up to $-% million 9/h of electricity.
EXHIBIT 10-7

<S. can supply peak power during summer months, when wind and hydro energy can be scarce.-# Energy costs for <S. plants are fi!ed and are not sub8ect to fuel price swings. "n addition, <S. plants generate electricity without emitting carbon dio!ide and other greenhouse gases. <S. plants occupy large tracts of land in areas that, as noted above, usually are far away from urban areas, entailing increased transmission costs. A <S. plant needs about five to %( acres of land to produce % megawatt of installed capacity.'( The recently completed =evada Solar )ne <S. plant near Las 1egas can generate 'A 9/ of electricity and has a collector field that covers A(( acres, which translates into about '.?acres of land to produce % megawatt E&(hi!it )*+2F.

"n the +.S., the largest and longest2operating <S. systems are the Solar Energy Benerating Systems ESEBSF parabolic trough plants located in <alifornia s 9o8ave Desert. These plants, built between %#&- and %##% and covering about %,((( acres, continue to perform well and can generate a combined total of $-A 9/.'% "n ?((', the SEBS plants accounted for more than half of all grid2connected solar power generated in the +.S.'? The plants generate electricity during the daytime and shut down at night.'$ Located about %-- miles northeast of Los Angeles, the SEBS plants generate enough electricity to power over %((,((( homes.'A Technological advances have renewed interest in <S. plants in the +.S. and Europe. "n ?((', the Ari:ona .ublic Service utility completed a % 9/ <S. power plant, the first parabolic power plant built in the +.S. in ?( years.'- "n >une ?((D, another parabolic trough power plant went online in ;oulder <ity, =evada, near Las 1egas, with a generation capacity of 'A 9/ G enough electricity to power about %-,((( homes.'' This plant will minimi:e transmission costs because it was built ad8acent to an e!isting gas power plant and transmission lines. 'DSeveral other +.S. <S. plant construction pro8ects have been announced E&(hi!it )*+3F.
*&P can supply peak power during summer months, when wind and hydro energy can be scarce.

EXHIBIT10-8
+.S. <ompleted and .lanned <S. .lant <onstruction
9t l ty:St"te Ari:ona .ublic Service Hlorida .ower N Light SEBS, <alifornia =evada .ower N Light Southern <alifornia Edison Southern <alifornia Edison San Diego Bas N Electric C"%"c ty 1/23 % ;e#elo%er ."me Solargeni!2 Acciona Solel Solargeni!2 Acciona SES SES SES Com%let on ;"tes ?(('

?A

?((D

'A -(( $-( $((

?((D ?(%? ?(%A ?(%?

+.S. <ompleted and .lanned <S. .lant <onstruction

9t l ty:St"te San Diego Bas N Electric .acific Bas N Electric Total ?((' +S <S. <ontract .otential C"%"c ty 1/23 '(( -(( ?,$$# ;e#elo%er ."me SES Lu: "" Com%let on ;"tes ?(%A unknown

Source+ 4rometheus Inst tute(

"n Te!as, Austin Energy has solicited proposals for <S. power from sites in /est Te!as, but has not made a final decision on how or whether to proceed.'& <S. plants must be located in areas with high solar radiation readings, and in Te!as such places are particularly common in the western part of the state, much of which lacks an e!tensive transmission infrastructure. E!tending transmission lines to such areas is e!pensive. The Electric Celiability <ouncil of Te!as EEC<)TF estimates that building transmission lines to transport wind generated electricity from /est and =orthwest Te!as to urban areas will cost about @%.- million per mile6 <S. pro8ects in the same areas would re0uire similar e!penditures.'# Some large landowners, furthermore, may ob8ect to Te!as utility companies ac0uiring property and easements as needed through the use of eminent domain.
Availability

Solar energy is available everywhere on Earth, in varying amounts. Solar radiation that reaches the earth s surface in an unbroken line is called direct, while sunlight scattered by clouds, dust, humidity and pollution is called di used. The sum of the direct and diffuse sunlight is called global!hori"ontal insolation. <oncentrating solar technologies, which use mirrors and lenses to concentrate sunlight, rely on direct radiation, while .1 cells and other solar technologies can function with diffused radiation. #nsolation is a term referring to the amount of solar radiation that strikes the planet s surface over some period G a minute, hour, day, month or year. =CEL has developed insolation estimates for the +.S. based on solar measurements taken at a number of stations throughout the country,

as well as computer modeling that uses meteorological data to predict insolation at a large number of sites. According to =CEL s measurements, the nation s most plentiful solar resources are found in the Southwest. <alifornia, =evada, Ari:ona, =ew 9e!ico, +tah, <olorado and Te!as, and they possess some of the best insolation values in the world. According to D)E, 4enough electric power for the entire country could be generated by covering about nine percent of =evada G a plot of land %(( miles on a side G with parabolic trough systems.5D( "n all, the +.S. has a relatively abundant supply of solar resources. A % k/ solar electric system in the +.S. can generate an average of more than %,'(( k/h per year, while the same system in southern Bermany Ewhich installs eight times as many .1 systems as the +.S.F would be able to generate only about %,?(( k/h per year, due to that nation s weaker insolation. A % k/ system installed in parts of =evada, Ari:ona, =ew 9e!ico and far /est Te!as can produce ?,%(( k/h per year. D% Te!as has abundant solar radiation statewide, but again, the highest insolation readings are in /est Te!as. /est Te!as has D- percent more direct solar radiation than East Te!as, making it an ideal location for utility2scale <S. technologies.D? 1irtually all of Te!as, however, has ade0uate to very good solar radiation.D$
EXHIBIT 10-10

