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LOW-INTEREST LOANS FOR RESIDENTIAL SOLAR
HEATING AND COOLING EQUIPMENT
HEARING
BEFORE T H E
SUBCOMMITTEE ON
HOUSING AND COMMUNITY DEVELOPMENT
OP T H E
COMMITTEE ON
BANKING, CURRENCY AND HOUSING
HOUSE OF REPRESENTATIVES
N I N E T Y - F O U E T H
FIRST
CONGRESS
SESSION
ON
H.R. 3849
A B I L L TO E S T A B L I S H I N T H E D E P A R T M E N T OF HOUSING AND URBAN DEVELOPMENT A DIRECT LOW-INTEREST
LOAN PROGRAM TO ASSIST HOMEOWNERS A N D B U I L D E R S
I N P U R C H A S I N G A N D I N S T A L L I N G SOLAR H E A T I N G (OR
COMBINED SOLAR H E A T I N G A N D COOLING) E Q U I P M E N T
H.R. 8524
A B I L L TO A M E N D T H E S M A L L BUSINESS ACT TO ESTABL I S H W I T H I N T H E SMALL BUSINESS A D M I N I S T R A T I O N A
N E W D I R E C T LOW-INTEREST LOAN PROGRAM TO ASSIST
HOMEOWNERS A N D BUILDERS I N PURCHASING AND INS T A L L I N G SOLAR H E A T I N G (OR C O M B I N E D SOLAR H E A T ING A N D COOLING) EQUIPMENT
N O V E M B E R 5, 1975
P r i n t e d f o r the use of the
C o m m i t t e e on B a n k i n g , C u r r e n c y a n d H o u s i n g
U.S. GOVERNMENT PRINTING OFFICE
62-322 O
WASHINGTON : 1975
COMMITTEE
OX BANKING,
CURRENCY
H E N R Y S. R E U S S , Wisconsin,
W R I G H T P A T M A N , Texas
W I L L I A M A. B A R R E T T , Pennsylvania
LEONOR K. (MRS. J O H N B.) S U L L I V A N ,
Missouri
T H O M A S L. A S H L E Y , Ohio
W I L L I A M S. M O O R H E A D , Pennsylvania
R O B E R T G. S T E P H E N S , JR., Georgia
F E R N A N D J. ST G E R M A I N , Rhode Island
H E N R Y B. G O N Z A L E Z , Texas
J O S E P H G. M I N I S H , New Jersey
F R A N K A N N U N Z I O , Illinois
T H O M A S M. R E E S , California
J A M E S M . H A N L E Y , New York
P A R R E N J. M I T C H E L L , M a r y l a n d
W A L T E R E. F A U N T R O Y ,
D i s t r i c t of Columbia
L I N D Y ( M R S . H A L E ) BOGGS, Louisiana
S T E P H E N L. N E A L , N o r t h Carolina
J E R R Y M . P A T T E R S O N , California
J A M E S J. B L A N C H A R D , Michigan
C A R R O L L H U B B A R D , JR., Kentucky
J O H N J. L A F A L C E , New Y o r k
G L A D Y S NOON S P E L L M A N , Maryland
L E S A u C O I N , Oregon
P A U L E. T S O N G A S , Massachusetts
B U T L E R D E R R I C K , South Carolina
P H I L I P H . H A Y E S , Indiana
M A R K W . H A N N A F O R D , California
D A V I D W. EVANS, Indiana
P.
MICHAEL
DIXON,
P.
HOUSING
A L B E R T W . J O H N S O N , Pennsylvania
J. W I L L I A M S T A N T O N , Ohio
G A R R Y B R O W N , Michigan
C H A L M E R S P. W Y L I E , Ohio
J O H N H . ROUSSELOT, California
S T E W A R T B. M c K I N N E Y , Connecticut
J O H N B. C O N L A N , Arizona
G E O R G E H A N S E N , Idaho
R I C H A R D T. S C H U L Z E , Pennsylvania
W I L L I S D. G R A D I S O N , JR., Ohio
H E N R Y J. H Y D E , Illinois
R I C H A R D K E L L Y , Florida
C H A R L E S E. G R A S S L E Y , I o w a
M I L L I C E N T F E N W I C K , New Jersey
PAUL NELSON, Clerk and Staff
WILLIAM
AND
Chairman
Director
General
Counsel
FLAHERTY,
Counsel
ORMAN S. F I N K , Minority
Staff
GRAHAM T . NORTHCP, Deputy Minority
Director
Staff
Director
SUBCOMMITTEE ON H O U S I N G AND C O M M U N I T Y
W I L L I A M A. B A R R E T T , Pennsylvania,
DEVELOPMENT
Chairman
L E O N O R K . ( M R S . J O H N B.) S U L L I V A N , G A R R Y B R O W N , Michigan
Missouri
J- W I L L I A M S T A N T O N , Ohio
T H O M A S L. A S H L E Y , Ohio
J O H N H . R O U S S E L O T , California
W I L L I A M S. M O O R H E A D , Pennsylvania
C H A L M E R S P. W Y L I E , Ohio
R O B E R T G. S T E P H E N S , JR., Georgia
S T E W A R T B. M c K I N N E Y , Connecticut
F E R N A N D J. ST G E R M A I N , Rhode Island J O H N B. C O N L A N , Arizona
H E N R Y B. G O N Z A L E Z , Texas
R I C H A R D K E L L Y , Florida
P A R R E N J. M I T C H E L L , M a r y l a n d
C H A R L E S E. G R A S S L E Y , I o w a
J A M E S M. H A N L E Y , New York
W A L T E R E. F A U N T R O Y ,
D i s t r i c t of Columbia
L I N D Y ( M R S . H A L E ) BOGGS, Louisiana
J E R R Y M . P A T T E R S O N , California
J O H N J. L A F A L C E , New York
L E S A u C O I N , Oregon
T H O M A S M . R E E S , California
G L A D Y S NOON S P E L L M A N , Maryland
J A M E S J. B L A N C H A R D , Michigan
GERALD
R.
BENJAMIN
MCMURRAY,
B.
Staff
MCKEEVER,
RAYMOND K .
JAMES,
SYLVAN KAMM, Professional
ANTHONY
VALANZANO,
m
Director
Counsel
Counsel
Staff
Minority
Member
Counsel
C O N T E N T S
Pa e
Text of—
H.R. 3849
H.R. 8524
*
2
11
STATEMENTS
Barfield, Claude E., Deputy Assistant Secretary of the Department of
Housing and U r b a n Development, Office of Research and D e m o n s t r a t i o n .
B u t t , Sheldon H., president, Solar Energy I n d u s t r y Association
DeBlois, Robert, executive vice president of the DeBlois O i l Co., Pawtucket,
R.I., chairman, Solar Energy Application Committee, New England Fuel
I n s t i t u t e ; accompanied by Charles H. B u r k h a r d t , executive vice president of Xew England F u e l I n s t i t u t e
Gude, Hon. Gilbert, a Representative i n Congress f r o m the State of
Maryland
Morrison, C. A., director of research, Solar Energy and Energy Conversion
Laboratory, University of F l o r i d a , Gainesville, F l a
Ottinger, Hon. R i c h a r d L., a Representative i n Congress f r o m the State of
New Y o r k
ADDITIONAL
INFORMATION
S U B M I T T E D FOB T H E
88
61
55
21
83
46
RECORD
Barfield, Claude E. :
Prepared statement
89
Reply to questions submitted by Hon. W i l l i a m S. M o o r h e a d —
107
Boggs, Hon. L i n d y , a Representative i n Congress f r o m the State of Louisiana, statement on H.R. 3849
108
B u r k h a r d t , Charles H., reply to questions submitted by Hon. W i l l i a m S.
Moorhead
03,100
B u t t , Sheldon H., president, Solar Energy I n d u s t r y Association:
Prepared statement
63
Reply to questions submitted by Hon. W i l l i a m S. Moorhead— 93,100,101,
102,103,105,107
DeBlois, Robert, prepared statement
58
Fawcett, Robert, New England Fuel I n s t i t u t e , statement before the Senate
Select Committee on Small Business, October 8, 1975
110
Gude, Hon. G i l b e r t :
Prepared statement
28
"Solar System H i t by Storm," article f r o m the Washington Post dated
November 2, 1975 accompanied by M r . Gude's comments
43
Melicher, Ronald W. associate professor of finance, Graduate School of
Business A d m i n i s t r a t i o n , University of Colorado, Boulder, Colorado,
paper prepared by, entitled " L e n d i n g I n s t i t u t i o n Attitudes T o w a r d Solar
H e a t i n g and Cooling of Residences"
115
Moorhead, Hon. W i l l i a m S., questions submitted t o :
Claude E. Barfield
107
Charles H . B u r k h a r d t
93,100
Sheldon H . B u t t
93,100,101,102,103,105,107
C. A. Morrison
101,102,103,104
(in)
IV
Page
Morrison, C. A . :
84
Prepared statement
Attached m a t e r i a l including articles by D r . E. A. F a r b e r and associates of the U n i v e r s i t y of F l o r i d a :
" A Solar Powered V - 2 Vapor Engine"
224
" E l e c t r i c i t y F r o m Solar E n e r g y "
187
Publications by D r . E. A. Farber, chronological l i s t i n g of
(1948-1975)
193
"Solar A i r Conditioning"
180
"Solar Cooking and B a k i n g "
179
"Solar Electric T r a n s p o r t a t i o n "
185
"Solar Energy Conversion & Development at the U n i v e r s i t y of
Florida"
165
"Solar Engines"
184
Solar equipment manufacturers, l i s t i n g of
189
"Solar Furnaces"
181
"Solar House H e a t i n g "
183
"Solar Properties of M a t e r i a l s "
186
"Solar S w i m m i n g Pool H e a t i n g "
218
"Solar W a t e r H e a t i n g "
177
" S w i m m i n g Pool H e a t i n g "
182
" T h e Solar Electric C a r — U r b a n Vehicle Performance"
212
" T h e U n i v e r s i t y of F l o r i d a Solar Energy L a b o r a t o r y "
236
" T h e U n i v e r s i t y of F l o r i d a Solar House"
230
Reply t o questions of Hon. W i l l i a m S. Moorhead
101,102,103,104,105
New E n g l a n d F u e l I n s t i t u t e , statement by Robert Fawcett, before the
Senate Select Committee on Small Business, October 8, 1975
110
N a t i o n a l Association of Home Builders, Washington, D.C., letter to Chairm a n B a r r e t t on H.R. 3849
110
Ottinger, Hon. R i c h a r d L., prepared statement
49
Sheet M e t a l Workers' I n t e r n a t i o n a l Association, statement on H . R . 3849__
109
LOW-INTEREST
HEATING
LOANS
AND
FOR
RESIDENTIAL
COOLING
SOLAR
EQUIPMENT
W E D N E S D A Y , N O V E M B E R 5, 1975
H O U S E OF R E P R E S E N T A T I V E S ,
SUBCOMMITTEE ON H O U S I N G AND
C O M M U N I T Y DEVELOPMENT,
C O M M I T T E E ON B A N K I N G , CURRENCY AND H O U S I N G .
Washington,
D.C.
T h e subcommittee met, p u r s u a n t t o notice, at 10:10 a.m. i n r o o m
2128, R a y b u r n H o u s e Office B u i l d i n g , W i l l i a m S. M o o r h e a d p r e s i d i n g .
Present: Representatives Moorhead, St Germain, Boggs, Spellman,
Rousselot, W y l i e , a n d Conlan.
M r . MOORHEAD. T h e S u b c o m m i t t e e o n H o u s i n g a n d C o m m u n i t y
D e v e l o p m e n t is i n o r d e r .
T h e s u b c o m m i t t e e meets t o d a y t o consider l e g i s l a t i o n t o a u t h o r i z e
financial incentives f o r the i n s t a l l a t i o n o f solar h e a t i n g a n d cooling
equipment i n residential buildings. T h e hearings t o d a y w i l l focus
p r i m a r i l y o n H . R . 3849, a b i l l i n t r o d u c e d b y C o n g r e s s m a n G u d e , w h o
i s w i t h us t h i s m o r n i n g . T h i s b i l l a u t h o r i z e s H U D t o m a k e d i r e c t l o a n s
at b e l o w - m a r k e t interest rates t o homeowners a n d builders w h o p l a n
t o i n s t a l l s o l a r e n e r g y e q u i p m e n t i n s i n g l e a n d m u l t i f a m i l y residences.
T h e b i l l b e f o r e us t o d a y proposes one m e t h o d t o encourage the
acceptance o f p r e s e n t l y a v a i l a b l e solar t e c h n o l o g y f o r r e s i d e n t i a l p u r poses. I h o p e t h e h e a r i n g w i l l c l a r i f y s e v e r a l i m p o r t a n t q u e s t i o n s .
F i r s t , does s o l a r e n e r g y h a v e t h e p o t e n t i a l f o r e c o n o m i c a l l y m e e t i n g
a s u b s t a n t i a l p a r t o f r e s i d e n t i a l e n e r g y needs? S e c o n d , is t h e e q u i p m e n t as i t i s p r e s e n t l y a v a i l a b l e e f f e c t i v e , r e l i a b l e a n d c o s t - e f f e c t i v e ?
T h i r d , i s F e d e r a l s u p p o r t necessary t o e n c o u r a g e t h e a c c e p t a n c e o f
t h e t e c h n o l o g y ? F i n a l l y , is a d i r e c t l o a n p r o g r a m t o homeowners a n d
b u i l d e r s as p r o p o s e d i n t h i s b i l l t h e m o s t e f f e c t i v e m e t h o d t o use ?
I a m pleased t h a t t w o o f m y d i s t i n g u i s h e d colleagues, w h o are most
expert i n the field o f solar energy applications, are a p p e a r i n g before
us t o d a y . T h e H o n o r a b l e G i l b e r t G u d e is the a u t h o r o f t h e l e g i s l a t i o n
w e w i l l c o n s i d e r , a n d t h e H o n o r a b l e R i c h a r d O t t i n g e r , w h o h a s cos p o n s o r e d H . R . 8524, a s i m i l a r p r o p o s a l t o be a d m i n i s t e r e d b y t h e
S m a l l Business A d m i n i s t r a t i o n , w i l l j o i n us l a t e r t h i s morning.*
[ T h e t e x t o f H . R . 3849 a n d H . R . 8524 f o l l o w s : ]
(1)
2
94TH C O N G R E S S
Se88on
I N
THE
V
V
V >
r k A
r L R.
HOUSE
OF
i l / \
3849
REPRESENTATIVES
FEBRUARY 27,1975
M r . GUDE introduced the following b i l l ; which was referred to the Committee
on Banking, Currency and Housing
A
BILL
To establish in the Department of Housing and Urban Development a direct low-interest loan program to assist homeowners
and builders in purchasing and installing solar heating (or
combined solar heating and cooling) equipment.
1
Be it enacted by the Senate and House of Representa-
2
lives of the United States of America in Congress assembled,
3
F I N D I N G S A N D PURPOSE
4
SECTION 1. (a) The Congress finds that the heating
5
and cooling of private homes accounts for a significant
6
portion of our national energy consumption, and that the
7
expected substantial increases in the cost 'of oil, gas, and
8
electricity w i l l significantly and adversely affect millions of
9
American homes. The Congress further finds that,
1
with
3
2
1
technologies for solar heating having developed to the point
2
of commercial application and improved solar heating units
3
becoming increasingly available, and with technologies for
4
solar cooling expected to reach the point of commercial
5
application within a relatively few years, a program of
6
Federal assistance in purchasing and installing solar heating
7
equipment or combined solar heating and cooling equipment
8
can provide a new opportunity for the efficient heating and
9
cooling of homes despite the energy shortage.
10
(b) I t is the purpose of this Act to provide a source
11 of financial assistance for homeowners and builders so as
12
to enable them to pureh&se and install solar heating equip-
13 ment or combined solar heating and cooling equipment while
14
substantially reducing energy use.
1 5
AUTHORIZATION
OF
LOANS
SEC. 2. (a) I n order to carry out the purpose of this
—
Act, the Secretary of Housing and Urban Development
(hereinafter referred to as the "Secretary") is authorized
19
to make loans as provided in this section to individuals and
20
families owning and occupying one- to four-family residential
21
structures, and to persons engaged in building residential
22
structures of any kind, to assist them in purchasing and in-
23
stalling qualified solar heating or solar heating and cooling
24
equipment (as defined in section 3) in such structures.
4
10
1
2
(b) A loan made under this section w i f j i respect to any
residential structure shall—
3
(1) be in such amount, not exceeding 75 per centum
4
of the cost of purchasing and installing the equipment
5
involved, and not exceeding—
q
( A ) $6,000 in the case of.a one- to four-family
7
structure,
3
(B) $5,700 per ^welling unit in the case of
9
a multifamily structure containing five or more but
IQ
less than twenty-five such units,
(O) $5,400 per dwelling unit in the case of
12
a multifamily structure containing twenty-five or
13
more but less than one hundred such units,
14
(D) $4,800 per dwelling unit ^iji the case of a
15
multifamily structure containing one hundred or
16
more but less than two hundred such units, or
17
(E) $4,500 per dwelling unit in the case of a
18
multifamily structure containing two hundred or
19
more such units,
20
as may be necessary to enable the owner or builder of
21
such structure to purchase and install qualified solar heat-
22
ing or solar heating and cooling equipment which is suit-
23
able and appropriate for such structure, including the
24
cost of any necessary modifications in the structure itself,
5
10
1
taking into account the climatic, meteorogical, and re-
2
lated conditions prevailing in the region where the struc-
3
ture is located, as established by the Secretary in regula-
4
tions prescribed by him and in effect at the time of the
5
loan;
6
(2) bear interest at a rate equal to the average
7
market yield (computed as of the end of the calendar
8
month preceding the month in which the loan is made)
9
on all marketable interest-bearing obligations of the
10
United States then forming a part of the public debt
11
(with such average yield, if not a multiple of one-
12
eighth of 1 per centum, being adjusted to the nearest
13
such multiple), plus one-half of 1 per centum for admift-
14
istrative costs;
15
(3) have a maturity not exceeding—
16
17
( A ) eight years in the case of a one- to fourfamily structure, or
18
19
(B) Fifteen years in the case bf a multifamily
structure,
20
except that if the loan is made to the builder of a struc-
21
ture which is sold to another person for occupancy,
22
rental, resale, or any other purpose, the maturity of
23
the loan shall not extend beyond the date of the sale
24
to such other person; and
25
(4)
be subject to such additional terms, condi-
2
6
1
tions, and provisions as the Secretary may impose in
2
order to assure that the purpose of this Act is effec-
3
tively carried out.
4
(c) Each application for a loan under this section shall
5
be accompanied by detailed plans for the purchase and
6
installation of the proposed equipment and an estimate of
7
the costs involved. No such application shall be approved
8
unless the Secretary finds that the proposed equipment is
9
suitable and appropriate and will be effective, that the costs
10 w i l l not be excessive, and that the purchase and installation
11 of the equipment w i l l not involve elaborate or extravagant
12
design or materials.
13
(d) I n making loans under this section, the Secretary
14
shall impose such standards and take such actions as may
15
be necessary or appropriate to assure that both one- to four-
16 family structures and multifamily structures share equitably
17
in the funds provided for such loans under section 7.
18
Q U A L I F I E D SOLAR H E A T I N G OR SOLAR H E A T I N G A N D
19
COOLING E Q U I P M E N T
20
SEC. 3. (a) For purposes of this Act—
21
(1) the term "qualified solar heating equipment"
22
means equipment which utilizes solar energy to provide
23
heating for a residential structure (including all neces-
24
sary fittings and related installations) and which is certi-
25
fied
by the Secretary—
7
2
1
( A ) as being designed to meet more than 40
2
per centum of the total heating needs
(including
3
domestic hot water)
4
which it is intended, or substantially all of the needs
5
of such a structure for domestic hot water (where
6
its remaining heating needs are met by other meth-
7
ods), and
of the type of structure for
8
(B) as meeting minimum standards (as devel-
9
oped under the Solar Heating and Cooling Demon-
10
stration Act of 1974 (Public Law 9 3 - 4 0 9 ) )
11
respect to durability of parts, efficiency, ease of re-
12
pair, availability of spare parts, acceptability of cost,
13
technical feasibility of design or proven workability,
14
and such other matters as the Secretary may con-
15
sider relevant or appropriate; and
16
(2) the term "qualified solar heating and cooling
17
equipment" means equipment which utilizes solar energy
18
to provide both heating and cooling for a residential
19
structure
20
installations) and which is certified by the Secretary—
21
( A ) as being designed to meet both the heating
22
needs of the type of structure for which it is in-
23
tended,
24
(1) ( A ) of this subsection, and substantially all of
25
the cooling needs of such a structure, and
with
(including all necessary fittings and related
to
the
extent
required
by
paragraph
8
10
1
(B)
as meeting minimum standards
(as de-
2
veloped under the Solar Heating and Cooling Dem-
3
onstration Act of 1974 (Public Law 9 3 - 4 0 9 ) ) with
4
respect to the matters specified in or under para-
5
graph
(1) (B)
of this subsection.
6
(b) I n carrying out its functions under the Solar Heat-
7
ing and Cooling Demonstration Act of 1974 and in support
8
of the objectives of this Act, the Energy Research and
9
Development Administration shall—
10
(1) establish a mechanism or procedure (or both)
11
for the inspection and evaluation of each type or model
12
of solar heating and solar heating and cooling equip-
13
ment, making provision for dealing w i t h applications
14
received from manufacturers and for the consideration
15
of comments received from homeowners already using
16
such equipment,
17
(2) review each new solar heating or solar heating
18
and cooling unit, system, or component entering the
19
market,
20
(3) periodically
(no less often than once every
21
three years) review all outstanding certifications granted
22
with respect to solar heating or solar heating and cool-
23
ing equipment, and recommend the prospective rescis-
24
sion of such certifications {or appropriate modifications
25
in the equipment involved) whenever i t finds that such
9
10
1
equipment no longer meets applicable standards or
2
criteria,
3
(4) periodically transmit its findings and recom-
4
mendations under this subsection to the Secretary for
5
use in the performance of his functions under subsection
6
(a) of this section, and
7
(5) take such other actions, and impose such other
8
conditions and requirements, as will promote the ob-
9
jectives of this Act.
10
DISSEMINATION OP I N F O R M A T I O N
11
SEC. 4. The Secretary shall provide to any person upon
12
his or its request (without regard to whether or not such
13
person is making or proposes to make application for a loan
14
under section 2)
15
concerning recommended standards and types of qualified
16
solar heating or solar heating and cooling equipment ap-
full, complete, and current information
17 j>ropriate for use in residential structures of varying sizes
18
and types and in various regions of the country.
19
20
A D M I N I S T R A T I V E PROVISIONS
SEC. 5. I n the performance of, and with respect to, the
21 functions, powers, and duties vested in him by this Act, the
22
Secretary shall
23
vested in him) have the functions, powers, and duties set
24
forth in section 402 (except subsections (a) and (c) ( 2 ) )
25
of the Housing Act of 1950.
(in addition to any authority otherwise
10
10
1
PENALTIES
2
SEC. 6. Any person who makes any false statement or
3
misrepresents any material fact for the purpose of obtain-
4
ing a loan under this Act, or who violates any provision of
5
this Act or of a loan contract entered into under this Act,
6
shall be fined not more than $1,000 or imprisoned not more
7
than one year or both.
8
APPROPRIATIONS; REVOLVING FUND
9
SEC. 7. There is authorized to be appropriated the sum
10
of $100,000,000 to provide an initial amount for the pro-
11 gram under this Act, and such additional sums thereafter
12
as may be necessary to carry out such program. Amounts
13
appropriated pursuant to this section shall be placed in and
14
constitute a revolving fund which shall be available to the
15 Secretary for use in carrying out this Act.
16
17
EFFECTIVE DATE
SEC. 8. The authority of the Secretary to make loans
18 under this Act shall become effective six months after the
19 date of the enactment of this Act, and shall expire ten years
20 after such date.
11
94TH c o n g r k s s
1ST SESSION
IN
THE
v v
J
J
n
.
R
HOUSE
r \ w * r %
8
5
2
.
OF
A
4
REPRESENTATIVES
JULY, 10,1975
M r . GUDE (for himself and M r . OTTINGER) introduced the following b i l l ; which
was j o i n t l y referred to the Committees on Small Business and Banking,
Currency and Housing
A
BILL
To amend the Small Business A c t to establish within the Small
Business Administration a new direct low-interest
loan
program to assist homeowners and builders i n purchasing
and installing solar heating
and cooling)
(or combined solar heating
equipment.
1
Be it enacted by the Senate and House of Representa-
2
tives of the United States of America in Congress assembled,
3
F I N D I N G S A N D PURPOSE
4
ISECTION 1. (a) (1) The Congress finds that the heat-
5
ing and cooling of residential structures accounts for a signif-
6
icant portion of our national energy consumption, and that
7
the expected substantial increases in the cost of oil, gas, and
8
electricity w i l l significantly and adversely affect millions of
I
12
1
American homes. The Congress further finds that, with
2
technologies for solar heating having developed to the point
3
of commercial application and improved solar heating units
4
becoming increasingly available, and with technologies for
5
solar cooling expected to reach the point of commercial ap-
6
plication within a relatively few years, a program of Federal
7
assistance in purchasing and installing solar heating equip-
8
ment or combined solar heating and cooling equipment can
§
provide a new opportunity for the efficient heating and
10
cooling of homes despite the energy shortage.
11
(2) The Congress recognizes that small business con-
12
cerns have already demonstrated their ability to participate
13
effectively in the assembly and marketing of solar heating
equipment and are increasingly engaging i n commercial
operations in this field, and declares that it would be in the
national interest to place special emphasis upon the small
^
business segment of the economy in any program of Federal
assistance of the kind described in paragraph
(1).
19
(b) I t is the purpose of this A c t to provide a source
20
of financial assistance for homeowners and builders so as to
enable them to purchase and install solar heating equipment
22
or combined solar heating and cooling equipment, primarily
through the small business segment of the economy, in order
2 t o substantially reduce energy use.
13
10
1
SEC. 2. Section 7 of the Small Business Act is amended
2
by adding at the end thereof the following new subsection:
3
"(1)
(1) I n addition to its other functions under this
4
Act, the Administration is authorized to make loans as pro-
5
vided in this subsection to individuals and families owning
6
and occupyng one- to four-family residential structures, and
7
to persons engaged in building residential structures of any
8
kind, to assist them in purchasing and installing qualified
9
solar heating or solar heating and cooling equipment
10
11
12
defined in paragraph ( 4 ) )
in such structures,
" ( 2 ) A loan made under this subsection with respect
to any residential structure shall—
13
^
(as
" (A)
be in such amount, not exceeding 75 per
centum of the cost of purchasing and installing the
equipment involved, and not exceeding—-
16
^
18
" (i) $6,000 per dwelling unit in the case of
a one- to four-family structure,
" (ii) $5,700 per dwelling unit in the case of a
19
multifamily structure containing five or more but
20
less than twenty-five such units,
21
" (iii) $5,400 per dwelling unit in the case of a
22
multifamily structure containing twenty-five or more
23
but less than one hundred such units,
24
62-322 O - 75 - 2
" (iv) $4,800 per dwelling unit in the case of a
14
10
1
multifamily structure containing one hundred ot
2
more but less than two hundred such units, or
3
" (v) $4,500 per dwelling unit in the case of
4
a multifamily structure containing two hundred or
5
more such units,
6
as may be necessary to enable the owner or builder of
7
such structure to purchase and install qualified solar
8
heating or solar heating and cooling equipment which is
9
suitable and appropriate for such structure, including the
10
cost of any necessary modifications in the structure
11
itself, taking into account the climatic, meterological,
12
and related conditions prevailing in the region wherG
13
the structure is located, as established by the Adminis-
14
tration in regulations prescribed by it and in effect at
15
the time of the loan;
16-
" ( B ) bear interest at a rate equal to the average
17
market yield (computed as of the end of the calendar
18
month preceding the month in which the loan is made)
19
on all marketable interest-bearing obligations of the
i
20
United States then forming a part of the public debt
21
(with such average yield, if not a multiple of one-
2?
eighth of 1 per centum, being adjusted to the nearest
23
such multiple), plus one-half of 1 per Centum for administrative costs;
25
" (0) have a maturity not exceeding—
15
5
1
" ( i ) eight years i n the case of a one- to four-
2
f a m i l y structure, or
3
" ( i i ) fifteen years i n the case of a m u l t i f a m i l y
4
structure,
5
except t h a t if the loan is made to the builder
g
structure w h i c h is sold to another person for occupancy,
7
rental, resale, or any other purpose, the m a t u r i t y of the
8
loan shall not extend beyond the date of the sale to such
9-
other person; and
10
" (D)
of a
be subject to such additional terms, condi-
11
tions, and provisions as the A d m i n i s t r a t i o n m a y impose
12
i n order to assure that the purpose of this subsection is
13
effectively carried out.
14
" ( 3 ) ( A ) E a c h application for a loan under this subsec-
15
tion shall be accompanied b y detailed plans for the purchase
16
and installation of the proposed equipment and an estimate of
17
the costs involved.
18
"'(B)
19
N o such application shall be approved unless—
" (i)
the A d m i n i s t r a t i o n
finds
that the
proposed
20
equipment is suitable and appropriate and w i l l be effec-
21
tive, t h a t the costs w i l l not be excessive, and that the
22
purchase and installation of
23
i n v o l v e elaborate or extravagant design or
24
and
25
"(ii)
the equipment
will
not
materials;
the proposed equipment is being purchased
16
10
1
f r o m a small business concern {as defined b y the A d m i n -
2
istration under section 3)
3
applicant, w i l l be installed b y a small business concern
4
(as so defined) ; except that the requirement of this
5
clause m a y be w a i v e d b y the A d m i n i s t r a t i o n i n a n y case
6
upon a specific f i n d i n g that there is no small business
7
concern w i t h i n
8
structure i n v o l v e d w h i c h is engaged i n m a r k e t i n g
9
installing solar heating or solar heating and
two
and, unless installed b y the
hundred and f i f t y
miles
of
the
or
cooling
10
equipment that w o u l d meet ( w i t h respect to such struc-
11
ture) the requirements of clause ( i ) .
12
"(C)
I n m a k i n g loans under this subsection, the A d -
13
ministration
14
actions as m a y be necessary or appropriate to assure that
15
both one- to f o u r - f a m i l y structures and m u l t i f a m i l y structures
1®
share equitably i n the funds provided for such loans.
17
18
shall impose
such standards
and
take
such
" ( 4 ) F o r purposes of this subsection—
"(A)
the term 'qualified solar heating equipment'
19
means equipment w h i c h utilizes solar energy to p r o v i d e
20
heating for a residential structure
21
sary fittings and related installations)
22
certified b y t h e - A d m i n i s t r a t i o n —
23
( i n c l u d i n g all necesand w h i c h
is
" (1) as being designed to meet more than 4 0
per centum of the total heating needs
domestic hot w a t e r )
(including
of the type of structure for
17
7
1
w h i c h i t is intended, or substantially all of the needs
2
of such a structure for domestic hot water (where its
3
remaining
4
m e t h o d s ) , and
heating
needs
are
met
by
other
5
" ( i i ) as meeting m i n i m u m standards (as devel-
6
oped under the Solar H e a t i n g and C o o l i n g Dernon-
7
stration A c t of 1974
8
modified b y the A d m i n i s t r a t i o n to the extent appro-
9
priate for application under this subsection)
(Public L a w 9 3 - 4 0 9 )
and
with
10
respect to durability
of parts, efficiency, ease of
11
repair, availability of spare parts, acceptability of
12
cost, technical feasibility of design or proven w o r k -
13
a b i l i t y , and such other matters as the A d m i n i s t r a -
14
t i o n m a y consider relevant or appropriate; and
15
" ( B ) the t e r m 'qualified solar heating and cooling
16
equipment' means equipment w h i c h utilizes solar energy
17
to provide both heating and cooling for a residential
18
structure
19
installations)
20
tration—
(including all necessary fittings and related
and w h i c h is certified b y the
Adminis-
21
" ( i ) as being designed to meet 'both the heating
22
needs of the type of structure for w h i c h it is in--
23
tended, to the extent required b y subparagraph
24
(i)
25
(A)
of this paragraph, and substantially all of the
cooling needs of such a structure, and
18
8
j
" (ii) as meeting minimum standards (as de-
2
veloped under
3
Demonstration Act of 1974 (Public Law 93-409)
4
and modified by the Administration to the extent
5
appropriate for application under this subsection)
6
with respect to the matters specified in or under sub-
^
paragraph (A) (ii) of this paragraph.
g
g
"(5)
the Solar Heating and
Cooling
I n carrying out its functions under the Solar
Heating and Cooling Demonstration Act of 1974 and in sup-
10
Por^
H
and Development Administration shall—
objectives of this subsection, the Energy Research
12
" ( A ) establish a mechanism or procedure (or both)
13
for the inspection and evaluation of each type or model
14
of solar heating and solar heating and cooling equip-
15
ment, making provision for dealing with applications
16
received from manufacturers and for the consideration
17
of comments received from homeowners already using
18
such equipment,
19
" ( B ) review each new solar heating or solar heat^
20
ing and cooling unit, system, or component entering the
21
market,
22
"(C)
periodically (no less often than once every
23
three years) review all outstanding certifications granted
24
with respect to solar heating or solar heating and cool-
25
ing equipment, and recommend the prospective rescis-
19
10
1
sion of such certifications (or appropriate modifications
2
in the equipment involved) whenever i t finds that such
3
equipment no longer meets applicable standards or
4
criteria,
5
" ( D ) periodically transmit its findings and recom-
6
mendations under this paragraph to the Administration
7
for use in the performance of its functions under para~
8
graph ( 4 ) , a n d
9
" (E) take such other actions, and impose such other
10
conditions and requirements, as w i l l promote the objec-
11
tives of this subsection.
12
"(6)
13
The Administration shall provide to any person
upon request (without regard to whether or not such person
14 is making or proposes to make application for a loan under
15
this subsection) full, complete, and current information con-
16
cerning recommended standards and types of qualified solar
17 heating or solar heating and cooling equipment, available
18
from small business concerns, which is appropriate for use
19
in residential structures of varying sizes and types and in
20
various regions of the country.".
21
SEC. 3. (a) Section 4 (c) (1) of the Small Business Act
22 is amended by striking out "and" immediately before " (B)
23
and by inserting before the period at the end thereof the
24
following:
25
fund which shall be available for financing functions per-
and ( 0 )
a solar heating and cooling loan
20
10
1
formed under section 7 (1) of this Act, including administra-
2
tive expenses in connection with such functions".
3
(b) Section 4 (c) (2) of such Act is amended by strik-
4
ing out "and" immediately before " ( B ) " , and by insert-
5
ing before the period at the end thereof the following: " , and
6
(C) pursuant to section 7 (1) of this Act, shall be paid into
7
the solar heating and cooling loan fund".
8
(c) Section 4 ( c ) (4) of such Act is amended by strik-
9
ing out "and" immediately before " ( D ) a n d by inserting
10
before the period at the end thereof the following: " ; and
11
(E)
under section 7 (1)
of this Act, shall not exceed
12 $600,000,000".
13
SEC. 4. (a) The authority of the Small Business Administration to make loans under section 7 (1) of the Small
^
1 r
Business Act
(as added by section 2 of this Act)
shall
become effective six months after the date of the enactment
17
of this Act, and shall expire ten years after such date.
^
(b) Prior to the date on which its authority to make
loans under section 7 (1) of the Small Business Act becomes
^
effective under subsection (a)
of this section, the Small
22
Business Administration shall promulgate and publish the
legulations necessary to carry out its functions under such
23
section 7(1) ,
21
M r . M O O R H E A D . A f t e r M r . Gude speaks, a panel of experts involved
i n solar energy research and application w i l l present their testimony.
A t the conclusion of the panel's testimony, we w i l l be pleased to hear
f r o m M r . Claude Barfield, the Deputy Assistant Secretary of the Department of H o u s i n g and U r b a n Development i n charge of the Office
of Research and Demonstration.
M r . Gude, w i l l you come f o r w a r d ? I p a r t i c u l a r l y welcome you because we do serve together on the Subcommittee on Conservation,
Energy, and X a t u r a l Resources. So, we have duplicating interests i n
this legislation.
M r . W Y L I E . M r . Chairman, thank you. I too want to welcome M r .
Gude. I appreciate your coming here, and I commend you f o r your
interest i n solar energy development. I have long had an interest i n
solar energy development, as you know, and a lot of the i n i t i a l research has been done by the Battelle Memorial Institute, which is
located i n m y congressional district.
A l t h o u g h I have some reservations about a Government loan program—added bureaucracy and replacement of a portion of the private
sector—I do agree that a solar heating and cooling incentive is necessary to our overall energy struggle.
M a x i m u m impact i n i t i a l l y w i l l be i n the above-average income
groups regardless of incentive, unless that incentive were to be extremely large, simply because the solar energy technology is s t i l l
today largely a custom process and very expensive. Thus, even w i t h
incentives, the cost would be prohibitive to the low and lower-middle
income groups. A s the incentives increase demand, which w i l l i n t u r n
encourage mass production and lower u n i t costs, lower income groups
w i l l be brought in.
The point I am m a k i n g is t h a t a tax incentive is a better incentive
f r o m a standpoint of simplicity and f r o m a standpoint of impact on
the affected group.
B u t , there is a strong argument f o r the Committee on Banking,
Currency and Housing acting on an incentive f o r solar that M r . Gude
does not make. T h a t is the tax incentive package that is included i n
H . R . 6860. Despite the Senate Finance Committee's receptivity to
the solar provisions—they maintained all of the tax credits, increasi n g several—the b i l l overall is i n limbo. I t is unlikely to see any f u r ther committee action soon. A clean solar b i l l should pass much more
quickly, and the House Ways and Means Committee is bogged down
i n tax reform.
T h a n k you, M r . Chairman.
M r . M O O R H E A D . Y O U may proceed, M r . Gude.
STATEMENT OF HON. GILBERT GUDE, A REPRESENTATIVE I N
CONGRESS FROM THE STATE OF MARYLAND
M r . G U D E . T h a n k you, M r . Chairman and Congressman W y l i e . A s
you have suggested, the question of solar energy and what i t means
i n today's economy is the other side of the coin when we consider
conservation. I must say I am delighted this subcommittee has shown
interest i n our national energy conservation efforts, and solar energy
i n particular. Energy conservation is espeically relevant to housing
22
concerns, since some 25 percent of our total energy consumption currently goes into heating, cooling, and hot water heating.
I t is m y goal today to take up a number of different questions relati n g to solar heating and cooling i n residential structures, and I hope
to convince subcommittee members of three things.
F i r s t , lasting and meaningful energy conservation i n heating and
cooling can only be obtained through large-scale conversion to alternative, renewable energy sources, particularly solar energy.
Second, the technology necessary to b u i l d efficient solar heating
equipment is available today, and i n many parts of the country i t is
already economical to install, particularly when compared to electric
heat on a life-cycle cost basis.
A n d t h i r d , the nature of the energy crisis makes i t imperative t h a t
we accelerate the process of conversion to solar. Declining solar
prices due to mass production and f u r t h e r technological development
and increasing fossil fuel prices make the good economics of solar inevitable. The time i t takes to reach that point on a national scale
represents wasted fuel. A sound national energy policy demands Government incentives to speed up the inevitable process of conversion to
solar through overcoming resistance to change.
I ask unanimous consent that m y entire statement be included i n the
record, and I w i l l just address myself to portions of it.
M r . MOORHEAD. W i t h o u t objection, your entire statement w i l l be
made part of the record.
M r . GUDE. There is no need for me to repeat f o r you statistics on the
depth of the energy crisis we face. I t and its various ramifications are
behind much of the legislation we have considered this year, as we
attempt to deal w i t h both our shortrun vulnerability to an O P E C
embargo and the longrun certainty that our conventional sources of
energy—and indeed, our whole way of looking at energy and energy
use—must change.
Today's hearing is particularly relevant to the latter, as we face the
absolute certainty of the eventual exhaustion of fossil fuels, particul a r l y oil and natural gas, the t w o most widely used home heating
fuels. E x i s t i n g natural gas reserves are projected to r u n out before
the end of this century at present consumption rates. The o i l picture
is marginally less bleak, though our continuing dependence on foreign
sources of supply is an added factor of concern. A t h i r d alternative,
heating by electricity, is not only a relatively inefficient method, but
the bulk of our electric generation today is dependent on those same
fossil fuels, w i t h large-scale conversion to nuclear plants some years
away, even assuming current problems and controversies about nuclear can be resolved.
T o m y mind, the obvious answer is solar. I t is available now. I t s
energy source is inexhaustible. I t is clean and nonpolluting. I t does
not depend on power or pipelines or central transmission stations. I t
is relatively maintenance-free. We have the equipment now to reduce
current fossil fuel consumption f o r heating by a substantial amount,
and to insure the same level of reduction i n future construction. A
General Electric phase 0 study f o r the National Science Foundation
indicates the magnitude involved:
Of the 60 m i l l i o n buildings to be constructed i n the U n i t e d States i n the n e x t 5
years, a p p r o x i m a t e l y 40 m i l l i o n were f o u n d to be viable cost-effective candidates
23
f o r solar systems . . . I f a l l these buildings were so equipped, the yearly
equivalent electric power savings w o u l d be approximately 1,500 billion k i l o w a t t
hours . . . by the end of the century—equivalent to the t o t a l electrical generating
capacity of the U n i t e d States i n 1970.
W h a t does this mean i n total energy terms, using today's popular
standard, the barrel of oil ? According to a 1974 Atomic Energy Commission study, assuming b u i l d i n g heat represents 20 percent of energy
use, and that a solar unit saves 50 percent of heating i n each unit, both
reasonable assumptions; i f 60 percent of buildings had solar systems,
the annual savings would be 720 m i l l i o n barrels of oil. I f all buildings
were solarized, the annual savings would be 1.2 b i l l i o n barrels. This
latter figure, of course, is an extreme, but more practical figures f r o m
other sources are also impressive.
E R D A estimates, for example, that solar heating and cooling could
have a maximum energy input i n the year 2000*equivalent to more
than 1 b i l l i o n barrels of oil. A d d i t i o n a l l y , the T R W phase 0 study
f o r X S F predicts a solar market of more than a b i l l i o n dollars per
year by 2000, assuming an incentives program. This level is nearly
twice the projected market w i t h no incentives program. Moreover,
the r a p i d development of solar is already showing the conservatism of
most estimates. A s Senator Gaylord Xelson pointed out on the Senate
floor on M a y 8, 1975, X S F now estimates that by 1985, we can reach
the level of solar use that G E and Westinghouse predicted f o r the year
2000. This, of course, is a 1'5-year improvement.
The nature of the energy crisis demands that we continue to accelerate the pace and b r i n g solar on line as a major heating alternative
sooner. D o i n g just that is uniquely w i t h i n the purview of this subcommittee, as it is not p r i m a r i l y a technological problem, but rather a
marketing problem. I m p o r t a n t aspects of i t include the f o l l o w i n g :
F i r s t , the wariness of consumers to what they perceive as an untested
technology, plus their tendency to consider only i n i t i a l costs; second,
the reluctance of financial institutions to risk money on a new technology w i t h an uncertain demand; and t h i r d , the desire of builders
to have a low-risk, high-return heating system that they can obtain as
a standardized unit at a small i n i t i a l cost.
Some solutions to these difficulties are already under development.
H U D has been w o r k i n g on its definitive performance criteria for solar,
which w i l l help provide standards of quality and u n i f o r m i t y . Those
w i l l not be ready f o r some time, though m i n i m u m property standards
which can be used to q u a l i f y solar for F H A financing w i l l be finished
sooner. These and other current activities w i l l help to make solar an
accepted alternative perceived as normal.
F u r t h e r efforts are needed, however, to make i t perceived as sound
i n economic terms as well as technological terms, and i t is here that
Government incentives w i l l inevitably play an important role. As
F E A ? s Project Independence Blueprint report stated.
The Federal program is designed i n good p a r t to reduce the first costs of solar
energy systems. However, first costs higher t h a n f o r conventional systems w i l l
continue to constrain widespread adoption, since the b u i l d i n g community is
extremely sensitive to first cost. T a x relief, loan and interest incentives and
special depreciation policies w i l l probably be required to overcome this constraint.
Such incentives w i l l work i n two areas. F i r s t , i n reference to consumer and bank resistance, solar installations w i l l benefit f r o m a Gov-
24
ernment stamp of approval that an incentive program w i l l signify.
Second, incentives w i l l help to make the economics of solar more
favorable, or favorable sooner, depending on conditions; and the table
on the center of page 4 of m y prepared statement indicates this point.
W e face the certainty that, while the economics of solar may be
m a r g i n a l now i n some areas, they w i l l not be i n a few years as fossil
f u e l prices rise and solar prices come down. Under normal circumstances, one could simply permit these market forces to operate and
watch the solar heating industry grow, albeit slowly. The additional
factor of the energy crisis, however, argues against l e t t i n g the market
take its course; and the Office of Technology Assessment s evaluation
of E R D A ' s energy program verified that there is a great potential of
savings i n the immediate-term development, not f o i l o w i n g the slow
pace of E R D A ' s solar heating and cooling plans. I quote f r o m the
Office of Technology Assessment's evaluation of E R D A ' s energy
program:
There is abundant evidence t h a t solar heating and cooling applications offer
a large potential f o r energy savings i n the immediate and near t e r m — t o 1985—
a n d beyond this to 2000, t h a n any other solar applications. Indeed, E R D A ' s
figures v e r i f y this statement; yet, solar heating and cooling is categorized a t
the t h i r d level of p r i o r i t i e s as an "under-used mid-term technology", and one
w h i c h " m a y provide a n energy 'margin' i n the event of R D & D f a i l u r e i n other
areas." These statements i n the E R D A document project a significant p o t e n t i a l
f o r solar heating and cooling, yet underemphasize the development and a c t u a l
impact of solar heating and cooling on our energy economy . . .
The p r i m e objective of the demonstration program should be to accelerate
consumer acceptance of solar energy as a heat source, so t h a t substantial f u e l
savings can be achieved at a considerable earlier date t h a n w o u l d otherwise
result. The plans set f o r t h i n E R D A - 4 8 do not appear to be oriented t o achieve
these purposes . . .
The overall goal of the program should not be the development of technology
or of hardware, but r a t h e r the development of consumer markets.
Now, to incentives. I am f a r f r o m alone i n my emphasis on the need
for a government incentives program. Almost every major analysis of
solar markets cites the same need for significant expansion of Federal
monetary incentives to encourage solar purchases. There, f o r example,
is the recommendation by the Senate Select Committee on Small
Business, which I quote on page 5 i n the center there, where the recommendation is,
Congress should enact t a x incentives and consider low-interest loan a n d loan
guarantee programs f o r the development of solar energy f o r heating and cooling
residences and other buildings, wherever possible and as quickly as possible.
A n d also, we have the testimony of George L o f , director of the Solar
Energy Applications Laboratory at Colorado State U n i v e r s i t y , before
the Ways and Means Committee i n M a r c h of this year.
Clearly, i n the short run, such incentives w i l l be necessary both to
b r i n g the costs of solar down to competitive levels—though i n many
cases they are already competitive—and to break down psychological
barriers to the use of new technology. A d d i t i o n a l l y , we should keep i n
m i n d the fact t h a t corporate producers of fossil fuels have f o r some
time enjoyed incentives through such tax breaks as the depletion allowance, depreciation allowances, and investment tax credits. The
solar homeowner, an energy producer as well as a consumer, currently
enjoys none of these advantages.
25
A t this point, the relevant question is, what k i n d of incentives w i l l
best achieve our objectives? M a j o r proposals thus f a r have been i n two
categories: T a x incentives and loan—or loan guarantee—incentives.
Each has certain advantages of its own. A tax incentive, f o r example,
has proved easier to deal w i t h legislatively and administratively. I t
would require no cumbersome bureaucracy or large administrative
costs. I n a society conscious of taxes, i t is easy to q u a n t i f y and therefore easy f o r the consumer to understand. I t s application through the
tax code gives its users a h i g h degree of
flexibility.
T a x incentives also have certain disadvantages when compared to
loan programs. F i r s t , i t is important to recognize the major distinct i o n between solar and conventional heating equipment—different init i a l costs. A conventional heating system is inexpensive to buy and
install, but solar i n i t i a l costs are relatively high. The advantage of
solar lies i n its extremely low ongoing costs compared to the constantly rising costs of conventional fuels.
L o a n incentives are able to deal w i t h this h i g h front-end cost problem by p r o v i d i n g capital at the time i t is needed—the time of i n i t i a l
purchase. I n contrast, tax incentives provide relief after the fact. One
could not claim the incentive u n t i l one's tax return was filed. O f course,
anticipation of the tax break would have some effect on one's financial
planning, and tax credits no doubt serve as an incentive to look into
solar. They do not always, however, solve the financing problem, nor
deal w i t h the l i k e l y situation of homeowners or builders w i t h cash
flow limitations who need the funds i n advance and would be receptive
to borrowing i t at favorable terms.
There are also other advantages to loan incentives f r o m the point
of view of Government policy. F i r s t , f r o m the point of view of
equitable tax policy, i t may not be desirable to promote this k i n d of
progress through the tax code. T a x r e f o r m efforts i n recent years have
been directed t o w a r d neutralizing the tax code by repealing this k i n d
of incentive, on the assumption that incentive policies are better carried out t h r o u g h direct programs.
Second, a tax incentive program is inevitably a more circuitous
approach than a loan program. I n general, i t is easier to control and
i f necessary l i m i t a direct program. I n the case of a tax credit, the
Government w o u l d not know that solar equipment had been purchased u n t i l some time after its installation. X o tax program could
contain the k i n d of advance protections against the purchase of inadequate or fraudulent equipment that a loan program could institute,
because a tax program is essentially self-policing. The fraction of
cases audited would be examined by I R S agents who are not necessarily skilled i n j u d g i n g the e l i g i b i l i t y of solar heating equipment. I n
a situation like this, precertification is clearly more rigorous than postcertification.
T h i r d , a loan program w i l l i n the long r u n cost the Federal Government less money, i f only because a tax credit is essentially a g i f t ,
while loans w i l l be repaid. Given our current budgetary situation, cost
factors must be an important part of our consideration.
L i s t i n g the advantages and disadvantages of both loan incentives
and tax incentives is really to argue that they both are appropriate
policy tools. The House has already passed, as part of H . R . 6860, a
26
25-percent solar tax credit, sponsored, I m i g h t add, by a member of
this subcommittee, M r . W y l i e . Coincidentally, the loan program i n
H . R . 3849 w o u l d complement the 25-percent tax credit perfectly by
p r o v i d i n g loans f o r 75 percent of the cost. Taken together, these two
incentives would permit an i n d i v i d u a l to finance three-fourths of his
costs w i t h a loan, and then essentially be reimbursed t h r o u g h the tax
credit f o r the one-fourth down payment he made. The two do not
necessarily have to be mutually exclusive.
M y purpose here today is to argue f o r a loan incentive approach,
as I have indicated. B u t at the same time, I t h i n k we have to support
a broad package of incentives to accelerate the pace of solar development. A tax credit w i l l be the most appropriate incentive f o r some,
a direct loan f o r others, a loan guarantee for s t i l l others. A l l these
approaches have their place.
X o w , as to H . R . 3849 and H . R . 8524; i n t u r n i n g to our specific loan
incentive proposals, let me make clear that I am not wedded t o the
precise details of the bills that are a subject of this hearing. The two
bills, however, do raise some basic questions about loan incentives
that need to be discussed. I n brief, both bills provide for a direct loan
program to homeowners and homebuilders f o r the purchase and installation of solar heating and cooling equipment. The bills impose
certain l i m i t s on the amount which can be borrowed, the interest
rate, and the amortization rate. O n l y solar equipment tested and evaluated by E R D A would be eligible f o r purchase w i t h loan funds. Some
specific observations follow.
F i r s t , as to the interest rate. Since our proposals are designed to
provide incentives effectively reducing the cost of solar equipment,
the interest applied to the loans is an important factor. I n both bills,
we have proposed a formula rate linked to the monthly average rate
on Treasury bonds. T h i s "cost of money" approach, plus the one-half
of 1 percent f o r administrative costs, is designed to provide a rate
lower than existing market rates without at the same time creating a
substantial cost to the Government. Obviously, a better incentive
would be a subsidy rate of 3 or 4 percent, but that would significantly
increase Government costs.
A s to amortization, one issue which has engendered some controversy is the amortization schedule. The bills presently provide f o r an
8-year payoff plan f o r homeowners and a 15-year payoff f o r builders
of m u l t i f a m i l y structures, w i t h the proviso i n the latter case that
the loan is due i f the entire property is sold. O u r logic i n choosing
this more r a p i d rate was that the prospect of a time i n the future
when the homeowner would have only m i n i m a l heating payments—
when the loan is paid off—would be an attractive incentive. Given the
m o b i l i t y of the population, we felt that 8 years was a suitable figure.
I t has been suggested, however, by a number of those who have examined the bills that lengthening the amortization period to 20 years,
or t y i n g i t to the homeowner's mortgage payments, would be a better
incentive. O f course, in the case of builders, the price of the equipment
would be subsumed into the purchase price of the home, thus effectively t y i n g i t to the homeowner s mortgage. I n the case of retrofits,
a longer amortization period would result i n substantially lower pay-
27
ments. T y i n g the loan to the mortgage is a neater approach, one which
lowers the monthly payments and ties the loan to established financial
channels, an important factor i f we are to encourage the private sector
to move more f u l l y into financing solar equipment. Comparisons of
the annual loan* payment w i t h the fuel savings involved also reflect
the advantages of the longer amortization period. Assuming a maximum $6,000 loan and equipment which cost $8,000, meaning a $2,000
downpayment, the larger payments required by an 8-year amortization schedule would prevent a homeowner f r o m really being ahead on
energy savings u n t i l the eighth year, at which point the annual savings
would begin to be very substantial, the loan having been paid off. A
20-year amortization, on the other hand, would permit the homeowner
to move ahead on savings as early as the f i f t h year. The annual savings
would not be as great, since the loan payments continue, but the immediate payoff is quicker.
As to solar equipment standards, the two bills contain significant
protections against the purchase of improper equipment. Money obtained f r o m the loans may be used only f o r the purchase of qualified
equipment. Hardware is certified as qualified by H U D after testing
and evaluation by E R D A . I n our view, this two-agency process is
necessary, because E R D A is uniquely qualified to p e r f o r m testing
and evaluation, while H U D w i l l really be setting the appropriate
standards and, as the originator of the loans, should retain final aut h o r i t y on what the funds can be used for.
I n conclusion, M r . Chairman, let me return to the three points I
made i n the beginning. F i r s t , i f we are to achieve meaningful energy
savings i n residential heating and cooling, then conversion to nonfossil fuel energy sources is essential. Second, the obvious choice i n
that case is solar energy. The technology exists; solar houses exist and
have been functioning f o r years. Solar is already cost-competitive
w i t h electric heat on a l i f e cycle basis i n most parts of the country,
and changing fuel prices make i t only a matter of time before i t w i l l
match oil and gas nationwide as well.
T h i r d , this process of conversion is an inevitable one, given the
increasingly favorable economics and the g r o w i n g awareness of the
limitations of fossil fuels. The energy crisis has made i t the policy of
this Government to accelerate the process of conversion to solar and
other energy alternatives as part of our conservation effort. The relevant question f o r this subcommittee is how best to assist t h a t acceler a t i o n ; specifically, what incentives would be most appropriate and
most effective ? W h i l e I believe i n and am committed to a direct loan
program, I hope the effect of my testimony and that of those who
follow me w i l l be to stimulate the members of this subcommittee to
undertake a thorough study of the incentives question, which w i l l
lead to the r a p i d development of meaningful incentives legislation.
Thank you, M r . Chairman.
[The prepared statement of Congressman Gude f o l l o w s : ]
28
STATEMENT OF THE HONORABLE GILBERT GUDE BEFORE THE HOUSING SUBCOMMITTEE, COMMITTEE
ON BANKING, CURRENCY, AND HOUSING.
November 5 , 1975
SOLAR LOAN INCENTIVES
Mr. Chairman, members o f t h e committee, i t i s a p r i v i l e g e t o be h e r e t o d a y .
I must say
I am d e l i g h t e d t h i s committee has shown i n t e r e s t i n our n a t i o n a l energy c o n s e r v a t i o n
e f f o r t s and s o l a r energy i n p a r t i c u l a r .
Energy c o n s e r v a t i o n i s e s p e c i a l l y r e l e v a n t
to
h o u s i n g concerns s i n c e some 25 p e r c e n t o f our t o t a l energy consumption c u r r e n t l y goes
i n t o h e a t i n g , c o o l i n g , and h o t w a t e r h e a t i n g .
I t i s my g o a l today t o t a k e up a number o f d i f f e r e n t q u e s t i o n s r e l a t i n g t o s o l a r h e a t i n g
and c o o l i n g i n r e s i d e n t i a l s t r u c t u r e s , and I hope t o convince committee members o f
three
things:
1) L a s t i n g and m e a n i n g f u l energy c o n s e r v a t i o n I n h e a t i n g and c o o l i n g can o n l y be
o b t a i n e d t h r o u g h l a r g e - s c a l e c o n v e r s i o n t o a l t e r n a t i v e , renewable energy s o u r c e s ,
p a r t i c u l a r l y solar
energy.
2) The t e c h n o l o g y necessary t o b u i l d e f f i c i e n t s o l a r h e a t i n g equipment i s
today and i n many p a r t s o f t h e c o u n t r y i t
i s a l r e a d y economical t o i n s t a l l ,
available
particularly
when compared t o e l e c t r i c h e a t on a l i f e - c y c l e c o s t b a s i s .
3) The n a t u r e o f t h e energy c r i s i s makes i t
of conversion t o s o l a r .
i m p e r a t i v e t h a t we a c c e l e r a t e t h e p r o c e s s
D e c l i n i n g s o l a r p r i c e s due t o mass p r o d u c t i o n and f u r t h e r
t e c h n o l o g i c a l development and i n c r e a s i n g f o s s i l f u e l p r i c e s make t h e good economics o f
solar inevitable.
wasted f u e l .
The t i m e i t
takes t o reach t h a t p o i n t on a n a t i o n a l s c a l e r e p r e s e n t s
A sound n a t i o n a l energy p o l i c y demands government i n c e n t i v e s t o speed up
t h e i n e v i t a b l e process of c o n v e r s i o n t o s o l a r t h r o u g h overcoming r e s i s t a n c e t o change.
As I w i l l e x p l a i n l a t e r , I do n o t i n t e n d t o t i e m y s e l f i r r e v o c a b l y t o t h e p a r t i c u l a r
b i l l s that led to t h i s hearing.
I d o , however, f i r m l y b e l i e v e i n t h e u n d e r l y i n g concept
o f b o t h b i l l s — a d i r e c t l o a n program f o r t h e i n s t a l l a t i o n o f s o l a r equipment f o r b o t h
b u i l d e r s and homeowners.
If
t h e t e s t i m o n y h e r e today i s c o n v i n c i n g , t h e n I hope t o see
the committee u l t i m a t e l y c o n s i d e r f o r a p p r o v a l e i t h e r H.R. 3849 o r H.R. 8524 o r b e g i n
t h e process o f d r a f t i n g i t s own v e r s i o n w h i c h w i l l a c h i e v e t h e same o b j e c t i v e s .
The
i m p o r t a n c e o f moving f o r w a r d on s o l a r i n c e n t i v e s now cannot be u n d e r e s t i m a t e d , and I
d o n ' t b e l i e v e t h e r e i s anyone f a m i l i a r w i t h t h e i n d u s t r y who would n o t agree w i t h
that
s t a t e m e n t o r go on t o p o i n t o u t how q u i c k l y t h i s process c o u l d b e g i n .
I.
The Need f o r
Action
There i s no need f o r me t o r e p e a t f o r you s t a t i s t i c s on t h e d e p t h o f t h e energy
we f a c e .
crisis
I t and i t s v a r i o u s r a m i f i c a t i o n s are b e h i n d much o f t h e l e g i s l a t i o n we have
29
considered t h i s year as we attempt t o deal w i t h b o t h our s h o r t r u n v u l n e r a b i l i t y t o an
OPEC embargo and the long r u n c e r t a i n t y t h a t our c o n v e n t i o n a l sources of energy and
indeed our whole way o f l o o k i n g a t energy and energy use must change.
Today's h e a r i n g i s p a r t i c u l a r l y r e l e v a n t t o the l a t t e r , as we face the a b s o l u t e c e r t a i n t y o f the e v e n t u a l exhaustion of f o s s i l f u e l s , p a r t i c u l a r l y o i l and n a t u r a l gas,
the two most w i d e l y used home h e a t i n g f u e l s .
E x i s t i n g n a t u r a l gas reserves are p r o -
j e c t e d t o r u n out b e f o r e the end o f t h i s century at present consumption r a t e s .
The oi-1
p i c t u r e i s m a r g i n a l l y l e s s b l e a k , though our c o n t i n u i n g dependence on f o r e i g n sources cC
supply i s an added f a c t o r o f concern.
A t h i r d a l t e r n a t i v e , h e a t i n g by e l e c t r i c i t y ,
if
not o n l y a r e l a t i v e l y i n e f f i c i e n t method, b u t the b u l k o f our e l e c t r i c g e n e r a t i o n today
i s dependent on those same f o s s i l f u e l s , w i t h l a r g e s c a l e conversion t o n u c l e a r p l a n t s
some years away, even assuming c u r r e n t problems and c o n t r o v e r s i e s about n u c l e a r can be
resolved.
To my mind the obvious answer i s s o l a r .
inexhaustible.
I t i s a v a i l a b l e now.
I t i s c l e a n and n o n - p o l l u t i n g .
or c e n t r a l t r a n s m i s s i o n s t a t i o n s .
I t s energy source i s
I t does not depend on power o r p i p e l i n e ?
I t i s r e l a t i v e l y maintenance f r e e .
We have the
equipment now t o reduce c u r r e n t f o s s i l f u e l consumption f o r h e a t i n g by a s u b s t a n t i a l
amount, and t o i n s u r e the same l e v e l of r e d u c t i o n i n f u t u r e c o n s t r u c t i o n .
The General
E l e c t r i c Phase 0 study f o r the N a t i o n a l Science Foundation, as summarized i n Solar Energy
f o r E a r t h , an assessment by the American I n s t i t u t e of Aeronautics and A s t r o n a u t i c s ,
i n d i c a t e s the magnitude i n v o l v e d :
Of the 60 m i l l i o n b u i l d i n g s t o be c o n s t r u c t e d i n the U n i t e d States i n the
next (2)5 y e a r s , approximately 40 m i l l i o n were found t o be v i a b l e , c o s t
e f f e c t i v e candidates f o r s o l a r s y s t e m s . . . . I f a l l these b u i l d i n g s were so
equipped, the y e a r l y e q u i v a l e n t e l e c t r i c power savings would be approximately
1500 b i l l i o n k i l o w a t t - h o u r s . . . b y the end of the century — e q u i v a l e n t t o the
t o t a l e l e c t r i c a l g e n e r a t i n g c a p a c i t y of the U n i t e d States i n 1970.
What does t h i s mean i n t o t a l energy terms, using t o d a y ' s popular standard — the b a r r e l
of o i l ?
According t o a 1974 Atomic Energy Commission s t u d y , assuming b u i l d i n g heat rep-
r e s e n t s 20 percent of energy use and t h a t a s o l a r u n i t saves 50 percent of h e a t i n g i n
each u n i t , b o t h reasonable assumptions, i f
60 percent o f b u i l d i n g s had s o l a r systems
the annual savings would be 720 m i l l i o n b a r r e l s of o i l .
a r i z e d " the annual savings would be 1.2 b i l l i o n b a r r e l s .
I f a l l b u i l d i n g s were " s o l T h i s l a t t e r f i g u r e of course
i s an extreme, b u t more p r a c t i c a l f i g u r e s from o t h e r sources are a l s o i m p r e s s i v e .
ERDA
e s t i m a t e s , f o r example, t h a t s o l a r h e a t i n g and c o o l i n g could have a maximum energy i n p u t
i n the year 2000 of 5.9 Quads ( 1 Quad = 1 x 10 1 5 BTUs), e q u i a v a l e n t t o more than one
b i l l i o n b a r r e l s of o i l .
A d d i t i o n a l l y , the TRW Phase 0 study f o r NSF p r e d i c t s a s o l a r
market o f more than a b i l l i o n d o l l a r s per year by 2000, assuming an i n c e n t i v e s program.
(This l e v e l i s n e a r l y t w i c e the p r o j e c t e d market w i t h no i n c e n t i v e s program.)
62-322 O - 75 - 3
Moreover,
30
t h e r a p i d development o f s o l a r i s a l r e a d y showing t h e c o n s e r v a t i s m o f most e s t i m a t e s .
As Senator Gaylord Nelson p o i n t e d o u t on t h e Senate f l o o r on May 8 , 1975,
I n 1974, t h e General E l e c t r i c C o . , a f t e r making a h a l f - m i l l i o n d o l l a r s t u d y
f i n a n c e d w i t h p u b l i c funds from t h e NSF, e s t i m a t e d t h a t o n l y 1 . 6 p e r c e n t o f a l l
n a t i o n a l energy r e q u i r e m e n t s f o r b u i l d i n g h e a t i n g and c o o l i n g c o u l d be met by
s o l a r systems by 2000. Westinghouse Corp. and TRW, I n c . , makers o f s i m i l a r
s t u d i e s on i d e n t i c a l g r a n t s , t h o u g h t i t might be 3.04 p e r c e n t and 3.56 p e r c e n t ,
respectively.
W i t h a 25 p e r c e n t t a x c r e d i t i n c e n t i v e , TRW t h o u g h t t h e s o l a r
c o n t r i b u t i o n c o u l d reach 5,77 p e r c e n t o f a l l b u i l d i n g h e a t i n g and c o o l i n g
energy by 2000.
But NSF, e a r l y t h i s y e a r , e s t i m a t e d t h a t we c o u l d be approaching 4 p e r c e n t
by 1985 — some 15 y e a r s e a r l i e r t h a n t h e y e a r Westinghouse t h o u g h t we c o u l d
t o p 3 p e r c e n t and GE t h o u g h t we would a t i l l be unde* 2 p e r c e n t .
The n a t u r e o f t h e energy c r i s i s demands t h a t we c o n t i n u e t o a c c e l e r a t e t h e pace and
b r i n g s o l a r on l i n e as a major h e a t i n g a l t e r n a t i v e s o o n e r .
w i t h i n t h e p u r v i e w o f t h i s committee as i t
b u t r a t h e r a m a r k e t i n g problem.
Doing j u s t t h a t i s
uniquely
i s not p r i m a r i l y a technological problem,
I m p o r t a n t aspects o f i t
include the f o l l o w i n g :
1) t h e w a r i n e s s o f consumers t o what t h e y p e r c e i v e as an u n t e s t e d t e c h n o l o g y p l u s
t h e i r tendency t o c o n s i d e r o n l y i n i t i a l
costs;
2) t h e r e l u c t a n c e o f f i n a n c i a l i n s t i t u t i o n s t o r i s k money on a new t e c h n o l o g y w i t h an
u n c e r t a i n demand;
3) t h e d e s i r e o f b u i l d e r s t o have a low r i s k , h i g h r e t u r n h e a t i n g system t h a t t h e y can.
o b t a i n as a s t a n d a r d i z e d u n i t a t a s m a l l i n i t i a l
cost.
Some s o l u t i o n s t o these d i f f i c u l t i e s a r e a l r e a d y under development.
The Department o f
Housing and Urban Development has been w o r k i n g on i t s d e f i n i t i v e performance
f o r s o l a r w h i c h w i l l h e l p p r o v i d e s t a n d a r d s of q u a l i t y and u n i f o r m i t y .
criteria
Those w o n ' t be
ready f o r some t i m e , though minimum p r o p e r t y s t a n d a r d s , w h i c h can be used t o q u a l i f y
s o l a r f o r FHA f i n a n c i n g , w i l l be f i n i s h e d sooner.
L o c a l governments are g r a d u a l l y becoming aware o f and removing t h e v a r i o u s h u r d l e s ,
z o n i n g and b u i l d i n g code problems f o r example, i n t h e i r
jurisdictions.
The development o f s t a n d a r d complete systems r a t h e r t h a n components i s an e n t r e p r e n e u r i a l problem t h a t has y e t t o be f u l l y r e s o l v e d .
We need t o l e a r n more about why
l a r g e companies seem t o be c o n c e n t r a t i n g on components, p r i m a r i l y c o l l e c t o r s ,
rather
t h a n t o t a l systems, and we need t o d i s c o v e r ways o f d e a l i n g w i t h t h i s p r o b l e m .
There
i s no q u e s t i o n t h a t t h i s i s a major o b s t a c l e f r o m t h e b u i l d e r ' s p o i n t of v i e w .
C u r r e n t a c t i v i t i e s w i l l h e l p t o make s o l a r an accepted a l t e r n a t i v e p e r c e i v e d as " n o r m a l . "
F u r t h e r e f f o r t s are needed, however, t o make i t p e r c e i v e d AF sound i n economic terms
as w e l l as t e c h n o l o g i c a l t e r m s , and i t
a b l e p l a y an i m p o r t a n t r o l e .
i s here t h a t government i n c e n t i v e s w i l l
As t h e F e d e r a l Energy A d m i n i s t r a t i o n ' s P r o j e c t
endence B l u e p r i n t . S o l a r Energy Task Force R e p o r t ,
stated,
inevit-
Indep-
31
The f e d e r a l p r o g r a m i s d e s i g n e d i n good p a r t t o r e d u c e t h e f i r s t c o s t s o f
s o l a r energy systems.
However, f i r s t c o s t s h i g h e r t h a n f o r c o n v e n t i o n a l s y s tems w i l l c o n t i n u e t o c o n s t r a i n w i d e s p r e a d a d o p t i o n , s i n c e t h e b u i l d i n g community i s extremely s e n s i t i v e to f i r s t cost.
Tax r e l i e f , l o a n and i n t e r e s t
i n c e n t i v e s and s p e c i a l d e p r e c i a t i o n p o l i c i e s w i l l p r o b a b l y be r e q u i r e d t o
overcome t h i s c o n s t r a i n t .
Such i n c e n t i v e s w i l l w o r k i n two a r e a s :
1) I n r e f e r e n c e t o consumer and bank r e s i s t a n c e , s o l a r i n s t a l l a t i o n s w i l l b e n e f i t froT.i
a government stamp o f a p p r o v a l t h a t an i n c e n t i v e p r o g r a m w i l l
itutions
signify.
Lending
inst-
t h a t w i l l be c a l l e d on t o f i n a n c e s o l a r , b o t h i n t h e case o f i n d i v i d u a l s
particularly
i n t h e case o f h o m e b u i l d e r s , can be e x p e c t e d t o r e s i s t
t h e y r e g a r d as a h i g h e r r i s k
technology.
I t w i l l be n e c e s s a r y f o r t h e government
i n t e r v e n e i n t h i s l e n d i n g process to reduce the
calculations.
1973 Combined H e a t i n g and C o o l i n g E v a l u a t i o n R e s u l t s A d j u s t e d t o More N e a r l y
1972 S o l a r and C o n v e n t i o n a l Energy C o s t s
(Costs p e r m i l l i o n BTUs)
L e a s t Cost S o l a r Energy
2 5 , 0 0 0 BTU/DD
Low
Albuquerque
B o s t o n ( n o t e a)
Charleston
Miami
Omaha
Phoenix
Santa M a r i a
Seattle
$2.16
3.85
3.07
2.67
3.11
2.25
3.07
4.72
favorable
The f o l l o w i n g f i g u r e s , p r e p a r e d by t h e G e n e r a l
A c c o u n t i n g O f f i c e , a r e i l l u s t r a t i v e o f t h e d i f f e r i n g economic
Location
to
risk.
2) I n c e n t i v e s w i l l h e l p t o make t h e economics o f s o l a r more f a v o r a b l e , o r
s o o n e r , d e p e n d i n g on c o n d i t i o n s .
and
f i n a n c i n g what
C o n v e n t i o n a l Energy
Elec.cooli n g w i t h gas
heating
High
Reflect
$2.93
5.48
4.41
3.85
4.55
3.21
3.81
6.31
$2.59
2.95
1.78
3.19
1.64
2.45
1.54
1.95
Elec.cooling with o i l
heating
All
Electric
$5.89
4.85
2.31
3.34
3.58
2.98
3.93
2.08
$3.29
2.92
.2.06
3.20
2.34
2.71
2.33
2.48
( a ) B l u e H i l l O b s e r v a t o r y i n t h e B o s t o n a r e a , w h i c h , a c c o r d i n g t o one s o u r c e , " r e c e i v e s
2 3 . 5 p e r c e n t more s o l a r e n e r g y t h a n B o s t o n , enough t o make a s o l a r c o l l e c t o r t h e r e p e r f o r m a b o u t 35 p e r c e n t b e t t e r . "
(We d i d n o t a t t e m p t t o d e t e r m i n e w h e t h e r s i m i l a r v a r iations existed f o r other c i t i e s . )
F i g u r e s i n t h e a t t a c h e d t a b l e a r e based on 1972 f o s s i l f u e l p r i c e s , p r i c e s w h i c h have
s i n c e r i s e n and c a n b e e x p e c t e d t o r i s e f u r t h e r .
As t h e numbers make c l e a r , we f a c e t h e
c e r t a i n t y t h a t w h i l e t h e economics o f s o l a r may be m a r g i n a l now i n some a r e a s ,
they
w o n ' t be i n a few y e a r s as f o s s i l f u e l p r i c e s r i s e and s o l a r p r i c e s come down.
Under
n o r m a l c i r c u m s t a n c e s one c o u l d s i m p l y p e r m i t t h e s e m a r k e t f o r c e s t o o p e r a t e and w a t c h
t h e s o l a r h e a t i n g i n d u s t r y grow.
argues a g a i n s t l e t t i n g
a significant
The a d d i t i o n a l f a c t o r o f t h e e n e r g y c r i s i s ,
the market take i t s
course.
however,
We have an o p p o r t u n i t y h e r e t o save
amount o f f u e l p e r m a n e n t l y and t o move t h e n a t i 3n i n t h e d i r e c t i o n
more r e s p o n s i b l e e n e r g y c o n s u m p t i o n p a t t e r n s t h r o u g h t h e encouragement o f s o l a r
at l i t t l e
l o n g r u n c o s t t o t h e government i f
tainly i f
we w a i t a number o f y e a r s ,
of
energy,
a l o a n i n c e n t i v e program i s adopted.
t h i s w J l - happen anyway, but: t h o s e
Intervening
Cer-
32
years represent l i t e r a l l y wasted energy when we should have been acting.
The Office
of Technology Assessment's evaluation of ERDA's energy program v e r i f i e d this i n i t s
criticism of the slow pace of ERDA's solar heating and cooling plans:
There i s abundant evidence that solar heating and cooling applications o f f e r
a larger potential for energy savings I n the immediate and near term (to 1985),
and beyond this to 2000, than any other solar applications. Indeed, ERDA's
figures (ERDA-48, volume I , table 6-1) v e r i f y this stateuent; y e t , solar
heating and cooling is categorized at the t h i r d level of p r i o r i t i e s as an
'under-used mid-term technology' and one which may 'provide an energy "margin"
i n the event of R,D&D f a i l u r e i n other areas.' These statements I n the ERDA
document project a significant potential for solar heating and cooling, yet
underemphasize the development and actual Impact of solar heating and cooling
on our energy economy....
The prime objective of the demonstration program should be to accelerate consumer acceptance of solar energy as a heat source so that substantial fuel savings can be achieved at a considerable e a r l i e r date than would otherwise r e s u l t .
The plans set forth i n ERDA-48 do not appear to be oriented to achieve these
purposes....
The overall goal of the program should not be the development of technology
or of hardware, but rather the development of consumer markets.
II.
Incentives
I am far from alone I n my emphasis on the need for a government Incentives progrsm. A l most every major analysis of solar markets cites the same need for significant expansion'
of federal monetary incentives to encourage solar purchases.
I n addition to the FEA
analysis mentioned e a r l i e r , other comments include:
1) Recommendation #9 from the Interim Report of the Senate Select Committee on Small
Business on The yiole of Small Business I n Solar Energy Research, Development and Demonstration (October 7, 1975).
9. Congress should enact tax incentives and consider low-interest loan and
loan guarantee programs for the development of solar energy for heating and
cooling residences and other buildings, wherever possible and as quickly as
possible.
2) From the testimony of George Lttf, Director of the Solar Energy Applications Laboratory, Colorado State University, before the Ways and Means Committee (March 11, 1975):
The high i n i t i a l investment requirement for a solar heating system is a deterrent to immediate wide public use, even though the l i f e cycle cost of the system may be lower than the conventional a l t e r n a t i v e . This c a p i t a l cost requirement i s a problem for the builder, the purchaser, and a l l others I n the chain
of interests i n the home building and commercial building industry. A great
stimulus to the use of solar energy for heating of buildings would be the a v a i l a b i l i t y of capital for solar heating systems at moderate interest rates. Such
an Incentive would cause an immediate increase i n the demand for these systems.
With a minimal cash outlay, and moderate monthly payments, the home owner could
thus afford this great new energy source. An incentive of this type has just
been proposed by Senator Hart i n his b i l l S.875. At no net cost to the government, the a v a i l a b i l i t y of "federal loans should increase the rate of application
from perhaps hundreds per year to the hundreds of thousands per year as soon as
such funds are available.
(The b i l l referred to above i s i d e n t i c a l to H.R. 3849, which i s under consideration today.)
Clearly i n the short run such incentives w i l l be necessary both to bring the costs of
solar down to competitive levels — though i n many cases they are already competitive —
and to break down psychological f a r r i e r s to the use of new technology.
Additionally,
we should keep i n mind the fact that corporate producers of f o s s i l fuels have for some
time enjoyed Incentives through such tax breaks as the depletion allowance, depreciation
33
a l l o w a n c e s , and i n v e s t m e n t t a x c r e d i t s .
The s o l a r homeowner, an energy p r o d u c e r
as w e l l as a consumer, c u r r e n t l y e n j o y s none o f t h e s e advantages.
A t t h i s p o i n t , t h e r e l e v a n t q u e s t i o n i s what k i n d o f i n c e n t i v e w i l l b e s t a c h i e v e our
objectives?
M a j e r p r o p o s a l s thus f a r have been i n two c a t e g o r i e s :
and l o a n ( o r l o a n g u a r a n t e e ) i n c e n t i v e s .
tax
incentives
Each has c e r t a i n advantages o f i t s own.
A
t a x i n c e n t i v e , f o r example, has proved e a s i e r t o d e a l w i t h l e g i s l a t i v e l y and a d m i n i s tratively.
I t would r e q u i r e no cumbersome b u r e a u c r a c y o r l a r g e a d m i n i s t r a t i v e
I n a s o c i e t y conscious of t a x e s , i t
consumer t o u n d e r s t a n d .
degree o f
i s easy t o q u a n t i f y and t h e r e f o r e easy f o r
costs.
the
I t s a p p l i c a t i o n t h r o u g h t h e t a x code g i v e s i t s u s e r s a h i g h
flexibility.
Tax i n c e n t i v e s a l s o have c e r t a i n d i s a d v a n t a g e s when compared t o l o a n programs.
it
First,
i s i m p o r t a n t t o r e c o g n i z e t h e major d i s t i n c t i o n between s o l a r and c o n v e n t i o n a l h e a t i n g
equipment, d i f f e r e n t i n i t i a l c o s t s .
A c o n v e n t i o n a l h e a t i n g system i s i n e x p e n s i v e
buy and i n s t a l l , b u t s o l a r i n i t i a l c o s t s a r e r e l a t i v e l y h i g h .
The advantage o f
to
solar
l i e s i n i t s e x t r e m e l y low o n g o i n g c o s t s compared t o t h e c o n s t a n t l y r i s i n g c o s t s o f
conventional
fuels.
Loan i n c e n t i v e s a r e a b l e t o d e a l w i t h t h i s h i g h f r o n t end c o e t problem by p r o v i d i n g
c a p i t a l at the time i t
important i f
i s needed — t h e t i m e o f i n i t i a l p u r c h a s e .
This i s
particularly
s o l a r i s t o have an a p p e a l t o a l l ecaaortic s t r a t a . O b v i o u s l y someone w i t h
an e x t r a $6000 i n h i s s a v i n g s account would be r e l a t i v e l y l e s s concerned about
I n c e n t i v e funds i n advance, b u t r e a l i s t i c a l l y
c a t e g o r y , and even t h o s e w i t h h i g h e r incomes a r e l i k e l y t o f i n d i t
e x p e n d i t u r e o f t h i s magnitude a l l a t once.
obtaining
t h e r e a r e n o t many o f us i n t h i s happy
difficult
t o make an
C l e a r l y any e f f o r t t o encourage s o l a r among
homeowners o f a l l income l e v e l s demands t h e s u p p l y i n g o f t h e i n c e n t i v e when i t
is
needed — i n t h e b e g i n n i n g .
In contrast,
tax incentives provide r e l i e f
i n c e n t i v e u n t i l o n e ' s t a x r e t u r n was f i l e d .
a f t e r the f a c t .
One c o u l d n o t c l a i m t h e
Of c o u r s e , a n t i c i p a t i o n o f t h e t « c b r e a k
w o u l d have some e f f e c t on o n e ' s f i n a n c i a l p l a n n i n g , and t a x c r e d i t s no doubt s e r v e as
an i n c e n t i v e t o l o o k i n t o s o l a r .
They do n o t a l w a y s , however, s o l v e t h e
financing
p r o b l e m , nor d e a l w i t h t h e l i k e l y s i t u a t i o n o f homeowners or b u i l d e r s w i t h cash f l o w
l i m i t a t i o n s who need t h e funds i n advance and would be r e c e p t i v e t o b o r r o w i n g i t
favorable
at
terms.
There a r e a l t o o t h e r advantages t o l o a n i n c e n t i v e s f r o m ch* p o i n t o f v i e w of government
policy.
1) From t h e p o i n t o f v i e w o f e q u i t a b l e t a x p o l i c y , i t may n o t be d e s i r a b l e t o proco<:e
34
t h i s k i n d o f p r o g r e s s t h r o u g h t h e t a x code.
been d i r e c t e d t o w a r d " n e u t r a l i z i n g "
Tax r e f o r m e f f o r t s
i n r e c e n t y e a r s have
t h e t a x code by r e p e a l i n g t h i s k i n d o f
incentive,
on t h e a s s u m p t i o n t h a t i n c e n t i v e p o l i c i e s a r e b e t t e r c a r r i e d o u t t h r o u g h d i r e c t
programs.
2) A t a x i n c e n t i v e p r o g r a m i s i n e v i t a b l y a more c i r c u i t o u s a p p r o a c h t h a n a l o a n p r o gram.
In general, i t
i s e a s i e r t o c o n t r o l and i f
I n t h e case o f a t a x c r e d i t ,
necessary l i m i t
a direct
program.
t h e government w o u l d n o t know t h a t s o l a r e q u i p m e n t h a d been
p u r c h a s e d u n t i l some t i m e a f t e r i t s
installation.
No t a x p r o g r a m c o u l d c o n t a i n
k i n d o f advance p r o t e c t i o n s a g a i n s t t h e p u r c h a s e o f i n a d e q u a t e o r f r a u d u l e n t
t h a t a l o a n program could i n s t i t u t e ,
because a t a x p r o g r a m i s e s s e n t i a l l y
The f r a c t i o n o f cases a u d i t e d w o u l d be examined by IRS a g e n t s who a r e n o t
s k i l l e d i n judging the e l i g i b i l i t y
this,
pre-certification
of s o l a r h e a t i n g equipment.
i s c l e a r l y more r i g o r o u s t h a n
the
equipment
self-policing.
necessarily
In a situation
like
post-certification.
3) T h i r d , a l o a n p r o g r a m w i l l i n t h e l o n g r u n c o s t t h e f e d e r a l government l e s s money
if
o n l y because a t a x c r e d i t i s e s s e n t i a l l y a g i f t w h i l e l o a n s w i l l be r e p a i d .
our c u r r e n t budgetary s i t u a t i o n ,
eration.
c o s t f a c t o r s must be an i m p o r t a n t p a r t o f o u r
The c o s t o f a l o a n p r o g r a m i s v a r i a b l e d e p e n d i n g upon t h e amounts
authorized.
As I w i l l d i s c u s s s h o r t l y , my own b i l l s
a u t h o r i z e an i n t e r e s t
consid-
involved,
o f c o u r s e , b u t a l s o d e p e n d i n g on t h e i n t e r e s t r a t e c h a r g e d and t h e repayment
w o u l d n o t p r o v i d e an i n t e r e s t
Given
periods
rate
that
subsidy.
L i s t i n g t h e a d v a n t a g e s and d i s a d v a n t a g e s o f b o t h l o a n i n c e n t i v e s and t a x i n c e n t i v e s
r e a l l y t o argue t h a t they b o t h are a p p r o p r i a t e p o l i c y
tools.
p a s s e d , as p a r t o f H . R . 6 8 6 0 , a 25 p e r c e n t s o l a r t a x c r e d i t ,
a member o f t h i s s u b c o m m i t t e e , M r . W y l i e .
Coincidentally,
The House has
s p o n s o r e d , I m i g h t a d d , by
the l o a n program i n
w o u l d complement t h e 25 p e r c e n t t a x c r e d i t p r e f e c t l y by p r o v i d i n g l o a n s f o r
of
the cost.
Taken t o g e t h e r ,
H.R.3849
75 p e r c e n t
t h e s e two i n c e n t i v e s w o u l d p e r m i t an i n d i v i d u a l t o
finance
t h r e e - f o u r t h s o f h i s c o s t s w i t h a l o a n and t h e n e s s e n t i a l l y be r e i m b u r s e d t h r o u g h
tax credit
the
f o r t h e o n e - f o u r t h down payment he made.
My p u r p o s e h e r e t o d a y i s
b u t a t t h e same t i m e I
t o a r g u e f o r a l o a n i n c e n t i v e a p p r o a c h , as I have
t i v e f o r some, a d i r e c t
place.
III.
8524.
I n t u r n i n g t o our s p e c i f i c
loan incentive proposals,
wedded t o t h e p r e c i s e d e t a i l s o f t h e b i l l s
h o w e v e r , do r a i s e some
to
A t a x c r e d i t w i l l be t h e most a p p r o p r i a t e
loan f o r o t h e r s , a loan guarantee f o r s t i l l o t h e r s .
approaches have t h e i r
H.R. 3 8 4 9 , H.R.
indicated,
t h i n k we have t o s u p p o r t a b r o a d package o f i n c e n t i v e s
e r a t e t h e pace o f s o l a r d e v e l o p m e n t .
bills,
is
already
All
accelincenthese
l e t me make c l e a r t h a t I am n o t
t h a t are a subject of t h i s hearing.
The two
b a s i c q u e s t i o n s a b o u t l o a n i n c e n t i v e s t h a t need t o be
35
discussed.
I n b r i e f , b o t h b i l l s p r o v i d e f o r a d i r e c t l o a n program t o homeowners
and home b u i l d e r s f o r t h e purchase and i n s t a l l a t i o n o f s o l a r h e a t i n g and c o o l i n g
equipment.
The b i l l s impose c e r t a i n l i m i t s on the amount which can be borrowed, t h e
i n t e r e s t r a t e , and t h e a m o r t i z a t i o n r a t e .
Only s o l a r equipment t e s t e d and e v a l u a t e d
by ERDA would be e l i g i b l e f o r purchase w i t h l o a n f u n d s .
Some s p e c i f i c
observations
follow.
1) I n t e r e s t Rate.
Since our p r o p o s a l s are designed t o p r o v i d e i n c e n t i v e s
effectively
r e d u c i n g t h e c o s t o f s o l a r equipment, t h e i n t e r e s t a p p l i e d t o t h e loans i s an i m p o r t a n t
factor.
