EVs and solar power – go together like a horse and carriage

Key points

  • Solar PV can provide the ‘horsepower’ and electric vehicles (EVs) the ‘carriage’ of persons, potentially at ZERO energy cost and ZERO emissions.
  • Solar Installers are uniquely placed to provide customers with electrical energy advice, they understand electricity tariffs and are generally licensed electricians who can install EV charge points to make solar customers ‘EV ready’ with their PV install.
  • Solar Customers are often ‘early adopters’ of technology, environmentally aware and understand how an ‘up-front’ investment can be recovered over time, and are often in a financial position to make such an investment.
  • The recent announcement by the NSW Government to allow Solar Bonus Scheme (SBS) participants with GROSS metered PV systems, to add a second NET system, provides an immediate opportunity for solar installers to make these customers EV ready for when the GROSS scheme ends on 31 Dec 2016, and they move to a NET arrangement.

How Electric Vehicles are currently being promoted

Production Electric Vehicles in Australia are presently limited to the Mitsubishi i-MiEV, the Nissan Leaf, and the Holden Volt (increasing cost order), and are being promoted and sold thru traditional outlets and by traditional methods. The Holden Volt is a ‘pluggable hybrid’ with an internal combustion engine that charges the battery as a ‘range extender’. A small number of Tesla roadsters ( around 23) have been sold here, but availability of the new RHD model ‘S’ sedan has been delayed to Q1 2014.

With so many internal combustion motor vehicle choices available on the Australian market, and access to the internet and other traditional information sources (advertising on TV, radio and magazines) most buyers of a new vehicle have narrowed their choices down to a few, or a specific, model by the time they visit a motor dealership to negotiate ‘the best deal they can’. At this point in the buying cycle, they are unlikely to consider a ‘switch’ to an electric alternative, particularly given the significant ‘cost differential’ that has historically existed between an EV and an equivalent sized internal combustion vehicle.

How Electric vehicles could be promoted

A customer that is interested in purchasing a PV system is prepared to outlay an ‘up-front’ investment that will be repaid over time. They are generally environmentally conscious, and could already be purchasing ‘Greenpower’ at a cost premium. The discussion they will have with their installer will include:-

– How large a system do I need ?

– How much energy might I ‘export’ and at what return might I expect from my retailer of
choice ?

– How do I ‘future-proof’ my system ? (eg install a larger inverter)

All the above questions are relevant to the addition of an electric vehicle, either now or in the future, and the installation of vehicle charge point (typically a 15amp socket) in conjunction with the PV install and wiring. Switchboards and inverters are often installed in or near the garage or carport. The EV socket could be placed on a dedicated circuit installed in parallel back to the main switchboard and metering panel or near a Solar sub-board. A dedicated circuit could be connected to a Controlled Load relay (Off-peak 1). There are advantages and disadvantages with the above alternatives, that can be discussed between the solar installer and the customer.

By discussing the EV options, the solar installer might ‘up-size’ the solar sale to his benefit, and ‘add value’ by installing the EV socket now, at minimal cost to the customer.

How much solar to charge an EV?

A 1.5kW solar system will provide enough energy to run an EV for 17,500kms per annum (based on 4kWh’s per day/kW installed and 8kms/kWh). A 3kW solar system, operating at 80% output (due to temperature, cloud, dust etc) will provide the demand of 10amps continuous current to charge a vehicle. If an EV battery is at ‘half charge’, then 4 hours sunshine should bring it to full charge. A vehicle ‘charged from the sun’ is effectively FREE to run with ZERO environmental impact (ignoring any FiT opportunity cost).

Commercial Customers and Public facilities – Charge Points

A lot of larger solar systems (30kW or more) are being installed on commercial premises such as licensed clubs, pubs , motels, supermarkets and retail outlets as well as Public facilities such a Libraries, theatres and convention centres. All of these are locations where an EV owner might park for a reasonable period (1 hour or more) and therefore be interested in ‘topping up’ their battery.

For a business that has solar on its roof, there is no energy cost. Even at typical commercial energy rates of 30c/kWh, a one hour charge would cost 75 cents, insignificant to what a ‘cashed up’ EV owner might spend in their store or around town. Travelling EV owners would be encouraged to stay a few days to ‘recharge their batteries’ both literally and metaphorically.

The Victorian Government EV trial has assisted (with other Stakeholders) development of Australian Standards relevant to EV’s. Some of these are not yet finalised.

Screen Shot 2013-04-23 at 1.58.40 PM

But aren’t EVs range limited?