A study commissioned by the State Energy <onservation )ffice ESE<)F in the mid2%##(s found that Te!as has ?-( 40uads5 of solar energy accessible per year. Biven that one 0uad is one $uadrillion ;ritish

thermal units E;tusF of energy G enough to meet the annual needs of about $ million people G Te!as solar energy potential is enormous. DAThe ?((D Te!as Legislature directed SE<) to update a %##- assessment of Te!as renewable energy resources. This report, which will be released before the start of the ?((# Te!as Legislative Session, will include up2to2 date data on the availability of various renewable energy resources. /hile the +.S. possesses some of the world s best solar radiation values, it accounted for only & percent of worldwide .1 installations in ?(('. Bermany was the undisputed leader in that year, accounting for -percent of the world market E&(hi!it )*+)* F. >apan came in second place, with %D percent of the .1 world market. Spain s .1installations rose by more than ?(( percent in ?((', while the +.S. market e!panded by $$ percent.DVirtually all of Texas has ade1uate to very good solar radiation.

The +.S. was once a leader in the .1 market, but over the last decade it has lost ground to >apan and Bermany. ;oth governments offer generous subsidies to stimulate their solar energy markets. The +.S. has not offered similar subsidies at the federal level, and has not established a long2term, consistent strategy in its approach to solar energy at either the state or federal levels, creating periodic uncertainty in the market. &OSTS AND (ENE)ITS ;oth thermal and .1 solar systems can produce electricity at significantly lower costs today than in the %#&(s, but costs remain high compared to fossil fuel energy sources. "n the +.S., ?((' retail electricity prices for all sectors averaged more than eight cents per k/h, and for residential electricity, the price averaged about %( cents per k/h.D' ;y contrast, parabolic trough2 style <S. systems generated electricity at a cost of %? cents per k/h in ?((', while .1 systems generated electricity for about %& to ?$ cents per k/h.DD The retail price of electricity during peak hours, however, can rise to between ?- and A( cents per k/h in some parts of the +.S., making.1 systems more competitive during peak periods.D& .1 systems usually generate more electricity during the hottest time of the day, and thus can help to offset the need to add e!pensive electric generating capacity to satisfy peak demand in warm areas of the country. .1 costs per k/h declined significantly over the last %' years Efrom more than A- cents per k/h in %##( to about ?$ cents per k/h in ?(('F, due primarily to manufacturing economies of scale as well as improved

solar cell efficiency.D# The Solar Energy "ndustries Association ESE"AF notes that 4each doubling in cumulative manufacturing has brought prices down by about %& percent.5&( "n the past five years alone, the world .1 industry has grown by an average of $( percent or more each year. "n ?((', the +.S. .1 industry e!panded by $$ percent, compared to %# percent for the world. &% The e!pansion of federal income ta! credits for commercial and residential solar energy pro8ects, and state and utility incentives, particularly in <alifornia, fueled the +.S. industry s impressive growth in ?(('. These federal ta! credits, however, are set to e!pire at the end of ?((&, and were not e!tended by <ongress in ?((D. A shortage of silicon and growing global demand for solar .1 modules led to some cost increases in ?((' and ?((D.&? About #( percent of.1 modules today still are made of crystalline silicon EpolysiliconF, which has been in short supply globally, constraining production and temporarily increasing the cost of solar cells.&$ .olysilicon supplies are e!pected to remain tight and prices high until new plants under construction are completed. &A Solarbu::, an international solar energy consulting firm, predicts rapid growth in polysilicon capacity through ?(%%, and a resumption of faster rates of growth for the .1 market.&- +nprecedented investment in manufacturing capacity is e!pected to result in lower .1 costs over the long term.
"n the past five years alone, the world PV industry has grown by an average of 30 percent or more each year.

The cost of solar modules accounts for -( to '( percent of the total installed cost of a .1 system, with other system parts, materials, assembly and installation accounting for the remainder. &' .1 module costs have declined by about &( percent over the last decade, but the installation costs have not dropped appreciably in recent years.&D"nstallation costs vary depending on available sunlight, the typical energy usage of the home and the availability of e!perienced installers in the area.+nlike other energy sources, however, #( percent of the cost of a .1 system is incurred up front.&& )nce the system is installed, there are no fuel costs and the system re0uires little maintenance. A .1 system designed to supply about '( percent of the energy needs of a home in <alifornia costs about @%',((( to @??,(((, minus any ta! credit or rebate. "n San Diego, <alifornia, the federal income ta! credit Esee belowF and a <alifornia Solar "nitiative E<S"F rebate have reduced the total installed cost of a @%D,A'( residential .1 system by @D,(((, for a