I n b o t h b i l l s we have proposed a f o r m u l a r a t e l i n k e d t o t h e m o n t h l y average
r a t e on t r e a s u r y bonds.
T h i s " c o s t o f money" approach, p l u s t h e o n e - h a l f o f one
p e r c e n t f o r a d m i n i s t r a t i v e c o s t s i s designed t o p r o v i d e a r a t e lower t h a n e x i s t i n g
market r a t e s w i t h o u t a t t h e same time c r e a t i n g a s u b s t a n t i a l c o s t t o t h e government
O b v i o u s l y a b e t t e r i n c e n t i v e would be a subsidy r a t e o f t h r e e o r f o u r p e r c e n t , b u t
t h a t would s i g n i f i c a n t l y i n c r e a s e government c o s t s .
Furthermore, I am n o t c o m p l e t e l y sure t h a t a subsidy r a t e would be n e c e s s a r y , though
i t c l e a r l y would be d e s i r a b l e , o t h e r f a c t o r s n o t i n t e r v e n i n g .
I suspect t h a t one o f
the major o b s t a c l e s t o the expansion of s o l a r a t t h i s t i m e i s the l a c k o f
available
f i n a n c i n g a t any normal r a t e , due t o the r e l u c t a n c e o f l e n d i n g i n s t i t u t i o n s t o p a r t i c i p a t e i n the f i n a n c i n g o f what i s p e r c e i v e d as a h i g h e r r i s k system.
Thus t h e b i g g e s t
a t t r a c t i o n of a l o a n program would be the sheer a v a i l a b i l i t y o f funds r a t h e r than t h e
existence of a subsidy r a t e .
2) A m o r t i z a t i o n .
schedule.
One i s s u e which has engendered some c o n t r o v e r s y i s t h e a m o r t i z a t i o n
The b i l l s p r e s e n t l y p r o v i d e f o r an e i g h t y e a r p a y o f f p l a n f o r homeowners and
a f i f t e e n year p a y o f f f o r b u i l d e r s of m u l t i - f a m i l y s t r u c t u r e s , w i t h t h e p r o v i s o i n the
l a t t e r case t h a t the l o a n i s due i f
the e n t i r e p r o p e r t y i s s o l d .
Our l o g i c i n choosing
t h i s more r a p i d r a t e was t h a t t h e p r o s p e c t o f a t i m e i n the f u t u r e when t h e homeowner
would have o n l y m i n i m a l h e a t i n g payments — when the l o a n i s p a i d o f f — would be an
attractive incentive.
was a s u i t a b l e
Given t h e m o b i l i t y o f t h e p o p u l a t i o n , we f e l t
t h a t e i g h t years
figure.
I t h a s , however, been suggested by a number o f those who have examined t h e b i l l s
l e n g t h e n i n g t h e a m o r t i z a t i o n p e r i o d t o 20 y e a r s o r t y i n g i t
payments would be a b e t t e r i n c e n t i v e .
(Of c o u r s e , i n t h e case o f b u i l d e r s t h e p r i c e of
the equipment would be subsumed i n t o t h e purchase p r i c e o f t h e home, thus
tying i t
t o t h e homeowner's m o r t g a g e . )
I n the case o f r e t r o f i t s ,
p e r i o d would r e s u l t i n s u b s t a n t i a l l y lower payments.
that
t o t h e homeowner's mortgage
a longer
effectively
amortization
T y i n g the l o a n t o t h e mortgage
ii
36
a "neater" approach, one Which lowers the monthly payments and t i e s the loan to
established financial channels, an Important factor i f we are to encourage the private
sector to move more f u l l y into financing solar equipment.
Comparisons of the annual
loan payment with the f u e l savings Involved also r e f l e c t the advantages of the longer
amortization period.
Assuming a maximum $6000 loan and equipment which cost $8000
(meaning a $2000 down payment), the larger payments required by an eight year amort i z a t i o n schedule would prevent a homeowner from r e a l l y being ahead on energy savings
u n t i l the eighth year, at which point the annual savings would begin to be very subs t a n t i a l , the loan having been paid o f f .
A twenty year amortization, on the other
hand, would permit the homeowner to move ahead on savings as early as the f i f t h year.
The annual savings would not be as great, since the loan payments continue, but the
immediate payoff i s quicker.
Recognizing these advantages, I am prepared to support language changing the b i l l s to
provide for a longer amortization schedule.
The most preferable approach I s clearly
the longer rate Integrated with the existing mortgage.
Integration of a federal loan
into an existing mortgage or a builder's construction loan, of course, presents complex
administrative problems that are not dealt with I n these b i l l s .
Suffice i t to say that
is the ideal approach, though not necessarily the most feasible.
3) Solar Equipment Standards.
purchase of improper equipment.
The two b i l l s contain significant protections against the
Money obtained from the loans may be used only for the
purchase of "qualified" equipment.
testing and evaluation by ERDA.
Hardware i s c e r t i f i e d as qualified by HUD a f t e r
I n our view this two-agency process I s necessary because
ERDA is uniquely qualified to perform testing and evaluation, while HUD w i l l r e a l l y be
setting the appropriate standards and, as the originator of the loans, should r e t a i n
f i n a l authority on what the funds can be used f o r .
Though peffcaps somewhat outside this committee's purview, we must recognize that maintenance of standards i s a v i t a l part of the b i l l s , given the substantial amounts of money
involved.
The b i l l s specify that an acceptable system for loan purposes Is one which meets
40 percent of heating needs and/or substantially a l l of domestic hot water needs.
Some
systems o* the market eannet meet that standard, or cannot meet i t i n a l l parts of the
country.
Our purpose i n setting t i g h t standards was to protect against phony claims
and equipment, but also to move the program out of the "new toy" category and insure that
any equipment purchased w i l l make a substantial contribution to energy conservation.
IV. Conclusion
Let me conclude by returning to the three points I made I n the beginning.
F i r s t , i f we
37
are to achieve meaningful energy savings I n residential heating and cooling, then
conversion to non-fossil f u e l energy sources I s essential.
choice I n that case I s solar energy.
have baan functioning for years.
Second, the obvious
The technology exists; solar houses exist and
Solar I s already cost competitive with e l e c t r i c
heat on a l i f e cycle basis i n most parts of the country, and changing f u e l prices
make i t only a matter of time before I t w i l l match o i l and gas nationwide as w e l l .
Third, this process of conversion i s an inevitable one, given the increasingly favorable economics and the growing awareness of the limitations of f o s s i l fuels.
The
energy c r i s i s has made I t the policy of this government to accelerate the process of
convention to solar and other energy alternatives as part of our conservation
effprt*
The relevant question for this committee i s how best to assist that accel-
eration, s p e c i f i c a l l y , what incentives would be most appropriate and most effecltve?
While X believe i n and am committed to a direct loan program, I hope the e f f e c t of
my testimony and that of those who follow me w i l l be to stimulate the meabers of
this comM-ttee to undertake a thorough study of the incentives question, which w i l l
lead tQ the rapid development of meaningful incentives l e g i s l a t i o n .
38
M r . M O O R H E A D . T h a n k you, M r . Gude, f o r an excellent statement,
very thorough and well thought out. L e t me say I agree w i t h you t h a t
conversion is inevitable. I agree w i t h you t h a t we should do a l l we can
to accelerate it. A n d I also agree w i t h you that the question is how
to do that.
M r . St Germain, do you have any questions ?
M r . S T G E R M A I N . M r . Chairman, I w o u l d just compliment our
colleague on a very, very detailed statement. Obviously a great deal of
w o r k and time has been p u t into this, and f r a n k l y , to the extent that
I would not presume to ask any questions at this point.
M r . G U D E . T h a n k you.
M r . MOORHEAD. M r . Wylie ?
M r . W Y L I E . T h a n k you, M r . Chairman.
I , too, want to compliment you, M r . Gude, f o r the excellent statement you have given and the considerable amount of w o r k t h a t you
have obviously p u t into this bill. A n d I do agree that solar heating
and cooling incentives are necessary to our overall energy structure.
There is no question about that, and we have discussed m y tax credit
proposal previously. T h a n k you f o r your support.
There was a fellow who was Secretary of Defense one time who
established a policy of fly before you buy. A n d that is the whole theory
behind m y so-called tax credit proposal. I n other words, a u n i t should
be i n place and an ascertainment made as t o whether i t does w o r k ,
whether i t w i l l convert solar energy i n t o heating and cooling systems.
I f o r one t h i n k this is a better approach.
Do you not t h i n k there is something to recommend that approach ?
T h a t the end product ought to be examined to see i f i t does work, since
we are really i n a premature state of the art as I see i t .
M r . G U D E . I t h i n k either w i t h a tax incentive or loan program, we
are i n a position to c e r t i f y the good units and to reject bad units t h a t
w i l l come onto the market. There is no doubt about i t , that the solar
heating and cooling industry is going to attract a few
fly-by-nights,
along w i t h the reliable manufacturers and researchers. B u t I t h i n k
i t can really w o r k w i t h both the tax incentive and a loan program.
A n d I recall t h a t I supported your measure. I believe this is one
way. W i t h some builders and some people, this is an option. B u t I
t h i n k there is a need f o r a loan program, too. Whether you w o u l d
want to make them exclusive of each other, so that a person could not
take advantage of both, that would be a good question.
M r . W Y L I E . Y O U d i d support m y tax credit measure, and I appreciate that. I t is l i k e l y that I w i l l support your b i l l . B u t I want to get into
a couple of other questions.
F i r s t , I t h i n k m y proposal recommends f r o m the standpoint of
simplicity and the fact that i t does have a direct impact on the affected
i n d i v i d u a l or group. H a v i n g said that, I go to your language on page 2
of your b i l l , which says that "the loan w i l l be made available to
individuals and families owning and occupying one- to f o u r - f a m i l y
residential structures and to persons engaged i n b u i l d i n g residential
structures of any k i n d . "
Now, does t h a t refer to the builder generally ?
M r . G U D E . Yes. T h a t refers to the builder generally. A n d I t h i n k
the economics of solar heating show that the greatest benefit and
value w i l l come i n m u l t i f a m i l y unite.
39
M r . WYLIE. W e l l , let us assume f o r a minute that a builder obtains
a construction loan f o r the construction of, say, 200 units. H e decides
that 50 of them w i l l be equipped w i t h solar energy equipment. Now,
does he have to have two determinations made as to whether the houses
equipped w i t h solar energy equipment w i l l q u a l i f y as f a r as a loan
i n your b i l l is concerned? H o w is the determination t o be made as
to the payoff amount on the whole project ?
M r . GUDE. W e l l , the way this legislation is presently constructed, i f
he sells the units after construction, then he would have to pay the
loan off. A n d this would be separate and apart f r o m the other financi n g of the project. I t would be a separate determination of his eligib i l i t y for a loan f o r the solar heating aspect of the units.
M r . WYLIE. T h a t is the point, i t would be a separate determination ?
M r . GUDE. Y e s .
M r . WYLIE. I n other words, what I am saying is the contractor goes
into a bank or to a mortgage lender and makes application f o r a construction loan on a project of, say, 200 units. Now, he wants to equip
50 of those w i t h solar energy units. I s a separate loan determination
to be made by tfye prospective lender? Does the builder have to go to
H U D and get that approval first ?
A n d then what about the payoff ?
M r . GUDE. Under my b i l l , he would have to go to H U D f o r one of
these solar loans. They would have to certify as to the technology.
M r . WYLIE. I f a builder pays off his loan at the time he sells a house,
what good is this loan incentive to him? I t would be only f o r a short
period of time.
M r . GUDE. W e l l , this incentive, I t h i n k , is going to give the technology the stamp of approval. The buyers of the units would be
attracted by the fact that their u t i l i t y costs over the years are going to
be sharply reduced. A n d again, i t gets to the matter of a marketing
problem. I feel that such a program makes the marketing of his units
a much more attractive job.
M r . WYLIE. B u t the builder would pay back a solar energy loan to
H U D , wouldn't he? Y o u r b i l l calls f o r a direct loan program, as I
understand i t , and the loan would come f r o m H U D f o r the solar
energy houses.
M r . GUDE. T h a t is r i g h t .
M r . WYLIE. W o u l d he pay H U D back when he sells a house, when
a house is completed or when the total subdivision is completed ?
M r . GUDE. A t the time of the sale of the unit, he would have to
pay H U D back. A t that time he would have to pay off that part of
the loan or loans which went to the solar heating unit.
M r . WYLIE. I t h i n k this is something we w i l l need to consider as
to the mechanics of it. A r e there to be two separate loans; a separate
loan arrangement w i t h H U D f o r a loan on a solar energy house and
a separate loan arrangement f o r construction of the whole subdivision? I have just been given a note t h a t my time has expired.
T h a n k you.
M r . S T G E R M A I N [presiding]. Thank you, M r . W y l i e .
Mrs. Boggs?
Mrs. BOGGS. T h a n k you, M r . Gude, for your excellent testimony
and I was so pleased to see that you feel t h a t we do need to develop
40
the consumer market. T h a t is what needs to be done at this point.
I also appreciate your detailed account of both approaches, the loan
approach and the tax incentive approach.
I am t o l d that the average turnover of a house, back i n the 1960's,
was about 8 years, and that now the new statistics reveal t h a t the
average turnover is 5y 2 years nationwide. I would deduce, then, t h a t
the loan approach on the mortage credit m i g h t be the better course
f o r the people who do move often, even though they would not enjoy
the advantages of a lower rate, p a r t i c u l a r l y f o r their energy bills.
I do thank you very much and this should be very valuable i n f o r mation to a l l of us.
M r . GUDE. T h a n k y o u .
M r . ST GERMAIN. M r s . S p e l l m a n ?
Mrs. SPELLMAN. I too, M r . Gude, want to thank you f o r what is
excellent testimony. I am i n f u l l agreement w i t h what you say. I
t h i n k that this Nation has got to find some alternatives to fossil fuels
and t h a t we need to be moving very fast. I know i n our own State,
the F E A has just recently announced that some of our industries
may have to shut down this winter because of a shortage of n a t u r a l
gas.
A n d I am sure M a r y l a n d is not the only State that is going to be
affected that way. So we really have to have to seek and seek very
quickly alternative methods of p r o v i d i n g energy.
I n Prince Georges County, I guess the greatest pioneer i n the field
of research on solar energy, D r . H a r r y Thomason, has been heating
his homes w i t h solar energy f o r a long, long time. I can remember
r i d i n g down the road and people would t h i n k that his house was
sort of an oddity at the time. Now as I recall, he has heated his home
f o r about 10 years p r i m a r i l y w i t h solar energy f o r a f u l l winter
f o r $4.65. T h a t was f o r 31 gallons of o i l i n those days.
W e l l , of course, that o i l would cost more today. B u t t h a t is certainly
quite different f r o m the costs of a l l electric homes that are being heated.
M y daughter i n Columbia has an all-electric home and the cost has
doubled i n the few years she has been there to the point where t h e i r
electric b i l l equals their mortgage payment, which was too large i n
the first place.
So I t h i n k what you are proposing is something that we really
ought t o be moving on and moving on yery quickly. I just have a
couple of questions. I agree w i t h you t h a t we ought to have various
kinds of incentives. HOWt w o u l d you view the feasibility of the loan
guarantee versus the loan approach ?
M r . GUDE. The loan guarantee wTould leave the question of availa b i l i t y of money up to the banker, whereas the direct loan approach, I
t h i n k , puts the government more squarely behind the program and is
going to guarantee more money flowing into this program, i n t h a t a
builder who thinks this is attractive and something t h a t is very salable
and interesting t o the home buyer, can have the cash flow. H e can get
this money available quickly at the time he is building.
A n d then at the sale of his house—why, he does have t o repay
H U D — b u t i t gives h i m l i q u i d i t y and a b i i i t y to move and take advantage of developing a market. So I t h i n k the direct loan is good and
I m i g h t add that, of course, this legislation does not say t h a t this
41
direct loan program w i l l go on forever. I t terminates i n 10 years,
and so we are not u n d e r w r i t i n g forever a direct loan program.
B u t we do have a crisis. Just because the O P E C nations have been
quiet lately does not mean that i n a week or so we are not going to be
r i g h t back into the soup. A n d I t h i n k we have really got to p u t i t on
the line. T h a t is w h y I t h i n k the direct loan program is best. Cert a i n l y the guaranteed loan program is rueful also, but not as good i n
my opinion.
Mrs. S P E L L M A N . Y O U are r i g h t . Unless we can find ways of t a k i n g
care of our own energy needs, we are not going t o be able to control
our own destinies and this is, I t h i n k , one of the most important
things that this Nation can be and should be w o r k i n g on.
I am personally f a m i l i a r w i t h those homes there i n Prince Georges
County. Has the a r t of using solar energy gone beyond the experimental stage i n your estimation?
M r . GUDE. I n some sections of the county i t is more advanced than
others. There are several well engineered homes i n my own district.
Everett Jones, one of our former p a r k and planning commissioners
has b u i l t one i n Damascus. There is a very good example of a solar
heated home i n M t . A i r y . A n d , of course, you mentioned H a r r y
Thomason's excellent installation i n your own district.
Mrs. SPELLMAN. I thank you very much. This is something I hope
we w i l l be moving on quickly. A n d you have done a great job of t h i n k i n g i t through.
M r . GUDE. T h a n k y o u .
M r . M O O R H E A D [presiding]. M r . Rousselot?
M r . ROUSSELOT. T h a n k you, M r . Chairman.
W e appreciate very much your coming here and t a k i n g the time
and also p u t t i n g as much thought as you obviously have into your
testimony, which I t h i n k w i l l be very, very h e l p f u l t o us as we consider ways t h a t this subcommittee m i g h t take some appropriate action to accelerate the use of solar energy i n either i n d i v i d u a l or multif a m i l y homes.
A n d so we are very, very grateful f o r your t a k i n g the time to give
i t the obviously thorough study t h a t you did.
Now, as a practical matter, most people are used to b u y i n g homes
and paying off through a mortgage equipment, heating and cooling
equipment t h a t m i g h t be included. A n d F H A is i n the process of developing a way t h a t such equipment can be put i n their mortgage. W e
are informed that the F H A m i n i m u m standards f o r the use of solar
energy w i l l not be completed u n t i l M a y , and I am sorry to hear that
i t is t a k i n g that long. B u t i t is progressing, and presently you can get
solar energy included i n an F H A mortgage w i t h F H A central
approval.
So, this is now a reality. Now, is i t not true, because most American
people who buy either new or existing homes are used to including
this type of equipment—heating and cooling—in their mortgage, and
maybe this is the way to do i t , rather than a direct loan program which
would be a second loan that they would really have to pay off.
W h y not include i t i n the mortgage ?
M r . GUDE. W e l l , the direct loan program, as I see i t , would be an
incentive to the builder. A s I said, i t gives h i m the l i q u i d i t y to add
42
this to the one or more units t h a t he is building. I t gives h i m the cash
to do this and then i n the sale of the house, the homeowner i n effect
folds this into his mortgage.
M r . ROUSSELOT. W e l l , we have to be concerned about not just the
incentive to the builder—and I realize t h a t has to be present, although
those incentives are beginning to appear because manufacturers of
systems are beginning t o appear generated—that we also have to be
concerned on this subcommittee w i t h the ultimate consumer, the buyer
of either the i n d i v i d u a l home or the person who wants to include i t
i n an existing home, or the person who may become an owner or a
tenant i n m u l t i f a m i l y housing.
Now I am sure you are aware that there are projects now underw a y — i n C a l i f o r n i a we have one i n a j o i n t venture w i t h the Jet Propulsion Laboratory i n Orange County, which also involves the Calif o r n i a I n s t i t u t e of Technology, the National Science Foundation,
F E A , and E R D A . A solar heating system has been installed at T i m bers Apartments located i n E l Toro, California. I t has been i n operation f o r 9 months and is operated i n conjunction w i t h Southern
C a l i f o r n i a Gas Company. A n d they have proven t h a t they can save
up to 40 percent by the use of the solar system t h a t is p a r t of the complex. Another project i n v o l v i n g the same participants i n a new, rather
t h a n i n an existing apartment project is under construction i n U p l a n d ,
California, and is scheduled to be completed next year.
Now m y question is would we not really be better off t o t r y to find
the ways to f o l d i t in, as you say, to the mortgage system because t h a t
is the way consumers i n this country are used t o b u y i n g housing ?
M r . GUDE. W e l l , as I said, I t h i n k this legislation specifically approaches the problem of the builder i n being able to get the necessary
funds and the l i q u i d i t y to move ahead. A n d then i t seems t o me i t is
folded into the mortgage at the time of the sale.
M r . ROUSSELOT. B u t i f the builder knows t h a t he can pass on the cost
to the consumer through the mortgage, and assuming he does, I t h i n k
he may only need tax incentives. The t h i n g t h a t really basically moves
a builder is the tax incentive to b u i l d i t and to include i t i n the f a c i l i t y .
A n d would we not really be better to concentrate on the tax incentive
f o r the builder and the lending capacity t h r o u g h the mortgage f o r the
equipment, just as we do presently w i t h systems f o r air-conditioning
and heating?
W o u l d t h a t not be the best way t o go ?
M r . GUDE. F o r some people, yes. I t h i n k f o r some builders this w o u l d
be an attractive incentive. I t h i n k the tax incentive is h e l p f u l to some,
but not t o all.
M r . ROUSSELOT. Y O U and I know builders well. W e have them i n our
own areas.
M r . GUDE. There are all kinds.
M r . ROUSSELOT. Yes; there are. A n d , of course, t h a t is one reason
F H A makes an attempt to have standards to weed out those who w o u l d
misuse the system. B u t is i t not really, i f the tax incentive is present t o
the builder, is t h a t not really going to motivate h i m more to utilize
existing or developing systems of solar energy ?
M r . GUDE. Yes; i t is going to help. A n d that is w h y I supported i t .
B u t I t h i n k i t is a question of degree. I t h i n k there are some t h a t would
43
be very attracted to this program. A n d , of course, i n addition the
original homeowner can get a loan through this program to retrofit
his house, which I am sure is something some w i l l do.
M r . ROUSSELOT. Y O U are really saying you t h i n k we need the combination of a direct loan program to the builder as well as the tax
incentive.
M r . GUDE. Yes. Or, as I said, I t h i n k i f not the direct l o a n — I know
that some people have problems w i t h a direct loan program—a guaranteed loan program.
M r . ROUSSELOT. Well, especially on the basis t h a t the shape of our
U.S. Treasury is i n these days, where that money is going to come
from, even—and I appreciate your legislation providing that i t shall
be at least, I t h i n k , one-half percent above the going market rate, where
today Treasury bills are anywhere f r o m about 7.4 percent. So, i t would
be up around 8 percent. I appreciate your building i n that
consideration.
M r . GUDE. A n d also as I said, you stimulate something very important, building more consumer attractiveness into this program. B u t at
the end of 10 years the program would be terminated.
M r . ROUSSELOT. M r . Chairman, I ask unanimous consent that my
colleague's comment on some of the things that were i n the Washington Post article on Sunday, November 2,1975, relating to the solar
system h i t by a storm, relating to the concern about the people i n the
field selling systems that are clearly misrepresented, because I t h i n k
that that is part of the problem we face as to how we can prevent
utilization of any Government guarantees or moneys for systems
which may not be effective.
M r . MOORHEAD. Y O U want h i m to comment f o r the record, after
having opportunity to read this?
M r . G U D E . I would be happy to. That is a problem, regardless of
whether you use tax incentive, guaranteed loan, or direct loan. That
is a problem and our people really have to be on top of it, so we do
not have too many people that are bilked i n the course of this.
[The article referred to by Congressman Gude entitled "Solar System H i t by Storm" f r o m the Washington Post, dated November 2,
1975 and M r . Gude's comments f o l l o w : ]
[From the Washington Post, Nov. 2, 1975]
SOLAR S Y S T E M
HIT
BY
STORM
C R I T I C S C H A R G E I S C OVERSTATES P E R F O R M A N C E
CLAIMS
( B y N a n c y L . Ross)
I n t o every solar h e a t i n g salesman's l i f e a l i t t l e r a i n m u s t f a l l , or so i t is
said. O f late, a f e w u m b r e l l a s have already been raised against an expected
f e d e r a l cloudburst.
A n official s t o r m s i g n a l was p u t u p last week by V i r g i n i a K n a u e r ' s Office of
Consumer A f f a i r s . I t announced i t h a d t u r n e d over t o the proper f e d e r a l legal
a u t h o r i t i e s f o r i n v e s t i g a t i o n a n d possible prosecution a n u m b e r of allegedly
exaggerated c l a i m s d e a l i n g w i t h t h e a n t i c i p a t e d p e r f o r m a n c e of solar h e a t i n g
systems.
A t the same t i m e , Joe D a w s o n of t h e K n a u e r office, is p u t t i n g the final touches
on a consumer's guide t o solar h e a t i n g designed to a l e r t the u n w a r y , u n t r a i n e d
p u b l i c t o t h e dangers presented by f a s t b u c k operators i n the field. Government
agencies are readying technological standards f o r solar systems a n d the dis-
44
turbed industry's trade group, the Solar Energy Industries Association, is d r a f t i n g a code of ethics.
According to reliable sources, these actions are aimed at one company i n part i c u l a r , I n t e r n a t i o n a l Solarthermics Corporation ( I S C ) of Nederland, Colo.,
and i t s licensees and distributors who operate nationwide under different names.
Some of the trade names are Sungazer, Sun Glow, Energy K i n g , et cetera.
ISC advertises i t s system, b u i l t around an A - f r a m e backyard solar furnace the
size of a bathroom floor, can reduce annual heating bills up to 90 per cent i n
areas l i k e California. ISC says i t can provide 72 per cent of the heat requirements of a 1,000 square foot home (58 per cent of a 1,500 square foot house)
i n the Washington area t h r o u g h its solar collector, w h i c h comes i n three sizes:
96, 128 and 160 square feet. The system costs between $4,500 and $6,000, although a Bowie, Md., franchise claims he can sell i t f o r as l i t t l e as $3,500.
ISO's claims do not jibe w i t h c u r r e n t l y accepted solar technology, a f a c t t h a t
has made i t the center of a g r o w i n g controversy among scientists and competitors. ISO's chief, John H . Keyes, a philosophy m a j o r turned solar inventor,
asserts he is the v i c t i m of a conspiracy. I n a recent i n t e r v i e w w i t h the Nat i o n a l Observer, he alleged his files had been rifled a la Ellsberg's psychiatrist.
According to experts at the N a t i o n a l B u r e a u of Standards, the Energy Research and Development A d m i n i s t r a t i o n and i n industry, the rule of t h u m b i n
d e t e r m i n i n g the size of a solar heat collector—the honeycomb a r r a y of cups
t h a t captures the sun's rays—is one square f o o t per 2.5 square feet of house
surface i n t h i s area. Thus a 2,000 square foot house w o u l d require an 800 square
foot collector to provide 70 per cent of the space heat required i n this climate.
The average price per square foot of collector f o r an " a c t i v e " system ( w i t h
pumps) ranges between $10 a n d $20. Cheaper prices may be quoted f o r a "passive" system or f o r parts w i t h o u t i n s t a l l a t i o n charges.
Here, too, experts say a h i g h efficiency range—or the amount of the available solar r a d i a t i o n caught by the collector and put t o use—is generally impossible to achieve. On sunny days the average runs about 55-60 percent; on
cloudy days, 35-40 per cent.
According to H e n r y Anderson of Applied Solar Technology, a company w h i c h
assesses homes' solar heating prospects but does not sell equipment, the average
house i n Washington needs 75 m i l l i o n B T U s of energy per year at a cost of
about $9 per m i l l i o n ( f o r e l e c t r i c i t y ) , or $657 annually. A 400 square foot
collector system w i t h 50 per cent efficiency w o u l d supply something over 30
m i l l i o n B T U s annually and save about $300 a year, or 40-50 per cent of one's
f u e l bill.
(Figures v a r y according to the design of the house, the t i l t of the collector
and many other factors. Also neither the amount of energy nor the efficiency
rate increases i n direct proportion to the size of the collector, so accurate comparisons are impossible f o r the amateur to figure.)
Reducing the equation to its simplest terms, Anderson calculates the average
house w o u l d require a 400-500 square foot collector a t $20 a square foot to
supply 50 per cent of a home's needed energy. A t this r a t e the investment w o u l d
be p a i d off i n 12 to 15 years, assuming 7 per cent inflation, but excepting finance charges on a loan to pay the i n i t i a l costs.
Dawson's guide, " H o w to B u y Solar," discusses many of these measurements
i n easy-to-understand terms. I t also raises and attempts to answer, legal, tax,
insurance and other questions the prospective buyer faces. The book does not
mention I S C by name, but i t has a section on insulation w h i c h should offer a
clue to those curious to know how Keyes' 60 square foot collector costing $6,000
can supposedly do the w o r k of a 500 square foot one costing $10,000.
Keyes' model home has 18 inches of glass fiber insulation i n the ceiling, 3.5
inches i n the outer walls, double paned small windows, 1.5 i n c h t h i c k wood doors
w i t h storm doors plus good weather s t r i p p i n g and caulking.
Few existing houses have more t h a n f o u r t o six inches of a t t i c i n s u l a t i o n and
t w o to three inches i n the walls. Solar experts say i t w o u l d probably be physically impossible and economically ruinous to p u t i n t o an existing house the amount
of i n s u l a t i o n ISC requires. A n d b u i l d i n g a new house designed around such a
solar system w o u l d also be expensive i f i t works. ISC has not made test data
public and consumer experience w i t h the system is lacking.
45
A c c o r d i n g t o the N a t i o n a l Observer, I S C licensees pay $75,000 t o produce the
system Keyes designed, plus a r o y a l t y on each u n i t . M a n u f a c t u r e r s sell f r a n chises to d i s t r i b u t o r s a n d dealers f o r between $5,000 a n d $10,000 each. Some
licensees have invested as m u c h as $300,000.
A s Keyes t o l d P a u l C. H o o d of the Observer, " T h i s is n o t a fast-buck operat i o n . . . I t ' s n o t the k i n d of t h i n g you can get in, get y o u r money out, a n d leave
for Rio."
COMMENTS BY H O N .
INGTON
GILBERT G U D E ON A R T I C L E I N T H E NOVEMBER 2, 1 9 7 5 ,
POST
ENTITLED
"SOLAR
SYSTEM
HIT
BY
WASH-
STORM"
I n r e g a r d t o the contents of the article, I w o u l d m a k e t h e f o l l o w i n g
observations.
(1) I n reference t o complaints about solar equipment, the a r t i c l e mentions
o n l y one company, I n t e r n a t i o n a l Solarthermics C o r p o r a t i o n ( I S C ) . I S C uses a
b a c k y a r d A - f r a m e solar f u r n a c e c o n t a i n i n g rock f o r heat storage. T h i s approach
is considerably d i f f e r e n t f r o m the rooftop collector-hot w a t e r storage systems
w h i c h are more widespread, a n d any allegations concerning t h e one cannot autom a t i c a l l y be extended t o t h e others.
Second, the allegations i n question cover exaggerated claims n o t met by t h e
technology, r a t h e r t h a n the basic n a t u r e of the technology itself. I n other words,
i f the charges are correct, the equipment w o r k s ; i t j u s t does n o t w o r k as w e l l as
is claimed. This, of course, is not a n excuse, since sales w i l l be made on the
basis of claims, a n d exaggerated claims t h r e a t e n t o jeopardize t h e e n t i r e indust r y by destroying i t s c r e d i b i l i t y . Since the complaints i n question, however, refer
p r i m a r i l y t o m a r k e t i n g a n d expectations, I don't believe t h e basic effectiveness of
the solar h e a t i n g idea is questioned, t h o u g h we m u s t a l l continue t o g u a r d
against u n r e a l i s t i c predictions of w h a t solar can do.
(2) Complaints against m a n u f a c t u r e r s exist i n every i n d u s t r y , a n d w h i l e w e
must do e v e r y t h i n g we can to get phony equipment off the marketplace, i t does
not a u t o m a t i c a l l y f o l l o w f r o m the presence of complaints t h a t t h e e n t i r e i n d u s t r y
is crooked. I w o u l d f u r t h e r p o i n t out t h a t both H . R . 3849 a n d H . R . 8524, the
subjects of t h i s hearing, contain s t r i c t protections against unqualified equipment
being purchased w i t h l o a n funds. E q u i p m e n t w o u l d have t o be evaluated by
E R D A a n d certified by H U D as meeting i t s performance c r i t e r i a before i t could
be purchased w i t h l o a n funds. T h i s guarantees the m a r k e t i n g of q u a l i t y solar
products t h r o u g h a f e d e r a l incentives program, a n d I believe strongly we have
to have protections of t h i s k i n d connected w i t h any k i n d of incentive—loan programs or t a x credits.
(3) A t the same time, however, I t h i n k we also should g u a r d against s t i f l i n g
innovation. T h i s is, i n m a n y respects, a n i n f a n t i n d u s t r y w h i c h s t i l l has room
f o r f u r t h e r technological breakthroughs i n some areas, a l t h o u g h the basic
concepts are w e l l established. W h i l e we m u s t protect the public against solar
equipment w h i c h does not w o r k or does n o t meet advertised claims, we must not
be so hasty as t o pounce on anyone w i t h a new or d i f f e r e n t idea. Room f o r innov a t i o n remains, and i t should be n u r t u r e d , leading to t h e conclusion t h a t the most
a p p r o p r i a t e k i n d of f e d e r a l standards are those i n t h e area of performance crit e r i a and a d v e r t i s i n g claims.
(4) W i t h o u t question, i m p r o v e d i n s u l a t i o n is a n i m p o r t a n t p a r t of energy
conservation a n d can c o n t r i b u t e a great deal t o properly f u n c t i o n i n g solar equipment. W h e r e claims about solar heating are derived f r o m d a t a on h e a v i l y insulated homes, those claims should so indicate. Solar m a n u f a c t u r e r s , however,
can do the cause of energy conservation a great service by stressing the importance of i n s u l a t i o n both i n solar homes and conventional homes.
M r . ROUSSELOT. Mrs. Knauer says she is producing a booklet to
protect the unwary, but I have not seen it.
M r . GUDE. I have met one developer who has a magic formula, which
he keeps saying he is going to have patented, and you put this i n a
solar heating unit, and you just have a l i t t l e t i n y u n i t i n your roof,
and you can heat the whole house w i t h no trouble at all. A n d we have
62-322 O - 75 - 4
46
not quite gotten to the bottom of these magical properties of this
material. But some people are going to buy it before they are sure
it really works. I will be glad to comment.
Mr. ROUSSELOT. Thank you.
Mr. MOORHEAD. Thank you very much, Mr. Gude.
The subcommittee would now like to hear from our distinguished
colleague from New York, Hon. Richard L. Ottinger, who has also
been very active in this field, and in the field of the environment.
STATEMENT OF HON. RICHARD L. OTTMGER, A REPRESENTATIVE
IK CONGRESS FROM THS STATE OF NEW YORK
Mr. O T T I N G E R . Thank you very much, Mr. Chairman.
And I would also like to express my appreciation to the Chairman
of the subcommittee for being nere today to help with this legislation.
We are also jointly involved in other legislation to promote solar
energy to be used on Federal buildings, where the Federal Govern^
ment could create a market for solar equipment that I think is compatible with this.
As I will state in my formal statement, I am a member of the Science
and Technology Committee, where we have been very active in trying
to promote research and development and the standards for solar
equipment, and I will speak to that a bit later.
Congressman Gude, who authored these bilk, is to be congratulated
for his work and commitment in getting solar energy technology into
use now, by helping homeowners to be able to buy it and builders to
be able to install it, and by helping the small businesses that have done
the lion's share of solar equipment development get into production.
Your subcommittee now has the essential role to play in bringing
solar technology out of the R.D. & D. stage and into Americans' homes,
office buildings and factories. Your work in this subcommittee will be
the pivotal thrust that will bring this essential source of clean, readily
available and renewable power off the drawing boards and into reality.
I am concerned that we move quickly and decisively to show the country that we in Congress are aware of the needs of builders and homeowners for assistance in solving some of the current financial problems
associated with putting solar energy into operation; and that we are
also aware of the special involvement of small businesses in the production and supply of solar equipment.
I am a member of the House Committee of Science and Technology
and have been very involved and interested in the work of the Energy
Research and Development Administration in both conservation and
solar energy. The work of E R D A will be continually important in the
development of solar energy, but let me emphasize to you that based
on the many hours of testimony I have heard these past months, there
is proven technology and technological expertise throughout the country for solar heating and cooling that should be put into practice right
now.
The Office of Technological Assessments' analysis of the E R D A National Plan completed this October states that commercially acceptable
equipment for solar space heating and water heating is available and
price effective in today's market. The American Society of Heating,
47
Refrigeration and Air-Conditioning testified last May before the
Subcommittee on Energy Research, Development and Demonstration
of which I am a member that the technology f o r heating and cooling
is here f o r commercial buildings. Solar energy is i n widespread use for
hot water heating i n much of the world. Japan has more than two
m i l l i o n units i n use, and widespread use also exists now i n Australia,
New Zealand, and Israel.
I t has also been demonstrated rather dramatically d u r i n g recent
months that homeowners are ready to move w i t h solar energy. Last
fall, 7,000 individuals responded to a television program on solar
energy asking f o r information about installing solar units. The Massachusetts Electric Co. had more than 5,200 customers respond to a solar
water heating demonstration program that the electric company
anticipated would serve only 100 customers. B o t h E R D A and the
Housing and Urban Development Administration have been beseiged
w i t h individual requests for information about the Heating and Cooling Demonstration A c t programs which w i l l probably only involve
2,000 demonstration units.
Solar heating and cooling has the possibility of a very positive effect
on our economy. A s you are aware, the construction industry represents about 10 percent of the Nation's gross national product, second
only to the food industry. The Sheet Metal Workers International
recently commissioned a study prepared by Stanford Research Institute which forecast a potential $2 billion operation f o r a solar heating
and cooling industry by the year 1990 i f we push f o r w a r d w i t h a
strong national commitment.
A further plus to be kept i n mind is that solar energy technology is
v i r t u a l l y free f r o m environmental damage. I t does not cause air, water
or thermal pollution. I t does not require solid waste disposal, fuel
storage or pipelines, transmission lines or other forms of fuel transportation. Furthermore, solar equipment installed on a building's roof
reduces land use associated w i t h other energy producing methods.
Solar energy w i l l help materially to advance the goals of energy
independence, but only i f we start installing i t now. According to a
study done by Fred S. D u b i n of the Dubin-Mindell-Bloome Engineeri n g firm, i f energy used i n all buildings could be reduced just 25 percent, we would be able to save 3 m i l l i o n barrels of oil a day. The Federal Energy Administration i n its Solar Task Force report states that
solar heating and cooling could save 1 million barrels of oil per day by
1985 and that solar energy could provide 10 percent of our national
energy demand by 1990. A n d this, of course, would save us hundreds of
millions of dollars i n not having to import expensive oil, which we
have to do at the present time.
T o bring solar energy into use now, for all the above reasons, we
need financial help f o r homeowners and builders. The Office of Technological Assessments' report states that
There is a clear need f o r equitable treatment of the solar energy user. The
i n d i v i d u a l user, t u r n e d energy producer, does not now receive the benefits of
investment t a x credits, depreciation allowances, depletion allowances and other
incentives provided t o corporate producers of fossil fuels. No incentive recognises
his c o n t r i b u t i o n to society i n reducing pollution, preserving fossil resources or
reducing the nation's dependence upon imported fuel.
And that is a quote from OGA.
48
A l t h o u g h solar equipment can be economically advantageous on
a first-cost basis f o r those areas of the country r e l y i n g on electricity
f o r space heating, i t is more expensive i n i t i a l l y than conventional systems using heating o i l and gas. I urge you t o recognize the importance
of equalizing these costs and benefits f o r those who w i l l now wish to
use solar energy.
I also urge you to consider the special role t h a t small businesses have
and can continue to play i n the development of solar technology, its
distribution and servicing.
Solar systems for space heating and cooling are not technically complicated. Equipment can be easily brought to the site of construction
and installed. Therefore, many local small manufacturers and workers
now out-of-work could w o r k making and installing solar equipment
w i t h o u t lengthy or complicated training.
S m a l l businesses throughout the country have really been the champions and inventors of many of the solar systems we have now. They
are ready and w a i t i n g t o go into production, but they lack the capital
to do so, and the assurance of markets. A t a recent meeting of E R D A
on the Solar H e a t i n g and Cooling Demonstration A c t , 64 out of 112
business representatives registered as small businesses.
I t h i n k i t is important t h a t this particular aspect of the development of solar energy not be overlooked and that you provide f o r small
business participation t h r o u g h the loan program the legislation before
you proposes.
The overriding issue is how can we get solar heating and cooling
into homes and buildings across the country and do i t r a p i d l y . The
bills before you today deal w i t h the financial incentives w h i c h are so
t e r r i b l y important to accomplishing this goal.
I would like to, i f I could, comment on some of the questions t h a t
were raised to M r . Gude. One is the concern about the inadequate solar
systems which are coming on the market, and there is very detailed
provision i n this legislation f o r certification of equipment t h a t is available f o r these loans, both by E R D A and by the Secretary of the Department of Housing and U r b a n Development, who has to establish
standards f o r this program which i t receives f r o m E R D A , and only
qualified equipment that w i l l satisfy 40 percent of the heating needs of
a particular house w i l l qualify. So that I t h i n k we have protection i n
this regard.
T h e question was raised, what is the relationship between loans
and tax credits. I also supported M r . W y lie's tax credit program, and
I t h i n k both are very badly needed. The tax credit f o r a period o f
time covers the i n i t i a l first cost of solar equipment, and i t w i l l give
an actual incentive to make this equipment, while i t is being perfected
and gotten i n t o mass production, more competitive than fossil fuel
systems.
The loan is not subsidizing the equipment, as such, b u t is m a k i n g
i t possible and f o r i n d i v i d u a l owners that may want to retrofit t h e i r
homes to be able to do so, and to have the cash up f r o n t . A n d I t h i n k
t h a t is exceedingly important. A t the present time, i t is very difficult
f o r a person to get a loan f o r solar equipment and builders are very
hesitant to add solar equipment, even t h o u g h i t is a k i n d o f sexy addit i o n to their project, because they are h a v i n g such difficulty i n selling
49
homes at any rate, and adding t o the i n i t i a l first cost is a factor which
they do not want to undertake at this time. So that h a v i n g this k i n d
of financial assistance, I t h i n k , really w i l l make a difference.
W i t h respect to the F H A mortgage suggestion t h a t M r . Rousselot
has suggested, a great many houses are not financed—are not available
f o r financing w i t h F H A . I t h i n k t h a t an F H A program complementi n g this would be fine, but i n my area of the country, very l i t t l e of the
housing qualifies f o r F H A financing, and the builders generally do not
use that financing, so t h a t I do not t h i n k t h a t would solve your whole
problem.
I do t h i n k t h a t i t is t e r r i b l y important—and I know you w i l l hear
some people who w i l l say, you know, let's wait. Let's get the solar
equipment more perfected before we move. I was i n A i r Force procurement i n m y time i n the Service, and I saw t h a t time after time we
would f a i l to get a i r c r a f t into the air because new developments would
come along which would be insisted to be incorporated into the new
model of the aircraft. I t would get delayed and delayed, and expenses
would be incurred as the designs were changed to accommodate the
new equipment. I t h i n k that i t was a very disadvantageous program
f o r us.
I t h i n k we should go now, p a r t i c u l a r l y i n view of the tremendous
energy crisis t h a t we do face, and get the experience that p r o v i d i n g
the presently available adequate equipment f o r both hot water heati n g and f o r space heating and cooling of commercial buildings on the
road and into place. A s we get more perfected equipment, the b u i l d i n g
industry unquestionably w i l l incorporate the more sophisticated
equipment i n t o their units.
Furthermore, as we get this equipment i n t o use, i t w i l l be mass
produced, and the need f o r this k i n d of financial incentive w i l l be
eliminated, because I am quite sure t h a t once this equipment does get
i n mass production, i t w i l l be cost competitive i n every way.
[ T h e prepared statement of Congressman Ottinger follows:]
PREPARED
STATEMENT
OF C O N G R E S S M A N
RICHARD
L.
OTTINGER
I w a n t to t h a n k you f o r the opportunity to present a statement on these t w o
v i t a l l y i m p o r t a n t pieces of legislation, H.R. 8705 and H.R. 4507.
Congressman Gude, who authored these bills, is to be congratulated f o r his
w o r k a n d commitment to getting solar energy technology i n t o use now by helpi n g homeowners to be able to buy it, builders to be able to instaU i t , and by
helping the small businesses t h a t have done the lion's share of solar equipment
development get into production.
Your committee now has the essential role t o play i n b r i n g i n g solar technology
out of the R.D. & D. stage and into Americans' homes, office buildings and factories. Your w o r k i n this committee w i l l be the p i v o t a l t h r u s t t h a t w i l l bring
this essential source of clean, readily available a n d renewable power off the
d r a w i n g boards and i n t o reality. I am concerned t h a t we move quickly and
decisively to show the country t h a t we i n Oongresls are aware of the needs of
builders and homeowners f o r assistance i n solving some of the current financial problems associated w i t h p u t t i n g solar energy into operation; and t h a t we
are also aware of the special involvement of small businesses i n the production
and supply of solar equipment.
I a m a member of the House Committee of Science and Technology and have
been very involved and interested i n the w o r k of the Energy Research and
Development A d m i n i s t r a t i o n i n both conservation and solar energy. The w o r k
of E R D A w i l l be continually i m p o r t a n t i n the development of solar energy, but
let me emphasize to you, t h a t based on the many hours of testimony I have
50
h e a r d these past months, there is proven technology and technological expertise
throughout the country f o r solar heating and cooling t h a t should be p u t i n t o
practice r i g h t now.
The Office of Technological Assessments' analysis of the E R D A N a t i o n a l P l a n
completed this October states t h a t commercially acceptable equipment f o r solar
space heating a n d water heating is available i n today's market. T h e A m e r i c a n
Society of Heating, R e f r i g e r a t i o n and A i r - C o n d i t i o n i n g testified last M a y before
the subcommittee on Energy Research, Development a n d Demonstration t h a t
the technology f o r heating a n d cooling is here f o r commercial buildings. Solar
energy is i n widespread use f o r hot w a t e r heating i n much of the w o r l d . Japan
has more t h a n 2 m i l l i o n units i n use, a n d widespread use also exists now i n
A u s t r a l i a , New Zealand and Israel.
I t has also been demonstrated rather d r a m a t i c a l l y d u r i n g recent months t h a t
homeowners are ready to move w i t h solar energy. L a s t f a l l , 7,000 i n d i v i d u a l s
responded to a television program on solar energy asking f o r i n f o r m a t i o n about
i n s t a l l i n g solar units. T h e Massachusetts Electric Company h a d more t h a n
5,200 customers respond to a solar w a t e r heating demonstration p r o g r a m t h a t
the Electric Company anticipated w o u l d serve only 100 customers. B o t h E R D A
a n d The Housing a n d U r b a n Development A d m i n i s t r a t i o n have been besieged
w i t h i n d i v i d u a l requests f o r i n f o r m a t i o n about the H e a t i n g and Cooling Demons t r a t i o n A c t programs w h i c h w i l l probably only involve 2,000 demonstration
units.
Solar heating a n d cooling has the possibility of a very positive effect on our
economy. As you are aware, the construction i n d u s t r y represents about 10% of
the nation's gross n a t i o n a l product, second only to the food industry. The Sheet
M e t a l W o r k e r s I n t e r n a t i o n a l recently commissioned a study prepared by Stanf o r d Research I n s t i t u t e w h i c h forecast a potential $2 b i l l i o n operation f o r a solar
heating a n d cooling i n d u s t r y by the year 1990 i f we push f o r w a r d w i t h a strong
n a t i o n a l commitment.
A f u r t h e r plus to be kept i n m i n d is t h a t solar energy technology is v i r t u a l l y
free f r o m environmental damage. I t does not cause a i r , w a t e r or t h e r m a l pollution. I t does n o t require solid waste disposal, f u e l storage or pipelines, transmission lines or other f o r m s o f f u e l transportation. Furthermore, solar equipment installed o n a building's roof reduces land use associated w i t h other energy
producing methods.
Solar energy w i l l help m a t e r i a l l y to advance the goals of energy independence—but only i f we s t a r t i n s t a l l i n g i t now. According to a study done by F r e d
S. D u b i n of the Dubin-Mindell-Bloome Engineering F i r m , i f energy used i n a l l
buildings could be reduced j u s t 25% we w o u l d be able to save 3,000,000 barrels
of o i l a day. The Federal Energy A d m i n i s t r a t i o n i n its Solar Task Force Report
states t h a t solar heating and cooling could save one m i l l i o n barrels of o i l per day
by 1985 and t h a t solar energy could provide 10% of our N a t i o n a l Energy demand
by 1990.
To b r i n g solar energy i n t o use now, f o r a l l the above reasons, we need financial
help f o r homeowners and builders. The Office of Technological Assessments' Rep o r t states t h a t " t h e r e is a clear need f o r equitable treatment of the solar energy
user. The i n d i v i d u a l user, t u r n e d energy producer, does not now receive the
benefits of investment t a x credits, depreciation allowances, depletion allowances
and other incentives provided to corporate producers of fossil fuels. No incentive
recognizes his contribution to society i n reducing pollution, preserving fossil
resources or reducing the Nation's dependence upon imported f u e l . "
A l t h o u g h solar equipment can be economically advantageous on a first cost
basis f o r those areas of the country r e l y i n g on electricity f o r space heating, i t
is more expensive i n i t i a l l y t h a n conventional systems using heating o i l and gas.
I urge you to recognize the importance of equalizing these costs and benefits f o r
those who w i l l now w i s h to use solar energy.
I also urge you to consider the special role t h a t small businesses have and
can continue to play i n the development of solar technology, i t s d i s t r i b u t i o n
and servicing.
Solar systems f o r space heating and cooling are not technically complicated.
Equipment can easily be brought t o the site of construction and installed. Therefore, many local small manufacturers and workers now out of w o r k could w o r k
m a k i n g and i n s t a l l i n g solar equipment w i t h o u t lengthy or complicated t r a i n i n g .
51
S m a l l businesses t h r o u g h o u t the c o u n t r y have r e a l l y been the champions a n d
i n v e n t o r s of m a n y of the solar systems w e have now. They are ready a n d w a i t i n g
to go i n t o production, b u t they l a c k the c a p i t a l to do so—and the assurance of
markets. A t a recent meeting of E R D A on the Solar H e a t i n g a n d Cooling Demo n s t r a t i o n A c t , 64 out of 112 business representatives registered as s m a l l
businesses.
I t h i n k i t is i m p o r t a n t t h a t this p a r t i c u l a r aspect of the development of solar
energy n o t be overlooked a n d t h a t you p r o v i d e f o r s m a l l business p a r t i c i p a t i o n
t h r o u g h the l o a n p r o g r a m the legislation before y o u proposes.
The o v e r r i d i n g issue is h o w can we get solar h e a t i n g a n d cooling i n t o homes
a n d b u i l d i n g s across t h e country. T h e b i l l s before you today deal w i t h the
financial incentives w h i c h are so t e r r i b l y i m p o r t a n t to accomplishing t h i s goal.
M r . MOORHEAD. W e l l , thank you very much, M r . Ottinger, for an
excellent statement. A n d you b r i n g to this subcommittee the benefit
of your experience on your Science and Technology Committee, which
is a great help t o us.
I have no questions at this time.
M r . St Germain.
M r . ST GERMAIN. I have no questions.
M r . MOORHEAD. M r . W y l i e .
M r . WYLIE. I would just like t o ask a couple, i f I may. K n o w i n g
that you have studied this problem, just as I have, and have spent a
considerable amount of time on i t — a n d I do feel that solar energy is
the energy source of the future, and I am only attempting to hasten
the day when i t w i l l be i n use by the public a l l across the land on a
mass produced basis. The problem I have, a l i t t l e bit, w i t h your bill,
and you can help me w i t h this, i f you w i l l — I am being the devil's
advocate, i f you please, by asking this question—how does this b i l l
provide an incentive to produce a solar energy house ? W o u l d this not
actually increase the cost to the ultimate purchaser or consumer?
M r . OTTINGER. W e l l , no. A t the present time, the consumers are
finding i t impossible to get bank lending or to get the solar equipment addition included i n their mortgages.
M r . WYLIE. L e t me rephrase the question. Solar energy is a viable
source f o r heating and cooling r i g h t now. There is a solar energy home
i n being i n Columbus, Ohio. Solar energy has provided about 70 percent of a l l the heating and cooling needs i n that house f o r a period of
almost 10 months. The problem is t h a t i t costs so much to install solar
energy equipment that few people can afford i t , so I offered a tax
credit proposal w h i c h simply stated that i t would reduce the end cost
to the person who ultimately buys the home.
I t h i n k we must reduce the cost i f we are going to encourage people
to b u i l d or buy solar energy homes, or we must determine a way to
produce cheap solar energy units on a mass production basis. T h a t
is what H U D is up to r i g h t now, as I understand i t ; developing the
research f o r development of a prototype program.
B u t does not the loan program which you have suggested actually
increase the cost, i n that there is a 0.5 percent additional interest rate
f o r administrative costs. W e really do not know how much cost that
w i l l add; plus the fact there would have to be at least t w o separate
sets of books where a builder is b u i l d i n g a solar energy home as a
part of a subdivision where some of the homes would be conventional.
52
A n d I m i g h t , i n t h a t connection, ask you to comment on M r . B a r lield's statement, i n his prepared statement i n which he says :
I n i t s present f o r m , the proposed incentive p r o g r a m could result i n w i n d f a l l s
t o those homeowners a n d others w h o could economically j u s t i f y t h e use of solar
energy based on c u r r e n t energy costs.
M r . OTTINGER. I do not see, considering that most homeowners do
borrow money to finance their homes, that p r o v i d i n g a loan p r o g r a m
w h i c h w i l l s t i l l be at a below-the-market rate, though not a below-themarket rate f o r Government securities, but certainly a below-the-market rate f o r mortgages, is going to be any discouragement to use solar
energy. Quite the contrary, I t h i n k i t is going to enable the use of solar
energy.
T o the argument that this is a p r o g r a m which is l i k e l y to be more
h e l p f u l to affluent homeowners or middle-income and upper-income
homeowners than i t is to low-income howeowners, I w o u l d say i t is
probably so, though there are a group of homeowners i n New Y o r k
C i t y , slum dwellers, who are rehabilitating their own homes, t h a t are
p u t t i n g solar energy i n a slum dwelling, w i t h financing f o r the solar
addition coming f r o m H U D i n a demonstration program, so t h a t may
not be universally so.
B u t I t h i n k that there is an overriding national importance here of
getting solar equipment into use and getting i t mass produced and prov i d i n g the o i l savings and the pollution savings that the installation of
solar equipment would provide, so that while m y own personal record
w o u l d indicate that I have a general bias toward programs t h a t are of
particular help or at least treat the poor segment of our population on
an equitable basis, I do not really t h i n k t h a t is the thrust of this legislation. Whether or not i t helps the poor, I t h i n k i t w i l l help the country
get into the solar energy business, and replace existing fossil fuel heati n g units that are used by middle-income and wealthy individuals w i t h
solar units, and I t h i n k t h a t is fine.
M r . WYLIE. W e l l , I do not want t o dwell on this, but on page 2 of
the Gude b i l l , which you are t e s t i f y i n g i n favor of here, i t says that
the Secretary is authorized to make loans as provided i n this section t o
individuals and families owning and occupying one- to f o u r - f a m i l y
residential structures.
Now, we are t a l k i n g about r e t r o f i t t i n g there; are we not ?
M r . OTTINGER. Y e s .
M r . WYLIE. W e are converting existing houses into solar energy
homes ?
M r . OTTINGER. R i g h t . A n d I say the o v e r r i d i n g importance is those
people are either going to use fossil fuel or they are going to use solar.
A t the present time, they are not using solar f o r a variety of reasons.
One is the lack of availability of financing. So i t is to his advantage,
even though this is a particular help to people who cannot afford
owner-occupied one- to f o u r - f a m i l y home. I t is i n the national interest
that they be encouraged t o use solar.
M r . WYLIE. B u t i f a person cannot afford a conventional loan then
how could he afford a solar equipment loan because i t would be more
expensive? A c t u a l l y , the loan would go to a builder, as I have suggested, and the builder would either have to add the cost of the solar
53
energy loan to the person who is b u y i n g the house, or the builder would
have to take a loss on it.
M r . O T T I N G E R . W i t h respect to the cost of these loans, they are going
to be cheap loans to the individual. These are below the market. They
are at a rate equal to the average market yield on a l l marketable interest bearing obligations of the U n i t e d States.
M r . W Y L I E . B u t the cheap loan—cost would be determined how ?
M r . O T T I N G E R . Plus one-half of 1 percent.
M r . W Y L I E . B u t would the cheap loan go t o a person retrofitting his
house or to a person who is b u y i n g a new solar energy house?
M r . O T T I N G E R . A l l of the loans under this program were going to
be at that rate of one-half of 1 percent above the market f o r
U.S. securities.
M r . W Y L I E . T o the builder of a new solar energy house ?
M r . O T T I N G E R . I f he is b u i l d i n g a new solar energy house, r i g h t .
M r . W Y L I E . O K , I thank you, M r . Chairman.
M r . M O O R H E A D . M r . Eousselot.
M r . EOUSSELOT. T h a n k you, M r . Chairman. A g a i n , we are appreciative of our colleague and of his interest i n this area. M a n y of us on this
subcommittee, we wish to assure you, have a continuing interest i n the
use of solar energy, especially i n the single f a m i l y dwelling category,
and feel that we should move on i t to see that the technology is, i n fact,
utilized.
Now, I have talked to many of the mortgage people i n C a l i f o r n i a
and I do not find an unwillingness on the p a r t of the private market
to include relatively well-proven solar systems i n the heating and cooli n g part of either new housing or existing housing, i f i t is an add-on
loan. So, I really do not know that the case has been made that we
have to have the entry of the Federal Government i n a direct lending
program to provide the k i n d of incentive that we are t a l k i n g about.
I appreciate his comment on the fact that F H A only insures relatively 20 percent of the marketplace i n mortgages, so that, obviously,
their entry would not amount to total coverage. B u t , has the gentleman
found any evidence that the lending institutions which lend on individual homes are u n w i l l i n g to accept this k i n d of equipment as a normal part of the mortgage ?
M r . O T T I N G E R . Yes; though I t h i n k we can get some evidence i n
that regard, I get i t p r i m a r i l y f r o m the builders who have been interested i n solar energy and have found that the banks are u n w i l l i n g to
finance that additional cost because they are not sure they are going
to get i t back on resale of the house.
M r . EOUSSELOT. A n d the reason f o r that is the additional cost of
the d w e l l i n g ; is that correct ?
M r . O T T I N G E R . T h a t is correct.
M r . EOUSSELOT. W e l l , I know you support the direct loan concept
and I hate to keep coming back to the same place, but is i t not true
that where we really have to provide the incentive is w i t h the builder,
to get h i m to include this k i n d of equipment i n a home or i n a m u l t i f a m i l y dwelling ?
M r . O T T I N G E R . One of the incentives that, I t h i n k , would be meani n g f u l to h i m would be to finance the solar equipment outside of the
54
existing financial resources that are available to h i m and at an interest rate t h a t is lower, t h a n would o r d i n a r i l y be available t o h i m on a
mortgage.
M r . ROUSSELOT. B u t , a direct loan to the builder does not lower the
ultimate cost to the consumer. I t adds on, and so is not really the
incentive going to have to p r i m a r i l y be i n the tax area?
M r . OTTINGER. W e l l , I entirely favor the tax incentive. I t h i n k i t
performs a different function. The tax incentive comes, sometimes,
later when the guy pays his taxes, number 1.
M r . ROUSSELOT. B u t he pays them every year.
M r . OTTINGER. The loan comes up f r o n t , and I t h i n k t h a t i t meets
a need which presently builders t e l l me—and you can get testimony
on this f r o m the builders' association and the architects' association—
t h a t they presently cannot get the financing f r o m the banks at the
going rate of interest and w i t h the tremendous competition t h a t I
know you are very aware exists.
M r . ROUSSELOT. They cannot get i t i n a construction loan?
M r . OTTINGER. They cannot get i t as p a r t of their overall construct i o n loan because the banks do not yet have confidence enough. W e
have not yet had enough experience out i n the marketplace w i t h solar
heating so that they are confident they can get back t h a t increment
of price that is added by the addition of solar energy back when a
house is resold, and t h a t is what I have been t o l d by the builders.
M r . ROUSSELOT. W e l l , we both are looking f o r the same objective
and t h a t is to get solar energy systems i n place i n p r i m a r i l y single
f a m i l y dwelling units, and, of course, E R D A has a project to go
over the next 5 years f o r 4,000 units, and, as the gentleman knows,
there w i l l be grants given to stimulate that. I realize t h a t that has
not gotten off the ground as fast as, maybe, the gentleman and I w o u l d
like.
M r . O T T I N G E R . I t h i n k that i f i t would make you more comfortable,
you could do this through guaranteed loans. Somebody has suggested
that. I am k i n d of soft on guaranteed loans these days.
M r . ROUSSELOT. I t is opening u p as a new vista i n New Y o r k C i t y .
[General laughter.]
W e l l , m y experience w i t h builders is t h a t i f they had the tax
incentives t o generate their interest i n this, and, assuming t h a t they
could be convinced as i n d i v i d u a l builders t h a t these were sufficient
heating and cooling supplementary units to go into the home, that
they would, i n fact, put them i n there i f we gave them the r i g h t k i n d
of incentives. A t least, t h a t is a way to get i t done.
M r . OTTINGER. W e find the builders i n our area are very eager to
get into this. They t h i n k i t is something exciting, something t h a t w i l l
attract buyers to their homes. They are having difficulty w i t h the
financing. They are h a v i n g some difficulty w i t h b u i l d i n g codes. I n
some cases, they are having labor difficulty.
M r . ROUSSELOT. N O W , you w i l l i n f o r m them that F H A has a central
approval office available f o r F H A guaranteed financing
M r . OTTINGER. I certainly w i l l when that becomes available.
M r . ROUSSELOT. T h a t is available now. F H A makes the regional
office get approval f r o m the central office, but i t can be done, and
I intend to encourage more builders who are used to w o r k i n g w i t h
F H A to make use of that. The availability is l i m i t e d to central F H A
55
approval procedures of this F H A money only because they have not
set their m i n i m u m standards; they have not quite resolved their final
m i n i m u m standards yet.
W e l l , I again want to thank m y colleagues f o r their contribution
by this subcommittee, to the consideration of solar energy development. M a n y of us are very interested i n this f o r m of heating and
cooling, and want t o see i t come into being, and, though you and I
may disagree on the direct loan approach, we both want to see i t get
done and accomplished and i n place, so I thank the gentleman.
M r . MOORHEAD. T h a n k you very much, M r . Ottinger, f o r your
excellent statement. The subcommittee would now like to hear f r o m
a panel of experts i n the field, Robert DeBlois, chairman, the solar
energy application committee, New E n g l a n d Fuel Institute, accompanied by Charles H . B u r k h a r d t , executive vice president of the New^
England Fuel I n s t i t u t e ; also f r o m Sheldon H . B u t t , president, Solar
Energy I n d u s t r y Association, and C. A . Morrison, director of research, Solar Energy & Energy Conversion Laboratory, University
of Florida.
W e welcome a l l of you gentlemen, but my colleague f r o m Rhode
Island, M r . St Germain, has a particular welcome.
M r . ST GERMAIN. Thank you, M r . Chairman. I am very pleased to
welcome M r . DeBlois, who is f r o m the State of Rhode Island, to the
panel and to testify before the subcommittee, I have worked w i t h h i m
and his f a m i l y — i t is a family-owned business, the DeBlois O i l Co.—
over the 15 years I have been i n Congress. We, i n New England, have
always had special problems. We first worked together d u r i n g the
period when i m p o r t quotas gave us such difficulties year after year
after year. A n d now, today, i n his testimony, M r . DeBlois, on behalf
of the New E n g l a n d Institute, brings f o r t h another special problem
that arises under the legislation before us, that requires that we have
some amendments and some consideration given to New England's
situation when the retrofit would seem to be the ideal and where i t is
necessary to allow the small business people to participate i n this
conversion. I do hope and feel that the testimony of M r . DeBlois,
on behalf of the New England F u e l Institute, w i l l have an impact
on the subcommittee and on the Congress when i t considers this legislation because i t is so crucial to the future of New England.
T h a n k you, M r . Chairman.
M r . MOORHEAD. Gentlemen, we have a time problem here because
we do have a j o i n t session of Congress scheduled f o r today, so, i f any
of you could abbreviate or h i g h l i g h t your f u l l statements, we w i l l see
that your f u l l statements are p u t into the record w i t h o u t objection.
M r . DeBlois.
STATEMENT OF ROBERT DeBLOIS, EXECUTIVE VICE PRESIDENT
OF THE DeBLOIS OIL CO., PAWTUCKET, R.I., CHAIRMAN, SOLAR
ENERGY APPLICATION COMMITTEE, NEW ENGLAND FUEL INSTITUTE; ACCOMPANIED BY CHARLES H. BURKHARDT, EXECUTIVE VICE PRESIDENT OF NEW ENGLAND FUEL INSTITUTE
M r . DEBLOIS. T h a n k you, M r . Chairman, and thank you, Congressman St Germain, f o r the k i n d words. L e t me say at the outset that i f i t
56
were not f o r representation here i n Washington by people such as our
Congressman St Germain and other Representatives and Senators
f r o m a l l of the New E n g l a n d States, I t h i n k those of us i n the heating
o i l and heating equipment business i n the New E n g l a n d States would,
indeed, be hard-pressed today.
The statement that we have is relatively brief and, since I know
most of the members have not had a chance to read i t , I would like, i f I
could, to just go t h r o u g h i t quickly.
A s has already been stated, m y name is Robert DeBlois. I am executive vice president of the DeBlois O i l Co. i n Pawtucket, R . I . O u r o i l
company has been a f a m i l y business, and i t is now i n its second generation. W e are a sizable distributor and installer of home heating o i l and
oil-fired heating equipment throughout the Rhode I s l a n d and southeastern Massachusetts area. W e also service this oil-fired heating and
domestic hot water heating equipment.
Today I represent the New E n g l a n d Fuel Institute, of which I am
past president and past chairman of its board. I am presently chairman
of its finance committee and also chairman of its applied solar energy
equipment committee. Accompanying me is Charles H . B u r k h a r d t , executive vice president and managing director of the institute who is
here to answer any questions posed by members of the subcommittee.
The New E n g l a n d F u e l Institute is an association of about 1,300
independent retail and wholesale heating oil and oil heating equipment
distributors and installers throughout the six-State region. T h i s association was incorporated under the laws of the Commonwealth of
Massachusetts i n 1943, as the O i l Heat I n s t i t u t e of New England. O u r
corporate name was changed to New E n g l a n d Fuel I n s t i t u t e i n 1962.
The independent sector of the home heatinsr oil industry i n New
E n g l a n d sells more than 85 percent of a l l distillate product at retail.
I n addition, 40 percent of the fuel o i l sold at the wholesale level is marketed by independents. F u r t h e r , 19.4 percent of a l l the o i l heating
equipment sold throughout the U n i t e d States is installed i n New
E n g l a n d homes and buildings. Over 90 percent of this large quantity
of o i l heating equipment and accessories are sold, installed and serviced
by these independent heating oil dealer-distributors. About 125,000 to
140,000 o i l burners are sold and installed i n New E n g l a n d every year.
Most of these are replacements. W e usually average somewhere between 38,000 to 40,000 o i l burners as new installations. These can be
conversions f r o m other fuels or installations i n newly b u i l t homes.
There are 2,430,000 oil burner units operating i n New E n g l a n d at
the present t i m e ; about 890.000 central gas heating units and about
275.000 dwelling units u t i l i z i n g electricitv f o r heating. Gas and elect r i c i t y combined account f o r about 1,165,000 centrally heated units,
while oil has slightly over 2,400,000. U n l i k e most gas and electric u t i l i ties, the retail o i l heating dealer-distributor sells and installs heating
e w i p m e n t and accessories a n d / o r newer replacement equipment, himself. W i t h a present market of over 2.430,000 o i l heating customers, i t is
obvious that a built-in. practical and effective merchandising, marketing, engineering, installation, and service mechanism exists on a broad
scale i n New E n g l a n d f o r any heating procedure and/or process to
which the independent segment of the oil heating industry would apply
itself. T h i s especially applies to retrofit installations wherever solar
energy equipment would be added to an existing heating installation.
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Therefore, we believe that the heating oil dealer-distributor apparatus i n New E n g l a n d is ideally endowed w i t h all of the experience,
technical skills, processes, and procedures necessary f o r a mass introduction to the New England market, of solar heat generating equipment as an adjunct to existing or proposed o i l heating systems or f o r
that matter, gas or electric residential heating systems.
There is a strong potential f o r New E n g l a n d to achieve some independence f r o m foreign energy imports i f solar energy was to be used
on any large scale i n conjunction w i t h oil as a source of energy f o r
home heating and for domestic hot water production. Solar heating
would be a practical way to reduce New England's dependence on imported, refined products, specifically distillate and residual, and yet
provide a means of sustaining the livelihood of the more than 2,000
retail small businesses, heating oil dealers and distributors of the area
who provide iobs f o r well over 35,000 people.
Since the New E n g l a n d climate is such as to have many periods without sunshine w i t h extremely cold winters, i t is our considered opinion
that solar energy could supply, theoretically, i n an oil-heated- home,
up to about 35 percent of the total heat required. More practically, this
w i l l evolve to about 28 percent to 30 percent. Thus, through the application of solar energy as an adjunct to oil heat, many more people could
enjoy the benefit, comfort, virtues, and service of o i l heat without substantially increasing or more practically, even decreasing, New England's dependence upon imported, refined product.
Research on the p a r t of this institute shows t h a t i t is feasible f o r
adjunct solar heating equipment to be installed w i t h presently operati n g oil heated equipment i n 71 percent of the 2,430,000 o i l heating
installations now existing i n New England. This means we have a practical potential of approximately 1,600,000 adjunct solar heating
installations.
Under section 3(a) (1) ( A ) , page 6 of H . R . 3849, that we are discussing, the requirement that such equipment be designed to meet
more than 40 percent of the total heating needs, including domestic
hot water, of the type of structure for wThich i t is intended, or substantially all of the needs of such a structure for domestic hot water,
where its remaining heating needs are met by other methods, rules
out completely any financial assistance to homeowyners as proposed by
H . R . 3849, f o r 70 percent of a l l of the residential heating and domestic
hot water installations throughout New England. W e believe that this
is a serious deficiency inherent i n the act as now w r i t t e n ; f o r i n New
E n g l a n d w i t h its existing 2,430,000 o i l heating installations and its
890,000 gas central h e a t i n g installations, the real opportunity f o r
solar energy i n the f o r m of an adjunct heating producing apparatus
is readily available. T o rule out this vast retrofit market is not rational. I n the opinion of this institute, financial assistance f o r the
retrofit market w i l l be more productive immediately, than f o r the
new home market.
The retrofit market, especially for domestic hot water, is the real,
present, immediately available opportunity and one that can be effective i n quantity much sooner. O i l and gas and electric domestic hot
water use is especially adaptable to adjunct solar heat generators, can
be easily installed by independent dealers. This opportunity simply
must go, cannot, be missed. Under no circumstances should financial
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assistance be denied to this vast immediate market by restricting such
assistance t o the now heavily depressed new home market.
M r . MOORHEAD. M r . DeBlois, I am a f r a i d I am going to have to ask
you to sum up and give us the recommendations that you have at the
end because i t would not be f a i r to the other members of the panel
i f you had a l l of the time.
The time factor today is a problem that we d i d not anticipate. I am
sorry.
M r . D E B L O I S . I understand this.
I f we can skip to the last page of the testimony. The points t h a t we
suggest are technical points basically, to the act as i t has been recommended. A n d that is that the 40 percent requirement t h a t is i n section
3(a) (1) ( A ) be reduced f o r the inclusion of that 70 percent of the
homes i n New E n g l a n d t h a t I mentioned to 25 percent or possibly to
as low as 20 percent w i t h q u a l i f y i n g dollar amounts to meet such lower
requirements. I t h i n k we have already made this point.
Second, that the act include provisions f o r retrofit installations
which provide, i n our opinion, certainly the most immediate and the
most readily available and the largest volume of benefits immediately.
T h i r d , that the act include provisions to provide f o r qualified
installations as well as qualified equipment. W e believe this is—you
can take the greatest piece of equipment i n the w o r l d and, i f you
massacre i t , installing i t or p u t t i n g i t i n incorrectly, of course, the
benefits are immediately r i g h t out the window.
F o u r t h , that the act include i n its purpose and thrust f o r decreasing
the national dependence on imported petroleum products.
A n d , f i f t h , that the act include, i f at a l l possible, some type of financial assistance f o r small business installers, who, unfortunately, are
going to bear the brunt of the sales certainly i n the northeastern
section of the country.
T h a n k you, M r . Chairman. I am sorry I took too much time.
M r . MOORHEAD. T h a n k you, M r . DeBlois. W e particularly appreciate
specific recommendations as you have i n your testimony.
[ T h e prepared statement of M r . DeBlois f o l l o w s : ]
P R E P A R E D S T A T E M E N T OF R O B E R T D E B L O I S , E X E C U T I V E V I C E P R E S I D E N T , D E B L O I S
O I L C O . , P A W T U C K E T , R . I . , O N B E H A L F OF T H E N E W E N G L A N D F U E L I N S T I T U T E
M y name is Robert DeBlois. I a m E x e c u t i v e Vice President of the D e B l o i s O i l
Company i n P a w t u c k e t , Rhode Island. Our o i l company has been a f a m i l y business, n o w i n the second generation. W e are a sizeable d i s t r i b u t o r a n d i n s t a l l e r
of home h e a t i n g o i l a n d o i l fired h e a t i n g equipment t h r o u g h o u t Rhode I s l a n d
and southeastern Massachusetts. W e also service t h i s o i l fired h e a t i n g a n d
domestic h o t w a t e r heating equipment.
T o d a y I represent the N e w E n g l a n d F u e l I n s t i t u t e of w h i c h I a m past president a n d past c h a i r m a n of i t s board. I a m presently c h a i r m a n of i t s Finance
Committee a n d also c h a i r m a n of i t s A p p l i e d Solar Energy E q u i p m e n t Committee.
Accompanying me is Charles H . B u r k h a r d t , E x e c u t i v e Vice President a n d
M a n a g i n g D i r e c t o r of t h e I n s t i t u t e w h o is here to answer any questions posed
by members of the Committee.
T h e N e w E n g l a n d F u e l I n s t i t u t e is an association of about 1300 independent
r e t a i l a n d wholesale h e a t i n g o i l and o i l h e a t i n g equipment d i s t r i b u t o r s a n d
i n s t a l l e r s t h r o u g h o u t the six state region. T h i s association was i n c o r p o r a t e d
under the l a w s of the Commonwealth of Massachusetts i n 1943, as the O i l H e a t
I n s t i t u t e of N e w England. Our corporate name was changed to N e w E n g l a n d
F u e l I n s t i t u t e i n 1962.
T h e independent sector of t h e home h e a t i n g o i l i n d u s t r y i n N e w E n g l a n d
sells more t h a n 85% of a l l d i s t i l l a t e p r o d u c t a t r e t a i l . I n a d d i t i o n , 4 0 % of the
59
f u e l o i l sold at the wholesale level is marketed by independents. F u r t h e r , 19.4%
of a l l the o i l heating equipment sold throughout the United States is installed
i n New England homes and buildings. Over 90% of this large q u a n t i t y of o i l
heating equipment and accessories are sold, installed and serviced by these
independent heating o i l dealer-distributors. About 125,000 to 140,000 o i l burners
are sold and installed i n New England every year. Most of these are replacements. We usually average somewhere between 38,000 to 40,000 oil burners as
new installations. These can be conversions f r o m other fuels or installations i n
newly b u i l t homes.
There are 2,430,000 o i l burner units operating i n New England at the present
t i m e ; about 890,000 central gas heating units and about 275,000 dwelling units
u t i l i z i n g electricity f o r heating. Gas and electricity combined account f o r about
1,165,000 centrally heated units, while oil has slightly over 2,400,000. Unlike
most gas and electric utilities, the r e t a i l oil heating dealer-distributor sells and
installs heating equipment and accessories a n d / o r newer replacement equipment, himself. W i t h a present market of over 2,430,000 o i l heating customers,
i t is obvious t h a t a built-in, practical and effective merchandising, marketing,
engineering, i n s t a l l a t i o n and service mechanism exists on a broad scale i n New
England f o r any heating procedure a n d / o r process to w h i c h the independent
segment of the o i l heating i n d u s t r y w o u l d apply itself. T h i s especially applies
to retrofit installations wherever solar energy equipment w o u l d be added to an
existing heating installation.
Therefore, we believe t h a t the heating oil, dealer-distributor apparatus i n
New England is ideally endowed w i t h a l l of the experience, technical skills,
processes and procedures necessary f o r a mass introduction to the New England
market, of solar heat generating equipment as an adjunct to existing or proposed oil heating systems or f o r t h a t matter, gas or electric residential heating
systems.
There is a strong potential f o r New England to achieve some independence
f r o m foreign energy imports i f solar energy was to be used on any large scale
i n conjunction w i t h oil as a source of energy f o r home heating and f o r domestic
hot water production. Solar heating w o u l d be a practical way to reduce New
England's dependence on imported, refined products, specifically distillate and
residual, and yet provide a means of sustaining the livelihood of the more t h a n
2,000 r e t a i l small business, heating oil dealers and distributors of the area who
provide jobs f o r w e l l over 35,000 people.
Since the New England climate is such as to have many periods w i t h o u t sunshine w i t h extremely cold winters, i t is our considered opinion t h a t solar energy
could supply, theoretically, i n an o i l heated home, up to about 35% of the t o t a l
heat required. More practically, this w i l l evolve to about 28% to 30%. Thus,
t h r o u g h the application of solar energy as an adjunct to oil heat, many more
people could enjoy the benefit, comfort, virtues and service of oil heat w i t h o u t
substantially increasing or more practically, even decreasing, New England's
dependence upon imported, refined product.
Research on the p a r t of this I n s t i t u t e shows t h a t i t is feasible f o r adjunct
solar heating equipment to be installed w i t h presently operating o i l heated
equipment i n 71% of the 2,430,000 o i l heating installations now existing i n New
England. This means we have a practical potential of 1,600,000 adjunct solar
heating installations.
Under Section 3, ( a ) , ( 1 ) , ( A ) , Page 6 of H R 3849, t h a t we are discussing,
the requirement t h a t such equipment be designed to meet more t h a n 40% of
the t o t a l heating needs (including domestic hot w a t e r ) of the type of structure
f o r w h i c h i t is intended, or substantially a l l of the needs of such a structure
f o r domestic hot w a t e r (where its remaining heating needs are met by other
methods) . . . rules out completely any financial assistance to homeowners as
proposed by H R 3849, f o r 70% of a l l of the residential heating and domestic
hot water installations throughout New England. We believe t h a t this is a
serious deficiency inherent i n the act as now w r i t t e n ; f o r i n New England w i t h
its existing 2,430,000 o i l heating installations and its 890,000 gas central heating
installations, the real opportunity f o r solar energy i n the f o r m of an adjunct
heating producing apparatus is readily available. To rule out this vast retrofit
market is not rational. I n the oninion of this I n s t i t u t e , financial assistance f o r
tbe retrofit market w i l l be more productive immediately, then f o r the new
home market.
The retrofit market, especially f o r domestic hot water, is the real, present,
immediately available opportunity and one t h a t can be effective i n q u a n t i t y
60
m u c h sooner. O i l a n d gas a n d electric domestic h o t w a t e r use is especially adaptable t o a d j u n c t solar heat generators, can be easily i n s t a l l e d by independent
dealers. T h i s o p p o r t u n i t y s i m p l y m u s t not, cannot, be m i s s e d ! U n d e r no c i r c u m stances should financial assistance be denied t o t h i s vast i m m e d i a t e m a r k e t by
r e s t r i c t i n g such assistance to t h e n o w h e a v i l y depressed new home m a r k e t .
F u r t h e r m o r e , i t is t h e considered o p i n i o n of t h i s I n s t i t u t e a n d m a n y t e c h n i c a l
a u t h o r i t i e s w o r k i n g i n t h e field i n c l u d i n g professors of engineering, t h a t i t
w o u l d be v e r y d i f f i c u l t to produce h o t w a t e r of m o r e t h a n 120 degrees i n N e w
E n g l a n d by a n economically feasible system t h a t w o u l d n o t be p r i c e d o u t t h e
m a r k e t . F o r instance, a n a d j u n c t c o m b i n a t i o n o i l solar energy domestic h o t
w a t e r heater can be purchased a t a price r a n g i n g f r o m $625 t o $1800. A solar
home h e a t i n g system w o u l d cost f r o m $8,000 to $15,000 w i t h o u t any oil, gas or
electric h e a t i n g system backup. I t is w i t h a d j u n c t solar energy e q u i p m e n t t h a t
t h e r e a l o p p o r t u n i t y lies. I n N e w E n g l a n d i t easily becomes financially i m p r a c t i c a l t o produce heat by solar energy as the system r e q u i r e d i s so l a r g e a n d
complex a n d requires so m u c h a u x i l i a r y collecting equipment t h a t i t c o u l d app r o a c h one-half t h e t o t a l cost of t h e d w e l l i n g .
T h e r e f o r e , t h e 4 0 % l i m i t a t i o n as noted i n the act should be, f o r t h e N e w
E n g l a n d area, a n d f o r a d j u n c t solar systems t h a t can be a l l i e d or a t t a c h e d t o
oil, gas or electric h e a t i n g systems, reduced t o 20%. T h e 4 0 % figure is selfd e f e a t i n g i f energy conservation is a p r i m e consideration. T h i s h i g h figure w i l l
o n l y r e s u l t i n c o n t i n u i n g the n a t i o n ' s dependence on f o r e i g n oil.
N E F I w i l l soon h a v e three a d j u n c t domestic h o t w a t e r solar energy-oil systems i n s t a l l e d i n three homes i n Rhode I s l a n d . W e w i l l s t u d y t h e i r o p e r a t i o n
a n d m e t h o d of i n s t a l l a t i o n , a n d become appraised of such m a i n t e n a n c e as is
r e q u i r e d . F o l l o w i n g on this, t h e r e w i l l be f o u r a d j u n c t solar energy domestic
h o t w a t e r generators, coupled w i t h o i l h e a t i n g equipment, i n s t a l l e d i n Connecticut. Subsequently, a c o m b i n a t i o n solar generator-oil home h e a t i n g a n d
domestic hot w a t e r system w i l l be i n s t a l l e d i n a o n e - f a m i l y home i n the general
area of H a n o v e r , N e w H a m p s h i r e . W e w i l l , i n t h i s w a y , be t e s t i n g eight d i f f e r e n t
types a n d / o r k i n d s of solar heat generators coupled w i t h o i l a t the same time.
These u n i t s w h i c h range i n cost, as has been noted above, f o r t h e equipment
a t the present t i m e , f r o m $625 per u n i t t o $1800. T h e y w o u l d reduce h e a t i n g
o i l c o n s u m p t i o n f o r domestic h o t w a t e r by about 28 to 30%. T h i s t y p e of ins t a l l a t i o n should be i n c l u d e d i n the financial assistance t h a t t h e proposed H R
3849 w o u l d provide.
W h i l e H R 3849 provides assistance f o r the home buyer a n d b u i l d e r , i t does
n o t q u i t e face u p to another p r o b l e m t h a t is v e r y i m p o r t a n t to s m a l l businessmen
w h o m a k e t h e g r e a t m a j o r i t y of r e s i d e n t i a l h e a t i n g a n d domestic h o t w a t e r
i n s t a l l a t i o n s t h r o u g h o u t the U.S. F o r a n y one of the 2400 r e t a i l h e a t i n g o i l a n d
o i l h e a t i n g equipment d i s t r i b u t o r s t h r o u g h o u t N e w E n g l a n d or the U.S. f o r t h a t
m a t t e r , t o i n v e n t o r y a single w e l l made efficient o i l b u r n e r , costs $50. T o invent o r y a n a d j u n c t solar energy equipment domestic h o t w a t e r generator r u n s f r o m
$600 t o $1800. Q u i t e an increased c a p i t a l demand f o r a s m a l l o i l h e a t i n g equipm e n t dealer a n d i n s t a l l e r .
F r o m t h i s , i t can be c l e a r l y seen t h a t the c a p i t a l demand f o r i n v e n t o r y i n g
solar energy equipment w i l l be enormous a n d m a n y t i m e s t h a t f o r c o n v e n t i o n a l
oil, gas or electric equipment. W h a t w i l l be done to help these s m a l l businessmen
w h o t h r o u g h t h e i r sales, i n s t a l l a t i o n a n d service departments p r o v i d e t h e i d e a l
o u t l e t f o r t h e r e s i d e n t i a l i n s t a l l a t i o n of solar h e a t i n g equipment? I t i s n o t j u s t
financial
help to homeowners a n d / o r b u i l d e r s t h a t w i l l p r o v i d e the necessary
p r a c t i c a l i m p e t u s t o m a k e solar h e a t i n g a w o r k i n g f a c t o r i n conserving energy
a n d r e d u c i n g dependence on e x i s t i n g fuels. I t is financial assistance t o t h e
r e t r o f i t m a r k e t t h a t w i l l be most r e a d i l y effective.
Also, w h i l e H R 3849 c l e a r l y defines t h a t q u a l i f i e d solar h e a t i n g equipment
m u s t be used, w h a t does i t say t o i n s u r e the t e c h n i c a l s k i l l a n d q u a l i f i c a t i o n s
f o r t h e i n s t a l l a t i o n a n d maintenance of t h a t equipment? T h e finest a n d most
q u a l i f i e d piece of solar h e a t i n g equipment can r e s u l t i n being ineffective because
of i m p r o p e r i n s t a l l a t i o n a n d o r i e n t a t i o n . T h e g r a n t i n g of tens of thousands of
l o w interest, l o n g t e r m loans to homeowners a n d b u i l d e r s f o r solar h e a t i n g
equipment w i l l encourage m a n y unscrupulous, even " f l y by n i g h t " operators t o
come i n t o business. W e w i l l see m a n y abuses, some financial tragedies a n d general
d i s i l l u s i o n m e n t , w i t h w h a t can be the most massive energy o p p o r t u n i t y f o r
A m e r i c a since t h e discovery a n d development of nuclear fission. T h e t e c h n i c a l
q u a l i f i c a t i o n s of those m a k i n g field i n s t a l l a t i o n s a n d a p p l i c a t i o n s of solar heat-
61
i n g equipment are going to have to be standardized a n d consistently policed so
t h a t t h i s entire concept w i l l be productive and not f r u s t r a t e d . I t is here t h a t the
independent h e a t i n g o i l i n s t a l l e r w i l l be most qualified a n d have the most to
offer.
I t is not only necessary to establish a mechanism or procedure, or both, f o r
the inspection and e v a l u a t i o n of each t y p e or model of solar h e a t i n g equipment,
i n a d d i t i o n there must be a substantial mechanism and procedure f o r the inspection, e v a l u a t i o n and performance of the a c t u a l i n s t a l l a t i o n of such qualified
equipment. T h e finest equipment i n the w o r l d can be r u i n e d and rendered ineffect i v e by poor i n s t a l l a t i o n . I f t h i s is not recognized, the noble purpose of H . R . 3849
could be completely and q u i c k l y f r u s t r a t e d .