Yes they are. In his first film, “Who killed the Electric Car” (2006), Chris Paine interviews an EV1
owner, who states “…an EV won’t do 100% of your vehicle trips –only99%”.

In my own case I analysed the last 6 months of my logbook for my (fifth) Toyota Prius, remembering I live in Country NSW. Of 140 trips, only 9 exceeded 90kms, ie 94% of my trips were under 90kms. For an EV owner in Sydney or Melbourne I would suggest that figure is around 98%. The stated maximum range (Brochures) for the i-MiEV is 150kms and the Nissan Leaf 170kms. My discussions with an i-MiEV owner of 12 months indicate a regular ‘real world’ performance of 140km (dependant on road conditions, air conditioner use and driving style).

However, some EV’s are capable of travelling significant distances on a single charge. On 18 th May 2012 a Tesla roadster was driven from Sydney to Dubbo on a single charge for the NSW Premiere of the film “Revenge of the Electric Car”.

Statistics from 2011 indicate that 50% of Australian households have access to two or more motor vehicles, including my own. Hence, the ‘other’ car can be the vehicle of choice for longer trips. Short trips do not suit internal combustion engines in terms of fuel economy, as they take time to ‘warm-up’ and achieve full efficiency. This is not the case with EV’s.

What about servicing an EV?

The success of hybrid vehicles, and hence their servicing, has meant that even Country Dealerships have existing technicians familiar with battery powered vehicles.

EV’s often have longer periods between service than their more ‘complicated’ internal combustion engine equivalent. To paraphrase Alan Shepard (the astronaut)”…..I’m sitting in a machine with thousands of components, each supplied by the lowest price tenderer”. Electric motors (whatever type) have one moving part – a rotor inside a stator. The brakes on an EV last longer because regenerative braking reduces the wear on brake pads. No more oil changes and engine coolants, burst radiator hoses, spark plugs, etc etc

The ‘average’ annual kms for a motor vehicle in Australia is less than 15,000kms – the typical service period for an EV – meaning it will be serviced once a year.

The NSW Solar Bonus Scheme (SBS) – History

The NSW Government on 10 November 2009 announced a seven year scheme ending 31 December 2016 and commencing on 1 January 2010. Eligibility under the Scheme was for small customers (households and small businesses consuming less than 160 megawatt hours of electricity each year) who produce renewable energy through solar PV systems and wind turbines connected to the grid and up to 10 kilowatts in capacity.

The objectives of the Scheme are set out in section 15 of the Electricity Supply Act 1995 (the Act). They are as follows:

– to encourage and support persons who want to generate renewable energy as a response to climate change

– to develop jobs in the renewable energy sector by assisting renewable energy generation to compete with non-renewable energy generation

– to increase public exposure to renewable energy technology in order to encourage the whole community to respond to climate change.

The Scheme had the following key features:

1. The tariff rate of 60 cents per kilowatt hour is fixed for the life of the Scheme, meaning it will not vary with the time of the day or during the life of the Scheme.

2. Costs are recovered from all NSW electricity consumers.

3. Small electricity customers (households and small businesses with an annual electricity consumption of up to 160 megawatt hours) are eligible to participate in the Scheme.

4. Only customers with solar PV panels and wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) are eligible to participate in the Scheme.

5. Each eligible small electricity customer is entitled to receive the Solar Bonus Scheme credit for one eligible renewable energy generator (solar PV system or wind turbine) only.

6. It credits eligible customers with a gross meter with a ‘gross’ feed-in tariff rate of 60 cents per kilowatt hour for all the electricity that their eligible solar PV system or wind turbine generates.

7. Solar PV systems installed and connected after 1 January 2010 must be installed by a person, who at the time of the installation had a Grid-Connect Design & Install accreditation from the Clean Energy Council to be eligible for the Solar Bonus Scheme.

8. Certain customers who meet all requirements for eligibility under the NSW Solar Bonus Scheme (other than having gross meters installed) and who prefer to install or remain on net metering, may choose to receive net credits for their generation.

The SBS was the most generous Feed-In-Tariff (FiT) in Australia at the time, and applications followed an exponential growth line as installers ‘ramped up’ staff and prices for panels and inverters halved through a combination of volume, competition and the strong Australian dollar. In addition to the generous FiT, the first 1.5kW of REC’s was eligible for a 5 times multiplier. Hence, by June 2010, only 6 months into the scheme, applications had already passed the 50MW level (the trigger for the schemes review) and NUENERGY was offering customers in Zone 2 of NSW a free 1.5kW system if they placed a $100 refundable deposit.