final cost of @%(,A'(.&# Solarbu:: notes that government incentive programs can lower solar .1 system costs to about %( to %? cents per k/h, compared to a range of ?? to A( cents per k/h without incentives.#( The .1 industry s overarching goal is to improve solar cell efficiency while reducing their cost. Bovernment research labs and private companies have invested in research and development in the e!pectation of a breakthrough that will make solar energy competitive with other sources of energy. Solar cell efficiencies have improved significantly since the %#-(s, when they had efficiencies of less than A percent.#% Today, solar cell efficiencies range from %- to more than $( percent, but most commercial .1 systems are about %- percent efficient.#? "n December ?((', ;oeing2Spectrolab "nc., manufacturer of space solar cells and panels, announced that, with funding, it had developed a solar cell with a conversion efficiency of A(.D percent.#$ This 4multi28unction5 solar cell uses a new class of semiconducting materials that allows it to capture energy from more of the solar spectrum. This breakthrough may lead to less e!pensive, more efficient solar cells.
EXHIBIT10-11

.rice Trends for Solar .ower Through ?(%.hotovoltaics and <oncentrating Solar .ower E<S.F
%&&6 Status in the 'nited States:
4< %& to ?$ cents per k/h CS4 %? cents per k/h

Potential or P( and CSP Pricing:

4< %% to %& cents per k/h by ?(%( - to %( cents per k/h by ?(%CS4 &.- cents per k/h by ?(%( ' cents per k/h by ?(%-

Source+ 9(S( ;e%"rtment o5 Energy(

D)E e!pects significant .1 and <S. cost reductions in the ne!t five to %( years, making these solar technologies more competitive with conventional fuel sources E&(hi!it )*+))F. "mproved .1 technologies that use cheaper materials, higher2efficiency devices, new nanomaterials applications and advanced manufacturing techni0ues should reduce the

cost of .12generated electricity to as little as %% cents per k/h by ?(%(.#A D)E also e!pects <S.2generated electricity prices to decline to &.- cents per k/h by ?(%(. Te!as average residential retail price for electricity was more than %? cents per k/h in ?((' and ?((D.#"n addition to cost, however, solar electricity faces other barriers to widespread market deployment. As a new entrant to the power supply market, .1 developers face uncertain and inconsistent treatment, both in Te!as and nationally, at the hands of regulators and electric utility companies. .rocesses and rules for interconnection and net metering are not consistent throughout Te!as, so development of a statewide marketplace for these technologies has proven difficult. Solar industry professionals want clear, consistent market rules to encourage the development of a single market and the 8obs and economic benefits that arise from it.#' A federally funded study at the +niversity of 9assachusetts2Amherst found that e!perts in solar technology agree that subsidies alone are not enough to support a healthy solar industry6 more investment is needed from the manufacturing sector.#D Cecently, the number of private e0uity firms and venture capitalists investing in the solar energy sector has grown rapidly, as has the number of companies working on various solar technologies.#&
2ecently, the number of private e1uity firms and venture capitalists investing in the solar energy sector has grown rapidly.

A ?((D report by the "<? "nstitute indicated that <alifornia leads the nation in +.S. federal research awards, patents, scientific publications and business establishments related to .1 solar energy E&(hi!it )*+ ),F.## Te!as ranked fourth among states in its number of federal research awards related to .1 G %& to <alifornia s '? G with half going to industry and half to educational institutions. Te!as accounted for $ percent of the +.S. scientific literature on photovoltaics, behind <alifornia, <olorado, )hio, =ew *ork and 9assachusetts. "n its number of.12related patents, Te!as ranked fourth, again behind <alifornia. And Te!as ranked fifth in the number of .1businesses located in the state.%((
EXHIBIT10-12

.roductivity in .hotovoltaics
.um,er o5 .um,er o5 .um,er o5 4ercent =eder"l Sc ent 5 c 4ercent o5 4hoto#olt" c o5 9(S( .um,er >ese"rch 4u,l c"t ons 9(S( Tot"l 4"tents Tot"l o5 4<Bus nesses 6*"rds 118814u,l c"t ons 118816*"rds 1188320053 20053 20053 '? AA $%& %D %%A %$ %$ %$ %$ %-O %%O &O AO AO AO $O $O $O $O $O '?O ?'% ?-%(% AA -? %?%%$ A( -$ -$ A% ?(O %#O &O $O AO %(O #O $O AO AO $O &DO ?&# '$ D$ '& $( -&$ -# ?D -%$ $%( &$A '#A %A D' ?# $% ?? %#

St"te

<alifornia <olorado 9assachusetts Te!as Hlorida )hio =ew *ork 9ichigan =ew 9e!ico .ennsylvania 1irginia .ercent of +.S. Total

Source+ IC2 Inst tute? The 9n #ers ty o5 Te$"s "t 6ust n(

The "<? study concluded thatI Te!as does have some significant .1 technologies and intellectual capital, but the current university, research organi:ation, business and state resources are not sufficient to develop a comprehensive, cohesive and synergistic strategy to achieve sustained success in the global marketplace.%(%
Environmental Impact