The i n s t a l l a t i o n of a d j u n c t solar energy domestic h o t w a t e r heaters backed
up by o i l fired equipment has, as noted above, a p o t e n t i a l m a r k e t i n N e w E n g l a n d
alone, of 1,600,000 installations. I f only one-fifth of these were achieved, i t w o u l d
result i n 320,000 a d j u n c t solar energy domestic hot w a t e r generators. T h a t is
where the o p p o r t u n i t y lies. F u r t h e r , t h i s number of i n s t a l l a t i o n s w o u l d reduce
by 5,000,000 barrels of d i s t i l l a t e oil, N e w England's a n n u a l i m p o r t a t i o n of 25,000,000 barrels of such product. A goal w o r t h shooting f o r — a 25% reduction of
our d i s t i l l a t e imports.
I n l i g h t of this, New E n g l a n d F u e l I n s t i t u t e recommends the f o l l o w i n g :
1. T h a t the 40% requirement i n Section 3 ( a ) , ( 1 ) , ( A ) , be reduced to
25% and possibly to 20% w i t h q u a l i f y i n g d o l l a r amounts to meet such lower
requirements.
2. T h a t the act include provisions f o r r e t r o f i t i n s t a l l a t i o n s w h i c h p r o v i d e the
most readily available a n d largest volume m a r k e t .
3. T h a t the act include provisions t o provide f o r qualified i n s t a l l a t i o n s as w e l l
as qualified equipment. One is useless w i t h o u t the other.
4. T h a t the act include i n i t s purpose a t h r u s t f o r decreasing the n a t i o n a l
dependence on imports.
5. T h a t the act include financial assistance f o r the s m a l l business installers
who w i l l bear the b r u n t of the sales, i n s t a l l a t i o n s and servicing of such solar
equipment as w e l l as the i n v e n t o r y i n g of i t s costly components and basic devices.
T h a n k you.
STATEMENT 0E SHELDON H. BUTT, PRESIDENT, SOLAR ENERGY
INDUSTRY ASSOCIATION
M r . B U T T . T h a n k you.
Basically, I agree w i t h much of what Congressman Ottinger and
Congressman Gude said, so I w i l l not go< over that. I t is i n the w r i t t e n
testimony.
There are a couple of points I would like to make.
F i r s t of all, I do believe that the percentage l i m i t a t i o n on domestic
hot water heating, which now calls f o r substantially all, should be
reduced to- 60 percent.
There are a couple of other points of a general nature. W e are concerned, all of us, w i t h the cost of various programs to the Treasury.
The direct loan or loan guarantee, which ever way i t turns out, w i l l
not necessarily have a permanent impact on the Treasury. Incentives,
which I believe are a needed part of any solar package, would have
great market impact but again, wTould not necessarily have permanent
impact on the Treasury since the need f o r them should be regarded as
temporary.
W h e n you t h i n k about replacing o i l and gas w i t h something for
home heating, the only two things that are available to* you are elect r i c i t y and solar.
Now, the impact on the Treasury of existing legislation, depreciation allowances and tax credits, of replacing oil and gas w i t h electricity
is greater than the impact of the incentives which the Solar Energy
62-322 O - 75 - 5
62
I n d u s t r y Association has recommended. So f r o m that p o i n t of view
of the t w o alternatives available, solar is a bargain.
H . R . 3849 has the effect, basically, of channeling capital funds i n t o
solar, which, obviously, means away f r o m something else. A g a i n , i n
comparison w i t h the electric alternative, the impact on t o t a l capital
requirements of a solar approach is less than an all-electric approach.
So that, again, I t h i n k , i n terms of the Nation's chronic capital shortage, solar is a bargain.
I t h i n k t h a t these are the points I want to make.
T h a n k you.
[ T h e prepared statement of M r . B u t t f o l l o w s : ]
63
TESTIMONY OF THE SOIAR ENERG^ INDUSTRIES ASSOCIATION
NOVEMBER 5 , 1975
TO THE SUBCOMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT OF THE
COMMITTEE ON BANKING, CURRENCY AND HOUSING
U. S. HOUSE OF REPRESENTATIVES
PRESENTED BY SHELDON H. BUTT, PRESIDENT OF THE
SOLAR ENERGY INDUSTRIES ASSOCIATION
Mr. Chairman, I want t o thank you f o r the o p p o r t u n i t y t o t e s t i f y b e f o r e y o u u p o n H . R . 3849 w h i c h w i l l p r o v i d e d i r e c t l o w i n t e r e s t
l o a n s t o a s s i s t homeowners and b u i l d e r s i n t h e p u r c h a s e and i n s t a l l a t i o n of s o l a r equipment.
I am t e s t i f y i n g on b e h a l f o f t h e S o l a r E n e r g y
Industries Association which i s a trade association comprising^approxim a t e l y 400 members, i n c l u d i n g m a n u f a c t u r e r s , a r c h i t e c t s , e n g i n e e r s , i n s t a l l a t i o n c o n t r a c t o r s and o t h e r s who a r e i n v o l v e d i n t h e s o l a r i n d u s tries.
The c e n t r a l p u r p o s e o f H . R . 3 8 4 9 , as w e l l as t h a t o f o t h e r
c o m p l e m e n t a r y p e n d i n g l e g i s l a t i o n , i s t o a c c e l e r a t e w i d e s p r e a d commerc i a l i z a t i o n o f s o l a r h e a t i n g and c o o l i n g so as t o r e d u c e demand f o r
scarce f o s s i l f u e l resources.
I n c o n s i d e r i n g t h i s l e g i s l a t i o n , we
should f i r s t address the f o l l o w i n g q u e s t i o n s :
1.
Is the l e g i s l a t i o n timely?
I s t e c h n i c a l l y and economi c a l l y v i a b l e s o l a r equipment a v a i l a b l e or becoming a v a i l a b l e w h i c h
c o u l d b e i n s t a l l e d as t h e r e s u l t o f t h e p a s s a g e o f H . R . 3849 and o t h e r
Governmental a c t i o n ?
2.
I s s u c h l e g i s l a t i o n needed?
I s l e g i s l a t i o n s u c h as
H . R . 3849 r e q u i r e d t o a c c e l e r a t e c o m m e r c i a l i z a t i o n o f s o l a r e n e r g y t o
reach n a t i o n a l goals?
F o r how l o n g ?
3.
The e f f e c t o f H . R . 3849 w i l l be t o c h a n n e l c a p i t a l r e sources i n t o s o l a r i n s t a l l a t i o n s .
How does i n v e s t m e n t i n s o l a r e q u i p ment compare t o i n v e s t m e n t i n o t h e r a l t e r n a t i v e e n e r g y s o u r c e s as a
means o f r e d u c i n g c o n s u m p t i o n o f s c a r c e e n e r g y r e s o u r c e s ?
4.
What r e s u l t s
( f u e l savings)
may we a n t i c i p a t e ?
64
SUMMARY
1.
Timeliness;
S o l a r space h e a t i n g and h o t w a t e r h e a t i n g
e q u i p m e n t i s b e i n g p r o d u c e d , s o l d and i n s t a l l e d t o d a y w h i c h i s t e c h n i c a l l y sound.
As d e t a i l e d l a t e r i n t h i s t e s t i m o n y , c u m u l a t i v e s a v i n g s
i n the cost of c o n v e n t i o n a l energy r e s u l t i n g from a s o l a r i n s t a l l a t i o n
become e q u a l t o t h e f i r s t c o s t o f t h e i n s t a l l a t i o n i n a r e l a t i v e l y few
years.
I n t h e t y p i c a l cases p r e s e n t e d , s a v i n g s p a y - o u t t i m e r a n g e s
f r o m 5 t o 9 y e a r s when t h e s o l a r i n s t a l l a t i o n r e p l a c e s e l e c t r i c e n e r g y ;
7 t o 12 y e a r s when f u e l o i l i s r e p l a c e d ; and 12 t o 15 y e a r s when s t i l l
l o w c o s t n a t u r a l gas i s r e p l a c e d .
Equally c o s t - e f f e c t i v e solar cooling
e q u i p m e n t i s n o t now a v a i l a b l e .
E n g i n e e r i n g d e v e l o p m e n t now i n p r o g r e s s
p r o m i s e s a v a i l a b i l i t y i n a b o u t two y e a r s .
2.
Need: H i g h i n t e r e s t r a t e s p a i d b y c o n s u m e r s , b u i l d e r s
and o t h e r s s t r e t c h o u t t h e t i m e r e q u i r e d t o pay b a c k a l o a n used t o
purchase s o l a r equipment f r o m f u e l c o s t savings s u b s t a n t i a l l y .
The
a d d i t i o n a l funds r e q u i r e d t o f i n a n c e t h e purchase o f a s o l a r system
may n o t be a v a i l a b l e t o t h e b u y e r .
A l t h o u g h t h e number o f s o l a r i n s t a l l a t i o n s b e i n g made i s g r o w i n g r a p i d l y , most consumers s t i l l v i e w s o l a r
i n s t a l l a t i o n s as " n e w " and t h e r e f o r e , somewhat r i s k y .
These f a c t o r s
combine t o s e v e r e l y r e s t r i c t consumer a c c e p t a n c e o f s o l a r e n e r g y a t t h e
present time.
I t i s expected t h a t the p r i c e o f " c o n v e n t i o n a l " energy
f o r m s w i l l c o n t i n u e t o e s c a l a t e more r a p i d l y t h a n t h e g e n e r a l r a t e o f
inflation.
C o n v e r s e l y , i t i s e x p e c t e d t h a t , as t h e volume o f s o l a r
equipment produced i n c r e a s e s , i t s " c o n s t a n t d o l l a r " cost w i l l decrease.
I n c r e a s i n g f a m i l i a r i t y w i t h s o l a r equipment w i l l reduce the p e r c e i v e d
risk.
T h i s a p p l i e s b o t h t o t h e u s e r and t o t h e l e n d e r .
The need f o r
l e g i s l a t i o n such as H.R. 3 8 4 9 , as w e l l as o t h e r l e g i s l a t i o n , i n t e n d e d
t o a c c e l e r a t e c o m m e r c i a l i z a t i o n o f s o l a r e n e r g y w i l l d i m i n i s h and u l t i mately disappear.
The t e n y e a r t e r m i n c o r p o r a t e d i n H . R . 3849 i s a d e quate.
3.
Capital Cost-Effectiveness:
The c a p i t a l c o s t o f s o l a r
e q u i p m e n t r e q u i r e d t o r e p l a c e one b a r r e l o f c r u d e o i l i s l e s s t h a n t h e
c a p i t a l c o s t o f e l e c t r i c g e n e r a t i n g p l a n t c a p a c i t y w i t h t h e same c a p a bility.
I f the energy storage c a p a b i l i t y i n t e g r a l t o the s o l a r e q u i p ment i s managed so t h a t s u p p l e m e n t a r y e l e c t r i c e n e r g y i s r e q u i r e d o n l y
d u r i n g " o f f peak" hours, the c a p i t a l c o s t o f the combination s o l a r - o f f
peak e l e c t r i c a l t e r n a t i v e s i s f a r l e s s t h a n t h a t o f t h e a l l e l e c t r i c
alternative.
4.
Results:
B a s i c a l l y , we v i e w t h e t a s k o f m a k i n g " l o w c o s t "
money a v a i l a b l e t o s o l a r u s e r s as a n e s s e n t i a l p a r t o f a c o m p r e h e n s i v e
s o l a r program.
The c o m p r e h e n s i v e p r o g r a m p r o p o s e d b y S . E . I . A . i s d e t a i l e d i n the attached e x h i b i t .
We b e l i e v e t h a t i m p l e m e n t a t i o n o f t h e
comprehensive program would r e s u l t i n annual savings of 1,000,000 b a r r e l s
o f c r u d e o i l p e r day w i t h i n t e n y e a r s .
Rapid growth would c o n t i n u e
thereafter.
65
DETAILS
1.
Timeliness
a.
Technical Status
o f S o l a r H e a t i n g and
Cooling
The b a s i c t e c h n o l o g y used i n s o l a r h e a t i n g and c o o l i n g i s q u i t e
simple.
A f l a t p l a t e c o l l e c t o r i s heated by s u n l i g h t .
The e n e r g y c o l l e c t e d as h e a t i s removed b y a h e a t t r a n s f e r f l u i d w h i c h c a n be e i t h e r a
l i q u i d or a i r .
The h e a t i s t h e n e i t h e r d e l i v e r e d t o t h e l o a d o r s t o r e d
f o r f u t u r e use o r , i n t h e case o f s o l a r a i r - c o n d i t i o n i n g , used t o power
absorption a i r - c o n d i t i o n i n g apparatus.
The o n l y u n i q u e component o f
such a system i s t h e c o l l e c t o r i t s e l f .
The p i p i n g ( o r d u c t w o r k ) used
t o t r a n s p o r t heated f l u i d from the c o l l e c t o r i s c o n v e n t i o n a l , convent i o n a l pumps, f a n s and c o n t r o l s a r e u s e d .
Insulated tanks c o n t a i n i n g
h o t w a t e r o r i n s u l a t e d b i n s o f h o t r o c k s a r e used as e n e r g y s t o r a g e .
C o n v e n t i o n a l h e a t e x c h a n g e r s may be u s e d t o t r a n s f e r e n e r g y i n t o and o u t
of storage.
S i m p l i f i e d d i a g r a m s o f t y p i c a l s o l a r s y s t e m s a r e shown i n
F i g u r e s 1 and 2 .
The c o l l e c t o r c o n s i s t s o f a f l a t a b s o r b e r p l a t e .
Generally,
t h i s i s a f l a t m e t a l p l a t e w i t h a n a b s o r p t i v e s u r f a c e w h i c h may be f l a t
b l a c k p a i n t o r , i n some d e v i c e s , a " s e l e c t i v e " s u r f a c e .
Characterist i c a l l y , the back o f the absorber p l a t e i s i n s u l a t e d t o reduce heat
losses.
One o r t w o l a y e r s o f g l a s s o r t r a n s p a r e n t p l a s t i c a r e mounted
i n f r o n t o f t h e a b s o r b i n g s u r f a c e t o r e d u c e c o n v e c t i o n , c o n d u c t i o n and
r a d i a t i o n l o s s e s and t o p r o v i d e a " g r e e n h o u s e e f f e c t . "
The b a s i c e n g i neering p r i n c i p l e s are very simple.
As i n t h e c a s e o f o t h e r s i m p l e e n g i n e e r i n g c o n c e p t s , c o n s i d e r a b l e d e t a i l e d e n g i n e e r i n g e f f o r t goes i n t o b a l a n c i n g and o p t i m i z i n g t h e
v a r i o u s components o f t h e s y s t e m .
C o n t i n u i n g e n g i n e e r i n g development
c a n and w i l l l e a d t o i m p r o v e m e n t s i n e f f i c i e n c y and r e d u c t i o n i n t h e
cost o f s o l a r systems.
As t h e i n d u s t r y g r o w s , we a r e c o n f i d e n t t h a t t h e
m a g n i t u d e and scope o f t h e s e e f f o r t s w i l l g r o w .
Government a s s i s t a n c e
t o a c c e l e r a t e t h e pace o f t h e s e developments i s a p a r t o f S . E . I . A . ' s
comprehensive s o l a r program.
Solar cooling is also t e c h n i c a l l y p r a c t i c a l today.
I t is not
economically v i a b l e .
Heat d r i v e n a b s o r p t i o n a i r - c o n d i t i o n i n g a p p a r a t u s
now a v a i l a b l e i s d e s i g n e d f o r r e l a t i v e l y h i g h i n p u t t e m p e r a t u r e s c o n s i s t e n t w i t h t h e use o f steam " f i r i n g . "
At these temperatures, p r e s e n t l y a v a i l a b l e f l a t p l a t e c o l l e c t o r s lose e f f i c i e n c y w h i l e , i f the
e x i s t i n g a b s o r p t i o n a i r - c o n d i t i o n i n g equipment i s operated a t lower
t e m p e r a t u r e s , c a p a c i t y and e f f i c i e n c y a r e l o s t .
Engineering development i s needed a n d i s now u n d e r w a y t o d e s i g n a b s o r p t i o n c o o l i n g e q u i p ment a d a p t e d f o r l o w e r e n e r g y i n p u t t e m p e r a t u r e s as w e l l as t o p r o d u c e
c o l l e c t o r s which w i l l operate e f f i c i e n t l y a t higher temperatures.
Progress i s encouraging.
The s t a n d a r d s r e q u i r e d t o i m p l e m e n t H . R . 3849 a r e c u r r e n t l y
b e i n g p r e p a r e d b y t h e N a t i o n a l B u r e a u o f S t a n d a r d s and i n t e r i m s t a n d a r d s s h o u l d be a v a i l a b l e e a r l y n e x t s p r i n g .
Longer t e r m , i n d u s t r y i s
66
engaged i n t h e development o f permanent s t a n d a r d s t h r o u g h t h e N a t i o n ' s
v o l u n t a r y standards o r g a n i z a t i o n s .
We e x p e c t t h a t much o f t h e s o l a r
e q u i p m e n t now b e i n g m a n u f a c t u r e d , m a r k e t e d and i n s t a l l e d w i l l meet
t h e s e s t a n d a r d s when t h e y a r e i s s u e d .
b.
Economic S t a t u s
of Solar
Heating
We have p r e p a r e d a s e r i e s o f l i f e c y c l e c o s t a n a l y s e s o f " t y p i c a l " residential solar installations.
These a r e based upon c u r r e n t l y
a v a i l a b l e " s t a t e o f t h e a r t " s o l a r e q u i p m e n t and do n o t t a k e c r e d i t f o r
expected improvements i n e f f i c i e n c y or f u t u r e c o s t r e d u c t i o n .
Analyses
a r e p r e s e n t e d f o r i n s t a l l a t i o n s i n B o s t o n and i n Los A n g e l e s .
Boston
was s e l e c t e d as r e p r e s e n t a t i v e o f a r e a s i n w h i c h c l i m a t i c c o n d i t i o n s a r e
r e l a t i v e l y u n f a v o r a b l e t o s o l a r e n e r g y w h i l e Los A n g e l e s r e p r e s e n t s a r e a s
i n which r e l a t i v e l y favorable conditions e x i s t .
B o s t o n a r e a s t u d i e s w e r e b a s e d on $ . 0 3 5 p e r KWH e l e c t r i c c o s t
and $ . 4 5 p e r g a l l o n f u e l o i l c o s t s .
Los A n g e l e s s t u d i e s w e r e b a s e d u p o n
$ . 0 3 p e r KWH e l e c t r i c c o s t , $ . 4 0 p e r g a l l o n f u e l o i l c o s t and $ 1 . 5 0 p e r
MCF f o r n a t u r a l g a s .
We assumed 7 - 1 / 2 % p e r y e a r e s c a l a t i o n i n e l e c t r i c i t y c o s t s (5% g e n e r a l i n f l a t i o n + 2-1/2%.) a n d 107o p e r y e a r e s c a l a t i o n i n
o i l and n a t u r a l g a s .
We e s t i m a t e d o v e r a l l c o n v e r s i o n e f f i c i e n c y f r o m
o i l t o u s e f u l h e a t a t 55% and f r o m gas a t 60% ( p e r c e n t o f t o t a l h e a t i n g
value of the f u e l d e l i v e r e d to the l o a d ) .
C a l c u l a t i o n s made on t h i s
b a s i s a r e s u m m a r i z e d i n T a b l e I and p r e s e n t e d g r a p h i c a l l y i n F i g u r e s 3 ,
4 and 5 .
I t w i l l be s e e n t h a t , i n t h e B o s t o n a r e a , t h e p a y - o u t t i m e when
s o l a r energy replaces e l e c t r i c i t y ranges from 6.4 t o 9.8 years depending
u p o n t h e t y p e o f i n s t a l l a t i o n and t h e p r o p o r t i o n o f t h e l o a d c a r r i e d b y
the solar i n s t a l l a t i o n .
I n Los A n g e l e s , e x p e c t e d r e s u l t s a r e somewhat
more f a v o r a b l e ; t h e r a n g e b e i n g f r o m 5 . 2 t o 6 . 8 y e a r s .
Since f u e l o i l
as a s o u r c e o f h e a t i s l e s s c o s t l y t h a n e l e c t r i c i t y , r e s u l t s a r e l e s s
f a v o r a b l e when f u e l o i l i s r e p l a c e d b y s o l a r , t h e p a y - o u t t i m e i n t h e
B o s t o n a r e a r a n g i n g f r o m 9 . 1 t o 1 1 . 6 y e a r s and i n t h e L o s A n g e l e s a r e a
from 7.4 t o 11.3 y e a r s .
To t h e e x t e n t t h a t r e l a t i v e l y l o w c o s t n a t u r a l
gas i s a v a i l a b l e , t h e t i m e r e q u i r e d t o p a y - o u t t h e s o l a r i n v e s t m e n t i n c r e a s e s s u b s t a n t i a l l y , t h e r a n g e i n t h e Los A n g e l e s a r e a b e i n g 1 2 . 0 t o
14.5 years.
c.
Nationwide Applications
for
Solar
A l t h o u g h p a y - o u t t i m e f o r a s o l a r i n s t a l l a t i o n i n Los A n g e l e s
i s somewhat l e s s t h a n i n B o s t o n , t h e d i f f e r e n c e s a r e r e l a t i v e l y s m a l l ,
p a r t i c u l a r l y so c o n s i d e r i n g t h e c l i m a t i c d i f f e r e n c e s .
One r e a s o n f o r
t h i s r e s u l t i s t h a t " c o n v e n t i o n a l " e n e r g y c o s t s t e n d t o be h i g h e r i n
t h e N o r t h e a s t t h a n e l s e w h e r e i n t h e U. S.
Another reason i s t h a t , popul a r b e l i e f t o the c o n t r a r y , the d i f f e r e n c e s i n a v a i l a b l e sunshine, part i c u l a r l y as r e l a t e d t o s e a s o n a l l o a d p r o f i l e , a r e n o t o v e r w h e l m i n g l y
great.
F i n a l l y , and most i m p o r t a n t l y , s i n c e s o l a r s y s t e m e f f i c i e n c y
v a r i e s w i t h the p e r c e n t a g e o f load c a r r i e d , a system i n Boston can c a r r y
a s m a l l e r p e r c e n t a g e o f l o a d as e f f i c i e n t l y as a s y s t e m i n Los A n g e l e s
can c a r r y a l a r g e r percentage o f l o a d .
This is i l l u s t r a t e d in Figure 6
which p l o t s u s e f u l heat p r o d u c t i o n per square f o o t of standard c o l l e c t o r
67
a g a i n s t p e r c e n t o f l o a d c a r r i e d f o r Los A n g e l e s and B o s t o n i n w a t e r
heater applications.
F o r e x a m p l e , p r o d u c t i v i t y i n B o s t o n i s t h e same
a t t h e 50% l o a d l e v e l as i n Los A n g e l e s a t 85% o f l o a d .
c.
Required Size of the Solar
Installation
As now w r i t t e n , H . R . 3849 r e q u i r e s t h a t e l i g i b l e s y s t e m s must
be d e s i g n e d t o meet a t l e a s t 40%, o f t o t a l h e a t i n g needs and " s u b s t a n t i a l l y a l l " o f t h e needs f o r d o m e s t i c h o t w a t e r .
The 40% minimum r e l a t e d t o h e a t i n g needs i s p r a c t i c a l .
The r e q u i r e m e n t t h a t h o t w a t e r
s y s t e m s meet " s u b s t a n t i a l l y a l l " o f t h e d o m e s t i c h o t w a t e r needs i s n o t .
I f t h i s p r o v i s i o n w e r e r i g o r o u s l y i n t e r p r e t e d , no e c o n o m i c a l l y v i a b l e
h o t w a t e r h e a t i n g s y s t e m w o u l d be a b l e t o q u a l i f y .
I t i s recommended
t h a t s o l a r h o t w a t e r h e a t i n g s y s t e m s be r e q u i r e d t o meet 60% o f t h e r e quirement f o r hot water.
2.
Need
The p a y - o u t t i m e s q u o t e d i n t h e p r e c e d i n g s e c t i o n w e r e d e r i v e d
by comparing c u m u l a t i v e savings w i t h f i r s t c o s t .
I f i t i s assumed t h a t
t h e system i s purchased w i t h borrowed f u n d s , i n t e r e s t payments s t r e t c h
out the time r e q u i r e d t o amortize the investment i n solar f a c i l i t i e s .
As a n e x a m p l e , l e t us c o n s i d e r t h e r e l a t i v e l y f a v o r a b l e case
o f a homeowner i n Los A n g e l e s who p u r c h a s e s a s o l a r h e a t i n g and h o t
w a t e r s y s t e m t o r e p l a c e an a l l e l e c t r i c s y s t e m and d e s i g n e d t o c a r r y
60% o f t h e t o t a l l o a d .
Based on T a b l e I , t h e p a y - o u t t i m e i s 6 . 8 y e a r s .
I f he makes t h i s p u r c h a s e w i t h a 25% down payment and a n 8 y e a r l o a n a t
12% i n t e r e s t , h i s c a s h f l o w p o s i t i o n i s as f o l l o w s :
Payment
1
2
3
4
5
6
7
8
9
10
11
12
13
Payment
Savings
$1687.50
1017.56
1017.56
1017.56
1017.56
1017.56
1017.56
1017.56
1017.56.
0
0
0
0
0
$ 492.00
528.90
568.56
611.21
657.07
706.32
759.30
816.23
877.48
921.37
990.45
1064,74
1144.59
Cash Out F l o w
Cumulative
Year
$ 525.56
488.66
449.00
406.35
360.49
311.24
258.26
201.33
- 877.48
- 921.37
- 990.45
-1064.74
-1144.59
$1687.50
2213.06
2701.72
3150.72
3557.07
3917.56
4228.80
4487.06
4688.39
3810.91
2889.54
1899.09
834.35
- 310.24
T h u s , t h e consumer does n o t " b r e a k e v e n " on a c a s h b a s i s u n t i l
the t h i r t e e n t h year.
The a v a i l a b i l i t y o f a l o a n a t 7% m a t e r i a l l y changes
t h e p i c t u r e as f o l l o w s :
68
Payment
1
2
3
4
5
6
7
8
9
10
11
12
Payment
Savings
$1687.50
845.44
845.44
845.44
845.44
845.44
845.44
845.44
845.44
0
0
0
0
$ 492.00
528.90
568.56
611.21
657.07
706.32
759.30
816.23
877.48
921.37
990.45
1064.74
Cash Out
Year
$ 353.44
316.54
276.88
234.23
188.37
139.12
86.14
29.21
- 877.48
- 921.37
- 990.45
-1064.74
Flow
Cumulative
$1687.50
2040.94
2357.48
2634.36
2868.59
3056.96
3196.08
3282.22
3311.43
2433.95
1512.58
522.13
- 542.61
" B r e a k e v e n " comes a y e a r e a r l i e r .
More i m p o r t a n t l y , t h e maximum cumul a t i v e n e t o u t l a y i s 30% l e s s t h a n i n t h e c a s e o f t h e 12% l o a n .
Consumer r e p o n s e w i l l s t i l l t e n d t o b e somewhat s l u g g i s h s i n c e
c a s h o u t - f l o w s ( a f t e r t h e down p a y m e n t ) a r e s t i l l s u b s t a n t i a l , p a r t i c u l a r l y i n the e a r l i e r years.
I n e f f e c t , the consumer's loan payments,
e v e n w i t h a 7% l o a n , a r e g r e a t e r t h a n h i s e l e c t r i c i t y c o s t s a v i n g s .
Alt h o u g h h e l p w i t h i n t e r e s t c o s t s i s i m p o r t a n t and t h e l o a n p r o g r a m has
f
other advantages, the tax c r e d i t s c a l l e d f o r i n S . E . I . A . s program are
r e q u i r e d i n order to present a r e a l l y a t t r a c t i v e prospect to the consumer.
We h a v e recommended a 40% c r e d i t on t h e f i r s t $ 2 , 0 0 0 and 25% o n
the next $6,000.
I n o u r e x a m p l e , t h e t o t a l t a x c r e d i t w o u l d be $ 1 , 9 8 7 . 5 0 .
I f we assume, a 7 % , 8 y e a r l o a n o n t h e b a l a n c e ( $ 4 , 7 6 2 . 5 0 ) , w i t h t h e t a x
c r e d i t a p p l y i n g t o t h e down p a y m e n t , t h e c a s h f l o w p i c t u r e i s as f o l l o w s :
Payment
1
2
3
4
5
6
7
8
9
$
795.34
795.34
795.34
795.34
795.34
795.34
795.34
795.34
795.34
Savings
$ 492.00
528.90
568.56
611.21
657.07
706.32
759.30
816.23
877.48
Cash Out F l o t f
Year
Cumulative
$ 303.34
266.44
226.78
184.13
138.27
89.02
36.04
20.89
- 877.48
$ 303.34
569.78
796.56
986.69
1118.96
1207.98
1244.02
1223.13
345.65
" B r e a k e v e n " comes s h o r t l y a f t e r t h e n i n t h y e a r .
Maximum c u m u l a t i v e
c a s h o u t - f l o w i s 6370 l e s s t h a n w i t h o u t t h e t a x i n c e n t i v e .
Furthermore,
t h e c o n s u m e r w i l l have no d i f f i c u l t y i n r e c o g n i z i n g t h a t t h e e x t e n t t o
w h i c h h i s i n v e s t m e n t has i n c r e a s e d t h e v a l u e o f h i s p r o p e r t y i s g r e a t e r
t h a n h i s c u m u l a t i v e cash o u t l a y a t a l l t i m e s .
I n e f f e c t , the s o l a r i n vestment i s a "good" investment.
The p i c t u r e i s as f o l l o w s :
69
7%, 8 Y e a r Loan and Tax
Loan
Balance
1
2
3
4
5
6
7
8
$4300.54
3806.24
3277.31
2711.39
2105.83
1457.90
764.62
0
Cumulative
Cash F l o w
$ 303.34
569.78
796.56
980.69
1118.96
1207.98
1244.02
1223.13
Credits
Value ®
Original
Cost Less
5%/Year
Total
$4603.88
4376.02
4073.87
3692.08
3224.79
2665.88
2008.64
1223.13
$6412.50
6075.00
5737.50
5400.00
5062.50
4725.00
4387.50
4050.00
Net
$1808.62
1698.98
1663.63
1707.92
1837.71
2059.12
2378.86
2826.87
O b v i o u s l y , w i t h o u t t h e t a x c r e d i t b u t w i t h t h e 7% l o a n , t h e r e
w o u l d be a p e r i o d d u r i n g w h i c h t h e t o t a l o f t h e b a l a n c e due o n t h e l o a n
p l u s n e t cash o u t l a y s w o u l d exceed t h e d e p r e c i a t e d v a l u e o f t h e s o l a r
system.
We a n t i c i p a t e t h a t w i t h i n t e n y e a r s , t h e " c o n s t a n t " d o l l a r
c o s t s o f s o l a r s y s t e m s w i l l be r e d u c e d b y 50%.
Based on a 5% p e r y e a r
r a t e o f g e n e r a l i n f l a t i o n , t h i s means t h a t t h e " c u r r e n t d o l l a r " c o s t i n
t e n y e a r s w i l l b e 77.6% o f p r e s e n t " c u r r e n t d o l l a r " c o s t .
I n t h e meant i m e , because o f i n f l a t i o n , a n n u a l s a v i n g s w i l l have s u b s t a n t i a l l y i n creased.
The " 1 9 8 5 " p i c t u r e w i t h an e i g h t y e a r l o a n a t 12% and a 25%
down payment and w i t h o u t t a x c r e d i t s w o u l d b e as f o l l o w s :
Year
Lyment
1
2
3
4
5
6
7
8
Payment
Savings
$1309.50
789.63
789.63
789.63
789.63
789.63
789.63
789.63
789.63
$ 990.45
1064.74
1144.59
1230.44
1322.69
1421.93
1528.55
1643.18
Cash Out F l o w
Year
Cumulative
$-200.82
-275.11
-354.96
-440.81
-533.06
-632.30
-738.92
-853.55
$1309.50
1106.68
833.57
478.61
37.80
- 495.26
-1127.56
-1866.48
-2720.03
There i s a n e t cash s a v i n g every year o f o p e r a t i o n .
"Break even"
rapid.
O b v i o u s l y , t h e r e i s no need f o r Government a s s i s t a n c e .
3.
Capital
is
Cost-Effectiveness
I n o u r summary, we have s t a t e d t h a t t h e c a p i t a l c o s t o f s o l a r
e q u i p m e n t r e q u i r e d t o save one b a r r e l o f c r u d e o i l i s l e s s t h a n t h e c a p i t a l i n v e s t m e n t i n e l e c t r i c g e n e r a t i n g f a c i l i t i e s needed t o a c c o m p l i s h t h e
same p u r p o s e .
D a t a o n t h i s p o i n t was p r e p a r e d and s u b m i t t e d t o t h e
E n e r g y S u b c o m m i t t e e o f t h e C o m m i t t e e on S c i e n c e and T e c h n o l o g y o f t h e
U. S. House o f R e p r e s e n t a t i v e i n r e s p o n s e t o q u e s t i o n s r a i s e d a t t h e i r
October Hearings.
A copy o f the study i s a t t a c h e d t o t h i s t e s t i m o n y .
70
I n a " t y p i c a l " s i t u a t i o n , t h e i n v e s t m e n t c o s t r e q u i r e d t o r e p l a c e one
b a r r e l o f o i l w i t h a s o l a r i n s t a l l a t i o n s u p p l y i n g 60% o f t h e t h e r m a l
r e q u i r e m e n t s and t h e b a l a n c e s u p p l i e d b y " o f f p e a k " e l e c t r i c p o w e r
( u t i l i z i n g the storage c a p a b i l i t y of the s o l a r system t o s t o r e heat
f r o m " o f f peak" e l e c t r i c power) i s $130.50 ( c u r r e n t s i t u a t i o n ) .
The
c a p i t a l cost of the " a l l e l e c t r i c " a l t e r n a t i v e i s $228.38.
Even w i t h o u t t h e use o f " o f f p e a k " e l e c t r i c power w i t h s o l a r , t h e c a p i t a l c o s t
o f s o l a r alone i s $217.50 per b a r r e l o f o i l saved.
We may a s k , why i s Government a s s i s t a n c e r e q u i r e d ?
Why do
we n e e d l o w i n t e r e s t l o a n s ? Why do we n e e d t a x c r e d i t s ?
In part,
t h e need r e l a t e s t o t h e f i r s t c o s t s e n s i t i v i t y o f the consumer, t h e
a p a r t m e n t owner o r t h e b u i l d e r .
I n larger p a r t , i t r e l a t e s t o the
f a c t t h a t t h e e x t e n t t o w h i c h t h e Government " a s s i s t s " t h e i n v e s t m e n t
i n u t i l i t y f a c i l i t i e s w i t h t a x c r e d i t s and w i t h b e f o r e t a x d e p r e c i a t i o n
a l l o w a n c e s i s g r e a t e r t h a n t h e e x t e n t t o w h i c h we a r e a s k i n g f o r h e l p
f o r the purchaser of s o l a r equipment.
As i s d e t a i l e d i n t h e s t u d y
a t t a c h e d , t h e c o s t t o t h e U. S. T r e a s u r y o f r e p l a c i n g one b a r r e l o f o i l
w i t h e l e c t r i c generating c a p a c i t y i s $121.50, w h i l e the cost t o the
T r e a s u r y o f the s o l a r - o f f peak e l e c t r i c a l t e r n a t i v e i s o n l y $40.46.
TABLE I
LIFE CYCLE-COST ANALYSIS. TYPICAL SOIAR SYSTEMS
T o t a l Load
(10° B t u / y r . )
Cont; r i b u t i o n
(10*' B t u / y r . )
Conventional
Energy Form
Conventional
Energy Savings
Units
1st Year
Boston Area
M u l t i - F a m i l y Low Rise
Hot Water Only
507. Solar
607. Solar
707. Solar
507. Solar
607. Solar
707. Solar
1000
1000
1000
1000
1000
1000
500
600
700
500
600
700
Electricity
Electricity
Electricity
Oil
Oil
Oil
146,400
175,680
204,960
6,500
7,800
9,100
KWH
KWH
KWH
Gal.
Gal.
Gal.
$ 5124
6149
7174
2925
3510
4095
Los Angeles Area
M u l t i - F a m i l y Low Rise
Hot Water Only
507. Solar
607. Solar
707. Solar
507. Solar
60% Solar
707. Solar
507. Solar
607. Solar
707. Solar
1000
1000
1000
1000
1000
1000
1000
1000
1000
500
600
700
500
600
700
500
600
700
Electricity
Electricity
Electricity
Oil
Oil
Oil
Gas
Gas
Gas
146,400
175,680
204,960
6,500
7,800
9,100
833
1,000
1,167
KWH
KWH
KWH
Gal.
Gal.
Gal.
MSF
MCF
MCF
Boston Area
M u l t i - F a m i l y Low Rise
Heating + Hot Water
407. Solar
507. Solar
607. Solar
407. Solar
507. Solar
60% Solar
1847
1847
1847
1847
1847
1847
739
924
1108
739
924
1108
Electricity
Electricity
Electricity
Oil
Oil
Oil
216,320
270,400
324,480
9,600
12,000
14,400
KWH
KWH
KWH
Gal.
Gal.
Gal.
Cumulative
10 Yrs.
Cumulative
20 Yrs.
Solar System
Cost
Pay Out
Time. Yrs.
72,261
86,716
101,171
46,617
55,940
65,264
$218,190
261,837
305,483
167,529
201,035
234,541
$ AO, 320
53,,550
71,,430
40,,320
53,,550
71,,430
6.4
6.9
7.7
9.1
9.7
10.6
$ 4392
5270
6149
2600
3120'
3640
1250
1500
1,750
$ 61,931
74,320
86,716
41,437
49,725
58,012
19,922
23,906
27,890
$187,020
224,407
261,837
148,915
178,698
208,481
71,594
85,912
100,231
$ 26,,685
34,,620
44,,685
26,,685
34,,620
44,,685
26,,685
34,,620
44,,685
5.2
5.5
6.0
7.4
7.8
8.4
12.0
12.5
13.3
$ 7571
9464
11357
4320
5400
6480
$106,773
134,466
160,159
68,850
86,062
103,274
$322,397
402,996
483,595
247,428
309,284
371,141
$ 62,,260
86,,580
125,,000
62,,260
86,,580
125,,000
.$
6.6
7.2
8.3
9.4
10.0
11.3
Table I
(cont'd.)
T o t a l Load
(10 6 B t u / v r . )
Boston Area
Single-Family Residence
Heating + Hot Water
40% Solar
507. Solar
40% Solar
50% Solar
Los Angeles Area
Single-Family Residence
Heating + Hot Water
40% Solar
50% Solar
60% Solar
40% Solar
50% Solar
60% Solar
Solar
Contribution
(10 6 B t u / v r . )
Conventional
Energy Form
Conventional
Energy Savings
Units
96
96
96
38.4
48.0
38.4
Electricity
Electricity
O i l Heat
Elec. H.W.
Total
96
48.0
O i l Heat
Elec. H.W.
Total
462 Gal.
4,216 KWH
50
50
50
50
50
50
20.0
25.0
30.0
20.0
25.0
30.0
Electricity
Electricity
Electricity
Gas
Gas
Gas
5,856
7,320
8,784
33.3
41.67
50.0
11,244
14,054
333
3,742
KWH
KWH
Gal.
KWH
KWH
KWH
KWH
MCF
MCF
MCF
1st Year
$
394
492
150
131
281
Cumulativ
10 Yrs.
$
208
148
356
$
176
220
264
50
63
75
$
Cumulative
20 Yrs.
5,556
6,937
2,391
1.847
4,238
16,777
20,946
8,591)
5.578)
14,169
3,315
2.087
5,402
11,913)
6,302)
18,215
2,478
3,103
3,723
797
1,004
1,195
7,481
9,368
11,242
2,863
3,608
4,296
Solar System
Cost
Pay Out
Time. Yrg.
9.1
9.8
4,875
6,750
4,875
11.0
6,750
11.6
1,125
1,605
2,250
1,125
1,605
2,250
5.4
6.0
6.8
12.8
13.3
14.5
to
73
Arrangement of Typical U. S.
Supply
F i g u r e 1.
Figure 2.
74
Boston - Hot Water
Solar vs. Electric
70% S o l a r
50% S o l a r
£200
w
O
Q
T>
C
1100
o
£
70% S o l a r
50% S o l a r
Figure
3.
Figure
4.
75
Years
F i g u r e 5.
Useful Heat, Btu per Square Foot of Solar Collector per Year
F i g u r e 6.
76
SOLAR ENERGY INDUSTRIES ASSOCIATION
PROPOSALS FOR TEMPORARY SOLAR ENERGY INCENTIVES
AND FOR
OTHER GOVERNMENT ACTIONS TO ACCELERATE SOLAR ENERGY APPLICATION
The f o l l o w i n g summarizes p r e s e n t t h i n k i n g o f SEIA .
.
.
Homeowner I n c e n t i v e s .
A t a x c r e d i t t o homeowners .equal t o 40% o f
t h e f i r s t $2,000 and 25% o f t h e n e x t $6,000 i n v e s t e d i n equipment t o " p r o duce" s o l a r energy.
To be e l i g i b l e f o r i n c e n t i v e t a x c r e d i t s , t h e i n s t a l l a t i o n must meet "Temporary S t a n d a r d s " now b e i n g d e v e l o p e d by NBS a n d / o r
f u t u r e ANSI N a t i o n a l Consensus S t a n d a r d s .
I n c e n t i v e s f o r M u l t i - F a m i l y R e s i d e n t i a l , Commercial and I n d u s t r i a l
Applications.
A t a x c r e d i t e q u a l t o 20% o f t h e i n v e s t m e n t o r p r o v i s i o n f o r
f i v e year r a p i d a m o r t i z a t i o n a t the o p t i o n of the i n v e s t o r .
E l i g i b i l i t y as
above.
Incentives for Non-Proflt Entities.
A g r a n t e q u a l t o 40% o f t h e i n vestment.
A p p l i e s t o s t a t e and l o c a l g o v e r n m e n t s , s c h o o l s , h o s p i t a l s , n o n p r o f i t corporations, etc.
E l i g i b i l i t y as above.
I n c e n t i v e s f o r P r o d u c e r s o f S o l a r Equipment.
Five year r a p i d a m o r t i z a t i o n o f c a p i t a l i n v e s t m e n t s made t o produce s o l a r energy e q u i p m e n t .
A
development l o a n program t o a s s i s t c a p i t a l f o r m a t i o n by s m a l l b u s i n e s s f i r m s
p l a n n i n g t o produce s o l a r energy equipment.
A program t o p e r m i t t h e F e d e r a l
Government t o purchase s p e c i a l i z e d eqipment r e q u i r e d t o p r o d u c e s o l a r e n e r g y
equipment and l e a s e such equipment t o i n d u s t r y f o r such u s e .
Loan Guarantee Programs — Homeowners.
Government l o a n g u a r a n t e e s
a p p l y i n g t o i n s t a l l e d c o s t o f s o l a r equipment such t h a t t h e a d d i t i o n a l i n v e s t m e n t r e q u i r e d w i l l n o t add t o t h e down payment r e q u i r e d f o r new r e s i dencies.
Government l o a n g u a r a n t e e s , and i f n e c e s s a r y , i n t e r e s t s u b s i d i e s
f o r r e t r o f i t a p p l i c a t i o n s t o e q u a l i z e i n t e r e s t c o s t s w i t h new i n s t a l l a t i o n s
P r o g r a m i s s i m i l a r t o e d u c a t i o n a l l o a n program.
E l i g i b i l i t y as above.
77
Loan Guarantee Programs - O t h e r .
Government l o a n g u a r a n t e e s a p p l y i n g
t o i n s t a l l e d c o s t o f equipment such t h a t t h e a d d i t i o n a l i n v e s t m e n t i n s o l a r e n e r g y
equipment does n o t r e q u i r e a d d i t i o n a l e q u i t y f i n a n c i n g by owner.
I n t e r e s t subs i d i e s t o e q u a l i z e o w n e r f s money c o s t w i t h t h a t o f o t h e r energy p r o d u c e r s ( o i l
companies, e t c . ) , who n o r m a l l y b o r r o w a t o r n e a r t h e " p r i m e r a t e . "
FEA S o l a r Energy C o m m e r c i a l i z a t i o n A c t i v i t i e s .
FEA s h o u l d be p r o v i d e d
w i t h adequate f u n d i n g t o s u p p o r t i t s s o l a r a c t i v i t i e s .
These a c t i v i t i e s i n c l u d e :
o v e r c o m i n g i n s t i t u t i o n a l , economic and l e g a l b a r r i e r s ;
d e v e l o p i n g s t a t e and l o c a l
programs;
educating the p u b l i c , e t c .
Government B u i l d i n g s Program.
I m p l e m e n t a t i o n o f a p r o g r a m based on
S-2095 w i t h c e r t a i n m o d i f i c a t i o n t o a s s u r e adequate s o l a r e n e r g y equipment u t i l i z a tion.
D e m o n s t r a t i o n Programs. Adequate i m p l e m e n t a t i o n o f PL 9 3 - 4 0 9 , t h e " S o l a r
H e a t i n g and C o o l i n g D e m o n s t r a t i o n A c t o f 1 9 7 4 , " i s needed. A t p r e s e n t i t appears
t h a t t o o g r e a t emphasis i s b e i n g p l a c e d on "development i n s u p p o r t o f d e m o n s t r a t i o n "
and t o o l i t t l e upon an adequate number o f d e m o n s t r a t i o n s .
There i s a l s o c o n c e r n
t h a t ERDA s p e n d i n g p l a n s may i n v o l v e d i v e r s i o n o f e f f o r t f r o m s u p p o r t o f d i r e c t
s o l a r t h e r m a l a p p l i c a t i o n s ( h e a t i n g , h o t w a t e r and c o o l i n g ) w h i c h have m i d - t e r m
as w e l l as l o n g t e r m p o t e n t i a l t o a p p l i c a t i o n s r e q u i r i n g e x t e n s i v e r e s e a r c h
e f f o r t s and h a v i n g o n l y l o n g t e r m p o t e n t i a l f o r energy s a v i n g s — i f R&D i s s u c c e s s f u l .
( S o l a r t h e r m a l e l e c t r i c , ocean t h e r m a l g r a d i e n t s , e t c . )
S p e c i f i c Programs t o A c c e l e r a t e
Development o f P h o t o v o l t a i c s
A l l o f t h e above programs r e l a t e t o p h o t o v o l t a i c a p p l i c a t i o n s as w e l l as
to solar-thermal applications.
I n a d d i t i o n , t h e f o l l o w i n g programs a r e proposed
as a means o f a c c e l e r a t i n g development o f p h o t o v o l t a i c a p p l i c a t i o n s .
A i r C o n d i t i o n i n g Programs. A p p l i c a t i o n s i n w h i c h s o l a r e l e c t r i c energy
g a t h e r e d by p h o t o v o t a i c c e l l s i s used t o power compressor a i r - c o n d i t i o n i n g a p p a r a t u s
become c o s t - e f f e c t i v e a t h i g h e r p h o t o v o l t a i c c e l l c o s t s t h a n t h e g e n e r a l i t y o f
applications.
B a s i c a l l y , t h i s i s because energy s t o r a g e i n t h e f o r m o f c h i l l e d
water i s low c o s t .
Immediate p r o o f o f concept and e a r l y d e m o n s t r a t i o n i n s t a l l a t i o n s
are propsed.
Remote Government I n s t a l l a t i o n Programs. Programs s i m i l a r t o t h e g e n e r a l
Government B u i l d i n g s Program aimed a t i n s t a l l a t i o n o f p h o t o v o l t a i c d e v i c e s i n
remote a r e a s s h o u l d be i n i t i a t e d a t t h i s t i m e .
R e s u l t s To Be E x p e c t e d
The combined e f f e c t o f t h e s e programs w i l l s u b s t a n t i a l l y a c c e l e r a t e
development o f s o l a r e n e r g y a p p l i c a t i o n s .
We e s t i m a t e t o t a l s o l a r energy p r o d u c t i o n
p r e d i c t e d upon t h e s e and t h o s e programs a l r e a d y i n p l a c e e q u i v a l e n t t o 1 m i l l i o n
b a r r e l s p e r day o f c r u d e p e t r o l e u m w i t h i n t e n y e a r s . W i t h o u t t h e package p r o p o s e d
and w i t h o n l y t h o s e programs now i n p l a c e , s a v i n g s w o u l d n o t exceed 100,000 b a r r e l s
p e r day i n t e n y e a r s .
62-322 O - 75 - 6
78
COMPARATIVE CAPITAL AND TAX REVENUE COSTS
OF REPLACING IMPORTED CRUDE O I L WITH ELECTRIC
POWER AND WITH SOLAR THERMAL ENERGY
The B a s i c
Concept
S c a r c e e n e r g y f o r m s , s u c h as o i l and g a s , used i n h e a t i n g and
c o o l i n g may be r e p l a c e d w i t h a l t e r n a t i v e e n e r g y s o u r c e s , s u c h as s o l a r
e n e r g y o r e l e c t r i c e n e r g y (when g e n e r a t e d u s i n g c o a l , n u c l e a r f u e l , and
l a t e r i n time, s o l a r e l e c t r i c energy, geothermal energy or f u s i o n , which
energy resources are i n r e l a t i v e l y p l e n t i f u l s u p p l y ) .
Basic
Findings
The c a p i t a l c o s t o f e x p l o i t i n g s o l a r e n e r g y f o r t h i s p u r p o s e
i s lower than the c a p i t a l cost of e l e c t r i c generating f a c i l i t i e s r e q u i r e d t o a c c o m p l i s h t h e same p u r p o s e , p a r t i c u l a r l y so when t h e s o l a r
i n s t a l l a t i o n d e r i v e s i t s a u x i l i a r y energy requirements from " o f f peak"
e l e c t r i c power.
The c o s t t o t h e T r e a s u r y , p e r b a r r e l o f c r u d e o i l
saved, o f t h e i n c e n t i v e s proposed by t h e S o l a r Energy I n d u s t r i e s Assoc i a t i o n i s less than those i n c o r p o r a t e d i n e x i s t i n g t a x l e g i s l a t i o n
a p p l y i n g t o e l e c t r i c u t i l i t y companies.
The r e s u l t s a r e as f o l l o w s :
C a p i t a l R e q u i r e m e n t s , Tax Revenue E f f e c t s And
P r i m a r y Energy I m p l i c a t i o n s o f V a r i o u s A l t e r n a t i v e s
To R e p l a c e One B a r r e l o f Crude O i l
P r i m a r y Energy Content
5.8 to 6.0 M i l l i o n Btu
Capital
. Cost
100% E l e c t r i c
Generation
60% S o l a r
+40% O f f Peak
Power
Electric
C o s t To The
Treasury
$228.38
$121.50*
$130.50
$ 40.46
0
0
$130.50
$ 40.46
Primary
Energy
Required
9.5 M i l l i o n
Btu
3.8 M i l l i o n
Btu
* I f t h a t p o r t i o n o f the cost to the Treasury r e p r e s e n t i n g the e f f e c t of
d e p r e c i a t i o n a l l o w a n c e s f o r t a x p u r p o s e s and w h i c h i s a d e f e r r e d c o s t
i s d i s c o u n t e d t o i t s " p r e s e n t w o r t h " a t a d i s c o u n t r a t e o f 6% p e r y e a r ,
t h e $ 1 2 1 . 5 0 becomes $ 9 5 . 6 6 .
79
Electric
Energy C a p i t a l
Costs
One b a r r e l o f c r u d e o i l h a s a h e a t v a l u e o f 5 . 8 t o 6 . 0 m i l l i o n
Btu.
Crude o i l i s a " p r i m a r y " energy s o u r c e .
As p r i m a r y e n e r g y , t h e
heat content of crude o i l i s 5.8 t o 6.0 m i l l i o n Btu per b a r r e l .
In rel a t i n g c r u d e o i l as a p r i m a r y e n e r g y s o u r c e t o t h e h e a t r e q u i r e d t o h e a t
b u i l d i n g s p a c e o r t o h e a t d o m e s t i c h o t w a t e r , we m u s t f i r s t a c c o u n t f o r
the various losses i n v o l v e d i n c o n v e r t i n g crude o i l i n t o h e a t i n g o i l , a
r e f i n e r y p r o d u c t , d i s t r i b u t i n g t h i s p r o d u c t t o t h e u s e r s and t h e l o s s e s
encountered i n c o n v e r t i n g the energy content of the h e a t i n g o i l i n t o
u s e f u l heat applied to the load.
These a r e p r i m a r i l y c o m b u s t i o n l o s s e s .
I t i s e s t i m a t e d t h a t 12% o f t h e p r i m a r y e n e r g y c o n t a i n e d i n t h e b a r r e l
o f c r u d e o i l i s l o s t i n r e f i n i n g and d i s t r i b u t i o n .
T h i s means t h a t one
b a r r e l of crude o i l w i t h a heat content of 6.0 m i l l i o n Btu i s e q u i v a l e n t
t o 5,280,000 Btu i n h e a t i n g o i l d e l i v e r e d t o the user.
I n the process
of b u r n i n g the h e a t i n g o i l , f u r t h e r losses are encountered--the heat i n
t h e r e l a t i v e l y h o t f l u e gas e x h a u s t e d i n t o t h e a t m o s p h e r e , l o s s e s a s s o ciated w i t h thermal c y c l i n g of the furnace, e t c .
These l o s s e s a r e e s t i m a t e d t o e q u a l 45% o f t h e h e a t v a l u e o f t h e h e a t i n g o i l b u r n t .
Deducti n g t h i s 45%, we f i n d t h a t one b a r r e l o f c r u d e o i l d e l i v e r s 2 . 9 m i l l i o n
B t u t o t h e space h e a t i n g o r h o t w a t e r h e a t i n g l o a d .
E l e c t r i c e n e r g y a p p l i e d t o such l o a d s can be u t i l i z e d w i t h v i r t u a l l y 100% e f f i c i e n c y .
(There a r e no c o m b u s t i o n l o s s e s . )
Upon t h i s
b a s i s , 2 . 9 m i l l i o n B t u ( e q u i v a l e n t t o one b a r r e l o f c r u d e o i l ) r e q u i r e s
d e l i v e r y o f 850 k i l o w a t t h o u r s t o t h e l o a d .
The c o s t s o f e l e c t r i c g e n e r a t i n g p l a n t s and d i s t r i b u t i o n s y s t e m s a r e u s u a l l y r e l a t e d t o t h e g e n e r a t i n g capacity of the p l a n t .
There are energy losses i n v o l v e d i n the
t r a n s f o r m e r s and t r a n s m i s s i o n l i n e s r e q u i r e d t o u l t i m a t e l y d e l i v e r e l e c t r i c energy t o a residence.
T h e s e a r e e s t i m a t e d t o be 15% o f t h e p o w e r
generated.
T h e r e f o r e , 850 k i l o w a t t h o u r s d e l i v e r e d t o t h e l o a d r e q u i r e s
t h a t 1 , 0 0 0 k i l o w a t t h o u r s be g e n e r a t e d a t t h e e l e c t r i c g e n e r a t i n g s y s t e m .
I f e l e c t r i c g e n e r a t i n g p l a n t s o p e r a t e d a t a 100% u t i l i z a t i o n
f a c t o r , each k i l o w a t t of c a p a c i t y i n the g e n e r a t i n g p l a n t would produce
8,760 k i l o w a t t hours per year.
B e c a u s e t h e demand f o r e l e c t r i c i t y i s
n o t u n i f o r m and a l s o b e c a u s e g e n e r a t i n g c a p a c i t y m u s t be s h u t down
p e r i o d i c a l l y f o r maintenance, the u t i l i t y i n d u s t r y t y p i c a l l y averages
l e s s t h a n 50% u t i l i z a t i o n o f i n s t a l l e d c a p a c i t y .
I f we e s t i m a t e 50%
e q u i p m e n t u t i l i z a t i o n , one k i l o w a t t o f c a p a c i t y w i l l p r o d u c e 4 , 3 8 0 k i l o w a t t hours per y e a r .
U n d e r t o d a y ' s c o n d i t i o n s , we e s t i m a t e t h a t t h e i n s t a l l e d c o s t
o f new g e n e r a t i n g c a p a c i t y , t o g e t h e r w i t h t h e i n s t a l l e d c o s t o f new
d i s t r i b u t i o n and s u p p o r t f a c i l i t i e s t o t a l s $ 1 , 0 0 0 p e r k i l o w a t t o f capacity.
I f t h i s k i l o w a t t of c a p a c i t y w i l l generate 4,380 k i l o w a t t hours
80
p e r y e a r and r e c o g n i z i n g t h a t 1 , 0 0 0 k i l o w a t t h o u r s m u s t be g e n e r a t e d t o
r e p l a c e one b a r r e l o f i m p o r t e d c r u d e o i l , we f i n d t h a t , a t $ 1 , 0 0 0 p e r
k i l o w a t t of c a p a c i t y , the c a p i t a l cost of r e p l a c i n g a b a r r e l of crude
o i l w i t h e l e c t r i c energy i s $228.38.
Solar
Capital
Costs
The u s e f u l h e a t p r o d u c e d b y a s o l a r i n s t a l l a t i o n w i l l v a r y
w i t h i n s o l a t i o n c o n d i t i o n s , w i t h t h e l o a d p r o f i l e and a l s o w i t h t h e
e x t e n t t o w h i c h s o l a r e n e r g y i s used t o c a r r y the l o a d .
Studies i n d i c a t e t h a t s o l a r i n s t a l l a t i o n s made w i t h p r e s e n t l y a v a i l a b l e " s t a t e o f
the a r t " equipment should produce 200,000 Btu o f usable heat energy
per square f o o t of c o l l e c t o r area.
(The " c a p a c i t y " o f t h e e q u i p m e n t i s
s u b s t a n t i a l l y h i g h e r , the 200,000 Btu net f i g u r e discounts c a p a c i t y f o r
t h e f a c t t h a t l o a d p r o f i l e s a r e such t h a t t h e f u l l c a p a c i t y o f the s o l a r
s y s t e m i s n o t a l w a y s needed and t h e r e f o r e , i s n o t a l w a y s u s e f u l . )
Exp e r i e n c e , a s w e l l as t h e p r i c e s o f p r e s e n t l y c o m m e r c i a l l y a v a i l a b l e s o l a r
equipment, i n d i c a t e t h a t the cost of the s o l a r equipment i n s t a l l e d should
b e $15 p e r s q u a r e f o o t .
T h e r e f o r e , 14.5 square f e e t of s o l a r c o l l e c t o r ,
t o g e t h e r w i t h o t h e r r e q u i r e d equipment a t a t o t a l c o s t of $217.50, i s r e q u i r e d t o r e p l a c e one b a r r e l o f c r u d e o i l .
The c a p i t a l i n v e s t m e n t r e q u i r e d i n s o l a r e q u i p m e n t t o s a v e a
b a r r e l of crude o i l of $217.50 i s modestly lower than the $228.38 i n vestment r e q u i r e d i n e l e c t r i c generating f a c i l i t i e s to accomplish the
same p u r p o s e .
Solar
I n s t a l l a t i o n s and E l e c t r i c
U t i l i t y L o a d Management
On t h e a v e r a g e , c o s t - e f f e c t i v e s o l a r i n s t a l l a t i o n s w i l l c a r r y
50% o r 60% o f t h e h e a t i n g o r d o m e s t i c h o t w a t e r l o a d , l e a v i n g t h e b a l ance t o be c a r r i e d b y " c o n v e n t i o n a l " e n e r g y s o u r c e s .
S i n c e somewhat
o v e r 50%, o f new r e s i d e n t i a l u n i t s now u t i l i z e e l e c t r i c h e a t a n d w e l l
o v e r 50% u s e e l e c t r i c d o m e s t i c h o t w a t e r h e a t e r s , a n d r e c o g n i z i n g t h a t
we a r e c o n s i d e r i n g e l e c t r i c i t y a n d s o l a r as a l t e r n a t i v e means o f r e d u c i n g c r u d e o i l c o n s u m p t i o n , we may c o n s i d e r t h e c a s e i n w h i c h t h e
a u x i l i a r y energy r e q u i r e m e n t s are p r o v i d e d by e l e c t r i c e n e r g y .
As i s
d i s c u s s e d i n more d e t a i l i n t h e a n a l y s i s b e i n g p r e s e n t e d i n r e s p o n s e
t o Congressman McCormack's r e q u e s t , t h e t h e r m a l e n e r g y s t o r a g e c a p a b i l i t y , w h i c h i s an i n t e g r a l p a r t o f the s o l a r i n s t a l l a t i o n ,
provides
a n o p p o r t u n i t y f o r u t i l i t y l o a d management s u c h t h a t t h e a u x i l i a r y
e n e r g y r e q u i r e m e n t s o f t h e s o l a r i n s t a l l a t i o n may be f u r n i s h e d o n a
s t r i c t l y " o f f peak" b a s i s .
S i n c e o f f peak power r e q u i r e s no a d d i t i o n a l
investment i n generating or d i s t r i b u t i o n f a c i l i t i e s but simply i n c r e a s e s t h e l e v e l o f u t i l i z a t i o n o f e x i s t i n g f a c i l i t i e s , no i n v e s t m e n t
i s necessary to supply a u x i l i a r y e l e c t r i c energy requirements.
T h e r e f o r e , i f t h e s o l a r s y s t e m s u p p l i e s 60% o f t h e e n e r g y r e quired to replace a b a r r e l of crude o i l , the s o l a r investment i s $130.50.
No i n v e s t m e n t i s r e q u i r e d i n e l e c t r i c f a c i l i t i e s a n d t h e t o t a l new i n vestment i s , t h e r e f o r e , $130.50.
81
Cost t o t h e T r e a s u r y Of
Various A l t e r n a t i v e s
The S o l a r Energy I n d u s t r i e s A s s o c i a t i o n has proposed a p r o gram of temporary i n c e n t i v e s to a c c e l e r a t e use of s o l a r energy.
In
the case of i n d i v i d u a l homeowners, we have proposed a t a x c r e d i t equal
to 40% o f the f i r s t $ 2 , 0 0 0 i n v e s t e d by the homeowner and 25% of the
next $ 6 , 0 0 0 .
I f we assume t h a t the average cost of the s o l a r i n s t a l l a t i o n s made by the i n d i v i d u a l homeowners i s $ 5 , 0 0 0 , the average i n c e n t i v e t a x c r e d i t becomes 31%.
( T h i s i s a somewhat low e s t i m a t e of
t o t a l equipment c o s t ; a h i g h e r e s t i m a t e of equipment cost would gene r a t e a somewhat lower average t a x c r e d i t . )
Based on an average t a x c r e d i t of 31%, t o the homeowner,
cost t o the T r e a s u r y per b a r r e l of crude o i l saved would be:
Crude O i l Savings D e r i v e d From S o l a r Alone
Crude O i l Savings D e r i v e d From S o l a r (60%)
I n t e g r a t e d W i t h O f f Peak E l e c t r i c Power (40%)
the
$67.43
40.46
Under the terms of e x i s t i n g l e g i s l a t i o n , an e l e c t r i c u t i l i t y
company b u i l d i n g new c a p a c i t y i s allowed a 10%, investment t a x c r e d i t .
On the b a s i s of an investment of $228.38 per b a r r e l of o i l saved, the
cost of t h i s investment t a x c r e d i t t o the Treasury i s $ 2 2 . 8 4 .
I n a d d i t i o n , the e l e c t r i c u t i l i t y i s p e r m i t t e d t o d e p r e c i a t e
the remainder of t h e i r investment f o r t a x purposes by d e d u c t i n g the
remaining investment f r o m t a x a b l e income o v e r a p e r i o d o f t i m e .
Assuming a c o r p o r a t e t a x r a t e of 48%, t h e cost t o t h e T r e a s u r y of these ded u c t i o n s from income f o r d e p r e c i a t i o n upon the r e m a i n i n g $205.54 i s
$98.66.
Thus, the t o t a l cost t o the Treasury of the " a l l e l e c t r i c "
a l t e r n a t i v e is $ 1 2 1 . 5 0 .
I t i s t r u e t h a t the d e p r e c i a t i o n allowances and t h e i r impact
upon T r e a s u r y revenue occurs over a p e r i o d of y e a r s .
I f the f u t u r e
costs t o the T r e a s u r y a r e discounted to the present a t a discount r a t e
o f 6%, ( r e p r e s e n t a t i v e of the T r e a s u r y ' s cost f o r money), and we assume
t h a t , f o r t a x purposes, the f a c i l i t i e s a r e d e p r e c i a t e d over a twenty
y e a r p e r i o d and t h a t the u t i l i t y uses the "sum o f the d i g i t s " method of
d e p r e c i a t i o n ; the p r e s e n t value of the $98.66 becomes $ 7 2 . 8 2 .
Adding
back the immediate e f f e c t of the investment t a x c r e d i t of $ 2 2 . 8 4 , the
discounted cost t o the T r e a s u r y of the " a l l e l e c t r i c " o p t i o n i s $ 9 5 . 6 6 .
I n e i t h e r e v e n t , the cost t o the T r e a s u r y of s u p p o r t i n g s o l a r
development w i t h the t a x i n c e n t i v e s proposed by S . E . I . A . i s l e s s than
the cost to the T r e a s u r y of s u p p o r t i n g f u r t h e r development of e l e c t r i c
energy resources a l r e a d y e s t a b l i s h e d by e x i s t i n g t a x l e g i s l a t i o n a p p l i cable to e l e c t r i c u t i l i t i e s .
Questions were a l s o r a i s e d as to t h e r e l a t i o n s h i p between the
investment r e q u i r e d f o r a s o l a r i n s t a l l a t i o n and t h a t r e q u i r e d t o develop
shale o i l r e s o u r c e s , t o develop p r o d u c t i o n of s y n t h e t i c n a t u r a l gas from
c o a l or t o develop p r o d u c t i o n of l i q u i d f u e l s from c o a l .
Our answer t o
82
these questions was and i s t h a t we do not have any r e l i a b l e estimates
f o r these a l t e r n a t i v e s .
Development of such estimates would be h i g h l y
complex.
For example, i n the case of shale o i l development, we must
consider not only the cost of the p l a n t f a c i l i t y required to e x t r a c t
o i l from shale i t s e l f but we must also consider the c a p i t a l cost of
r e f i n e r y capacity to r e f i n e the crude product, and most p a r t i c u l a r l y ,
we must consider the c a p i t a l cost inherent i n development of water r e sources r e q u i r e d by the shale o i l p l a n t s .
I t is unfortunately true
t h a t shale o i l reserves are located i n areas which are s e m i - a r i d and
i n which e x i s t i n g water resources are l i m i t e d , w i t h very l i m i t e d p r e sent a v a i l a b i l i t y of surplus water resources. What would be the c a p i t a l
cost to the Government to increase water a v a i l a b i l i t y i n these areas?
83
Mr. MOORHEAD. Well, thank you very much, Mr. Butt.
The subcommittee would now like to hear from Mr. C. A. Morrison,
director of research, solar energy and energy conversion laboratory.
Mr. ROUSSELOT. May I ask a question ?
How muny members do you have in your association ?
Mr. B U T T . Approximately 4 0 0 .
Mr. ROUSSELOT. Thank you, Mr. Chairman.
Mr. MOORHEAD. Mr. Morrison.
STATEMENT OP C. A. MORRISON, DIRECTOR OF RESEARCH, SOLAR
ENERGY AND ENERGY CONVERSION LABORATORY, UNIVERSITY
OF FLORIDA, GAINESVILLE, FLA.
Mr. MORRISON. Thank you, Mr. Chairman.
Briefly, I have noted m my comments there appears to be some inconsistency in section 2, paragraph B, "Authorization of Loans." I t
is covered in my comments.
Also in that section under "Cooling equipment," there is a section
there that appears to be creating the Energy Research and Development Administration as an agency to establish performance criteria
for the solar heating and cooling equipment and issue certification and
do other police work in this area. I find this somewhat alarming, because I feel that industry, in as far as possible, should not be under
the direct jurisdiction of governmental bureaus. I think they are more
capable of policing themselves.
I have prepared a packet of material for you that has given much
information concerning various types of research work that have been
accomplished in the field of solar energy at the University of Florida.
I t will show you operational prototypes that you can study.
Mr. MOORHEAD. Without objection, the material, which is very
interesting, w i l l be made a part of the record.
[The material referred to concerning various types of research
work that have been accomplished in the field of solar energy at the
University of Florida follow Mr. Moorhead's prepared statement:]
Mr. MOORHEAD. Thank you.
Many of these materials and prototypes have been in operation for
over 15 years. Insofar as flat plate collectors are concerned, I personally know that they were in use in south Florida in 1930. So these
are not new technologies. I think a better thing is to say that solar
energy has been a neglected technology.
The flat plate collector has been operational for many years. We
have been able to establish the fact that it is rather efficient. Currently,
a well-designed collector is roughly 50 percent efficient in the range of
about 150° F.
There are some corrections on my statement that should be so noted.
Your secretary has these corrections.
Mr. MOORHEAD. They will be noted.
Mr. MORRISON. The best possible efficiency would be 100 percent
Fahrenheit—correction, 100 percent efficiency. So we cannot look for
anv dramatic breakthrough in the design of flat plate collectors that
will triple or quadruple the efficiency. I t is just not going to do it.
I believe, though, that through the proper manufacturing incentives
and equipment selection, material selection, mass production tech-
84
niques, that cost reductions of considerable magnitude can be effected.
This w i l l bring the product into the purchasing capability of the
homeowner.
The same flat plate collector which has proved very efficient in our
experimental work can also be used to power refrigeration devices. We
have made ice with it. We have absorption systems that are producing air-conditioning. We have developed 11 such systems over the
past 20 years. Currently we have in operation in our test house an airconditioning system that successfully operated under manual control.
Solar-powered air-conditioning is here. I t is a matter of automation
and perfecting the systems. I t is not a question of whether or not i t can
be done.
Our residential unit is currently being heated by solar energy. I t
is under thermostatic control. I t operates just exactly like any other
residential heating plant operates, and you cannot tell the difference
whether it is being heated by solar or some other, more conventional
method.
We have two separate systems in the house; both of them work. We
have various other projects that are being pursued, which I w i l l not
be able to go into.
On theT>asis of our data, which has been gathered over a number
of years, we have determined that our hot water heating cost in our
residential unit has been reduced 85 percent through the use of solar
energy. We estimate that at least 80 percent of our heating requirements for the solar-powered residence w i l l be able to be met. So on
the basis of these experiments, I believe that the overall heating, water
heating and house heating bill for the residential homeowner or small
business owner could be reduced as much as 75 percent on a national
basis, if we were to go to a strong program that would accelerate the
use of this energy.
Now, I do not really think that solar energy is the eureall. I t is not
going to meet all of the demands, but it certainly is a source of energy
that should be used wherever it is possible. When i t is not possible
to use solar energy or some other renewable type of energy source,
then and only then should the more conventional energy of the nonrenewable type be used.
Thank you.
[The prepared statement of Mr. Morrison follows:]
PREPARED S T A T E M E N T OF M R . C . A . MORRISON, DIRECTFR OF R E S E R C H , SOLAR
E N E R G Y A N D E N E R G Y CONVERSION LABORATORY, U N I V E R S I T Y OF F L O R I D A , G A I N E S VILLE, F L A .
COMMENTS
ON H . R .
3849
AND
SOLAR ENERGY
TECHNOLOGY
Since i t was November 3, 1975, when I received my copy of House B i l l No.
H.R. 3849,1 have not been able to examine the b i l l i n depth. A p r e l i m i n a r y review
of the b i l l indicates t h a t the overall effect of t h i s enactment should be quite
beneficial to those who are interested i n the p r a c t i c a l application of solar energy
technology at t h e earliest possible time.
I noted t h a t under Section 2, " A u t h o r i z a t i o n of Loans", paragraph B, l i n e 6,
a figure of $6,000 is t o be made available f o r a one t o f o u r f a m i l y structure. I n
r e v i e w i n g the remainder of the paragraph, I assume t h a t the i n t e n t of t h i s
subsection " A " was to make available $6,000 per d w e l l i n g u n i t i n the case of
a one to f o u r f a m i l y structure. I f this was not the intent, then i t w o u l d seem
as i f the subsequent items w o u l d not be consistent.
85
W h i l e my general reaction to the b i l l was quite favorable, I am somewhat
concerned about the content of the "Cooling Equipment" section, paragraph B,
w h i c h is on page 7 and starts at line 6. I t appears as i f the Energy Research
and Development A d m i n i s t r a t i o n is being commissioned to establish performance
c r i t e r i a f o r solar heating and cooling equipment, issue certification regarding
the performance of this equipment, and police the m a n u f a c t u r i n g and m a r k e t i n g
of the equipment. T h i s I find alarming, because I feel t h a t industry, insofar as
possible, should not be under the direct j u r i s d i c t i o n of governmental bureaus. I t
has been my experience t h a t bureaucratic regulations more often deter, rather
t h a n promote, progress i n the field of i n d u s t r i a l research and development.
I n order to assist the members of this committee i n evaluating the present
state of solar water heating, house heating, and cooling technology I have prepared a packet of m a t e r i a l which w i l l be distributed to each of you f o r your
perusal. W h i l e examining these materials, you w i l l see t h a t solar energy has
been widely and successfully applied at the prototype level of development f o r
many years. Many of the solar powered devices, w h i c h are discussed i n these
pamphlets, were operational i n our laboratories at the U n i v e r s i t y of F l o r i d a
more t h a n 15 years ago. I n the case of flat plate solar collectors, I personally
know t h a t they were successfully operated i n south F l o r i d a as early as 1930.
W i t h these thoughts i n mind, I t h i n k i t w o u l d be more accurate f o r us to t h i n k
of solar energy not as a new technology but r a t h e r as a neglected technology,
f o r its use declined, not because i t was inoperable, but because i t was more convenient and often more profitable to use some alternative w h i c h i n v a r i a b l y employed the consumption of our non-renewable resources.
Since the flat plate collector has been i n use f o r many years, i t is not realistic
to t h i n k t h a t there w i l l be any great "breakthrough" i n technology t h a t w i l l
vastly improve the efficiency of these collectors. The obvious t r u t h of this
statement becomes evident when i t is realized that, under n o r m a l circumstances
and w i t h a flat plate solar collector of good quality, i t is possible to achieve
overall t h e r m a l efficiencies i n the range of 50% when the equipment is operating
so as to produce hot water of approximately 150° F. Since the best possible
efficiency would be 100%, i t is evident t h a t there w i l l be no design breakthrough
which w i l l double or t r i p l e the output of these devices. The cost of producing
these flat plate collectors at the present time is r a t h e r expensive, and the
average cost per square foot of solar collector surface ranges f r o m 10 to 20
dollars. I believe that, through the proper encouragement, the m a n u f a c t u r i n g
community w i l l be able to employ mass production techniques, proper m a t e r i a l
selection and efficient m a r k e t i n g procedures to significantly reduce the cost per
square foot of collector surface so t h a t a breakthrough i n this area i n my
opinion is not only feasible, i t is to be expected. The incentive required to
stimulate the i n d u s t r i a l i s t is the profit t h a t w i l l be visualized as he views the
potential of a r a p i d l y expanding market f o r his product.
The same flat plate collectors t h a t are used f o r f u r n i s h i n g potable hot water
to residences or small commercial operations may be used to operate absorption
type r e f r i g e r a t i o n systems or other types of refrigeration devices w h i c h may
be used f o r r e f r i g e r a t i o n or a i r conditioning purposes. Eleven such devices have
been produced and operated i n the laboratories at the U n i v e r s i t y of F l o r i d a
over a period of the last twenty years. W h i l e most of these systems were on
the prototype scale, some have had sufficient capacity to power conventional
a i r conditioning systems. Currently we have i n the solar test house at the
U n i v e r s i t y of F l o r i d a a three-ton, i n t e r m i t t e n t , a m m o n i a / w a t e r a i r conditioning
system which was successfully operated d u r i n g this past summer. We are
currently i n the process of automating this system so t h a t i t w i l l not require
manual control. We expect to have this automation complete so t h a t the system
w i l l w o r k effectively d u r i n g the next cooling season.
Currently i n use i n the solar test house are t w o heating systems which
employ the hot water produced by flat plate collectors to f u r n i s h the heat
required f o r the residents who occupy this house. E i t h e r of the heating systems
are designed so t h a t they operate f r o m thermostatic controls, and one cannot
t e l l whether the house is being heated w i t h solar energy or some other more
conventional method. The t w o heating systems t h a t are currently i n use i n
the house a r e :
(a) Baseboard hot water con vectors.
(&) Forced a i r circulation system which utilizes a hot water coil heat
exchanger.
86
E a c h of these systems has been tested and f o u n d to be capable of s u p p l y i n g
t h e needs of t h e residence.
Other projects, w h i c h are c u r r e n t l y being investigated a t the U n i v e r s i t y of
F l o r i d a , include the solar p u r i f i c a t i o n of waste w a t e r , power generation f o r resi d e n t i a l requirements, cooking devices w h i c h employ hot fluids produced by
solar concentrators, solar t r a c k i n g devices w h i c h are t o t a l l y powered by solar
energy, a n d v a r i o u s other equipment d i r e c t l y or i n d i r e c t l y r e l a t e d t o these
projects.
O u r records of energy consumed by the hot w a t e r system, w h i c h has been
i n operation a t the solar test house f o r a number of years, indicates t h a t w e
save a p p r o x i m a t e l y 85% of the energy required to heat potable w a t e r f o r the
residence. W h i l e we d i d not have sufficient d a t a on the energy savings r e l a t e d
to the h e a t i n g of the residence, i t is estimated t h a t w e w i l l be able to f u r n i s h
a t least 80% of the h e a t i n g requirements of our residence t h r o u g h solar energy.
T h e system is designed so t h a t i t can operate effectively f o r several days even
w h e n there is m i n i m a l sunshine. Subsequent to such a period of t i m e w e need
several days of good sunshine i n order to recharge the storage t a n k . I f w e consider only the savings on space h e a t i n g a n d hot w a t e r h e a t i n g f o r t h e n o r m a l
A m e r i c a n residence, I feel t h a t i t w o u l d be safe to say t h a t we could reduce
these u t i l i t y b i l l s by 75% t h r o u g h the use of solar energy. Such a savings is
c e r t a i n l y significant to the s m a l l businessman or home owner w h o is c u r r e n t l y
becoming p a i n f u l l y a w a r e of the r a p i d l y increasing cost of energy.
W h i l e I do n o t t h i n k t h a t solar energy is a " c u r e - a l l " f o r the energy problem,
I do believe t h a t i t is one source of energy w h i c h should c e r t a i n l y be u t i l i z e d ,
since i t is constantly being renewed. I t should be used wherever i t is possible
to employ i t s use successfully, a n d the non-renewable fuels should be u t i l i z e d
o n l y f o r those purposes t h a t cannot adequately be met t h r o u g h t h e use of some
t y p e of renewable energy.
[The material referred to by Mr. Morrison in his prepared statement may be found at the end of the hearing on page 165.]
Mr. MOORHEAD. Thank you all very much.
I have some questions in writing that I would like to submit to
you, but I would not ask them orally because of the time constraints.
Mr. MOORHEAD. Just one question—and this would be to you, Mr.
Butt, and any other comments from the others.
I n your statement, on page 3, you spoke of solar cooling as technically practical today but not economically feasible.
Do you mean it is not economically feasible when used by itself, or
as part of a larger system for cooling ?
Mr. B U T T . Well, basically, I would say that economically feasible
means that the cumulative savings will equal the first costs in no more
than 10 years. You cannot achieve that with solar cooling today. That
is, it would take more than 10 years for the savings to equal the first
costs.
Mr. MOORHEAD. Is there any dissent from the panel ?
[No response.]
Mr. MOORHEAD. Mr. St Germain.
Mr. S T G E R M A I N . I have no questions.
Mr. MOORHEAD. Mr. Rousselot ?
Mr. ROUSSELOT. I will try to be brief.
Mr. DeBlois, I was interested, since you serve as chairman of the
solar energy application committee for your fuel institute, in knowing whether you have any test units now going in the area that
your people serve ?
Mr. D E B L O I S . We are in the process, Mr. Rousselot, of installing and
developing seven water heating units, which will be installed. None
has been installed and is in actual operation at this time.
87
Mr. ROUSSELOT. Y O U have none in operation now ?
Mr. D E B L O I S . We have none now.
Mr. ROUSSELOT. But you plan to have seven in operation when ?
Mr. D E B L O I S . They will start about in December, and I assume all
of them will be in. Mr. Burkhardt is giving me a more updated figure
than I am giving you, but from a practical standpoint, I think they
will all be installed by, let us say, next A p r i l or May.
Mr. ROUSSELOT. Next spring?
Mr. D E B L O I S . Yes, sir. They will be operating.
Mr. ROUSSELOT. And will they be able to provide cooling effects as
well as heating, or just heating?
Mr. D E B L O I S . We are not involving ourselves at this time with
cooling, sir. There is a reason for this, and Mr. Burkhardt will answer
that.
Mr. B U R K H A R D T . I n New England, we do not have a supercooling
problem. There are only an average of 16 days a summer throughout
the region that require cooling.
Mr. ROUSSELOT. I appreciate that. I was just asking the question.
Then you would be prepared to give us some kind of a report by,
say, next July, as to what the effect of this has been ?
Mr. D E B L O I S . We should be able to give you an initial report.
Mr. ROUSSELOT. W i l l they be in different States ?
Mr. D E B L O I S . There are two States for the water heating. Three
units are going to be installed in the State of Rhode Island; four
units are going to be installed in the State of Connecticut. A t some
point after that, we hope to install a whole house heating system.
Mr. ROUSSELOT. Are these privately financed, or did you get a Government grant ?
Mr. D E B L O I S . A t this time, the units, the water heating units, in
Rhode Island and Connecticut, are being privately financed through
the institute.
Mr. ROUSSELOT. So the seven units are all being basically privately
financed ?
Mr. D E B L O I S . That is correct.
Mr. ROUSSELOT. Did you have difficulty in getting the financing ?
Mr. D E B L O I S . Mr. Burkhardt, do you want to tell him about the
financing ?
Mr. B U R K H A R D T . The institute appropriated $ 5 0 , 0 0 0 , or asked the
finance committee to appropriate $ 5 0 , 0 0 0 .
Mr. ROUSSELOT. Which came from membership dues ?
Mr. B U R K H A R D T . Yes. And it might interest you, in the space of
three phone calls to three dealers, they each contributed $10,000 in a
single day. Mr. DeBlois' company was one of the companies that put
out $ 1 0 , 0 0 0 . And the remaining $ 2 0 , 0 0 0 is coming from the six affiliate
associations that make up N E F I , which is a federation. We raised it
in 1 week.
Mr. ROUSSELOT. We ought to put you in charge of New York City.
[Laughter.]
I n other words, because it is a test, your own membership really
contributed ?
Mr. D E B L O I S . Yes. We felt it was to the benefit of the consumers in
our area. We certainly have gotten a lot out of the industry, our home
heating oil industry. And the members in the institute felt that this
88
was an opportunity that just could not be missed to add solar heating,
hopefully.
Mr. ROUSSELOT. Are these in new or existing homes ?
Mr. D E B L O I S . These will all be retrofits.
Mr. ROUSSELOT. And do you have a single builder doing all of them ?
Mr. D E B L O I S . N O , sir. I t w i l l be individual homeowners that w i l l be
contacted, or have been contacted already, in some instances, that w i l l
add solar panels, either in conjunction with an existing water heater,
or with a new water heater, or an existing tankless heater.
Mr. ROUSSELOT. D O they come from your association ?
Mr. B U T T . Well, there is one quite substantial manufacturer of solar
water heaters in the Boston area.
Mr. ROUSSELOT. I S that the one you are using ?
What I am asking is, did you have trouble finding viable manufacturers to produce this equipment ?
Mr. D E B L O I S . N O . I think we had just exactly the opposite.
Mr. ROUSSELOT. Thank you. I appreciate that.
Mr. M O O R H E A D . Mrs. Spellman.
Mrs. S P E L L M A N . I would just ask one question.
On those buildings that are being retrofitted, was there a costeffectiveness factor involved in that?
Mr. D E B L O I S . I t was estimated by the institute at this time that the
equipment itself, because i t is going to be seven different types of
equipment, basically, i t w i l l be slightly different, it will run somewhere
between $600 and $1,800 for the equipment itself. You could generally
double that, let us say, by the time you get it installed. Then, of course,
it has to be monitored. We have already spoken with two institutes of
higher learning to monitor the equipment for results. I t is a costly
project.
Mrs. S P E L L M A N . Thank you. Thank you, Mr. Chairman.
Mr. M O O R H E A D . Thank you very much, gentlemen. We appreciate it.
I am sorry that we had to cut the time short, because we could have
gone on at length. But I know you did not want to come back tomorrow,
and we could not find a way of arranging it for this afternoon.
The subcommittee would now like to hear from Mr. Claude E. Barfield, Deputy Assistant Secretary for Research and Demonstration of
the Department of Housing and Urban Development.
STATEMENT OF CLAUDE E. BARFIELD, DEPUTY ASSISTANT SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, OFFICE OF RESEARCH AND DEMONSTRATION
Mr. B A R F I E L D . Mr. Chairman, I w i l l submit a statement for the
record, and I would make two points about the thrust of it.
One is that, basically, our report is not in disagreement with much
that was said here today. The major problem area is the question of
timing with respect to incentives. We feel that one of the mandates to
H U D and to E R D A under the demonstration program is to take a
look at any incentives which should or could be utilized and make recommendations. Within the time-frame of the demonstration the H U D
Secretary and the E R D A Administrator will make those
recommendations.
89
Mr. MOORHEAD. Then I would like to ask you just one question. And
that is when ?
When will this demonstration period be ?
Mr. BARFIELD. Well, the demonstration period for heating and cooling is for 5 years. And we think during the last 2 years of the demonstration we will have enough experience behind us, both in regard to
the cost of the systems as well as the performance by region, to give
some indication to the Congress—indeed, definite indication to the
Congress as we are mandated to do under the Demonstration Act—as
to what, i f any, incentives are needed. That is a part of our charge
already.
Mr. MOORHEAD. When did you say ?
Mr. BARFIELD. I could not give you an exact date, but I would say
some time within the last 2 years of the demonstration.
Mr. MOORHEAD. And that is a 5-year demonstration period?
Mr. BARFIELD. Well, we are 1 year into the demonstration. I t would
be some time, I assume, in 1978 or 1979.
Mr. MOORHEAD. Well, I think it could be expedited.
[The prepared statement of Mr. Barfield follows:]
PREPARED S T A T E M E N T OF C L A U D E E . B A R F I E L D , D E P U T Y A S S I S T A N T SECRETARY
FOB R E S E A R C H A N D D E M O N S T R A T I O N , D E P A R T M E N T OF H O U S I N G A N D U R B A N
DEVELOPMENT
M r . C h a i r m a n and members of the subcommittee, I appreciate t h e o p p o r t u n i t y
to discuss w i t h you the role of the D e p a r t m e n t of H o u s i n g a n d U r b a n Development i n the F e d e r a l solar h e a t i n g a n d cooling program, and i n p a r t i c u l a r our
comments on the v a r i o u s proposals before the Congress w h i c h w o u l d provide
financial incentives f o r the use of solar energy.
The p o t e n t i a l value of solar energy i n reducing our N a t i o n ' s need f o r fossil
fuels and i n reducing the cost of energy to i n d i v i d u a l s and commercial establishments has been discussed i n many forums. Congress clearly stated the case f o r
using solar energy t o heat a n d cool buildings and heat domestic w a t e r i n the
Section on F i n d i n g s a n d Policy i n the Solar H e a t i n g and Cooling D e m o n s t r a t i o n
A c t of 1974, P.L. 93-409. I need not, therefore cite statistics on f u e l use and the
p o t e n t i a l f u e l savings t h r o u g h the use of solar energy.