By August 2010 alarm bells were ringing, and the Minister of the day ordered a review on the 24th August 2010 with submissions closing 30th September 2010. On 27th October 2010 the FiT was reduced to 20cents, with a ‘three week’ grace period till 17th November 2010 for those with a ‘legally binding contract’.

The rapidly escalating cost of the scheme became a political issue in the NSW State election of March 2011, and once elected, the new Lib/NP government moved quickly to ‘rein in’ the costs, initially suggesting a ‘retrospective’ reduction for ALL participants to 20cents which caused uproar from the industry and SBS recipients. After ‘backing down’ on this proposal, all applications were ‘frozen’ on midnight of 28th April 2011 and the SBS formally closed to new applicants on the 1st July 2011. Those customers with an ‘approval’ ultimately were given twelve months to ‘connect’ with the SBS finally ‘wound up’ by notice in the Government Gazette on 1st July 2012.

As at the 12 Feb 2012, 160,000 customers had applied for systems for a total of 358MW (IPART-Fair Price for Solar Final Report). As at 27th July 2012 there were 145,429 connections for a total of 338MW. The vast majority of these customers are GROSS metered.

The NSW Solar Bonus Scheme (SBS) – Recent Changes

In February 2013 the NSW Government announced that SBS customers with a GROSS metered system, could add a second (entirely separate) system that is NET metered without jeopardising their SBS payments. Up until this time, any additions were considered an ‘expansion’ and 60cent customers would drop back to 20cents, although 20cent customers could expand up to the 10kW limit (subject to network capacity approval).

This recent announcement, provides an immediate opportunity for solar installers to make these customers EV ready for when the GROSS scheme ends on 31 Dec 2016, and they move to a NET arrangement. This is particularly relevant for SBS customers with a larger system (3kW or more) where there is likely to be significant export, particularly on weekdays when customers are at work, school etc. The low feed in tariffs (FiT’s) currently being offered by retailers will mean these customers will be keen to store that energy for later use, and whilst ‘stationary’ batteries will be an alternative, a ‘battery on wheels’ is another obvious alternative.

Talking Turkey on Time-Of-Use Tariffs….

Electricity tariffs across Australia are many and varied, and further complicated by the various FiT’s with varying rates and applicability dates. Solar Installers are more likely to understand these, and be able to explain them to a customer, than a Motor Dealership salesperson, who at best will have a mechanical background.

Most customers with Solar will have received an electronic interval meter (smart meter) that may or may not have communications capability (the smart meters rolled out in Victoria do have comms.). Hence, most of these customers will be on a ‘Time of Use’ (TOU) tariff, either by default or by choice. Most residential customers with a Solar system, depending on their usage patterns, will be financially better off on a TOU tariff.

An EV owner, with or without a Solar system, will generally want some flexibility with EV charging, and have access to off-peak rates, and so will seek to be on a TOU tariff. It is also possible to wire a charge point to a ‘dedicated’ circuit that is on controlled load off-peak (typically OP1) that the Utility will switch ‘on’ and ‘off’ remotely at pre-determined times.

The following table summarise Residential TOU tariffs in NSW and the ACT.

Screen Shot 2013-04-23 at 1.59.54 PM

So when do I charge my EV?

The following table reflects my own thoughts for the three NSW distributors only, and would vary in other States with different FiT arrangements. In all cases, I have assumed the customer is on a residential TOU tariff and house consumes around 1 kW continuously.

Screen Shot 2013-04-23 at 2.01.06 PM

How many EV’s? How Quickly?

In November 2009, Warren Buffet told the Houston Chronicle “…in 20 years all the (new) cars on the
road will be electric”. In late 2008 a subsidiary of Berkshire Hathaway (Warren Buffet) acquired a
10% share of BYD (Build Your Dreams) a major Chinese EV Vehicle and battery manufacturer.

Following are some further forecasts of possible EV take-up…….

Screen Shot 2013-04-17 at 1.57.44 PM

Screen Shot 2013-04-24 at 10.42.44 AMChris Dalitz is an EV owner. The opinions expressed in this article are his, and and NOT those of Essential Energy or any other body or organisation of which the author is a member

Comments

14 responses to “EVs and solar power – go together like a horse and carriage”

  1. Malcolm Scott Avatar

    The synergy and facilitation of home EV charging points by solar installers is a point well made. Solar installers are looking for cross sells as well given how competitive their market is. This approach is especially important as we don’t have the EV market sales volumes necessary to get our home charging station install costs down to anything near what a US customer is experiencing (admittedly initially supported by a DOE program).