Solar energy technologies generate electricity without producing air or water pollution. Solar thermal energy technologies may re0uire cooling water, but most of this water can be recycled. )nly small amounts of ha:ardous materials are produced in the manufacture of photovoltaic cells and <S. e0uipment and essentially none in other solar thermal applications. 9ost .1 systems are installed on e!isting structures such as homes and commercial buildings and re0uire no additional land. <S. plants re0uire large tracts of land, depending on the technology used and the si:e of the pro8ect. Hor e!ample, a %(( 9/ <S. plant re0uires between -(( to %,((( acres depending on whether thermal energy storage is included. =CEL estimates that a <S. plant typically needs about five to %( acres of land to produce % megawatt of installed capacity.%(? "n the +S, the largest <S. pro8ect covers roughly %,((( acres in the 9o8ave Desert and can generate $-A 9/, while the recently completed =evada Solar )ne <S. plant near Las 1egas covers A(( acres and can generate 'A 9/ of electricity. <alifornia s $-A 9/solar plants generate enough electricity to power about %((,((( homes and the Las 1egas 'A 9/ solar plant produces enough power for about %-,((( homes annually.%($ According to the +.S. Environmental .rotection Agency EE.AF, <S. plants do not damage the land, but merely take it out of use for other applications such as agriculture. /ildlife habitat may be displaced from land used for such systems, however.%(A Solar electricity can reduce carbon emissions by offsetting the need for carbon2producing fuels. Hor e!ample, Applied 9aterials has installed solar panels at its manufacturing plant in Austin that will generate about $$.D 9/h annually and eliminate about -A,((( pounds of carbon emissions each year.%(E.A reports that .1 systems do not generate solid waste in creating electricity. Their manufacture generates small amounts of ha:ardous materials such as arsenic and cadmium, which must be disposed of properly to avoid harm to the environment and humans. Similarly, <S.plants do not produce solid waste when generating electricity, but the construction and production of plant e0uipment does produce small amounts of ha:ardous waste.%('
Texas provides businesses with both a franchise tax deduction and a franchise tax exemption for solar energy devices.

State and Federal Oversight

The federal and state regulations that apply to the solar industry are those that apply to other manufacturing facilities as well, such as health and safety and environmental regulations. Solar .1 systems also must meet e!isting electric regulations.
Subsidies and Taxes

The solar energy industry, and in particular the photovoltaics industry, has grown in direct response to federal, state and local ta! policies and subsidies. At the federal level, an important subsidy is a $( percent federal income ta! credit for solar energy e0uipment offered during ?((' and ?((D6 this was the first residential ta! credit for solar energy established in ?( years. EA ta! credit is a dollar2for2dollar reduction of an individual s or business ta! liability.F The ta! credit applies to business investments in e0uipment that uses solar energy to generate electricity, or in solar heating or cooling systems. 3omeowners 0ualify for a residential ta! credit up to a ma!imum of @?,(((. The $( percent credit originally was set to e!pire at the end of ?((D, but <ongress subse0uently e!tended it for another year, through December $%, ?((&. The ta! credit reverts to %( percent after that date. "ndustry analysts say that the federal income ta! credit for solar energy has e!panded markets for solar products, but note that the limited time period for the credit creates uncertainty in solar industry markets.%(D State and local initiatives G ta! policies, rebate programs, standardi:ed interconnection and net metering rules and renewable portfolio standards G also have encouraged the solar industry s growth in some locations. "n Te!as, the state provides businesses with both a franchise ta! deduction and a franchise ta! e!emption for solar energy devices. "n addition, Te!as has a property ta! e!emption for the appraised value of a solar or wind2 powered energy device for on2site energy production and distribution. Thus far, however, these state policies have not resulted in significant growth in Te!as solar market. Te!as Cenewable .ortfolio Standard, or C.S Esee <hapter #F has promoted the growth of renewable energy in Te!as, but while it has created a market for wind, it has not proven to be an effective driver for the solar market, where higher costs Erelative to wind and biomassF outweigh the higher revenues afforded by the ability to create and sell renewable energy credits ECE<sF.%(& =o solar pro8ects have yet been developed in Te!as with the primary intent of creating and selling energy and CE<s into the Te!as energy and C.S compliance markets.%(#

"nterconnection policies and practices are also inconsistent throughout the state. Te!as has standardi:ed interconnection policies and procedures developed by the Te!as .ublic +tility <ommission that apply to investor2 owned utilities, but not to electric cooperatives or municipal utilities.%%( These procedures, moreover, are silent on some issues critical to distributed generators, such as definitions of what types of e0uipment Esuch as solar panels, wind turbines and inverters, which convert solar2 generated electricity into household currentF are eligible for interconnection.%%% Te!as net metering policies and practices are similarly inconsistent and depend upon the type of utility to which the distributed generator is interconnected. Throughout the +.S. and within Te!as, state2 or utility2sponsored solar rebate or incentive programs have been the primary driver stimulating demand for solar energy.%%? Austin Energy currently offers solar rebates ranging up to @A.-( per watt. The cost of installing a % k/ E%,((( wattF solar system in Austin, for instance, ranges from @',((( to @%(,(((, and the Austin Energy rebate pays up to @A,-(( toward its purchase and installation. %%$ San Antonio s <.S Energy, a municipal utility, offers rebates of @$ per watt for .1 panels and installation, capped at @%(,((( for residential customers and @-(,((( for commercial and industrial customers.%%A The "<? "nstitute study of the .1 industry, however, concluded that 4additional incentives are needed to spur non2wind renewables5 in the state.%%OTHER STATES AND &O*NTRIES <alifornia was the third2largest world market for .1 systems in ?(('.%%' )n August ?%, ?((', <alifornia gave a huge boost to its solar energy industry when Bovernor Schwar:enegger signed the 49illion Solar Coofs5 bill, S.;. %, directing the <alifornia .ublic +tilities <ommission and <alifornia Energy <ommission to implement the <alifornia Solar "nitiative E<S"F, which offers rebates starting at @?.-( per watt for .1 systems up to one 9/ in si:e.%%D S.;. % took effect on >anuary %, ?((D. The 9illion Solar Coofs legislation authori:ed the state to invest @$.$ billion over %( years toward the goal of creating $,((( 9/ of solar2 generated electricity in the state by ?(%D. "t also re0uired that homebuilders begin offering solar panels as a standard option6 increased the cap on net metering6 and re0uired municipal utilities to create their own rebate programs. <alifornia state rebates are estimated to cover