I t h i n k i t iS/ useful, however, t o begin w i t h an abbreviated overview of the
Federal p r p g f a m i n solar h e a t i n g and cooling w h i c h has been developed to c a r r y
out the requirements of P.L. 93-409. P.L. 93-409, as enacted, called upon the
Secretary of H o u s i n g a n d U r b a n Development and t h e A d m i n i s t r a t o r of the
N a t i o n a l A e r o n a u t i c a l a n d Space A d m i n i s t r a t i o n to develop and conduct the
solar h e a t i n g a n d cooling demonstration program. The legislation creating the
Energy Research a n d Development A d m i n i s t r a t i o n , however, t r a n s f e r r e d overall
responsibility f o r energy research to E R D A . I n addition, the N A S A and Nat i o n a l Science F o u n d a t i o n responsibilities stated i n P.L. 93-409 were t r a n s f e r r e d
t o E R D A . H U D ' s role was not changed.
I n response to t h i s legislation, E R D A , H U D and a number of other agencies
developed a comprehensive p l a n f o r the solar heating and cooling program. T h i s
plan, i n i t i a l l y published i n M a r c h as the I n t e r i m Report, N a t i o n a l P l a n f o r
Solar H e a t i n g a n d Cooling, E R D A - 2 3 , has j u s t been revised and reissued as
the N a t i o n a l P r o g r a m f o r Solar H e a t i n g and Cooling, E R D A - 2 3 A.
The N a t i o n a l P r o g r a m calls f o r a f o u r - p a r t approach to meeting the goal
of widespread u t i l i z a t i o n of solar energy f o r h e a t i n g and cooling, and assigns
responsibility to v a r i o u s agencies f o r different p a r t s of the program.
T h e first p a r t involves research i n t o the use of solar energy, i d e n t i f i c a t i o n and
testing of new m a t e r i a l s and m a t e r i a l applications, and development of new
techniques t o use solar energy f o r cooling. These a c t i v i t i e s w i l l be undertaken
by E R D A , the N a t i o n a l Science Foundation, and other agencies at E R D A ' s
reauest.
The second p a r t is concerned w i t h t h e development of solar energy systems,
i n c l u d i n g i m p r o v e m e n t to e x i s t i n g systems and the development of new system
90
concepts. T h i s a c t i v i t y has been assigned to N A S A ' s M a r s h a l l Space F l i g h t
Center, w h i c h has issued a series of Requests f o r Proposals f o r solar energy
system development, f o r component development, and f o r i n s t r u m e n t a t i o n systems to be used i n the demonstration program.
T h e t h i r d p a r t of the p r o g r a m has received the greatest public i n t e r e s t a n d
w i l l i n v o l v e the largest e x p e n d i t u r e s ; t h i s is the demonstration of solar h e a t i n g
a n d cooling systems i n a c t u a l r e s i d e n t i a l a n d commercial i n s t a l l a t i o n s . Respons i b i l i t y f o r the demonstration a c t i v i t i e s has been split, w i t h E R D A m a n a g i n g
demonstrations i n commercial i n s t a l l a t i o n s a n d H U D s u p p o r t i n g s i m i l a r ins t a l l a t i o n s i n single-family, townhouse a n d a p a r t m e n t r e s i d e n t i a l u n i t s . These
d e m o n s t r a t i o n projects w i l l be selected t h r o u g h competitive proposals s u b m i t t e d
i n response t o f o r m a l solicitations. T h i s competitive procedure w i l l p e r m i t E R D A
and H U D t o select t h e projects w h i c h best meet the p r o g r a m objectives.
T h e demonstration p o r t i o n of the p r o g r a m has t w o objectives. F i r s t , i t w i l l
p r o v i d e a n o p p o r t u n i t y to test solar energy i n s t a l l a t i o n s i n a w i d e v a r i e t y of
situations i n v o l v i n g d i f f e r e n t climates, geographic locations, housing types a n d
designs, a n d technical approaches. D a t a f r o m these projects w i l l p r o v i d e invaluable i n f o r m a t i o n i n the development of technical standards, financing a l t e r n a tives, a n d m a r k e t i n g procedures.
Second, the demonstration p r o g r a m w i l l offer a chance f o r the public to see
w h a t solar energy is a l l about, or, as t h e automobile salesman puts i t , to " s l a m
the doors a n d k i c k the t i r e s . "
Three p r o j e c t solicitations w e r e issued t h i s f a l l i n the d e m o n s t r a t i o n p r o g r a m .
T h e first, P r o g r a m O p p o r t u n i t y Announcement ( o r P O A ) D S E 75-1, was issued
j o i n t l y by E R D A and H U D . T h e P O A solicits proposals f o r solar energy systems
w h i c h can be used i n the demonstration p r o g r a m i n either r e s i d e n t i a l or comm e r c i a l installations, or i n both. A solar energy s y s t e m , t o q u a l i f y f o r t h i s
solicitation, w i l l u s u a l l y consist of a collector w h i c h receives the solar energy
r a d i a t i o n a n d converts i t to heat energy, a method of t r a n s p o r t i n g t h i s energy to
storage or to i t s p o i n t of use—the usual t r a n s p o r t mechanisms are l i q u i d s such
as w a t e r or c e r t a i n oils, or a i r — a storage subsystem w h i c h can h o l d t h e energy
f o r use a t n i g h t or w h e n t h e sun is n o t shining, a heat exchanger o r other
device to d i s t r i b u t e t h e heat i n t o the r e g u l a r h e a t i n g syystem, a n d a c o n t r o l
system w h i c h w i l l t u r n on a n d off the v a r i o u s valves, dampers, pumps, fans
or other components of the system.
T h e P O A closed on Monday, November 3. A l l proposals w i l l be c a r e f u l l y rev i e w e d by qualified technical panels f r o m v a r i o u s F e d e r a l agencies, supported
b y a technical consulting t e a m p r o v i d e d by the A m e r i c a n Society of H e a t i n g ,
R e f r i g e r a t i n g a n d A i r c o n d i t i o n i n g Engineers. The panel w i l l determine w h e t h e r
the proposed system has been developed t o the p o i n t t h a t i t can be used i n
d e m o n s t r a t i o n u n i t s a t a n acceptable level of r i s k .
Systems w h i c h are determined to be ready a n d a p p r o p r i a t e f o r the r e s i d e n t i a l
d e m o n s t r a t i o n p r o g r a m w i l l be matched w i t h selected project locations i n
v a r i o u s areas of the N a t i o n t o assure t h a t good research data can be secured
on system performance a n d on the n a t u r e of local development problems w h i c h
m a y exist. These projects w i l l be selected t h r o u g h solicitations issued on a l o c a l
basis to builders a n d developers w h o are interested i n the p r o g r a m a n d w i s h
to participate i n it.
T h e second p r o j e c t s o l i c i t a t i o n is Request f o r G r a n t A p p l i c a t i o n ( o r R F G A )
No. H-2353, issued by H U D on September 26, w i t h a due date of November 10.
T h i s s o l i c i t a t i o n calls f o r project proposals w h i c h i n v o l v e a complete, integrated,
p r o j e c t package—building, land, financing, and solar energy system. Projects
under t h i s s o l i c i t a t i o n w i l l d i f f e r f r o m those using systems selected t h r o u g h the
P r o g r a m O p p o r t u n i t y Announcements since we w i l l also accept "passive" systems w h e r e t h e b u i l d i n g design i t s e l f is p a r t of the solar package, as w e l l as
more " c o n v e n t i o n a l " approaches where a separate system is i n s t a l l e d i n the
b u i l d i n g much i n t h e same w a y t h a t a r e g u l a r h e a t i n g system is used. W e don't
k n o w h o w m a n y proposals w i l l be received, of course, b u t over 4.000 copies of
t h e Request were m a i l e d out i n response to requests f r o m i n d i v i d u a l s , manuf a c t u r e r s , builder/developers architects, public agencies, and others. W e expect
t o m a k e at least 20 a w a r d s a f t e r the proposal e v a l u a t i o n process is completed,
p r o b a b l y l a t e i n December.
The t h i r d p r o j e c t solicitation issued t h i s f a l l is E R D A ' s P r o g r a m O p p o r t u n i t y
N o t i c e ( o r P O N ) D S E 75-2. I t calls f o r i n t e g r a t e d p r o j e c t package proposals
f o r commercial projects, s i m i l a r to t h e i n t e g r a t e d r e s i d e n t i a l p r o j e c t
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w h i c h H U D is seeking under R F G A H-2353. Proposals i n response t o P O N D S E
75-2 are due at E R D A on November 26.
The demonstration projects selected under either H U D R F G A H-2353 or E R D A
PON D S E 75-2 w i l l receive grants or contracts providing f o r f u n d i n g f o r p a r t
or a l l of the solar energy portion of the project. F o r example, f u n d i n g could
cover the purchase and i n s t a l l a t i o n costs of the solar system, the costs of buildi n g modifications to adapt the b u i l d i n g structure f o r the solar system, and the
cost of designing these modifications. I n general, the solar demonstration project
funds w i l l not be used to cover the basic b u i l d i n g costs. Projects i n v o l v i n g
"passive" approaches where the b u i l d i n g is an integral p a r t of the solar package
w i l l be treated on an i n d i v i d u a l basis.
I should note here t h a t the Government w i l l not take t i t l e t o either the building or the solar energy i n s t a l l a t i o n under this f u n d i n g approach. Rather, we
are providing a mechanism to get solar energy demonstrated, and contracting
f o r the r i g h t to obtain data f r o m the i n s t a l l a t i o n f o r a period of five years, as
authorized i n P.L. 93-409.
The f o u r t h p a r t of the overall program is the development of a m a r k e t f o r
solar energy. T h i s a c t i v i t y involves the creation of appropriate standards and
system qualification procedures, the identification of potential barriers to widespread acceptance and development of ways to overcome these barriers, and the
dissemination of i n f o r m a t i o n on solar energy to a l l interested parties.
The i n f o r m a t i o n dissemination programs is a j o i n t E R D A - H U D responsibility,
and w i l l involve the use of E R D A ' s Technical I n f o r m a t i o n Center at Oak Ridge
as a p r i m a r y depository of solar i n f o r m a t i o n I n the residential demonstration
program, H U D w i l l collect data f r o m the demonstration projects and f r o m
other sources, w i l l assemble these data into the proper f o r m a t f o r storage and
processing at Oak Ridge, and w i l l develop and implement a p r o g r a m to disseminate this i n f o r m a t i o n to a l l potential users. This dissemination aspect of the
program is very important. W e must get accurate and timely demonstration data
out to the builders, the bankers, the m a n u f a c t u r i n g industry, and—most imp o r t a n t l y — t h e housing customer.
The other market development a c t i v i t i e s — i d e n t i f y i n g and overcoming barriers
and developing appropriate standards—are also H U D functions under the demonstration program. Many potential barriers to the use of solar energy have been
discussed i n the l i t e r a t u r e r e l a t i n g to the solar energy field. Among these are
the impact of b u i l d i n g codes and zoning regulations upon the practical use of
solar energy; attitudes of labor organizations, builders, and other elements of
the housing i n d u s t r y ; the pricing practices of u t i l i t y companies; the generally
higher first cost of solar energy i n s t a l l a t i o n s ; and concern regarding the reliabili t y of the systems.
I n the demonstration program we w i l l be collecting data on a l l of these factors
and evaluating t h e i r real impact on the development of a solar energy market.
M a n y of these factors are interrelated w i t h our function of developing appropriate performance standards and w i t h the question of whether incentives are
necessary to encourage the more widespread u t i l i z a t i o n of solar systems. The
concern f o r r e l i a b i l i t y , f o r example, can best be answered by w a r r a n t y protection based upon accurate performance data, w h i c h we w i l l be obtaining f r o m
the demonstration projects. As a second example, h i g h first costs may call f o r
the provision of some type of financial or other incentive.
I w o u l d l i k e to discuss the related issues of standards and the possible need
f o r incentives i n somewhat greater detail w i t h i n the general context of some
of the legislative proposals now pending before the Congress.
H.R. 3849, w h i c h has been referred to the House Committee on Banking,
Currency, and U r b a n Affairs, w o u l d authorize this Department to make direct
loans to homeowners and builders f o r the purchase and i n s t a l l a t i o n of qualified
solar heating and solar heating and cooling equipment. Another legislative proposal (H.R. 6860) w o u l d provide t a x credits to homeowners f o r installation of
solar energy equipment i n their dwellings.
One specific responsibility assignment to the Secretary i n P.L. 93-409 is t h a t
of studying " t h e necessity of a program of incentives to accelerate the commercial application of solar heating and cooling technology. This study is being
incorporated i n t o our demonstration program, but we do not at this t i m e have
sufficient i n f o r m a t i o n to determine whether incentives are necessary, or w h a t
the best approach to p r o v i d i n g any needed incentive may be. F o r this reason,
i t appears t h a t the proposed legislation on incentives is premature.
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The purpose of these proposed incentives, of course, is to assist the homeowner i n absorbing some of the a d d i t i o n a l cost of a solar i n s t a l l a t i o n so t h a t the
buyer can a f f o r d to i n s t a l l the system, and thereby reduce his demand f o r conventional fuels. The need f o r such incentives, however, depends upon the economics of the p a r t i c u l a r s i t u a t i o n and upon the current practices i n the local
financial community. The assumption u n d e r l y i n g these proposals is t h a t a solar
energy system w i l l reduce the demand f o r conventional fuels, a n d thereby reduce
the average m o n t h l y operating costs f o r f u e l to the property owner. Based on
his f u e l costs, on the cost of money, and on some estimated period of amortization, i t is possible to determine whether the a d d i t i o n a l first cost of the solar energy
system w i l l pay f o r itself by reducing the expenditures f o r conventional fuels. I n
areas where the only available conventional energy source is electricity and
where the costs of electricity are approaching 5 ^ / k i l o w a t t hour, i t is quite l i k e l y
t h a t no a d d i t i o n a l economic incentive w o u l d be required. On the other hand, i n
areas where n a t u r a l gas is available a t controlled prices, solar energy systems
are not c u r r e n t l y competitive.
I n addition, each of the proposed B i l l s includes system cost l i m i t s and system
performance level requirements. Whether either the costs or the performance
levels are realistic and r a t i o n a l cannot yet be determined based on our current
data.
A l t h o u g h solar energy installations have been around f o r over t h i r t y years,
most of them have been i n d i v i d u a l experimental projects. The most recent edit i o n of a continuing p r i v a t e survey of solar heated buildings, updated to September 9 of t h i s year, lists 163 buildings. There are probably another 100 to 200
u n i t s w h i c h have been b u i l t or are being designed. Almost a l l have been one-ofa - k i n d units w i t h costs t h a t reflect only their special nature. Good, long t e r m
performance and cost data are not generally available.
I n f o r m a t i o n on systems is also limited. System costs are being quoted, or estimated, at everywhere f r o m a f e w hundred dollars to tens of thousands of doll a r s f o r various types of installations, depending on local climatic and geographic
conditions. Performance claims are being made based on evaluation procedures
developed by the system producer, w i t h o u t any clear correlation to procedures
used by other producers; thus, i t is almost impossible to make any useful
comparisons.
The demonstration program w i l l provide " r e a l - t i m e " performance and cost data,
collected and evaluated on a consistent, common basis. T h i s w i l l provide the
i n f o r m a t i o n needed by the Secretary to c a r r y out her responsibility to recommend
incentives, and needed by the Congress i n determining w h a t forms incentives
should take.
I n their present form, these proposed incentive programs could result i n w i n d f a l l s to those homeowners and others w h o could economically j u s t i f y the use
of solar energy based on c u r r e n t energy costs, w h i l e at the same t i m e they may
not provide nearly enough incentive tc a t t r a c t new solar energy installations
w h i c h are i n competition w i t h lower price conventional fuels such as n a t u r a l
gas at controlled prices.
F o r example, a loan under H.R. 3849 can provide 75 percent of a m a x i m u m
system cost of $8,000, to be repaid over 8 years at a rate equal to the average
cost of Federal borrowing plus % percent f o r administration. F o r a loan interest rate of 6 ^ percent, the annual p r i n c i p a l and interest payment is approximately $964. I f , as is likely, such a system w o u l d provide approximately 75
percent of the t o t a l hot water and space heating loads, this is equivalent to a
t o t a l yearly heating b i l l of $1,285. I n other words, i f the homeowner is c u r r e n t l y
p a y i n g more t h a n $1,285 f o r heating and hot water annually, the solar energy
system w o u l d save h i m money under this f o r m u l a . Note, though, t h a t this does
not include the $2,000 out-of-pocket p o r t i o n of the cost.
A t this time, only electric heat i n some areas of the country w i l l approach
this cost f o r energy, and therefore, the value of the loan program under H . R .
3849, as an economic incentive is probably limited. Incidentally, the 25 percent
t a x credit provisions included i n Section 232 of H.R. 6860 w i l l result i n a s i m i l a r
s i t u a t i o n i f the balance of $6,000 is borrowed on an F H A / i n s u r e d T i t l e I prope r t y improvement loan.
I n evaluating various incentive approaches, consideration must be given to
their impact on the Federal budget. W e have not yet made such an analysis,
since, as I noted earlier, we do not have good data on the cost factors and
size of the demand w h i c h are essential elements i n this analysis. W e recom-
93
mend, therefore, t h a t a n y a c t i o n on incentives be d e f e r r e d u n t i l t h e need f o r
a n d m e t h o d a n d costs of a p p r o p r i a t e i n c e n t i v e p r o g r a m s can be determined
d u r i n g t h e l a t t e r p a r t of the d e m o n s t r a t i o n p r o g r a m .
A n o t h e r aspect of the i n c e n t i v e problem i n t e r a c t s w i t h the d e m o n s t r a t i o n
p r o g r a m . A l l of t h e proposed B i l l s w o u l d l i m i t incentives to solar energy systems w h i c h a r e " q u a l i f i e d " under standards a n d procedures established under
the a u t h o r i t y of P.L. 93-409. T h i s i s a n a p p r o p r i a t e w a y to protect the public,
the F e d e r a l government a n d t h e l e n d i n g i n s t i t u t i o n s .
P.L. 93-409 calls f o r I n t e r i m P e r f o r m a n c e C r i t e r i a t o be developed w i t h i n
120 days a f t e r enactment, a n d D e f i n i t i v e P e r f o r m a n c e C r i t e r i a to be developed
as soon as possible, " u t i l i z i n g d a t a a v a i l a b l e f r o m the d e m o n s t r a t i o n programs."
T h e I n t e r i m P e r f o r m a n c e C r i t e r i a w e r e developed by H U D a n d the N a t i o n a l
B u r e a u of S t a n d a r d s w i t h i n the specified time, b u t these C r i t e r i a are not sufficient f o r a p r o g r a m of system qualification, since m a n y of the test methods
a n d e v a l u a t i o n procedures m u s t be developed a n d proved i n t h e d e m o n s t r a t i o n
program.
A t the same t i m e , a p p r o p r i a t e solar standards a r e needed n o w by t h i s Dep a r t m e n t as a basis against w h i c h t o evaluate e x i s t i n g solar energy systems
f o r H U D mortgage insurance purposes, as w e l l as to p r o v i d e a basis f o r any
f o r t h c o m i n g i n c e n t i v e programs. W e have, therefore, i n s t i t u t e d w i t h N B S the
development of a n i n t e r m e d i a t e set o f M i n i m u m P r o p e r t y Standards f o r solar
i n s t a l l a t i o n s w h i c h can be used u n t i l the D e f i n i t i v e P e r f o r m a n c e C r i t e r i a are
ready. These i n t e r m e d i a t e M i n i m u m P r o p e r t y S t a n d a r d s w i l l be ready i n M a y
of 1976.
I t is our recommendation, then, t h a t any consideration of financial incentives f o r solar energy systems f o r h e a t i n g a n d cooling b u i l d i n g s be delayed
u n t i l the need f o r , effective f o r m of, and cost of such incentives can be analyzed based on d a t a f r o m the d e m o n s t r a t i o n p r o g r a m .
T h a n k you.
Do you have any questions, Mrs. Spellman?
M r s . SPELLMAN. NO.
Mr. MOORHEAD. Thank
you very much, Mr. Barfield.
[The following are written questions submitted by Congressman
Moorhead to the witnesses, along with their answers:]
QUESTIONS S U B M I T T E D BY CONGRESSMAN MOORHEAD TO M R . B U R K H A R D T AND
MR. B U T T
Q u e s t i o n 1 . M r . B u r k h a r d t or M r . B u t t , do y o u t h i n k t h e l o w - i n t e r e s t d i r e c t
l o a n p r o g r a m as proposed i n t h i s l e g i s l a t i o n is the best w a y t o encourage greater
use of solar h e a t i n g a n d cooling equipment, or w o u l d other incentives be more
effective, such as t a x w r i t e - o f f s o r d i r e c t loans to m a n u f a c t u r e r s ; F e d e r a l H o m e
L o a n B a n k B o a r d home mortgage purchase c o m m i t m e n t s to lenders m a k i n g
mortgage loans on homes w i t h solar energy systems ?
REPLY BY MR. BURKHARDT
A n s w e r . I t is o u r belief t h a t t a x w r i t e - o f f s or t a x incentives w o u l d be a greater
s t i m u l u s to t h e i n s t a l l a t i o n a n d use of solar h e a t i n g e q u i p m e n t ; especially f o r
people w i t h homes v a l u e d a t $40,000 or more, i n v o l v i n g a r e t r o f i t program. A
l o n g t e r m , l o w interest, d i r e c t l o a n could be of greater v a l u e f o r solar energy
i n s t a l l a t i o n f o r people w i t h incomes under $25,000 a n d whose homes are valued
a t less t h a n $40,000.
REPLY BY MR. BUTT
A n s w e r . W e believe t h a t t h e r e are a n u m b e r of c o n s t r a i n t s w h i c h m u s t be
resolved i n order to r a p i d l y accelerate c o m m e r c i a l i z a t i o n of solar energy applications. A t t h e consumer level, one of the c o n s t r a i n t s is the a b i l i t y to o b t a i n
financing f o r a solar i n s t a l l a t i o n . H . R . 3849 a n d H . R . 8524 w o u l d resolve t h i s
problem. T h e r e is also a p r o b l e m of " f i r s t cost." T h e f a c t t h a t t h e i n t e r e s t rates
i m p l i c i t i n t h e proposed l e g i s l a t i o n are l o w e r t h a n n o r m a l mortgage or home
i m p r o v e m e n t l o a n i n t e r e s t rates has only moderate effect upon t h e consumer's
m o n t h l y payments a n d therefore, only moderate effect u p o n t h e consumer's
"cash flow." Incentives, income t a x credits or the like, exercise more leverage
on " f i r s t cost" as is spelled out i n t h e examples i n c o r p o r a t e d i n the w r i t t e n
62-322 O - 75 - 7
94
statement s u b m i t t e d November 5. A n o t h e r c o n s t r a i n t m i g h t be called "credib i l i t y . " T h e consumer needs to be assured t h a t solar systems w i l l p e r f o r m . T h e
d e m o n s t r a t i o n p r o g r a m i m p l e m e n t i n g the Solar H e a t i n g a n d Cooling Demons t r a t i o n A c t of 1974 bears upon t h i s c o n s t r a i n t , p r o v i d e d t h a t i m p l e m e n t a t i o n
does r e s u l t i n a n adequate n u m b e r of i n d i v i d u a l d e m o n s t r a t i o n s adequately
d i s t r i b u t e d across the N a t i o n .
T h e comprehensive p r o g r a m developed by the Solar E n e r g y I n d u s t r i e s Associat i o n , a copy of w h i c h i s attached, covers these a n d o t h e r r e q u i r e d actions i n
o u t l i n e f o r m is as f o l l o w s :
SOLAR E N E R G Y I N D U S T R I E S A S S O C I A T I O N , PROPOSALS FOR T E M P O R A R Y SOLAR E N E R G Y
I N C E N T I V E S A N D FOR O T H E R GOVERNMENT A C T I O N S TO ACCELERATE SOLAR E N E R G Y
APPLICATION
SUMMARY
T h e f o l l o w i n g summarizes present t h i n k i n g of S E I A —
H o m e o w n e r i n c e n t i v e s . — A t a x c r e d i t t o homeowners e q u a l to 40 percent o f
t h e first $2,000 a n d 25 percent of t h e n e x t $6,000 invested i n equipment t o " p r o duce" solar energy. T o be eligible f o r i n c e n t i v e t a x credits, the i n s t a l l a t i o n
m u s t meet " T e m p o r a r y S t a n d a r d s " n o w being developed b y N B S a n d / o r f u t u r e
A N S I N a t i o n a l Consensus Standards.
Incentives f o r m u l t i f a m i l y residential, commercial, a n dindustrial applicat i o n s . — A t a x c r e d i t equal t o 20 percent of the i n v e s t m e n t or p r o v i s i o n f o r five
y e a r r a p i d a m o r t i z a t i o n a t t h e o p t i o n o f the investor. E l i g i b i l i t y as above.
I n c e n t i v e s f o r n o n - p r o f i t ' e n t i t i e s . — A g r a n t equal t o 40 percent of t h e investment. A p p l i e s t o state a n d l o c a l governments, schools, hospitals, n o n - p r o f i t
corporations, etc. E l i g i b i l i t y as above.
I n c e n t i v e s f o r p r o d u c e r s of s o l a r e q u i p m e n t . — F i v e year r a p i d a m o r t i z a t i o n
of c a p i t a l investments made to produce solar energy equipment. A development
l o a n p r o g r a m t o assist c a p i t a l f o r m a t i o n by s m a l l business firms p l a n n i n g t o
produce solar energy equipment. A p r o g r a m t o p e r m i t the F e d e r a l G o v e r n m e n t
to purchase specialized equipment r e q u i r e d t o produce solar energy equipment
a n d lease such equipment t o i n d u s t r y f o r such use.
L o a n g u a r a n t e e p r o g r a m s — h o m e o w n e r s . — G o v e r n m e n t l o a n guarantees app l y i n g t o i n s t a l l e d cost o f solar equipment such t h a t t h e a d d i t i o n a l i n v e s t m e n t
r e q u i r e d w i l l n o t a d d to t h e d o w n p a y m e n t r e q u i r e d f o r n e w residencies. Governm e n t l o a n guarantees, a n d i f necessary, i n t e r e s t subsidies f o r r e t r o f i t applicat i o n s t o equalize i n t e r e s t costs w i t h n e w i n s t a l l a t i o n s . P r o g r a m is s i m i l a r to
e d u c a t i o n a l l o a n p r o g r a m . E l i g i b i l i t y as above.
L o a n g u a r a n t e e p r o g r a m s — o t h e r . — G o v e r n m e n t l o a n guarantees a p p l y i n g t o
i n s t a l l e d cost of equipment such t h a t the a d d i t i o n a l i n v e s t m e n t i n solar energy
equipment does not r e q u i r e a d d i t i o n a l e q u i t y financing by owner. I n t e r e s t subsidies to equalize owner's money cost w i t h t h a t of o t h e r energy producers ( o i l
companies, etc.), w h o n o r m a l l y b o r r o w a t or near t h e " p r i m e r a t e . "
F E A s o l a r e n e r g y c o m m e r c i a l i z a t i o n a c t i v i t i e s . — F E A s h o u l d be p r o v i d e d w i t h
adequate f u n d i n g to s u p p o r t i t s solar a c t i v i t i e s . These a c t i v i t i e s i n c l u d e : overc o m i n g i n s t i t u t i o n a l , economic a n d legal b a r r i e r s ; developing state a n d l o c a l
p r o g r a m s ; e d u c a t i n g the public, etc.
G o v e r n m e n t b u i l d i n g s p r o g r a m . — I m p l e m e n t a t i o n of a p r o g r a m based on
S-2095 w i t h c e r t a i n m o d i f i c a t i o n to assure adequate solar energy e q u i p m e n t
utilization.
D e m o n s t r a t i o n p r o g r a m s . — A d e q u a t e i m p l e m e n t a t i o n of P L 93-409, the " S o l i r
H e a t i n g a n d Cooling D e m o n s t r a t i o n A c t of 1974," is needed. A t present i t appears t h a t too great emphasis is being placed on "development i n s u p p o r t o f
d e m o n s t r a t i o n " a n d too l i t t l e upon a n adequate n u m b e r of demonstrations.
T h e r e is also concern t h a t E R D A spending plans m a y i n v o l v e d i v e r s i o n of
e f f o r t f r o m support of d i r e c t solar t h e r m a l a p p l i c a t i o n s (heating, h o t w a t e r a n d
cooling) w h i c h h a v e m i d - t e r m as w e l l as l o n g t e r m p o t e n t i a l t o a p p l i c a t i o n s
r e q u i r i n g extensive research e f f o r t s a n d h a v i n g o n l y long t e r m p o t e n t i a l f o r
energy s a v i n g s — i f R & D is successful. ( S o l a r t h e r m a l electric, ocean t h e r m a l
gradients, etc.)
SPECIFIC PROGRAMS TO ACCELERATE DEVELOPMENT OF PHOTOVOLTAICS
A l l of t h e above p r o g r a m s r e l a t e to p h o t o v o l t a i c a p p l i c a t i o n s as w e l l as to
s o l a r - t h e r m a l applications. I n a d d i t i o n , t h e f o l l o w i n g p r o g r a m s are proposed
as a means of accelerating development of p h o t o v o l t a i c applications.
95
A i r c o n d i t i o n i n g p r o g r a m s . — A p p l i c a t i o n s i n w h i c h solar electric energy gathered by p h o t o v o l t a i c cells is used to power compressor a i r - c o n d i t i o n i n g apparat u s become cost-effective at h i g h e r p h o t o v o l t a i c cell costs t h a n the g e n e r a l i t y
of applications. B a s i c a l l y , t h i s is because energy storage i n the f o r m of c h i l l e d
w a t e r is l o w cost. I m m e d i a t e proof of concept a n d early d e m o n s t r a t i o n i n s t a l l a t i o n s are proposed.
R e m o t e G o v e r n m e n t i n s t a l l a t i o n p r o g r a m s . — P r o g r a m s s i m i l a r to the gene r a l Government B u i l d i n g s P r o g r a m aimed a t i n s t a l l a t i o n of photovoltaic devices i n remote areas should be i n i t i a t e d a t t h i s time.
RESULTS TO BE EXPECTED
T h e combined effect of these p r o g r a m s w i l l s u b s t a n t i a l l y accelerate development of solar energy applications. W e estimate t o t a l solar energy p r o d u c t i o n
predicted upon these a n d those p r o g r a m s already i n place equivalent to 1 mill i o n b a r r e l s per d a y of crude p e t r o l e u m w i t h i n ten years. W i t h o u t the package proposed a n d w i t h only those programs n o w i n place, savings w o u l d not
exceed 100,000 b a r r e l s per day i n ten years.
SOLAR SYSTEM ECONOMICS
[ A b o u t the tables a t t a c h e d ( I A , I B , I I A , I I B ,
IIC)]
1. T h e y are i n t e n d e d to i l l u s t r a t e the economics of Solar systems under " t y p i c a l " conditions i n v a r i o u s p a r t s of t h e U . S A .
2. W a t e r heater c a l c u l a t i o n s are based on " t y p i c a l " hot w a t e r use by a n "average" f a m i l y of f o u r .
3. Space h e a t i n g calculations are based on a 1,500 square f o o t single f a m i l y
residence w h i c h is of " t y p i c a l " c o n s t r u c t i o n f o r the area ( v a r i e s f r o m one area
to another).
4. E l e c t r i c i t y , o i l a n d gas prices used cover the ranges encountered i n each
area. They are c u r r e n t prices. I n c a l c u l a t i n g f u t u r e savings, i t was forecast
t h a t e l e c t r i c i t y prices w o u l d escalate a t 7.5 percent per year (5 percent inflat i o n - f - 2 ^ p e r c e n t ) . Gas a n d o i l prices were forecast to escalate at 10 percent
per year.
5. Pay-out t i m e i s t h e t i m e r e q u i r e d f o r c u m u l a t i v e savings to equal first cost.
I. WHAT ARE THE ECONOMICS OF STANDARD SIZE SOLAR HOT WATER HEATERS?
A. VERSUS ELECTRIC HOT WATER
Solar,
percent of
hot
water
East coast (New York, Boston, Washington):
50 ft 2 system
75 ft 2 system
100 ft 2 system
South Florida ( M i a m i ) : 50 ft 2 system
Upper Midwest (Chicago-Omaha):
50 ft 2 system
75 ft 2 system
100 ft 2 system
Lower Midwest (St. Louis-Nashville):
50 ft 2 system
75 ft 2 system
100 ft 2 system
Southwest (Dallas):
50 ft 2 system
75 ft 2 system
Desert Southwest: 50 ft 2 system
Southern California (Los Angeles):
50 ft 2 system
75 ft 2 system
Solar
system cost
Pay-out time—years (electricity)
30/kWh
3K0/kWh
40/kWh
47
60
72
69
$900
1,200
1, 500
900
8.9
9.2
9.5
6.7
8.0
8.2
8.5
5.8
7.2
7.4
7.7
5.3
54
69
84
900
1,200
1,500
8.1
8.3
8.5
7.1
7.4
7.5
6.8
51
65
79
900
1,200
1,500
8.4
8.7
8.9
7.5
7.7
7.9
6.7
7.0
7.1
62
84
80
900
1,200
900
7.4
7.1
7.1
6.4
6.3
6.3
5.7
5.7
5.7
62
84
900
1,200
7.4
7.1
6.4
6.3
5.7
5.7
6.4
6.7
96
B. VERSUS GAS HOT WATER
Solar,
percent
of hot
water
East coast ( N e w York, Boston, Washington):
50 ft 2 system
75 ft 2 system
100 ft 2 system
South Florida ( M i a m i ) : 50 f t 2 s y s t e m Upper Midwest (Chicago-Omaha):
50 ft 2 system
75 ft* system
100 ft 2 system
—
Lower Midwest (St. Louis-Nashville):
50 ft 2 system
75 ft 2 system
100 ft2 system
Southwest (Dallas):
50 ft? system
75 ft2 system
Desert Southwest: 50 f t 2 system
Southern California (Los Angeles):
50 ft 2 system
75 ft 2 system
Solar
system •
cost
Pay-out time—years (gas)
12.50/thm
150/thm
17.50/thm
200/thm
47
60
72
69
$900
1,200
1,500
900
19.0
19.4
19.7
15.7
17.4
17.8
18.1
14.3
16.1
16.5
16.8
13.1
15.0
15.4
15.7
12.1
54
69
84
900
1,200
1,500
17.8
18.1
18.4
16.2
16.6
16.8
15.0
15.3
15.5
13.9
14.3
14.5
51
65
79
900
1,200
1,500
18.3
18.7
18.9
16.7
17.1
17.3
15.4
15.8
16.0
14.4
14.7
15.0
62
84
80
900
1,200
900
16.6
16.5
14.5
15.1
15.0
13.1
13.9
13.8
12.0
12.9
12.8
11.1
62
84
900
1,200
16.6
16.5
15.1
15.0
13.9
13.8
12.9
12.8
II. WHAT ARE THE ECONOMICS OF SOLAR SPACE HEATING PLUS SOLAR HOT WATEft HEATING?
A. VERSUS OIL HEAT PLUS ELECTRIC HOT WATER
Pay-out time—years (electricity: oil)
Solar system
cost
East coast:
Boston:
40 percent solar
50 percent solar
New York:
40 percent solar
50 percent solar
Washington:
40 percent solar
50 percent solar
Upper Midwest (Omaha-Chicago):
40 percent solar
50 percent solar
r-r.rv-"
Lower Midwest (St. Louis-Nashville):
40 percent solar
50 percent solar
Southwest (Dallas):
40 percent solar
50 percent solar
60 percent solar
Southern California (Los Angeles):
50 percent solar
60 percent solar
70 percent solar
30/kWh:
400/gal.
3^0/kWh:
430/gal.
$4,875
6, 750
12.1
12.6
11.4
11.8
10.7
11.2
4, 700
6,800
13.0
14.4
12.1
13.5
11.4
12.8
3,475
5,300
10.4
12.0
9.6
11.2
9.0
10.5
3,200
4, 825
9.2
10.6
8.5
9.8
8.0
9.3
3,275
4,825
10.8
12.3
10.0
11.4
9.3
11.0
2,200
3,000
4,875
9.2
10.0
12.4
8.3
9.1
11.5
7.7
8.5
10.8
1,500
2,175
3,000
6.7
7.8
9.0
6.1
7.2
8.3
5.6
6.7
7.7
40/kWh:
450/gal.
50/kWh:
450/gal.
10.5
11.9
97
B. VERSUS ELECTRIC HEAT AND HOT WATER
Pay-out time—years
Solar system cost
East coast:
Boston:
40 percent solar
50 percent solar
New York:
40 percent solar
50 percent solar
Washington:
40 percent solar
50 percent solar
Upper Midwest (Omaha-Chicago):
40 percent solar
50 percent solar
Lower Midwest (Nashville-St. Louis):
40 percent solar.
50 percent solar
Southwest (Dallas):
40 percent solar
50 percent solar
60 percent solar
Southern California (Los Angeles):
50 percent solar
60 percent solar
70 percent solar
(electricity)
30/kWh
3^0/kWh
40/kWh
$4,875
6, 750
10.2
10.9
9.1
9.8
8.2
8.9
4,700
6,800
11.5
12.7
10.3
11.4
9.3
10.4
3, 475
5, 300
8.8
10.2
7.9
9.1
7.1
8.3
3,200
4, 825
7.6
8.8
6.7
7.8
6.1
7.0
3,275
4,825
9.5
10.7
8.5
9.6
7.6
8.6
2,200
3, 000
4,875
8.2
8.7
10.9
7.3
7.8
9.8
6.6
7.0
7.8
1,500
2,175
3,000
5.7
6.7
7.6
5.0
5.9
6.7
4.5
5.3
6.0
50/kWh
7.8
8.9
C. VERSUS NATURAL GAS HEAT PLUS HOT WATER
Solar
East coast:
Boston:
40 percent solar
50 percent solar
New York:
40 percent solar
50 percent solar
Washington:
40 percent solar
50-percent solar
Upper Midwest (Omaha-Chicago):
40-percent solar
50-percent solar
Lower Midwest (Nashville-St. Louis):
40-percent solar
50-percent solar
Southwest (Dallas):
40-percent s o l a r . . .
50-percent solar
60-percent s o l a r . .
Southern California (Los Angeles):
50-percent s o l a r . . .
60-percent solar
70-percent solar.
Pay-out time—years (gas)
system
cost
12.50/thm
150/thm
17.50/thm
200/thm
$4,875
6,750
20.5
21.5
18.9
19.8
17.6
18.5
16.5
17.3
4,700
6,800
22.1
23.5
20.5
21.8
19.1
20.4
17.9
19.2
3,475
5,300
18.8
20.6
17.3
19.0
16.0
17.6
14.9
16.5
3,200
4,825
17.1
18.8
15.6
17.2
14.4
15.9
13.4
14.8
3,275
4,825
19.7
21.2
18.1
19.5
16.8
18.2
15.7
17.0
2,200
3,000
4,875
18.0
18.7
21.4
16.4
17.2
19.8
15.2
15.9
18.4
14.1
14.8
17.3
1,500
2,175
3, 000
14.2
15.7
17.1
12.8
14.3
15.6
11.7
13.1
14.4
10.8
12. 1
13.3
98
The loan guarantee provisions w h i c h were added by the Senate i n S. 598 to
H . R . 3474 w o u l d provide a source of financing f o r larger solar i n s t a l l a t i o n s ;
and i f f u r t h e r amended as we have recommended, w o u l d become applicable to
manufacturers of solar equipment. T h i s is p a r t i c u l a r l y i m p o r t a n t since many
of the present manufacturers are small businesses who characteristically have
difficulty i n obtaining adequate financing. I refer you to my statement made
to the Subcommittee on Energy Research, Development and Demonstration of
the Committee on Science and Technology of the U.S. House of Representatives o f October 7. A copy of this statement is as f o l l o w s :
T E S T I M O N Y OF S H E L D O N H . B U T T , PRESIDENT, SOLAR E N E R G Y I N D U S T R I E S
C I A T I O N , BEFORE T H E C O M M I T T E E ON SCIENCE A N D TECHNOLOGY
ASSO-
M r . Chairman and Members of the Committee: The Solar Energy Industries
Association is pleased at the opportunity to t e s t i f y on the subject of the L o a n
Guarantee Provision added by the Senate i n S. 598 to H.R. 3474, the E.R.D.A.
A u t h o r i z a t i o n B i l l , FY-1976.
Fundamentally, S.E.I.A. supports the N a t i o n a l Goal of achieving energy independence at an early date and m a i n t a i n i n g independence thereafter. W e believe t h a t energy independence is necessary to our economic w e l l being and
essential to a t r u l y independent foreign policy. W e believe t h a t , i n order to
achieve this goal, i t is necessary t h a t we develop and use a variety of domestically available energy resources, including fossil f u e l resources as w e l l as solar
energy and other renewable energy sources. E.R.D.A.'s investigations of the near
term, mid-term and long t e r m potential f o r each of the alternatives, as spelled
out i n E.R.D.A. 48, amply demonstrate t h a t no single solution by itself offers
sufficient potential to provide f o r independence. Our own estimates of the pot e n t i a l f o r solar energy, although somewhat higher t h a n those provided by
E.R.D.A., also indicate a need f o r m u l t i p l e solutions. W e include among the
energy sources required i n the f u t u r e to achieve independence the f o l l o w i n g :
1. D i r e c t use of solar t h e r m a l energy f o r heating and cooling of buildings,
f o r a g r i c u l t u r e and f o r i n d u s t r i a l process heat.
2. Generation of electric power f r o m solar energy i n c l u d i n g ; photovoltaics,
solar thermal, ocean t h e r m a l gradients, biomass conversion and w i n d energy.
3. The direct use of solar t h e r m a l energy to " d r i v e " catalytic and other chemical processes intended to produce hydrogen, hydrocarbons and other chemical
r a w materials now normally produced f r o m n a t u r a l gas and petroleum.
4. The use of geothermal energy, both as a direct source of heat and i n the
generation of electric power.
5. The conversion of abundant domestic energy resources i n c l u d i n g o i l shale
and coal into synthetic fuels.
6. T h e expanded use of nuclear energy, both f r o m nuclear fission and fusion
to produce electric energy.
Thus, we support both the provisions of the legislation proposed by the Senate
w h i c h relate t o the production of synthetic fuels f r o m o i l shale and coal, and
those provisions r e l a t i n g t o the u t i l i z a t i o n of solar energy and other renewable
energy resources. We favor retention of those provisions of Section 103 w h i c h
relate to solar energy and other renewable energy resources w i t h amendment as
discussed f o l l o w i n g :
Paragraph ( b ) ( 1 ) ( B ) of proposed Section 103 of S. 598 refers only to the
construction and operation of " f a c i l i t i e s to generate power or heat." I n the case
of solar energy, this means t h a t the loan guarantees would apply only to the
owner and user of the solar energy equipment since i t is he who is the producer
of power or heat. As w r i t t e n , this paragraph does not provide loan guarantees
f o r the construction and operation o f the f a c i l i t i e s essential to the production of
the solar equipment itself.
A t present, many of the producers of solar equipment may be categorized as
small and moderate sized businesses. I n a d d i t i o n to the " n o r m a l " problems w h i c h
small and moderate sized businesses encounter i n r a i s i n g capital funds f o r new
enterprises, these businesses also are faced by the problem t h a t the
financial
community s t i l l considers the business of producing solar equipment as being
highly speculative. As a result, these solar equipment producers encounter extreme difficulty i n r a i s i n g capital funds.
99
I n addition, i n some cases, such as the case of facilities required to mass produce photovoltaic cells, specialized equipment and production lines are involved.
Often, these are not of use i n the production of other commercial products. Thus,
their i n s t a l l a t i o n by p r i v a t e enterprise i n advance of the development of a mass
market f o r the specialized solar products w h i c h they w i l l produce entails an
extremely h i g h degree of risk. A t the same time, development of a mass m a r k e t
f o r the specialized solar products is substantially dependent upon the p r i o r
a v a i l a b i l i t y of products produced i n large volume a t cost levels reflecting the
economies of large volume production. T h i s is a classic " w h i c h comes first, the
chicken or the egg" dilemma.
Accordingly, we recommend t h a t paragraph ( b ) ( 1 ) ( B ) of Section 103 be
amended to add the following, a f t e r the w o r d "resources" i n line 14:
" a n d facilities to produce systems or unique components and materials required f o r generation of power or heat f r o m the energy sources enumerated:"
We recommend f u r t h e r t h a t Paragraph (a) (1) (2) be amended to add the
f o l l o w i n g after the w o r d "sources" i n line 15:
" a n d f o r the construction and operation of facilities required to produce systems and unique components and materials required by facilities deriving energy
f r o m renewable sources; and"
M r . Chairman, i t is pertinent to note that, on Thursday, October 2, i n my
capacity as President of S.E.I.A., I received a call f r o m an officer of a major
bank, now actively involved i n arranging financing for geothermal energy projects
under the terms of the Geothermal Energy Research and Development Act of
1974. He indicated t h a t his bank was interested i n a r r a n g i n g similar financing
f o r solar energy projects provided t h a t the Congress passed suitable loan guarantee legislation.
We have received an explanation of proposed changes i n Section 103, including
a proposal to delete loan guarantee a u t h o r i t y f o r facilities u t i l i z i n g "renewable
energy sources," w h i c h includes solar energy. The explanation identifies the
mechanism provided by the Solar Heating and Cooling Demonstration A c t of
1974 as the preferred approach f o r introducing solar technology. We recognize
demonstration as one of the m a j o r key elements required to accelerate development of solar energy as a m a j o r energy resource. Incentives, loan guarantees and
assistance i n the development of standards are others included i n a comprehensive program. S.E.I.A. thoughts regarding a comprehensive program are outlined
i n a statement appended to this testimony.
The explanation f u r t h e r states that, "many of the technologies f o r u t i l i z i n g
other renewable energy sources have not yet reached the stage of development
where commercial quantities of power and heat could be economically generated
by facilities suitable f o r loan guarantee support." W h i l e this is t r u e i n some
cases, e.g., ocean t h e r m a l gradients, i t is certainly not true i n the case of the use
of direct solar t h e r m a l energy. W e receive frequent inquiries f r o m commercial
and i n d u s t r i a l energy users interested i n the use of solar energy to provide subs t a n t i a l process heat requirements. Most of these potential applications are feasible. I n most cases, the necessary solar equipment couM be installed and begin its
job of producing energy much more rapidly t h a n could be projected shale oil or
coal gasification plants.
We w a n t to thank you f o r the opportunity to appear before you. We w i l l be
pleased to answer any questions you may care to p u t to us.
As H.R. 3849 and H.R. 8524 are w r i t t e n , they appear to be p a r t i c u l a r l y applicable to the f o l l o w i n g classes of potential users:
1. Solar installations retrofitted to residential property. The difference between
the interest rates i m p l i c i t i n the legislation and the "going" rate of interest upon
home improvement loans is p a r t i c u l a r l y great and thus, the impact upon monthly
loan payments is p a r t i c u l a r l y large.
2. " M e r c h a n t " builders constructing single-family or m u l t i - f a m i l y residential
structures f o r resale. Again, the interest rate difference as compared to the
interest rate w h i c h this class n o r m a l l y pays f o r construction loans is p a r t i c u l a r l y
large and the potential savings, therefore, p a r t i c u l a r l y attractive.
The provisions of the proposed legislation would have impact, but to a less
extent, upon i n d i v i d u a l s who had contracted f o r a custom-built home or upon
investors w h o had contracted f o r construction of a m u l t i - f a m i l y residential
development.
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Congressman Moorhead's question speaks of F e d e r a l H o m e L o a n B a n k B o a r d
home mortgages purchase c o m m i t m e n t s to lenders m a k i n g m o r t g a g e loans on
homes w i t h solar energy systems. C e r t a i n l y , t h e F e d e r a l H o m e L o a n B a n k B o a r d
should be w i l l i n g t o u n d e r t a k e such c o m m i t m e n t s . I f they were not, the results
w o u l d be negative. W h e t h e r o r n o t loans on solar energy systems could be g i v e n
a n y f o r m o f p r e f e r e n t i a l t r e a t m e n t w i t h i n t h e e x i s t i n g c h a r t e r of t h e B o a r d is
not k n o w n t o me.
S i m i l a r l y , F . H . A . should be i n a p o s i t i o n to c o m m i t to l o a n guarantees f o r solar
equipped homes. I u n d e r s t a n d t h a t they a r e a d m i n i s t r a t i v e l y i n a p o s i t i o n to do
t h i s today, a l t h o u g h the c u r r e n t procedure i s somewhat clumsy, r e q u i r i n g t h a t
such c o m m i t m e n t s be made o n l y a t t h e W a s h i n g t o n level a n d n o t i n t h e F i e l d
Offices. A d d i t i o n a l l y , as has been proposed elsewhere, t h e d o l l a r l i m i t a t i o n s upon
F . H . A . c o m m i t m e n t s should be increased sufficiently so as to cover t h e added
cost of a solar system as compared to a c o n v e n t i o n a l system.
Q u e s t i o n 2 . M r . B u r k h a r d t a n d M r . B u t t , a t present cost of solar equipment,
is i t cost-effective t o use such e q u i p m e n t j u s t t o p r o v i d e h o t w a t e r ?
REPLY B Y MR.
BURKHARDT
A n s w e r . A t present costs, solar h e a t i n g equipment f o r p r o v i d i n g t o t a l h e a t i n g
energy t o a home is n o t cost e f f e c t i v e ; however, as a n a d j u n c t f o r the p r o d u c t i o n
o f domestic h o t w a t e r a n d / o r heating, w e do believe i t could be cost effective,
especially i f t h e r e were a l a r g e n u m b e r o f i n s t a l l a t i o n s .
W e h a v e been i n f o r m e d by a m a n u f a c t u r e r t h a t he estimates i f we c o u l d buy
500 u n i t s , the p r i c e of a piece of solar energy equipment w o u l d d r o p f r o m $625
to a b o u t $325 f o r the s o l a r - a d j u n c t u n i t . F u r t h e r , w e envisage t h i s u n i t not o n l y
p r o d u c i n g domestic h o t w a t e r , b u t p r o v i d i n g heated w a t e r t o t h e boiler f o r a
steam or h o t w a t e r system. W h i l e t h i s l a t t e r i s n o t large i n q u a n t i t y , i t s t i l l
is a n i t e m t h a t could bear some consideration. W h e t h e r or n o t i t w i l l become
cost effective to use such equipment t o produce domestic h o t w a t e r w i l l be
d i r e c t l y p r o p o r t i o n a t e to t h e n u m b e r of these u n i t s t h a t a r e i n s t a l l e d .
F i f t y years ago t h e r e were j u s t a f e w h u n d r e d thousand o i l b u r n e r s i n s t a l l e d
i n t h e U.S. T o convert f r o m coal to o i l a t t h a t t i m e cost $2,000. T o d a y , fifty years
l a t e r , w i t h 15 m i l l i o n o i l h e a t i n g i n s t a l l a t i o n s a n d w i t h i n f l a t i o n plus the general
r i s e i n t h e cost of l i v i n g over a fifty year period, a n d w i t h h i g h l y sophisticated
controls a n d a m u c h more sophisticated o i l b u r n e r , t h e same i n s t a l l a t i o n costs
$300. W e believe t h a t w i t h proper h a n d l i n g a n d w i t h effective s t i m u l i t o t h e
s m a l l business h e a t i n g e q u i p m e n t i n s t a l l e r , w e could m a k e the same
financial
progress w i t h solar energy i n 10 y e a r s — o n e - f i f t h of t h e t i m e !
F u r t h e r , of t h e 2,400,000 o i l h e a t i n g i n s t a l l a t i o n s i n N e w E n g l a n d , 1,600,000
a r e good to f a i r prospects f o r solar energy a d j u n c t i n s t a l l a t i o n s coupled w i t h
o i l fired h e a t i n g o r domestic h o t w a t e r g e n e r a t i n g equipment.
REPLY BY MR. B U T T
A n s w e r . A solar i n s t a l l a t i o n substitutes a c a p i t a l i n v e s t m e n t w i t h v e r y l o w
subsequent o p e r a t i n g costs f o r a c o n t i n u i n g r e l a t i v e l y h i g h o p e r a t i n g cost representing the c o n t i n u i n g cost of c o n v e n t i o n a l energy resources; e l e c t r i c i t y , oil, gas.
U t i l i z a t i o n of the equipment t h u s becomes a n i m p o r t a n t f a c t o r i n d e t e r m i n i n g
cost-effectiveness. H e a t i n g h o t w a t e r is i n t r i n s i c a l l y q u i t e cost-effective since
t h e d e m a n d f o r h o t w a t e r is u n i f o r m a n d year-round. T h i s p o i n t is i l l u s t r a t e d i n
the economic analyses r e f e r r e d t o e a r l i e r w h i c h are appended.
Q u e s t i o n 3 . M r . B u r k h a r d t a n d M r . B u t t , w h a t i m p a c t could t h i s l i m i t e d l o a n
p r o g r a m have on i n c r e a s i n g m a r k e t demand f o r t h e p r o d u c t ?
REPLY B Y MR. B U R K H A R D T
I t is d i f f i c u l t t o j u d g e j u s t w h a t t h i s l i m i t e d l o a n p r o g r a m w o u l d p r o v i d e as a n
effective f o r c e t o w a r d i n c r e a s i n g m a r k e t d e m a n d f o r t h e product.
I t s effect w o u l d possibly be i n d i r e c t , since i t is o n l y t h r o u g h increased product i o n of t h e a m o u n t of equipment a n d increased n u m b e r of i n s t a l l a t i o n s of t h e
e q u i p m e n t t h a t w e w o u l d achieve l o w e r prices f o r solar h e a t generators.
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T o N B F I , d i r e c t financial s t i m u l u s w o u l d p r o v i d e a n o p p o r t u n i t y to get thousands of small^businessmen such as o i l h e a t i n g dealers t h r o u g h o u t N e w E n g l a n d
w h o i n s t a l l 140,000 pieces of o i l h e a t i n g equipment each y e a r f a s w e l l as sell a n d
service them, t o a p p l y themselves w i t h t h e same v i g o r a n d experience t o the sale
a n d i n s t a l l a t i o n of solar energy equipment as they e x h i b i t w i t h o i l h e a t i n g equipment. A p r o g r a m geared t o p r o v i d i n g financial or t a x incentive t o these s m a l l
businessmen m i g h t be j u s t as valuable or more valuable as loans t o t h e homeowners.
REPLY B Y MR. BUTT
A n s w e r . T h e l o a n p r o g r a m s i n c o r p o r a t e d i n t h e proposed l e g i s l a t i o n have l i m i t e d a p p l i c a t i o n a n d address only one of the constraints perceived by t h e " t y p i c a l "
consumer. T h i s was discussed a t some l e n g t h i n response t o a n e a r l i e r question.
As p a r t of a comprehensive p r o g r a m s t r u c t u r e d as S.E.I.A. has recommended, they
w o u l d be i m p o r t a n t a n d effective. W e believe t h a t the comprehensive p r o g r a m
proposed, i f enacted a n d vigorously implemented, w o u l d generate solar induced
savings i n crude o i l ( o r i t s e q u i v a l e n t ) of one m i l l i o n barrels per day w i t h i n t e n
years a f t e r the p r o g r a m was i n place a n d i n operation.
I don't believe t h a t w e are i n a p o s i t i o n to accurately estimate t h e effect of a
single facet of t h e p r o g r a m — s u c h as the proposed l o a n p r o g r a m — b y i t s e l f . T h e
i n t e r r e l a t i o n s h i p between the v a r i o u s p a r t s of a comprehensive p r o g r a m is v e r y
g r e a t l y synergistic.
N a t u r a l m a r k e t forces aided by t h e d e m o n s t r a t i o n p r o g r a m a l r e a d y i n place are
estimated by E . R . D . A . to p o t e n t i a l l y produce savings of 100,000 barrels per day i n
ten years. W e agree w i t h t h i s estimate. T h e l o a n p r o g r a m envisioned by t h e prese n t l y proposed l e g i s l a t i o n m i g h t a d d 25% to 50% to t h i s t o t a l .
QUESTIONS S U B M I T T E D B Y CONGRESSMAN MOORHEAD TO M R . MORRISON A N D
MR. BUTT
Q u e s t i o n 1 . M r . M o r r i s o n and M r . B u t t , i f the i n s t a l l a t i o n of solar energy
equipment w i l l r e s u l t i n g r e a t f u e l cost savings over t h e l i f e of the home, w h y
should the government get i n v o l v e d i n subsidies at a l l ?
REPLY FROM MR. MORRISON
A n s w e r . T h e r e can be n o doubt t h a t t h e i n s t a l l a t i o n of solar powered equipment t o f u r n i s h the basic h e a t i n g a n d cooling r e q u i r e m e n t s of t h e home w i l l
d r a s t i c a l l y reduce t h e o p e r a t i o n a l cost of the home f r o m t h e s t a n d p o i n t of energy
consumption, h o w e v e r the A m e r i c a n p u b l i c has been educated t o accept the
m o n t h l y p a y m e n t p l a n w i t h r e l a t i v e l y h i g h payments r a t h e r t h a n t o accept a
h i g h i n i t i a l first cost a n d r e l a t i v e l y l o w m o n t h l y payments t h e r e a f t e r . I n general,
the average home o w n e r or prospective home owner does n o t have t h e f u n d s available w h i c h a r e r e q u i r e d f o r t h e i n s t a l l a t i o n of a solar powered system. E v e n
t h o u g h t h e home o w n e r m a y feel t h a t the solar energy r o u t e i s the desirable w a y
t o go, m a n y times he s i m p l y cannot generate t h e f u n d s necessary to t a k e advantage of t h e benefits offered b y t h i s a l t e r n a t e energy source.
T h e benefits w h i c h t h e government w i l l derive t h r o u g h incentives such as t a x
credits a n d subsidies are a t least t w o f o l d .
1. T h e r e is no doubt t h a t t h i s n a t i o n m u s t conserve i t s r e s e r v o i r of f o s s i l f u e l
energy i n s o f a r as i t is h u m a n l y possible. E v e r y u n i t of energy t h a t is f u r n i s h e d
t h r o u g h the use of solar energy conserves the f o s s i l f u e l supply w h i c h w o u l d
o t h e r w i s e be called upon t o f u r n i s h t h i s heat u n i t . I n m y opinion, t h i s irreplaceable r e s e r v o i r of f o s s i l fuels should be used to f u r n i s h only those needs w h i c h
cannot be adequately m e t t h r o u g h t h e use of some a l t e r n a t e energy source.
2. T h e government should get i n v o l v e d i n encouraging the p u b l i c t o accept
a l t e r n a t e energy sources t h r o u g h t h e use of t a x credits, subsidies a n d other simi l a r incentives since i t w i l l u l t i m a t e l y benefit the i n d i v i d u a l citizen. I t is t h e funct i o n of government t o lead t h e w a y i n energy conservation, a n d the use of incentives is one m a n n e r i n w h i c h t h i s m a y be accomplished. I t is m y o p i n i o n t h a t the
government should be interested i n anything: t h a t w i l l u l t i m a t e l y benefit t h e i n d i v i d u a l citizen f r o m w h o m the government u l t i m a t e l y derives i t s a u t h o r i t y and
power.
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REPLY FROM MR. B U T T
A n s w e r . I t is t r u e t h a t , o n a l i f e cycle cost basis, solar h e a t i n g a n d solar domest i c h o t w a t e r are cost-effective i n most areas as compared t o e l e c t r i c i t y . T h i s is
t r u e even based upon the c u r r e n t r e l a t i v e l y h i g h cost of t h e solar equipment,
w h i c h cost reflects t h e f a c t t h a t solar equipment i s not n o w being mass-produced.
A less f a v o r a b l e b u t s t i l l v i a b l e p i c t u r e is presented w h e n a solar i n s t a l l a t i o n is
compared t o a c o n v e n t i o n a l system u s i n g f u e l o i l . Solar, as c o m p a r e d t o l o w cost
n a t u r a l gas w h e r e i t is s t i l l available, pays off o n l y i n a r a t h e r extended p e r i o d of
t i m e . Some economic analyses of " t y p i c a l " solar i n s t a l l a t i o n s w e r e i n c o r p o r a t e d
i n m y w r i t t e n statement of November 5. A d d i t i o n a l such analyses of s i n g l e - f a m i l y
r e s i d e n t i a l applications are appended.
T y p i c a l l y , consumers are q u i t e " f i r s t cost" sensitive. Incentives are a n i m p o r t a n t a n d effective means of addressing t h i s problem. M o r e p o t e n t i a l users w i l l
elect t o m a k e solar i n s t a l l a t i o n s a n d m a k e t h i s election a t a n e a r l i e r d a t e i f t h e
economic p i c t u r e w h i c h they perceive is i m p r o v e d t h r o u g h t h e a p p l i c a t i o n of
incentives.
T h e r e is no d o u b t i n m y m i n d t h a t , g i v e n t h e r e a l i t i e s of t h e f u t u r e p o t e n t i a l
supply of n a t u r a l gas a n d f u e l o i l a n d t h e i m p l i c a t i o n s w h i c h these supply cons t r a i n t s h a v e upon f u t u r e prices, u l t i m a t e l y solar energy w i l l be v e r y w i d e l y
a p p l i e d t o t h e t h e r m a l energy r e q u i r e m e n t s of a l l types o f r e s i d e n t i a l s t r u c t u r e s .
T h e effect of incentives a n d t h e o t h e r elements of the comprehensive p l a n w h i c h
S.E.I.A. has proposed is t o accelerate t h i s process. W e perceive t h a t acceleration
of the c o m m e r c i a l i z a t i o n of solar energy applications is v e r y g r e a t l y i n t h e
N a t i o n a l I n t e r e s t . Accelerated c o m m e r c i a l i z a t i o n provides the o p p o r t u n i t y t o
develop a n i n d u s t r y , w i t h a l l t h a t t h i s implies, i n advance o f a p o t e n t i a l crisis.
T h e preceding discussion has been concerned w i t h " n e e d " f o r incentives. T h e r e
is also a question of e q u i t y . T h e homeowner w h o i n s t a l l s solar e q u i p m e n t becomes a n energy " p r o d u c e r . " T h e economics of h i s i n v e s t m e n t , t h e r e t u r n w h i c h
he w i l l realize upon t h i s i n v e s t m e n t , depend u p o n t h e m a r k e t prices of t h e conv e n t i o n a l energy f o r m s w i t h w h i c h h i s solar i n s t a l l a t i o n competes. H i s savings
a r e smaUer a n d therefore, h i s r e t u r n less i f t h e p r i c e of e l e c t r i c i t y , o i l o r gas,
as t h e case m a y be, i s l o w . Conversely, h i s savings increase w i t h increase i n t h e
cost o f t h e competing energy f o r m . I n a m a r k e t economy, the p r i c e of comm o d i t i e s — i n c l u d i n g energy—tends t o reflect t h e cost of p r o d u c t i o n , i n c l u d i n g t h e
cost of b o r r o w e d f u n d s plus some r e t u r n u p o n i n v e s t m e n t . T h e key element tends
t o be net cash flow as compared t o invested c a p i t a l . Because of d e p r e c i a t i o n allowances, i n v e s t m e n t t a x c r e d i t s and, w h e r e applicable, d e p l e t i o n allowances,
business a n d i n d u s t r y are p r o v i d e d w i t h " t a x f r e e " cash flows w h i c h a r e of
i m p o r t a n t m a g n i t u d e . A consumer w h o has purchased a solar i n s t a l l a t i o n a n d
is thereby a n energy producer does n o t o b t a i n e q u a l t r e a t m e n t u n d e r t h e t a x l a w s
a n d is i n t h e p o s i t i o n of h a v i n g to pay f o r h i s solar i n s t a l l a t i o n e n t i r e l y w i t h
" a f t e r t a x " dollars. T h i s is n o t equitable.
Stated d i f f e r e n t l y , economics w o u l d d i c t a t e t h a t the m a r k e t prices f o r t h e comp e t i n g c o n v e n t i o n a l energy f o r m s w o u l d be h i g h e r t h a n they a r e n o w w e r e i t n o t
f o r t h e " i n c e n t i v e s " i n t h e f o r m of t a x f r e e cash flow a v a i l a b l e t o t h e producers,
d i s t r i b u t o r s a n d sellers of c o n v e n t i o n a l energy f o r m s . I n a v e r y r e a l sense, proposals f o r solar incentives m a y be i n l a r g e p a r t j u s t i f i e d as being r e q u i r e d t o
p r o v i d e equitable t r e a t m e n t t o the solar energy " p r o d u c e r " a n d p a r t i c u l a r l y so
w h e n t h i s " p r o d u c e r " is a homeowner. Congressman Gude touched u p o n t h i s
p o i n t i n h i s w r i t t e n statement.
Q u e s t i o n 2 . M r . M o r r i s o n a n d M r . B u t t , i n w h a t areas o f the c o u n t r y w o u l d
r a p i d i n s t a l l a t i o n of presently a v a i l a b l e solar e q u i p m e n t be most beneficial
economically ?
A r e t h e r e areas of t h e c o u n t r y w h e r e i t w o u l d n o t .be u s e f u l t o encourage
installation?
REPLY FROM MR.
MORRISON
A n s w e r . T h e i n s t a l l a t i o n of solar equipment w o u l d have w i d e s p r e a d applicat i o n t h r o u g h o u t t h e c o n t i n e n t a l U n i t e d States. T h e a v a i l a b i l i t y of solar energy
is v e r y m u c h dependent upon t h e e x i s t i n g e n v i r o n m e n t a l conditions. I n areas
w h e r e c l o u d cover exists f o r extended periods o f t i m e , t h e use of such devices
is less effective t h a n w h e n used i n those areas w h i c h receive l a r g e exposure t o
solar r a d i a t i o n such as t h e m a j o r i t y of the s o u t h e r n r e g i o n of the U n i t e d States.
I t should be borne i n m i n d t h a t these devices can be used effectively i n t h e n o r t h e r n sections of t h e U n i t e d States even as f a r n o r t h as A l a s k a , w h e n adequate pe-
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r i o d s of sunshine are available. I n most areas i t w o u l d be necessary t o p r o v i d e a
b a c k u p c a p a b i l i t y f o r t h e system, i n o r d e r t o f u r n i s h the energy r e q u i r e d w h e n
i n c l e m e n t w e a t h e r p r o h i b i t e d the collection of sufficient solar energy. I t should be
remembered t h a t a l l of the solar energy collected represents a net r e d u c t i o n i n
the c o n v e n t i o n a l energy requirements. I n m y opinion t h e area of t h e c o u n t r y
w h i c h w o u l d economically benefit most t h r o u g h t h e use of solar energy is t h e
s o u t h w e s t e r n U n i t e d States even t o a p o i n t as f a r n o r t h as Colorado.
I n order to d e t e r m i n e the areas of the c o u n t r y w h e r e t h e i n s t a l l a t i o n of solar
energy equipment w o u l d not be beneficial, i t w o u l d be necessary t o have l o n g
t e r m w e a t h e r d a t a records a v a i l a b l e f o r study. T h e most significant p o r t i o n o f
t h i s study w o u l d be t h e percentage of cloud cover w h i c h is n o t a very accurate
figure even w h e n t a k e n by persons f a m i l i a r w i t h the measurement a n d r e c o r d i n g
of meteorological data. I n general, the more p r e d o m i n a n t a n d persistent the c l o u d
cover, the less effective solar energy devices become. I f I w e r e a r b i t r a r i l y selecti n g those areas of the c o u n t r y w h e r e solar energy w o u l d be least effective, I
w o u l d t h i n k i t w o u l d be the coastal regions o f the n o r t h w e s t e r n p o r t i o n of the
U n i t e d States a n d t h e coastal regions of the n o r t h e a s t e r n p o r t i o n of t h e U n i t e d
States.
REPLY FROM MR. BUTT
A n s w e r . C e r t a i n l y , solar equipment is more cost-effective i n areas of h i g h insolation. H o w e v e r , i t is economically beneficial i n most areas i n the U n i t e d States.
A g a i n , t h i s is i l l u s t r a t e d by the economic analyses appended. T h i s is p a r t i c u l a r l y
t r u e i n the case of solar w a t e r heating.
Q u e s t i o n 3. M r . M o r r i s o n a n d M r . B u t t , are there a n y m a j o r t e c h n i c a l h u r d l e s
to using presently designed solar h e a t i n g equipment ?
I s the equipment r e l i a b l e ? I s expensive maintenance necessary ?
W h a t is l i f e expectancy ?
REPLY FROM MR.
MORRISON
A n s w e r . So f a r as I k n o w there are no m a j o r technical h u r d l e s t h a t are standi n g i n the w a y of the use of solar energy f o r h e a t i n g e i t h e r potable h o t w a t e r or
w a t e r f o r space h e a t i n g of r e s i d e n t i a l a n d commercial buildings. M a n y such
i n s t a l l a t i o n s h a v e been p r o v e n r e l i a b l e t h r o u g h past experience; p r o p e r l y designed systems w i l l operate effectively.
Since the equipment used f o r w a t e r h e a t i n g and space h e a t i n g is basically the
^ R m e type equipment w h i c h has been used i n h y d r o n i c systems f o r years, i t m u s t
be considered t h a t t h i s equipment is h i g h l y reliable. F r o m t h e s t a n d p o i n t of
maintenance, t h e r e is l i t t l e t o go w r o n g w i t h e i t h e r the solar collector or the
h y d r o n i c convectors. I n general, pumps are used to t r a n s f e r the fluid f r o m one
p o i n t i n the system t o another. These pumps a r e operated by c o n v e n t i o n a l thermostatic controls, solenoid valves, and such o t h e r sensors as are required. A l l of
these devices are c u r r e n t l y a v a i l a b l e on the open m a r k e t . T h e design of a proper
system depends upon selecting the r i g h t components t o do the j o b w h i c h is being
considered.
The l i f e expectancy of a h y d r o n i c system, w h e n p r o p e r l y m a i n t a i n e d , should
be i n the range of 15-20 years, since t h e r e is v i r t u a l l y n o t h i n g to go w r o n g w i t h
the system other t h a n t h e p u m p a n d controls w h i c h are used i n t h e operation of
the system. N a t u r a l l y , b o t h t h e p u m p a n d controls w o u l d be subject to periodic
r e p a i r s a n d / o r replacement. T h e cost of such r e p a i r s or replacement w o u l d probably be no m o r e t h a n t h a t w h i c h is c u r r e n t l y being experienced by conventional
h y d r o n i c h e a t i n g systems. T h e electric energy r e q u i r e d t o operate such a system
is m i n i s c u l e w h e n compared t o t h e energy r e q u i r e d to heat the b u i l d i n g or f u r n i s h
the b u i l d i n g w i t h potable h o t w a t e r .
REPLY FROM MR. BUTT
A n s w e r . A l t h o u g h t h i s question is addressed p r i m a r i l y to D r . M o r r i s o n , I
w o u l d l i k e t o comment upon i t .
T h e r e are c e r t a i n l y no m a j o r technical h u r d l e s t o overcome. M a n y hundreds or
thousands of solar h e a t i n g or h o t w a t e r h e a t i n g i n s t a l l a t i o n s are i n service today t o prove t h i s point. T h i s is n o t t o say t h a t there is not a need f o r engineering
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development t o i m p r o v e efficiency a n d f o r cost engineering t o reduce cost. T h e r e
is. T h e " D e v e l o p m e n t i n S u p p o r t of D e m o n s t r a t i o n " p r o g r a m s u n d e r w a y as a
p a r t of t h e i m p l e m e n t a t i o n of t h e Solar H e a t i n g a n d Cooling D e m o n s t r a t i o n A c t
of 1974 a r e addressed t o these ends. M o r e i m p o r t a n t l y , t h e r e is i n c r e a s i n g p r i v a t e l y f u n d e d e f f o r t i n these areas. T h e r e is no question i n m y m i n d t h a t t h e
r a t e of t h e p r i v a t e l y f u n d e d e f f o r t s i n these areas w i l l be s u b s t a n t i a l l y accelerated as a n d w h e n i n d u s t r y perceives serious c o m m i t m e n t b y G o v e r n m e n t
t o the c o m m e r c i a l i z a t i o n of solar energy. T h e v a r i o u s i n c e n t i v e p r o g r a m s w h i c h
w e h a v e discussed w i l l energize such a n accelerated c o m m e r c i a l a n d p r i v a t e l y
funded effort.
T h e r e is no i n h e r e n t reason w h y p r o p e r l y designed, b u i l t a n d i n s t a l l e d solar
e q u i p m e n t s h o u l d n o t be r e l i a b l e or s h o u l d n o t h a v e a l i f e expectancy as l o n g
as t h e s t r u c t u r e t o w h i c h i t is attached. E q u a l l y , t h e r e is no i n h e r e n t reason w h y
m a i n t e n a n c e cost should be high. C e r t a i n l y , m u c h of t h e e q u i p m e n t p r e s e n t l y
a v a i l a b l e on t h e m a r k e t is q u i t e adequate f r o m these points of v i e w . Standards,
w h i c h are n o w being developed b o t h by t h e N a t i o n a l B u r e a u of S t a n d a r d s a n d
b y i n d u s t r y t h r o u g h t h e v o l u n t a r y s t a n d a r d s system, w i l l be f o r t h c o m i n g a n d
a r e needed t o assure t h e user on these points.
QUESTIONS
SUBMITTED BY
CONGRESSMAN MOORHEAD TO M R . MORRISON
Q u e s t i o n 1 . M r . M o r r i s o n , w h a t is the m o l t e n - s a l t storage method? I s i t suffic i e n t l y developed t o be mass produced?
H o w does t h e life-cycle cost o f t h i s m e t h o d compare t o w a t e r storage methods?
REPLY FROM M R .
MORRISON
A n s w e r . T h e molten-salt storage m e t h o d is designed t o operate w i t h i t s heat o f
f u s i o n t e m p e r a t u r e a t t h a t t e m p e r a t u r e w h i c h the solar system as a w h o l e w o u l d
operate most effectively. T h e t h e o r y of t h e system is based u p o n t h e f a c t t h a t
m u c h energy is released by t h e molten-salt as i t t r a n s f o r m s f r o m a l i q u i d t o a
s o l i d a t t h e p o i n t o f fusion. A s a n example, t h e energy released by h o t w a t e r as
i t drops f r o m 212° F t o 32° F is a p p r o x i m a t e l y 180 B t u ' s . A s t h e w a t e r is t r a n s f o r m e d t o ice, a n a d d i t i o n a l 144 B t u r e m o v a l i s r e q u i r e d i n order to produce
ice a t 32° F . I t m a y be seen t h a t , i n theory, t h i s is a v e r y l o g i c a l m a n n e r i n
w h i c h t o a p p r o a c h the heat storage problem.
D r . M a r i a Telkes of t h e U n i v e r s i t y of D e l a w a r e is perhaps t h e w o r l d ' s leadi n g a u t h o r i t y on t h e storage of energy t h r o u g h the use of phase change media.
M a n y of t h e salts w i t h w h i c h she has e x p e r i m e n t e d over the years have been
r a t h e r t h o r o u g h l y investigated, a n d c e r t a i n l y there are a p p l i c a t i o n s w h e r e t h e
use of t h i s m e t h o d o f heat storage w o u l d be applicable. A s t o w h i c h of these
salts are best s u i t e d f o r mass p r o d u c t i o n techniques a n d u t i l i z a t i o n i n the solar
energy field, I suggest t h a t y o u contact D r . Telkes w h o is m u c h m o r e q u a l i f i e d
t h a n m y s e l f t o a n s w e r t h i s question.
T h e l i f e cycle cost of molten-salt storage versus w a t e r storage has been a
m a t t e r o f some debate f o r m a n y years. N a t u r a l l y the proponents of each system
are able t o p o i n t to t h e advantages of the system w h i c h they f a v o r . Those f a v o r i n g the use o f w a t e r storage p o i n t t o the f a c t t h a t w a t e r i s r e a d i l y available,
cheap, e a s i l y handled, r e l a t i v e l y noncorrosive, stable, nontoxic, has a good t h e r m a l heat capacity, etc. T h e proponents o f t h e use of t h e molten-salt m e t h o d of
h e a t storage p o i n t to t h e f a c t t h a t a m u c h s m a l l e r space is r e q u i r e d f o r t h e
storage of a g i v e n q u a n t i t y of heat, t h e cost of t h e container to house t h i s
storage i s less t h a n t h a t r e q u i r e d o f w a t e r , t h e i n s u l a t i o n problems a r e m i n i m i z e d due t o t h e systems o p e r a t i n g a t a r e l a t i v e l y constant t e m p e r a t u r e , a n d
o t h e r advantages m a y be p o i n t e d o u t t h a t do n o t r e a d i l y come to m y m i n d . T h e
l i f e cycle cost of one m e t h o d versus the o t h e r l a r g e l y depends u p o n t h e r e l a t i v e
first cost o f the i n s t a l l a t i o n a n d the frequency w i t h w h i c h the heat t r a n s f e r
media m u s t be replaced or replenished. Since I a m a proponent o f t h e use o f
w a t e r f o r heat storage, I a m of t h e o p i n i o n t h a t t h e l i f e cycle cost of such a syst e m is less t h a n t h a t w h i c h w o u l d u s u a l l y be t h e case i f molten-salt storage w e r e
employed.
Q u e s t i o n 2 . M r . M o r r i s o n , has a n effective a n d economical solar cooling equipm e n t been designed, a n d i s i t ready f o r mass p r o d u c t i o n ?
105
REPLY FROM MR. MORRISON
A n s w e r . V a r i o u s absorption type r e f r i g e r a t i o n systems have been successfully
used w i t h solar energy as the p r i m a r y source of power. M o s t of the systems t h a t
u t i l i z e a b s o r p t i o n t y p e equipment w h i c h is c u r r e n t l y being m a n u f a c t u r e d accomp l i s h t h e cooling by " d e r a t i n g " the r e f r i g e r a t i o n components. A s a n e x a m p l e ; i n
o r d e r t o produce 3 tons of r e f r i g e r a t i o n , a considerably l a r g e r u n i t , designed t o
operate a t t e m p e r a t u r e associated w i t h gas flames, is used w i t h the l o w e r temp e r a t u r e h e a t source i n order t o produce the desired cooling effect. I n general,
these systems are u s u a l l y backed u p w i t h some t y p e of conventional energy
source. I t is m y o p i n i o n t h a t such systems cannot operate a t t h e efficiencies w h i c h
are o r d i n a r i l y obtainable w h e n these u n i t s are o p e r a t i n g a t t h e i r design point.
V a r i o u s e x p e r i m e n t a l models of solar powered absorption t y p e r e f r i g e r a t i o n
systems have been produced by U n i v e r s i t y of F l o r i d a personnel a n d other
research organizations. A l l of t h i s equipment is custom designed to s u i t the part i c u l a r research need. I n m y o p i n i o n these prototypes have proved to be operat i o n a l l y effective, h o w e v e r a d d i t i o n a l redesign a n d development w o u l d be
required, i f these u n i t s were t o be mass produced. I t is not probable t h a t any of
these r e f r i g e r a t i o n devices w i l l become economical f r o m the s t a n d p o i n t of first
cost, u n t i l mass p r o d u c t i o n procedures have been employed i n t h e i r manufacture. I n a l l p r o b a b i l i t y , a custom designed r e f r i g e r a t i o n system w o u l d prove
economically acceptable, i f the life-cycle cost were considered a n d i f t h i s equipment operated on a y e a r r o u n d basis.
QUESTIONS
S U B M I T T E D BY CONGRESSMAN MOORHEAD TO M R .
BUTT
Q u e s t i o n 1. M r . B u t t , w h a t are the 20-year life-cycle costs, i n c l u d i n g i n i t i a l
cost of equipment, l i f e - t i m e fuel, e n v i r o n m e n t a l i m p a c t a n d maintenance costs
f o r solar h e a t i n g systems over conventional oil, gas or electric systems?
I s t h i s premised on expectation t h a t the cost of o i l a n d e l e c t r i c i t y w i l l increase ?
W h a t happens i f f u e l costs decrease ?
REPLY BY MR. BUTT
A n s w e r . A s is indicated, these economic analyses are based upon the expectat i o n t h a t e l e t r i c i t y prices w i l l escalate i n the f u t u r e a t a r a t e of 7.5 percent
per year. T h i s represents a 5 percent r a t e of general i n f l a t i o n plus 2 % percent,
recognizing t h a t c o n v e n t i o n a l energy costs can be expected to increase a t rates
greater t h a n the average or o v e r a l l rate of i n f l a t i o n . S i m i l a r l y , the analyses are
based upon a forecast of a 10 percent per year year r a t e of escalation i n f u e l o i l
a n d n a t u r a l gas prices. I believe t h a t few, i f any, economists w i l l d i s p u t e t h a t
f u t u r e general i n f l a t i o n rates w i l l be 5 percent or more per year. T h e r e are considerable differences of o p i n i o n r e g a r d i n g t h e extent to w h i c h the r a t e of escalat i o n i n c o n v e n t i o n a l energy costs m a y or m a y not exceed the general r a t e of
inflation. More to this point later.
L e t us select three of the specific examples analyzed i n the economic analyses
to i l l u s t r a t e " l i f e cycle costs."
T h e first of these is a 75 square foot " s t a n d a r d " solar w a t e r heater i n s t a l l e d
i n a s i n g l e - f a m i l y residence on the E a s t Coast. T h i s example appears a t t h e t o p
of T a b l e I - A on the a t t a c h m e n t . Y o u w i l l note t h a t , a t a present e l e c t r i c i t y r a t e
of SVi 4 per k i l o w a t t hour, the pay-out t i m e — m e a n i n g the t i m e w i t h i n w h i c h the
c u m u l a t i v e savings equal the first cost—is 8.2 years. Reflecting c o n t i n u i n g escal a t i o n beyond t h i s p o i n t of equivalency, c u m u l a t i v e savings i n t w e n t y years
w o u l d e q u a l 3.93 times first cost. I f e l e c t r i c i t y cost escalated a t only 5 percent
per year, w h i c h w o u l d mean t h a t t h e "constant d o l l a r " cost of e l e c t r i c i t y w o u l d
n o t change a n d the increase i n cost w o u l d s i m p l y reflect general i n f l a t i o n , the
l e n g t h of t i m e r e q u i r e d t o " p a y - o u t " w o u l d increase f r o m 8.2 years t o 8.9 years.
Over a t w e n t y year period, the c u m u l a t i v e savings w o u l d equal 3.05 times first
cost.
T h e t e r m " l i f e cycle cost a n a l y s i s " is somewhat ambiguous. I t m a y s i m p l y
mean a comparison of c u m u l a t i v e savings t o first cost, i n w h i c h case t h e answers
presented above w o u l d apply.
106
H o w e v e r , some consider t h a t a l i f e cycle cost analysis s h o u l d discount f u t u r e
cash flows to t h e i r "present v a l u e , " u s i n g a n a p p r o p r i a t e discount rate. T h e
choice of a n a p p r o p r i a t e discount rate, i n a case such as this, is a m a t t e r o f
j u d g m e n t . I f we elect to use as a discount r a t e t h e m a x i m u m i n t e r e s t w h i c h
t h e consumer m i g h t expect t o realize f r o m h i s savings i n e l e c t r i c energy cost,
were he t o i n v e s t t h e m i n l o n g t e r m savings w i t h a Savings a n d L o a n Association, w e m i g h t w e l l select 7.5 percent as a n a p p r o p r i a t e discount r a t e to a p p l y
i n d e t e r m i n i n g t h e present value of f u t u r e savings. U p o n t h i s basis, t h e present
v a l u e of t h e savings over a t w e n t y y e a r l i f e a r e 1.84 times t h e cost of t h e i n s t a l l a t i o n . T h e pay-out t i m e on t h i s basis is 10.8 years.
A s o u r second example, let us consider the same solar w a t e r h e a t i n g system
i n s t a l l e d i n t h e Southwest. T h e basic economic a n a l y s i s f o r the case also appears
on T a b l e I - A . Since e l e c t r i c rates t e n d generally t o be somewhat l o w e r i n t h i s
area t h a n i n t h e N o r t h e a s t , let us base o u r analysis upon a present cost of 3$
per k i l o w a t t h o u r f o r electric energy. W e note t h a t t h e p a y - o u t t i m e i n t h i s instance i s 7.1 y e a r s as c o m p a r e d t o t h e 8.2 years i n t h e preceding example. A s
w o u l d be a n t i c i p a t e d , t h e solar system operates somewhat m o r e efficiently i n
t h i s area. Therefore, over a t w e n t y y e a r p e r i o d w i t h e l e c t r i c i t y cost e s c a l a t i n g
a t 7.5 percent per year, c u m u l a t i v e savings a r e 4.74 times t h e i n i t i a l cost of t h e
solar equipment. I f e l e c t r i c i t y escalates a t o n l y 5 percent per year, c u m u l a t i v e
savings a r e 3.66 times t h e i n i t i a l cost. I f w e discount f u t u r e cash flows by 7.5
percent, t h e i r present v a l u e is 2.21 times t h e cost of t h e i n s t a l l a t i o n . P a y - o u t
t i m e i s 9.0 years.
A s a t h i r d example, l e t us consider t h e case i n w h i c h a 50 square f o o t solar
system i s i n s t a l l e d as a n a l t e r n a t i v e to n a t u r a l gas i n S o u t h e r n C a l i f o r n i a . T h i s
case i s s h o w n on T a b l e I - B . L e t us assume f u r t h e r t h a t t h e present m a r k e t
p r i c e of n a t u r a l gas is 12.5^ p e r t h e r m a n d t h a t i t escalates i n p r i c e a t a r a t e
of 10 percent p e r year. U p o n t h i s basis, pay-out i s i n 16.6 years. C u m u l a t i v e
savings o v e r a t w e n t y y e a r p e r i o d a r e o n l y 1.48 times t h e cost o f t h e o r i g i n a l
equipment. W e r e w e to assume t h a t n a t u r a l gas prices escalated a t o n l y 5 percent per year, w h i c h w o u l d i m p l y t h a t t h e i r "constant d o l l a r " m a g n i t u d e d i d
n o t change, c u m u l a t i v e savings i n t w e n t y years w o u l d only be 0.85 t i m e s t h e
i n i t i a l cost. P a y - o u t w o u l d be m a t e r i a l l y g r e a t e r t h a n t w e n t y years—22.1 years.
I f w e assumed t h e 10-percent r a t e o f escalation i n gas prices b u t d i s c o u n t e d
f u t u r e savings by 7.5 percent p e r y e a r t o d e r i v e t h e i r "present v a l u e , " w e w o u l d
find t h a t t h e "present v a l u e " o f t h e savings i n t w e n t y years w o u l d be .67 times
t h e cost o f t h e i n i t i a l i n s t a l l a t i o n . Obviously, o n t h i s basis, t h e results of a " l i f e
cycle cost a n a l y s i s " w o u l d be negative.
These t h r e e examples a r e r e p r e s e n t a t i v e of a s u b s t a n t i a l p o r t i o n o f t h e r a n g e
of l i f e cycle results w h i c h could be a n t i c i p a t e d . T h e y i l l u s t r a t e t h e p o i n t t h a t
l i f e cycle results a r e dependent u p o n the i d e n t i t y a n d cost o f t h e c o n v e n t i o n a l
energy f o r m b e i n g replaced, t h e r a t e o f f u t u r e cost escalation a n d also u p o n clim a t i c factors.