    I would add that EVs and decentralised dispersed large scale wind go hand in hand as well, especially now that wind has a wholesale and community cost lower than fossil fuel alternatives.

    We need to get more utility from our electricity networks. Whatever the amount that has been sunk into upgrading our electricity distribution networks (a very big number – $50b?), the result is very much higher retail electricity charges driven by the recovery of capital expenditures (increased rate). Compounding this is the reduced electricity demand (decreased volume) across the board and at peak times. This dwarfs the impact of the RET and carbon pollution charges. This is the nightmare scenario for utility
    companies. This investment is a latent and under utilised capability that is currently diminishing our national competitiveness and performance.

    EVs each adding say 12 or more kWh/day demand would add to the volume in the network and should have the effect of reducing retail charges if a large scale transformation to EVs started now.

    Less electricity wasted in refining processes (~1.25kWh per Ltr), less exporting of dollars for fuel imports, and energy security through local supply are important hand and
    glove considerations as well.

  2. Nick Sharp Avatar
    Nick Sharp

    A home EV charging point associated with a PV system surely has a drawback for many? During daylight when the PV panel is generating, the EV is at work Mon-Fri and out and about Sat-Sun. Having one’s PV grid-connected and charging stations at work solves Mon-Fri but not the w/e. And having a spare EV battery that is easily swappable seems quite improbable with today’s battery technology (V.expensive, V.bulky). Hmmm?

    1. John Knox Avatar
      John Knox

      That presumes that the EV owner would take their EV to work each day – isn’t it more likely that, being environmentally aware, they would leave their car at home and take public transport or ride a bike?

      1. Miles Harding Avatar
        Miles Harding

        Yes, this should be the case. Mine has an EV advertising wrap, so is desirable to have it out and about as much as possible, advertising the presence of EVs

    2. Chris Fraser Avatar
      Chris Fraser

      Battery technology would have to become more economical, but a Better Place-style battery swap device in the home garage would allow the PV energy to go straight into the spare battery without converting to AC then back to DC.

      1. Nick Sharp Avatar
        Nick Sharp

        Chris, the PV electricity could only go straight into a spare battery if the voltages are compatible. Even if the elctricity never leaves the home, it might have to be converted to AC to change voltage, then rectified before going into the battery.

      2. Chris Fraser Avatar
        Chris Fraser

        A fairly simple device could step down the PV panels to some reasonable voltage (i don’t think many batteries could take 400V straight from the roof). The other issue is the rate of charging or ‘C’ for the battery. Perhaps there does need to be another battery acting as a buffer ?

      3. Miles Harding Avatar
        Miles Harding

        Spot on with 1.5kW PV for a car charger.

        After the purchase of the EV (approx $50K at present), a battery buffered solar power system doesn’t seem all that expensive. The easiest way to achieve this is definitely to charge a stationary, buffering, battery (48 volt, in my case) from PV on one side and then convert to 240VAC so that normal car chargers and household appliances can be used. Keeping the power down to 3 or 4kw makes the inverter equipment reasonably affordable. Efficient 240VAC inverters, such as Latronics (94%), make the energy cost of converting to 240VAC low.

        With overnight charging and some opportunistic day charging, fast charges are not really needed in the congested urban environment. I think that this requirement is driven by fleet operators and the idea of taking EVs on road trips. Fleet operations make sense, but a fuel efficient diesel or petrol vehicle makes a lot more sense for relatively infrequent road trips. I suspect that this will be the case for a long time.

        My analysis of batteries indicates that prismatic LiFePO4 (Winston Thundersky) is more affordable than lead-acid when deep cycling capability, lifespan and reserve capacity requirements are taken into account.

        1. Miles Harding Avatar
          Miles Harding

          PS

          A sub-hour fast charge will require a charge power range of 20-30kw for Mitsubishi I-Miev or a Nissan Leaf. Both of these cars use a DC fast charge port that allows the external charger to pour energy directly into the battery at the bus voltage, which is approximately 330 Volts.

          The problem is really the power level, which places a lot of strain on the household buffering battery and requires a large power converter to match the car to the buffering battery. Also, fast charging incrementally damages the car battery, so should be done infrequently.

          Doing a fast charge at home makes little sense, as most often, we stay a while once we arrive.