about a third of installation costs. "n the <ity of Los Angeles, combined state, local federal and utility rebates can reduce the price of a @$-,((( solar system to about @%D,-((, a -( percent reduction.%%& =ew >ersey, which ranked second in .1 installations in ?((', has implemented several initiatives to promote solar energy, including specific targets for solar renewable energy in the state s C.S. To meet the C.S goals for solar, =ew >ersey has offered rebates for solar e0uipment ranging from @?.(( to @$.&( per watt, depending on the si:e of the .1 system, as well as an e!emption from the state sales ta! for solar energy e0uipment.%%# Due to the high number of applications for its solar system rebates, however, the =ew >ersey ;oard of .ublic +tilities e!ceeded its budget and had to create a waiting list soon after the program was initiated. "n ?((D, the state made @AD million available for small E%( k/F residential and commercial installations, but these funds still are not enough to cover current demand.%?( =ew >ersey is moving its solar strategy away from rebates and toward performance2based incentives, limiting rebates only to small systems based on their estimated performance, and relying more on Solar Cenewable Energy <ertificates ESCE<sF as the primary financial driver for large solar pro8ects.
3ermany is currently the largest PV market in the world.

"n =ew >ersey, an SCE< is issued every time a solar electric system generates % 9/h of electricity. ;usinesses and individuals can sell or trade them on =ew >ersey s on2line market for trading SCE<s. Electricity suppliersKproviders serving =ew >ersey s retail customers must use the SCE< program to meet their solar C.Sre0uirements. Cecently, the price for an SCE< has averaged about @?(( per 9/h generated.%?% Ari:ona, <olorado and =ew *ork also offer substantial incentives for .1 system installations. Bermany is currently the largest .1 market in the world, with more than #'( 9/ of installed capacity.%?? ;y contrast, the +.S. had -?'9/ of installed .1 capacity in ?(('.%?$ "n Bermany, a 4feed2in5 tariff for solar electricity is the main driver for the .1 market. This tariff re0uires utilities to buy every solar k/h offered by a utility customer at a fi!ed price for ?( years6 utilities, moreover, must connect .1systems to the grid as they are ac0uired.%?A ;etween %### and ?(($, Bermany s %((,((( Coofs .rogram, which provided low2interest loans for about $A( 9/ of installed capacity, also contributed to the dramatic growth of the .1 industry. Annual

installations of .1 capacity in Bermany rose from %? 9/ in %### to #'( 9/ in ?(('. >apan, the second2largest world market for .1 installations, accounted for %D percent of the market in ?(('.%?- >apan s %##- Seventy Thousand Coofs .rogram provided a -( percent subsidy for grid2tied .1 systems, reducing the net electricity cost to a level competitive with conventional electric options.%?' "n the process, this program e!panded the .1 market and improved the supply chain of manufacturers and installers. "n ?((', >apan manufactured about $# percent of all solar cells.%?D
The "*# "nstitute concluded that Texas has the solar resources and the research institutions needed to achieve significant market share in the global solar energy market.

The >apanese residential .1 program e!pired in ?((-, but the .1 market is e!pected to continue growing because the cost of solar energy has become more competitive with retail electricity prices E>apan has some of the highest retail electricity prices in the worldF. Hor e!ample, the cost of a typical .1 system in >apan has declined from @%',((( per kilowatt in %##A to about @',((( per kilowatt in ?((-.%?& The >apanese are the current world leaders in .1 manufacturing, creating &?A.$ 9/ in ?((- and accounting for A- percent of world market share. Europe is in second place, having manufactured -%-.$ 9/ of .1 cells in ?((-, with ?& percent of the world market share. The +.S. is a distant third, having produced %-A.& 9/ in ?((- Ea # percent world market shareF, barely ahead of <hina s %-(.D 9/ E& percent market shareF.%?# O*TLOO+ )OR TEXAS Bovernment subsidies and incentives have played a vital role in promoting the solar energy industry in the +.S. and throughout the world, and will continue to do so for the foreseeable future. <ountries with the most favorable programs and research and development support have e!perienced the most innovation and most rapid growth in their solar energy industries. "n the +.S., the e!tension of the federal income ta! credit spurred rapid growth in the solar energy market. Since the development of .1 and<S. plants re0uires three to si! years, industry advocates support the e!tension of the ta! credit for a longer term. /hile Te!as has implemented some incentives to spur solar energy development G C.S, franchise ta! incentives and some net metering guidelines G several other states have implemented far more generous programs. A recent Te!as study also recommended the implementation of additional state2level incentives to spur non2wind renewables.%$(