T h e final p o r t i o n o f t h e question asks, " W h a t i f f u e l costs decrease?" A l t h o u g h i t is c e r t a i n l y possible t o t e m p o r a r i l y r o l l back domestic crude o i l a n d
n a t u r a l gas prices by l e g i s l a t i v e action, I scarcely believe t h a t , i n t h e c o n t e x t of
t w e n t y years, t h i s can be accomplished w i t h o u t , a t t h e same t i m e , a s s u r i n g t h a t
shortages of domestic resources w i l l become so g r e a t as t o lead t o serious quest i o n s of reasonably b r o a d a v a i l a b i l i t y . R o l l backs i n t h e price o f e l e c t r i c i t y w o u l d
i n e v i t a b l y lead to the i n a b i l i t y of t h e u t i l i t y i n d u s t r y to o b t a i n ^naneins: a n d
w o u l d i n e v i t a b l y lead t o severe shortages of electric power. I recognize t h a t
there a r e some f u e l economists w h o feel t h a t the c o n t r o l exercised b y O.P.E.C.
w i l l r e l a x a n d t h a t , therefore, t h e r e w i l l be a t e m p o r a r y r e d u c t i o n i n t h e p r i c e of
f o r e i g n petroleum. A g a i n , t h i s could o n l y be t e m p o r a r y i n n a t u r e since l o w e r
prices w i l l encourage more r a p i d acceleration i n consumption. A l t h o u g h t h e
reserves a v a i l a b l e t o m a n y of t h e O.P.E.C. n a t i o n s a r e v e r y large, they, too,
w o u l d become inadequate to meet w o r l d w i d e d e m a n d as i t w o u l d develop a t subs t a n t i a l l y reduced p r i c e over a n extended p e r i o d of t i m e . W e should bear i n
m i n d t h a t , i n t h e face o f a 5-percent per y e a r r a t e of i n f l a t i o n , a contsant d o l l a r
p r i c e f o r f u e l i n t w e n t y years represents a 60-percent decrease i n " r e a l " or "cons t a n t d o l l a r " prices.
I t is, of course, m a t h e m a t i c a l l y possible t o c a l c u l a t e l i f e cycle cost analvses
u p o n a n y given h y p o t h e t i c a l scenario e n v i s i o n i n g reductions i n f u e l prices. W e
believe t h a t such analyses w o u l d be most u n r e a l i s t i c .
Q u e s t i o n 2 . M r . B u t t , i f p r o d u c t i o n of solar h e a t i n g u n i t s increases, h o w soon
could w e expect t h e cost of equipment t o decrease a n d by h o w much?
107
REPLY B Y MR. BUTT
A n s w e r . Present solar equipment volume is s t i l l q u i t e modest. I w o u l d n o t expect any s i g n i f i c a n t p r i c e decreases r e l a t e d to "economies of scale" t o emerge
u n t i l volume has reached t e n times i t s present level. H o w e v e r , t h e best i n f o r m a t i o n a v a i l a b l e t o us indicates t h a t 1975 volume is r o u g h l y t h r e e times t h a t of
1974. W i t h v i g o r o u s a c t i o n i n support of c o n t i n u i n g g r o w t h , m a r k e t v o l u m e
could g r o w t o levels i n w h i c h cost reductions r e l a t e d t o economies of scale w o u l d
be realized i n t h r e e years. W e m u s t also consider cost reductions w h i c h r e l a t e t o
engineering development. A g a i n , these are i n d i r e c t l y r e l a t e d t o increase i n m a r k e t v o l u m e since m a r k e t v o l u m e — b o t h c u r r e n t a n d forecast—influences the
" i n v e s t m e n t " of f u n d s i n engineering development a c t i v i t y . A s a m a t t e r o f fact,
t h e r e are cost reductions of modest dimensions o c c u r r i n g c u r r e n t l y as a r e s u l t
of c o n t i n u i n g engineering development.
Based upon m y o w n general knowledge of the s i t u a t i o n , as w e l l as upon discussion w i t h others i n t h e i n d u s t r y , I w o u l d a n t i c i p a t e t h a t cost reductions i n t h e
range of 25 percent to 50 percent w i l l develop i n the n e x t five t o t e n years, assumi n g t h a t v o l u m e develops r a p i d l y as t h e r e s u l t of aggressive a c t i o n t o accelerate
commercialization. Please note t h a t these percentages r e l a t e t o "constant doll a r " costs a n d do n o t i n c l u d e t h e effect of i n f l a t i o n .
A m e a n i n g f u l analogy is p r o v i d e d by t h e price experience of t h e household
appliance i n d u s t r y . Over t h e l a s t 25 years, t h e p r i c e ( i n c u r r e n t d o l l a r s ) of
equivalent household appliances has increased very l i t t l e despite the very considerable i n t e r v e n i n g i n f l a t i o n . " C o n s t a n t d o l l a r " prices of most appliances are
on t h e order of 50 percent of 1950 prices.
QUESTIONS
SUBMITTED
BY
CONGRESSMAN
MOORHEAD
TO M R .
BARFIELD
Q u e s t i o n 1 . M r . B a r f i e l d , since the r a p i d increase i n u t i l i t y costs has recently
plagued t h e financial s t a b i l i t y o f subsidized low-income h o u s i n g projects, has
H U D considered g i v i n g preference t o projects u s i n g solar h e a t i n g a n d cooling
equipment i n order to m i n i m i z e f u t u r e increases i n costs?
REPLY B Y
MR.
BARFIELD
A n s w e r . M r . C h a i r m a n , H U D does n o t a t t h i s t i m e give preference t o projects
u s i n g solar h e a t i n g a n d cooling equipment, a l t h o u g h we recognize t h a t there
a r e p o t e n t i a l savings i n costs. As I stated i n m y prepared testimony, the D e p a r t m e n t w i l l approve, o n a n i n d i v i d u a l r e v i e w basis, p r o j e c t s w h i c h use solar
energy equipment. B u t , as I also stated i n m y testimony, w e do n o t yet have
objective standards by w h i c h solar energy systems m a y be tested, evaluated,
a n d approved f o r general use on a widespread basis. N o r do we k n o w t h e r e a l
economies of solar energy systems a n d the trade-off between first costs a n d
o p e r a t i n g costs. A d d i n g solar h e a t i n g a n d cooling equipment t o low-income
subsidized housing projects, o f course, w i l l increase the p r o j e c t first cost.
W h e t h e r t h e savings i n f u e l costs w i l l j u s t i f y the increased cost of subsidized
projects, are policy questions w h i c h cannot be answered w i t h o u t accurate cost
a n d benefit data.
T h e d e m o n s t r a t i o n p r o g r a m is designed to o b t a i n t h i s i n f o r m a t i o n , a n d we
expect t o i n c l u d e low-income subsidized projects i n t h e demonstrations t o o b t a i n
d a t a w h i c h w i l l p e r m i t us t o m a k e specific recommendations i n t h e f u t u r e .
Q u e s t i o n 2 . M r . B a r f i e l d , i f , as m a n y experts feel, solar technology is ready
f o r p r a c t i c a l commercial a p p l i c a t i o n a n d i f a d i r e c t consumer loan p r o g r a m
could encourage mass p r o d u c t i o n of solar equipment a n d w o u l d cause a decrease
i n consumer costs, w h y m u s t we w a i t f o r the research a n d d e m o n s t r a t i o n prog r a m s to be concluded before h e l p i n g consumers finance t h e i n s t a l l a t i o n of
energy-conserving solar equipment?
A n s w e r . M r . C h a i r m a n , t h e phrase, "solar technology is ready f o r p r a c t i c a l
c o m m e r c i a l a p p l i c a t i o n " has been w i d e l y used i n solar energy l i t e r a t u r e , v a r i o u s
hearings, a n d o t h e r f o r u m s . Y e t the most comprehensive survey of solar heated
buildings, t h a t by M r . W i l l i a m S h u r c l i f f , l i s t s only 187 b u i l d i n g s i n the most
recent, November 11, 1975, edition, beginning w i t h t h e 1939 M I T house. Only
a v e r y f e w of these i n s t a l l a t i o n s has been operated f o r as l o n g as ten years,
a n d even f e w e r have been i n s t r u m e n t e d t o p r o v i d e a c o n t i n u i n g operating
h i s t o r y . T h i s is a n a r r o w d a t a base on w h i c h t o b u i l d c o m m e r c i a l application?
108
F o r example, w h i l e m a n y of t h e components i n a solar energy system are
s t a n d a r d products, others a r e not, a n d the t o t a l systems h a v e n o t generally
been subjected t o detailed e v a l u a t i o n . Successful c o m m e r c i a l a p p l i c a t i o n s i n v o l v e
assurances to the buyer t h a t the system he i n s t a l l s w i l l deliver the p r o m i s e d
energy o u t p u t over the promised l i f e of t h e system w i t h i n o p e r a t i n g a n d m a i n t e nance costs he is w i l l i n g t o pay. W e do n o t believe t h a t these assurances can
be g i v e n f o r a n u m b e r of systems n o w being proposed, since adequate test d a t a
a r e n o t a v a i l a b l e . A s one example, o p e r a t i n g a n a l u m i n u m collector assembly
w i t h a l i q u i d coolant u t i l i z i n g a n anti-freeze s o l u t i o n m a y r e q u i r e a n a n n u a l
or b i e n n i a l d r a i n - d o w n a n d replacement o f the anti-freeze to a v o i d corrosion,
b u t t h e cost o f t h i s anti-freeze replacement has n o t been g e n e r a l l y touched on
i n discussions of system economics.
I a m n o t s a y i n g t h a t we have t o develop a n e w technology. I a m s a y i n g t h a t
w e h a v e to l e a r n to use the e x i s t i n g technology effectively a n d economically.
T h e research, development, a n d d e m o n s t r a t i o n p r o g r a m set f o r t h i n E R D A - 2 3 A
is, I believe, t h e best approach y e t a v a i l a b l e f o r m o v i n g t h i s technology f r o m
one i n v o l v i n g one-of-a-kind, hand-tooled p r o d u c t s t o a technology i n v o l v i n g the
reliable, m a r k e t a b l e , t r u s t w o r t h y p r o d u c t s necessary f o r consumer acceptance.
The subcommittee w i l l stand adjourned, subject to the call of the
Chair.
[Whereupon, at 12 noon, the subcommittee was adjourned, subject
to the call of the Chair.]
[ T h e f o l l o w i n g material was received by the subcommittee f o r inclusion i n the p r i n t e d record:]
S T A T E M E N T OF H O N . L I N D Y JBOGGS, A REPRESENTATIVE I N CONGRESS F R O M T H E
S T A T E OF L O U I S I A N A
M r . C h a i r m a n , i n 1973, I h a d the p r i v i l e g e t o co-sponsor t h e first " S o l a r H e a t i n g a n d Cooling D e m o n s t r a t i o n A c t " , a n d h a v e since been a s u p p o r t e r of i t s
subsequent l a w s a n d s i m i l a r ones w h i c h sought to p r o v i d e financial assistance
t o t h e f o r e s i g h t e d users of solar energy, a n d w h i c h collectively encouraged t h e
u t i l i z a t i o n of solar energy i n homes, businesses, i n d u s t r y a n d government.
I believed then, a n d s t i l l do, t h a t the d e m o n s t r a t i o n of t h e f e a s i b i l i t y of
u s i n g solar energy f o r t h e h e a t i n g a n d cooling of o u r b u i l d i n g s c o u l d h e l p t o
relieve t h e demand u p o n our energy a n d f u e l supplies, a n d t h a t the technologies
f o r solar h e a t i n g a n d cooling have reached the p o i n t of efficient mass commerc i a l a p p l i c a t i o n i n t h e U n i t e d States.
M y S t a t e of L o u i s i a n a has a f f i r m e d a s i m i l a r f a i t h i n a solar energy system,
a n d is a c t i v e l y w o r k i n g to construct a viable p r o g r a m f o r i t s citizens.
O n October 16, L o u i s i a n a State U n i v e r s i t y hosted a conference a t t e n d e d b y
m o r e t h a n 250 people, w h i c h r e p o r t e d on t h e status a n d p o t e n t i a l of solar energy
research i n L o u i s i a n a , on n a t i o n a l plans f o r solar energy, a n d on demonstration projects now underway.
T h e conference addressed t h e p r o b l e m of cooling, the a l l - i m p o r t a n t process
t o L o u i s i a n a a l o n g w i t h d e h u m i d i f i c a t i o n , w h i c h w h i l e n o w technologically
feasible, i s also t h e most technologically d e m a n d i n g process f o r researchers. I t
w a s e s t i m a t e d by t h e attendees t h a t the development of a n efficient a n d econ o m i c a l energy storage system, even w i t h a back-up system, could reduce energy
c o n s u m p t i o n by as m u c h as 80 percent. Thus, each d e m o n s t r a t i o n p r o j e c t is n o w
approached w i t h t h e v i e w t o w a r d m a k i n g a system economically c o m p e t i t i v e
and realistic.
A s evidence o f the e x t e n t t o w h i c h L o u i s i a n a n s a r e c o m m i t t e d to energy a l t e r natives, o u r A t t o r n e y General i n h i s r e m a r k s o u t l i n e d the l e g a l problems of
mass a p p l i c a t i o n of solar energy, such as access to s u n l i g h t , b u i l d i n g codes,
a n d z o n i n g l a w s , a n d prescribed legal research t o i n s u r e t h a t p e r f o r m a n c e standa r d s become a h i g h p r i o r i t y . M a n y p o t e n t i a l a p p l i c a t i o n s of solar energy w e r e
catalogued, r a n g i n g f r o m f o o d d e h y d r a t i o n a n d meat p a c k a g i n g to heated s w i m m i n g pools, h y d r o g e n p r o d u c t i o n , electric power towers, a n d ocean-thermal p o w e r
plants.
N e x t week, M r . C h a i r m a n , the L o u i s i a n a D e p a r t m e n t of C o n s e r v a t i o n w i l l
sponsor a p r o g r a m a i m e d a t d i s s e m i n a t i o n of t h e energy conservation i n f o r m a t i o n c o n t a i n e d i n i t s recent p u b l i c a t i o n E n e r g y C o n s e r v a t i o n P r o g r a m G u i d e
109
f o r I n d u s t r y , and a t o b t a i n i n g feedback f r o m i n d u s t r y on the ways i n w h i c h
the State m a y be of greatest assistance to them. I n a d d i t i o n , f r o m A p r i l 19-23,
1976, L o u i s i a n a State U n i v e r s i t y w i l l be the site of t h e Second Southeasern
Conference on the A p p l i c a t i o n of Solar Energy.
Solar energy is no panacea to our c r i t i c a l energy needs. Yet, w h i l e L o u i s i a n a
m a y not be blessed w i t h as conducive a c l i m a t e as other States, and, on the
other hand, abounds i n precious resources such as o i l and n a t u r a l gas, the
citizens and government of L o u i s i a n a are l e t t i n g i t r a p i d l y occupy a significant
place i n t o t a l energy design.
U n f o r t u n a t e l y , M r . C h a i r m a n , t h a t concern is n o t being shared n a t i o n a l l y .
Review, i f you w i l l , the hundreds of publications w h i c h have been sponsored by
p r i v a t e a n d i n d u s t r i a l research u n i t s and made available to the Congress y e a r l y
since 1972, such as " O u t l o o k f o r Energy i n the U n i t e d States t o 1985", and " A
C a l l f o r A c t i o n ! — U . S . E n e r g y Independence by 1985". Read also the October
1975 M o n t h l y E n e r g y R e p o r t of the F e d e r a l Energy A d m i n i s t r a t i o n and a n
accompanying r e p o r t f r o m F E A A d m i n i s t r a t o r F r a n k Z a r b on the status of
the U n i t e d States' energy efforts compared to i n t e r n a t i o n a l programs.
None of these, a n d f e w of the others, make mention of energy alternatives,
i.e., solar energy. T h e Congress h a d a glimpse of a promise f r o m i n d u s t r y and
government back i n 1972 i n testimony presented to t h e t h e n Committee on
Science a n d Astronautics. Reports f r o m the subunit E x e c u t i v e Committee o f
the Solar E n e r g y Panel of the E x e c u t i v e Branch's Committee on Energy R & D
Goals f u r t h e r comprised of personnel f r o m the N a t i o n a l Aeronautics and Space
A d m i n i s t r a t i o n and the N a t i o n a l Science Foundation, said t h a t each of the
executive agencies contacted was ready and w i l l i n g to step up i t s efforts i n
solar energy research, t h a t each considered i t h a d the c a p a b i l i t y to conduct
successful programs of t h i s type, and t h a t there were areas of research w h i c h
appeared p r o m i s i n g a n d / o r not then being pursued w h i c h each agency w o u l d
be w i l l i n g to u n d e r t a k e were i t given the c h a r t e r to do so.
M r . C h a i r m a n , t h i s Subcommittee must u n d e r w r i t e t h a t charter, m u s t legisl a t i v e l y encourage a c o m m i t t e d n a t i o n a l p r o g r a m of solar energy research, and
development, and u t i l i z a t i o n . Our energy deficiencies, our s t a n d a r d of l i v i n g ,
and the a l r e a d y dedicated a n d zealous enterprise of our State and L o c a l constituencies, deserve t h a t endorsement.
STATEMENT
BY
SHEET
METAL
WORKERS'
INTERNATIONAL
ASSOCIATION
T h e energy crisis of the last three years, and the s p i r a l i n g f u e l costs w h i c h
continue to characterize i t , have demonstrated the need to accelerate t h e u t i l i z a t i o n of renewable energies such as solar r a d i a t i o n . The c u r r e n t imbalance between the domestic supply a n d the demand f o r fuels a n d energy is l i k e l y to cont i n u e unless a f e d e r a l effort is made to test, utilize, and promote new f o r m s of
energy.
Solar energy is nonpolluting, inexhaustible and can become inexpensive. A n d
Solar technology has developed to the p o i n t where commercial a p p l i c a t i o n is not
only p r a c t i c a l b u t economically desirable. However, the f u l l p o t e n t i a l of solar
energy w i l l not be realized u n t i l the cost of solar h a r d w a r e is reduced t h r o u g h
mass m a n u f a c t u r i n g . T o increase public demand f o r solar h a r d w a r e a p r o g r a m of
Federal assistance is necessary. T h i s assistance should include b u t not be l i m i t e d
to income t a x credits f o r homebuyers a n d builders w h o purchase a n d i n s t a l l solar
equipment, loans t o homeowners and builders w h o purchase and i n s t a l l solar
equipment, the use of solar equipment i n buildings financed w i t h F e d e r a l funds,
F e d e r a l insurance of solar equipped buildings, d i r e c t subsidies t o assist i n the
purchase of solar equipment, and F e d e r a l grants and contracts to the research
c o m m u n i t y and m a n u f a c t u r e r s f o r the development of solar technologies.
T h e Sheet M e t a l W o r k e r s ' I n t e r n a t i o n a l Association has become active i n
energy conservation and solar energy not only because i t makes sense f o r
America's energy needs b u t because jobs created i n t h i s area w i l l p u t unemployed sheet m e t a l w o r k e r s back to w o r k .
A t the present tfme, one shpet m e t a l w o r k e r i n five is unemployed. M a n y more
are w o r k i n g less t h a n f u l l time.
Energv conservation a n d the use of solar energy can have a large i m p a c t on
unemployment. I t has been estimated by the S t a n f o r d Research I n s t i t u t e t h a t
one-fourth of the dollars invested i n solar h e a t i n g and cooling w i l l go t o t h e
62-322 O - 75 - 8
110
l a b o r costs of i n s t a l l a t i o n . I n a d d i t i o n , t h e r e w i l l be m a n y jobs created f a b r i c a t i n g t h e collectors, storage tanks, d u c t i n g a n d a l l i e d equipment necessary f o r a
solar i n s t a l l a t i o n .
A F e d e r a l p r o g r a m t o p r o m o t e t h e use of solar energy w i l l n o t o n l y a i d i n
a c h i e v i n g energy independence, b u t i t w i l l help t o p u t A m e r i c a n s back t o w o r k .
D o l l a r s n o w being spent on expensive f o s s i l f u e l s f r o m a b r o a d w o u l d be b e t t e r
spent r e d u c i n g joblessness by harnessing less expensive, i n e x h a u s t i v e energies
a t home.
A s a r e s u l t o f o u r i n t e r e s t i n t h e use of solar energy, o u r u n i o n has t a k e n
several steps:
W e a r e e d u c a t i n g our m e m b e r s h i p t o t h e possible i m p a c t of energy conservat i o n a n d solar energy. A t a n A u g u s t Conference of our union's business agents
w e devoted n e a r l y t w o days t o energy developments a n d the p a r t o u r u n i o n c a n
play.
O u r N a t i o n a l T r a i n i n g F u n d , recognized as one of the best of a p p r e n t i c e s h i p
p r o g r a m s , is n o w c o n d u c t i n g a survey t o d e t e r m i n e i f a d d i t i o n a l courses a r e
needed f o r t h e c o n s t r u c t i o n of solar h a r d w a r e .
W e commissioned t h e S t a n f o r d Research I n s t i t u t e a n d the M i t r e C o r p o r a t i o n
t o m a k e studies of the i m p a c t on t h e sheet m e t a l i n d u s t r y of solar development
a n d energy conservation. Copies of these r e p o r t s have been sent to every member
o f Congress.
T h e Sheet M e t a l W o r k e r s ' I n t e r n a t i o n a l A s s o c i a t i o n s t r o n g l y supports a d i r e c t
l o w - i n t e r e s t l o a n p r o g r a m t o assist homeowners a n d b u i l d e r s i n p u r c h a s i n g a n d
i n s t a l l i n g solar equipment. T h e passage of H 3849 w i l l h e l p achieve t h e goals
of f o s s i l f u e l conservation, solar energy development a n d new j o b o p p o r t u n i t i e s
f o r Americans.
NATIONAL
ASSOCIATION
OF H O M E
BUILDERS,
Washington, D.C., December
Hon. WILLIAM A.
5 , 1975.
BARRETT,
Chairman, Subcommittee o n Housing a n dCommunity Development,
Committee o nBacking, Currency, and Housing, House o f Representatives,
Washington, D.C.
DEAR MR. CHAIRMAN : I s h o u l d l i k e t o request t h a t t h i s l e t t e r be i n c l u d e d i n
the record of t h e hearings t h e Subcomittee h e l d on November 5, 1975, i n r e g a r d
t o H . R . 3849. T h i s b i l l w o u l d establish w i t h i n t h e D e p a r t m e n t o f H o u s i n g a n d
U r b a n Development a d i r e c t l o w - i n t e r e s t l o a n p r o g r a m t o assist homeowners a n d
b u i l d e r s i n p u r c h a s i n g a n d i n s t a l l i n g solar h e a t i n g equipment.
N A H B , as the t r a d e association of t h e home b u i l d i n g i n d u s t r y w i t h a members h i p consisting o f m o r e t h a n 74,000 member firms i n 603 l o c a l associations
t h r o u g h o u t t h e U n i t e d States, i s v i t a l l y i n t e r e s t e d i n t h e subject of energy conservation, p a r t i c u l a r l y as i t relates t o r e s i d e n t i a l dwellings. Consequently, w e
have c a r e f u l l y r e v i e w e d H . R . 3849 a l o n g w i t h i t s c o m p a n i o n b i l l H . R . 8524, a n d
endorse t h e i r purpose.
Sincerely,
J.
S. N O R M A N ,
President.
[ T h e f o l l o w i n g statement of R o b e r t F a w c e t t , c h a i r m a n of the F u e l O i l S u p p l y
S t u d y C o m m i t t e e of t h e N e w E n g l a n d F u e l I n s t i t u t e before t h e Senate Select
C o m m i t t e e on S m a l l Business on October 8, 1975, w a s received b y t h e subcommittee f o r inclusion i n the record:]
S T A T E M E N T OF N E W E N G L A N D F U E L
INSTITUTE
M y n a m e is R o b e r t F a w c e t t , I a m P r e s i d e n t of R o b e r t F a w c e t t & Son Co.,
Inc., a moderate sized r e t a i l h e a t i n g o i l a n d o i l h e a t i n g equipment business i n
Cambridge, Massachusetts. T o d a y , I represent t h e N e w E n g l a n d F u e l I n s t i t u t e of
w h i c h I a m a past president, a n d p r e s e n t l y c h a i r m a n of i t s F u e l O i l S u p p l y
S t u d y Committee. A c c o m p a n y i n g me is Charles H . B u r k h a r d t , E x e c u t i v e Vice
P r e s i d e n t a n d M a n a g i n g D i r e c t o r of t h e I n s t i t u t e , w h o w i l l answer a n y quest i o n s posed by members of t h e Committee.
A s y o u are w e l l a w a r e Senator M c I n t y r e , t h e N e w E n g l a n d F u e l I n s t i t u t e is
a n association of about 1300 independent r e t a i l a n d wholesale h e a t i n g o i l dist r i b u t o r s t h r o u g h o u t t h e s i x state region. T h i s association w a s i n c o r p o r a t e d
Ill
under the laws of the Commonwealth of Massachusetts i n 1946, as the O i l H e a t
I n s t i t u t e of New England. Our corporate name was changed to New England
F u e l I n s t i t u t e i n 1962.
The independent sector of the heating oil industry i n New England sells more
t h a n 85 percent of a l l distillate product at retail. I n addition 40 percent of the
f u e l o i l sold at the wholesale level is marketed by independents. F u r t h e r , 19.4
percent of a l l the o i l heating equipment sold throughout the U n i t e d States is
installed i n New England homes and buildings. Over 90 percent of this large
q u a n t i t y of o i l heating equipment and accessories are sold, installed and serviced
by independent heating oil dealer-distributors. About 125,000 to 140,000 oil
burners are sold and installed i n New England every year. Most of these are
replacements. W e usually average somewhere between 38,000 to 50,000 o i l burners
as new installations. These can be conversions f r o m other fuels or installations
i n newly b u i l t homes.
There are 2,400,000 oil burner units operating i n New England at the present
t i m e ; about 890,000 gas b u r n i n g units and about 275,000 units u t i l i z i n g elect r i c i t y . Gas and electricity combined account for about 1,165,000 centrally heated
units, w h i l e o i l has slightly over 2,400,000. U n l i k e most utilities, the r e t a i l oil
heating dealer-distributor sells and installs heating equipment and accessories
a n d / o r newer replacement equipment himself. W i t h a present market of over
2,400,000 o i l heating customers, i t is obvious t h a t a built-in, practical and
effective merchandising, marketing, engineering, i n s t a l l a t i o n and service mechanism exists on a broad scale i n New England f o r any product a n d / o r process
to which the independent segment of the o i l heating i n d u s t r y would apply
itself.
Therefore, we believe t h a t the heating oil dealer-distributor apparatus i n
New England is ideally endowed w i t h a l l of the experience, technical skills,
processes and procedures necessary f o r a mass introduction to the New England
market, of solar heat generating equipment as an adjunct to existing or proposed
o i l heating systems.
W e w o u l d l i k e to take this opportunity Senator to review f o r a moment or
t w o how we came to this type of thinking. I n a true sense, i t was due to
stimulus presented to us by you and M r . Cross, the Professional Staff Member
of this Senate Select Subcommittee on Small Business. W h e n you first approached us through M r . Cross lasv May, we had mixed feelings about entert a i n i n g any effort t o w a r d popularizing or selling and i n s t a l l i n g solar heating
equipment. A t t h a t t i m e we viewed competitively rather t h a n complementary.
D u r i n g the course of a series of meetings requested by you and attended by
M r . Cross, we began to see t h a t there was a strong potential f o r New England
to achieve some independence f r o m foreign energy imports i f solar energy was
to be used on any large scale i n conjunction w i t h o i l as a source of energy f o r
home and domestic hot w a t e r heating. B y the t e r m "domestic hot water heating," we mean hot water produced at the faucet f o r bathing, cleaning, washing,
etc. Solar heating w o u l d be a practical way to reduce New England's dependence
on imported refined product, specifically distillate and residual, and yet provide
a means of sustaining the livelihood of the more t h a n 2000 retail, small business,
heating oil dealers and distributors throughout New England, who provide jobs
f o r w e l l over 35,000 people.
.Since the New England climate is such as to have m a n y periods w i t h o u t
sunshine and extremely cold winters, i t is our considered opinion t h a t solar
energy could supply, theoretically, i n an oil heated home, up to about 35 percent
of the t o t a l heat required. More practically, this w i l l evolve to about 28% t o
30%. Thus, through the application of solar energy as an adjunct to oil heat,
many more people could enjoy the benefit, comfort, virtues and service of oil
heat w i t h o u t substantially increasing or, more practically, even decreasing
New England's dependence upon imported, refined product.
Continued meetings w i t h your representative and sustained investigation by
the N E F I staff of the solar energy field and its potential, resulted i n a change
i n philosophy on the p a r t of New England F u e l I n s t i t u t e . This became sharply
apparent about t w o months ago, and was accepted by the officers of the corpor a t i o n and the chairmen of the standing committees, as w e l l as the F u e l O i l
Supply Study Committee. W i t h this change and acceptance of the fact t h a t
solar energy could be a valuable adjunct to the whole New England consumer
heating economy by reducing the region's dependence on imported, refined
product, came the realization t h a t i t could be coupled successfully w i t h oil
heating. The decks were then cleared f o r action.
112
F o r such a program to be successful, some applied research f o r the actual
coupling of solar energy heat producing equipment w i t h existing a n d / o r newly
installed oil-fired heating units was required before a practical p r o g r a m f o r
selling, i n s t a l l i n g and servicing solar energy units could be p u t i n t o effect.
As N E F I is a small organization w i t h a l i m i t e d budget, i t was necessary
t h a t we raise $30,000 immediately, i n order to p u t i n t o operation seven or eight
units upon whose performance f u t u r e production, sales and development w o u l d
be based. W e are happy to report t h a t our efforts to raise this amount of money
were immediately successful. Robert DeBlois, Executive Vice President of the
DeBlois O i l Company and Chairman of N E F I ' s Finance Committee i n f o r m e d
us t h a t the DeBlois O i l Company w o u l d contribute $10,000 t o w a r d the project.
On the very same day, Northeast Petroleum Corp. of New Hampshire offered
to contribute $6000, and shortly thereafter, M r . Lewis Sheketoff, President of
A u t o m a t i c Comfort of H a r t f o r d , Connecticut i n f o r m e d us t h a t his company
w o u l d contribute another $10,000. So, w i t h i n a very short time, we had $26,000
of our $30,000 projected research monetary requirement committed.
W e believe this points up the f o r w a r d looking t h i n k i n g of the heating oil
d i s t r i b u t o r s of New England, and points the finger of repudiation at Federal
bureaucracies who claim t h a t some businesses, including heating o i l d i s t r i b u t o r s
could or w o u l d not be any help i n the furtherance of solar heating. I t demonstrates, f u r t h e r , t h a t the Energy Research Development A d m i n i s t r a t i o n should
reorient its t h i n k i n g concerning funds being available f o r the implementation
and application of solar heating to homes and commercial buildings being
handled by small businesses, such as the 2400 heating o i l d i s t r i b u t o r s throughout
New England.
W e w i l l soon have three adjunct domestic hot w a t e r solar energy-oil heating
systems installed i n three homes i n Rhode Island. We w i l l study t h e i r operation
and method of installation, and become appraised of such maintenance as is
required. F o l l o w i n g on this, there w i l l be f o u r adjunct solar energy domestic
hot water generators, coupled w i t h o i l heating equipment, installed i n Connecticut. Subsequently, a combination solar generator-oil heating and domestic
hot w a t e r system w i l l be installed i n a one-family home i n the general area
of Hanover, New Hampshire. W e w i l l , i n t h i s way, be testing eight different
types a n d / o r kinds of solar heat generators coupled w i t h o i l at the same time.
Upon completion of these projects, we expect to have sufficient knowledge
to i n s t i t u t e t r a i n i n g courses at N E F I ' s Technical T r a i n i n g Center i n Cambridge,
Massachusetts, which is f u l l y licensed as a p r i v a t e vocational-technical school
by the Commonwealth of Massachusetts' Department of Education. These courses
w i l l be devoted entirely t o the p r a c t i c a l application of solar heat generators
to be used adjunctively w i t h o i l heating equipment. The proposed courses w i l l
be on the " n u t s and bolts" level. I t is our belief t h a t we w i l l be the first small
business group providing state department-of-education-approved solar heat ins t a l l a t i o n and servicing courses. I n addition, we expect to t r a i n the sales forces
of the r e t a i l and wholesale heating o i l d i s t r i b u t o r s i n New E n g l a n d on the
technology, sizing, heat loss calculations, a n d basic i n s t a l l a t i o n and servicing of
solar heating equipment. Thereby, our dealers can i n t e l l i g e n t l y sell the equipment where i t s application w i l l be of benefit t o the heating o i l consumer and
home owner. Our program entails (1) applied research, using actual operation
of the equipment i n existing homes; (2) cooperation w i t h manufacturers i n
developing the most effective types of solar energy adjunct equipment; (3) the
t r a i n i n g of sales forces to promote and sell this equipment to the o i l heating
consumer; and (4) the t r a i n i n g of i n s t a l l a t i o n and service technicians f o r applyi n g this specific type of equipment. N E F I firmly believes i t w i l l demonstrate
t h a t small business is the t r u e key to the mass sale, application, i n s t a l l a t i o n
and servicing of solar heat generators.
I t is t h i s I n s t i t u t e ' s considered opinion t h a t a f t e r the completion of the eight
m o n t h period of applied research, we w i l l i n s t a l l 500 adjunct solar-oil hot water
generators i n the first year, and an average of 2500 f o r the next t w o years.
F r o m t h a t t i m e on our potential w i l l be u n l i m i t e d i n the New E n g l a n d area.
I t is not over optimistic nor "pie i n the skv." t h i n k i n g to project 75,000 of these
installations w i t h i n five years of completion of the applied research projects
i f the Federal and local governments cooperate i n a practical manner.
113
However, i t w i l l be necessary f o r the Federal government to realize t h a t i n
many cases solar heat is not economically attractive to the consumer. Also,
present real estate t a x practices, Federal t a x laws, federal, state and local
b u i l d i n g and appliance codes and regulations a l l strongly, actively and consistently m i l i t a t e against the i n s t a l l a t i o n of solar heating equipment. There has
been some considered t h i n k i n g on the p a r t of the Federal government t h a t w i l l
provide the f o l l o w i n g a n d / o r solutions to the following.
T h i s means t h a t Federal, state and local governments w i l l have to help considerably i n achieving t a x reforms and incentives, and b u i l d i n g and appliance
code reforms, or solar energy goals w i l l not be reached. Among reforms and
changes most needed a r e :
1. On the local level, and possibly w i t h some assist legislatively f r o m the
Federal government, local t a x departments and assessors must realize t h a t i f
they increase the assessed valuation of a residence because a solar heat generator is added to a house already heated by oil, gas or electricity ( t o decrease
the use of energy), such increase w i l l effectively deter and even k i l l the acceptance and use of much needed solar equipment. W h i l e increased assessed valuat i o n may be accorded homes i n s t a l l i n g swimming pools, t h a t concept is not going
to help solar heat, nor is i t going to do a n y t h i n g to decrease the national dependence on imported, refined product, crude oil, liquefied n a t u r a l gas or high
cost residential electric heating. The l a t t e r consumes three and a h a l f times as
much oil to produce a B T U of heat as does b u r n i n g oil directly i n a boiler or
furnace w i t h i n the residence. There has to be some understanding t h a t the install a t i o n of high cost solar energy heating equipment w i l l never really catch on i f
i t is going to result i n increased assessed valuations, and thereby, higher real
estate taxes.
2. On state, municipal, county and local levels, codes and regulations may
actually prevent, i n h i b i t or make costly, beyond return, the i n s t a l l a t i o n of solar
heating equipment.
3. Solar energy equipment at the present time, to provide domestic hot water
i n conjunction w i t h an o i l fired, gas fired or electrically powered water heater,
costs f r o m $600 to $2,000 per unit, w h i l e 100% oil, gas or electric water heaters
sell f o r j u s t a f r a c t i o n of t h a t cost. I t w i l l be several years before competitive
forces i n the marketplace plus advanced technology w i l l be producing solar
energized domestic hot water heaters at a cost remotely competitive w i t h oil,
gas or electric equipment. Therefore, the home owner who w i l l expend money
f o r this higher cost generating equipment must of necessity have a t a x incentive
or t a x credit t h a t w i l l r a t i o n a l l y enable h i m to go ahead w i t h the installation.
Otherwise, solar energy w i l l continue to be a novelty t h a t w i l l be the province
of the rich or affluent, l i k e h i g h cost automobiles a n d / o r l u x u r i o u s swimming
pools. A n y incentive on the p a r t of the home owner to use solar energy must
be repaid by adequate income t a x credits a n d / o r some other reciprocal economic
benefit t h a t w i l l make i t economically justifiable f o r the average home owner
to buy and i n s t a l l solar heat devices.
4. F u r t h e r , the more t h a n 11,000 independent heating o i l and o i l heating equipment d i s t r i b u t o r s at the r e t a i l level throughout the country w i l l have to have
some practical inducement to expend the money for inventorying such equipm e n t ; f o r t r a i n i n g personnel to i n s t a l l and service i t ; as w e l l as to promote
and sell it. T h i s is doubly i m p o r t a n t at the r e t a i l level because every t i m e a heati n g o i l dealer installs a piece of solar heat generating equipment, he is reducing
his r e t a i l o i l gallonage. I t is not our purpose i n w o r k i n g to i n s t a l l solar energy
to take the bread and butter out of the mouths of our heating o i l dealers, nor to
reduce the thickness of the slice of bread t h a t he and his f a m i l y is consuming.
W e believe t h a t some assistance f r o m the Federal government w i l l be necessary
for small businesses such as o i l heat distributors, who have a l l of the mechanisms, organization and s k i l l to make these energy saving devices practical and
effective. Such assistance f r o m the Federal government can come i n the f o r m of
long term low interest loans to small and medium sized r e t a i l dealers and distributors. These w i l l help provide the capital necessary to develop solar energy
as a saleable product. Also, t a x incentives and special depreciation allowances
w i l l be required so t h a t the dealer can successfully d i v e r t a n d / o r augment his
energies to solar heating.
114
The Energy Research and Development A d m i n i s t r a t i o n should make available
funds to groups or small business groups such as t h i s I n s t i t u t e , to encourage a
r a p i d development and expansion of applied solar energy research a t the very
grass roots level t h a t is represented by the heating o i l d i s t r i b u t o r s of the New
E n g l a n d region.
W i t h New England more heavily dependent on imported, refined petroleum
products t h a n any region i n the c o u n t y , i t is the ideal area i n w h i c h to f o r w a r d
the cause of solar energy. W h i l e New Mexico, A r i z o n a and southern C a l i f o r n i a
have a great deal of sunshine, they do not have winters ranging f r o m 5000 to
9000 degree days t h a t you find every year throughout the various sections of
New England. These winters require vast amounts of heat energy t h a t b u r n 130,000,000 barrels of f u e l o i l f o r heating alone.
W e very much appreciate, Senator M c I n t y r e , your request t h a t N E F I participate i n these hearings. W e k n o w t h a t the Senate Select Committee on Small
Business realizes how i m p o r t a n t small business is t o p r o v i d i n g the massive r e t a i l
penetration of the m a r k e t necessary f o r any successful application of solar
energy as a means of reducing our dependence upon imported, f o r e i g n energy.
W e t h a n k you.
115
LENDING INSTITUTION ATTITUDES TOWARD SOLAR HEATING
AND COOLING OF RESIDENCES*
Prepared by
Ronald W. M e l i c h e r
A s s o c i a t e Professor o f Finance
Graduate S c h o o l o f Business A d m i n i s t r a t i o n
U n i v e r s i t y o f Colorado
B o u l d e r , Colorado
80302
December, 1974
*
T h i s i s P a r t I I o f a b r o a d e r s t u d y e n t i t l e d Demand A n a l y s i s :
Solar
H e a t i n g and C o o l i n g o f B u i l d i n g s (Phase _I R e p o r t ) , December 1974,
prepared by:
Jerome E. S c o t t , A s s o c i a t e P r o f e s s o r o f B u s i n e s s
A d m i n i s t r a t i o n , U n i v e r s i t y o f D e l a w a r e ; Ronald W. M e l i c h e r , A s s o c i a t e
P r o f e s s o r o f F i n a n c e , U n i v e r s i t y of C o l o r a d o ; and Donald S c i g l i m p a g l i a ,
Research A s s o c i a t e , U n i v e r s i t y o f C o l o r a d o . P a r t I o f t h e r e p o r t
i s e n t i t l e d " S o l a r Water H e a t i n g i n South F l o r i d a :
1923-1974."
T h i s r e s e a r c h was s u p p o r t e d by t h e N a t i o n a l Science F o u n d a t i o n , Research
A p p l i e d t o N a t i o n a l Needs (RANN), under G r a n t No. G I - 4 2 5 0 8 .
116
INTRODUCTION
S o l a r energy may r e p r e s e n t a s i g n i f i c a n t s o u r c e f o r m e e t i n g
energy needs i n t h e U n i t e d S t a t e s .
future
Energy f r o m the sun has been used t o
p r o v i d e h o t w a t e r s i n c e t h e e a r l y 1920s, and more r e c e n t l y ,
s o l a r h e a t i n g and c o o l i n g systems have been b u i l t .
experimental
The r a t e o f
diffusion
i n the f u t u r e use o f s o l a r energy t o h e a t and c o o l b u i l d i n g s w i l l
h o w e v e r , on a number o f t e c h n o l o g i c a l , e c o n o m i c , s o c i a l ,
and i n s t i t u t i o n a l
depend,
environmental,
factors.
Recent s t u d i e s funded by t h e Ford F o u n d a t i o n * and by t h e N a t i o n a l
2
Science Foundation
f o c u s e d p r i m a r i l y on an e x a m i n a t i o n o f t h e
technological
feasibility
and economic c h a r a c t e r i s t i c s o f s o l a r h e a t i n g and c o o l i n g o f
buildings.
I n s t i t u t i o n a l factors received considerably less
The a b i l i t y
and w i l l i n g n e s s t o f i n a n c e s o l a r e n e r g y i n s t a l l a t i o n s i n
f a m i l y r e s i d e n c e s a p p a r e n t l y w i l l have a s i g n i f i c a n t
g r o w t h o f t h e s o l a r energy i n d u s t r y .
attention.
single
i m p a c t on t h e r a t e
of
T h i s s t u d y examines t h e a t t i t u d e s
of
f i n a n c i e r s t o w a r d t h e s o l a r h e a t i n g and c o o l i n g o f
buildings.
^"Richard Schoen and Jerome W e i n g a r t , I n s t i t u t i o n a l Problems o f t h e
Commercial A p p l i c a t i o n o f New Community Energy System T e c h n o l o g i e s . W i t h
Emphasis on S o l a r C o n v e r s i o n Systems, F o r d F o u n d a t i o n Energy P o l i c y P r o j e c t ,
November, 1973 ( d r a f t ) .
2
G e n e r a l E l e c t r i c C o r p o r a t i o n , S o l a r H e a t i n g and C o o l i n g o f B u i l d i n g s
(Phase 0 ) , N a t i o n a l Science F o u n d a t i o n RA-N-74-021A, May 1974; TRW C o r p o r a t i o n ,
S o l a r H e a t i n g and C o o l i n g o f B u i l d i n g s (Phase 0 ) , N a t i o n a l S c i e n c e F o u n d a t i o n
RA-N-74-022A, May 1974; and Westinghouse E l e c t r i c C o r p o r a t i o n , S o l a r H e a t i n g
and C o o l i n g o f B u i l d i n g s (Phase 0 ) , N a t i o n a l S c i e n c e F o u n d a t i o n RA-N-74-023A,
May 1974.
117
More s p e c i f i c a l l y ,
following
the f i n a n c i a l i n s t i t u t i o n s study encompasses the
objectives:
1.
I d e n t i f y f a c t o r s t h a t may enhance o r impede t h e f i n a n c i n g o f
b u i l d i n g s ( p a r t i c u l a r l y s i n g l e f a m i l y r e s i d e n c e s ) equipped w i t h
s o l a r h e a t i n g and c o o l i n g systems.
2.
Examine and compare the a t t i t u d e s o f s a v i n g s and l o a n o f f i c e r s
w i t h the a t t i t u d e s of o f f i c e r s from other f i n a n c i a l i n s t i t u t i o n s
( i . e . , mortgage b a n k i n g f i r m s , commercial b a n k s , and m u t u a l
s a v i n g s banks) on f i n a n c i n g s o l a r homes.
3.
I d e n t i f y a t t i t u d e s t o w a r d p o s s i b l e s u b s i d y and i n c e n t i v e programs
t h a t m i g h t be used t o s t i m u l a t e t h e d i f f u s i o n o f s o l a r energy
systems.
4.
P r o v i d e s u g g e s t i o n s f o r p u b l i c and p r i v a t e s e c t o r p o l i c i e s
encourage s o l a r home development.
The r e s e a r c h program i n c l u d e d a review o f a v a i l a b l e secondary
to
information,
i n c l u d i n g t h e "Phase 0 " r e p o r t s by General E l e c t r i c , TRW, and Westinghousc
Electric,
and p e r s o n a l i n t e r v i e w s and m a i l q u e s t i o n n a i r e r e s p o n s e s .
Personal
i n t e r v i e w s were conducted w i t h r e p r e s e n t a t i v e s o f the U n i t e d S t a t e s League
o f Savings A s s o c i a t i o n s ,
t h e Mortgage Bankers A s s o c i a t i o n o f A m e r i c a ,
the
N a t i o n a l A s s o c i a t i o n o f Home B u i l d e r s , and t h e F e d e r a l Home Loan Bank Board.
Both t h e U n i t e d S t a t e s League o f Savings A s s o c i a t i o n s and t h e Mortgage Bankers
A s s o c i a t i o n o f America p r o v i d e d v a l u a b l e a s s i s t a n c e i n a d m i n i s t e r i n g m a i l
questionnaire materials
t o s e l e c t e d members o f t h e i r r e s p e c t i v e
organizations.
The r e p o r t i s conqprised o f , i n a d d i t i o n t o t h i s i n t r o d u c t i o n ,
s e c t i o n s plus appendices.
four
The f o l l o w i n g s e c t i o n i d e n t i f i e s b r o a d f a c t o r s
t h a t m i g h t a f f e c t t h e f i n a n c i n g o f s o l a r h e a t e d and c o o l e d b u i l d i n g s .
Next,
t h e a t t i t u d e s o f s a v i n g s and l o a n and o t h e r f i n a n c i a l i n s t i t u t i o n
officers
t o w a r d s o l a r homes i s examined.
attitudes
A s e c t i o n t h e n focuses on l e n d e r
t o w a r d p o s s i b l e s o l a r energy s u b s i d y and i n c e n t i v e p r o g r a m s .
The f i n a l
s e c t i o n contains conclusions of t h i s study plus suggestions f o r
possibly
i n c r e a s i n g t h e r a t e o f d i f f u s i o n o f s o l a r energy systems i n s i n g l e
residences.
family
118
FACTORS THAT MIGHT AFFECT THE DIFFUSION OF SOLAR ENERGY
Background
Information
The e x p e r i e n c e w i t h c o n v e n t i o n a l h e a t i n g and c o o l i n g systems
u s e f u l i n s i g h t i n t o the l i k e l y
provides
f u t u r e use o f s o l a r energy s y s t e m s .
Con-
v e n t i o n a l h e a t i n g systems i n s i n g l e f a m i l y r e s i d e n c e s l o n g have been
f i n a n c e d as p a r t o f the o r i g i n a l mortgage i n newly c o n s t r u c t e d
family residences.
installment
single
Replacement h e a t i n g u n i t s o f t e n a r e f i n a n c e d
loan arrangements.
are financed i n a s i m i l a r
C e n t r a l ^ a i r - c o n d i t i o n i n g systems f o r homes
f a s h i o n depending upon w h e t h e r t h e y
o r i g i n a l equipment o r r e t r o f i t
through
represent
installations.
Although a v a i l a b l e d u r i n g the 1930*s, h i g h costs prevented wide
o f c e n t r a l a i r - c o n d i t i o n i n g systems u n t i l t h e 1960s.
i m p o r t a n t r a m i f i c a t i o n s f o r s o l a r energy.
T h i s e x p e r i e n c e has
Phase " 0 " f i n d i n g s by G e n e r a l
E l e c t r i c , TRW, and Westinghouse E l e c t r i c a l l suggest l a r g e i n i t i a l
r e q u i r e m e n t s f o r s o l a r energy i n s t a l l a t i o n s
diffusion
in single family
outlay
residences.
I n o t h e r w o r d s , t h e r e w i l l be a p e r i o d o f t i m e b e f o r e s o l a r energy systems
are economically j u s t i f i a b l e .
Consequently, w i t h o u t s u b s i d i e s or
one m i g h t e x p e c t s o l a r energy d i f f u s i o n t o p a r a l l e l t h e c e n t r a l
conditioning
incentives,
air-
experience.
A d d i t i o n a l i n s i g h t can be g l e a n e d f r o m t h e companion s t u d y w h i c h
t h e s o l a r w a t e r h e a t i n g e x p e r i e n c e i n F l o r i d a s i n c e t h e e a r l y 1920s.
w a t e r h e a t e r s g e n e r a l l y have been r e t r o f i t i n s t a l l a t i o n s
f o r f i n a n c i n g as FHA T i t l e I i n s t a l l m e n t l o a n s .
and have
The s o l a r w a t e r
i n d u s t r y peaked i n F l o r i d a d u r i n g t h e 1936-1941 p e r i o d .
traces
Solar
qualified
heater
I n 1938 t h e r e
e x i s t e d a c l e a r - c u t economic j u s t i f i c a t i o n f o r i n s t a l l i n g a s o l a r
energy
w a t e r h e a t i n g s y s t e m o v e r a c o n v e n t i o n a l e l e c t r i c w a t e r h e a t i n g system.
However, r i s i n g component and i n s t a l l a t i o n c o s t s and c o n t i n u o u s l y
declining
119
electricity
r a t e s soon l e d t o a c o s t advantage s h i f t i n f a v o r o f
e l e c t r i c water heaters.
First
cost d i f f e r e n t i a l s
c o n t i n u e d t o widen i n
o f e l e c t r i c water heater i n s t a l l a t i o n s , w h i l e the e l e c t r i c i t y
p e r KWH d e c l i n e d u n t i l t h e 1970s.
installations
a r e b e i n g made i n
conventional
cost
favor
savings
Even now, v e r y few new s o l a r w a t e r h e a t e r
Florida.
P r e v i o u s e x p e r i e n c e w i t h c o n v e n t i o n a l h e a t i n g and
air-conditioning
systems and s o l a r w a t e r h e a t i n g systems i n d i c a t e s t h a t f i r s t
c y c l e c o s t economics w i l l s i g n i f i c a n t l y . i n f l u e n c e
energy i n s i n g l e f a m i l y r e s i d e n c e s .
c o s t s and
the d i f f u s i o n o f
life-
solar
Lenders i n v o l v e d i n making loans on
homes e q u i p p e d w i t h s o l a r systems must be c o g n i z a n t o f t h e economic
relation-
ships.
I m p l i c a t i o n s o f Phase " 0 "
Studies
t h e Phase " 0 " f i n d i n g s were f u r t h e r examined f o r p o s s i b l e f a c t o r s ,
a d d i t i o n t o s o l a r system economics, t h a t may enhance o r impede t h e
in
financing
of buildings.
The G e n e r a l E l e c t r i c r e p o r t d i d n o t d i r e c t l y examine
implications.
TRW, i n what i s b e l i e v e d t o have been a c u r s o r y
lender
survey,
stated:
Our d i s c u s s i o n s w i t h l e n d e r s have n o t i d e n t i f i e d any l o n g - r a n g e
major o b s t a c l e s t o overcome, p e n d i n g t h e r e q u i r e m e n t f o r an
e s t a b l i s h e d s o l a r i n d u s t r y which i s producing r e l i a b l e products.
However, the TRW study does acknowledge the p o s s i b i l i t y of n e a r - t e r m f i n a n c i n g
problems such as mortgage a p p r o v a l r e s i s t a n c e , and r e s i s t a n c e t o
life-cycle
4
c o s t concepts o r f i r s t
costs versus o p e r a t i n g cost
trade-offs.
The Westinghouse E l e c t r i c e f f o r t i n v o l v e d t h e m a i l i n g o f 24 q u e s t i o n n a i r e s t o m o r t g a g e , r e a l e s t a t e , and i n s u r a n c e b r o k e r s .
p r o v i d e d the b a s i s f o r the f o l l o w i n g
3
4
conclusions:
*
TRW C o r p o r a t i o n , op. c i t . ,
Ibid.
S i x t e e n responses
E x e c u t i v e Summary, p .
4-6.
120
F i n a n c i e r s b e l i e v e t h a t a s o l a r supplement w o u l d have no d i r e c t
adverse e f f e c t on f i n a n c i n g and c o u l d p o s s i b l y i m p r o v e i t .
I t is
f e l t t h a t s o l a r h e a t i n g and c o o l i n g systems w i l l enhance t h e
s a l a b i l i t y of a b u i l d i n g . . . S a l a b i l i t y of b u i l d i n g s w i t h s o l a r u n i t s
w o u l d be a f f e c t e d by c o s t c o n s i d e r a t i o n s , j u s t as c o n v e n t i o n a l
systems a r e , b u t the n o v e l t y o f t h e concept i s n o t c o n s i d e r e d
l i k e l y t o i m p a i r t h e market and, i n f a c t , w o u l d p r o b a b l y enhance
it.5
Although l i m i t e d ,
these f i n d i n g s p r o v i d e d t h e b a s i s f o r f u r t h e r
g a t i o n i n t o the importance of c e r t a i n f a c t o r s
Institution
to
investi-
financiers.
Interviews
A p e r s o n a l i n t e r v i e w approach was i n i t i a t e d i n o r d e r t o supplement
the
s o l a r economics and l i m i t e d l e n d e r i n f o r m a t i o n p r o v i d e d i n t h e Phase " 0 "
reports.
L o c a l Denver, C o l o r a d o c o n t a c t was i n i t i a t e d w i t h Mr.
William
J o h n s o n , P r e s i d e n t o f C o l o r a d o F e d e r a l Savings and Loan A s s o c i a t i o n and
Mr. Stan H e n d r i x o n , Chairman o f t h e Board o f K a s s l e r and Company Mortgage
Bankers i n an a t t e m p t t o i d e n t i f y o t h e r f a c t o r s t h a t m i g h t impede o r
enhance t h e f i n a n c i n g o f homes equipped w i t h s o l a r energy
A d d i t i o n a l p e r s o n a l i n t e r v i e w s were c o n d u c t e d w i t h
systems.
representatives
f r o m t h r e e n a t i o n a l o r g a n i z a t i o n s and t h e F e d e r a l Home Loan Bank Board.
More s p e c i f i c a l l y ,
the i n s t i t u t i o n s
and i n t e r v i e w e d r e p r e s e n t a t i v e s
were:
1.
U n i t e d S t a t e s League o f Savings A s s o c i a t i o n s ( C h i c a g o , I l l i n o i s )
a. Mr. James A. H o l l e n s t e i n e r
S t a f f Vice President
b . Mr. H a r o l d O l i n
D i r e c t o r o f A r c h i t e c t u r e and C o n s t r u c t i o n Research
2.
Mortgage Bankers A s s o c i a t i o n o f A m e r i c a ( W a s h i n g t o n , D. C . )
a. D r . O l i v e r H. Jones
Executive Vice President
b.
A d d i t i o n a l S t a f f Members
^Westinghouse E l e c t r i c , 0£. c i t . , E x e c u t i v e Summary, p .
50.
121
3.
N a t i o n a l A s s o c i a t i o n of Home B u i l d e r s (Washington, D.
a.
Mr. Ralph Johnson
U i r e c t o r t NAHB Research F o u n d a t i o n
b.
Mr. C a r l Coan, J r .
L e g i s l a t i v e Counsel
4.
F e d e r a l Home Loan Bank Board ( W a s h i n g t o n , D.
a.
D r . H a r r i s Friedman
D i r e c t o r o f Economic Research
b.
Additional Staff
C.)
Members
S e v e r a l o b s e r v a t i o n s were f o r m u l a t e d as a r e s u l t o f
First,
f i n a n c i e r s were n o t l i k e l y
these
S e c o n d , t h e economics o f s o l a r e n e r g y w i l l
the r a t e of d i f f u s i o n
(i.e.,
interviews.
t o be v e r y k n o w l e d g e a b l e a b o u t
h e a t i n g and c o o l i n g s y s t e m s w h i c h c o u l d be i n s t a l l e d i n s i n g l e
residences.
C.)
solar
family
significantly
s o l a r systems must be made e c o n o m i c a l l y
p e t i t i v e w i t h c o n v e n t i o n a l h e a t i n g and c o o l i n g s y s t e m s ) .
w i l l need t o become c o g n i z a n t o f l i f e - c y c l e
t o r e c o g n i z e t r a d e - o f f s between f i r s t
Third,
t o achieve n e a r - t e r m w i d e - s p r e a d d i f f u s i o n o f s o l a r energy
willing
Fourth,
some f o r m o f s u b s i d y o r i n c e n t i v e p r o g r a m p r o b a b l y w i l l b e n e c e s s a r y
order
com-
lenders
c o s t i n g c o n c e p t s and be
c o s t s and o p e r a t i n g c o s t s .
affect
in
systems
i n homes.
The r e s u l t s
of
the personal discussions w i t h representatives
USL ( S a v i n g s A s s o c i a t i o n s ) , MBA, NAHB, and t h e FHLBB p r o v i d e d
insight
into identifying factors
h e a t e d and c o o l e d b u i l d i n g s .
to representatives
mortgage loan p r o c e s s ) .
of
financial institutions
directly
solar
acknowledged
t h e need t o e x t e n d o u r i n v e s t i g a t i o n t o t h e o p e r a t i n g i n s t i t u t i o n
(i.e.,
the
valuable
t h a t may a f f e c t t h e f i n a n c i n g o f
However, the d i s c u s s i o n s a l s o
of
level
involved i n
B o t h t h e U n i t e d S t a t e s League o f S a v i n g s
Associations
and t h e M o r t g a g e B a n k e r s A s s o c i a t i o n o f A m e r i c a p r o v i d e d t h e o p p o r t u n i t y
g a t h e r i n g r e s p o n s e s f r o m some o f t h e i r
members.
the
for
122
FINANCIAL INSTITUTION SURVEY RESULTS
Study Design
F i n a n c i e r s were n o t e x p e c t e d t o be v e r y k n o w l e d g e a b l e about
state-of-the-art
s o l a r energy c o n c e p t s .
current
B u i l d i n g design innovations i n
f a m i l y r e s i d e n c e s t r a d i t i o n a l l y have been c h a r a c t e r i z e d by s l o w
rates.
And, o n l y r e c e n t l y have major a t t e m p t s been made t o
s t u d y t h e t e c h n o l o g i c a l and economic f e a s i b i l i t y
A minimum u n d e r s t a n d i n g on t h e p a r t o f f i n a n c i e r s
single
adoption
comprehensively
o f s o l a r energy s y s t e m s . ^
concerning
applications
o f s o l a r energy t o h e a t and c o o l b u i l d i n g s seemed n e c e s s a r y i n o r d e r
to
examine l e n d e r a t t i t u d e s .
solar
Consequently, a b r i e f w r i t e - u p d e s c r i b i n g
e n e r g y systems and economics was p r e p a r e d and i s p r e s e n t e d as A p p e n d i x 1.
A f i n a n c i a l i n s t i t u t i o n s q u e s t i o n n a i r e was d e s i g n e d a f t e r
reviewing
t h e r e s e a r c h and p e r s o n a l i n t e r v i e w r e s u l t s d i s c u s s e d i n t h e p r i o r
The comprehensive s e t o f q u e s t i o n s e l i c i t s
a t t i t u d e s c o n c e r n i n g t h e degree
o f importance of s p e c i f i c f a c t o r s t h a t are l i k e l y
mortgage l o a n d e c i s i o n s on s o l a r homes.
section.
t o be i n v o l v e d i n m a k i n g
A t t i t u d e s c o n c e r n i n g the degree
o f importance associated w i t h various possible i n c e n t i v e or subsidy
p o s a l s a l s o were s t r e s s e d .
The f i n a l q u e s t i o n n a i r e i s p r e s e n t e d
pro-
in
Appendix 2 .
A m a i l q u e s t i o n n a i r e package—comprised o f a c o v e r l e t t e r ,
w r i t e - u p on s o l a r energy (Appendix 1 ) , a s i x - p a g e q u e s t i o n n a i r e
2 ) , and a p o s t a g e p a i d r e t u r n envelope—was d e v e l o p e d .
a brief
(Appendix
The U n i t e d S t a t e s
League o f Savings A s s o c i a t i o n s agreed t o s u p p o r t our e f f o r t s
through the
m a i l i n g o f t h e q u e s t i o n n a i r e package t o t h e 110 members o f t h e
Investments
6
See Schoen and W e i n g a r t , 0£. c i t . , and t h e Phase " 0 " s t u d i e s by
G e n e r a l E l e c t r i c , TRW, and Westinghouse E l e c t r i c .
123
and Mortgage L e n d i n g Committee and t o t h e 65 members o f t h e Committee on
Land Use and E n v i r o n m e n t . ^
Q u e s t i o n n a i r e m a t e r i a l s were m a i l e d t o t h e 175
members o f t h e two committees d u r i n g l a t e August 1974.
I n a d d i t i o n t o e x a m i n i n g t h e a t t i t u d e s o f s a v i n g s and l o a n
association
members, we were a l s o i n t e r e s t e d i n t h e a t t i t u d e s o f f i n a n c i e r s
institutions
i n v o l v e d i n t h e mortgage l e n d i n g p r o c e s s .
from other
Members o f
Mortgage Bankers A s s o c i a t i o n o f America i n c l u d e s a v i n g s and l o a n
mortgage b a n k i n g f i r m s ,
the
institutions,
commercial banks, and m u t u a l s a v i n g s b a n k s .
The
Mortgage Bankers A s s o c i a t i o n p r o v i d e d 200 m a i l i n g s — 8 0 t o mortgage b a n k e r s ,
60 t o commercial b a n k s , and 60 t o m u t u a l s a v i n g s b a n k s — d u r i n g l a t e
September
1974.8
Responses t o
Questionnaire
One hundred t h i r t y - o n e q u e s t i o n n a i r e s were r e t u r n e d .
Seventy-nine
responses were r e c e i v e d f r o m s a v i n g s and l o a n a s s o c i a t i o n o f f i c e r s .
on 175 m a i l i n g s ,
responses
t h i s r e p r e s e n t s a 45 p e r c e n t response r a t e .
Based
Fifty-two
(a 26 p e r c e n t r a t e ) were r e c e i v e d f r o m t h e MBA menfoers—19 from
mortgage b a n k e r s , 18 f r o m commercial banks, and 15 f r o m m u t u a l s a v i n g s
banks.
I n a few I n s t a n c e s , l e t t e r s were r e c e i v e d w h i c h i n d i c a t e d
q u e s t i o n n a i r e s were n o t completed because t h e r e c i p i e n t s f e l t
they
that
lacked
7
M r . James H o l l e n s t e i n e r , S t a f f V i c e P r e s i d e n t , U n i t e d S t a t e s League
o f Savings A s s o c i a t i o n s , I n d i c a t e d t h a t responses f r o m t h e s e committee
members w o u l d be p a r t i c u l a r l y v a l u a b l e because t h e members h e l d i m p o r t a n t
d e c i s i o n making p o s i t i o n s i n t h e i r r e s p e c t i v e o r g a n i z a t i o n s ,
g
Mr. John M. Wetmore, D i r e c t o r o f Economics and R e s e a r c h , Mortgage
Bankers A s s o c i a t i o n o f A m e r i c a , I n d i c a t e d t h a t a s i m p l e random s a m p l i n g
p r o c e d u r e was used t o s e l e c t t h e 60 commercial banks and 60 m u t u a l s a v i n g s
banks.
The 80 mortgage b a n k i n g f i r m s were s e l e c t e d on t h e b a s i s o f a
s t r a t i f i e d random sample u s i n g c l a s s i f i c a t i o n s based on t h e volume o f loans
each f i r m o r i g i n a t e d .
124
minimal k n o w l e d g e a b o u t s o l a r e n e r g y .
The h i g h e r r e s p o n s e r a t e by
and l o a n a s s o c i a t i o n members seems due t o t h e f a c t
to specific
from
chairmen.
T a b u l a t e d responses
Careful review of
to the questionnaire
the t a b u l a t e d r e s u l t s
and i n s t i t u t i o n a l
they are presented p r i o r
Respondent
t h a t m a i l i n g s w e r e made
c o m m i t t e e members and w e r e a c c o m p a n i e d by c o v e r l e t t e r s
the committee
profiles
savings
is
are presented i n Appendix
recommended.
Since
c h a r a c t e r i s t i c s may be r e l e v a n t
t o our summarizing t h e i m p o r t a n t
3.
respondent
to t h i s
study,
findings.
Characteristics
Table 1 provides a p r o f i l e
istics—job
title
or p o s i t i o n ,
of
the respondents i n terms o f
experience i n
three
the l e n d i n g i n d u s t r y ,
o f k n o w l e d g e a b o u t t h e s o l a r h e a t i n g and c o o l i n g o f b u i l d i n g s .
are from f i n a n c i e r s
institutions
at important d e c i s i o n making l e v e l s
in their
and d e g r e e
Responses
respective
and w h o , on t h e a v e r a g e , have 20 y e a r s o f e x p e r i e n c e i n
lending industry.
vice president
S i x t y - f o u r percent of the respondents are a t the
or higher l e v e l .
Approximately one-half
Operating o f f i c e r respondents, p r i m a r i l y
Only 9 percent of
and
firms.
com-
presidents,
appraisers.
t h e s a v i n g s and l o a n r e s p o n d e n t s h a d l e s s t h a n
y e a r s o f e x p e r i e n c e compared w i t h 25 p e r c e n t o f
the other
dents ,
i n t e r m s o f how t h e y
B o t h groups" w e r e , h o w e v e r , v e r y s i m i l a r
t h e i r knowledge about s o l a r energy.
p r i o r knowledge.
senior
from mortgage b a n k i n g f i r m s ,
m e r c i a l banks and m u t u a l s a v i n g s b a n k s , i n c l u d e d a s s i s t a n t v i c e
and s t a f f
the
of the savings
l o a n a s s o c i a t i o n respondents were p r e s i d e n t s o f t h e i r r e s p e c t i v e
loan o f f i c e r s
character-
That i s ,
Nineteen percent of
financier
11
responperceived
a l l respondents
these respondents read only the b r i e f
write-up
d e s c r i b i n g s o l a r e n e r g y s y s t e m s and e c o n o m i c s - t h a t was a t t a c h e d t o t h e
lacked
financial
125
TABLE 1.
RESPONDENT CHARACTERISTICS
Characteristic
Percentage o f Responses
Savings
and Loan
Other
Total
Associations
Financiers
Responses
Job T i t l e o r P o s i t i o n
President
Executive or Senior Vice President
Vice-President
Operating O f f i c e r
No Response
Total
49. 4%
31. 6
8. 9
10. 1
0. 0
100.,0%
21. 2%
17. 3
25. 0
34. 6
1. 9
100. 0%
38. 2%
26. 0
15. 3
19. 8
8
100. 0%
Experience i n Lending I n d u s t r y
1 5 years
6 - 1 0 years
11 - 20 y e a r s
21 - 30 y e a r s
31 and over
No Response
Total
Average Years E x p e r i e n c e
6.,3%
2.,5
44..3
35,,5
10.. 1
1.,3
100..0%
21..3
11.,5%
13, 5
36..5
30,,8
5.,8
1,,9
100,.0%
17,,7
8. 4%
6.,9
41.,2
33. 6
8.,4
1, 5
100.,0Z
19.,9
Knowledge About S o l a r
H e a t i n g and C o o l i n g o f B u i l d i n g s
Read Numerous M a t e r i a l s
Read Some M a t e r i a l s
Read Only Q u e s t i o n n a i r e M a t e r i a l s
Total
3,.8%
77,.2
19 .0
100 .0%
1,.9%
78,.9
19 .2
100 .0%
3..1%
77,.9
19 . 1
100 .OZ
62-322 O - 7 5 - 9
126
i n s t i t u t i o n s questionnaire.
individuals
And, as was p r e v i o u s l y m e n t i o n e d , a few
responded w i t h l e t t e r s i n d i c a t i n g a f a i l u r e t o complete
q u e s t i o n n a i r e due t o i n a d e q u a t e knowledge about s o l a r e n e r g y .
respondents
felt
and c o o l i n g o f
the
Very few
t h a t t h e y were v e r y knowledgeable about t h e s o l a r
heating
buildings.
S e v e n t y - o n e p e r c e n t o f t h e respondents b e l i e v e d t h a t s o l a r
energy
w o u l d p r o v i d e a f e a s i b l e a l t e r n a t i v e energy s o u r c e f o r t h e h e a t i n g and
c o o l i n g o f s i n g l e f a m i l y r e s i d e n c e s withjLn t h e n e x t 10 y e a r s .
o n l y 19 p e r c e n t o f a l l respondents f e l t
nically
and e c o n o m i c a l l y
However,
t h a t s o l a r energy w o u l d be a t e c h -
feasible alternative within f i v e years.
and l o a n r e s p o n d e n t s were c o n s i d e r a b l y more o p t i m i s t i c i n t h e i r
Savings
opinions—
24 p e r c e n t e n v i s i o n e d s o l a r energy f e a s i b i l i t y w i t h i n f i v e y e a r s and 80
p e r c e n t w i t h i n 10 y e a r s .
Thus, even though b o t h groups o f f i n a n c i e r s
s i m i l a r p e r c e i v e d r e a d i n g knowledge about s o l a r e n e r g y , t h e s a v i n g s
held
and
l o a n r e s p o n d e n t s were more o p t i m i s t i c i n t h e i r views when s o l a r energy
w o u l d r e p r e s e n t a f e a s i b l e a l t e r n a t i v e f o r t h e h e a t i n g and c o o l i n g o f
single family
residences.
I n s t i t u t i o n Location and S i z e C h a r a c t e r i s t i c s
Two i n s t i t u t i o n a l c h a r a c t e r i s t i c s — g e o g r a p h i c l o c a t i o n and asset
were examined.
regions.
The U n i t e d S t a t e s can be d i v i d e d i n t o s e v e r a l
size-
climatological
A l l t h r e e Phase " 0 " r e p o r t s i n d i c a t e t h a t s o l a r energy s y s t e m
c o s t s w i l l d i f f e r s u b s t a n t i a l l y depending upon t h e h e a t i n g and c o o l i n g
9
requirements i n a given area.
As a consequence, t h e d i f f u s i o n o f
solar
o
Westinghouse E l e c t r i c , op c i t . , Volume 1 , Chapter 5 , p r o v i d e s a
d e t a i l e d e s t i m a t e o f i n v e s t m e n t , o p e r a t i n g and m a i n t e n a n c e , aad l i f e c y c l e
c o s t d i f f e r e n c e s by r e g i o n .
127
energy i n s t a l l a t i o n s may n o t be c o n s i s t e n t t h r o u g h o u t t h e U n i t e d S t a t e s .
Possible differences i n financier attitudes
e x i s t by g e o g r a p h i c
toward s o l a r energy a l s o may
area.
F i g u r e 1 , p r e p a r e d by TRW, d i v i d e s t h e c o n t i n e n t a l U n i t e d S t a t e s
n i n e c l i m a t i c r e g i o n s f o r -the h e a t i n g season ( G e n e r a l E l e c t r i c
12 c l i m a t i c r e g i o n s ) .
identifies
I n i t i a l c o n s i d e r a t i o n was g i v e n t o p o s s i b l e
o f f i n a n c i e r a t t i t u d e s on t h e b a s i s o f these r e g i o n s .
h e a t i n g season.
examination
However, such an
approach was j u d g e d u n a c c e p t a b l e when i t was shown t h a t r e g i o n a l
classifications
into
climatic
f o r t h e c o o l i n g season d i f f e r e d m a r k e d l y f r o m t h o s e f o r
the
As an a l t e r n a t i v e , we chose t o d i v i d e t h e U n i t e d S t a t e s
i n t o f o u r r e g i o n s — N o r t h e a s t , S o u t h , Midwest o r N o r t h C e n t r a l , and West
( i n c l u d i n g the S o u t h w e s t ) . ^
Responses c a t e g o r i z e d by g e o g r a p h i c
area
and a s s e t s i z e o f i n s t i t u t i o n a r e p r e s e n t e d i n T a b l e 2.
Savings and l o a n a s s o c i a t i o n and o t h e r f i n a n c i e r responses were r e a s o n a b l y w e l l d i s t r i b u t e d across t h e f o u r g e o g r a p h i c r e g i o n s .
This enables
e x a m i n a t i o n o f f i n a n c i e r a t t i t u d e s f o r p o s s i b l e d i f f e r e n c e s by
R e s u l t s w i l l be p r e s e n t e d l a t e r .
the
region.
I n terms o f a s s e t s i z e , 35 p e r c e n t o f
t h e s a v i n g s and l o a n a s s o c i a t i o n responses were f r o m a s s o c i a t i o n members w i t h
l e s s t h a n $51 m i l l i o n i n a s s e t s .
On t h e o t h e r hand, a p p r o x i m a t e l y 27 p e r c e n t
o f t h e S&L responses came f r o m f i r m s w i t h a s s e t s i n excess o f $200 m i l l i o n .
The r e s u l t was a w e l l b a l a n c e d a s s a t s i z e d i s t r i b u t i o n .
Responses f r o m
t h e o t h e r f i n a n c i e r s g r o u p , and by s u b - s e t s w i t h i n t h e g r o u p , a l s o w«re
r e a s o n a b l y d i s t r i b u t e d by a s s e t
size.
T h i s i s c o n s i s t e n t w i t h t h e U. S. Bureau o f t h e Census r e g i o n a l
g r o u p i n g s w i t h t h e e x c e p t i o n o f t h e s t a t e s o f Oklahoma and Texas w h i c h we
p l a c e d i n t h e West-Southwest r e g i o n i n s t e a d o f t h e South r e g i o n .
The
g r o u p i n g o f s t a t e s by r e g i o n i s p r e s e n t e d i n Appendix 4 .
to
00
REGtON
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Figure l
Source:
PHOENIX
MIAMI
LOS ANGELES
ALBUQUERQUE
LAS VEGAS
GRAND J U N C T I O N
DALLAS-FORT WORTH
NASHVILLE
WASHINGTON, D. C .
SALT LAKE CITY
SEATTLE-TACOMA
CHICAGO
BOSTON
NEW YORK
Regional Climatic Classification for the Heating Season
(November-Apri1)
TRW, S o l a r H e a t i n g and C o o l i n g o f B u i l d i n g s
(Phase 0 ) , E x e c u t i v e Suranary, May 1 9 7 4 , page 2 - 2 .
1
1
1
2
2
3
4
5
5
6
8
9
9
9
129
TABLE 2 .
Characteristic
Geographic L o c a t i o n
Northeast
South
Midwest ( N o r t h C e n t r a l )
West ( i n c l u d i n g S o u t h w e s t )
No Response
Total
Asset Size of I n s t i t u t i o n
$ 1 - $ 50 m i l l i o n
$ 51 - $200 m i l l i o n
$201 m i l l i o n and o v e r
No Response
Total
INSTITUTIONAL CHARACTERISTICS
P e r c e n t a g e o f Responses
Savings
and Loan
Other
Total
Associations
Financiers
Responses
20.2%
3A.6%
32.9
32.9
12.7
1.3
21.2
19.2
21.2
3.8
26,0%
28.2
27.5
16.0
2.3
. 100.0%
100.0%
100.0%
35.4%
38.0
26.6
0.0
23.1%
28.8
34.6
13.5
30.5%
34.429.8
5.3
100.0%
100.0%
100.0%
130
Factors I m p o r t a n t to the F i n a n c i n g o f S o l a r Homes
S o l a r h e a t i n g and c o o l i n g systems may be i n t r o d u c e d i n new c o n s t r u c t i o n
o f v a r i o u s types o f s t r u c t u r e s .
Respondents were asked t o rank s e v e r a l
s t r u c t u r e s — s m a l l o f f i c e or p r o f e s s i o n a l b u i l d i n g , , s i n g l e family
residence
( $ 5 0 , 0 0 0 - $ 6 0 , 0 0 0 ) , condominium apartment, s m a l l apartment b u i l d i n g ,
s m a l l i n d u s t r i a l b u i l d i n g — o n t h e b a s i s o f the l e n d i n g i n d u s t r y ' s
ness t o make loans on the s o l a r energy systems.
Single family
were ranked f i r s t by 60 p e r c e n t o f the .respondents.
and
willing-
residences
Next i n p r e f e r e n c e
were s m a l l o f f i c e or p r o f e s s i o n a l b u i l d i n g s and s m a l l i n d u s t r i a l
buildings.
Low p r e f e r e n c e was g i v e n t o condominium apartments and s m a l l apartment
buildings.
F i n a n c i e r s overwhelmingly p r e f e r r e d t o have s o l a r systems on new homes
f i n a n c e d as p a r t o f the. t o t a l mortgage l o a n ( c o n v e n t i o n a l , VA o r FHA) on
t h e home.
L i t t l e p r e f e r e n c e was g i v e n t o o t h e r p o t e n t i a l a l t e r n a t i v e s
such
as under s e p a r a t e second mortgage l o a n s , FHA mortgage loans on t h e s o l a r
e q u i p m e n t , o r i n s t a l l m e n t loans ( s i m i l a r t o the f i n a n c i n g o f l a r g e
appliances).
Table 3 i n d i c a t e s the degree o f respondent concern a s s o c i a t e d w i t h a
number o f s o l a r energy system c h a r a c t e r i s t i c s o r f a c t o r s .
recorded i n the f o l l o w i n g fashion:
1 for l i t t l e
Responses were
concern; 2 f o r some c o n c e r n ;
3 f o r much c o n c e r n ; and A f o r g r e a t concern (see Appendices 2 and 3 f o r
further elaboration).
T h i s would r e s u l t i n a m i d - p o i n t v a l u e o f 2 . 5 ,
average values below 2 . 0 and above 3 . 0 b e i n g o f p a r t i c u l a r I n t e r e s t .
pondents f e l t
with
Res-
t h a t a l l o f the f a c t o r s l i s t e d i n Table 3 were i m p o r t a n t .
They w e r e , however, p a r t i c u l a r l y concerned about t h e r e l i a b i l i t y
of
solar
systems and the e f f e c t on s a l a b i l i t y o f s i n g l e f a m i l y r e s i d e n c e s w i t h s o l a r
h e a t i n g and c o o l i n g systems.
Respondents a l s o expressed much c o n c e r n , on
131
TABLE 3.
DEGREE OF CONCERN FOR SOLAR SYSTEM FACTORS
Average o f Responses*
Savings
Total
and Loan
Other
Responses A s s o c i a t i o n s
Financiers
Factor
Expected L i f e o f S o l a r
Equipment
F u e l Cost Savings
Maintenance Expense
W a r r a n t y Coverage on
S o l a r Equipment
R e l i a b i l i t y o f S o l a r System
Damage Due t o Water Leaks
E f f e c t on S a l a b l l i t y o f
Home
Insurability
o f Home
TValues
3.02
2.88
3.07
2,,94
2. 89
3. 05
3. 16
2..88
3.,10
-1.52
.03
-.35
2.77
3.63
2.64
2.,77
3.,64
2.,51
2..76
3.,61
2,,84
.05
.31
-1.82
3.33
3..17
2.,65
3,.59
3,,33
-2.76**
-3.43**
2.92
•Responses c o u l d range f r o m 1 ( l i t t l e concern) t o 4 ( g r e a t c o n c e r n ) .
The T - v a l u e t e s t s f o r p o s s i b l e s i g n i f i c a n t d i f f e r e n c e s between t h e
s a v i n g s and l o a n a s s o c i a t i o n and o t h e r f i n a n c i e r r e s p o n s e s .
•^Statistically
significant
at the .01 l e v e l .
132
the a v e r a g e , about t h e e x p e c t e d l i f e o f s o l a r equipment and maintenance
expenses a s s o c i a t e d w i t h s o l a r
systems.
Responses between t h e s a v i n g s and l o a n a s s o c i a t i o n and o t h e r
groups were examined by c o n d u c t i n g t w o - t a i l e d t - t e s t s o f t h e
between mean v a l u e s .
insurability
financiers
financier
difference
Two f a c t o r s — e f f e c t o f s o l a r s y s t e m on s a l a b i l i t y
o f homes—were o f s i g n i f i c a n t l y h i g h e r c o n c e r n t o t h e o t h e r
group.
to note that i t
We d o n ' t a t t a c h much i m p o r t a n c e t o t h i s
i s c o n s i s t e n t w i t h t h e .other f i n a n c i e r s 1
s o l a r system f e a s i b i l i t y
finding
less
following scenario.
except
optimistic
expectations.**
F u r t h e r i n s i g h t i n t o f i n a n c i e r a t t i t u d e s was g e n e r a t e d t h r o u g h
the
Respondents were i n f o r m e d t h a t s o l a r energy systems
i n s i n g l e f a m i l y residences would r e q u i r e i n i t i a l
costs or
expenditures
above t h e c o s t s f o r c o n v e n t i o n a l h e a t i n g and c o o l i n g s y s t e m s .
Respondents
t h e n were asked t o i n d i c a t e t h e i m p o r t a n c e — l i t t l e , some, much, o r
of c e r t a i n factors I f
s o l a r home.
and
great—
t h e y were c o n s i d e r i n g a mortgage l o a n r e q u e s t on a
The r e s u l t s , computed i n t h e same f a s h i o n as t h e d a t a
in
T a b l e 3 , f o r each f a c t o r under c o n s i d e r a t i o n are p r e s e n t e d i n T a b l e 4 .
For
c o n t r o l p u r p o s e s , some f a c t o r s were s i m i l a r t o some o f t h o s e p r e s e n t e d
T a b l e 3.
in
Respondents a g a i n were h i g h l y concerned about e v i d e n c e on t h e
e x p e c t e d l i f e o f s o l a r systems and about d a t a on t h e e x p e c t e d p e r f o r m a n c e
(reliability)
of s o l a r
systems.
L i f e - c y c l e and i n i t i a l s o l a r s y s t e m c o s t s a l s o were c o n s i d e r e d t o be
o f much i m p o r t a n c e t o t h e r e s p o n d e n t s .
The two groups w e r e g e n e r a l l y
con-
s i s t e n t i n how t h e y r a t e d t h e i m p o r t a n c e o f f a c t o r s w i t h t h e e x c e p t i o n o f
^ A t t i t u d e s t o w a r d s a l a b i l i t y (and l o a n a b i l i t y ) o f s o l a r homes r e c e i v e
f u r t h e r a t t e n t i o n i n t h e form o f a c o s t - r e l a t e d s c e n a r i o l a t e r under t h e
s o l a r system costs t o p i c .
133
TABLE 4 .
IMPORTANCE OF FACTORS I N MORTGAGE LOAN
REQUESTS ON SOLAR HOMES
Average o f R e s p o n s e s *
Savings
Total
and Loan
Other
Responses A s s o c i a t i o n s
Financiers
Factor
A p p l i c a n t ' s A n n u a l Income
E v i d e n c e on E x p e c t e d L i f e
o f S o l a r System
Added I n i t i a l C o s t o f
S o l a r System
L i f e - C y c l e Costs f o r S o l a r
System
D a t a on E x p e c t e d P e r f o r mance o f S o l a r S y s t e m
D a t a on P o s s i b l e Damage Due
t o System Leakages
Educational Information
from National Organizations
S o l a r Energy E d u c a t i o n o f
Appraisers
Added S o l a r - R e l a t e d P I T I
Requirements
TValues
2.82
2. 73
2.96
-1.41
3.26
3. 22
3.33
-.90
2.95
2. 86
3.08
-1.44
3.04
2.,98
3.14
-1.17
3.20
3..15
3.28
-.92
2.70
2..56
2.92
-2.61**
2.47
2,.45
2.51
-.38
2.76
2,.74
2.78
-.26
2.63
2,.47
2.93
-2.87**
*Responses c o u l d r a n g e f r o m 1 ( l i t t l e I m p o r t a n c e ) t o 4 ( g r e a t i m p o r t a n c e ) .
The T - v a l u e t e s t s f o r p o s s i b l e s i g n i f i c a n t d i f f e r e n c e s b e t w e e n t h e
s a v i n g s and l o a n a s s o c i a t i o n and o t h e r f i n a n c i e r r e s p o n s e s .
**Statistically
significant
at the .01
level.
134
data on possible leakage damage and added s o l a r - r e l a t e d P I T I requirements
which were s i g n i f i c a n t l y more important to the other financiers'
group.
These differences are consistent with the s a l a b i l i t j and l o a n a b i l i t y concern expressed above, as w e l l as, with the economic and technological
feasibility
expectations.
Solar Energy System Costs
Solar energy systems require larger i n i t i a l expenditures r e l a t i v e to
conventional heating and air-conditioning systems.
Consequently, economic
j u s t i f i c a t i o n for a solar system rests on achieving lower operating costs
( f u e l cost savings adjusted for maintenance cost d i f f e r e n c e s ) .
represents a l i f e - c y c l e cost analysis.
This
That i s , larger i n i t i a l outlays are
o f f s e t by future savings.
I n current p r a c t i c e , 37 percent of the respondents indicated that
l i f e - c y c l e costs ( I . e . , heating and cooling costs) receive important cons i d e r a t i o n i n deciding whether to grant mortgage loans on single family,
residences.
This i s encouraging.
However, willingness by a l l
financiers
to consider l i f e - c y c l e costs i s necessary i f solar energy systems arc to bo
competitive i n the future with conventional heating and cooling systems.
One way of evaluating l i f e - c y c l e costs I s to determine the number of
years I t w i l l take before savings from operation of the solar system w i l l
equal the I n i t i a l cost of the system.
Respondents were asked how f a s t
would the payback ( I . e . , the time required to match operating savings w i t h
i n i t i a l costs) have to be i n order to economically j u s t i f y a solar energy
i n s t a l l a t i o n i n a s i n g l e family residence.
The responses averaged 8.3
years—8.7 years for the savings and loan association responses and 7.7
years for the other financier responses.
This is somewhat discouraging
135
in that
t h e Phase " 0 " s t u d i e s by General E l e c t r i c ,
TRW, and Westinghouse
E l e c t r i c suggest t h a t such a payback p e r i o d i s not c u r r e n t l y
Financier attitudes
costs
toward a c c e p t a b l e l e v e l s of i n i t i a l
a l s o were examined by e x p r e s s i n g t h e added s o l a r
c e n t a g e o f t h e p r i c e o f a home.
$40,000,
financiers
felt
feasible.
solar
c o s t s as a p e r -
For homes c o s t i n g b e t w e e n $ 3 0 , 0 0 0 and
t h a t 4 p e r c e n t t o 6 p e r c e n t w a s , on t h e
an a c c e p t a b l e p e r c e n t a g e c o s t i n c r e a s e i n o r d e r t o make s o l a r
systems a t t r a c t i v e
initial
t o owners o f s i n g l e
9 o l a r system costs
system
family
residences.
i s n o t , however, c u r r e n t l y
average,
energy
This l e v e l
attainable.
d i d become more l e n i e n t as t h e p r i c e o f homes i n c r e a s e d .
of
Financiers
For e x a m p l e ,
f i n a n c i e r s w e r e w i l l i n g t o a c c e p t , on t h e a v e r a g e , added s o l a r c o s t s o f 7
p e r c e n t t o 9 p e r c e n t f o r homes c o s t i n g $ 7 0 , 0 0 0 and a b o v e .
Initial
emphasis
on i n t r o d u c i n g s o l a r systems i n more e x p e n s i v e homes w o u l d , h o w e v e r ,
bably r e s u l t i n a d i f f u s i o n experience s i m i l a r t o t h a t f o r c e n t r a l
conditioning
air-
systems.
A c o s t - r e l a t e d s c e n a r i o a l s o was d e v e l o p e d i n o r d e r t o f u r t h e r
attitudes
pro-
toward the s a l a b i l i t y
f o l l o w i n g q u e s t i o n was a s k e d .
and l o a n a b i l i t y
o f s o l a r homes.
examine
The
A l l t h i n g s c o n s i d e r e d , how do y o u b e l i e v e
t h e i n c o r p o r a t i o n o f s o l a r h e a t i n g and c o o l i n g i n a $ 5 0 , 0 0 0 t o $ 6 0 , 0 0 0
f a m i l y residence would a f f e c t i t s
i n s t a l l a t i o n c o s t s $5,500?