  3. John Knox Avatar
    John Knox

    Any FiT that is less than grid retail parity has the perverse outcome of encouraging the owner of a Solar PV system to use as much of the energy they produce as they can. Currently, PV systems help to lower the peaks on the mains grid thereby reducing wholesale energy prices – this is called the merit order effect.

    This is part of the reason the gentailers are so against the RET being a fixed value – any renewable energy on the network will serve to lower the prices obtained by generators for the energy they produce.

    1. Miles Harding Avatar
      Miles Harding

      Western Australia has this nailed. The FIT is now 8 cents, signalling consumers that letting the energy past the front gate is a mistake.

  4. Diego Matter Avatar
    Diego Matter

    The author writes: “In all cases, I have assumed the customer is on a residential TOU tariff and house consumes around 1 kW continuously”.

    Is the author not aware of energy efficiency!?
    1kW continuously means 24h x 1kWh = 24kWh total usage per day (without all the peaks over 1kW). That is an outrageous usage pattern. Every solar household should be more in the range of 6 to 7kWh total usage per day. Our two person household uses 6kWh per day including the pool pump!

    I’m always baffled that people in Australia consider electricity usage patterns of over 10kWh per day as normal. And the fact that an author on Renew Economy is in the same category speaks volumes for the energy waste still happening in Australia. In fact Australia is in the top three in the world for CO2 emissions.

    Get an energy audit – we can do much better with little investment needed. I’m afraid that all the normal energy efficiency tips on websites don’t help households to go the whole mile. They miss energy hogs that are hard wired and have huge standby usage, like our Fujitsu Aircon, which is using 250W continuously equaling 6kWh/day or 2190kWh a year!

  5. Marc Talloen Avatar
    Marc Talloen

    In April 2013 residential customers in Australia for grid connected PV installations paid on average $2080 to $2230 for 2.50 to 3.50 kWp installed on roofs of a 1 story house.

    A “Solar Carport” of 18 to 25 m2 can support a grid connect PV system of 2.50 to 3.50 KWp providing for sheltered parking combined with PV energy generation.
    If competitively priced such “Solar Carport” may cost <$2500 / KWp and an additional
    $1000 will buy you a good EV home charging station 16A costs <$800 while a 30A fast charging unit can now be bought for $850.
    If you want to have the next generation technology, there is also an Australian developed EV Charger “Charge IQ” developed by DIUS in VIC that is ZigBee certified and has the ability to communicate with smart meters.

    A new off-grid PV system could potentially integrate the EV car battery unit to drastically reduce the size of the battery bank needed to store the PV energy to be available to the house while there is no sunshine. Worldwide, experts are seeking appropriate solutions for such V2H and V2G installations and already some partial solutions are available:

    Mitsubishi
    sells a i-MiEV power box in Japan (see video) that is capable of supplying up to 1500 watts of AC (100V) electricity from the power stored in the vehicle's drive battery, at a cost of $1400 AUD.

    Nissan
    demonstrated a V2H power system that combines with the Nissan Leaf

    Toyota
    Some Toyota Prius users worked out a solution to get emergency power back-up
    from their car battery.

    With the current pricing in Australia for PV systems (and potentially solar carports) and considering some costs for wear and tear as well as parts replacements it is possible to generate electric power at a cost of approximately $0.11/kWh during 20 years. Considering the inefficiencies of DC-AC-DC conversion and energy storage capacity loss over time in batteries, I suggest that we add an extra 20% to determine the price of the electricity available to the EV motor at $0.132/kWh.
    This results in an solar energy cost per 100kms of only 7 x $0.132 = $0.924/100kms
    as compared to +/- $8.46 AUD for an ICE car. Based on a mileage of 20,000 kms
    per year it would lead to fuel savings of $1500/Y.

    If the EV’s battery could also be used to provide back-up power to the house
    some of those costs could be depreciated not only based on car usage which
    makes the comparison even more attractive.

    Currently consumer prices for PEVs in Australia are much higher than in other countries and I firmly believe there is room for more competition and lower pricing.
    I would be glad to join efforts with likewise thinking people to evaluate what can be done to make solar-EV solutions more affordable for regular households.

    If there are more likewise thinking people that share such motivation, please feel free to contact me at: [email protected]

  6. Dean C Avatar

    Hey Chris Dalitz – I read elsewhere that you may be organising an EV event in Newcastle later in 2015? Any idea on details of that event?

Get up to 3 quotes from pre-vetted solar (and battery) installers.