"n =ovember ?((', the .resident s <ouncil of Advisors on Science and Technology E.<ASTF reported that, while the councilI JdoPesQ not believe that solar power will provide the bulk of the =ation s electrical energy re0uirements in the ne!t few decades, the level of entrepreneurial activity suggests that solar power, particularly for distributed applications, will continue to grow at a rapid rate G perhaps over -( percent per year G in the near term. Thus, predicting its ultimate place in the electricity generation hierarchy is difficult.%$% .<AST also noted that some startup companies believe that solar .1 will be able to supply power at %( cents per k/h within five years, allowing solar to compete directly with conventional energy sources.%$? The "<? "nstitute concluded that Te!as has the solar resources and the research institutions needed to achieve significant market share in the global solar energy market, but lacks a cohesive strategy to achieve success.%$$ "ts report noted that there are many competitors in the global .1 industry, and thatI Jfor Te!as to ac0uire and maintain a competitive advantage, it must create opportunities to align research, development, commerciali:ation, and alliance2building strategies necessary to gain a substantial and sustainable foothold in the global marketplace.%$A The solar energy industry is developing rapidly. /hether Te!as becomes a ma8or player in solar energy will depend on decisions made by both public and private entities.

Chapter+,

): Intro"#ction: This Cenewable *ou2able describes the plans and e!pectations for a direct solar powered fan. The system is designed to provide air circulation via a D< driven fan when the sun is shining, and not provide air circulation when the sun is not shining. The inspiration for this planI " live in a sunny buy mostly cool area. 3owever, during the summer my apartment is 3)T when the sun is out, but <))L when the sun is not out. Therefore, a directly drive solar fan seemed like a great idea to keep air moving through my apartment when it is needed most. ,: Goal: .rovide the design for a system which powers a D< fan directly from a flat solar panel.

-: Startin$ point: Hirst, " needed to find or build a fan which suited my needs. " tried looking for components to build my own until " stumbled upon P%Q. <reative Energy Technology like many other 4solar5 supply stores sells an array of D< appliances for use in off2grid solar powered homes and C1s. D< appliances are generally more efficient than A< because most A< appliances convert grid electricity back to D< within the appliance for use in appliance motors, circuitry, ect. >ust take a look at any appliance power supply Ecell phones, laptops, ect.F and you will see specs on the supply for A< in and D< out.

P%Q sells an &5 fan in about the si:e " was looking for EHigure $.%F. The given power specs say the fan takes %?1 D< input and on high pulls %.$ A. A little math can now help in deciding what si:e .1 panel would work for this fan.

Fi$#re -4): The %-/ fan from reference P%Q.

The fan in P%Q is designed to use with a battery, which is a constant voltage, current varying device. ;asically, a %?1 battery will provide %?1 at a wide range of currents depending on the load EfanF. Hor e!ample, this fan wants a %?1 input and will pull %.$A of current from the battery when the fan blades are uninhibited. +sing )hm s law

E1R"CF we know the effective resistance of the fan on 4high5 speed is then C R 1K" R %?K%.$ R #.?$ )hms. +nlike a battery, a solar panel is a current generating device. As the panel sees more sunlight, the number of photons absorbed increases and therefore increases the device photocurrent, or the current generated from the panel. This means the operating voltage of the device changes depending on the effective resistance of the load and the amount of generated photocurrent. This sounds strange at first, but after we pick a suitable solar panel it

will make more sense. Lnowing that the ma!imum power needed to operate the fan was %-/ E1M"F, the solar panel needed for operation was going to be rated for around ?(/. A rule of thumb, silicon solar panels are generally rated for a power higher than they produce, so getting one with a higher wattage than your load is a good idea. +sing P?Q, " found a ?(/ rated flat panel as seen in Higure $.?. The reference also included the "1 Eor current K voltage profileF curve for the panel, which was a great help in showing that this is indeed the right panel for the application. The "1 curve is shown in Higure $.$.

Fi$#re -4,: ?(/ rated Solar panel from P?Q. Fi$#re -4-: The "1 curve for this panel Hrom Higure $.$ we can see that this panel, under its best performance, provides %.$A of current for a range of (2 %-1 range. So to make sure this panel is right for this application, we can again use )hm s Law. "t is known from before that the effective resistance of the fan is #.?$ )hms. Therefore, the panel will generate %.$A ma!imum, so 1R"MC, 1 R %.$M#.?$ R %?1. A perfect fit.