Forty-one percent
33 p e r c e n t f e l t
loanability,
felt
salability
and l o a n a b i l i t y
F i n a n c i e r s were d i v i d e d i n t h e i r
if
the
t h a t s a l a b i l i t y w o u l d be somewhat enhanced, whereas
t h a t s a l a b i l i t y w o u l d be somewhat r e d u c e d .
t h e r e s p o n s e s w e r e 40 p e r c e n t and 23 p e r c e n t ,
distinct
solar
responses.
I n terms
d i f f e r e n c e s of opinion
exist.
of
respectively.
T h u s , a l t h o u g h t h e r e s p o n s e s a v e r a g e o u t t o no a f f e c t o n s a l a b i l i t y
loanability,
single
and
136
Geographic L o c a t i o n R e s u l t s
As n o t e d e a r l i e r ,
responses were grouped on t h e b a s i s o f f o u r
N o r t h e a s t , S o u t h , M i d w e s t , and West.
regions—
The p o t e n t i a l f o r s o l a r energy
appli-
c a t i o n s d i f f e r s m a r k e d l y by g e o g r a p h i c a l a r e a a c c o r d i n g t o t h e G e n e r a l
E l e c t r i c , TRW, and Westinghouse E l e c t r i c Phase " 0 " s t u d i e s .
Responses
a c r o s s t h e f o u r r e g i o n s were examined i n a f a s h i o n s i m i l a r t o t h a t
t o t e s t f o r d i f f e r e n c e s i n responses between t h e s a v i n g s and l o a n
and o t h e r f i n a n c i e r g r o u p s .
However, because t h e r e were f o u r
employed
association
groups,
d i f f e r e n c e s a c r o s s mean v a l u e s were examined t h r o u g h t h e a p p l i c a t i o n
analysis of variance tests instead of
t-tests.
Average responses were f o u n d t o be g e n e r a l l y c o n s i s t e n t a c r o s s
four regions.
of
the
F i n a n c i e r responses c o n c e r n i n g s o l a r energy k n o w l e d g e ,
s y s t e m f e a s i b i l i t y e x p e c t a t i o n s , and a c c e p t a b l e l e v e l s o f i n i t i a l
s y s t e m c o s t s were s i m i l a r .
solar
Responses p e r t a i n i n g t o t h e f a c t o r s l i s t e d
T a b l e s 3 and 4 o f t h i s s t u d y were n o t s i g n i f i c a n t l y
(see Appendix 5 ) .
solar
d i f f e r e n t by
region
A t t i t u d e s t o w a r d p o s s i b l e s u b s i d i e s and i n c e n t i v e s
d i d n o t d i f f e r across the r e g i o n s .
terms o f payback a t t i t u d e s .
also
Notable d i f f e r e n c e s only e x i s t e d
Respondents f r o m t h e Midwest f e l t
a v e r a g e , payback p e r i o d s o f 1 0 - 1 1 y e a r s were j u s t i f i a b l e .
in
in
that,
Averages
on
for
each o f t h e o t h e r t h r e e r e g i o n s were 7 - 8 y e a r s .
ATTITUDES TOWARD POSSIBLE SUBSIDIES AND INCENTIVES
S o l a r h e a t i n g and c o o l i n g systems c u r r e n t l y a r e n o t e c o n o m i c a l l y
p e t i t i v e w i t h c o n v e n t i o n a l h e a t i n g and a i r - c o n d i t i o n i n g systems.
com-
Each o f
t h e Phase " 0 " s t u d i e s r e c o g n i z e d a need f o r i n c e n t i v e s o r s u b s i d i e s
in
o r d e r t o a c h i e v e r a p i d n e a r - t e r m d i f f u s i o n o f s o l a r e n e r g y systems i n *
8 i n g l e family residences.
S e v e r a l p o s s i b l e i n c e n t i v e and s u b s i d y
programs
137
were
formulated.
number o f
In b r i e f ,
levels—manufacturers
financing institutions,
financial institutions
what
subsidies or incentives
responses.
and consumers o r p u r c h a s e r s .
questionnaire,
preference, while
At
t h e end o f
the
f i n a n c i e r s were asked t o i n d i c a t e
(i.e.,
to costs incurred.
Thirty-nine
a
o f s o l a r e n e r g y s y s t e m s , home b u i l d e r s ,
levels would the best b e n e f i t s
be a c h i e v e d r e l a t i v e
can be d I r e e l e d n l
a greater
rate of
diffusion)
F i n a n c i e r s were i n c o n c l u s i v e i n
percent selected manufacturers
a n o t h e r 37 p e r c e n t r a n k e d p u r c h a s e r s
were r a n k e d s e c o n d i n a l a r g e number o f r e s p o n s e s .
d i r e c t e d at the f i n a n c i n g i n s t i t u t i o n s
at
ranked
as t h e i r
first.
their
highest
Home b u i l d e r s
Only e f f o r t s
t o be
low.
F i n a n c i e r s a l s o were asked how they would e v a l u a t e the importance of
each o f s e v e r a l s u b s i d i e s
and i n c e n t i v e s i f
t h e y were t r y i n g
to
stimulate
12
the d i f f u s i o n o f s o l a r energy systems.
Table 5.
for l i t t l e
As b e f o r e ,
i m p o r t a n c e ; 2 f o r some i m p o r t a n c e ;
or i n c e n t i v e s
some r e s i s t a n c e t o t h i s
as b e i n g g r e a t l y
(3.0)
important—possibly
t o m a n u f a c t u r e r s was t h e o n l y i n c e n t i v e
average
and
the
indicating
tax
for
write-
ranking.
approximately 2 . 5
12
1
t o a p p r o a c h a much i m p o r t a n t
S e v e r a l i n c e n t i v e s o r s u b s i d i e s r e c e i v e d responses t h a t
Included were:
any o f
approach f o r a c h i e v i n g c o m p e t i t i v e e q u a l i t y
R e s e a r c h and d e v e l o p m e n t
in
fashion:
3 f o r much i m p o r t a n c e ;
The r e s p o n d e n t s f a i l e d t o i d e n t i f y
s o l a r h e a t i n g and c o o l i n g s y s t e m s .
offs
a r e summarized
responses were recorded i n the f o l l o w i n g
4 f o r great importance.
subsidies
The r e s u l t s
(i.e.,
averaged
t h e m i d - p o i n t between some and much i m p o r t a n c e ) .
F e d e r a l Government r e s e a r c h and development g r a n t s t o manu-
^
P o t e n t i a l s u b s i d i e s and i n c e n t i v e s w e r e i d e n t i f i e d and f o r m u l a t e d
a f t e r r e v i e w o f t h e t h r e e Phase " 0 " s t u d i e s and a f t e r d i s c u s s i o n s w i t h
r e p r e s e n t a t i v e s o f t h e U. S. League o f S a v i n g s A s s o c i a t i o n s , t h e M o r t g a g e
B a n k e r s A s s o c i a t i o n , t h e N a t i o n a l A s s o c i a t i o n o f Home B u i l d e r s , and t h e
F e d e r a l Home Loan Bank B o a r d .
138
TABLE 5 .
IMPORTANCE OF SUBSIDIES AND INCENTIVES
IN STIMULATING DIFFUSION OF SOLAR HOMES
Subsldy o r I n c e n t i v e
Average o f Responses*
Savings
Total
and Loan
Other
Responses A s s o c i a t i o n s
Financiers
Government R & D Grants t o
Manufacturers
R & D Tax W r i t e - o f f s t o
Manufacturers
P r o p e r t y Tax Exemption o r
C r e d i t s t o Purchasers
F e d e r a l Income Tax C r e d i t s
o r D e d u c t i o n s t o Purchasers
Government Ownership o f
Solar Production F a c i l i t i e s
Government-backed P r o d u c t
Warranty Insurance
J o i n t Industry-Government
Funded'Programs
S o l a r Costs I n c l u d e d Under
FHA T i t l e I Loans
Below-market I n t e r e s t Rates
t o Purchasers ( T o t a l
Mortgage)
B e l o w - m a r k e t I n t e r e s t Rates
t o Purchasers (Solar
System)
B e l o w - m a r k e t - r a t e Funds t o
L e n d i n g I n s t i t u t i o n s (by
FHLBB)
Mortgage Purchase Commitments t o L e n d i n g
I n s t i t u t i o n s (by FHLBB)
Government S u b s i d i z a t i o n
o f Home B u i l d e r s
(Absorption of Costs)
TValues
2.46
2.38
2.61
-1.24
2.87
2.95
2.75
1.15
2.51
2.47
2.57
-.52
2.44
2.32
2.65
-1.88
1.30
1.29
1.31
-.22
2.20
2.14
2.31
-.88
2.21
2.12
2.38
-1.52
2.34
2.32
2.38
-.33
2.32
2.30
2.36
-.27
1.85
1.86
1.84
.09
2.27
2.24
2.33
-.39
2.58
2.45
2.79
-1.72
2.07
2.00
2.17
-.90
^Responses c o u l d range f r o m 1 ( l i t t l e i m p o r t a n c e ) t o 4 ( g r e a t i m p o r t a n c e ) .
The T - v a l u e t e s t s f o r p o s s i b l e s i g n i f i c a n t d i f f e r e n c e s between t h e
s a v i n g s and l o a n a s s o c i a t i o n and o t h e r f i n a n c i e r r e s p o n s e s .
139
f a c t u r e r s ; p r o p e r t y t a x exemptions o r c r e d i t s t o p u r c h a s e r s ; F e d e r a l Income
t a x c r e d i t s o r d e d u c t i o n s t o p u r c h a s e r s ; and i n v o l v e m e n t by t h e
Home Loan Bank Board ( a n d / o r o t h e r governmental a g e n c i e s )
Federal
t o p r o v i d e home
mortgage purchase commitments t o l e n d e r s making mortgage loans on homes
w i t h s o l a r energy s y s t e m s .
a number o f l e v e l s ,
p a r t of
These p o s s i b l e programs w o u l d be d i r e c t e d
at
a g a i n i n d i c a t i n g a l a c k o f d i r e c t i o n a l consensus on t h e
financiers.
F i n a n c i e r s were p a r t i c u l a r l y
opposed t o F e d e r a l government ownership
o f s o l a r system p r o d u c t i o n f a c i l i t i e s
s o l a r homes.
as a means o f s t i m u l a t i n g d i f f u s i o n
of
A n o t h e r p l a n j u d g e d t o be o f low i m p o r t a n c e would i n v o l v e
p r o v i d i n g below-market i n t e r e s t
r a t e s t o p u r c h a s e r s as a means o f
o n l y t h e c o s t o f t h e s o l a r system.
financing
F e d e r a l government s u b s i d i z a t i o n o f
home b u i l d e r s t h r o u g h t h e a b s o r p t i o n o f s o l a r energy system c o s t s a l s o was
ranked low i n . i m p o r t a n c e .
T a b l e 5 f u r t h e r i n d i c a t e s t h a t average responses
c o n c e r n i n g t h e i m p o r t a n c e o f s u b s i d i e s and i n c e n t i v e s d i d n o t d i f f e r
ificantly
sign-
between t h e s a v i n g s and l o a n a s s o c i a t i o n respondents and t h e
o t h e r f i n a n c i e r r e s p o n d e n t s r e p r e s e n t i n g mortgage b a n k i n g f i r m s ,
commercial
b a n k s , and m u t u a l s a v i n g s b a n k s .
CONCLUSIONS AND RECOMMENDATIONS
F i n a n c i a l i n s t i t u t i o n s w i l l p l a y an i m p o r t a n t r o l e i n t h e r a t e o f
d i f f u s i o n o f s o l a r systems i n s i n g l e f a m i l y r e s i d e n c e s .
The m a j o r
thrust
o f t h i s s t u d y was t h e e x a m i n a t i o n o f a t t i t u d e s o f f i n a n c i e r s t o w a r d t h e
s o l a r h e a t i n g and c o o l i n g o f
buildings.
P e r s o n a l i n t e r v i e w s were conducted w i t h r e p r e s e n t a t i v e s o f t h e U n i t e d
S t a t e s League o f Savings A s s o c i a t i o n s ,
t h e Mortgage Bankers A s s o c i a t i o n o f
A m e r i c a , t h e N a t i o n a l A s s o c i a t i o n o f Home B u i l d e r s , and t h e F e d e r a l Home
140
Loan Bank B o a r d .
A d d i t i o n a l i n f o r m a t l on was g a t h e r e d f r o m 131 m a i l
n a i r e s r e c e i v e d from s a v i n g s and l o a n a s s o c i a t i o n s and o t h e r
financier
(mortgage b a n k e r s , commercial b a n k s , and m u t u a l s a v i n g s banks)
who were w e l l - e x p e r i e n c e d and i n i m p o r t a n t d e c i s i o n - m a k i n g
Major conclusions
question-
respondents
positions.
are:
1.
A t t i t u d e s between t h e two b r o a d groups o f r e s p o n d e n t s — s a v i n g s
and l o a n a s s o c i a t i o n s and o t h e r f i n a n c i e r s — u s u a l l y were c o n s i s t e n t .
However, c e r t a i n responses were c h a r a c t e r i z e d by l e s s o p t i m i s t i c
o r more c o n s e r v a t i v e o p i n i o n s by t h e o t h e r f i n a n c i e r r e s p o n d e n t s .
2.
Responses were g e n e r a l l y c o n s i s t e n t across b r o a d
a r e a s — N o r t h e a s t , S o u t h , M i d w e s t , and West.
3.
Nearly t h r e e - f o u r t h s o f the respondents b e l i e v e d t h a t s o l a r energy
w o u l d r e p r e s e n t a f e a s i b l e a l t e r n a t i v e energy s o u r c e f o r t h e
h e a t i n g and c o o l i n g o f s i n g l e f a m i l y r e s i d e n c e s w i t h i n t h e n e x t
10 y e a r s .
4.
F i n a n c i e r s i n d i c a t e d a p r e f e r e n c e f o r making l o a n s on s o l a r homes
(as opposed t o o t h e r t y p e s o f s t r u c t u r e s ) and o v e r w h e l m i n g l y p r e - ,
f e r r e d t o have s o l a r systems on new homes f i n a n c e d as p a r t o f t h e
t o t a l mortgage l o a n on t h e home.
5.
Respondents were p a r t i c u l a r l y concerned about t h e r e l i a b i l i t y o f
s o l a r systems and t h e i r e f f e c t on s a l a b i l i t y o f s i n g l e f a m i l y
residences.
S u b s t a n t i a l concern a l s o was e x p r e s s e d about t h e
e x p e c t e d l i f e o f s o l a r equipment and t h e a s s o c i a t e d m a i n t e n a n c e
expenses.
6.
L i f e - c y c l e and i n i t i a l s o l a r s y s t e m c o s t s were p e r c e i v e d t o be o f
much i m p o r t a n c e t o t h e r e s p o n d e n t s i f t h e y were c o n s i d e r i n g a
mortgage l o a n r e q u e s t on a s o l a r home. Somewhat s u r p r i s i n g l y ,
37 p e r c e n t o f t h e respondents i n d i c a t e d t h a t t h e y p r e s e n t l y c o n s i d e r
l i f e - c y c l e c o s t s when e v a l u a t i n g mortgage l o a n r e q u e s t s .
7.
Respondents f e l t t h a t , on t h e a v e r a g e , a payback p e r i o d ( i . e . ,
t h e t i m e r e q u i r e d t o match o p e r a t i n g s a v i n g s w i t h i n i t i a l c o s t s )
o f s l i g h t l y more t h a n e i g h t y e a r s w o u l d be needed t o e c o n o m i c a l l y
j u s t i f y a s o l a r energy i n s t a l l a t i o n i n a s i n g l e f a m i l y r e s i d e n c e .
However, f i n a n c i e r s f e l t t h a t an average i n i t i a l s o l a r s y s t e m
c o s t o f 4 - 6 p e r c e n t on a $ 3 0 , 0 0 0 - $ 4 0 , 0 0 0 home ( 7 - 9 p e r c e n t on
$70,000 and above homes) was an a c c e p t a b l e p e r c e n t a g e c o s t i n c r e a s e
t h a t w o u l d make s o l a r energy systems a t t r a c t i v e .
8.
D i f f e r e n c e s of o p i n i o n e x i s t concerning the impact of a s o l a r
system on t h e s a l a b i l i t y and l o a n a b l l i t y o f a s i n g l e f a m i l y
residence.
A s c e n a r i o , where a $5,500 s o l a r s y s t e m i s added t o a
$ 5 0 , 0 0 0 - $ 6 0 , 0 0 0 home, r e s u l t e d i n some respondents b e l i e v i n g t h a t
geographical
141
s a l a b i l i t y and l o a n a b i l i t y would be somewhat enhanced w h i l e
o t h e r s f e l t t h a t s a l a b i l i t y and l o a n a b i l i t y would be somewhat
reduced.
9.
I n c e n t i v e s o r s u b s i d i e s may be necessary I n o r d e r t o a c h i e v e r a p i d
n e a r - t e r m d i f f u s i o n o f s o l a r systems i n s i n g l e f a m i l y r o b i d c n c v s .
However, based on a c l o s e s c r u t i n y o f t h e r e s p o n s e s , t h e r e scctns
t o e x i s t some f i n a n c i e r r e s i s t a n c e t o t h e use o f i n c e n t i v e s and
s u b s i d i e s to achieve near-term c o m p e t i t i v e e q u a l i t y f o r s o l a r
systems.
Respondents s u p p o r t e d r e s e a r c h and development t a x
w r i t e - o f f s to manufacturers.
On the o t h e r h a n d , f i n a n c i e r s were
p a r t i c u l a r l y opposed t o F e d e r a l government o w n e r s h i p o f s o l a r
system p r o d u c t i o n f a c i l i t i e s .
A t t h i s t i m e , s o l a r h e a t i n g and co.oling systems a r e n o t
economically
c o m p e t i t i v e w i t h c o n v e n t i o n a l h e a t i n g and a i r - c o n d i t i o n i n g systems.
Initial
s o l a r system c o s t s , as a p e r c e n t a g e o f t h e c o s t o f a home, a r e above the
c o s t i n c r e a s e s deemed necessary by f i n a n c i e r s
t o make s o l a r systems
a t t r a c t i v e t o owners o f s i n g l e f a m i l y r e s i d e n c e s .
L i k e w i s e , a payback
p e r i o d o f a p p r o x i m a t e l y e i g h t y e a r s does n o t seem t o be p r e s e n t l y
feasible
a c c o r d i n g t o t h e Phase " 0 " s t u d i e s by General E l e c t r i c , TRW, and Westinghouse
Electric.
These f a c t s and t h e f i n d i n g s o f t h i s study p r o v i d e t h e b a s i s
the f o l l o w i n g
for
recommendations:
1.
A system f o r e d u c a t i n g f i n a n c i e r s i n the value of l i f e - c y c l e
c o s t concepts must be developed.
A w i l l i n g n e s s by a l l f i n a n c i e r s
t o c o n s i d e r l i f e - c y c l e c o s t s i s n e c e s s a r y i f s o l a r energy systems
are t o be c o m p e t i t i v e w i t h c o n v e n t i o n a l h e a t i n g and c o o l i n g systems
i n the f u t u r e .
P o s s i b l y much o f t h e e d u c a t i o n a l m a t e r i a l s c o u l d be
d i s s e m i n a t e d t h r o u g h t h e U. S. League o f Savings A s s o c i a t i o n s , t h e
Mortgage Bankers A s s o c i a t i o n o f A m e r i c a , the N a t i o n a l A s s o c i a t i o n
o f Home B u i l d e r s , a n d / o r t h e F e d e r a l Home Loan Bank Board.
2.
T e s t d a t a need t o be c o m p i l e d and d i s s e m i n a t e d t o f i n a n c i e r s c o n c e r n i n g t h e r e l i a b i l i t y , expected l i f e , l i k e l y maintenance expenses,
and p o s s i b l e leakage damages a s s o c i a t e d w i t h s o l a r systems.
Such
i n f o r m a t i o n would a i d f i n a n c i e r s i n t h e i r d e c i s i o n s whether t o
f i n a n c c s i n g l e f a m i l y r e s i d e n c e s equipped w i t h s o l a r h e a t i n g and
c o o l i n g systems.
3.
I n c e n t i v e and s u b s i d y programs must be i n i t i a t e d by t h e F e d e r a l
Government.
O t h e r w i s e , we can e x p e c t s o l a r energy d i f f u s i o n t o
probably p a r a l l e l the c e n t r a l a i r - c o n d i t i o n i n g experience i n the
U. S. A s t a r t i n g p o i n t m i g h t take., t h e f o r m o f r e s e a r c h and
development t a x w r i t e - o f f s t o m a n u f a c t u r e r s and p o s s i b l y p r o p e r t y
t a x and F e d e r a l income t a x concessions t o p u r c h a s e r s .
62-322 O - 75 - 10
142
4.
Further research on the p o t e n t i a l b e n e f i t / c o s t t r a d e - o f f s
associated w i t h various subsidy and i n c e n t i v e programs i s
needed. This would include i d e n t i f y i n g s p e c i f i c programs (and
l e v e l s ) that would provide for the recovery of i n i t i a l s o l a r
energy system costs w i t h i n an acceptable payback p e r i o d .
143
APPENDIX 1.
BRIEF DESCRIPTION OF SOLAR ENERGY CONCEPTS
SOLAR HEATING AND COOLING OF BUILDINGS
The f u t u r e r o l e o f s o l a r energy In h e a t i n g and c o o l i n g b u i l d i n g s
depends on a number of t e c h n o l o g i c a I e c o n o m i c , s o c i a l , e n v i r o n m e n t a l , ami
Institutional factors.
T h i s b r i e f w r l u — u p f o c u s e s on c u r r e n t st ; i l e - o t - t he
a c t c o n c e p t s p r o v i d e d in a Ford F o u n d a t i o n s t u d y by Schoen and Weiny.ari
(November, 1973) and N a t i o n a l S c i e n c e F o u n d a t i o n s t u d i e s by G e n e r a l K l e c l i i c ,
TRW, and Westinghouse E l e c t r i c (May, 1 9 7 4 ) .
*•
Solar Energy Systems
Figure 1 contains a schematic diagram of a s o l a r energy system
u t i l i z i n g a s o l a r heated f l u i d and employing water heat s t o r a g e .
Both
water heating and f o r c e d - a i r space heating c a p a b i l i t i e s are i n d i c a t e d ,
as w e l l as an a u x i l i a r y or conventional back-up heating system.
The mounting.of s o l a r c o l l e c t o r s on the r o o f s of s i n g l e - f a m i l y residences
i s c o n s i s t e n t w i t h c u r r e n t s t a t e - o f - t h e - a r t developments. A r c h i t e c t renderings
are a v a i l a b l e which show the a b i l i t y to add s o l a r c o l l e c t o r panels t o the
r o o f s of t r a d i t i o n a l l y designed residences and contemporary and v a c a t i o n r e s i dences w i t h o u t a l t e r i n g the basic a e s t h e t i c s . Figure 2 i s an i l l u s t r a t i o n of
a residence o f contemporary design w i t h s o l a r c o l l e c t o r panels on the r o o f .
This b u i l d i n g i s now under c o n s t r u c t i o n a t Fort C o l l i n s , Colorado and w i l l
be b o t h s o l a r heated and cooled.
Two basic s o l a r systems, given the c u r r e n t s t a t e - o f - t h e - a r t , seem to
o f f e r the best near-term p o t e n t i a l f o r use i n s i n g l e - f a m i l y residences. One
system would provide f o r solar h e a t i n g (water and space) o n l y . Such a system
may or may not have a conventional compressor a i r - c o n d i t i o n i n g system added.
A second basic system would provide both s o l a r heating and c o o l i n g w i t h the
c o o l i n g f u n c t i o n being provided by an absorption a i r - c o n d i t i o n i n g system.
Solar Heating Only
This would be the l e a s t complicated s o l a r energy system. Figure 1
d e p i c t s such a system. I n a s o l a r h e a t i n g only system, a choice e x i s t s between
a system t h a t u t i l i z e s a i r heating c o l l e c t o r s and dry rock heat storage versus
a system w i t h water or o t h e r f l u i d heating c o l l e c t o r s and water heat storage.
At t h i s p o i n t I n t i m e , i t s t i l l remains t o be determined which system w i l l
r e s u l t i n a lower cost-performance r a t i o .
An a i r system i s not subject t o p o s s i b l e f l u i d leakage problems. However,
more power i s g e n e r a l l y r e q u i r e d t o move a i r through c o l l e c t o r s and heat
storage areas i n c o n t r a s t w i t h the pumping of w a t e r . A i r h e a t i n g c o l l e c t o r s
a l s o are somewhat l e s s e f f i c i e n t than f l u i d h e a t i n g c o l l e c t o r s .
Solar Heating and Cooling (Absorption)
The use of s o l a r energy t o perform a c o o l i n g f u n c t i o n i s s u b s t a n t i a l l y
more d i f f i c u l t than h e a t i n g w i t h solar energy. There i s no a v a i l a b l e technology
which permits an e f f i c i e n t use of solar energy to operate a conventional
compressor a i r - c o n d i t i o n i n g system ( i . e . , there i s no e f f i c i e n t method f o r
c o n v e r t i n g s o l a r energy to e l e c t r i c i t y t o run an a i r - c o n d i t i o n e r ) .
144
SOLAR ENERGY AND WATER HEATING/SPACE HEATING
SOLAR PREHEATING SYSTEM
CONVENTIONAL HYDRON1C
HEATING SYSTEM
SOLAR COLLECTOR
O N ROOF
iUCJLJLJL
'
cjznjOM
/CJCJEJCJA
RETURN
FROM
SPACE
HEATING
SOLAR HEATED FLUID*
SEALED HEAT
EXCHANGER
IN TANK
COLD
WATER
INLET
HOT WATER TO
BUILDING FOR
HOT WATER LINES,
SPACE H E A T I N G -
HEATED WATER
COOLED FLUID RETURNS TO
COLLECTOR FOR REHEAT
HOT WATER
STORAGE TANK
• N O N TOXIC
N O N CORROSIVE
N O N FREEZING
Figure
1
Sourcei George V6f
Colorado State University
\
NATURAL GAS
(SUPPLEMENTARY FUEL)
N
Souroet Schoen and Vfelngart
(November, 1973)
GAS BOILER
Figure 2
•USING HYDRONIC
HEATING SYSTEM
145
However, there e x i s t s s u b s t a n t i a l operating and manufacturing exporKmuo
on the use of l i t h i u m bromide-water absorption a i r - c o n d i t i o n e r s .
Such a
system can u t i l i z e s o l a r heat as a d i r e c t input i n performing the a i r c o n d i t i o n i n g f u n c t i o n through an absorption process. Absorption a i r c o n d i t i o n e r s , to d a t e , have not been as successful as compressor a i r c o n d i t i o n e r s because o f higher cpsts and l a r g e r space requirements. They
a r * , hdwever, the most l i k e l y method f o r achieving s o l a r c o o l i n g and may
help produce cost economies through a more complete u t i l i z a t i o n of a solar
energy system.
II.
Solar Energy Economics
The economics of s o l a r heating and c o o l i n g r e l a t i v e to conventional
h e a t i n g and c o o l i n g systems are u n c e r t a i n a t t h i s p o i n t i n time. This
u n c e r t a i n t y w i l l remain u n t i l s u b s t a n t i a l proof-of-concept-experiments have
been conducted and evaluated.
I n i t i a l Costs
F l a t p l a t e c o l l e c t o r panels are commercially a v a i l a b l e . The solar
c o l l e c t o r system w i l l c o n s t i t u t e the most expensive element of a t o t a l
energy system. A d d i t i o n a l i n i t i a l costs w i l l be i n c u r r e d f o r p i p i n g and
plumbing requirements and f o r a heat storage u n i t . A s o l a r c o o l i n g system
a l s o would r e q u i r e a d d i t i o n a l i n i t i a l costs f o r an a b s o r p t i o n a i r - c o n d i t i o n e r .
Operating and Maintenance Costs
Given the c u r r e n t s t a t e - o f - t h e - a r t , i t i s a d i f f i c u l t task t o t r y t o
estimate o p e r a t i n g , r e p a i r , and maintenance expenses which w i l l be associated
w i t h a s o l a r energy system. Fuel costs w i l l be lower under the s o l a r system
r e l a t i v e to a c o n v e n t i o n a l system. However, a t t h i s time i t i s g e n e r a l l y
b e l i e v e d t h a t maintenance expenditures w i l l be r e l a t i v e l y higher f o r the
system u t i l i z i n g s o l a r energy.
L i f e - C y c l e Costs
The r e l a t i v e costs Involved i n solar energy systems versus c o n v e n t i o n a l
h e a t i n g and c o o l i n g (HVAC) systems can be placed i n a c l e a r e r p e r s p e c t i v e
when viewed on a l i f e - c y c l e b a s i s . That i s , the higher costs associated w i t h
a s o l a r energy i n s t a l l a t i o n w i l l be o f f s e t , at l e a s t i n p a r t , by lower f u e l
costs over the l i f e of the system. C r i t i c a l t o any l i f e - c y c l e cost a n a l y s i s
are such f a c t o r s as: 1) o p e r a t i n g and maintenance cost " e s t i m a t e s " f o r a
s o l a r system; 2) the r a t e of increase i n f u e l costs f o r a conventional system;
3) the l i f e expectancy of a s o l a r system; and 4) the r a t e of discount which
r e f l e c t s the " t i m e value of money."
Ronald W. Melicher
Associate Professor of Finance
U n i v e r s i t y of Colorado
Boulder, Colorado 80302
146
APPENDIX 2.
QUESTIONNALRK RKSEARCH INSTRUMENT
U n a n c l a l I n s t i t u t i o n Questionnaire
This questionnaire study i s being conducted under a grant from the
N a t i o n a l Science Foundation. We are i n t e r e s t e d i n the opinions and a t t i t u d e s
of people from f i n a n c i a l i n s t i t u t i o n s which are involved i n the f i n a n c i n g
of s i n g l e - f a m i l y residences. On behalf of the N a t i o n a l Science Foundation,
we would appreciate your"responses to the f o l l o w i n g questions.
1.
Please check the type of i n s t i t u t i o n you are employed b y .
Savings and Loan A s s o c i a t i o n
Mortgage Banking Firm
Commercial Bank
Mutual Savings Bank
Other (please s p e c i f y )
2.
Please I n d i c a t e :
a . L o c a t i o n of your i n s t i t u t i o n ( c i t y and s t a t e )
b . Size of your i n s t i t u t i o n ( t o t a l assets of i n s t i t u t i o n )
3.
.
Please i n d i c a t e your present j o b p o s i t i o n or t i t l e
How many years have you been employed i n the l e n d i n g i n d u s t r y ? ________
4.
How knowledgeable are you about the s o l a r heating and c o o l i n g of
b u i l d i n g s ? Please check one of the f o l l o w i n g d e s c r i p t i o n s :
Have read numerous a r t i c l e s and/or other m a t e r i a l s on
s o l a r energy.
Have read some a r t i c l e s and/or other m a t e r i a l s on
s o l a r energy.
Have read only the m a t e r i a l s attached t o t h i s q u e s t i o n n a i r e
on s o l a r energy.
5.
I n your o p i n i o n , i n i n t r o d u c i n g solar h e a t i n g / c o o l i n g systems i n new
c o n s t r u c t i o n , how would you rank the f o l l o w i n g s t r u c t u r e s on the b a s i s
of your i n d u s t r y ' s w i l l i n g n e s s to make loans on the s o l a r energy systems?
Please rank from 1 (highest preference) through 5 (lowest p r e f e r e n c e ) .
A
A
A
A
A
6.
small o f f i c e or p r o f e s s i o n a l b u i l d i n g
s i n g l e - f a m i l y residence ($50,000 to $60,000)
condominium apartment
s m a l l apartment b u i l d i n g
small i n d u s t r i a l b u i l d i n g
I n your o p i n i o n i s the idea o f solar energy economics and technology
f e a s i b l e as an a l t e r n a t i v e energy source f o r the h e a t i n g and c o o l i n g
of single-family residences....
(check one)
'
i n the next 5 years
5 - 1 0 years
10 - 20 years
beyond 20 years
d o n ' t know
147
To what extent would the folLowing f a c t o r s be of concern to
f i n a n c i a l i n s t i t u t i o n s ' decisions t o finance c o n s t r u c t i o n of
s i n g l e - f a m i l y residences w i t h s o l a r h e a t i n g / c o o l i n g systems?
C i r c l e the number which most c l o s e l y represents your degree
of concern w i t h each of the f o l l o w i n g c h a r a c t e r i s t i c s :
,0
Q
£
JV
£
n*
O
/*
<2j
£
rF
Cj
£
a.
expected l i f e of s o l a r equipment
1
2
3
4
b.
f u e l cost savings
1
2
3
4
c.
maintenance expense
1
2
3
4
d.
warranty coverage on solar
*
equipment
1
2
3
4
e.
r e l i a b i l i t y of s o l a r system
1
2
3
4
f.
damage due t o water leaks
1
2
3
4
g.
e f f e c t on s a l a b i l i t y of home
1
2
3
4
h.
i n s u r a b i l i t y of home
1
2
3
4
A
o
&
t9
tr
The i n s t a l l a t i o n of s o l a r energy systems i n s i n g l e - f a m i l y residences
w i l l r e q u i r e i n i t i a l costs or expenditures above the costs f o r
conventional HVAC systems. Assume that you have been asked to
consider a mortgage loan request on a new s i n g l e - f a m i l y residence
equipped w i t h a s o l a r heating and c o o l i n g system. How important
would the f o l l o w i n g f a c t o r s be to your decision? C i r c l e the
number which most c l o s e l y represents your o p i n i o n concerning
each f a c t o r .
(Before r a t i n g each f a c t o r read down the l i s t to
form a t e n t a t i v e Impression of t h e i r r e l a t i v e i m p o r t a n c e . )
£
&
o
- V
a.
a p p l i c a n t ' s annual income
2
3
b.
evidence on the expected l i f e
of the s o l a r energy system
2
3
c.
added i n i t i a l cost of the
s o l a r system
d.
l i f e - c y c l e costs f o r the s o l a r
system
2
3
continued on next page)
148
14. ( c o n t i n u e d )
data on how w e l l the solar
system i s expected to perform
^
1
2
p i
v
3
f.
data on the p o s s i b i l i t y of
damage due t o leakages, e t c . ,
i n the system
1
2
3
g.
educational i n f o r m a t i o n provided by n a t i o n a l organizations
( e . g . , U. S. S & L League,.
Mortgage Bankers Association,
N a t i o n a l Association of Home
Builders, etc.)
1
2
3
h.
r e a l estate appraisers
educated i n solar energy
concepts
1
2
3
1.
a d d i t i o n a l P I T I requirements
due t o solar i n s t a l l a t i o n
1
2
3
e.
<?j-
^a
I n order t o make solar energy systems a t t r a c t i v e to owners of
s i n g l e - f a m i l y residences, what i s your e s t i m a t i o n of i n i t i a l
acceptable percentage cost increases? Please check the a p p r o p r i a t e
percentage increase f o r each p r i c e of home category.
S i n g l e - f a m i l y residences c o s t i n g
Acceptable percentage
of added cost
$30,000 to
$40,000
$50,000 t o
$60,000
1-3%
^
4 - 6
,
7 - 9
_ _ _ _
10 -
12
13 - 15
16 - 18
19 -
21
$70,000
and above
_ _ _ _ _
_______
149
Sola? ehergy systems r e q u i r e l a r g e r i n i t i a l expenditures r e l a t i v e
t o conventional HVAC systems. Consequently, economic j * u s t i f i c a t i o n
f o r a s o l a r system r e s t s on achieving lower operating costs ( f u e l
cost savings adjusted f o r maintenance cost d i f f e r e n c e s ) . T h i s
represents a l i f e - c y c l e cost a n a l y s i s . That i s , l a r g e r i n i t i a l
o u t l a y s are o f f s e t by f u t u r e savings.
A.
I n c u r r e n t p r a c t i c e , how important are l i f e - c y c l e cost
c o n s i d e r a t i o n s i n the mortgage loan d e c i s i o n process? That
i s , are heating and cooling costs important f a c t o r s i n mortgage
loan d e c i s i o n s f o r s i n g l e - f a m i l y residences?
never considered
B.
seldom considered
I n terms of s o l a r energy i n s t a l l a t i o n s , what would you consider
the minimum annual f u e l cost savings necessary to make s o l a r
energy systems a t t r a c t i v e to .owners of s i n g l e - f a m i l y
residences?
(check one) .
Percent Savings
Percent Savings
50-60%
60-70%
70-80%
80-90%
90-100%
0-10%
10-20%
20-30%
30-40%
40-50%
C.
always considered
One way of e v a l u a t i n g l i f e - c y c l e costs i s t o determine the
number of years i t w i l l take before savings from o p e r a t i o n of
the s o l a r system w i l l equal the I n i t i a l cost of the system.
I n your o p i n i o n how f a s t would the payback ( i . e . , time r e q u i r e d
to match o p e r a t i n g savings w i t h i n i t i a l costs) have to be i n
order t o economically j u s t i f y a s o l a r energy i n s t a l l a t i o n
i n a s i n g l e - f a m i l y residence?
(check one)
Number of years
1
2
4
6
8
10
Number of years
year or less
years
years
years
years
years
12 years
14 years
16 years
18 years
20 years
over 20 years
A l l t h i n g s considered, how do you b e l i e v e the i n c o r p o r a t i o n of
s o l a r h e a t i n g and c o o l i n g i n a $50,000 t o $60,000 s i n g l e - f a m i l y
residence w i l l a f f e c t i t s s a l a b i l i t y and l o a n a b i l i t y i f the s o l a r
i n s t a l l a t i o n costs $5,500?
its
salability
G r e a t l y enhance
Somewhat enhance
Not a f f e c t
Somewhat reduce
G r e a t l y reduce
b. I t s
loanability
Greatly enhance
Somewhat enhance
Not a f f e c t
Somewhat reduce
G r e a t l y reduce
150
12.
In your o p i n i o n , how should the added costs of a s o l a r energy system
i n s t a l l e d i n a new slngle-famLIy residence be financed? Please
rank from 1 (highest preference) through 5 (lowest p r e f e r e n c e ) .
as p a r t of the t o t n l mortgage loan
(conventional,
VA or FHA) on the home
under a separate second mortgage loan
w i t h an FHA mortgage loan on the s o l a r equipment
_ _ _ on an i n s t a l l m e n t loan b a s i s ( s i m i l a r t o l a r g e appliances)
o t h e r (please s p e c i f y )
13.
_
I t has been suggested t h a t i n order t o achieve an acceptable r a t e
of d i f f u s i o n of s o l a r energy systems i n t o s i n g l e - f a m i l y residences
some form(s) of i n c e n t i v e s or subsidies w i l l be needed. These
subsidies or i n c e n t i v e s could be d i r e c t e d at a number of levels—manuf a c t u r e r s of s o l a r energy systems, home b u i l d e r s , f i n a n c i n g i n s t i t u t i o n s , and consumers. I n your o p i n i o n , a t what l e v e l s would the
best b e n e f i t s ( i . e . , a greater r a t e of d i f f u s i o n ) be achieved r e l a t i v e
t o costs i n c u r r e d . Please rank the f o u r l e v e l s from 1 ( h i g h e s t
b e n e f i t / c o s t e x p e c t a t i o n ) through 4 (lowest b e n e f i t / c o s t e x p e c t a t i o n ) .
Manufacturers of s o l a r equipment
Home b u i l d e r s
Financing i n s t i t u t i o n s
Consumers or purchasers
14.
I n your o p i n i o n , i f you were t r y i n g t o s t i m u l a t e the d i f f u s i o n of
s o l a r energy systems, how would you evaluate each of the f o l l o w i n g
f a c t o r s as t o i t s b e n e f i t / c o s t importance? C i r c l e the number which
most c l o s e l y represents your o p i n i o n concerning each i t e m .
(Before
r a t i n g each i t e m , read down the l i s t t o form a t e n t a t i v e impression
of t h e i r r e l a t i v e importance.)
S
e
<u
®
£
Federal government grants t o
manufacturers t o encourage
R&D i n s o l a r energy systems
b.
Tax w r i t e - o f f s t o manufacturers
t o encourage R&D i n s o l a r
energy systems
c.
Property tax exemptions and
c r e d i t s t o purchasers of
homes w i t h s o l a r energy
systems
c
2
r
£
w g-
a.
o
«
*
w
c
S
3
g $
2 |
•*J8
$
o
. 1
1
2
3
4
( c o n t i n u e d on next page)
151
14.
(continued)
o o
•7
d.
Federal income tax c r e d i t s
and/or deductions to
purchasers of homes w i t h
s o l a r energy systems
e.
Government ownership of
solar production f a c i l i t i e s
f.
Government-backed product
warranty insurance
g.
J o i n t industry/governmentfunded programs
h.
Include s o l a r energy i n s t a l l a t i o n s
under FHA T i t l e 1 mortgage loans
i.
Provide lower I n t e r e s t cost
loans ( r e l a t i v e to the going
r a t e on homes using conventional
HVAC systems) t o purchasers of
new homes w i t h s o l a r energy
systems:
j.
k.
<u £
a7 o
1. Below-market i n t e r e s t rates on
the t o t a l mortgage
3
A
2. Below-market i n t e r e s t rates
only on the s o l a r component
3
4
1. Provide below-market-rate
funds t o i n s t i t u t i o n s making
loans on homes w i t h s o l a r
energy systems
3
4
2. Provide home mortgage purchase
commitments t o lenders making
mortgage loans on homes w i t h
s o l a r energy systems
3
4
Federal government s u b s i d i z a t i o n
of home b u i l d e r s through the
a b s o r p t i o n of solar energy
system costs
3
4
Involvement by the Federal Home
Loan Bank Board and other governmental agencies:
THANK YOU FOR YOUR ASSISTANCE.
152
APPENDIX 3.
Type of
TABULATED RESULTS OF QUESTIONNAIRES
Institution:
Number
Savings and Loan A s s o c i a t i o n s
Other F i n a n c i e r s (OF)
Mortgage Banking Firms
Commercial Banks
M u t u a l Savings Banks
Total
Location of
(SL)
79
52
60.3
39.7
13l
100.0
19
18
15
Institution:*
Northeast
South
Midwest ( N o r t h C e n t r a l )
West ( i n c l u d i n g Southwest)
No Response
Percent
SL
16
26
26
10
1
Number
OF
18
11
10
11
2
Total
34
37
36
21
3
Percent
26.0
28.2
27.5
16.0
2.3
100.0
*The c l a s s i f i c a t i o n o f s t a t e s by geographic r e g i o n i s p r e s e n t e d
Appendix A.
Asset Size o f
in
Institution:
$Millions
1-50
51-200
201 and over
No Response
Job P o s i t i o n o r
SL
28
30
21
0
Number
OF
12
15
18
7
Total
40
45
39
7
Percent
30.5
34.4
29.8
5.3
100.0
SL
39
Number
OF
11
Total
50
Percent
38.2
25
7
8
0
9
13
18
1
34
20
26
1
26.0
15.3
19.8
.8
100.0
Title:
President*
E x e c u t i v e and Senior
Vice Presidents
Vice President
Operating O f f i c e r s
No Response
* I n c l u d e s two savings and l o a n Board Chairmen.
Years Employed i n Lending I n d u s t r y
1-10
11-20
21-30
31 and over
No Response
SL
7
35
28
8
1
Number
OF
13
19
16
3
1
Total
20
54
44
11
2
Percent
15.3
41.2
33.6
8.4
1.5
100.0
153
Knowledge about Solar Heating and Cooling of B u i l d i n g s :
Number
Read
Read
Read
to
Numerous M a t e r i a l s
Some M a t e r i a l s
Only M a t e r i a l s Attached
Questionnaire
SL
3
61
OF
1 ,
41
15
10
Total
4
102
25
Percent
3.1
77.9
19.1
100.0
Preference f o r making Loans on Solar Energy Systems
by Type of S t r u c t u r e :
Total
Sample
Preference
1 (highest)
2
3
4
5 (lowest)
Incomplete
Response
Small
Office
Building
Single
Family
Residence
Condominium
Apartment
Small
Apartment
Building
Small
Industrial
Building
20.6%
25.2
17.6
13.7
7.6
52.7%
10.7
10.7
6.9
9.9
3.1%
16.8
11.5
19.1
29.8
1.5%
13.7
31.3
22.9
11.5
9.9%
16.0
20.6
11.5
26.0
15.3
9.2
19.8
19.1
16.0
Number o f Times Selected as Highest Preference
Small O f f i c e B u i l d i n g
S i n g l e Family Residence
Condominium Apartment
Small Apartment B u i l d i n g
Small I n d u s t r i a l B u i l d i n g
SL
16
42
0
1
7
Number
OF
11
27
4
1
6
Total
27
69
4
2
13
115
Percent
23.5
60.0
3.5
1.7
11.3
100.0
L i k e l y F e a s i b i l i t y of Solar Systems f o r Single Family Residences:
W i t h i n 5 years
5-10 years
10-20 years
21 and over
Don't Know
SL
19
44
8
2
6
Number
OF
6
24
6
1
15
Total
25
68
14
3
21
Percent
19.1
51.9
10.7
2.3
16.0
100.0
154
Degree o f Concern I n F i n a n c i n g S o l a r Homes:
Little
Concern
d.
Some
Concern
Much
Concern
Great
Concern
No
Response
expected l i f e
of solar
equipment
2.3%
24.4%
41.2%
31.3%
f u e l cost
savings
6.1
26.0
38.9
26.7
2.3
maintenance
expense
1.5
20.6
46.6
30.5
.8
warranty
coverage on
solar equipment
9.2
31.3
30.5
26.7
2.3
.8
3.8
26.7
67.2
1.5
damage due to
water leaks
16.0
29.8
27.5
26.0
.8
e f f e c t on
s a l a b i l i t y of
home
3.8
15.3
24.4
55.7
.8
19.1
13.7
22.9
43.5
.8
r e l i a b i l i t y of
solar system
insurability
of home
.8%
Averages and Standard Deviations ( i n parentheses) for Each of the
Factors
(Degree of Concern: L i t t l e - 1 ; Some-2; Much«3; Great-4)
a.
b.
c.
d.
SL
2.94
(.81)
2.89
(.91)
3.05
(.73)
2.77
(.98)
OF
3.16
(.81)
2.88
(.85)
3.10
(.81)
2.76
(.94)
Total
3.02
(.81)
2.88
(.88)
3.07
(.76)
2.77
(.96)
e.
f.
gh.
SL
3.64
(.60)
2.51
(1.07)
3.17
(.91)
2.65
(1.22)
OF
3.61
(.60)
2.84
(.97)
3.59
(.75)
3.33
(.93)
Total
3.63
(.60)
2.64
(1.04)
3.33
(.88)
2.92
(1.16)
155
Degree of Importance i n Considering Loan Requests on Solar Homes:
Little
Importance
applicant1s
annual income
6.1%
Some
Importance
Much
Importance
Great
Importance
No
Response
32.8%
33.6%
27.5%
0.0%
.8
12.2
47.3
39.7
0.0
added
i ar l system
cost
of
the i ns oi tl a
3.8
26.7
40.5
29.0
0.0
l i f e - c y c l e costs
f o r the s o l a r
system
1.5
22.9
45.8
29.0
0.0
data on how w e l l
the s o l a r system
i s expected t o
perform
1.5
14.5
45.8
37.4
.8
data on the p o s s i b i l i t y of damage
due t o leakages,
e t c . , i n the
system
3.1
41.2
37.4
17.6
.8
educational i n f o r mation provided by
national organizations
( e . g . , U. S. S & L
League, Mortgage
Bankers A s s o c i a t i o n ,
National Association
o f Home B u i l d e r s ,
etc.)
12.2
42.0
29.8
14.5
1.5
r e a l estate
appraisers educated
i n s o l a r energy
concepts
7.6
29.8
39.7
21.4
1.5
additional PITI
requirements due
to solar
installation
6.1
35.9
31.3
15.3
11.5
evidence on the
expected l i f e o f
the s o l a r energy
system
156
14. ( c o n t i n u e d )
Averages and Standard Deviations ( i n parentheses) f o r Each of the
Factors
L i t t l e -1; Some=2; Much®3; Great«4)
(Degree of Importance :
a.
b.
c.
d.
e.
9.
SL
2.73
(.89)
3.22
(-75)
2.86
(.80)
2.98
(.78)
3.15
(.79)
OF
2.96
(.93)
3.33
(.62)
3.08
(.90)
3.14
(.74)
3.28
(.67)
Total
2.82
(.91)
3.26
(.70)
2.95
(.84)
3.04
(.77)
3.20
(.74)
f.
g.
h.
i.
SL
2.56
(.81)
2.45
(.94)
2.74
(.86)
2.47
(.84)
OF
2.92
(.72)
2.51
(.83)
2.78
(.92)
2.93
(.79)
Total
2.70
(.79)
2.47
(.89)
2.76
(.88)
2.63
(.85)
Acceptable Percentage of Added Cost Per Home f o r Solar System
$30,000-$40,000
Number Percent
1-3%
4 - 6
7 - 9
10 - 12
13 - 15
16 - 18
19 - 21
No Response
By Group .
1-3%
4 - 6
7 - 9
10 - 12
13 - 15
16 - 18
19-21
No Response
47
45
8
19
3
0
1
8
35..9
34..4
6..1
14..5
2..3
0..0
.8
6,. 1
100,.0
$30,000-$40,000
Number
OF
SL
28
19
18
27
5
3
12
7
2
1
0
0
0
1
3
5
$50,000-$60,000
Number Percent
9
53
29
25
4
2
0
9
6.9
40.5
22.1
19.1
3.1
1.5
0.0
6.9
100.0
$50,000-$60,000
Number
SL
OF
2
7
20
33
16
13
14
11
3
1
1
1
0
0
5
4
$70,000 and Above
Number
Percent
12
36
20
31
13
5
4
10
9.2
27.5
15.3
23.7
9.9
3.8
3.1
7.6
100.0
$70,000 and Above
Number
OF
SL
10
2
20
16
13
7
18
13
7
6
2
3
2
2
6
4
157
10a.
Importance of L i f e - C y c l e Costs I n Current Mortgage Loan Decisions:
Never Considered
Seldom Considered
Always Considered
No Response
b.
OF
7
22
22
1
SL
4
49
26
0
Nutnbes
Total
11
71
48
1
Percent
8.4
54.2
36.6
.8
100.0
Annual Fuel Cost Savings Necessary t o make Solar Energy A t t r a c t i v e : *
OF
0
9
23
7
2
6
0
0
5
SL
0
19
29
9
8
4
2
1
7
0 - 10%
10 - 20
20 - 30
30 - 40
40 - 50
50 - 60
60 - 70
70 - 80
No Response
Number
Total
0
28
52
16
10
10
2
Percent
0.0
21.4
39.7
12.2
7.6
7.6
1.5
.
8
9.2
100.0
1
12
*Several respondents i n d i c a t e d t h a t t h e i r answers were h i g h l y dependent;
upon assumptions about f u e l costs and i n i t i a l s o l a r c o s t s . Thus, we
c a u t i o n the reader attempting t o i n t e r p r e t t h i s t a b l e .
c.
Payback Period Necessary t o J u s t i f y a Solar System:
Years
1 or less
2
4
6
8
10
SL OF
0
0
1
0
10
6
19 19
11
7
30 11
Number
Total
0
1
16
38
18
41
Percent
0.0
.8
12.2
29.0
13.7
31.3
Years
SL
12
2
14
2
16
0
18
0
20
3
Over 20* . 1
No Response 1
OF
3
1
0
0
1
0
3
Number
Total
5
3
0
0
4
1
4
Percent
3.8
2.3
0.0
0.0
3.1
.8
3.1
*A value of 25 was used f o r purposes of computing averages. Average
values were: t o t a l = 8 . 3 1 years; savings and l o a n - 8 . 7 1 y e a r s ;
other f i n a n c i e r s * ^ . 67 years.
62-322 O - 75 - 11
158
11.
Impact of Solar Systems ori S a l a b i l i t y and L o a n a b i l l t y :
a.
SL
G r e a t l y Enhance
7
Somewhat Enhance 33
Not A f f e c t
5
Somewhat Reduce 28
G r e a t l y Reduce
6
No Response
0
12.
Salability
Number
OF T o t a l
Percent
SL
b. L o a n a b i l l t y
Number
OF . T o t a l
Percent
4
21
6
15
4
2
3
32
22
17
4
1
0
20
14
13
2
3
11
54
11
43
10
2
8.4
41.2
8.4
32.8
7.6
1.5
2. 3
39.,7
27..5
22..9
4.• 6
3..1
3
52
36
30
6
4
Preference f o r Financing Solar Systems on New Homes
Number of Times Selected iis Highest Preference
Part of Mortgage Loan
Second Mortgage Loan
FHA Mortgage Loan
I n s t a l l m e n t Loan
Other Method S p e c i f i e d *
• SL
77
0
1
0
0
OF
50
0
0
1
0
Total
127
0
1
1
0
129
Percent
98.4
0.0
.8
.8
0.0
100.0
*Few respondents s p e c i f i e d other methods, none were dominant
frequency, and a l l were ranked low i n preference.
13.
in
Preference f o r D i r e c t i n g I n c e n t i v e s or Subsidies a t S p e c i f i c Groups:
Total
Sample
Preference
1 (highest)
2
3
4 (lowest)
Incomplete Response
Manufacturers
36.6%
15.3
20.6
15.3
12.2
Home
Builders
19.1%
41.2
19.8
4.6
15.3
Financing
Institutions
3. 8%
6.,9
19,.1
52..7
17,,6
Purchasers
35..1%
19..8
24..4
11..5
9.,2
Number of Times Selected as Highest Preference
Manufacturers
Home B u i l d e r s
Financing I n s t i t u t i o n s
Purchasers
SL
30
17
3
27
OF
18
8
2
19
Total
48
25
5
46
124
Percent
38.7
20.2
4.0
37.1
100.0
159
1 A.
Degree of Importance of Subsidy and Incentive Methods f o r S t i m u l a t i n g Solar
Knergy D i f f u s i o n :
Little
Importance
a.
Federal government grants
to manufacturers t o
encourage R&D i n s o l a r
energy systems
4.6%
8.4
24.4
34.4
29.0
3.8
and c r e d i t s t o purchasers
of homes w i t h s o l a r energy
systems
23.7
22.1
26.0
22.9
5.3
Federal income t a x c r e d i t s
and/or deductions t o
purchasers of homes w i t h
s o l a r energy systems
18.3
32.1
32.1
14.5
3.1
Government ownership of
solar production
facilities
74.8
16.0
1.5
3.1
4.6
Government-backed product
warranty insurance
29.8
32.8
20.6
14.5
2.3
J o i n t industry/governmentfunded programs
23.7
38.2
24.4
9.9
3.8
I n c l u d e s o l a r energy
i n s t a l l a t i o n s under FHA
T i t l e 1 mortgage loans
20.6
36.6
26.0
13.7
3.1
30.5
21.4 _
22.1
19.1
6.9
Property
f.
g.
h.
i.
No
Response
18.3%
c.
e.
Great
Importance
24.4%
Tax w r i t e - o f f s t o
manufacturers t o encourage
R&D i n s o l a r energy
systems
d.
Much
Importance
35.9%
b.
tax
16.8%
Some
Importance
exemptions
Provide lower i n t e r e s t
cost loans ( r e l a t i v e t o
the going r a t e on homes
using conventional HVAC
systems) t o purchasers of
new homes w i t h s o l a r energy
systems:
1.
Below-market i n t e r e s t
r a t e s on the t o t a l
mortgage
160
14.
(continued)
LLttlc
Importance
2. Be low-market i n t e r e s t
r a t e s only on the
s o l a r component
j.
k.
Some
Importance
Much
Importance
Great
Importance
No
Response
41.2
29.8
18.3
4.6
6.1
1. Provide below-marketr a t e funds t o
i n s t i t u t i o n s making
loans on homes w i t h
s o l a r energy systems
32.1
22.9
21.4
18.3
5.3
2. Provide home mortgage
purchase commitments
t o lenders making
mortgage loans on
homes w i t h s o l a r
energy systems
18.3
28.2
24.4
24.4
4.6
Federal government
s u b s i d i z a t i o n o f home
b u i l d e r s through the
a b s o r p t i o n of s o l a r
energy system costs
37.4
23.7
23.7
9.9
5.3
Involvement by the
Federal Home Loan Bank
Board and other governmental agencies:
Averages and Standard Deviations ( i n parentheses) f o r Each I n c e n t i v e o r Subsidy
(Degree o f Importance: L i t t l e - 1 ; Some»2; Much»3; Great»4)
a.
b.
c.
d.
e.
f.
g-
SL
2.38
(1.00)
2.95
(.94)
2.47
(1.14)
2.32
(.93)
1.29
(.67)
2.14
(1.05)
2.12
(.94)
OF
2.61
(.98)
2.75
(.96)
2.57
(1.08)
2.65
(1.00)
1.31
(.66)
2.31
(1.03)
2.38
(.91)
Total
2.46
(1.00)
2.87
(.95)
2.51
(1.12)
2.44
(.97)
1.30
(.66)
2.20
(1.04)
2.21
(.93)
h.
i.
(1)
i.
(2)
j.
(1)
j.
(2)
k.
SL
OF
2.32
2.38
(1.01)
(.91)
2.30
2.36
(1.14) (1.15)
1.86
1.84
(.92)
(.88)
. 2.24
2.33
(1.11) (1.18)
2.45
2.79
(.98)
(1.11)
2.00
2.17
(1.02) (1.06)
Total
2.34
(.97)
2.32
(1.14)
1.85
(.90)
2.27
(1.13)
2.58
(1.07)
2.07
(1.03)
161
APPENDIX A.
CLASSIFICATION OF STATES BY GEOGRAPHIC REGION
Northeast
1. Connecticut
2. Maine
3* Massachusetts
A. New Hampshire
5. New Jersey
6. New York
7. Pennsylvania
8. Rhode I s l a n d
9. Vermont
South
1. Alabama
2. Arkansas
3. Delaware
A. ( D i s t r i c t of Columbia)
5. F l o r i d a
6. Georgia
7. Kentucky
8. Louisiana
9. Maryland
10. M i s s i s s i p p i
11. North C a r o l i n a
12. South C a r o l i n a
13. Tennessee
1A. V i r g i n i a
15. West V i r g i n i a
Midwest or North Central
1. I l l i n o i s
2. Indiana
3. Iowa
A. Kansas
5. Michigan
6. Minnesota
7. Missouri
8. Nebraska
. 9. North Dakota
10. Ohio
11. South Dakota
12. Wisconsin
West
1.
2.
3.
A.
5.
6.
7.
8.
9.
10.
11.
12.
13.
1A.
15.
( I n c l u d i n g Southwest)
Arizona
California
Colorado
Idaho
Montana
Nevada
New Mexico
Oklahoma
Oregon
Texas
Utah
Washington
Wyoming
Alaska
Hawaii
162
APPENDIX 5.
Questionnaire
Question
Number
QUESTIONNAIRE RESULTS BY GEOGRAPHIC REGION
Average of Responses*
Northeast South Midwest West
F-Ratio
Level of
Significance
7a.
b.
c.
d.
e.
f.
gh.
3.02
2.88
3.03
2.85
3.65
2.76
3.56
3.26
2.89
2.69
3.00
2.47
3.61
2.41
3.05
2.70
3.08
3.03
3.06
2.78
3.56
2.58
3/28
2.89
3.15
2.95
3.25
3.15
3.75
2.85
3.55
2.75
.547
.901
.501
2.335
.460
1.091
2.512
1.583
.651
.443
.683
.077
.710
.356
.062
.197
8a.
b.
c.
d.
e.
f.
gh.
i.
2.97
3.15
2.97
2.82
3.21
2.62
2.55
2.74
2.77
2.70
3.16
2.84
2.86
3.11
2.70
2.27
2.59
2.56
2.69
3.31
2.92
3.19
3.17
2.54
2.61
2.77
2.56
2.90
3.52
3.10
3.29
3.38
3.05
2.45
3.05
2.74
.797
1.596
.440
2.855
'.611
1.972
.981
1.166
.475
.498
.194
.725
.040
.609
.122
.404
.325
.700
14a.
b.
c.
d.
e.
f.
g.
h.
i.
i.
J.
j.
k.
2.61
2.90
2.52
2.32
1.19
2.19
2.24
2.16
2.03
1.93
2.33
2.55
2.13
2.38
2.84
2.36
2.57
1.42
2.38
2.25
2.30
2.51
2.03
2.33
2.56
2.11
2.41
2.82
2.74
2.26
1.29
2.00
2.30
2.35
2.29
1.62
2.09
2.47
2.09
2.35
2.95
2.40
2.71
1.30
2.24
2.05
2.62
2.33
1.81
2.24
2.67
1.76
.423
.102
.722
1.339
.666
.802
.338
.969
.943
1.285
.353
.143
.653
.737
.959
.541
.265
.575
.495
.798
.410
.422
.283
.787
.934
.583
(1)
(2)
(1)
(2)
*Responses could range from 1 ( l i t t l e concern or importance) t o 4
( g r e a t concern or importance). The F - r a t i o t e s t s f o r p o s s i b l e
s i g n i f i c a n t d i f f e r e n c e s i n mean across the four geographic r e g i o n s .
No v a r i a b l e was s i g n i f i c a n t at the .01 l e v e l .
M A T E R I A L S U B M I T T E D F O R T H E R E C O R D B Y C. A.
M O R R I S O N , D I R E C T O R O F R E S E A R C H , SOLAR ENERGY CONVERSION LABORATORY, U N I V E R S I T Y OF
F L O R I D A , G A I N E S V I L L E , FLA., R E F E R R E D T O I N H I S
PREPARED STATEMENT FOLLOWS
SOLAR ENERGY CONVERSION RESEARCH & DEVELOPMENT
AT THE UNIVERSITY OF FLORIDA
DR. ERICH A. FARBER, Professor & Research Professor of Mechanical Engineering and
Director, Solar Energy & Energy Conversion Laboratory, University of Florida, Gainesville, FL 3 2 6 0 1
W i d e s p r e a d concern with our
energy situation and crisis, and
what meeting the ever increasing
demand of this energy does to the
environment through pollution,
prompted the writing of this paper.
I t presents the over-all activities of
the Solar Energy & Energy Conversion Laboratory of the University of Florida rather than the
technical details of one particular
investigation.
The laboratory has looked into
old methods of converting solar
energy into the forms of energy
needed, has used the present state
of the art, and has pioneered in
many areas of solar energy utilization.
I t is obvious from all surveys
and reports that we are using our
fossil fuels at a tremendous and
ever increasing rate so that in the
not too distant future these supplies of energy, so vital to our
present growth of civilization, will
be depleted. For this reason it is of
utmost importance that we look for
other more permanent sources of
energy and learn to use them
before the dire need arises. Solar
energy is readily available, well
distributed, inexhaustible for all
practical purposes, and has no
pollution effects upon the environment when converted and utilized.
Our present usage of energy can
be compared to a family or group
living off their savings, stored in a
bank, and being steadily depleted.
This process cannot go on very
long unless some "income" is
added to the savings.
In the field of energy, the most
abundant "income" is solar energy.
This incoming energy was, usually
in very in-efficient processes and
over millions of years, converted
into our fossil fuels. With these
savings rapidly disappearing, we
will have to learn to use this income directly in the form of radiant energy, by converting it into
the forms of energy needed.
This conversion from solar energy into the desired forms should
be done in the fewest possible steps
and along the most direct route.
This procedure will insure the
most efficient way of doing this
and will keep the equipment necessary simplest.
Solar energy has certain characteristics. It is intermittent, only
available during the day in a particular location on the surface of
the earth. In spectral character it
approximates a black body source of
about 10,000F, modified by gaseous
layers of both the sun and the
earth's atmosphere.
I t arrives on the surface of the
earth both as direct radiation and
diffuse radiation. The former portion can be concentrated if it is desirable.
A knowledge of the specific
properties of materials under solar
irradiation Will then allow the
collection and/or concentration and
absorption of this energy.
I f night time operation or operation during bad weather conditions is
necessary or desirable, storage has to
be provided. For many applications
this is not necessary- The energy
could be stored in a conventional
manner as p o t e n t i a l energy
(pumped water, etc.), as heat in
hot water storage tanks or rock
bins, as chemical energy utilizing
chemical processes, latent heat or
heat of fusion, etc.
In other words, the technology
has been developed to convert and
utilize solar energy. The economics
and sociological acceptance has
still to be worked out in many
cases. These problems vary from
region to region and therefore take
on a local character to be worked
out by the potential users.
To be most effective, local materials should be used in fabricating
by local methods and labor fitting
the economics and habits of the
local civilization.
With this introduction of a general nature the paper will now go
into some of the work done by one
group. The best way to do this is to
take you on a tour through the
Solar Energy Laboratory of the
University of Florida in the United
States of America.
UF Solar Energy Laboratory
The University of Florida Solar
Energy Laboratory is one of the
largest laboratories of this kind
and a tour through it will give an
idea what such laboratories look
like and the kind of work which is
carried out in them. The work
carried out at this laboratory is
supported by work and persons all
over the world and proper credit
should be given to them. Fig. 1
presents the entrance, within the
gate to the laboratory and two of
the four buildings.
Stepping around these two
buildings one can see some of the
equipment of the laboratory which
will be discussed in more detail in
the paper and the following illustrations. Fig. 2 shows this equipment with engines of various types
in the foreground, behind them
collectors and concentrators of
various types. On the left of the
picture are a small solar air-conditioning system and two solar water
heaters, a solar still and parabolic
concentrators. Also visible are a
solar power plant, a solar still, the
solar furnace and solar calorimeter
to investigate the solar properties
of materials. In the background,
partially visible, is a 5 ton solar
air-conditioning piece of equipment.
Solar Properties
The first step in utilizing solar
energy is to find materials which
will withstand the exposure necessary in the equipment to be built.
To do this we take some of these
materials and expose them under
rather realistic operating conditions to the weather and the sun.
Fig. 3 shows different plastics exposed to the
environment,
stretched over cans which are
filled with water or sand or wet
soil, etc. I f these materials deteriorate after a short time the investigation is terminated.
Those materials which, however,
withstood this exposure test satisfactorily are then investigated in
our Solar Calorimeter as to their
reflection, absorption and transmission characteristics under actual solar irradiation.
The Solar Calorimeter, Fig. 4,
can be oriented into any desired
position; it can be made to follow
the sun; it can simulate severe
winter conditions or extreme
summer environments. I t is further
instrumented with many, many
thermocouples to be able to obtain
complete heat balances. This instrument, the only one of its kind,
is constantly used to investigate
new types of materials such as
R E P R I N T E D F R O M F E B R U A R Y / M A R C H ISSUE. B U I L D I N G SYSTEMS DESIGN,
®1974 PRESSTECH DESIGN, INC., B R O O K L Y N , N.Y. 11201
166
Fig. 1. Entrance to the University of Florida — Soiar Energy Laboratory.
Fig. 3. Exposure test of some plastic
films.
Fig. 4. The solar calorimeter.
Fig. 7. Solar water heaters in apartment
house.
Fig. 5. Experimental flat plate collectors.
Fig. 8. Swimming pool soiar heater.
167
glasses w i t h t i n t i n g or coatings,
laminated glasses and plastic m a terials, Venetian blinds, Thermopane windows, plastic bubbles
for aircraft, fabric used for clothing, curtains and draperies, water
cooled Venetian blinds, etc.
With the properties determined,
a selection can be made to obtain
the best results in any desired
application.
Solar Water Heating
I n Fig, 5, five different flat plate
collectors used for water heating
are presented. They consist of a
box with glass or plastic covers
Fig. 14. 5-ton solar air conditioning system.
Fig. 11. Small solar still.
Fig. 15. Small
system, front.
solar
refrigeration
Fig. 16. Smalt solar refrigeration
systems, back.
168
(one or more) w i t h a metallic absorber element inside, which contains the water. This water is
circulated to the small water
storage tanks shown above. These
absorbers can be compared w i t h
each other when exposed to the
sun under identical conditions and
for the same length of time.
Some of the absorbers have
copper plates w i t h copper tubes
soldered into them, others are two
flat plates riveted, crimped or
welded together. The most efficient
unit found consisted of two thin
flat copper plates fastened together
on the edges and providing a water
space of about V4 inch, with one
glass cover and one inch of styrofoam insulation behind the plates.
No plastic materials were found to
be as good as glass since none of
the ones we could find had the
characteristics of glass, namely letting through the short wave radiation but not the long wave radiation. This characteristic of glass
allows it to be used in the design of
a solar trap.
Fig. 6 presents a typical Florida
solar water heater. I t consists of a
sheet metal box, 4 feet by 12 feet,
covered by a layer of glass. Inside
the box is a copper sheet w i t h
copper tubes soldered to it in
sinusoidal configuration and connected to an 80 gal. water storage
tank. This system, rather common,
is found satisfactory for a typical
American family of 4 w i t h automatic washing machine, etc. Under
the copper sheet is one inch of
styrofoam insulation. For satisfactory operation the bottom of the hot
water storage tank must be above
the top of the absorber to provide
circulation without a pump.
Fig. 7 shows actual installations
of this type in an apartment house
in Florida w i t h each apartment
having its own unit to provide the
needed hot water.
These standard units may be
damaged if used in freezing temperatures and for this reason we
developed a d u a l
circulation
system which eliminates this
problem. I t consists of two tanks,
one inside the other. The outer
tank, being connected to the collector, is filled w i t h an antifreeze
solution. The heat is then transferred from this solution through
the w a l l of the inner tank to the
water to be used. Since in this
system t h e p r i m a r y
circuit
operates at atmospheric conditions
(the outer tank needs only a lid on
i t ) the collector can be constructed
much cheaper and lighter. For example, it may be patterned after
the most efficient design men-
tioned earlier. Insulation
the outside tank.
covers
Swimming Pool Heating
Another type of heater which
has interested many people in
Florida is a swimming pool heater
as shown in Fig. 8. I t is one of the
simplest ones and least expensive.
I t consists of a galvanized sheet,
wrapped into plastic. The sheet is
painted black ( f l a t ) like all the
other absorbers. Water from the
pool can be fed to these absorbers
by the filter pump and then
allowed to run down the front and
back of the metal plate and drain
back into the pool. I t usually takes
a collecting surface equal to the
pool surface for raising the water
temperature in the pool 10 degrees
F. These absorbers can be constructed to form the fence around
the pool which in many localities is
required by law, and in addition
can provide privacy.
House Heating
I f the objective is to heat a house
rather than water, it can be done
by hot water circulated through
baseboard pipes in a conventional
hot water heating system. H o w ever, it is frequently more convenient or desirable to heat a building by hot air. Fig. 9 shows such an
air heater, made up of overlapping
aluminum plates, painted black on
the portion exposed to the sun.
About % of each plate is showing,
the other % shaded by the plate
above. They are put into a glass
covered box. The air w i l l enter this
unit on the bottom and then,
streaming between the hot plates,
w i l l pick up the heat and leave on
top as hot air. The circulation can
be produced either by free (or n a t u r a l ) circulation or by a fan.
A l l the above mentioned collectors Eire ideally facing South and
inclined w i t h the horizontal at an
angle equal to the local geographic
latitude plus 10 degrees. This gives
a little higher collection efficiency
during the winter when the days
are shorter.
The air heater could be designed
to form the wall of a building, let
us say the East w a l l where it could
produce hot air the first thing in
the morning to take the chill out of
the building the first part of the
day.
every 15 minutes) reorientation,
due to the movement of the sun, is
required. Flaps can be added as
shown in Fig. 25 to provide some
degree of concentration and thus
bringing the things to be cooked up
to temperature quicker. V e r y little
heat is actually required for the
cooking process, only a certain
t e m p e r a t u r e for the required
length of time. I f one of these ovens
is to be used in the late afternoon
or early evening, the walls could
be made thick, of clay or other m a terials which can store appreciable
amounts of heat and thus remain
w a r m long after the sun has gone
down.
Solar Distillation
One of the major problems in
many parts of the world is the lack
of fresh water. Solar energy can,
with very simple equipment, convert salt or brackish water into
fresh and pure water. Fig. 11
shows a simple solar still, a metal
box w i t h slanting glass facing
South. Inside the box is a pan on
short legs, painted black and holding the bad water. The sun shining
into this pan heats the water in the
pan and vaporizes it. The vapor or
steam then will, when coming in
contact with the cold surfaces of
the box, both the glass and the
metal, condense, forming the fresh
which runs down the sides in the
form of droplets. This fresh water
can then be collected for future
use. About Vz lb. of water can be
produced at an average per square
foot per day.
Another larger still is shown in
Fig. 12. The pan is covered by glass
at about 45 degrees which forms
most of the condensing surface.
Glass is much better than plastic
since it forms film condensation,
letting the solar energy through
without much difficulty. Plastics in
general produce dropwise condensation, each droplet forming a little
crystal which reflects much of the
incident solar energy. This larger
still is also designed to be able to
collect rain water and, in some
areas such as Florida, this can
double the output of the still.
The best orientation of the still
depends somewhat upon the angles
of the glass but is generally EastWest or somewhat N E - S W .
Solar Refrigeration and A/C
Solar Baking
Another application can be a
solar oven, Fig. 10, essentially a
glass covered box facing into the
sun. Cooking and baking temperatures can easily be reached w i t h
such a device. Periodic (about
Another phase of our work is the
use of solar energy for solar refrigeration and air-conditioning. A t a
number of international meetings
it was pointed out that famine
could be prevented in much of the
world if the food which is raised
169
during certain parts of the year
could be preserved from spoilage,
and thus preserved for use during
the rest of the year. This requires
refrigeration and for remote areas,
or areas without electricity, solar
refrigeration may well be the answer.
Some of our early work along
these lines was to heat oil to rather
high temperatures by concentrating solar energy and then
circulating the hot oil around the
generator of an ammonia absorption refrigeration system, Fig. 13.
This picture is somewhat out of
order since all the applications
thus far dealt w i t h solar energy in
its natural state without concentration but it was put in here since
it was actually our first attempt.
We believe, however, that solar r e frigeration without concentration
holds much more promise since
nonconcentrating devices can also
utilize the diffuse portion of solar
radiation, thus function even on
cloudy days.
A number of small units were
built before the 5-ton unit shown
in Fig. 14. Flat plate collectors
heat water which is then circulated to drive out the . ammonia
from the water in the generator
of the system. This ammonia vapor
is condensed and then expanded,
providing the cooling effect by
evaporation. After having done its
work the ammonia vapor is reabsorbed, in the ammonia absorber of
the system, into the water to
repeat the cycle.
Figs. 15 and 16 show a smaller
version of such a system with some
improvements. The main one, combining the solar collector and the
ammonia generator into one unit,
eliminates the primary fluid and
reduces the heat losses by providing a more direct path for the
solar heat to get into the system
and do its work. This small 4 x 4
foot unit can produce 80 lb. of ice
on a good day.
I t should be pointed out again
that all the applications mentioned
so far did not require concentration of solar energy, and therefore
could utilize the diffuse portion of
solar energy and work even on
cloudy days.
The solar air-conditioning or refrigeration systems have an added
advantage, that the demand and
supply are in phase. When the sun
shines hottest the need for refrigeration and air-conditioning is
greatest.
Solar Energy Concentration
For some uses, however, higher
temperatures than can be obtained
with flat plate, non-concentrating
collectors, are needed. I f this is the
case, then concentration is called
for. Many different methods can be
used for concentration, the simplest ones stationary in design but
not as good, and the better ones
requiring methods which allow
them to follow the sun. Fig. 17
shows a simple high temperature
absorber. I t consists of a number of
parabolic troughs oriented horizontally and with a pipe running
down the focal line of the parabolas. The system of parabolic
troughs is inclined at about the
local latitude. Depending upon the
diameter of the pipe, adjustment
may or may not be needed during
the year. The solar energy is
reflected by the parabolic surfaces
upon the focal pipe which, painted
with a good absorbing paint (flat
black), absorbs this energy and
transmits it to the fluid inside the
pipe. This device can easily produce hot water, steam or hot oil.
Some energy is lost during the
early morning and the late afternoon hours w i t h the above method
of converting solar energy to heat
because of shading, but the simplicity and stationary design have
considerable advantages, both economically and because the units do
not need much attention.
Solar Power Plant
I f better efficiency is desired,
then cylindrical parabolas can be
used which are allowed to follow
the sun. I n the simplest form they
can be made as shown in Fig. 18, a
single parabola w i t h a pipe at the
focal line. This particular absorber
is used to produce steam to operate
a small steam engine, which in
turn drives a small generator and
lights up a light bulb, thus demonstrating what a solar power plant
could look like. The 2 x 5 foot absorber is the equivalent of 500
watts of electrical heat.
A large cylindrical parabolic absorber is shown in Fig. 19 having
dimensions of 6 x 8 feet with a
glass covered focal tube. The glass
cover reduces the losses from the
heated tube. Depending upon the
needs, different diameter tubes can
be used. Copper has been found
best, again painted w i t h a good absorbing high temperature paint.
This absorber is mounted on a rotating axis parallel to the earth's
axis. I t is adjusted to face East in
the morning and then, by an electrically driven worm gear reduction unit, is made to follow the sun
all day. Where electricity is not
available, a heavy weight w i t h a
clock work timing unit can be used
as well. The construcion of such a
large device must be rather rigid
since wind loads in windy areas
may make it difficult to keep the
unit directly facing the sun and to
keep it from oscillating.
This unit has been used to
produce steam for the operation of
a fractional horsepower steam engine, to provide 8 OOF oil to operate
a solar refrigerator, etc.
Other methods of concentrating
solar energy are lenses both of
glass and other materials ( i n cluding liquid lenses), but they are
not widely used because of their
cost in large sizes and their weight.
However Fresnel lenses, specially
made from plastic sheets, w i t h
grooves cut or embossed so as to
focus the rays, can be produced
rather inexpensively, are unbreakable, and can be of large size and
light weight. The lens shown in
Fig. 20 is of this type and can
produce a temperature of 2000F.
A very effective way of concentrating solar energy is to take flat
pieces of reflecting materials (for
better results they can even be
slightly curved) such as mirrors or
reflecting metal surfaces, and
orient them in such manner as to
reflect the solar radiation on one
spot. F r o n t surface reflecting
mirrors Eire giving better performance than, for instance, back silvered mirrors where some of the
energy is absorbed in the glass.
V e r y large concentrators of this
type have been built with thousands of these mirrors used in some
of the large solar furnaces in the
world.
Solar Cooking
A few concentrating panels of
this type are shown in Fig. 21,
where three of them concentrated
upon a board will make this board
flash into fire. Such mirrors can
also be set up in a different pattern
like the one shown in Fig. 22 where
the mirrors are set up into a
circular pattern, heating the fluid
in the jar at the focal region of the
device.
I f higher concentration, and thus
higher temperatures, and smaller
focal regions are desired, then either small mirrors are needed or
continuously curved surfaces can
be employed. I n this manner excellent concentrating mirrors even
of optical quality can be made but
they are very expensive and there
is a practical limit to the size of
these configuratiohs.
Two such mirrors of fair quality
are shown in Fig. 23, the one on the
left being strong enough to hold its
shape by being properly formed,
the one on the right being sup-
170
171
ported by ribs from wood in this
case which are cut out forming parabolas. Then thin, highly reflecting metal sheets are held
loosely to these ribs to allow for
expansion when the metal sheets
are slightly heated, thus avoiding
distortion. This type of construction is especially important in
large sizes. This type of construction was also used in the large parabolic cylindrical concentrator
mentioned earlier.
The two concentrators of Fig. 23
were used as solar cookers where
only a moderate amount of concentration is needed and too good a
concentrator may burn holes into
the containers used if great care is
not taken. So, not-too-good quality
is more desirable for this application.
I f such concentrators are used
for solar cooking, it may be desirable to design them for easy portability, thus either in sections which
can be collapsed for moving, or of
coated cloths of an umbrella design
which can be folded when not in
use. This type is shown in Fig. 24.
An oven and a cooker of moderate concentration are shown in Fig.
25. The flaps on the oven can be
adjusted to regulate the degree of
concentration needed. A n oven of
this design w i l l shorten the
cooking and baking time by bringing the food up to the desired temperature faster than the type mentioned earlier.
Higher concentrations than the
surfaces previously discussed can
provide is needed for high temperature work, solar engines, etc. For
this purpose, the geometry has to
be more perfect. Fig. 26 shows
such a mirror of rather high
quality giving high degrees of concentration, w i t h the
ultimate
reached in the solar furnace, Fig.
27.
Solar Furnace
This solar furnace, with a 5 foot
diameter mirror, can produce concentration ratios of almost 25,000
and temperatures of up to 7000 F.
Solar furnaces can be used for
research where, high temperatures
and extremely pure, uncontaminated heat is needed. Materials
can be enclosed in glass containers
or plastic containers, surrounded
by vacuum or any desired atmosphere and heated under very
closely controlled conditions. Since
the solar energy can be concentrated onto a very small region it is
not necessary for the support of the
sample to be able to withstand
very high temperatures nor is it
necessary for the glass or plastic
container to be high-temperature
resistent since the energy as it goes
through this material is not yet
concentrated to a high degree. See
Fig. 28.
The furnace has been used to
produce extremely high purity
materials, to grow crystals of high
temperature materials, Fig. 29,
crystals non-existing in nature, to
extract water from rocks and
moisture-containing soils (work
which may be of great importance
when a Lunar station is going to be
set up since many experts believe
that the solar furnace w i l l be an
important tool on the moon), and it
may be possible to produce materials on location instead of hauling
them from the earth to the moon.
We received a citation from the A i r
Force for this work, etc.
Mechanical Power
One of the largest programs in
our laboratory is the conversion of
solar energy into mechanical power. This is done by steam engines
(one of them shown in Fig. 30)
supplied with steam from the large
cylindrical parabolic concentrator,
Fig. 31. The combination shown
w i l l give about one quarter horse
power, limited only by the concentrator and quantity of steam delivered by it.
A working model of a steam
power plant is shown in Fig. 32,
with the absorber and boiler
shown from the front in Fig. 18,
and the engine driving a generator
and lighting up a small light bulb.
The steam engine with a different
type of absorber is also shown in
Fig. 33. The small square boiler in
this case must be used with the
concentrators shown in Fig. 21.
Other combinations and designs
are possible and w i l l work equally
well, if designed properly.
We believe, however, that hot
air engines have a much greater
promise than steam engines for
fractional horsepower
requirements. They are safer, quiet and
need only a source of heat, any
source. These engines can be
operated off solar energy during
the day and, if power is needed
during the night, by other sources
of heat such as wood, coal, oil; or
they can be operated by the heat
produced from the burning of
waste products such as trash, cow
dung, etc.
Closed Cycle Hot Air Engines
There are two basic types of hot
air engines. The closed cycle type
encloses a certain amount of air
which can be pushed back and
forth by a plunger between hot and
cold surfaces. When the air is in
contact with the hot surfaces it is
heated and thus increases the pressure in the engine and when in
contact with the cold surfaces it is
cooled, thus decreasing the pressure in the engine. A power piston
is pushed down when the pressure
in the engine is high and returns
due to flywheel action when the
pressure is low. So every down
stroke is a power stroke. With
proper timing of the power piston
and the plunger,
considerable
amounts of energy can be produced.
These engines are inherrently
slow-speed engines — a few
hundred revolutions per minute —
since it takes time to heat and cool
the air. The heat transfer can be
improved by either pressurizing
the engine or filling it with gases
such as hydrogen or helium. Also, a
large surface regenerator w i l l increase the performance of such engines but they become more complicated and much more expensive
by such additions and refinements.
Fig. 34 shows a quarter horsepower engine with the displacer
cylinder in horizontal positibn on
top and the power cylinder directly underneath in vertical position.
The blackened end of the displacement cylinder is heated and the
other end cooled, in this case by a
water jacket. Fig. 35 shows such an
engine dis-assembled. The basic
unit for this engine is a lawn
mower engine but the engine itself
is much simpler and less expensive
since it does not require any
valves, carburator or electrical
system.
Another engine is shown in Fig.
36 in operation with a radiation
shield around the hot end of the
displacer cylinder. The concentrated solar energy can clearly be
seen heating the end of the displacement cylinder. A five foot
mirror is used with this engine
which has to be moved about every
15 minutes to keep the energy concentrated on the engine. This
movement is rather small and
could be automated. Enough heat
capacity is built into this engine so
that if small clouds pass over the
sun the engine w i l l operate
through the short intervals of
shading.
These engines are not self
starting and, after the engine surfaces are heated, must be given a
push but will then take off on their
own. This should be no handicap if
compared with the attention a
team of bullocks requires. A single
man can operate a bank of these
s m a l l engines, adjusting
the
mirrors periodically. I n addition,
172
no further land is needed as in the
case when animals are used to raise
the food they need.
Fig. 37 shows another one of the
closed cycle hot air engines in
operation and in Fig. 38 it is
pumping water out of a ditch. The
mirror shown with this engine is
actually much better than needed
but was used since it was available.
I t is an old mirror from the solar
furnace which has been polished so
many times that the reflecting surface is no longer very good. For engine operation the concentrator
only has to be good enough to
provide a spot of concentration of
the size of the displacement cylinder of the engine, about 3 % inches
in diameter for the engine shown.
A Vz horsepower engine, closed
cycle, is shown in Fig. 39, which is
designed to be used with solar
energy and can be used directly
w i t h o u t modification to burn
wood, coal, or liquid fuels. I f used
w i t h solar energy it is only necessary to open the big door shown
and to concentrate the solar energy
upon the end of the displacer cylinder inside the furnace box.
Open Cycle Hot Air Engines
The other type of hot air engine,
the open cycle type, takes atmospheric air, compresses it, then
heats it again by solar energy or
other means and then expands the
air and exhausts it into the open.
These engines have the advantage that the heating of the air and
the speed of the engine are independent and so these engines can
be made to run at much higher
speed. This higher speed makes it
possible to reduce the weight per
unit power output but the engines
so far built by us do not have as
high conversion efficiency as the
closed cycle engines. Fig. 40 shows
one of these engines.
Both these types of hot air engines, but especially the closed
cycle type, can be built without
special equipment and w i t h only
the simplest types of machine tools.
The timing for best performance is
rather critical and should be adjusted carefully. Another critical
parameter of the closed cycle engine is the clearance volume.
Our work was concentrated on
fractional horsepower engines of
the portable type which could be
used for irrigation or to drive small
machinery.
Solar Pump
There are other solar devices
which can convert solar energy
into mechanical energy but they
are of less importance.
Fig. 41 shows a solar pump
model, in this case made out of
glass so that its operation can be
observed. I t has only two check
valves and otherwise no moving
parts. A boiler is connected by a
straight and a U-shaped tube to a
chamber w i t h check valves at the
inlet and outlet. The liquid in the
boiler is vaporized, pushing liquid
out of the system and, when the
vapor reaches the bottom of the U
tube, it suddenly streams into the
other chamber filled w i t h cold l i q uid where the steam rapidly condenses. While the steam is produced, the top check valve is open
and liquid is pushed out. When the
vapor condenses, the top check
valve closes due to the vacuum
produced and the bottom check
valve opens, letting in more new
liquid to be transported. This pulsating action can be smoothed into
steady flow if an air chamber is
provided past the top check valve.
Solar Turbine
Another method of converting
solar energy into mechanical energy is by means of a turbine, a
model of which is shown in Fig. 42
A vertical chamber with a turbine
wheel in it is filled w i t h a volatile
liquid to just above the turbine
wheel. The collecting surface has a
cover with a small hole in the
bottom of the chamber. The liquid
w i l l drain through this hole into
the space below, w i l l come in contact w i t h the hot surface below and
vaporize. The vapor w i l l stream
upward, forming a jet which, in
turn, drives the turbine wheel.
When leaving the turbine wheel it
will come in contact with the cold
surfaces of the upper part of the
vertical chamber and condense,
running down the walls and repeating the cycle.
For some applications it is more
convenient to separate the steam
generator from the turbine and the
condenser.