So one may be wondering, 4/hat happens when the sunlight is less intense, or barely there at allS5 Again, we can turn to )hm s law. Since a solar panel is a current generating device, lets assume it is only receiving enough sunlight to generate (.&A. Since 1 R "C, 1 R (.&M #.?$ R D.$A1. /hen an electric motor, like that in the fan, sees a lower voltage, it rotates slower. So the result of less sunlight is a slower fan. This is

The Cenewable *ou, <opyright ?((&. All Cights Ceserved by Cespective )wners and <reators. Love it. +se it. Don t abuse it. $

e!actly the result we want because as the sun goes down, we want the fan to stop cooling, as stated in the goal of this pro8ect. This analysis may not be completely correct, because it assumes the effective resistance of the fan does not change with operating motor voltage. )ne way to be sure this assumption is safe is to operate the fan under a range of known voltages and then measure the current with a multimeter. "f the "1 line of this e!periment is linear, or at relatively a constant slope, then the effective resistance does not change with motor voltage. " do not know that this is a safe assumption, so this will have to be tested in the <onstruction portion of this pro8ect.

.: Constr#ction The system diagram for this design can be seen in Higure A.%.

Fi$#re .4): The system diagram for this pro8ect. <urrently this pro8ect is in the planning stages. There is no schedule for completion of this pro8ect within the foreseeable future. Depending on the progress of other pro8ects, this one will hopefully be completed by the end of the summer, ?((&. Anticipated costs have been outlined in Table A.% below. Part Na5e Part Cost %?1, %-/ D< fan ?(/ panel c2Si @%A(.(( P%Q Shipping not included Estimated @?-.#A So#rce P?Q Notes Shipping not included

/iring, ect. @?#.(( 3ome Depot Total 6)3.43. Ta!le .4): Anticipated build costs.

The Cenewable *ou, <opyright ?((&. All Cights Ceserved by Cespective )wners and <reators. Love it. +se it. Don t abuse it. A

/: &(pecte" res#lts E!pected performance has been more or less outlined in the Starting .oint section of this pro8ect. /e can however estimate the payback period for a system like this. Let us assume that a similar fan using A< power would use A(/ off the grid Ean assumption which needs evaluationF. Let us also assume the fan only functions for %K$ of a year, or %?( days, at ' hours a day. Therefore the total annual energy usage for this fan would be ?&,&(( /hrs, or ?&.&k/hrs. At an estimated grid electricity price of @(.$( per k/hr, the fan would cost @&.'A a year to operate. That means the cost of the pro8ect would be recovered in %'#K&.'A R %#.- years, Luckily " am doing this to avoid buying a small air conditioning unit, which would use far more energy than a fan of this si:e. This will make the payback period smaller, however, " am not doing this for payback to begin with. ;ut it is interesting to look at the numbers.

CHAPT&R+SOLAR LIGHT A Solar lantern is a simple application of solar photovoltaic technology, which has found good acceptance in rural regions where the power supply is irregular and scarce. Even in the urban areas people prefer a solar lantern as an alternative during power cuts because of its simple mechanism. 3ome lighting System is powered by solar energy using solar cells that convert solar energy EsunlightF directly to electricity. The electricity is stored in batteries and used for the purpose of lighting whenever re0uired. These systems are useful in non2electrified rural areas and as reliable emergency lighting system for important domestic, commercial and industrial applications. The S.1 systems have found important application in the dairy industry for lighting milk collectionK chilling centers mostly located in rural areas. Solar Street Light system is designed for outdoor application in un2electrified remote rural areas. This system is an ideal application for campus and village street lighting. The system is provided with battery storage backup sufficient to operate the light for %(2%% hours daily. The

system is provided with automatic )=K)HH time switch for dusk to down operation and overcharge K deep discharge preventioncut2off with LED indicators.

Poll#tion Control: The Bovt. accords utmost importance to control environmental pollution. The small2scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution. "ndia having acceded to the 9ontreal .rotocol in sept. %##?, the production and use of ):one Depleting Substances E)DSF like <hlorofluore <arbon E<H<sF, <arbon Tetrachloride, 3alons and methyl <hloroform etc. need to be phased out immediately with alternative chemicalKsolvents. A notification for detailed Cules to regulate )DS phase out under the Environment .rotection Act, %#&' have been put in place with effect from %#th >uly ?(((.

R&F&R&NC&:

.S. Energy "nformation Administration, 4Annual Energy Ceview ?((',5 httpIKKwww.eia.doe.govKemeuKaerKpdfKpagesKsec&T&.pdf. ELast visited April ?%, ?((&.F ? The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as, by ;ruce Lellison, Eli:a Evans, Latharine 3oulihan, 9ichael 3offman, 9ichael Luhn, >oel Serface, Tuan .ham EAustin, Te!as, >une ?((DF, p. $, httpIKKwww.ute!as.eduKatiKceiKdocumentsKTe!asSolar)pportunity?((D.pdf ELast visited April ?%, ?((&.F $ Solarbu::, 49arketbu::I ?((D /orld .1 "ndustry Ceport 3ighlights,5 httpIKKwww.solarbu::.comK9arketbu::?((D2intro.htm. ELast visited April ?%, ?((&.F A Beorge Ster:inger and 9att Svrcek, Solar P( Development: ,ocation o -conomic Activity ECenewable Energy .olicy .ro8ect, /ashington D<, >anuary ?((-F, p. ?A. and The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as , p. '. Southface, 43istory of Solar,5 httpIKKwww.southface.orgKsolarKsolar2 roadmapKsolarThow2toKhistory2of2solar.htm. ELast visited April ?%, ?((&.F ' <alifornia Solar <enter, 4Solar 3ot /ater 3eating,5 httpIKKwww.californiasolarcenter.orgKhistoryTsolarthermal.html. ELast visited April ?%, ?((&.F D <harles Smith, 4Cevisiting Solar .ower s .ast,5 Technology .eview E>uly %##-F, httpIKKwww.solarenergy.comKinfoThistory.html. ELast visited April ?%, ?((&.F & +.S. Department of Energy, 4The 3istory of Solar,5 httpIKKwww%.eere.energy.govKsolarKpdfsKsolarTtimeline.pdf. ELast visited April ?%, ?((&.F # "nterview with Steve /iese, principal, <lean Energy Associates, LL<, Austin, Te!as, =ovember ', ?((D. %( =ational Cenewable Energy Laboratory, 4=CEL Teams +p with ;oeing Spectrolab to /in CND %(( Award,5 httpIKKwww.nrel.govKfeaturesK(D2(DTrd%((.html. ELast visited April ??, ?((&.F %% Solarbu::, 4Hast Solar Energy HactsI Blobal .erformance,5 httpIKKwww.solarbu::.comKHastHacts"ndustry.htm. ELast visited April ?%, ?((&.F