Solar-Gravity Motor
Shifting of weights from one side
to the other on a wheel or seesaw
can do work. Fig. 42 shows a motor
where a number of spheres, two at
a time, are connected by tube and
mounted on a wheel. The sun
shining on one side w i l l vaporize
the liquid and the vapor streaming
to the other side w i l l condense. I f
properly designed, continuous motion can be obtained which can be
used to pump water or do other
useful work. The conversion efficiency and power output are
rather small but may be sufficient
for certain tasks.
Solar Reciprocating Engine
Fig. 44 shows another device for
the conversion of solar energy into
mechanical energy. I t consists essentially of a column of water w i t h
bellows at-the top. The system is
completely purged of air. The end
of the tube is heated by concentrating solar energy upon it or any
other concentrated source of heat.
This w i l l vaporize ttyp water on the
end of the tube and force the column of water to the right, as
shown in the picture. W i t h vapor
now in contact w i t h the hot surface, the heat transfer is suddenly
decreased tremendously and so the
cooling effects are now greater
than the heating and the vapor
condenses, letting the column of
water return to the left until it
touches the hot end and the cycle
repeats. Cooling of the lower end of
the column of water w i l l improve
the performance. The moving column w i l l make the end of the
bellows move back and forth. This
reciprocating motion can be coupled to a flywheel and transformed
into rotary motion. This very
simple little device is quite noisy,
sounding like a small gasoline engine and can, by adjusting the
pressure on the end of the bellows
be made to run at different speeds,
several hundred cycles per minute
if desired.
Conversion to Electricity
I f electricity is desired as the
form of energy to be used it can be
produced by converting solar energy into mechanical energy and
then driving a conventional electric generator. More conveniently,
the solar energy can be converted
directly into electricity by one of
the many solid state devices normally referred to as solar cells.
Through the space program, great
strides have been made in the photogalvanic conversion field u t i lizing silicon as the most common
material. Two photogalvanic converters are shown, Figs. 45 and 46.
Thermoelectric conversion has
also been investigated in our laboratory, using certain semiconductor materials as super thermocouples, as well as thermionic
conversion, but not a great deal of
effort was spent in these areas.
Sewage Treatment
Another project of interest is
application of solar energy to sewage treatment. One phase of this
work provided solar heating for
sewage digesters. By heating these
digesters and controlling the t e m perature for optimum efficiency,
considerably more sewage can be
173
Fig. 39. Va -horsepower closed cycle hot
air engine.
62-322 0-75-12
174
Fig. 40. Open «yeto hat air angina.
Fig. 47. Sewage digesters heated by seiar energy.
tit 43. Soier-gra^ty mum.
Fit. 44. Stttar Theraw-Phase Shift Reetpcecating Engine*
175
handled by a given size plant.
Many plants buy very expensive
covers and collect the sewage gas
and then burn it to heat the fluid in
the digesters. Many of these plants
even buy fuel and all this becomes
a very expensive operation. Solar
heating of these digesters proved
relatively inexpensive by being
able to use plastic sheets glued
together to form an air mattress
type cover floated on top of the
digester. This in many cases provided enough of a solar trap to
keep the digester at good operating
temperatures in our region. As a
matter of fact, one winter with
rather severe and prolonged
freezes, all the bacteria in the
unheated digesters died and action
stopped completely until they were
restocked. During this same period
the solar heated digesters survived
and the bacterial action, even
though slowed down during the
extreme cold spells, picked right
up again when the temperature of
the digesters increased. The basic
problem of heating here is the
same as for swimming pools.
If the digester is designed more
like a solar still, fresh water can be
produced by distillation in addition
to the digestion process, and the
remaining sludge used for fertilization.
Transportation
The Solar Energy and Energy
Conversion Laboratory has a
solar-electric car which one of the
staff members drives to work
regularly under high traffic density conditions to obtain operating
and performance data. This car,
Fig. 48, has both NiCd and Pb acid
batteries, Fig. 49. These batteries
can be charged by converting solar
energy either by solar cells or by a
solar engine-generator system. The
above with a 27 horsepower, 30 lb.
motor can propel the car at 65 mph
on a level road and gives it, under
proper driving conditions, a range
of over 100 miles. Special batteries
already developed could increase
the range fivefold.
If solar battery charging stations
were set up like our present gasoline stations, where run-down batteries could be exchanged for
charged ones, a truly energy-free
and non polluting transportation
system could be provided.
The Solar House
The University of Florida Solar
House, Figs. 50 and 51, was built
about 18 years ago to make it possible to put to use the devices and
systems developed in our Solar
Fig. 52. Solar heated swimming pool.
176
Energy and Energy Conversion
Laboratory. To form a data base
for comparison, the house was first
heated and cooled by a number of
conventional methods with all
modern conveniences provided. A
graduate student couple always
lived in the house so that all data
were taken under actual occupancy conditions. Then the
house was converted, step-by-step,
into a solar house. After some of
the equipment, such as the solar
water heater, was installed, great
interest was shown by visitors who
wanted to see everything. Therefore, it was decided to set the solar
equipment next to the house in
clear view rather than hide it on
the roof or underground, so that
everyone could see what it looks
like.
This house uses solar energy for
more things than any other house.
I t has its domestic hot water
provided by the sun, is heated by
the sun, has a solar heated swimming pool, Fig. 52, has some of its
liquid waste recycled to fresh
water by the sun, Fig. 53, has some
electricity generated by the sun to
operate some lights, television,
radio, and some small appliances,
Fig. 54, and has the solar electric
car. A n air-conditioning system,
similar to the ones designed, built
and tested in the laboratory, is
under construction to be put into
the house soon. A solar stove and
oven, looking somewhat like an
electric range, is under construction. I t will use hot oil in its coils
rather than electricity. This allows
cooking throughout the 24 hour
day. E v e n t u a l l y ,
all energy
requirements will be met by converting solar energy into the
various forms needed.
The study of all the systems
which have been and are used in
this house allows a realistic comparison of solar systems with conventional systems, on both technical and economic bases.
Conclusion
The above discussion with a
number of illustrations (we believe
that pictures can tell a story much
better) covers much of our work
but by no means all of it. I t
presents the range of activities in
our laboratory.
When solar energy utilization is
contemplated, its availability and
amount of supply, the requirements, the availability of materials
and labor, as well as the economic
considerations should be analyzed
on a regional or local basis since
large variations can occur from
Fig. 53. Liquid waste recycling system.
Fig. 54.
Solar to
electricity
conversion
unit.
place to place on a global scale. The
devices discussed and shown have
different degrees of applicability in
different areas.
As an example, we recommended that an A r m y Post in Chile
spread steel pipes on the sandy
ground and hook them together
into a number of parallel circuits to
provide the hot water they needed.
They had steel pipe, the labor and
the sandy land. To recommend to
them the Florida type solar water
heater would have been the wrong
thing to do since they did not have
copper sheets, copper pipes and hot
water storage tanks. Their problem
was solved with local materials,
under local conditions, and produced the desired results.
In closing I would say that solar
energy, its conversion and utilization, w i l l not solve all our
problems, but it will be a great
step in the right direction, by
supplying needed energy wherever
it can, without having adverse effects upon the environment and at
the same time conserving our fossil
fuels which can do much more for
us than provide heat. The chemicals they contain can be used as
preservatives, in medication, etc.,
so that the indiscriminate use of
these resources for energy is unwise and a serious loss to future
generations.
Acknowledgements
The Solar Energy and Energy
Conversion Laboratory of the University of Florida was used as the
basis for this paper but credit must
be given to the many laboratories
around the world and individuals
who are engaged in the effort to
utilize solar energy for the betterment of mankind. Their work supports ours through ideas and results as our work is helpful to
them.
Thanks must be given to the faculty, students and staff of our laboratory who have over the years
had an important part in advancing the state of the art of solar
energy utilization and who have
provided knowledge and results
for others to build on.
AAA
177
SOLAR WATER HEATING
Dr. E.A. Farber
D i r e c t o r , S o l a r Energy &
Energy Conversion L a b o r a t o r y
University of Florida
G a i n e s v i l l e , F l o r i d a 32611
W a t e r c a n be h e a t e d by s o l a r e n e r g y by many d i f f e r e n t m e t h o d s , v a r y i n g f r o m
t h e v e r y s i m p l e t o t h e v e r y s o p h i s t i c a t e d , e x p e n s i v e , b u t more e f f i c i e n t .
One o f t h e s i m p l e s t methods i s t o t a k e a t a n k and s e t i t i n t h e s u n , o r a
p i p e , o r a g a r d e n hose s p r e a d o u t on t h e g r o u n d w i t h t h e sun s h i n i n g on i t .
It
w i l l provide very hot water in a r e l a t i v e l y short time.
The more common method u s e d i n t h e U n i t e d S t a t e s i s a f l a t p l a t e c o l l e c t o r
w h i c h c o n s i s t s o f a box w h i c h can be e i t h e r wood o r m e t a l w i t h a m e t a l s h e e t
i n s i d e t o w h i c h t u b e s a r e s o l d e r e d i n s i n u s o i d a l a r r a n g e m e n t s spaced a b o u t f o u r
t o s i x i n c h e s a p a r t . The t u b e s a r e u s u a l l y f r o m
4 " t o 6" a p a r t . The t u b e s
a r e u s u a l l y f r o m 3 / 4 " t o 1" i n d i a m e t e r and t h e r e must be t h e r m a l c o n t a c t
between t h e p l a t e and t h e t u b e . T h i s i s i m p o r t a n t so t h a t t h e h e a t w h i c h i s
a b s o r b e d by t h e p l a t e can e a s i l y f l o w t o t h e t u b e and t h r o u g h t h e t u b e i n t o t h e
w a t e r . The t u b e - p l a t e a r r a n g e m e n t i s p a i n t e d w i t h a good a b s o r b i n g p a i n t ,
u s u a l l y commercial f l a t blacks a r e s a t i s f a c t o r y .
The t u b e - p l a t e a r r a n g e m e n t i s s u p p o r t e d by p o i n t s u p p o r t s t o r e d u c e t h e h e a t
l o s s e s and has e i t h e r a b o u t one i n c h a i r space b e t w e e n i t and t h e back o f t h e
box o r has one o r two i n c h e s o f i n s u l a t i o n i n t h e b o x .
The box i s c o v e r e d by one o r two l a y e r s o f g l a s s , d e p e n d i n g on w h e t h e r i t i s
used i n s o u t h e r n o r more n o r t h e r n c l i m a t e s .
I t i s important to reduce the heat
l o s s e s f u r t h e r n o r t h . T h e g l a s s s h o u l d be one w i t h l o w i r o n c o n t e n t w h i c h can
be d e t e r m i n e d by l o o k i n g a t t h e c u t t i n g edge w h i c h s h o u l d be c o l o r l e s s o r l i g h t
b l u i s h and n o t g r e e n w h i c h i n d i c a t e s h i g h i r o n c o n t e n t . P l a s t i c s h e e t s can be
used i n s t e a d o f g l a s s b u t do n o t have t h e t r a p p i n g p r o p e r t i e s o f g l a s s m e a n i n g
t h a t t h e s h o r t wave r a d i a t i o n f r o m t h e sun p e n e t r a t e s v e r y r e a d i l y w h i l e t h e l o n g
wave r a d i a t i o n g i v e n o f f by t h e h o t s u r f a c e s does n o t . A l s o , p l a s t i c s u s u a l l y
do n o t l a s t as l o n g due t o t h e u l t r a v i o l e t e f f e c t , t h e e l e v a t e d t e m p e r a t u r e
and t h e w i n d f l e x i n g .
I n c l i m a t e s w h e r e f r e e z i n g i s n o t a p r o b l e m , t h i s c o l l e c t o r c a n be c o u p l e d t o
t h e t a n k w h i c h c o n t a i n s t h e d o m e s t i c h o t w a t e r . I f t h e t a n k i s two f e e t o r more
above t h e c o l l e c t o r , f r e e c i r c u l a t i o n w i l l t a k e p l a c e and no pump i s r e q u i r e d .
I n many i n s t a n c e s w i t h t h e c o l l e c t o r on t h e r o o f , t h e w a t e r t a n k p r o t r u d e s
t h r o u g h t h e r o o f and i s c a m o u f l a g e d as a c h i m n e y . I f i t i s , h o w e v e r , d e s i r a b l e
t o have t h e t a n k l o w e r t h a n t h e a b s o r b e r , a small v e r y i n e x p e n s i v e c i r c u l a t i n g
pump i s r e q u i r e d .
I n f r e e z i n g c l i m a t e s d r a i n i n g or a dual c i r c u l a t i o n system i s
r e q u i r e d w h i c h means t h a t t h e a b s o r b e r i s c o u p l e d t o an o u t e r t a n k w h i c h c a n
have a l i d and i s i n s u l a t e d . The s e r v i c e h o t w a t e r t a n k i s submerged i n s i d e t h e
o u t e r t a n k . The r i g h t amount o f a n t i - f r e e z e i s added t o t h e w a t e r i n t h e o u t e r
t a n k so as t o p r e v e n t f r e e z i n g f o r t h e p a r t i c u l a r , l o c a l , c l i m a t i c c o n d i t i o n s .
178
SOLAR WATER HEATING
The usual dimensions f o r a s i n g l e f a m i l y d w e l l i n g i s f o u r f e e t by t w e l v e
f e e t f o r t h e c o l l e c t o r , and about a one hundred g a l l o n s e r v i c e w a t e r t a n k .
I t i s a d v i s a b l e t o i n s t a l l a small e l e c t r i c b o o s t e r , somewhat l i k e a f o u r
thousand w a t t c o l l , t h e r m o s t a t i c a l l y c o n t r o l l e d so whenever t h e sun 1s u n a b l e
t o p r o v i d e a l l t h e hot w a t e r needed 1n t h e house, a few t i m e s d u r i n g t h e y e a r ,
t h i s b o o s t e r can p r o v i d e t h e d i f f e r e n c e .
Thousands o f t h e s e s o l a r w a t e r h e a t e r s have been o p e r a t i n g v e r y s a t i s f a c t o r i l y
i n t h e U n i t e d S t a t e s and m i l l i o n s o f them around t h e w o r l d , and i f p r o p e r l y
d e s i g n e d , t h e y w i l l g i v e v e r y s a t i s f a c t o r y r e s u l t s . Some s t u d i e s made by our
l a b o r a t o r y I n d i c a t e d t h a t t h e break even p o i n t i n t h e c o s t o f t h e hot w a t e r i s
about two y e a r s . From t h e n on t h e hot w a t e r p r o v i d e d by s o l a r energy i s f r e e
w h i l e o t h e r systems w i l l have t o be s u p p l i e d w i t h f u e l .
The s o l a r w a t e r h e a t e r o r f l a t p l a t e c o l l e c t o r should be o r i e n t e d f a c i n g
south and I n c l i n e d w i t h a h o r i z o n t a l a t an a n g l e equal t o t h e l a t i t u d e p l u s
10 d e g r e e s . I n t h i s manner t h e c o l l e c t o r w i l l be more f a v o r a b l y o r i e n t e d i n
t h e w i n t e r when t h e days a r e s h o r t e r and l e s s f a v o r a b l y i n t h e summer when t h e
days a r e l o n g e r . I n t h i s manner i t w i l l c o l l e c t about t h e same amount o f
energy a l l y e a r around.
Some s o l a r w a t e r h e a t e r i n s t a l l a t i o n s have been i n o p e r a t i o n i n t h e U n i t e d
S t a t e s f o r over f o r t y y e a r s .
179
S O L A R C O O K I N G AND
BAKING
Dr . E. A . Fa r b e r
D i r e c t o r , Solar Energy &
Energy Conversion Laboratory
U n i v e r s i t y of Florida
Gainesville, Florida
32611
A number of d i f f e r e n t methods a r e a v a i l a b l e t o use s o l a r
energy to provide the temperatures which are r e q u i r e d f o r cooking
and b a k i n g .
One o f t h e s i m p l e s t t h i n g s i s t a k i n g a box w h i c h
i s i n s u l a t e d and has a s i n g l e o r d o u b l e g l a s s on o n e o f i t s s i d e s .
When t h i s s i d e i s p o i n t e d t o w a r d s t h e s u n , b a k i n g t e m p e r a t u r e s o f
s e v e r a l h u n d r e d d e g r e e s F can be r e a c h e d i n s i d e t h a t b o x .
I t can
be u s e d e x a c t l y l i k e an o v e n i n an o t h e r w i s e h e a t e d s t o v e .
If
t h e w a l l s a r e made o u t of m a t e r i a l w h i c h can s t o r e e n e r g y , t h e
s t o v e c a n be s e t o u t i n t o t h e sun a n d a b s o r b i n g e n e r g y a l l d a y ,
s t o r i n g i t in t h e w a l l s , a l l o w i n g cooking or b a k i n g f o r s e v e r a l
hours a f t e r t h e sun has gone down.
Another method f o r cooking is through the use of a c o n c e n t r a t o r
w h i c h c a n be a d i s h c o v e r e d w i t h r e f l e c t i n g s u r f a c e s s u c h as a
m i r r o r , o r e v e n an u m b r e l l a c o v e r e d w i t h a l u m i n u m f o i l w h i c h w i l l
c o n c e n t r a t e t h e s o l a r r a d i a t i o n f a l l i n g upon i t o n t o a c o n t a i n e r
w h i c h h o l d s t h e f o o d t o be h e a t e d .
A c o l l e c t o r of t h i s type of
t h r e e t o f o u r f e e t i n d i a m e t e r w i l l be a b l e t o p r e p a r e m e a l s i n
t h e same t i m e as a n o t h e r s t o v e o r o v e n .
I f t h e c o o k e r i s made
o u t o f an u m b r e l l a , i t c a n be f o l d e d away when n o t i n u s e , o r
c o u l d e v e n be used as an u m b r e l l a when t h e sun does n o t s h i n e .
The two t y p e s of s y s t e m s , t h e oven and t h e c o o k e r , d e s c r i b e d
a b o v e can o n l y be used o u t d o o r s .
H o w e v e r , a t h i r d m e t h o d by
which o i l , for instance, is heated in a concentrating type coll e c t o r to v e r y high t e m p e r a t u r e s o f , 800 to 900 degrees F, can
t h e n be s t o r e d i n a w e l l i n s u l a t e d t a n k .
A s o l a r s t o v e and o v e n ,
l o o k i n g s o m e w h a t l i k e an e l e c t r i c r a n g e , can be u s e d t w e n t y - f o u r
h o u r s t o do t h e c o o k i n g by c i r c u l a t i n g h o t o i l t h r o u g h t h e c o i l s
on t h e s t o v e and i n t h e o v e n i n s t e a d o f e l e c t r i c i t y .
*By c o n t r o l l i n g the amount of o i l c i r c u l a t i n g through the c o i l s , the tempe r a t u r e w h i c h i s d e s i r e d c a n be o b t a i n e d .
A number of o t h e r methods s i m i l a r to t h e ones d e s c r i b e d a b o v e ,
can be used f o r c o o k i n g or b a k i n g w i t h s o l a r e n e r g y .
180
SOLAR A I R CONDITIONING
Dr. r.A. Farber
UiroU.or, Solar Enorqy ft
I nc.krfjy Conversion Laboratory
University o f Florida
G a i n e s v i l l e , F l o r i d a 32611
A number o f methods a r e a v a i l a b l e t o p r o v i d e s o l a r a i r c o n d i t i o n i n g f o r a home
or l a r g e r b u i l d i n g .
S o l a r e n e r g y c a n be c o n v e r t e d t o m e c h a n i c a l e n e r g y and t h e n u s e d t o d r i v e a compressor i n t h e conventional compression r e f r i g e r a t i o n o r a i r c o n d i t i o n i n g system.
S o l a r e n e r g y can b e used t o p r o v i d e s t e a m and t h e n use s t e a m j e t r e f r i g e r a t i o n o r
air conditioning.
I t s e e m s , h o w e v e r , m o s t p r o m i s i n g t o use t h e a b s o r p t i o n r e f r i g e r a t i o n method.
I n c o m p r e s s i o n r e f r i g e r a t i o n o n l y one c o m p o n e n t , n a m e l y t h e r e f r i g e r a n t , i s u s e d ;
t h u s , t h e s y s t e m c o n s i s t s o f a c o m p r e s s o r , a c o n d e n s e r , a n e x p a n s i o n v a l v e and a n
e v a p o r a t o r w h e r e t h e a c t u a l c o o l i n g i s d o n e . By u s i n g t w o c o m p o n e n t s , r e f r i g e r a n t
and a b s o r b e r , t h e c o m p r e s s o r , w h i c h t a k e s a c o n s i d e r a b l e amount o f m e c h a n i c a l o r
h i g h c o s t e n e r g y , can b e r e p l a c e d b y a s m a l l pump and a s o u r c e o f h e a t . T h u s , a g a s
r e f r i g e r a t o r o r a i r c o n d i t i o n i n g s y s t e m uses a gas f l a m e and o n l y a s m a l l c i r c u l a t i n g pump w h i c h r e q u i r e s n e g l i g i b l e amount o f e n e r g y t o d r i v e . B a s i c a l l y , t h e
absorber l i q u i d i s t h e c a r r i e r f o r t h e r e f r i g e r a n t from low pressure t o h i g h p r e s s u r e
by a b s o r b i n g a t l o w t e m p e r a t u r e and t h e n b e i n g pumped t o h i g h p r e s s u r e and when
h e a t e d g i v i n g o f f t h e r e f r i g e r a n t a g a i n . So b y r e p l a c i n g t h e c o m p r e s s o r i n a s i n g l e
c o m p o n e n t s y s t e m b y a n a b s o r b e r , a pump, a g e n e r a t o r and a h e a t s o u r c e , t h e same
e f f e c t s a r e produced as w i t h t h e compressor.
I f a t h r e e component s y s t e m i s u s e d ;
t h e n e v e n t h e pump c a n be e l i m i n a t e d and o n l y a h e a t s o u r c e i s r e q u i r e d .
Gas r e f r i g e r a t o r s a r e u s u a l l y o f t h i s t y p e , h a v e no m o v i n g p a r t s and r e q u i r e o n l y a s i n g l e
s o u r c e o f h e a t . O u r s y s t e m f o r s o l a r a i r c o n d i t i o n i n g i s b a s i c a l l y t h e same a s a
gas a i r c o n d i t i o n i n g o r r e f r i g e r a t i o n s y s t e m , b u t f o r t h e gas o r o i l f l a m e , h o t
water i s substituted.
T h e r e f o r e , t h e s o l a r s y s t e m , w h i c h p r o v i d e s t h e d o m e s t i c h o t w a t e r and h o t w a t e r
f o r h e a t i n g t h e h o u s e i n t h e w i n t e r , c a n be used i n t h e summer t o p r o v i d e t h e h o t
water t o operate t h e a i r c o n d i t i o n i n g system.
S o l a r a i r c o n d i t i o n i n g has many t h i n g s i n i t s f a v o r . One o f t h e most i m p o r t a n t
ones i s t h a t when t h e sun s h i n e s h o t t e r , more a i r c o n d i t i o n i n g i s r e q u i r e d , t h u s
t h e s u p p l y o f e n e r g y t o o p e r a t e t h e s y s t e m i s i n p h a s e w i t h t h e demand made on t h e
s y s t e m . F u r t h e r m o r e , t h e c o l l e c t o r s w h i c h a r e u s u a l l y p l a c e d on t h e r o o f o f t h e
house w i l l a c t u a l l y s h a d e t h e r o o f , t h u s r e q u i r i n g l e s s a i r c o n d i t i o n i n g b y i n t e r c e p t i n g t h e e n e r g y and n o t l e t t i n g i t g e t t h r o u g h t h e r o o f and i n t o t h e h o u s e .
From t h i s v e r y b r i e f d e s c r i p t i o n i t c a n b e s e e n t h a t t h e i d e a l s y s t e m i s a
s o l a r s y s t e m w h i c h p r o v i d e s h o t w a t e r , h e a t f o r t h e house i n t h e w i n t e r , a n d a i r
c o n d i t i o n i n g f o r t h e house i n t h e summer. I n t h i s m a n n e r , t h e same s o l a r s y s t e m
i s used a l l y e a r a r o u n d . The c o l l e c t o r s can e v e n b e u s e d f o r h e a t i n g t h e swimming p o o l .
181
SOLAR FURNACES
Dr. E.A. Farber
D i r e c t o r , S o l a r Enerqy &
Energy Conversion L a b o r a t o r y
University of Florida
Gainesville, Florida
32611
F o r many p u r p o s e s p u r e h e a t and h i g h t e m p e r a t u r e s a r e needed and f o r t h i s
p u r p o s e s o l a r e n e r g y c a n be c o n c e n t r a t e d by e i t h e r l e n s e s o r m i r r o r s t o p r o d u c e
these very high temperatures.
E q u i p m e n t t o do t h i s i s u s u a l l y r e f e r r e d t o as s o l a r f u r n a c e s . The
c o n c e n t r a t i o n can be p r o v i d e d by a l a r g e number o f m i r r o r s w h i c h r e f l e c t t h e
sun on t h e same s p o t . The l a r g e s t f u r n a c e s i n F r a n c e have been c o n s t r u c t e d
i n t h i s p a r t i c u l a r m a n n e r . S m a l l e r ones c a n be d e s i g n e d as c o n t i n u o u s s u r f a c e s
such as p a r a b o l i c d i s h e s a s t h e ones shown i n t h i s p a r t i c u l a r p i c t u r e . The sun
s h i n e s i n t o t h i s m i r r o r and i s r e f l e c t e d o n t o a s m a l l t a r g e t g i v i n g up t o
2 5 , 0 0 0 t i m e s normal s u n s h i n e .
The t a r g e t o f t h e s o l a r f u r n a c e can be s u p p o r t e d by a r e l a t i v e l y l o w t e m p e r a t u r e m e l t i n g m a t e r i a l and c a n be s u r r o u n d e d by a g l a s s o r p l a s t i c s p h e r e . The
s o l a r r a d i a t i o n when i t p e n e t r a t e s t h e g l a s s s p h e r e i s n o t h i g h l y c o n c e n t r a t e d
a n d , t h e r e f o r e , does n o t damage t h e g l a s s due t o h i g h t e m p e r a t u r e , b u t h e a t s
the t a r g e t to m e l t i n g or v a p o r i z a t i o n temperatures. Temperatures which w i l l
m e l t and v a p o r i z e a l l known m a t e r i a l s c a n be r e a c h e d i n t h i s m a n n e r .
Our s o l a r f u r n a c e has been used t o e x t r a c t w a t e r f r o m r o c k s by v a p o r i z a t i o n
and t h e n s e l e c t i v e c o n d e n s a t i o n .
I t has a l s o been u s e d t o p r o d u c e h i g h t e m p e r a t u r e c r y s t a l s n o n - e x i s t i n g i n n a t u r e . T h u s , a s o l a r f u r n a c e c a n be a v e r y
v a l u a b l e r e s e a r c h t o o l o r i t can be l i k e t h e l a r g e f u r n a c e s . i n F r a n c e , e q u i p m e n t
w h i c h c o m m e r c i a l l y p r o d u c e s t o n s o f v e r y h i g h l y p u r i f i e d m a t e r i a l s needed by
industry.
182
SWIMMING POOL HEATING
Dr. E.A. Farber
D i r e c t o r , S o l a r Energy &
Energy Conversion L a b o r a t o r y
University of Florida
G a i n e s v i l l e , F l o r i d a 32611
H e a t i n g o f swimming p o o l s i s an e x p e n s i v e p r o p o s i t i o n s i n c e swimming p o o l s c o n t a i n t r e m e n d o u s amounts o f w a t e r , and t h u s , r e q u i r e v e r y l a r g e amounts o f h e a t t o
do t h e j o b . Swimming p o o l s c a n be h e a t e d by means o f s o l a r e n e r g y o v e r a p e r i o d o f
y e a r s c h e a p e r t h a n by a n y o t h e r m e a n s ; h o w e v e r , t h e i n i t i a l e q u i p m e n t i s s t i l l e x p e n s i v e e x c e p t f o r one o f t h e v e r y s i m p l e m e t h o d s .
I f a swimming p o o l , and i t c a n be an O l y m p i c s i z e swimming p o o l , i s i n t h e s u n ,
t h e n a r e l a t i v e l y i n e x p e n s i v e method i s t o t a k e a p l a s t i c t r a n s p a r e n t s h e e t a n d
f l o a t i t on t h e s u r f a c e o f t h e p o o l so t h a t no a i r b u b b l e s a r e t r a p p e d b e l o w t h e
plastic.
I f a i r b u b b l e s a r e u n d e r t h e p l a s t i c , d r o p l e t s w i l l c o l l e c t on t h e p l a s t i c
and a c t as l i t t l e r e f l e c t o r s p r e v e n t i n g t h e s o l a r e n e r g y f r o m p e n e t r a t i n g i n t o t h e
w a t e r . By t h i s r e l a t i v e l y s i m p l e m e t h o d , t h e a v e r a g e p o o l t e m p e r a t u r e w i l l be i n c r e a s e d by 1 0 ° F .
O t h e r methods o f h e a t i n g swimming p o o l s become more e x p e n s i v e . L a r g e s u r f a c e s ,
r o o f s , e t c . , c a n be u s e d t o c i r c u l a t e t h e w a t e r and l e t i t t r i c k l e down t h e s u r f a c e
w h i c h i s h e a t e d by t h e s u n . The w a r m i n g w a t e r d r a i n s back i n t o t h e p o o l .
Concrete
s u r f a c e s o r s l a b s c a n be used f o r t h i s p u r p o s e o r m e t a l s h e e t s e x p o s e d t o t h e sun
w h i c h c a n be t h e f e n c e a r o u n d t h e p o o l t o p r o v i d e b o t h s o l a r h e a t i n g f o r t h e p o o l
and p r i v a c y f o r t h e swimmers. Fences i n many a r e a s a r e r e q u i r e d by o r d i n a n c e t o
be p u t a r o u n d swimming p o o l s , t h u s , t h e f e n c e w h i c h a t t h e same t i m e i s a s o l a r
c o l l e c t o r w i l l g i v e t h e h e a t i n g f o r t h e pool a t a r e l a t i v e l y low a d d i t i o n a l c o s t .
F o r e a c h c o l l e c t o r s u r f a c e a b o u t e q u a l t o t h e p o o l s u r f a c e a r e a a 10 d e g r e e F
t e m p e r a t u r e r i s e i n t h e a v e r a g e t e m p e r a t u r e o f t h e pool can be e x p e c t e d .
More s o p h i s t i c a t e d and more e f f i c i e n t s o l a r c o l l e c t o r s can be d e s i g n e d and u s e d
b u t t h e i r c o s t can h a r d l y be j u s t i f i e d u n l e s s t h e s e same c o l l e c t o r s a r e a l s o u s e d
f o r h e a t i n g t h e h o u s e , h e a t i n g t h e w a t e r , and p o s s i b l y s o l a r a i r c o n d i t i o n i n g .
The c o l l e c t o r s f o r swimming p o o l h e a t i n g c a n be made o f p l a s t i c , h o w e v e r , i t
must be r e a l i z e d t h a t t h e l i f e o f such s y s t e m s w i l l be s h o r t e r t h a n t h e p r o p e r l y
designed m e t a l l i c e q u i v a l e n t s .
184
SOLAR ENGINES
Dr. E . A . Farber
D i r e c t o r , Solar Enerqy &
Enerqy Conversion L a b o r a t o r y
University of Florida
Gainesville, Florida 32611
I f mechanical energy i s t h e end r e s u l t required, s o l a r energy c a n be
c o n v e r t e d t o t h i s f o r m o f e n e r g y b y many d i f f e r e n t m e t h o d s . Some o f t h e s e
m e t h o d s u t i l i z e s o l a r e n e r g y d i r e c t l y a s i t comes i n o t h e r s r e q u i r e f i r s t
concentration t o obtain higher temperatures.
T h e us*e o f s o l a r e n e r q y w i t h out concentration allows t h e u t i l i z a t i o n o f t h e diffused r a d i a t i o n as well
as t h e d i r e c t r a d i a t i o n i t makes i t p o s s i b l e t o o p e r a t e t h e s e e n g i n e s e v e n
on c l o u d y d a y s .
One m e t h o d o f c o n v e r t i n g s o l a r e n e r g y t o m e c h a n i c a l e n e r g y i s t o h e a t
l i q u i d s t o h i g h enouqh t e m p e r a t u r e s t o produce v a p o r and t h e n u s e t h e v a p o r
t o o p e r a t e steam e n g i n e s o r steam t u r b i n e s . Depending upon t h e l i q u i d used
c o n c e n t r a t i o n may be n e c e s s a r y such a s f o r w a t e r o r i f o t h e r l i q u i d s such
as F r e o n s a r e used f l a t p l a t e c o l l e c t o r s c a n be u t i l i z e d .
I f concentration o f solar energy i s a v a i l a b l e then hot a i r engines or
hot g a s engines o f t h e s t e r l i n g t y p e c a n be o p e r a t e d . They f a l l i n t o two
c l a s s e s , t h e c l o s e d c y c l e and t h e open c y c l e t y p e e n g i n e .
I n t h e closed
c y c l e e n g i n e t h e a i r o r g a s i s c o n t a i n e d i n a power c y l i n d e r and a d i s p l a c e r
cylinder.
The a i r i s s h i f t e d back and f o r t h i n t h e d i s p l a c e r c y c l i n d e r
b e t w e e n hot a n d c o l d s u r f a c e s t h u s b e i n g h e a t e d a n d t h e n c o o l e d d u r i n g e a c h
c y c l e . T h i s b u i l d s up t h e p r e s s u r e d u r i n g t h e power s t r o k e and l o w e r s i t
when t h e f l y w h e e l r e t u r n s t h e p i s t o n t o t h e u p p e r d e a d c e n t e r .
I n t h e open
c y c l e engine t h e a i r i s taken-in,compressed, then heated and exhausted through
t h e e n g i n e . T h e a d v a n t a g e o f t h e open c y c l e e n q i n e i s t h a t t h e h e a t i n q r a t e
and t h e speed o f t h e e n g i n e a r e i n d e p e n d e n t .
However t h e c l o s e d c y c l e e n q i n e s
w h i c h we have b u i l t had a h i g h e r c o n v e r s i o n e f f i c i e n c y o f a b o u t 10%.
O t h e r e n g i n e s w o r k i n g on d i f f e r e n t p r i n c i p a l s have been b u i l t such a s
pumps, g r a v i t y e n q i n e s , phase s h i f t e n g i n e s , e t c .
A l l t h e engines mentioned above can be operated o f f any source o f heat
t h u s c o u l d be o p e r a t e d d u r i n g t h e d a y from s o l a r e n e r g y and i f r e q u i r e d d u r i n g
the night from other fuel sources.
185
SOLAR ELECTRIC TRANSPORTATION
Dr. E.A. Farber
D i r e c t o r , S o l a r Energy &
Energy Conversion Laboratory
University of Florida
G a i n e s v i l l e , F l o r i d a 32611
S i n c e t h e p h i l o s o p h y o f o u r l a b o r a t o r y has been t o d e v e l o p and
d e m o n s t r a t e t h a t s o l a r e n e r g y c a n be c o n v e r t e d t o a l l f o r m s o f e n e r g y
w h i c h we u s e i n o u r d a i l y l i f e , a s o l a r e l e c t r i c c a r has been b u i l t .
T h i s c a r has been d e s i g n e d t o m e e t open r o a d and u r b a n t r a f f i c c o n d i t i o n s .
I t i s b a s i c a l l y an e l e c t r i c c a r t h e b a t t e r i e s o f w h i c h c a n be c h a r g e d by
e l e c t r i c i t y converted from solar energy.
The s o l a r e l e c t r i c c a r i s a c o n v e r t e d C o r v a i r w i t h t h e e n g i n e r e p l a c e d
by a 27 h o r s e p o w e r s u r p l u s a i r c r a f t g e n e r a t o r . V a r i o u s b a t t e r i e s have been
used i n t h e p a s t s u c h a s n i c k e l cadmium and l e a d a c i d t y p e s . T h e c a r as
shown a b o v e c a n o p e r a t e a t 65 mph and h a s , a r a n g e o f a b o u t 1 0 0 m i l e s .
D i f f e r e n t b a t t e r i e s w h i c h a r e p r e s e n t l y a v a i l a b l e on t h e m a r k e t can e x t e n d
t h i s range c o n s i d e r a b l y .
The s w i t c h i n g o f t h e v o l t a g e i s c o n t r o l l e d by t h e a c c e l e r a t o r and t h e
c h a n g i n g o f t h e f i e l d e x c i t a t i o n a t t h e same t i m e g i v e s t h e c a r a smooth
o p e r a t i o n . The m o t o r w h i c h p r o p e l s t h e c a r i s u s e d as a g e n e r a t o r when
t h e c a r i s s l o w i n g down t h u s f e e d i n g some e n e r g y back i n t o t h e b a t t e r i e s .
When t h e c a r i s s t o p p e d a t a s t o p l i g h t o r i n t r a f f i c , no e n e r g y i s c o n sumed f r o m t h e b a t t e r i e s .
D r . S c h a e p e r , one o f our s t a f f members, d r i v e s t h i s c a r as any o t h e r
c a r w o u l d be o p e r a t e d t o o b t a i n i n - t r a f f i c p e r f o r m a n c e d a t a .
C a r s and t r u c k s and buses s i m i l a r t o t h i s one c o u p l e d w i t h a n e t w o r k
of solar b a t t e r y charging s t a t i o n s instead of gasoline s t a t i o n s could prov i d e a n a t i o n w i d e e n e r g y f r e e and p o l l u t i o n f r e e t r a n s p o r t a t i o n s y s t e m .
D r i v i n g a l o n g when t h e b a t t e r i e s become d i s c h a r g e d , you c o u l d d r i v e y o u r
c a r i n t o one o f t h e s e s o l a r b a t t e r y c h a r g i n g s t a t i o n s and h a v e t h e c a r ' s
b a t t e r i e s r e p l a c e d f o r charged ones. T h i s should not t a k e any l o n g e r t h a n
having the gasoline tank f i l l e d .
186
SOLAR PROPERTIES OF MATERIALS
Dr. E.A. Farber
D i r e c t o r , S o l a r Energy &
Energy Conversion L a b o r a t o r y
University o f Florida
Gainesville, Florida 32611
T h e S o l a r E n e r g y and E n e r g y C o n v e r s i o n L a b o r a t o r y has t h e s o l a r c a l o r i m e t e r
w h i c h i s a n i n s t r u m e n t which can d e t e r m i n e t h e s o l a r p r o p e r t i e s o f m a t e r i a l s ,
n a m e l y , t h e r e f l e c t i o n , a b s o r p t i o n and t r a n s m i s s i o n . M a t e r i a l s such a s c l e a r
g l a s s e s , t i n t e d g l a s s e s , p l a s t i c s , laminated g l a s s e s , Venetian b l i n d s , d r a p e r i e s ,
g l a s s b r i c k , e t c . h a v e been i n v e s t i g a t e d and t h e i r p r o p e r t i e s d e t e r m i n e d .
Many
of t h e r e s u l t s obtained w i t h t h i s instrument a r e published i n t h e Guide o f t h e
A m e r i c a n S o c i e t y o f H e a t i n g , R e f r i g e r a t i o n , and A i r C o n d i t i o n i n g E n g i n e e r s .
The i n s t r u m e n t can be o r i e n t e d i n any d i r e c t i o n d e s i r e d , t h u s s i m u l a t i n g
south w a l l s , e a s t w a l l s , west w a l l s , north w a l l s o r h o r i z o n t i a l r o o f s , e t c . I t
c a n b e made t o f o l l o w t h e sun i f t h a t i s d e s i r e d . T h e r a d i a t i o n f r o m t h e s u n ,
t h e r a d i a t i o n f r o m t h e g r o u n d , and h u n d r e d s o f t e m p e r a t u r e s c a n b e m o n i t o r e d
with this instrument.
I t might be worthwhile t o mention t h a t t h e behavior o f m a t e r i a l s under s o l a r
i r r a d i a t i o n i s d i f f e r e n t from t h e behavior under low t e m p e r a t u r e o r normal
irradiation.
The l a b o r a t o r y a l s o has e x p o s u r e t e s t f a c i l i t i e s t o i n v e s t i g a t e t h e e f f e c t
o f w e a t h e r i n g s i n c e m a t e r i a l s used i n s o l a r energy work must be a b l e t o
withstand t h eenvironmental c l i m a t i c conditions.
187
ELECTRICITY FROM SOLAR ENERGY
Dr. E.A. Farber
D i r e c t o r , S o l a r Enerqy &
Energy Conversion Laboratory
University of Florida
G a i n e s v i l l e , F l o r i d a 32611
I f e l e c t r i c i t y i s n e e d e d many methods c a n be e m p l o y e d t o c o n v e r t s o l a r e n e r g y
t o t h i s f o r m o f e n e r g y and a number o f t h e s e w i l l be d e s c r i b e d b e l o w .
One method o f c o n v e r t i n g s o l a r e n e r g y t o e l e c t r i c i t y i s by means o f s o l a r
e n g i n e s c o n v e r t i n g s o l a r e n e r g y f i r s t t o m e c h a n i c a l e n e r g y and t h e n h a v i n g t h e s e
e n g i n e s d r i v e g e n e r a t o r s t o p r o d u c e t h e e l e c t r i c a l e n e r g y . T h i s method seems a t
t h e p r e s e n t t i m e t o be t h e most e c o n o m i c a l method o f p r o d u c i n g e l e c t r i c i t y f r o m
solar energy.
Another method which i s used i n our s a t e l l i t e s i s t h e c o n v e r s i o n o f s o l a r
e n e r g y , t o e l e c t r i c i t y by s o l i d s t a t e d e v i c e s o r t h e s o l a r o r s i l i c o n c e l l .
The
s e m i c o n d u c t o r m a t e r i a l doped p r o p e r l y i s a b l e t o c o n v e r t s o l a r r a d i a t i o n I n t o
d i r e c t c u r r e n t e l e c t r i c i t y . T h i s f o r m o f e l e c t r i c i t y c a n be s t o r e d i n b a t t e r i e s
and a t t h e p r o p e r t i m e i f so d e s i r e d c o n v e r t e d 1 1 0 AC s i n c e most o f o u r e q u i p m e n t
i s d e s i g n e d t o o p e r a t e f r o m t h i s t y p e and o p e r a t e t e l e v i s i o n s e t s , l i g h t s , s m a l l
a p p l i a n c e s , e t c . as shown i n t h e p i c t u r e a b o v e . U n f o r t u n a t e l y t h e s o l a r s o l i d
s t a t e c o n v e r s i o n e q u i p m e n t a t t h e p r e s e n t t i m e i s v e r y e x p e n s i v e such as t h i s
p a n e l shown i n t h i s p i c t u r e w h i c h c o s t s a b o u t $ 3 0 , 0 0 0 . Many p e o p l e a r e w o r k i n g
a t t h e p r e s e n t t i m e on t r y i n g t o r e d u c e t h e c o s t o f t h e s e s o l i d s t a t e s o l a r t o
e l e c t r i c i t y conversion devices.
Two o t h e r methods t h a t h a v e been c o n s i d e r e d a r e t h e t h e r m o - e l e c t r i c c o n v e r s i o n
w h i c h b a s i c a l l y u s e s two d i s - s i m i l a r m a t e r i a l s j o i n e d t o g e t h e r and i f h e a t e d on
one o f t h e j u n c t i o n s makes an e l e c t r i c c u r r e n t f l o w . The e f f i c i e n c y o f t h e s e
d e v i c e s a t t h e p r e s e n t t i m e has n o t been v e r y h i g h and t h e s t a b i l i t y o f some o f
t h e m a t e r i a l s not too good.
T h e r m o n i c c o n v e r s i o n w h i c h i s based on t h e p r i n c i p l e o f h e a t i n g a m a t e r i a l
t o h i g h t e m p e r a t u r e s so t h a t e l e c t r o n s a r e g i v e n o f f and c o l l e c t i n g t h e s e e l e c t r o n s
on a p l a t e c l o s e t o t h e f i r s t one has a l s o been t r i e d . B u t some o f t h e d i f f i c u l t i e s
o f h e a t i n g and c o o l i n g as w e l l as e l e c t r o n c o l l e c t i o n h a v e n o t y e t b e e n s o l v e d
satisfactorily.
So e v e n t h o u g h a number o f methods o f c o n v e r t i n g s o l a r e n e r g y t o e l e c t r i c i t y
a t t h i s t i m e have been d e v e l o p e d none o f t h e s e seem t o be e c o n o m i c a l l y c o m p e t i t i v e
w i t h c o n v e n t i o n a l methods a t t h i s t i m e f o r o n - e a r t h a p p l i c a t i o n s .
188
189
SOLAR EQUIPMENT
MANUFACTURERS
( T h i s l i s t does n o t i n d i c a t e an endorsement
o f any one o f t h e m a n u f a c t u r e r s by u s )
Arkla
Industries
Evansville,
Illinois
Amcor E x p o r t C o . ,
P.O. Box 2850
Tel Aviv,
Israel
Ltd.
Edmund S c i e n t i f i c
300 E d s c o r p B l d g .
Barrington, N.J.
Company
89109
Energex Corp.
4 8 1 T r o p i c a n a Road
Las Vegas, Nevada
89109
Beasley I n d u s t r i e s Ltd.
B o l t o n Avenue, Devon Park
South A u s t r a l i a
IMPORTED BY
Solar Energy Research Center
P . O . Box 17776
S a n D i e g o , CA
92117
Energy Systems,
E l C a j o n , CA
Beutel's Solar Heater, Inc.
152 7 N o r t h M i a m i A v e n u e
M i a m i , FL
33136
(305) 822-6268
Fred Rice Productions
6313 Peach A v e n u e
V a n N u y s , CA
91401
CSI S o l a r Systems D i v i s i o n
12400 - 4 9 t h S t r e e t N o r t h
S t . P e t e r s b u r g , FL
33732
Free Heat
P . O . Box 8934
B o s t o n , Mass
Coleman R o o f i n g
M i a m i , FL
Fun & F r o l i c ,
Inc.
P . O . B o x 277
Madison H e i g h t s , Michigan
Company
Inc.
FAFCO, I n c .
138 J e f f e r s o n D r i v e
M e n o l P a r k , CA
9402 5
02114
D & J S h e e t M e t a l Co.
10055 N.W. 7 t h Avenue
M i a m i , FL
(305) 757-7033
G a r d e n Way L a b s
P . O . B o x 66
C h a r l o t t e , VT
05445
Deko-Labs
P . O . Box 1 2 8 4 1
G a i n e s v i l l e , FL
(904)
372-6009
Helio Associates,
Inc.
82 30 E . B r o a d w a y
Tucson, Arizona
85710
32604
Discon Industries
P o m p a n o B e a c h , FL
E & K S e r v i c e Company
1 6 8 2 4 - 74 A v e n u e N . E .
B o t h e l l , Washington
98011
62-322 O - 75 - 13
H i t a c h i America Ltd.
437 M a d i s o n A v e n u e
New Y o r k , N . Y .
10022
48071
190
Hitachi Hi-Heater
H i t a c h i Chemical Co., Ltd.
4 , 1-Chome
Morunouchi, Chiypda-Ku
Tokyo, Japan
R e y n o l d s M e t a l Company
2 315 D o m i n g u e z S t r e e t
T o r r a n c e . , CA
9 05 08
International Solarthermics
B o x 297 N e d e r l a n d
N e d e r l a n d , CO
80466
Corp.
R o b b i n s W.R. £ Sons R o o f i n g
1 4 0 1 N.W. 2 0 t h S t r e e t
M i a m i , FL
3 3142
(305)
325-0880
I n t e r t e c h n o l o g y Corp.
Warrenton,
Virginia
J £ R Simmons C o n s t r u c t i o n
2185 S h e r w o o d D r i v e
S o u t h D a y t o n a , FL
32019
K a l w a l l Corp.
1 1 1 1 C a n d i a Rd.
Manchester, N.H.
Co.
Rodgers £ MacDonald
3003 N . E . 1 9 t h D r i v e
G a i n e s v i l l e , FL
32601
(904)
377-7883
03105
Lifeguard Filtration
F t . L a u d e r d a l e , FL
Systems
Olin-Brass
O l i n Corp.
E. A l t o n ,
Illinois
Inc.
Skytherm Processes £ Engineering
2424 W i l s h i r e B l v d .
L o s A n g e l e s , CA
90057
P.R.
Distributors
12 3 2 Z a c c h i n i A v e n u e
S a r a s o t a , FL
33577
(813) 958-5660
Sol-Therm Corp.
7 West 1 4 t h S t r e e t
New Y o r k , N . Y .
10011
Ram P r o d u c t s
Sturgis, Michigan
Revere Copper £ B r a s s ,
P . O . Box 1 5 1
Rome, N . Y .
13440
SAV S o l a r H e a t e r
IMPROTED FROM
Fred Rice Productions,
6 313 P e a c h A v e n u e
V a n N u y s , CA
91401
Silves Limited
7 West 1 4 t h S t r e e t
New Y o r k , N . Y .
10011
(Improted from I s r a e l )
PPG I n d u s t r i e s ,
Inc.
One G a t e w a y C e n t e r
P i t t s b u r g h , PA
15222
Rho S i g m a
5108 M e l v i n Avenue
T a r z a n a , CA
91356
Inc.
Solar Design
T a m p a , FL
£
Engineering
191
Solar Development,
Inc.
West P a l m B e a c h , FL
S o l a r P o w e r Company
42 E d n a , R o u t e 4
P o r t R i c h e y , FL
Solar Dynamics, Inc.
4527 E. 1 1 t h A v e n u e
H i a l e a h , FL
33013
S o l a r Power C o r p o r a t i o n
B r a i n t r e e , Mass.
S o l a r E n e r g y Company
P . O . B o x 614
M a r l b o r o , Mass.
017 52
S o l a r Power C o r p o r a t i o n
9 30 C l o c k t o w e r P k y .
V i l l a g e Square
New P o r t R i c h e y , F L 3 35 52
S o l a r E n e r g y Company
C r o s s l y Window C o r p .
M i a m i , FL
Solar Sales,
M i a m i , FL
S o l a r Energy Components,
1605 N. Cocoa B l v d .
C o c o a , FL
32922
(305) 632-2880
Solar Energy Products
Avon L a k e , Ohio
Inc.
Company
S o l a r Energy Systems
124 3 S o u t h F l o r i d a A v e n u e
R o c k l e d g e , FL
(305)
632-6251
Solar Energy Systems,
Newark, Delaware
Inc.
S o l a r Energy Systems o f
616 N . I n g r a h a m A v e n u e
L a k e l a n d , FL
33 8 0 1
(813) 688-8806
Inc.
S o l a r Systems D i v i s i o n
12400 4 9 t h S t r e e t , N o r t h
S t . P e t e r s b u r g , FL
33732
Solar Systems, I n c .
1802 D e n n i s D r i v e
T y l e r , Texas
75701
S o l a r Systems o f Largo
2 525 K e y L a r g o L a n e
F t . L a u d e r d a l e , FL
3 3 312
S o l a r W a t e r H e a t e r Co.
9 9 5 1 S.W. 3 8 t h T e r r a c e
M i a m i , FL
33155
Solarex Corporation
R o c k v i l l e , Maryland
Solaron Corp.
4850 O l i v e S t r e e t
Denver, Colorado
8 0022
S o l a r Home S y s t e m s
W i l l o u g h b y , Ohio
Solartec,
Lakeland,
Solar, Inc.
206 C e n t e r R o a d ,
F t . M y e r s , FL
(813) 936-7474
Page
Inc.
FL
Park
S o l e c Company
No A d d r e s s
192
Spectrolab
D i v i s i o n of Textron
Sylmar, C a l i f o r n i a
Youngblood Company, I n c .
1085 N.W. 3 6 t h S t r e e t
M i a m i , FL 33127
(305) 635-2501
Stampco, I n c .
4549 S t . A u g u s t i n e Road - #13
J a c k s o n v i l l e , FL 32207
(904) 737-6144
Sunhay E n t e r p r i s e s
1505 E. Windsor Road
Glendale, C a l i f o r n i a
Sundu Company
3319 Keys Lane
Anaheim, C a l i f o r n i a
91205
92804
Sunsource
9 606 Santa Monica B l v d .
B e v e r l y H i l l s , CA 90210
Sunsystems, I n c .
Eureka, I l l i n o i s
Sunwater Company
1112 P i o n e e r Way
E l Cajon, C a l i f o r n i a
92020
Sunworks, I n c .
669 Boston Post Road
G u i l f o r d , Conn 06437
S u p e r i o r W.J. S e r v i c e
P.O. Box 706
H o l l y H i l l , FL 32017
Tranter, Inc.
735 E. H a z e l S t r e e t
L a n s i n g , M i c h i g a n 48909
U n i t Span A r c h i t e c t u r a l Systems,
6606 V a r i e l ,
Canoga P a r k , C a l i f o r n i a
91303
Inc.
193
PUBLICATIONS
E.A.
FARBER
1948
"Heat T r a n s f e r
S R.L. Scorah,
t o Water B o i l i n g under
ASME T r . , May 1 9 4 8 .
Pressure",
E.A.
Farber
1950
"Use o f
Midwest
Models t o S t u d y Steam C i r c u l a t i o n i n
Power C o n f e r e n c e P r o c e e d i n g s , 1950.
Boilers",
E.A.
Farber,
1951
" I n v e s t i g a t i o n o f Steam S e p a r a t i o n i n B o i l e r Drums
S t u d i e s o n a M o d e l " , E . A . F a r b e r , ASME T r . 1 9 5 1 .
Through
"Free Convection Heat T r a n s f e r from E l e c t r i c a l l y Heated
E . A . F a r b e r , J o u r n a l o f A p p l i e d P h y s i c s , November 1951.
Wires",
1953
"Combustion E f f i c i e n c y vs.
J.R. Akerman, E.A. F a r b e r ,
October 1953.
Cycle Length of Domestic O i l B u r n e r s " ,
G . L . L a r s e n , ASME P a p e r #5 3 - F - 2 0 ,
"An A c c u r a t e Method f o r t h e D e t e r m i n a t i o n o f t h e Thermal
C o n d u c t i v i t y o f I n s u l a t i n g M a t e r i a l s " , C.R. M i s c h k e , E.A.
ASME P a p e r #5 3 - A - 1 8 5 , N o v e m b e r 195 3 .
Farber,
1955
" S o l a r Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y - D e c e m b e r , 19 5 5 .
"Combustion E f f i c i e n c y vs. Cycle Length o f Domestic O i l B u r n e r s " ,
J.R. Akerman, E.A. F a r b e r , G.L. Larsen, Report #2, U n i v e r s i t y o f
W i s c o n s i n E n g i n e e r i n g E x p e r i m e n t S t a t i o n , M a r c h 195 5 .
"The T e a c h i n g and L e a r n i n g o f E n g i n e e r i n g " , J o u r n a l o f
E d u c a t i o n , E . A . F a r b e r , Volume 4 5 , No. 1 0 , June 1 9 5 5 .
Engineering
"The T e a c h i n g and L e a r n i n g o f E n g i n e e r i n g " , E.A. F a r b e r , F l o r i d a
E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume I X , No. 1 1 ,
L e a f l e t #7 3 , N o v e m b e r 19 5 5 .
194
1956
"Solar Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 5 6 .
"An A c c u r a t e Method f o r t h e D e t e r m i n a t i o n o f t h e Thermal Cond u c t i v i t y o f I n s u l a t i n g S o l i d s " , C.R. M i s c h k e , E.A. F a r b e r ,
Report #5, U n i v e r s i t y o f Wisconsin Engineering Experiment
Station,
F e b r u a r y 19 5 6 .
"The Teaching o f Thermodynamics", E.A. F a r b e r ,
News a n d V i e w s , V o l u m e X I , N o . 4 2 , May 1 9 5 6 .
" S o l a r Energy - Past, P r e s e n t ,
Journal of Florida Engineering
1956.
and
Power
and F u t u r e " , E . A . F a r b e r ,
S o c i e t y , Volume X , No. 2 ,
"Practical Applications of Solar Energy",
C o n s u l t i n g E n g i n e e r , September 1956.
"The Fundamentals o f Heat
and I n d u s t r i a l E x p e r i m e n t
#85, October 1956.
Heat
E.A.
Farber,
J.C. Reed,
August
J.C.
Reed,
T r a n s f e r " , E.A. Farber, F l o r i d a Engineering
S t a t i o n , Volume X , No. 1 0 , B u l l e t i n
" T h e Gamma Ray D e n s i t o m e t e r a n d C o n c e n t r a t i o n
Oak R i d g e N a t i o n a l L a b o r a t o r y R e p o r t , O c t o b e r
Meter",
19 5 6 .
E.A.
Farber,
" E f f e c t s o f J u n c t i o n M a n u f a c t u r e o n T h e r m o c o u p l e EMF G e n e r a t i o n " ,
ASME P a p e r # 5 6 - A - 1 3 5 , E . A . F a r b e r , M . R . G l i c k s t e i n , N o v e m b e r 1 9 5 6 .
" P r a c t i c a l A p p l i c a t i o n s o f Solar Energy", E.A. Farber,
F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n ,
N o . 1 1 , L e a f l e t # 8 3 , N o v e m b e r 19 5 6 .
J . C . Reed,
Volume X ,
1957
" S o l a r Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f Commerce, J a n u a r y t h r o u g h December 1957.
"200 A T h o r i u m Oxide S l u r r y T e s t Loop D e n s i t y and C o n c e n t r a t i o n
D a t a " , E . A . F a r b e r , Oak R i d g e N a t i o n a l L a b o r a t o r y R e p o r t , J a n u a r y
1957.
" V a r i a t i o n o f Heat T r a n s f e r C o e f f i c i e n t s w i t h Length f o r
Inclined
Tubes i n S t i l l A i r " , E.A. F a r b e r , H.O. R e n n a t , I n d u s t r i a l and
E n g i n e e r i n g C h e m i s t r y , Volume 4 9 , p . 4 3 7 , March 1957.
Book - " B u i l d i n g an E n g i n e e r i n g C a r e e r " , C.C. W i l l i a m s , E . A .
3 r d E d i t i o n , M c G r a w - H i l l B o o k C o m p a n y , 299 p p . , M a r c h 1 9 5 7 .
Farber,
195
" T h e Gamma Ray D e n s i t o m e t e r a n d C o n c e n t r a t i o n M e t e r " , E . A .
Farber,
M. R i c h a r d s o n , I n s t r u m e n t S o c i e t y o f A m e r i c a P r o c e e d i n g s , A p r i l
1957.
" T h e Gamma Ray D e n s i t o m e t e r a n d C o n c e n t r a t i o n M e t e r " , E . A .
Farber,
M.R. R i c h a r d s o n , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t
S t a t i o n , V o l u m e X I , N o . 5 , B u l l e t i n # 8 8 , May 19 5 7 .
Inclined
" V a r i a t i o n o f Heat T r a n s f e r C o e f f i c i e n t s w i t h Length f o r
Tubes i n S t i l l A i r " , E . A . F a r b e r , H.O. R e n n a t , F l o r i d a E n g i n e e r i n g
and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume X I , No. 5, L e a f l e t # 9 0 ,
May 1 9 5 7 .
" B u b b l e and S l u g Flow
S o l i d M i x t u r e s " , E.A.
R e p o r t , May 19 5 7 .
i n G a s - L i q u i d a n d Gas ( V a p o r ) - L i q u i d F a r b e r , Oak R i d g e N a t i o n a l L a b o r a t o r y
" S o l a r Water H e a t i n g : P r e s e n t P r a c t i c e s and I n s t a l l a t i o n s " ,
E . A . F a r b e r , ASME P a p e r # 5 7 - S A 4 5 , J u n e 1 9 5 7 .
" S o l a r Water H e a t i n g :
E.A. Farber, N a t i o n a l
P r e s e n t P r a c t i c e s and I n s t a l l a t i o n s " ,
E n g i n e e r , August 1957.
" S o l a r Energy t o Supply Service
J.D. Bennett, A i r Conditioning,
October 1957.
H o t W a t e r " , E . A . F a r b e r , W.H.
H e a t i n g , and V e n t i l a t i n g ,
Russe]
1958
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 5 8 .
" B u b b l e and S l u g Flow i n C i r c u l a t i n g G a s - L i q u i d and G a s - L i q u i d S o l i d M i x t u r e s " , E . A . F a r b e r , Oak R i d g e N a t i o n a l L a b o r a t o r y
R e p o r t , F e b r u a r y 19 5 8 .
"Solar
DuPont
Energy Research", E.A.
de Nemours £ Co. S o l a r
Farber, Proceedings of the E . I .
E n e r g y S y m p o s i u m , M a r c h 19 5 8 .
" T e m p e r a t u r e M e a s u r e m e n t s - W h a t Do We Know A b o u t T h e m ? " , E . A .
H e a t P o w e r News a n d V i e w s , V o l u m e X I I I , N o . 4 6 , M a r c h 1 9 5 8 .
Farber
" V o l u m e B o i l i n g o f W a t e r a n d T h o r i u m O x i d e S l u r r y When C i r c u l a t i n g
i n a Loop a t A t m o s p h e r i c P r e s s u r e and by F r e e C o n v e c t i o n " ,
E . A . F a r b e r , Oak R i d g e N a t i o n a l L a b o r a t o r y R e p o r t , May 1 9 5 8 .
"Methods and Systems Used f o r T e m p e r a t u r e M e a s u r e m e n t " ,
A i r C o n d i t i o n i n g , H e a t i n g and V e n t i l a t i n g , J u l y 1958.
E.A.
Farber,
" E f f e c t s o f J u n c t i o n M a n u f a c t u r e o n T h e r m o c o u p l e EMF G e n e r a t i o n " ,
E . A . F a r b e r , M.R. G l i c k s t e i n , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , L - 1 0 0 , Volume X I I , No. 1 0 , O c t o b e r 1958.
196
"Selective Surfaces
December 195 8 .
and S o l a r
Absorbers",
E.A.
Farber,
"Engineering Analysis in Engineering Education",
J o u r n a l o f E n g i n e e r i n g E d u c a t i o n , Volume 4 9 , No.
1958.
ASME
Paper,
E.A.
Farber,
3, December
1959
"Engineering Analysis in
g i n e e r i n g and I n d s u t r i a l
No. 2 , F e b r u a r y 1959.
E d u c a t i o n " , E.A. F a r b e r , F l o r i d a EnE x p e r i m e n t S t a t i o n , 1 - 1 0 4 , Volume X I I I ,
" S o l a r Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data",
N a t i o n a l Summary, P u b l i s h e d M o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 5 9 .
"Time R e t a r d a t i o n i n S t a t i c
Spaces", J. Kronsbein, E.A.
N o . 3 , A u g u s t 19 5 9 .
and S t a t i o n a r y S p h e r i c a l and E l l i p t i c
F a r b e r , P h y s i c s Review, Volume 115,
" S o l a r Water H e a t i n g " , E.A. Farber,
and V e n t i l a t i n g , J u l y 1959.
Air
Conditioning,
" S e l e c t i v e S u r f a c e s and S o l a r A b s o r b e r s " ,
f o r A p p l i e d S o l a r E n e r g y , A p r i l 19 5 9 .
E.A.
Farber,
Heating
Journal
" S o l a r W a t e r H e a t i n g and Space H e a t i n g i n F l o r i d a " , E . A .
Farber,
The J o u r n a l o f S o l a r E n e r g y S c i e n c e and E n g i n e e r i n g , Volume I I I ,
No. 3, O c t o b e r 1959.
"The F l o r i d a Program i n S o l a r R e f r i g e r a t i o n and A i r
Conditioning",
E . A . F a r b e r , The J o u r n a l o f S o l a r E n e r g y S c i e n c e and E n g i n e e r i n g ,
Volume I I I , No. 3, 1959.
" S o l a r A i r C o n d i t i o n i n g w i t h Ammonia/Water A b s o r p t i o n
Refrigeration
S y s t e m " , M. E i s e n s t a d t , F . F l a n i g a n , E . A . F a r b e r , ASME P a p e r
# 5 9 - A - 2 7 6 , December 1959.
1960
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l t)ata, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f Commerce, J a n u a r y t h r o u g h December 1 9 6 0 .
" S e l e c t i v e S u r f a c e s and S o l a r A b s o r b e r s " , E . A .
E n g i n e e r i n g and I n d u s t r i a l Experiment S t a t i o n ,
# 9 , Volume X I V , No. 2 , F e b r u a r y 1960.
Farber,
Florida
Technical Report
" S o l a r Water H e a t i n g " , E.A. F a r b e r , F l o r i d a E n g i n e e r i n g and
I n d u s t r i a l E x p e r i m e n t S t a t i o n , T e c h n i c a l R e p o r t # 9 , Volume X I V ,
No. 2 , F e b r u a r y 1960.
197
"L'Uso D e l l ' E n e r g i a S o l a i r e Per I I Riscaldamento D e l l '
Aqua",
E . A . F a r b e r , E n t e N a z i o n a l e I d r o c a r b u r i , La S c u o l a i n A z i o n e ,
E s t r a t t o D a l N u m e r o 14-, San D o n a t o M i l a n e s e , A n n o D i S t u d i
1961-62, June 1962.
" C r y s t a l s o f High Temperature M a t e r i a l s Produced i n t h e S o l a r
Furnace", E.A. Farber, Report Research Analyses D i r e c t o r a t e ,
A i r Force O f f i c e o f S c i e n t i f i c Research, O f f i c e o f Aerospace
R e s e a r c h , U n i t e d S t a t e s A i r F o r c e , H o l l o m a n A F B , New M e x i c o ,
J u l y 1962.
" C r y s t a l s of High Temperature M a t e r i a l s
Furnace", E.A. F a r b e r , A i r Force O f f i c e
D i r e c t o r a t e o f R e s e a r c h A n a l y s e s , HAFB,
6 2 - 5 , J u l y 1962.
Produc-ed i n t h e S o l a r
of Scientific
Research,
New M e x i c o , P a p e r DRA-
1963
" S o l a r R a d i a t i o n D a t a " , E.A. F a r b e r , C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1 9 6 3 , Volume
1 4 , No. 1 - 1 2 .
"Summary o f
Symposium",
t h e 196 3 U n i v e r s i t y o f
E . A . F a r b e r , 40 p a g e s ,
Florida Solar
May 1 9 6 3 .
Energy
"A B r i e f H i s t o r y o f U.S. Weather Bureau" (3 p ) .
" S e l e c t i v e A b s o r p t i o n o f Energy by P a i n t e d M e t a l S u r f a c e s
when I r r a d i a t e d b y A r t i f i c i a l S o u r c e s " (3 p ) .
" T h e o r e t i c a l E f f e c t i v e R e f l e c t i v i t i e s of Drapery Materials
as a F u n c t i o n o f G e o m e t r i c C o n f i g u r a t i o n " (2 p ) .
" T h e U n i v e r s i t y o f F l o r i d a - ASHRAE S o l a r C a l o r i m e t e r " ( 2 p ) .
" A New M e t h o d o f C a l c u l a t i n g H e a t G a i n T h r o u g h S u n - L i t
G l a s s " (2 p ) .
" E x p e r i m e n t a l C o o l i n g " (3 p ) .
" U n i v e r s i t y o f F l o r i d a A i r - C o n d i t i o n i n g U n i t " (4 p ) .
" C r y s t a l s o f High Temperature M a t e r i a l s Produced i n the
S o l a r F u r n a c e " (3 p ) .
" P h o t o s y n t h e s i s " (3 p ) .
" A D o u b l e Compound T h e r m a l Image F u r n a c e f o r C o n t i n u o u s
O p e r a t i o n " (2 p ) .
" P e r f o r m a n c e o f S i n g l e E f f e c t S o l a r S t i l l s " (2 p ) .
" M u l t i p l e E f f e c t H u m i d i t y P r o c e s s " (2 p ) .
" B a s i n Type S o l a r S t i l l s " (2 p ) .
"The I n c l i n e d T r a y 'Sunagua' S o l a r S t i l l " ( 1 p ) .
" T h e o r e t i c a l E f f e c t i v e R e f l e c t i v i t i e s o f D r a p e r y M a t e r i a l s as a
F u n c t i o n o f G e o m e t r i c C o n f i g u r a t i o n " , E . A . F a r b e r , Summary o f
t h e 1 9 6 3 U n i v e r s i t y o f F l o r i d a S o l a r E n e r g y S y m p o s i u m , May 1 9 6 3 .
" T h e o r e t i c a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g Glass
w i t h I n s i d e S h a d i n g " , E . A . F a r b e r , W.A. S m i t h , C.W. P e n n i n g t o n ,
J . C . R e e d , A n n u a l M e e t i n g P a p e r , The A m e r i c a n S o c i e t y o f H e a t i n g ,
R e f r i g e r a t i n g a n d A i r C o n d i t i o n i n g E n g i n e e r s , J u n e 196 3 .
62-322 O - 7 5 - 1 4
198
" S o l a r A i r C o n d i t i o n i n g w i t h Ammonia/Water A b s o r p t i o n Ref r i g e r a t i o n S y s t e m " , M.M. E i s e n s t a d t , F . F l a n i g a n , E . A .
Farber,
F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n ,
Technical
P r o g r e s s R e p o r t No. 2 , F e b r u a r y 1 9 6 0 .
" T e s t s Prove F e a s i b i l i t y o f
F.M. F l a n i g a n , E . A . F a r b e r ,
d i t i o n i n g , June 1960.
Solar Air Conditioning",
H e a t i n g , P i p i n g , and A i r
" S o l a r W a t e r H e a t i n g , Space H e a t i n g and C o o l i n g " ,
J o u r n a l o f A p p l i e d S o l a r Energy, August 1960.
M. E i s e n s t a d t , .
Con-
E.A.
Farber,
" T e s t s P r o v e F e a s i b i l i t y o"f S o l a r A i r C o n d i t i o n i n g " , M. E i s e n s t a d t ,
F. F l a n i g a n , E . A . F a r b e r , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , Volume 3 2 , No. 1 1 , November 1 9 6 0 .
1961
"Phase Change Heat T r a n s f e r - B o i l i n g and C o n d e n s a t i o n " ,
E . A . F a r b e r , Heat T r a n s f e r Symposium P r o c e e d i n g s , March 1961.
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d M o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 6 1 .
"Performance of
U.N. Conference
"Solar Engines",
A p r i l 1961.
a S o l a r S t i l l " , C.R. G a r r e t t ,
P r o c e e d i n g s o n New S o u r c e s o f
E.A.
Farber,
Solar
Energy
E.A.
Farber,
Energy, August
Symposium
1961.
Proceedings,
" T h e Use o f S o l a r E n e r g y f o r H e a t i n g W a t e r " , E . A .
Farber,
U . N . C o n f e r e n c e P r o c e e d i n g s o n New S o u r c e s o f E n e r g y , A u g u s t
1961.
" S o l a r Energy Used f o r C o o l i n g , R e f r i g e r a t i o n " , E . A .
Farber,
U . N . C o n f e r e n c e P r o c e e d i n g s o n New S o u r c e s o f E n e r g y , A u g u s t
1961.
" A p p l i c a t i o n de L ' E n e r g i e S o l a i r e A u C h a u f f a g e
E . A . F a r b e r , U . N . C o n f e r e n c e o n New S o u r c e s o f
August 1961.
de L ' E a u " ,
Energy Proceedings,
" E m p l o i de L ' E n e r g i e S o l a i r e P o u r l a R e f r i g e r a t i o n " , E . A .
Farber,
U . N . C o n f e r e n c e P r o c e e d i n g s o n New S o u r c e s o f E n e r g y , A u g u s t 1 9 6 1 .
1962
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d M o n t h l y by t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 6 2 .
199
"The U n i v e r s i t y o f F l o r i d a S o l a r A i r C o n d i t i o n i n g U n i t " , E.A. Farber
Summary o f t h e 19 6 3 U n i v e r s i t y o f F l o r i d a S o l a r E n e r g y S y m p o s i u m ,
May 1 9 6 3 .
" C r y s t a l s o f High Temperature M a t e r i a l s Produced i n t h e Solar
F u r n a c e " , E . A . F a r b e r , Summary o f t h e 1 9 6 3 U n i v e r s i t y o f F l o r i d a
S o l a r E n e r g y S y m p o s i u m , May 19 6 3 .
" T h e o r e t i c a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g Glass
w i t h I n s i d e S h a d i n g " , E . A . F a r b e r , W . A . S m i t h , C.W. P e n n i n g t o n ,
J . C . R e e d , ASHRAE J o u r n a l , A m e r i c a n S o c i e t y o f H e a t i n g ,
R e f r i g e r a t i n g a n d A i r C o n d i t i o n i n g E n g i n e e r s , A u g u s t 196 3 .
" T h e o r e t i c a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g Glass
w i t h I n s i d e S h a d i n g " , E . A . F a r b e r , e t . a l . , T r a n s a c t i o n s , The
A m e r i c a n S o c i e t y o f H e a t i n g , R e f r i g e r a t i n g and A i r C o n d i t i o n i n g
E n g i n e e r s , 1963.
" T h e o r e t i c a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g
Glass w i t h I n s i d e Shading", E.A. Farber, e t . a l . , TP-273, F l o r i d a
E n g i n e e r i n g a n d I n d u s t r i a l E x p e r i m e n t S t a t i o n , N o v e m b e r 196 3 .
" T h e o r e t i c a l E f f e c t i v e R e f e l c t i v i t i e s , A b s o r p t i v i t i e s , and T r a n s m i s s i v i t i e s o f D r a o e r i e s as a F u n c t i o n o f G e o m e t r i c C o n f i g u r a t i o n " ,
E . A . F a r b e r , S o l a r E n e r g y , The J o u r n a l o f S o l a r E n e r g y S c i e n c e
and E n g i n e e r i n g , Volume V I I , No.
October-December 1963.
" T h e o r e t i c a l Method f o r D e t e r m i n i n g t h e Apparent R a d i a t i o n
Properties f o r M a t e r i a l s i n Sinusoidal C o n f i g u r a t i o n " , E.A.
P. V a l a n d a n i , ASME P a p e r N o . 6 3 - W A - 1 3 9 , N o v e m b e r 1 9 6 3 .
Farber,
1964
" S o l a r R a d i a t i o n D a t a " , E.A. F a r b e r , C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1964.
" C r y s t a l s o f High Temperature M a t e r i a l s Produced i n the Solar
Furnace", E.A. F a r b e r , Solar Energy, J o u r n a l o f Solar Energy
S c i e n c e and E n g i n e e r i n g , Volume V I I I , No. 1 , J a n u a r y - M a r c h 1964.
" E x p e r i m e n t a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g
G l a s s w i t h I n d o o r S h a d i n g " , E . A . F a r b e r , C.W. P e n n i n g t o n ,
W.A. S m i t h , J . C . R e e d , A m e r i c a n S o c i e t y o f H e a t i n g ,
Refrigerating
and A i r C o n d i t i o n i n g E n g i n e e r s P a p e r , J a n u a r y 1964.
Book - " S o l a r E n e r g y " , Hans R a n ; E . A . F a r b e r , C h a p t e r 1 4 ,
" T h e F u t u r e o f S o l a r E n e r g y " , M a c m i l l a n C o m p a n y , New Y o r k ,
19 6 4 .
" E x p e r i m e n t a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g Glass
w i t h Indoor Shading", E.A. Farber, e t . a l . , American Society of
H e a t i n g , R e f r i g e r a t i n g a n d A i r - C o n d i t i o n i n g E n g i n e e r s , ASHRAE
J o u r n a l , F e b r u a r y 19 6 4 .
200
"Fundamentals o f Heat T r a n s f e r A p p l i c a b l e t o t h e C i t r u s
Industry",
E.A. Farber, Proceedings - Annual C i t r u s Engineering Conference,
March 1964.
" T h e o r e t i c a l E f f e c t i v e R e f l e c t i v i t i e s , A b s o r p t i v i t i e s , and
T r a n s m i s s i v i t i e s o f D r a p e r i e s as a F u n c t i o n o f G e o m e t r i c
C o n f i g u r a t i o n " , E . A . F a r b e r , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , L e a f l e t No. 1 6 9 , Volume X V I I I , No. 2 ,
F e b r u a r y 19 6 4 .
" C r y s t a l s o f High Temperature M a t e r i a l s Produced i n the S o l a r
F u r n a c e " , E.A. F a r b e r , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , L e a f l e t N o . 17 0 , V o l u m e X V I I I , N o . 2 ,
February 1964.
" E x p e r i m e n t a l A n a l y s i s o f S o l a r Heat Gain Through I n s u l a t i n g
Glass w i t h Indoor Shading", E.A. F a r b e r , e t . a l . ,
Florida
E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , T e c h n i c a l Paper
No. 2 8 1 , Volume X V I I I , No. 4 , A p r i l 1964.
" T h e o r e t i c a l Method f o r D e t e r m i n i n g t h e Apparent R a d i a t i o n
P r o p e r t i e s f o r M a t e r i a l s i n Sinusoidal C o n f i g u r a t i o n " , E.A.
Farber,
e t . a l . , American Society of Mechanical Engineers Transactions.
Volume 8 6 , S e r i e s A , No. 4 , p p . 4 7 2 - 4 7 4 , O c t o b e r 1964.
"A 1/4 Horespower Closed Cycle S o l a r Hot A i r E n g i n e " , E.A.
Farber*
F . L . P r e s c o t t , American S o c i e t y o f Mechanical Engineers Paper
6 4 - W A / S 0 L - 5 , November 1964.
"Fundamentals o f Heat T r a n s f e r A p p l i c a b l e t o t h e C i t u r s
Industry"*
E.A. Farber, Proceedings - Annual C i t r u s Engineering Conference,
March 1964.
1965
" S o l a r R a d i a t i o n D a t a " , E.A. Farbei?, C l i m a t o l o g i c a l D a t a ,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 6 5 .
"A 1 / 3 Horespower C l o s e d C y c l e S o l & r Hot A i r E n g i n e " , E . A . F a r b e r ,
F . L . P r e s c o t t , P r o c e e d i n g s o f t h e 1965 A n n u a l M e e t i n g o f t h e
S o l a r Energy S o c i e t y , March 1965.
" T h e o r e t i c a l Method f o r D e t e r m i n i n g t h e Apparent R a d i a t i o n
P r o p e r t i e s f o r M a t e r i a l s i n S i n u s o i d a l C o n f i g u r a t i o n " , E.A.
P. V a l e n d a n i , F l o r i d a E n g i n e e r i n g a n d I n d u s t r i a l E x p e r i m e n t
T e c h n i c a l P a p e r N o . 3 0 9 , V o l u m e X I X , N o . 5 , May 1 9 6 5 .
Farber,
Statidn,
"Fundamentals o f Heat T r a n s f e r A p p l i c a b l e t o the C i t r u s
Industry",
E . A . F a r b e r , T e c h n i c a l Paper No. 310, F l o r i d a E n g i n e e r i n g and
I n d u s t r i a l E x p e r i m e n t S t a t i o n , V o l u m e X I X , N o . 5 , May 1 9 6 5 .
201
"A l/i+ Horsepower C l o s e d C y c l e S o l a r Hot A i r E n g i n e " , E.A.
Farber,
F . L . P r e s c o t t , T e c h n i c a l P r o g r e s s R e p o r t No. 1 4 , F l o r i d a E n g i n e e r i n g
and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume X I X , No. 7, J u l y 1965.
"A 1/3 Horsepower Closed Cycle S o l a r Hot A i r E n g i n e " , E.A.
Farber,
F . L . P r e s c o t t , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t
S t a t i o n , T e c h n i c a l P r o g r e s s R e p o r t No. 1 4 , Volume X I X , No. 7 ,
J u l y 1965.
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass Block
(Theoretical)",
E . A . F a r b e r , e t . a l . , A m e r i c a n S o c i e t y o f R e f r i g e r a t i o n and A i r
C o n d i t i o n i n g E n g i n e e r s T r a n s a c t i o n s , 1965.
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass
E . A . F a r b e r , e t . a l . , ASHRAE T r a n s a c t i o n s , 1 9 6 5 .
Block
(Experimental)"
"Closed Cycle Hot A i r E n g i n e s " , E.A. F a r b e r , F.L.
Prescott,
S o l a r E n e r g y , J o u r n a l o f t h e S o l a r Science and E n g i n e e r i n g ,
Volume I X , No. 4 , O c t o b e r - D e c e m b e r 1965.
" T h e D i r e c t Use o f S o l a r E n e r g y t o O p e r a t e R e f r i g e r a t i o n and A i r
C o n d i t i o n i n g S y s t e m s " , E . A . F a r b e r , P r o c e e d i n g s o f t h e 2nd T e c h n i c a l
C o n g r e s s , C o l e g i o De I n g e n i e r o s , A r q u i t e c t o s Y A g r i m e n s o r e s De
Puerto R i c o , J u l y 1965.
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass
E . A . F a r b e r , e t . a l . , ASHRAE J o u r n a l , 1 9 6 5 .
Block
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass
E . A . F a r b e r , e t . a l . , ASHRAE J o u r n a l , 1 9 6 5 .
Block,
(Theoretical)",
(Experimental)
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass B l o c k ,
(Theoretical)"
E . A . F a r b e r , e t . a l . , T e c h n i c a l Paper No. 328, F l o r i d a E n g i n e e r i n g
and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume X I X , No. 9 , S e p t e m b e r 1965.
" D e t e r m i n a t i o n o f S o l a r Heat Gain Through Glass B l o c k ,
(Experimental)
E . A . F a r b e r , e t . a l . , T e c h n i c a l P a p e r No. 3 2 8 , F l o r i d a E n g i n e e r i n g
and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume X I X , No. 9 , September 1965.
" F e a s i b i l i t y Study to Explore the Explosive E f f e c t s of L i q u i d
P r o p e l l a n t s t o Define the Mathematical Behavior o f Physical Processes
I n v o l v e d " , E . A . F a r b e r , e t . a l . , N a t i o n a l A e r o n a u t i c s and Space
A d m i n i s t r a t i o n R e p o r t NAS10-12 5 5 , F e b r u a r y 1 9 6 5 .
" T h e D i r e c t Use o f S o l a r E n e r g y t o O p e r a t e R e f r i g e r a t i o n and A i r
C o n d i t i o n i n g Systems", E.A. Farber, Technical Progress Report
No. 1 5 , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n ,
Volume X I X , No. 1 1 , N o v e m b e r 196 5 .
202
1956
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 6 6 .
Book - " M a r k ' s M e c h a n i c a l E n g i n e e r s ' H a n d b o o k " , E . A .
Farber,
c o n t r i b u t e d t h e s e c t i o n on Hot A i r E n g i n e s , 7 t h E d i t i o n ,
M c G r a w - H i l l B o o k C o m a p n y , New Y o r k , 19 6 6 .
" O p e r a t i o n and P e r f o r m a n c e o f t h e U n i v e r s i t y o f F l o r i d a S o l a r
A i r C o n d i t i o n i n g System", E.A. Farber, e t . a l . , Solar Energy,
J o u r n a l o f S o l a r S c i e n c e a n d E n g i n e e r i n g , Volume X , No. 2 ,
A p r i l - J u n e 1966.
"A B i b l i o g r a p h y o f A u t h o r a t a t i v e Sources
and Chemical P r o p e r t i e s o f F l u o r i n e and i
and Compounds", N a t i o n a l A e r o n a u t i c s and
R e p o r t , P a r t I , E.A. F a r b e r , NAS10-1255,
Defining the Physical
t s Oxidizing Mixtures
Space A d m i n i s t r a t i o n
A p r i l 1965.
"A B i b l i o g r a p h y o f A u t h o r a t a t i v e Sources D e f i n i n g t h e P h y s i c a l
and C h e m i c a l P r o p e r t i e s o f F l u o r i n e and i t s O x i d i z i n g M i x t u r e s
and Compounds", E . A . F a r b e r , N a t i o n a l A e r o n a u t i c s and Space
A d m i n i s t r a t i o n R e p o r t , P a r t I I ( C o n f i d e n t i a l ) , NAS10-12 55,
A p r i l 1965.
"Thermocouple G r i d Method A p p l i e d t o S t u d y i n g L i q u i d M i x i n g " ,
E . A . F a r b e r , e t . a l . , N a t i o n a l A e r o n a u t i c s and Space A d m i n i s t r a t i o n
R e p o r t , NAS10-1255, March 1966.
"A M a t h e m a t i c a l Model f o r D e f i n i n g E x p l o s i v e Y i e l d and M i x i n g
P r o b a b i l i t i e s o f L i q u i d P r o p e l l a n t s " , E.A. Farber, Proceedings
o f t h e T h i r d Space C o n g r e s s , Cocoa Beach, FL, M a r c h 1966.
"A S y s t e m a t i c A p p r o a c h f o r t h e A n a l y t i c a l A n a l y s i s and P r e d i c t i o n of the Y i e l d from Liquid Propellant Explosions",
E . A . F a r b e r , J . H . D e e s e , P r o c e e d i n g s o f t h e T h i r d Space C o n g r e s s ,
Cocoa Beach, F l o r i d a , March 1966.
" S t u d i e s a n d A n a l y s i s o f t h e M i x i n g Phenomena o f L i q u i d P r o p e l l a n t s Leading t o a Yield-Time Function R e l a t i o n s h i p " , E.A.
Farber,
R. S a n M a r t i n , P r o c e e d i n g s o f t h e New Y o r k A c a d e m y o f S c i e n c e s
E x p l o s i v e s Symposium, October 1966.
" F i r e b a l l H y p o t h e s i s D e s c r i b i n g t h e R e a c t i o n F r o n t and Shock
Wave B e h a v i o r i n L i q u i d P r o p e l l a n t E x p l o s i o n s " , E . A .
Farber,
J . G i l b e r t , P r o c e e d i n g s o f t h e New Y o r k A c a d e m y o f S c i e n c e s
E x p l o s i v e s Symposium, October 1966.
203
1956
" S o l a r R a d i a t i o n D a t a " , E.A. F a r b e r , C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r
B u r e a u , D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 19 6 7 .
"A M a t h e m a t i c a l M o d e l f o r D e f i n i n g E x p l o s i v e Y i e l d and M i x i n g
P r o b a b i l i t i e s o f L i q u i d P r o p e l l a n t s " , E.A. Farber,
Florida
E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , T e c h n i c a l Paper
No. 3 4 6 , Volume XX, No. 3 , M a r c h 1966.
"A S y s t e m a t i c A p p r o a c h f o r t h e A n a l y t i c a l A n a l y s i s and P r e d i c t i o n of the Y i e l d from Liquid Propellant
Explosion",
E . A . F a r b e r , J . H . D e e s e , T e c h n i c a l P a p e r No. 3 4 7 , F l o r i d a
E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume XX, No.
3 , M a r c h 19 6 6 .
" S t u d i e s and A n a l y s e s
p e l l a n t s Leading t o a
E . A . F a r b e r , R . L . San
E n g i n e e r i n g and I n d u s
8, August 1967.
o f t h e M i x i n g Phenomena o f L i q u i d P r o Yield-Time Function Relationship",
M a r t i n , T e c h n i c a l Paper No. 3 8 6 , F l o r i d a
t r i a l E x p e r i m e n t S t a t i o n , Volume X X I , No.
" F i r e b a l l H y p o t h e s i s D e s c r i b i n g t h e R e a c t i o n F r o n t and Shock
Wave B e h a v i o r i n L i q u i d P r o p e l l a n t E x p l o s i o n s " , E . A .
Farber,
J . S . G i l b e r t , T e c h n i c a l Paper No. 3 8 7 , F l o r i d a E n g i n e e r i n g and
I n d u s t r i a l E x p e r i m e n t S t a t i o n , V o l u m e X X I , N o . 8 , A u g u s t 19 6 7 .
" F i r e b a l l C o m p o s i t i o n and A t m o s p h e r i c C h e m i s t r y o f F u e l / O x y g e n F l u o r i n e P r o p e l l a n t s " , E.A. Farber, e t . a l . , N a t i o n a l Aeronautics
a n d S p a c e A d m i n i s t r a t i o n R e p o r t NAS 1 0 - 1 2 5 5 , J u l y 1 9 6 7 .
" T h e r m o c o u p l e G r i d A n a l y s i s o f Two 2 5 , 0 0 0 L b . L o x / R p L i q u i d
P r o p e l l a n t E x p l o s i o n E x p e r i m e n t s " , E.A. F a r b e r , T e c h n i c a l Paper
N o . 39 6 , F l o r i d a E n g i n e e r i n g a n d I n d u s t r i a l E x p e r i m e n t
Station,
V o l u m e X X I , N o . 1 1 , N o v e m b e r 19 6 7 .
" C o m b i n i n g t h e C o l l e c t o r and G e n e r a t o r o f a S o l a r
System", E.A. F a r b e r , e t . a l . , American Society o f
E n g i n e e r s , 7 6 - W A / S 0 L - 4 , November 1967.
Refrigeration
Mechanical
1968
"Solar Radiation D a t a " , E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1968.
" S o l a r E n e r g y , C o n v e r s i o n and U t i l i z a t i o n " , E.A. F a r b e r ,
Nucleus, Q u a r t e r l y J o u r n a l o f the P a k i s t a n Atomic Energy
m i s s i o n , Volume 5 , Nos. 1 - 2 , J a n u a r y - J u n e 1968.
The
Com-
204
" E x p l o s i v e Y i e l d E s t i m a t e s f o r L i q u i d P r o p e l l a n t Rockets Based
Upon a M a t h e m a t i c a l M o d e l " , E . A . F a r b e r , T e c h n i c a l p a p e r No. 6 ,
F l o r i d a E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume
X X I I , No. 7 , J u l y 1968.
"Interp
Rocket
No. 7 ,
Volume
r e t a t i o n o f Explosive Y i e l d Values obtained from L i q u i d
P r o p e l l a n t E x p l o s i o n s " , E.A. F a r b e r , T e c h n i c a l Paper
F l o r i d a E n g i n e e r i n g and I n d u s t r i a l Experiment
Station,
X X I I , N o . 7 , J u l y 19 6 8 .
Book - " H o t - A i r E n g i n e s " , E . A . F a r b e r , S e c t i o n c o n t r i b u t e d t o
t h e 7 t h E d i t i o n o f t h e S t a n d a r d Handbook f o r M e c h a n i c a l E n g i n e e r s
( E d i t o r s B a u m e i s t e r 8 M a r k s ) , M c G r a w - H i l l Book Company, 1 9 6 8 .
" C h a r a c t e r i s t i c s o f L i q u i d Rocket P r o p e l l a n t E x p l o s i o n Phenomena",
2 papers pp. 654-665, pp. 666-684, E.A. F a r b e r ,
et.al.,
P r e v e n t i o n o f and P r o t e c t i o n A g a i n s t A c c i d e n t a l E x p l o s i o n o f
M u n i t i o n s , F u e l s a n d O t h e r H a z a r d o u s M i x t u r e s , A n n a l s o f t h e New
Y o r k Academy o f S c i e n c e s , Volume 1 5 2 , A r t . 1 , pages 1 - 9 1 3 ,
October 1968.
( T h e p a p e r s w e r e p r e s e n t e d a t New Y o r k A c a d e m y
of Sciences Meeting, October 10-13, 1966).
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and O t h e r C h a r a c t e r i s t i c s
of
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r ,
et.al.,
N a t i o n a l A e r o n a u t i c s a n d S p a c e A d m i n i s t r a t i o n R e p o r t , 3 68 p p ,
October 1968.
( T h i s r e p o r t has been a c c l a i m e d by t h e General
E l e c t r i c Company as a " C l a s s i c R e f e r e n c e f o r t h e I n d u s t r y " ) .
" S o l a r Power", E.A. Farber, American
E n g i n e e r s , P a p e r , December 1968.
Society
of
Mechanical
1969
" S o l a r Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1969.
"Combining t h e C o l l e c t o r and G e n e r a t o r o f a S o l a r R e f r i g e r a t i o n
S y s t e m " , E . A . F a r b e r , e t . a l . , T e c h n i c a l Paper No. 4 2 6 , F l o r i d a
E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t S t a t i o n , Volume X X I I I ,
No. 1 , J a n u a r y 1969.
" F l u i d i c s - A New T o o l f o r C o n t r o l s " , E . A . F a r b e r , T e c h n i c a l
P a p e r N o . 42 7 , F l o r i d a E n g i n e e r i n g a n d I n d u s t r i a l E x p e r i m e n t
S t a t i o n , Volume X X I I I , No. 2 , F e b r u a r y 1 9 6 9 .
" S o l a r Energy - C o n v e r s i o n and U t i l i z a t i o n " , E . A .
Farber,
T e c h n i c a l Paper No. 4 3 9 , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , Volume X X I I I , No. 7 , J u l y 1969.
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and O t h e r C h a r a c t e r i s t i c s
of
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r ,
(paper
p r e s e n t e d u p o n s p e c i a l i n v i t a t i o n a t t h e 1969 C r y o g e n i c E n g i n e e r i n g C o n f e r e n c e ) Los A n g e l e s , C a l i f o r n i a , June 1969.
205
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and O t h e r C h a r a c t e r i s t i c s o f
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r , Proceedings
o f t h e E l e v e n t h E x p l o s i v e s S a f e t y S e m i n a r , Armed S e r v i c e s
E x p l o s i v e s Board, September 1969, pp. 573-612.
" S u p e r c h a r g e d and Water I n j e c t e d S t e r l i n g
American Society of Mechanical Engineers,
November 1969.
Engine", E.A. Farber,
Paper No. 69-WA/SOL-3,
" C h a r a c t e r i s t i c s o f L i q u i d Rocket P r o p e l l a n t E x p l o s i o n Phenomena",
E.A. F a r b e r , P a r t V I I I , F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
E x p e r i m e n t S t a t i o n , T e c h n i c a l Paper No. 4 4 8 , Volume X X I I I ,
No. 1 1 , November 196 9 .
1970
" S o l a r R a d i a t i o n D a t a " , E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 197 0 .
" S u p e r c h a r g e d and Water I n j e c t e d S o l a r Hot A i r E n g i n e " ,
P r o c e e d i n g s 1970 I n t e r n a t i o n a l S o l a r E n e r g y C o n f e r e n c e ,
A u s t r a l i a , March 1970.
E.A. Farber,
Melbourne,
" D e s i g n and P e r f o r m a n c e o f a Compact S o l a r R e f r i g e r a t i o n
E . A . F a r b e r , P r o c e e d i n g s 1970 I n t e r n a t i o n a l S o l a r E n e r g y
Conference, Melbourne, A u s t r a l i a , March 1970.
System",
Society
" V i b r a t i o n and N o i s e " , E . A . F a r b e r , T r a n s a c t i o n s o f t h e 1970
C i t r u s Engineering Conference, American Society of Mechanical
E n g i n e e r s , V o l u m e X V I , M a r c h 197 0 .
" S u n Power H a r n e s s e d t o
Mechanical Engineering,
Run E q u i p m e n t
A p r i l 197 0.
at
Solar
Energy
Laboratory",
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and Other C h a r a c t e r i s t i c s o f
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. Farber, F i r s t Western
Space C o n g r e s s P r o c e e d i n g s , V a n d e n b e r g S c i e n t i f i c and T e c h n i c a l
S o c i e t i e s C o u n c i l , October 1970.
" A C o m p a c t S o l a r R e f r i g e r a t i o n S y s t e m " , E . A . F a r b e r , P a p e r #70WA/
SDL-4, American S o c i e t y o f Mechanical E n g i n e e r s , Annual M e e t i n g ,
D e c e m b e r 19 7 0 .
1971
"Solar R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data, N a t i o n a l
Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u , D e p a r t m e n t
o f Commerce, J a n u a r y t h r o u g h December 1 9 7 0 .
206
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and O t h e r C h a r a c t e r i s t i c s o f
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r , D i r e c t o r y
o f F i r e R e s e a r c h i n t h e U n i t e d S t a t e s , N a t i o n a l Academy o f S c i e n c e s .
" S o l a r E n e r g y , i t s C o n v e r s i o n and U t i l i z a t i o n " , E.A.
Farber,
Proceedings, I n t e r n a t i o n a l Solar Energy Society Conference,
May 1 9 7 1 .
A l s o t o be p u b l i s h e d i n t h e I n t e r n a t i o n a l S o l a r E n e r g y
Society Journal.
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and O t h e r C h a r a c t e r i s t i c s o f
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r ,
Proceedings,
F i r s t W e s t e r n Space C o n g r e s s , V a n d e n b e r g , S c i e n t i f i c and
T e c h n i c a l S o c i e t i e s , February 1971.
" C r i t i c a l Mass ( H y p o t h e s i s a n d V e r i f i c a t i o n ) o f L i q u i d R o c k e t
P r o p e l l a n t s ' , E . A . F a r b e r , P r o c e e d i n g s , Armed S e r v i c e s E x p l o s i v e s
S a f e t y Board Annual M e e t i n g , September 1971 P r o c e e d i n g s .
" H i g h l i g h t s o f t h e 1971 I n t e r n a t i o n a l S o l a r
E . A . F a r b e r , ASME P a p e r # 7 1 - W A / S O L - 6 A n n u a l
December 1971.
Energy S o c i e t y M e e t i n g " ,
M e e t i n g o f ASME,
"The U n i v e r s i t y o f F l o r i d a E l e c t r i c A u t o m o b i l e " , E.A.
Farber,
H . R . A . S c h a e p e r , ASME P a p e r # 7 1 - W A / S 0 L - 4 A n n u a l M e e t i n g o f
ASME, D e c e m b e r 1 9 7 1 .
1972
" S o l a r Radiation Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1970.
" C r i t i c a l Mass ( H u p o t h e s i s and V e r i f i c a t i o n ) o f L i q u i d R o c k e t
P r o p e l l a n t s " , E.A. Farber, Report #9, C h a r a c t e r i s t i c s o f L i q u i d
R o c k e t P r o p e l l a n t E x p l o s i o n Phenomena R e p o r t S e r i e s , U n i v e r s i t y
o f F l o r i d a , 1972.
" S o l a r E n e r g y " C o n v e r s i o n and U t i l i z a t i o n " ,
S y s t e m s D e s i g n , J u n e 1 9 7 2 .(
E.A.
Farber,
Building
" S o l a r E n e r g y " C o n v e r s i o n and U t i l i z a t i o n " , E.A. F a r b e r , P r o c e e d i n g s
21st Annual A i r Conditioning Conference, U n i v e r s i t y of F l o r i d a , .
February 1972.
" S o l a r Energy U t i l i z a t i o n : A Plan f o r A c t i o n " , prepared f o r the
O f f i c e o f S c i e n c e and T e c h n o l o g y , F e d e r a l C o u n c i l on S c i e n c e
a n d T e c h n o l o g y , C o m m i t t e e o n E n e r g y RSD G o a l s , p r e p a r e d b y t h e
S o l a r Energy Panel (E.A. F a r b e r , p a n e l member), J u l y 1972.
" S o l a r E n e r g y - The U n i v e r s i t y o f F l o r i d a
F l o r i d a Magazine, March 26, 1972.
Solar
House",
E.A.
Farber,
207
"The Sun: Heat S o u r c e o f t h e P a s t . . . P o w e r Source
Doug W o r t h , F l o r i d a E n g i n e e r , O c t o b e r 1 9 7 2 .
of
the
Future",
" T h e S o l a r E r a - The U n i v e r s i t y o f F l o r i d a
'Electric'
H . R . A . Schaeper and E . A . F a r b e r , M e c h a n i c a l E n g i n e e r i n g ,
November 1972.
" E l e c t r o s t a t i c Charge G e n e r a t i o n and A u t o - I g n i t i o n R e s u l t s o f
L i q u i d Rocket P r o p e l l a n t E x p e r i m e n t s " , E.A. F a r b e r ,
et.al.,
R e s e a r c h R e p o r t No. X, F l o r i d a E n g i n e e r i n g and I n d u s t r i a l
Experiment S t a t i o n , College of Engineering, U n i v e r s i t y of F l o r i d a ,
G a i n e s v i l l e , October 1972.
" S o l a r E n e r g y C o n v e r s i o n R e s e a r c h and Development a t t h e U n i v e r s i t y
o f F l o r i d a S o l a r Energy and Energy C o n v e r s i o n L a b o r a t o r y " ,
E.A. F a r b e r , R e p r i n t f r o m t h e a r t i c l e i n B u i l d i n g Systems D e s i g n ,
J u n e 197 2 .
" H y d r o g e n and Oxygen Sensor D e v e l o p m e n t " , E . A . F a r b e r ,
et.al.,
N a t i o n a l A e r o n a u t i c s and Space A d m i n i s t r a t i o n R e p o r t , O c t o b e r
1 9 7 2 , 156 p p .
" S o l a r E n e r g y : I t s C o n v e r s i o n and U t i l i z a t i o n " , P r o c e e d i n g s
t h e 1971 DuPont E n v i r o n m e n t a l E n g i n e e r i n g S e m i n a r ,
Bulletin
S e r i e s 137, E n g i n e e r i n g and I n d u s t r i a l E x p e r i m e n t
Station,
D e c e m b e r 197 2 .
of
1973
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y by t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f C o m m e r c e , J a n u a r y t h r o u g h D e c e m b e r 197 3 .
" E n e r g y - Resources and U t i l i z a t i o n " , E . A .
o f t h e 1973 C i t r u s E n g i n e e r i n g C o n f e r e n c e ,
Farber, Proceedings
March 1973.
"Non D e s t r u c t i v e S t r u c t u r a l I n t e g r i t y and Flaw D e t e r m i n a t i o n
U s i n g I n f r a - R e d S c a n n i n g and P a t t e r n R e c o g n i t i o n T e c h n i q u e s " ,
E . A . F a r b e r , e t . a l . , N a t i o n a l A e r o n a u t i c s and Space A d m i n i s t r a t i o n
R e p o r t , J a n u a r y 197 3.
" T h e A p p l i c a t i o n o f S o l a r E n e r g y t o Sewage D i g e s t i o n a n d L i q u i d
W a s t e R e c y c l i n g " , E . A . F a r b e r , The I n s t i t u t e o f P l u m b i n g ,
A u s t r a l i a , M a r c h 197 3 .
" S o l a r Energy", E.A.
A s s o c i a t i o n Congress
Farber, Proceedings of the American Medical
o n E n v i r o n m e n t a l H e a l t h , A p r i l 197 3 .
"The U n i v e r s i t y o f F l o r i d a S o l a r Energy L a b o r a t o r y " , E.A.
Farber,
P r o c e e d i n g s o f t h e 197 3 I n t e r n a t i o n a l S o l a r E n e r g y S o c i e t y M e e t i n g ,
P a r i s , F r a n c e , J u l y 197 3 .
208
"The U n i v e r s i t y o f F l o r i d a Solar House", E.A. Farber,
et.al.,
P r o c e e d i n g s o f t h e 197 3 I n t e r n a t i o n a l S o l a r E n e r g y S o c i e t y
M e e t i n g , P a r i s , F r a n c e , J u l y 197 3.
"The U n i v e r s i t y o f F l o r i d a S o l a r - E l e c t r i c C a r " , E.A.
Farber,
e t . a l . , Proceedings o f the I n t e r n a t i o n a l Solar Energy Society
M e e t i n g , P a r i s , F r a n c e , J u l y 197 3.
"The S o l a r H e a t i n g o f Swimming P o o l s " ,
Proceedings of the I n t e r n a t i o n a l Solar
P a r i s , France, J u l y 1973.
" S o l a r Powered V-2 Vapor E n g i n e " ,
o f the I n t e r n a t i o n a l Solar Energy
J u l y 1973.
E.A. Farber,
et.al.,
Energy Society Meeting,
E.A. F a r b e r , e t . a l . ,
Proceedings
Society Meeting, Paris, France,
" S o l a r Energy - I t s C o n v e r s i o n and U t i l i z a t i o n " , E.A.
Space f o r M a n k i n d ' s B e n e f i t , N a t i o n a l A e r o n a u t i c s and
A d m i n i s t r a t i o n , January 1973.
"The Energy C r i s i s - Tapping t h e
O p t i c a l S p e c t r a , M a r c h 197 3 .
Sun",
E.A.
Farber,
Farber,
Space
et.al.,
" T h e A p p l i c a t i o n o f S o l a r E n e r g y t o Sewage D i g e s t i o n a n d L i q u i d
Waste R e c y c l i n g " , E . A . F a r b e r , P r o c e e d i n g s , 3 r d C o n v e n c t i o n
o f I n s t i t u t e o f P l u m b i n g , A u s t r a l i a , A d e l a i d e , M a r c h 197 3.
1974
" S o l a r R a d i a t i o n Data", E.A. Farber, C l i m a t o l o g i c a l Data,
N a t i o n a l Summary, P u b l i s h e d m o n t h l y b y t h e U . S . W e a t h e r B u r e a u ,
D e p a r t m e n t o f Commerce, J a n u a r y t h r o u g h December 1974.
" S m i t h o n i a n S c i e n c e I n f o r m a t i o n E x c h a n g e " , L i s t e d many o f o u r
p r o j e c t s c a r r i e d on a t t h e S o l a r Energy and Energy C o n v e r s i o n
Laboratory, University of Florida.
Book - " T o p i c s i n E n e r g y and R e s o u r c e s " , E . A .
S o l a r Energy - I t s C o n v e r s i o n and U t i l i z a t i o n
P l e n u m P r e s s , New Y o r k a n d L o n d o n , 19 7 4 .
Farber,
et.al.,
pp. 23-60,
B o o k - " E n e r g y , t h e E n v i r o n m e n t , a n d Human H e a l t h " , E . A .
Farber,
e t . a l . , American M e d i c a l A s s o c i a t i o n , Congress on E n v i r o n m e n t a l
H e a l t h , P u b l i s h i n g Sciences Group, I n c . A c t o n , M a s s . , 1974.
" D e v e l o p m e n t and Use o f S o l a r D a t a f o r S o u t h F a c i n g S u r f a c e s i n
N o r t h e r n L a t i t u d e s " , E.A. F a r b e r , e t . a l . , Symposium P r o c e e d i n g s
o f t h e 1 9 7 4 A n n u a l ASHRAE M e e t i n g , M o n t r e a l , C a n a d a , 1 9 7 4 .
Book - " S o l a r D a t a f o r S o u t h F a c i n g S u r f a c e s i n N o r t h e r n
1 9 7 4 ASHRAE A p p l i c a t i o n s G u i d e , ASHRAE, New Y o r k , 1 9 7 4 .
Latitudes",
209
" D e v e l o p m e n t a n d Use o f S o l a r D a t a f o r S o u t h F a c i n g S u r f a c e s i n
N o r t h e r n L a t i t u d e s " , E . A . F a r b e r , e t . a l . , ASHRAE T r a n s a c t i o n s ,
P a r t I I , Volume 80, 1974.
"Space S h u t t l e Thermal P r o t e c t i o n System C o n d i t i o n Assessment
by Thermal R a d i a t i o n A n a l y s i s T e c h n i q u e s " , E.A. F a r b e r ,
et.al.,
NASA R e p o r t N A S - 1 0 - 8 0 5 1 , F e b r u a r y 1 9 7 4 .
"Ammonia and O t h e r A b s o r p t i o n Systems Used i n S o l a r
E . A . F a r b e r , NSF W o r k s h o p P r o c e e d i n g s , L o s A n g e l e s ,
" S o l a r Energy
DOMUS, M i l a n ,
- I t s C o n v e r s i o n and U t i l i z a t i o n " ,
I t a l y , May 1 9 7 4 .
Applications",
February 1974.
E.A.
Farber,
"The Present S t a t u s o f t h e U t i l i z a t i o n o f S o l a r Energy i n t h e
U n i v e r s i t y o f F l o r i d a and t h e U n i t e d S t a t e s " , E . A . F a r b e r ,
P r o c e e d i n g s o f t h e 1974 C o n g r e s s o f t h e J a p a n I n d u s t r i a l P l a n n i n g
A s s o c i a t i o n , Tokyo, 1974.
"Heating in Solar
o f 1974 C o n g r e s s ,
Energy U t i l i z a t i o n " ,
J I P A , Tokyo, 1974.
E.A.
Farber,
Proceedings
"Cooling in Solar
o f 1974 C o n g r e s s ,
Energy U t i l i z a t i o n " ,
J I P A , Tokyo, 1974.
E.A.
Farber,
Proceddings
"Hot Water Supply i n Solar Energy U t i l i z a t i o n " , E.A.
P r o c e e d i n g s o f 1974 C o n g r e s s , J I P A , T o k y o , 1974.
Book - " H a n d b o o k o f
E a r t h News, S p e c i a l
Homemade P o w e r " , p p . 2 0 5 - 2 2 2 , T h e M o t h e r
E d i t i o n , A B a n t a m , B o o k , May 1 9 7 4 .
"Solar Energy", E.A. Farber, Proceedings of
C o o l i n g and Energy C o n s e r v a t i o n C o n f e r e n c e ,
o f C o l o r a d o , D e n v e r , May 1 9 7 4 .
Solar Heating
Environmental
" U n i v e r s i t y o f F l o r i d a S o l a r E n e r g y Lab and T e s t
Systems D e s i g n , J u n e / J t f l y 1974, p . 33.
" S o l a r Energy I t s
M a g a z i n e , 19 7 4 .
Farber,
Conversion
and U t i l i z a t i o n " ,
House",
reprinted
and
Action
Building
in
N0AA
" S o l a r Energy - I t s C o n v e r s i o n and U t i l i z a t i o n " , E . A . F a r b e r ,
Proceedings of the Annual Meeting of the National Association
o f R e g u l a t o r y U t i l i t y C o m m i s s i o n e r s , New Y o r k C i t y , J u l y 1 9 7 4 .
" F o r m u l a t i o n o f a D a t a Base f o r t h e A n a l y s i s , E v a l u a t i o n and
S e l e c t i o n o f a Low T e m p e r a t u r e S o l a r A i r C o n d i t i o n i n g S y s t e m " ,
E.A. F a r b e r , e t . a l . , N a t i o n a l Science Foundation Report,
NSF/RANN/SE/GI-39323/FR/74/2, J u l y 1974.
" G r u n d s a e t z l i c h e Probleme d e r Umwandlung und Verwendung von
S o n n e n e n e r g i e " , E . A . F a r b e r , ETZ, E l e c t r o t e c h n i s c h e
Zeitschrift,
A u s g a b e A , 95 J a h r g a n g H e f t 1 2 , D e c e m b e r 1 9 7 4 , s - 6 2 9 - 7 0 8 .
210
" S o n n e n e n e r g i e - V e r w i r k l i c h u n g und E r w a r t u n g " , E.A.
Farber,
Annual Meeting Proceedings of the Verein Schweizerischer
E l e k t r o t e c h n i k e r , L a u s a n n e , S w o t z e r l a n d , O c t o b e r 19 7 4 .
" G r u n d s a e t z l i c h e Probleme d e r Umwandlung und Verwendung von
S o n n e n e n e r g i e " , E . A . F a r b e r , P r o c e e d i n g s o f t h e 5 8 , VDEHauptversammlung, Hamburg, O c t o b e r 1974.
" F o c u s i n g C o l l e c t o r s " , E.A. F a r b e r , Worskhop P r o c e e d i n g s
S o l a r C o l l e c t o r s f o r H e a t i n g and C o o l i n g o f B u i l d i n g s ,
N S F , N o v e m b e r 1 9 7 4 , New Y o r k C i t y .
on
" F o r m u l a t i o n o f a D a t a Base f o r t h e A n a l y s i s a n d E v a l u a t i o n a n d
S e l e c t i o n o f a Low T e m p e r a t u r e S o l a r P o w e r e d A i r
Conditioning
S y s t e m " , E . A . F a r b e r , e t . a l . , ASME P a p e r # 7 4 - W A / S 0 L 6 ,
November 1974.
"A Case S t u d y : U t i l i z a t i o n o f S o l a r E n e r g y i n R e s i d e n t i a l
D w e l l i n g s " , E . A . F a r b e r , e t . a l . , ASME P a p e r # 7 4 - W A / S O L 2 ,
November 1974.
" S o l a r C h a r a c t e r i s t i c s o f New A b s o r p t i v e C o a t i n g U s e d a s a
Solar S e l e c t i v e C o a t i n g " , E.A. Farber, e t . a l . , U.S.
Section
Meeting, I n t e r n a t i o n a l Solar Energy S o c i e t y , F t .
Collins,
C o l o r a d o , A u g u s t 19 7 4 .
" C o n s i d e r a t i o n s i n t h e E v a l u a t i o n a n d S e l e c t i o n o f a Low
T e m p e r a t u r e S o l a r Powered A i r C o n d i t i o n i n g S y s t e m " , E.A.
e t . a l . , U.S. S e c t i o n Meeting, I n t e r n a t i o n a l Solar Energy
F t . C o l l i n s , C o l o r a d o , August 1974.
Farber,
Society,
" A Case S t u d y " U t i l i z a t i o n o f S o l a r E n e r g y i n R e s i d e n t i a l
D w e l l i n g s " , E.A. F a r b e r , e t . a l . , U.S. S e c t i o n Meeting,
Intern a t i o n a l Solar Energy S o c i e t y , F t . C o l l i n s , Colorado, August
1974.
" S o l a r Energy - I t s C o n v e r s i o n and U t i l i z a t i o n " , E.A. F a r b e r ,
Records o f t h e F e d e r a l Energy A d m i n i s t r a t i o n H e a r i n g s , P r o j e c t
Independence, A t l a n t a , G e o r g i a , September 1974.
1975
" P r e d i c t i o n o f E x p l o s i v e Y i e l d and Other C h a r a c t e r i s t i c s o f
L i q u i d P r o p e l l a n t Rocket E x p l o s i o n s " , E.A. F a r b e r , D i r e c t o r y
o f F i r e R e s e a r c h i n t h e U . S . N a t i o n a l Academy o f S c i e n c e ,
Washington, D.C.
1975.
"Sonnenenergie",
D, 6792 D , 1 9 7 5 ,
E.A.
75.
F a r b e r , UMSCHAU ( i n
J a h r g a n g , 3.
Wissenschaft
un
" D e v e l o p m e n t a n d Use o f S o l a r I n s o l a t i o n D a t a i n N o r t h e r n
L a t i t u d e s f o r South Facing Surfaces", E.A. Farber,
et.al.,
ASHRAE T r a n s a c t i o n s , V o l u m e 8 0 , P a r t 2 , 1 9 7 4 .
Technik)
211
" E x p l o s i v e Y i e l d L i m i t i n g S e l f - I g n i t i o n Phenomena i n L O ^ / L H ^
and LO^/RP-l M i x t u r e s " , E.A. F a r b e r , Proceedings o f t h e
1 1 t h I n t e r n a t i o n a l Symposium on Space T e c h n o l o g y 8 S c i e n c e ,
T o k y o , J u l y 197 5 .
" S t u d y o n New A b s o r p t i v e C o a t i n g s f o r U s e i n S o l a r C o l l e c t o r s " ,
E.A. Farber, e t . a l . , Proceedings 21st Annual Meeting,
Institute
o f E n v i r o n m e n t a l S c i e n c e s , Anaheim, CA., A p r i l 1975.
"Methodology o f Research o f F l a t - P l a t e Solar C o l l e c t o r A b s o r p t i v e
C o a t i n g s ' , E.A. Farber, e t . a l . , Proceedings 21st Annual Meeting,
I n s t i t u t e o f E n v i r o n m e n t a l Sciences, Anaheim, CA., A p r i l 1975.
" A Case S t u d y : S o l a r - E l e c t r i c Power P l a n t f o r R e s i d e n t i a l
D w e l l i n g s " , E.A. Farber, e t . a l . , Proceedings 21st Annual Meeting,
I n s t i t u t e o f E n v i r o n m e n t a l Sciences, Anaheim, CA., A p r i l 1975.
"Heating Buildings w i t h Solar Energy", E.A. Farber,
et.al.,
Proceedings 21st Annual Meeting, I n s t i t u t e of Environmental
Sciences, Anaheim, CA., A p r i l 1975.
"Heat T r a n s f e r A s p e c t s o f a S o l a r Powered Cooking D e v i c e w i t h
24 H o u r S e r v i c e " , E . A . F a r b e r , e t . a l . , P r o c e e d i n g s , 2 1 s t A n n u a l
M e e t i n g , I n s t i t u t e o f E n v i r o n m e n t a l S c i e n c e s , A n a h e i m , A p r i l 197 5 .
"A S o l a r Powered T r a c k i n g D e v i c e f o r S o l a r C o n c e n t r a t o r s " ,
E.A. Farber, e t . a l . , Proceedings, 21st Annual Meeting,
Institute
o f E n v i r o n m e n t a l S c i e n c e s , A n a h e i m , CA, A p r i l 197 5 .
" S o l a r C a l o r i m e t r y " , E.A.
Annual Meeting, I n s t i t u t e
CA., A p r i l 1975.
Farber, e t . a l . , Proceedings, 21st
o f Environmental Sciences, Anaheim,
"The U n i v e r s i t y o f F l o r i d a S o l a r Powered C o n t i n u o u s NH3/H20
Absorption A i r C o n d i t i o n e r " , E.A. Farber, e t . a l . ,
Proceedings,
21st Annual Meeting, I n s t i t u t e o f Environmental Sciences,
Anaheim, CA., A p r i l 1975.
"The U n i v e r s i t y o f F l o r i d a S o l a r Powered I n t e r m i t t e n t NH./H 0
Absorption A i r C o n d i t i o n e r " , E.A. Farber, e t . a l . ,
Proceedings,
21st Annual Meeting, I n s t i t u t e o f Environmental Sciences,
Anaheim, CA., A p r i l 1975.
"A F e a s i b i l i t y Study t o T e s t S t r u c t u r e I n t e g r i t y by I n f r a r e d
Scanning Technique", E.A. Farber, e t . a l . , Proceedings o f the
1 4 t h I n t e r n a t i o n a l C o n f e r e n c e o n T h e r m a l C o n d u c t i v i t y , 197 5 .
"A S o l a r Powered T r a c k i n g D e v i c e f o r S o l a r C o n c e n t r a t o r s " ,
E.A. F a r b e r , e t . a l . , J o u r n a l o f E n v i r o n m e n t a l Sciences, May/June
1975 .
212
The Solar Electric Car —
Urban Vehicle Performance
by
SCHAEPER
H. R. A.
Assistant Professor of Mechanical
Engineering
University of Florida, Gainesville, Florida 32611
USA
E. A.
FARBER
Professor & Research Professor of Mechanical
Engineering
Director, Solar Energy & Energy Conversion
Laboratory
University of Floridoy Gainesville, Florida 32611
USA
ABSTRACT
The solar electric automobile under discussion here is part of the urban vehicle
project of the Solar Energy and Energy Conversion Laboratory of the University of
Florida, concerning itself with the generation of pollution free power for city transportation.
The test bed vehicle, a converted G M Corvair, which is driven through the city
daily, has a novel transistorized field excitation system for variable speed control
and regenerative braking to improve the overall power conversion efficiency.
Performance data and experiences with this potential pollution free vehicle are
presented.
213
1. Introduction
A part of the University of
Florida Solar Energy and Energy
Conversion Laboratory's program
to provide the forms of energy
needed in our daily life by converting solar energy includes the
solar electric car.
Providing the energy needed for
transportation from solar energy,
first of all uses our only energy income and does not deplete our
fixed resources which are classified
as savings. Furthermore, the use
and conversion of this energy is
ppllution free since it does not put
anything into the environment
which is not already there. Solar
energy falling upon the earth
becomes heat whether it is used in
this conversion or not.
It is believed that this type of
transportation, especially for
urban traffic can solve many of
today's serious problems, such as
pollution. A network of solar battery charging stations like today's
gasoline stations could replace
run-down batteries in the travelers' cars with charged ones. This
62-322 O - 75 - 15
exchange would not take more
time or effort than filling a tank
with gasoline. While the batteries
are at the station they can be
recharged by solar energy. A
proper distribution of such facilities could provide the travelers'
needs on a nationwide basis.
2. Electric Propulsion
Electric propulsion is not new
but today the picture for electric
automobiles has very
much
changed. Recent developments in
high current power transistors and
silicone controlled rectifiers, combined with a new generation of
electro-chemical systems such as
the lithium-sulphur battery, have
brought the "electric" into focus
again as an effective means to
combat air pollution.
If the electric car is charged
from conventionally produced
electricity it will not eliminate
pollution but first reduce it by
more efficient processes of conversion and secondly transfer it to less
critical areas, such as moving it
from the heart of cities to the
countryside. If solar energy is converted to electricity to charge the
electric cars' batteries then pollution can be eliminated.
Surveys have shown that 99% of
all trips and 80% of the total passenger car mileage is for travels
less than 160km in length. Our
solar electric car can easily meet
these requirements. Fig. 1 and Fig.
2.
An earlier article described the
performance of the car with MiCd
batteries which were not specifically designed for this use, (1), and
the performance was much below
the present. Some circuit changes
in the controls have been made as
well as specially designed LeadAcid batteries were obtained
suited for this type of operation.
To extend the range of operation
without having the networks of
battery charging stations as mentioned above, various attempts
have been made by others. These
modifications required extra batteries or the addition of a combustion generator plant. Several companies 'who tried this shelved these
concepts because of weight, technical and economic limitations.
(2).
Our investigation has concentrated on totally pollution-free
propulsion through the use of solar
electric power. I n order to evaluate
urban electric car requirements,
conversion efficiency, component
reliability and traffic safety, commensurate with cost, size, and
weight, a production model G M
Corvair was converted into the
electric traction test-bed vehicle.
3. Traction Motor and
Transmission
The traction motor replaces the
original combustion engine and is
directly coupled to the existing
four-speed transmission without
the use of a clutch. The motor is 6
pole, separately excited, a DC
machine rated at 48 volts and 400
ampere, weighing 30kg.
Traditionally, series motors have
been used for propulsion work
with good success, because of selfregulating torque and speed characteristics under varying road
conditions. However, in order to
recover the kinetic energy of the
vehicle and make regenerative
braking practical a separately excited DC motor is convenient. In
heavy urban traffic the vehicle
range can be extended by as much
as 25%. (3). I n addition, with solid
state field control the following advantages have been obtained:
1. Torque — speed characteristics
of the Series DC motor through
armature current feedback.
2. Continuous speed control above
the base speed by simple field
weakening.
3. High efficiency at reduced armature voltage since the full field
excitation can be maintained.
4. Lower fadeout speed of regenerative braking because field can
be maintained independent of
speed.
5. The motor requires only two
power terminals.
6. Motor reversal obtainable by
only a small D P D T field relay.
7. Simple field excitation controlled through a low power
series transistor regulator.
Dynamometer tests have shown
that the motor efficiency reaches a
maximum of 0.83 at 200 amperes
and then gradually falls off to 0.70
at 600 amperes. At this point the
motor develops approximately 27
horsepower at the driveshaft.
215
4. Propulsion Battery
The propulsion battery, a lead
acid type, consists of four units,
each twelve volts. There are two
units in the engine compartment
and another two in the trunk. Each
twelve volt battery, weighing
60kg, has a capacity of 180 ampere-hours at the 20 hour rate.
However, this capacity decreases
appreciably; 90 A H at the one hour
rate and to 56 A H if the battery is
discharged at 150 A. Therefore, the
total available propulsion energy is
a strong function of the discharge
current ranging from 39 WH/kg
maximum, down to 21 WH/kg.
5. Field Control Battery
6. Control Circuit
The field excitation battery is
composed of 30 NiCad cells, pro-
Five solenoid power switches are
used to control the armature volt-
SI A
Hh
Solenoid closed
V
12V
24V
24V
S I , S3, S5
S2 B
48V
OT
OT
SI B
Propulsion
Voltage
12V
OT
it12 / S5V/ 12
OT
S4 A>
S2 A
CO
12 |v
age. Four of the switches are DPDT
and one is an SPST. The purpose of
this system is to connect the
propulsion battery unit in different
parallel and series combinations to
produce three different armature
voltages, namely, 12, 24, and 48
volts. This allows the individual
battery units to be discharged
equally. Fig. 3. During charging,
all batteries are placed in series.
The power solenoids are activated
by microswitches, controlled by a
cam plate which is mechanically
coupled to the accelerator linkage
of the car. A diode switching, logic
is part of the control circuit. It
electrically interconnects the microswitches with the power solenoids and the motor field circuit
such that the field excitation relay
is energized whenever the solenoid
switches are. Fig. 4.
viding 36 volts at 24 AH. This battery not only furnishes the power
to the motor field, but also serves
as the power source for an on
board DC to AC transistor power
inverter to produce 110 volts, 400
cycles. This AC is used to energize
the axial vane blower for forced air
cooling of the propulsion motor.
The same power inverter transformer produces twelve volts
which, after rectification and filtering, furnishes the DC for the
regular 12 volt system of the car to
operate headlights, horn, windshield wipers, etc.
S3 B
Fig. 3. Armature Voltage
ftwpilirlicn Dm&ery
Current feedback
Propulsion Motor
12 V
12 V
12 V
12 V ^
180 Ah
180 Ah
180 Ah
180 Ah
1
1
1
Forward
Reverse
9witch
1
Tlild"
c
2W
48V
Solenoid Switches
Anna-\
I ture J
%
J
36V
. n — V
__
Accelerator
Pedal
2
j
-
potentiometer
Cam plate £
aricroswitches
Diode Switching
logic
Fig. 4. Compe
l te Control Circuit
Reversal
Relay
Diff.
Amp.
Series
Regulator
Field
Battery
Field
Relay
216
The field excitation voltage is a
function of both the armature current and the voltage derived from
the potentiometer coupled to the
accelerator linkage. Both signals
are combined in a differential amplifier. The output of this amplifier
controls the power transistor series
regulator in the motor field circuit.
The combination of three armature voltages and the variable field
excitation in conjunction with the
four-speed transmission provides
great flexibility of speed control in
dense urban traffic and on the open
highway. During the regenerative
braking the traction motor acts as
a shunt generator with variable
field control. Regeneration is
maintained as low as four miles per
hour. At this point the regular
hydraulic brakes bring the car to a
complete stop.
7. Power Sources for Battery
Charging
Two sources of power are used
for the vehicle at present, namely,
solar energy and regular 110 volt
AC. To produce solar electric power the conversion in the Solar
Energy & Energy Conversion Laboratory is first solar to mechanical
•power and then mechanical to
electrical since silicone solar cells
are not yet economical for terrestrial applications. (4). We use Sterling cycle hot air engines in conjunction with generators to produce electricity. Fig. 5. (5). The
output from the various engines is
from 145 watts to 1000 watts. Fig.
6. The Sterling cycle engines use
parabolic concentrating collectors
to intercept the sunshine. (6). The
solar radiation impinging on the
surface of a five foot collector is
about 1825 watts. From this
amount the smaller hot air engine
converts 145 watts into electricity.
The simpler solar silicone cells
would have produced about 160
watts for the same amount of incident radiation. However, the
price of the solar cells would have
been about 28 times that of the
Sterling engine system.
8. Discussion of Performance
The solar electric car is driven in
regular city traffic, 32km on the
average every work day. The accumulative road distance on the
present set of Conrex lead acid
217
/
.
Battery
IiVi
1 \
|
1
1
s
1
A
*
N
bwitching1
batteries is 3,200km. Each test r u n
is approximately 8km. T h e m a x i m u m speed is 9 7 k m per hour on a
level road w i t h a tire pressure of 3
atmospheres. A t a speed of 40 k m
per hour the car w i l l t r a v e l a distance of 88 k m .
D a t a have been collected on the
efficiency of the solenoid speed
controller. T h e measured electrical
losses w e r e 400 watts at 95 km/hr.
and only 8 watts at 40 km/hr.,
yielding efficiencies of 9 8 % to
better than 99.7%. A t urban speeds
the controller is therefore practically loss-less. I n v e r y congested
traffic w i t h many and long idling
periods w h i l e waiting for traffic
light changes, the electric car consumes no power at all.
Road data shows that v e r y little
power is expended to propell a
compact car. O u r solar electric
Corvair uses only 3 H P at 40
km/hr. and 6 H P at 60 km/hr,
common urban speeds for most
cities. W i t h present day lead acid
batteries it is possible to attain a
range between 90 and 160 k m on
one charge.
Fig. 7 and Fig. 8 show actual
current versus time plots under actual driving conditions. Fig. 7
shows the battery switching in first
gear a n d then second, t h i r d a n d
fourth gear operation. Fig. 8 shows
field excitation switching as w e l l
as regeneration.
Fig. 7. Solar Electric Car Performance
9 . Closure
The experience of the performance of the solar electric car has
demonstrated t h e usefulness of
such means of transportation,
-especially for urban traffic to
provide low pollution or pollutionfree transportation without d e pleting our fossil fuel resources.
1 0 . Bibliography
1. H. R. A. Schaeper, et.al., The Solar
Era — The University of Florida
Electric, Mechanical Engineering,
November 1972.
2. J. J. Gumbleton, et.al., Special Purpose Urban Cars, SAE Paper No.
690461, Chicago, Illinois, M a y 1923, 1969.
3. L. D. Orr, Economic Factors in the
Production and Marketing of Electric Vehicles, S A E Paper No.
690116, Automotive Engineering
Congress, Detroit, Michigan, January 13-17, 1969.
4. OST, Federal Council on Science
and Technology, Solar Energy Utilization: A Plan for Action, December 1972.
5. E. A. Farber, et.al., Closed Cycle
Hot A i r Engines, Solar Energy,
Vol. I X , No. 4, October-December,
1965.
6. E. A. Farber, Solar Energy: Conversion and Utilization, Building
System Design, June 1972.
i.
\i
[ t>0
C
rH
d) A
•H
-O
P
's
COf\
co
•p
<0
<D
c
4
/
1
Fig. 8. Solar Electric Car Performance
218
Solar Swimming Pool Heating
by
E. A.
FARBER
Professor & Research Professor Mechanical
Director,
Solar Energy & Energy
University
of Florida,
J.
Graduate
University
Gainesville,
Conversion
Florida
Laboratory
32611
USA
TRIANDAFYLLIS
Assistant in Mechanical
of Florida,
Engineering
Gainesville,
Engineering
Florida
32611
USA
International Solar Energy Society Meeting
Paris, France
July 1973
ABSTRACT
In connection with the University of Florida Solar House and right next to it are
two above ground 21,000 liter swimming pools.
One of these pools is used as reference and the other is being heated by solar
energy. Both pools are instrumented with close to one hundred thermocouples each
to determine temperature distributions and gradients on a continuous basis.
The performance of the solarly heated pool is presented in this paper in reference
to the identical unheated pool. In this manner the true effectiveness of tiie solar
heating can be evaluated.
219
1. Introduction
Many swimming pools have been
built in the United States next to
private homes for family recreation. Since the water in these pools
drops to temperatures which make
it uncomfortable for use, even in
the southern part of the country, a
good portion of these pools are
provided with heaters.
Since, however, the use of gas or
oil for this purpose is very expensive, (several hundred dollars per
month in some cases) heaters installed for swimming pool heating
are rarely used.
In recent years there has been
tremendous upswing in interest to
use solar energy for the purpose of
heating swimming pools. Since
very little information is available
to evaluate the effectiveness of
solar heating of swimming pools,
two identical small pools were set
up next to the University of
Florida Solar House, a project
which has the objective to evaluate
the feasibility of providing our
daily energy needs and forms by
converting solar energy, our only
energy income, and do this without
pollution or otherwise affecting the
environment.
To obtain a true evaluation, a
comparison, it was necessary to use
two identical pools — one unheated and the other heated — by
various methods utilizing solar
energy.
220
2. Swimming Pool Heating
The University of Florida has an
outdoor swimming pool, Olympic
size, which is heated and kept at
about 28 C all year around. This
pool is used for swimming and lifesaving classes, for practice by the
University of Florida Swim Team
and for recreational swimming. A
tremendous amount of energy is
used every day during the heating
season to keep this level of comfort.
Steam from the University power
plant is used for this purpose.
Early studies were made on this
swimming pool to see just what it
takes to heat swimming pools. No
absolute comparison was possible,
however, since we could not say
for certain what the pool temperature would have been, had it not
been heated.
For the above reasons it was
decided to set up two identical
pools, one unheated and used as
standard, and the other a solarly
heated swimming pool to obtain a
true comparison of the effectiveness of the heating by solar
energy. Very little work has been
done previously on solar swimming pool heating and none with
two pools next to each other for
real comparison.
Some work done by the University of Florida Solar Energy &
Energy Conversion Laboratory on
solarly heated sewage digesters
can be considered related to this
problem. (1).
The pools were set up on a
north-south line close together but
still separated so as to prevent
shading of one by the other.
At the beginning both pools
were compared with each other on
an unheated basis to assure that
they behave the same with respect
to the environmental conditions.
This established, the solar heating
was started. A number of times
during the actual testing the
heating of the pools was switched
from one to the other to ascertain
that the effects measured are not
characteristics of one pool as compared to the other. I t was found
that both pools behaved in the
same manner under the same
operatint conditions.
In Fig. 1 it can be seen that the
rear pool is heated by solar energy
by having a sheet of transparent
plastic floated on it. The front pool
which is the south pool is not
heated, but is has the capability of
being heated by the flat plate solar
collectors which are part of the
house heating system Fig. 2.
To heat a swimming pool by
such collectors would be quite expensive but if a heating system like
this is available for house heating
then it can at times be used for
swimming pool heating when the
demand by the house does not
require their total capacity. Relatively little heat is needed from
this system but it can be used to
boost the pool temperature to the
desired level.
In Fig. 1 the instrumentation is
also visible, consisting of many
thermocouples which are led to a
recorder which monitored them.
Both pools have identical instrumentation. Behind the pools is
the hot water storage tank for the
house heating system and it will
also drive the air-conditioning
system of the house when it is installed.
3. Test Pool Arrangement
As mentioned above, the two
pools, each 4.6 m in diameter and
1.25 m deep, were set up on a
north-south line, separated just
enough so that they will not affect
each other. Fig. 1.
Fig. 2. Flat Plate Solar Collectors
221
4. Solar Energy Collection and
Pool Heating
A number of different methods
of collecting the energy for pool
heating have been tried, and they
have been investigated both theoretically and experimentally.
The simplest method used was to
float a plastic sheet right on the
water, then the use of two sheets
(separated), bubble plastic, and
the flat plate collectors were investigated.
Other methods which were used
earlier on sewage digesters are also
applicable and can be used as
guides since they essentially heated
a large body of water of swimming
pool dimensions. (1).
Fig. 3 presents the average
energy collected by the swimming
pool throughout the year, and the
average temperature gain of the
unheated (or better, not heated by
special methods) pool. The variation throughout the year is mostly
due to the number of sunshine
hours per day with the seasons,
which is shown in Fig. 4.
A small effect is the change in
angle of the sun with the seasons.
The sun is lower in the winter and
higher in the sky during the
summer.
The energy absorbed by the
water in the pool raises the temperature of the water during the
day but the losses reduce the rise
rate during the day and the temperature actually drops during the
night.
5. Temperature Gain Per 24Hour Day
As long as the heat gain or temperature rise of the pool during the
day is larger than the temperature
drop during the night the water in
the pool will register a net gain in
temperature. As the temperature
of the pool rises the heat losses
increase and finally the temperature gain during the day will equal
the temperature loss during the
night.
The actual average gain for the
unheated pool at equilibrium condition is slightly less than 2 C.
Thus the temperature will at an
average at equilibrium rise 2
degrees during the day and then
drop back again two degrees
during the night.
The solarly heated pool has the
heat losses reduced by the various
methods employed and thus finds
an equilibrium temperature at a
Fig. 3. Energy Collected by Unheated Pool
(Average for One Year)
Fig. 4. Sunshine Hours per day or hours per day the sun is above the horizon (30°N
Latitude)
222
higher level. Fig. 5 presents the
average t e m p e r a t u r e gain during
the 2 4 - h o u r day.
6. Average Pool T e m p e r a t u r e
Throughout t h e Year
T h e theoretical analysis and e x p e r i m e n t a l verification gives the
results presented in Fig. 6.
Shown is the average air t e m perature w h i c h controls w i t h its
h u m i d i t y the heat losses from the
pool and the average temperature
of the unheated pool throughout
the year. G i v e n also is the average
t e m p e r a t u r e throughout the year
of a pool heated by a single transparent sheet of plastic floating on it
and w h a t can be done to the pool
temperature i f the flat plate collectors are used during the worst
time of the year.
7. Discussion a n d
A '
J
S ' 0
' N
' D
Fig. 5. Average temperature gain of unheated swimming pool per day
Closure
I f w e take the temperature of the
University pool as the desired
comfort level, namely 28 C, it can
be shown from Fig. 6 that this t e m perature is reached in about the
middle of M a y and lasts until about
the first of October. This w i l l i n dicate that the s w i m m i n g season
can be considered w i t h this pool in
Gainesville from about M a y to October. D u r i n g this time, this t e m p e r a t u r e may be exceeded at an
average by as much as 4 C.
A single sheet of plastic floating
on the pool and only removed
while the pool is used w i l l raise the
average temperature of the pool
slightly less than 6 C. This does not
seem like much but it w i l l allow
s w i m m i n g in the pool at the
desired comfort
condition one
m o n t h earlier and still allow
s w i m m i n g IV2 months later than
the unheated pool would allow.
Thus by this method the swimming
season of this pool is extended by
2V2 months.
I f the flat plate collectors of the
solar house heating system are
used as p a r t i a l boosters, their total
capacity not needed, the temperature of the pool could be kept at
the comfort level all year around.
This dual use of the flat plate
collectors gives something extra
which normally, w h e n they are i n stalled for the heating system, is
not expected of them.
This above discussion presented
the overall behavior of the solarly
heated s w i m m i n g pool w i t h relatively simple means of heating.
— P l a s t i c
C o v e r and
—Q— P l a s t i c
Cover
Unheated
•O-
Pool
Ambient A i r
I
T
Collectors
I
Temperature
' c
' „ 'M I ,
Fig. 6. Temperature Variation of Unheated and Solarly Heated Swimming Pools
223
I n addition to the above, double
plastic covers, bubble plastics, etc.
were investigated and the detailed
behavior of the pool studied. The
temperature distributions in both
the heated pool and the unheated
pool were determined theoretically
and checked experimentally, when
the circulating filter pump was
running and when it was not, and
the pool was heated by free convection currents and cooled by
them. The detail is interesting from
an academic point of view for a
better understanding of what actually takes place in the pool during
a typical 24-hour period for a perfect day, a cloudy and rainy day.
This detail, however, is of little
interest or value to the family who
wants to extend the swimming
season of their own swimming
pool.
The actual average -pools are
deeper than the ones used for this
study, but, at the same time, their
losses are smaller on a relative size
comparison since they are better
insulated by being in the ground or
having a thicker wall if above
ground.
In closing it might be said that
the study on solarly heated sewage
digesters as well as this study on
solarly heated swimming pools has
demonstrated that the application
of solar energy for heating the
pools will be able to appreciably
extend the swimming season by
relatively simple and inexpensive
means.
I f the house has a solar heating
system, the flat plate collectors can
be used to give a year around
swimming season by using them as
partial boosters. I f desirable such
heaters could naturally be added
just for the purpose of providing
the topping for the pool.
8. Bibliography
E. A. Farber, The Application of
Solar Energy to Sewage Digestion
and Liquid Waste Recycling, Proceedings of the Third National Convention of the Institute of Plumbing
Australia, March 1973.
A. Whillier, How to Heat Your
Swimming Pool Using Solar Energy,
Do-It-Yourself Leaflet No. 3, McGill
University, Brace Research Institute,
January 1965.
H. E. Thomason, et al., Solar Pool
Heating, ASME Paper # 67-WA/SOL2, December 1967.
224
A Solar Powered
V-2 Vapor Engine
by
E. A.
Professor & Research
Director,
Solar Energy
University
of Florida,
& Energy
Gainesville,
F. L.
Professor
University
FARBER
Professor of Mechanical
Emeritus
of Florida,
Conversion
Florida
Engineering
Laboratory
32611
USA
PRESCOTT
of Mechanical
Gainesville,
Engineering
Florida
32611
USA
ABSTRACT
This paper describes a self starting, fractional horsepower vapor engine coupled
to flat plate solar absorbers so that operation is possible at relatively low temperatures with refrigerants as the operating fluids.
The engine consists of a V-2 arrangement of two double acting cylinders which
exhaust into a chamber which surrounds the whole engine and is connected to the
condenser which can be air or water cooled. A small pump returns the condensed
liquid to the flat plate solar collectors which generate the vapor for the engine.
The design of the engine makes it self starting as soon as vapor is supplied to it.
Every piston movement constitutes a power stroke, and about Va horsepower is
produced with trichloromonofluoromethane (R-ll) for operating temperatures of
72 C and 27 C at about 500 rpm.
225
1. Introduction
In connection with the solar
energy to mechanical power conversion project of the University of
Florida Solar Energy and Energy
Conversion Laboratory many engines have been built and evaluated. Most of them require concentration of solar energy to obtain
the temperatures needed for
operation.
Among them are steam engines,
both single and double acting,
which utilize a 2 x 2.5 m cylindrical parabola for concentration
of the solar energy upon a glass
covered vapor generating tube at
the focal line. This unit has to
follow the sun and is driven either
by an electric synchronous motor
or by a clockwork controlled heavy
weight. This system needs setting
in the morning, but then operates
all day without attention.
Another group of engines used in
this conversion of solar energy to
mechanical power are hot air engines. The solar energy is concentrated with 1.5 m diameter parabolic mirrors onto the hot end of the
displacer of closed cycle engines or
the heater of open cycle engines to
provide the temperatures needed
for operation. (1, 2, 3).
The above methods work, but
they can utilize only the direct radiation from the sun and not the
diffuse portion, thus cannot work
on cloudy days. These engines are
not self starting since all of them
were only one cylinder types. Multicylinder arrangements can overcome this problem, but at the cost
of size and complexity.
The present engine was designed
to operate at temperatures which
can be produced with flat plate
solar collectors, utilizing such
fluids as Freons with the desired
physical characteristics in low
temperature vapor systems. Furthermore, the present engine, the
subject of this paper, has two
double acting cylinders, set in a V
arrangement and is, therefore, self
starting and every movement is a
power stroke. The engine is described more in the following
pages.
226
2. Low Temperature Solar
Power System
The low temperature solar power system consists of flat plate
collectors which convert solar energy into heat, producing temperatures up to 100 C and can, if the
right fluid is used, produce vapor.
The vapor is then allowed to flow
to an engine, the V - 2 vapor engine
in this case, where this energy is
converted into mechanical power.
From there, the vapor moves to a
condenser where it is changed back
to liquid. A small liquid circulating
pump brings the liquid back to the
flat plate solar collectors or vapor
generators. (6, 10).
Fig. 1 presents a schematic
sketch of the system the detail of
which is given below.
The total system is basically not
different from other vapor systems
such as steam power plants, except
that the operation occurs at low
temperatures, temperatures which
can be obtained with flat plate
solar collectors. A number of fluids
can be used in this system. T r i chloromonofluoromethane ( R - l l )
seemed to be most readily available and best suited for this purpose.
A detailed description of the
main components of this system is
given below with main emphasis
upon the V - 2 solar vapor engine.
V-2 Vapor Eng i n e
Conden ser
Fig. 1. Schematic Sketch of Low Temperature Solar Power System
3. The Flat Plate Solar
Collectors and Vapor
Generators
Rather than using an optimized
design of the flat plate solar
collectors for this system, some
which were available in the laboratory were used. These same solar
collectors are now used for heating
the University of Florida Solar
House and they were used earlier
to operate the 5 ton solar air-conditioning system of the University
of Florida Solar Energy and Energy Conversion
Laboratory.
Three of the units shown in Fig. 2
were used for the work described
here.
Because of the design of these
flat plate collectors a small vapor
accumulator is necessary to allow
the vapor to separate from the liquid before feeding it into the engine. Absorbers designed like one
of units used with the compact
solar refrigerator or ice machine,
which is intended to generate
Fig. 2. Flat Plate Solar Collectors
227
vapor, eliminate the need for this
part. (7, 8, 9, 10).
The flat plate solar collectors
have a collecting area of 2.8 m 2
each and have an average collecting efficiency for the day of
over 50 percent.
4 . T h e V-2 Solar Vapor
Engine
The self starting V - 2 vapor engine consists of two cylinders, each
having an inside diameter of 51
mm. T h e two cylinders are o r i ented at 90 degrees to each other.
Fig. 3 and Fig. 4. T h e piston in each
cylinder has a stroke of 39 mm.
Slide valves control the vapor flow
in and out of the cylinders a d m i t ting vapor for 90 degrees of the
f l y w h e e l rotation and exhausting it
for 140 degrees.
T h e 25 cm tall, 35 cm wide and
23 cm deep engine is mounted in
housing, 40 cm in diameter and 25
cm deep. Fig. 5.
T h e vapor is fed to the engine
through the housing. The vapor
after it has produced w o r k is e x hausted into the housing surrounding the engine. I n
this
manner any leaks which m a y be
present are not critical since the
housing catches all vapors e x hausted and escaping. F r o m the
housing the vapor flows to the condenser.
The total displacement of the engine for one revolution is 305 cc.
The engine is speed controlled
by a centrifugal flywheel governor
which regulates the vapor flow to
the engine and can be adjusted to
give the speed desired for operation.
Fig. 3. V-2 Solar Vapor Engine (Back)
5 . Condenser
The condenser used in connection w i t h this engine is a cylinder
76 cm in diameter and 61 cm long.
I t has an inlet and an outlet for
cooling water. I n this cylindrical
container are 7 coils of 2.5 cm d i ameter pipe giving a total length of
13.5 m. I n this pipe the vapor is
condensed.
A n air condenser could be designed, but since w a t e r was readily
available it is used for cooling.
6. Pump
The pump is a C o l e - P a l m e r
Model 7004-92 gear pump which
has a flow rate capacity of 4.5 liters
per minute at engine speed and
Fig. 4. V-2 Solar Vapor Engine (Front)
228
produces a pressure rise of 4 atmospheres.
7. Discussion and Performance
Evaluation
Fig. 5. V-2 Solar Vapor Engine in Housing
Fig. 6. Low Temperature Solar Power System Cycle (T-S)
Fig. 7. R-11 Solar Power System Cycle on P-H Plane
Having discussed the components of the system to allow the
generation of mechanical power
from solar energy with flat plate
solar collectors, the operating
characteristics will now be presented. Again, the main emphasis
is on the literature on a number of
occasions.
The operating conditions and an
ideal system T - S diagram is shown
in Fig. 6. The processes through the
various components of the system
are shown. 1-2 indicates the expansion of vapor through the engine which converts some of the
energy into mechanical work. 2-3
indicates the state changes which
occur in the fluid when it is
moving through the condenser. 3-4
is an indication of the pump action,
raising the pressure to that of the
solar vapor generators. 4-1 completes the cycle of the system and
presents the changes which occur
in the flat plate solar collectors and
vapor generators.
This same cycle is presented for
a specific fluid, R - 1 1 or dichloromonofluoromethane, in Fig. 7 on
the P - H plane. Conservative
operating conditions were selected
which can readily be obtained by
such systems. 72 C vapor is delivered by the flat plate solar collectors and 28 C liquid by the water cooled condenser. The pressures
corresponding to these temperatures are moderate, not requiring
special designs.
The conditions inside the engine
cylinders, on one side of the piston
are indicated in Fig. 8. Values of
pressure and volume are given.
The cycle is idealized and the
corners are not rounded as they are
in the real case. (12)
Finally, Fig. 9 presents the actual performance of the engine with
supply pressures held constant at
2.36, 2.70, 3.04 and 3.40 atmospheres, pressures which correspond to R - 1 1 sat. temperatures of
51, 56, 60 and 65 C respectively.
The curves are typical of engine
performance. Maximum speed is
reached at no load and as the load
is increased the speed drops. If the
power output is plotted against
revolutions per minute (rpm) a
maximum power point is shown on
each curve.
229
Curves for temperatures and
pressures higher than those presented here could be given, but
they cannot as easily be reached
dependably over a considerable
part of the day.
From the discussion and the performance data shown, it is seen
that flat plate solar collectors and
vapor generators can drive vapor
engines when the proper working
fluids are employed. The use of flat
plate solar absorbers utilizes both
the direct and the diffuse portion
of solar radiation and thus, allows
operation on less than perfect days.
Furthermore, the combination of
two cylinders in a compact V arrangement makes this engine self
starting which is a distinct advantage- when intermittent clouds
cover the sky.
Volume,
cc
Fig. 8. P-V Diagram of the V-2 Vapor Cycle Engine Using R-11
8. Bibliography
1. E. A. Farber, Solar Energy: Conversion and Utilization, Buildings
Systems Design, June 1972.
2. E. A. Farber, et al, Closed Cycle
Hot Air Engines, Solar Energy,
yol. IX, No. 4, Oct. — Dec. 1965.
3. E. A. Farber, Hot Air Engines,
Mark's Mechanical Engineers'
Handbook, 7th Ed., McGraw-Hill
Book, Co., New York 1966.
4. Rankine, W., A Manual of Steam
Engine and Other Prime Movers,
Charles Griffin and Co., Ltd.,
London, 1908, X V I I .
5. R. H. Thurston, A History of the
Growth of the Steam Engine Cornell University Press, New York,
1939, 2.
6. Vickers et al, The Design Features
of the GM SE — 101 — A Vapor
Cycle Power Plant, Research
Publication GMR-925., General
Motors Research Laboratories,
January 1970, 1.
7. E. A. Farber, Selective Surfaces
and Solar Absorbers, Journal for
Applied Solar Energy, April 1959.
8.. E. A. Farber, Solar Water
Heating, Space Heating and
Cooling, Journal of Applied Solar
Energy, August 1960.
9. E. A. Farber, Power From the
Sun, USIA (United States Information Agency), Project No. 65218
10. E. A. Farber, A Compact Solar
Refrigeration System, ASME
paper # 70 WA/SOL4, Dec. 1970.
11. R. J. Harvey, et al, Steam Engine
Power Supplies, ASE paper # 883
B June 1964.
12. The Freon Engine: Will it Work,
Commercial Car Journal, June
1970, 90.
62-322 O -75 - 16
3.40
Fig. 9. Performance Curves of the V-2 Solar Powered Vapor Engine
Atm.
230
The University of Florida Solar House
by
E. A.
Professor
Director,
& Research
Solar
University
Energy
of Florida,
Professor
J.
Graduate
International Solar Energy Society
Paris France
July, 1973
Assistant
of Mechanical
& Energy
C. A.
Assistant
FARBER
Professor
Conversion
Gainesville,
Florida
Engineering
Laboratory
32601
MORRISON
of Mechanical
Engineering
TRIANDAFYLLIS
in Mechanical
Engineering
Meeting
ABSTRACT
The University of Florida Solar House, which is a thoroughly instrumented test
house to investigate heating systems, air-conditioning systems, hot water systems,
air quality in the house under actual lived in conditions, has now been partially converted into a solar house. This allows a true comparison of solar and other systems.
A t the present time solar energy supplies the hot water, heats the house, heats one
of the swimming pools, recycles part of the liquid waste, and supplies some electricity for radio, T V , lights, and small appliances. In the near future air-conditioning
and cooking will be added.
231
1. Introduction
Approximately two years ago
the conversion of the University of
Florida Test House into a solar
house was started. This was done
step by step as time and funds permitted.
The reasons for utilizing this
house were many and among the
most important ones were that information existed over the last 16
years as to how different conventional systems performed in supplying the hot water, heating, airconditioning, the energy
for
cooking and other activities while
monitoring the air quality in the
house.
All the data in this thoroughly
instrumented house was taken
while a married student couple
lived in this house with all the
modern conveniences provided.
In the early stages of the project,
walls, windows, and insulation in
the house were changed to evaluate their performance and later the
systems serving the house were
evaluated i.e.; oil, gas and electricity were used at different times, to
provide the energy to water heaters, air-conditioners, heat pumps,
cooking systems, etc. Over-head or
attic air distribution systems with
different diffuser outlets were
compared with under floor distribution systems.
These years of data and experi-
ence, under actual lived in conditions, give a wealth of information
and a firm basis for absolute comparisons of different systems
serving the same house under the
same conditions.
2. The Solar House
The house is a conventional, typical block construction dwelling
similar to many found in Florida
and elsewhere. It has three bedrooms, two baths, kitchen, living
and dining rooms, utility and
laundry rooms, and a carport with
closed in storage space. The
laundry room, besides holding the
washing machine and dryer, is
used for all the instrumentation
monitoring the many activities and
systems of the house.
Figure 1 shows a SW view of the
house which is oriented E to W.
The road approaching the house
comes from the E so the solar
equipment is not seen until one
walks around the house.
All the solar energy equipment
which is installed in the solar
house was developed and evaluated in the University of Florida
Solar Energy Conversion Laboratory.
The first unit which was added
to the house was the solar water
heater. The collector was put on
the roof with the hot water tank
behind it. The first visitors to the
solar house were disappointed that
they did not see the solar equipment, and it was too hazardous to
take them up on the roof. For educational reasons it was decided to
place the rest of the solar energy
conversion equipment next to the
house in the open, rather than to
incorporate it in it, so that visitors
can walk around the equipment,
touch and photograph it and, in
general, get a good idea what such
equipment is like.
Further, two swimming pools
were added, one heated by solar
energy and the other as standard
for comparison; a house heating
system with a large storage tank,
above ground rather than buried
with plans to use the solar waste
recycling system; a small solar
energy to electricity conversion
unit; and a solar-electric car which
is part of the over-all system. In
the near future solar air-conditioning, refrigeration and cooking
will be added.
3. The Solar Water Heater
The solar heater is shown in Figure 2. It consists of a 5.2 m2 solar
collector and a 380 liter well
insulated hot water storage tank.
(See references 1, 2, 3, 4, 5, 6)
The solar absorber is a galvanized sheet metal box having 2.5
cm of Styrofoam insulation inside
in the back. In front of the insulation is a copper sheet with two
parallel circuits of sinusoidally arranged tubes soldered onto it. Both
sheet and tubes are painted with a
good absorbing paint. The box is
covered by glass having good solar
energy transmitting properties.
The hot water delivered by this
unit flows by free convection to the
hot water storage tank which is
well insulated to reduce heat
losses.
4. The Solarly Heated
Swimming Pool
To truly evaluate the effectiveness of heating the swimming
pool by solar energy, two identical
pools were installed, 4.6 m in diameter and 1.2 m deep. One was
heated by various methods utilizing solar energy and the other
was used as standard for comparison. Figure 3.
Both pools were well instrumented with many thermocouples in each. One pool, the
unheated one, was left to itself. The
other was heated by solar energy
in a number of ways. The simplest
method was to float a transparent
sheet of plastic on its surface. Two
sheets of the air-mattress design do
a better job, or bubble sheet can be
a reasonably good collector and a
good inhibitor to heat losses. The
solar absorbers of the house
heating system described below'
were also used at times to heat one
of the pools. The latter system is
economical only as a combination
between house and pool heating.
The simple plastic sheet could
keep the average pool temperature
11 degrees above the average air
temperature and 6 degrees C above
the unheated pool temperature.
Utilizing the house heating absorbers, the pool temperature
could be kept about 22 degrees C
above the average ambient air
temperature.
5. The Solar House Heating
System
The solar house heating system
is basically a hot water system
which was selected over the air
heating system, since the former is
easier to use as the front end of a
solar air-conditioning system. Ten
solar absorbers, similar to the one
used for the solar hot water
system, comprising 33 m 2 of absorbing surface provide hot water
which is stored in a 11,400 liter
tank with 10 cm insulation around
it. Figures 3 and 4.
Water from the storage tank is
circulated by a small pump
through the baseboard heating
system in the house as required to
keep the temperature of the house
at the desired value. 43 m of baseboard heaters can deliver 15,000 K
Cal per hour with supply water of
56 C, which is the design load for
the house to meet the maximum
heat requirement under extreme
conditions in Gainesville, Florida.
With the water hotter, more heat
can be delivered and cycling controls the actual amount of heat delivered.
The baseboard heaters are
shown in Figure 5. The flow rate
through the solar absorbers can be
controlled, so as to deliver water at
the desired temperature, storing it
in the upper part of the storage
tank. The delivery to the house is
thermostatically controlled.
The storage tank is larger than
actually needed, but was used to
allow long time storage to carry
the house through bad weather
conditions. 11,400 K Cal can be delivered to the house for only 1 C
water temperature drop in the
storage tank.
6. Liquid Waste Solar Recycling
Plant
Since fresh water is becoming
more and more difficult to obtain
and is also getting more expensive,
a small liquid waste solar recycling
plant has been added to the house.
This solar distillation unit, Figure
6, has a liquid holding tray area of
2.2 m2 and can produce up to about
11 liters of fresh water on a good
day. This unit is also designed to
collect rain water which, in Gainesville, just about doubles the output. (7)
This plant is not able to handle
all the liquid waste of the house,
but one could be built any desired
size depending upon the recycling
requirements.
7. Solar-Electric
Unit
Conversion
Most of the energy today in a
house is used for water heating,
house heating, and air condi-
234
tioning. T h e real need for electricity is only a small fraction of the
total energy requirement. I t is r e ally only needed for radio, T V ,
lights, and some small appliances.
Figure 7 shows the small unit used
to convert solar energy, by means
of solar cells, into D C electricity
and store it in N i C d batteries. T h e
energy f r o m the batteries is then
converted as needed by a D C to
A C solid state converter to operate
lights, radios, T V and small a p p l i ances. T h e cost of this unit is certainly not competitive at this time,
but it demonstrates the feasibility
of providing electricity.
8 . Solar Air Conditioning,
Cooking, and Refrigeration
Fig. 5. Baseboard Heating Units
Fig. 6. Liquid Waste Solar Recycling Plant
W h e n the solar house heating
system was designed, it was done
so that the solar absorbers and the
storage system can be used to drive
a specially designed a i r - c o n d i tioning system d u r i n g the cooling
season. T h e hot w a t e r is used in the
w i n t e r for heating the house and in
the summer for air conditioning. A
number of systems have been
designed in the University
of
Florida Solar Energy & Energy
Conversion L a b o r a t o r y which can
be used in this manner. (See r e f e r ences 8, 9, 10, 11) T h e systems operate w i t h as low as 50 C water.
T h e air distribution system to be
used w i t h the solar a i r - c o n d i tioning system is already in the
house, so only the
absorption
system has to be added. I t is being
designed so as to fit the needs of
the house. I t is planned to add air
conditioning as the next step.
A f t e r the air conditioning is i n corporated into the solar house, a
concentrator f r o m the Solar E n ergy L a b o r a t o r y w i l l be moved to
the house to provide oil at v e r y
high temperature which w i l l be
stored in a tank. This oil w i l l then,
as needed, be circulated around
burners of a stove and in an oven
so as to allow cooking v e r y simil a r l y as w i t h an electric stove. T h e
electric elements are replaced by
coils of copper tubing.
Such an e x p e r i m e n t a l system
was operated a number of years
ago in our Solar Energy and
Energy Conversion Laboratory. A t
that time, the hot oil was used to
operate a refrigerator in which the
gas flame was replaced by a hot oil
bath. A better and more effective
solar refrigerator has, however,
been developed since.
235
9. The Solar-Electic Car
The solar electric car of the Laboratory is not part of the solar
house as such but can be considered as part of a system providing
the energy requirements for a family, both in the house and the necessary transportation. All this is
from solar energy directly and
pollution free.
For this purpose solar energy is
converted at the present time, into
mechanical work by a hot air engine which in turn drives an automobile generator which can
charge the batteries of the electric
car. This type of conversion from
solar energy to electricity is much
less expensive than the use of solid
state conversion. (12)
A network of "filling stations"
each having such converison
systems and using them to charge
up banks of batteries could, instead
of filling the gas tank of a car with
gasoline, exchange run down batteries for charged ones to provide
the needs of the traveler.
10. Discussion and Summary
Much more information could
have been given if space limitations had not prevented this. (13)
The solar house has now gone
through almost two years of being
provided by solarly heated water,
by a solarly heated swimming pool,
being heated by solar energy,
having some of its liquid wastes
recycled and having some electricity provided on an experimental
and demonstration basis. Some of
the different systems are reported
upon separately in other papers
presented at this conference.
The water heating system performed satisfactorily, providing
the hot water requirements for the
household. The heating system,
even though it was not operated all
the time at optimum condition,
showed that it could provide the
heating requirements for the
house. Originally it was operated
manually and later automated. The
heating system was also operated
differently to study its characteristics; such as heating all the
water in the storage tank to an
achievable temperature or only
heating a portion to a much higher
temperature. The latter was necessary when peak requirements were
necessary to be met in the early
morning hours during extrme cold
snaps.
No difficulty was observed with
the recycling plant or the solar to
electricity conversion unit.
The air-conditioning system is
Fig. 7. Solar-Electric Conversion Unit
under study now as well as the
solar cooking system. The units
which have previously been designed and evaluated in the University of Florida Solar Energy
and Energy Conversion Laboratory are being redesigned and modified to fit the requirements of the
house. When time and funds
permit, they will be incorporated
into the operation of the house.
The solar-electric car, which is
driven by a staff member to work
every day to gain operating data
and experience of such transportation under urban traffic conditions, rounds out the problem of
providing the energy needs for a
family from solar energy.
This is the first time that the
University of Florida Solar House
has been written up, and to the
best of our knowledge, this house
incorporates more uses of solar
energy than any other in existence.
It is mainly intended as a demonstration unit to show how solar
energy, our only income of energy
and the only pollution free energy
source, can be used to satisfy our
present energy requirements and
needs.
In closing, it might be said again
that not all the conversion methods
are economically competitive at
the present time, but the ones
which are should be used as soon
as possible wherever they fit in to
prevent the wasteful and indiscriminate use our energy resources. Such waste is unwise and
a loss to future generations.
11. Bibliography
1. E. A. Farber, Practical Applications of Solar Energy, Consulting
Engineer, Sept. 1956.
2. E. A. Farber, Solar Water
Heating; Present Practices and
Installations, ASME paper #57SA-45, June 1957, and also National Engineer, Aug. 1957.
3. E. A. Farber, et al., Solar Energy
to Supply Service Hot Water, Air
Conditioning Heating and Ventilating, Oct. 1957.
4. E. A. Farber, Selective Surfaces
and Solar Absorbers, Journal for
Applied Solar Energy, April 1959.
5. E. A. Farber, Solar Water Heating
and Space Heating in Florida, The
Journal of Solar Energy Science
and Engineering, Vol. Ill, No. 3,
Oct. 1959.
6. E. A. Farber, The Use of Solar
Energy for Heating Water U.N.
Conference Proceedings on New
Sources of Energy, Aug. 1961.
7. C. R. Garrett, et al., Performance
of a Solar Still, ASME paper, Dec.
1961.
8. E. A. Farber, Solar Water
Heating, Space Heating and
Cooling, Journal of Applied Solar
Energy, Aug. 1960.
9. M. Eisenstadt, Tests Prove Feasibility of Solar Air Conditioning,
Heating, Piping and Air Conditioning, June 1960.
10. E. A. Farber, et al., Operation and
Performance of the University of
Florida Solar Air-Conditioning
System, Journal of Solar Science
and Engineering, Vol. X, No. 2,
April-June 1966.
11. E. A. Farber, A Compact Solar
Refrigeration System, ASME
Paper #70WA/Sol 4, Dec. 1970.
12. H. R. A. Schaeper, et al., The University of Florida Solar-Electric
Automobile, Mechanical Engineering, Nov. 1972.
13. E. A. Farber, Solar Energy: Conversion and Utilization, Building
Systems Design, June 1972.
236
The University of Florida
Solar Energy Laboratory
by
E. A.
Professor
&
Research
Solar
Director,
University
Energy
of Florida,
International
FARBER
Professor
of Mechanical
& Energy
Conversion
Gainesville,
Solar
Energy
Paris,
July
Florida
Society
Engineering
Laboratory
32611
USA
Meeting
France
1973
ABSTRACT
The Solar Energy and Energy Conversion Laboratory of the University o f
Florida is one of the largest of its kind. It is the home of the Solar Calorimeter, and
among its activities are the determination of solar properties o f materials, solar
water heating, solar swimming pool heating, house heating, air conditioning and refrigeration, solar cooking and baking, solar distillation, high temperature applications — solar furnaces, solar power generation both mechanical and electrical, solar
sewage treatment and liquid waste recycling, solar-electric transportation, etc.
The laboratory has a solar house where many o f the devices developed in the laboratory are being used and their performance observed. It also has a solar-electric
car which is driven by a staff member daily to obtain in use performance information.
237
1. Introduction
Since our civilization is built
upon energy resources which have
to be classified as savings (fossil
fuels are stored solar energy), and
these resources are limited, it was
decided about two decades ago to
establish at the University of
Florida a Solar Energy and Energy
Conversion Laboratory. Its mission
was to study the feasibility of
providing our energy needs by
conversion of solar energy, our
only energy income. This source is
readily available, w e l l distributed
and does not add anything to the
environment when converted into
other forms.
The Solar Energy and Energy
Conversion Laboratory of the U n i versity of Florida is one of the
largest laboratories of this kind. I t
has pioneered in almost all phases
of solar energy utilization and is
the home of the Solar Calorimeter
which provides almost all the i n formation on solar characteristics
of fenestrations published i n the
Handbook of the American Society
of Heating, Refrigerating and A i r
Conditioning Engineers, which is
used by architects and engineers.
The objective is to provide the
forms of energy which are needed
for our daily life by the conversion
of solar energy i n the simplest
manner, using the fewest possible
steps along the most direct route.
The activities of the laboratory
cover: the determination of solar
properties of materials, solar water
heating, solar s w i m m i n g pool
heating, house heating, air conditioning and refrigeration, solar
cooking and baking, solar distillation, high temperature applications
— solar furnaces, solar power generation both mechanical and electrical, solar sewage treatment, l i q uid waste recycling, solar-electric
transportation, etc.
The laboratory has a Solar
House where many of the devices
developed i n the laboratory are
being used and their performance
is observed. I t also has a SolarElectric car which is driven by a
staff member daily to obtain i n use
performance information.
I n the following some of the
larger projects are discussed.
238
2. Solar Properties of Materials
The solar laboratory has extensive facilities to study the solar
properties of materials, the most
flexible instrument being the Solar
Calorimeter, Fig. 1, which is essentially a well instrumented black
cavity which allows the mounting
of materials to be studied as
shown. Extensive instrumentation
allows the measurement of income
energy of high, and low wave
length radiation, convection and
conduction, and delicate heat balances provided by hundreds of
thermocouples. The instrument
can be oriented in any desired
position with respect to the sun,
simulating walls and inclined or
flat roofs, or it can be made to
follow the sun.
A small weather station and an
instrument building go with this
instrument. It is possible to simulate winter conditions by use of a
refrigeration system and summer
conditions by means of electric
heaters or ambient conditions if
desired. Utilizing the real sunshine
rather than artificial sources has
been found of considerable value
since simulations did not seem to
be too reliable.
Materials such as glasses (plain,
tinted, coated, laminated, multilayered), plastics (transparent and
translucent), glass brick, Venetian
blinds (som§ of them water
cooled), drapery materials, sun
screens of all kinds, etc. have been
investigated. (See references 2, 3,
4, 5).
Actual air movement blowers on
the instrument can simulate wind
conditions for the tests.
Photospectrometers, hot and
cold boxes, etc. are also available.
The solar radiation is monitored
continuously and this laboratory is
the only inland station in Florida
with a solar irradiation record of
more than two decades.
In addition to the determination
of solar properties, the laboratory
has exposure test facilities to evaluate the weathering properties of
materials. This is often done before
studying the materials in detail.
Two 1.5 m diameter solar furnaces
are used for high temperature
work.
Once the true properties of materials are known the best can be
selected for the conversion of solar
energy into the required forms.
3. Solar Refrigeration and Air
Conditioning
One of the real needs is the
ability to preserve food. This can
Fig. 2. Five Ton Solar Air Conditioner
239
be done by solar refrigeration
w h i c h is ideally matched to the
energy supply. Cooling is needed
most w h e n the sun shines hottest.
Solar energy can be used to drive
an engine and then a compressor to
provide compression refrigeration,
or the heat f r o m solar energy can
be used in an absorption refrigeration system. These and a few
other systems have been developed
in the laboratory.
Steam j e t refrigeration was also
tried at one time, and oil heated by
the sun was used to replace the gas
flame of a gas refrigerator. These
methods w o r k e d but were not considered
the
best since
they
required concentration and thus
could not utilize the diffuse portion
of the solar energy and would not
w o r k on cloudy days.
For this reason the emphasis was
put on flat plate solar collectors
providing the energy to operate
absorption refrigeration and a i r conditioning systems.
Flat plate solar absorbers heat
w a t e r which is the energy source
for absorption refrigeration or a i r conditioning systems. I n an a m monia-water
system the
heat
u
drives the ammonia from solution.
The ammonia is then condensed
and the liquid expanded. This
makes it v e r y cold and able to a b sorb heat, thus providing the
cooling. T h e w a r m e d vapor is
reabsorbed in the w a t e r and circulated back to start its cycle over
again.
The above process can be carried
out i n t e r m i t t e n t l y or continuously.
Fig. 2 shows a 5 ton a i r - c o n d i tioning system, Fig. 3 a small solar
ice machine which can produce as
much as 36 k g of ice on a good day.
(2,7,8).
Storage can be provided in the
form of hot water, ammonia or ice.
The latter has the advantage that it
can be moved to different locations
and therefore service other than
just the immediate area.
The ice machine as a 1.3 x 1.3 m
solar collector w h i c h serves at the
same time as the ammonia generator, not requiring solar water heaters. Its conversion is slightly better
since no heat is lost in heat
exchangers.
A water driven air-conditioning
system is the easiest to combine
w i t h a solar heating system p e r m i t t i n g double use of m a n y parts.
4. Solar
Power
Generation
A rather extensive program in
the laboratory deals w i t h power
generation. M a n y engines of dif-
*
Fig. 3. Compact Solar Refrigerator
Fig. 4. Closed Cycle Hot Air Engine
240
ferent designs and operating on
different principles have been designed and evaluated. Some of
them do not have moving parts.'
However, at this time it seems that
the vapor and hot air engines have
the most promise.
A number of fractional horsepower vapor engines and hot air
engines have been built and used
to pump water, drive machinery,
or drive electric generators to
charge batteries for night use or
for transportation in the solarelectric car.
The closed cycle hot air engine
shown in Fig. 4 can develop about
horsepower, the limitation not
being the engine but the concentrating mirror which is about 1.5 m
in diameter. A larger mirror would
allow the engine to put out more
power. These engines only need a
source of heat and therefore can be
operated with wood, coal, gas or
oil, if nighttime operation is
required.
In the closed cycle hot air engine
the enclosed air is alternately
heated and cooled When brought in
contact with the hot and then the
cool walls. When the air is hot the
pressure is high and the power
piston is pushed down; when the
air is cool the flywheel returns the
power piston against low pressure.
A plunger moves the air back and
forth between the hot and cool
walls. (2,9,10).
In the closed cycle engine the
speed of the engine is controlled by
how fast the air can be heated and
cooled. To separate the speed of the
engine from the heat transfer characteristics open cycle engines were
designed. Fig. 5 pictures one of
those engines.
In the open cycle hot air engine
the air is taken in and compressed.
I t is then moved through a heater
where it reaches high temperatures. From the heater it flows
through the engine where it is expanded, doing work, and then exhausted to the atmosphere. The engine and the compressor are coupled together. By this method the
engine speed and the heat transfer
characteristics are independent.
The above tjvo engines require
concentration of solar energy and
thus need rather good days for
operating. Vapor engines have
been designed and built which use
flat plate absorbers to generate
vapor at relatively low temperatures and use it in vapor cycles.
The V - 2 vapor engine is described
in detail in another paper presented at this conference.
Fig. 6. Solarly Heated Sewage Digesters
5. Sewage Treatment and
Liquid Waste Recycling
Among other applications of
solar energy is sewage treatment.
It was found that solar energy can
be used to keep the sewage digester temperature up to provide
more efficient bacterial activity. In
this manner the sewage handling
capacity of digesters can be considerably increased. Fig. 6 pictures
solarly heated sewage digesters
which were used in the study.
With fresh water becoming
scarce, liquid waste recycling was
studied and a small solar distillation unit was installed at the University of Florida Solar House to
demonstrate the feasibility of this
process. The 2.1 m 2 unit is able to
produce up to 11 liters of fresh
water on a good day. I t furthermore can collect rain water which,
in Gainesville, doubles the output.
The liquid waste recycling unit
consists of a tray holding part of
the effluents from the house. The
sun shining into this pan vaporizes
241
the water and the steam condenses
on the cool glass cover, runs down
and is collected in troughs and finally in storage bottles. (2,11).
6. The University of Florida
Solar House
Many of the devices developed
in the Solar Energy Laboratory
have been and are installed in the
Solar House, Fig. 7, and observed
under actual operating ccpnditions.
A married graduate student couple
lives in the house which is presently supplied with water heated by
the sun, has a solar heating system,
a solarly heated swimming pool, a
small liquid waste recycling plant
and a small solar energy to 110 volt
AC conversion unit which allows
the operation of lights, radio, T V
and small appliances. Air conditioning and a solar cooking unit
will be added in the near future.
(2).
Fig. 7. The University of Florida Solar House
7. The Solar Electric Car
Fig. 8 pictures the University of
Florida Solar-Electric car which is
dri'ven every day td work by a staff,
member and is evaluated under
actual urban traffic conditions. The
batteries can be charged by solar
energy with a hot air engine-electric generator system. (2,12).
8. Closure
• Much more research and development work carried out in our
laboratory could be cited but space
does not permit this. It has been
shown that all forms of energy
required in pur daily life can be
provided by the conversion of solar
energy and some of the methods
are more competitive with conventional methods today than others.
The references will give more detail on this.
As time goes on and the conventional fuel sources become more
expensive, the economics of solar
energy will become more and more
favorable. For this reason it is
believed, by the writer, that we
will move from a fossil fuel society
to an interim nuclear society and
ultimately by necessity to a solar
society. Then we will truly derive
our needs from our energy income.
9. Bibliography
1. C. W. Pennington, University of
Florida — ASHRAE Solar Calorimeter, ASHRAE Journal, Vol. 8,
No. 3, March 1966.
2. E. A. Farber, Solar Energy: Conversion and Utilization, Building
Systems Design, June 1972.
Fig. 8. The University of Florida Solar Electric Car
3. E. A. Farber, Selective Surfaces
and Solar Absorbers, Journal for
Applied Solar Energy, April 1959.
4. E. A. Farber, Theoretical Effective
Reflectivities, Absorptivities, and
Transmissivites of Draperies as a
Function of Geometric Configuration, Solar Energy, Vol. VII, No.
4, Oct-Dec. 1963.
5. E. A. Farber, Experimental Analysis of Solar Heat Gain through
Insulating Glass with Indoor
Shading, ASHRAE Journal, February 1964.
6. E. A. Farber, "Crystals of High
Temperature Materials Produced
in the Solar Furnace", Solar
Energy, Vol. VIII, No. 1, JanMarch, 1964.
7. E. A. Farber, et. al., Operation and
Performance of the University of
Florida Solar Air-Conditioning
System, Solar Energy, Vol. X, No.
2, April-June, 1966.
O
8. E. A. Farber, A Compact Solar
Refrigeration System, ASME
Paper #70WA/SOL4, December
1970.
9. E. A. Farber, et. al., Closed Cycle
Hot Air Engines, Solar Energy,
Vol. IX, No. 4, October-December
1965.
10. E. A. Farber, Hot Air Engines,
Mark's Mechanical Engineers'
Handbook, 7th edition, McGrawHill Book Company, New York,
1966.
11. E. A. Farber, "The Application of
Solar Energy to Sewage Digestion
and Liquid Waste Recycling",
Proceedings of the Third National
Convention of the Institute of
Plumbing Australia, March 1973.
12. H. R. A. Schaeper, et. al., The University of Florida Solar-Electric
Automobile, Mechanical Engineering, November 1972.
@FedFRASER