%?

Solar Energy "ndustries Association, 4The Solar .hotovoltaic "ndustry

in ?((',5httpIKKap.stop.dupont.comK.hotovoltaicsKenT+SKassetsKdownloadsKpd fKSE"ATStateofSolar"ndustry?(('.pdf Elast visited August ??, ?((DF6 and =ational Cenewable Laboratory, 4Cenewable Energy Technology )pportunitiesI Cesponding to Blobal Energy <hallenges,5 by Dan E. Arvi:u, httpIKKwww.nrel.govKdocsKfy(DostiKA%%(D.pdf. ELast visited April ?%, ?((&.F %$ .rometheus "nstitute, 4+.S. Solar "ndustry *ear in Ceview, ?((',5 p. ', httpIKKwww.prometheus.orgKsystemKfilesK*earTinTSolarT?(('.pdf. ELast visited April ?%, ?((&.F %A +.S. Department of Energy, 4Solar HAUsGSolar 3eatingG All,5httpIKKwww.eere.energy.govKsolarKcfmKfa0sKthirdTlevel.cfmKnameRSol arO?(3eatingKcatRALL. ELast visited April ?%, ?((&.F %+.S. Energy "nformation Administration, 4Solar Thermal and .hotovoltaic <ollector 9anufacturing Activities ?((',5httpIKKwww.eia.doe.govKcneafKsolar.renewablesKpageKsolarreportKsola r.html. ELast visited April ?%, ?((&.F %' Te!as State Energy <onservation )ffice, 4Solar Electricity /orks for Te!as,5 SE<) Hact Sheet =o. %?, pp. %2?, httpIKKwww.infinitepower.orgKpdfKHactSheet2%?.pdf. ELast visited April ?%, ?((&.F %D Travis ;radford, Solar .evolution: The -conomic Trans ormation o the /lobal -nergy #ndustry EThe 9"T .ress, <ambridge, 9assachusetts, ?(('F, p. %((. %& Solarbu::, 4.hotovoltaic "ndustry StatisticsI <osts,5 httpIKKwww.solarbu::.comKStats<osts.htm. ELast visited April ?%, ?((&.F %# "nterview with Steve /iese. ?( The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as, p. $. ?% Solarbu::, 49arketbu::I ?((D /orld .1 "ndustry Ceport 3ighlights.5 ?? The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as, p. %A. ?$ The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as, p. '. ?A Beorge Ster:inger and 9att Svrcek, Solar P( Development: ,ocation o -conomic Activity ECenewable Energy .olicy .ro8ect, /ashington D<,

>anuary ?((-F, p. ?A6 and The +niversity of Te!as at Austin, "<? "nstitute, )pportunity on the *ori"on: Photovoltaics in Te+as , p. '. ?Beorge Ster:inger and 9att Svrcek, Solar P( Development: ,ocation o -conomic Activity, p. '. ?' Solar Energy "ndustries Association, )ur Solar Power 0uture: The '1S1 Photovoltaic #ndustry .oadmap Through %&2& and 3eyond E/ashington, D.<., September ?((AF, httpIKKwww.seia.orgKroadmap.pdf. ELast visited April ?%, ?((&.F ?D .rometheus "nstitute, 4+.S. Solar "ndustry *ear in Ceview, ?((',5 p. $. ?& Austin Energy, City o Austin4 Austin -nergy: Tool or Analysis o -conomic Development 3ene its or Solar 5anu acturing 6 #nstallation , by <hristy 3erig, Segue Energy <onsulting, LL< EAustin, Te!as, 9ay %%, ?(('F, p. ?. httpIKKwww.austinenergy.comKAbout O?(+sK=ewsroomKCeportsKanalysisToolEcoDevSolar.pdf. ELast visited April ?%, ?((&.F ?# ;usiness /ire, 43elio1olt and =CEL <CADA to <ommerciali:e Solar =anotechnology,5 Austin, Te!as, September %%, ?((', httpIKKwww.heliovolt.net. ELast visited April ?%, ?((&.F $( Entech, 4/elcome to Entech,5 httpIKKwww.entechsolar.comK. ELast visited >anuary ?#, ?((&.F