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SPG Solar, Inc.
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WATER-COOLED 566 KILOWATT SOLAR ENERGY SYSTEM INSTALLED BY SPG SOLAR, INC. AT SOUTH FEATHER WATER & POWER AGENCY

State-of-the-Art Cooling and Cleaning Components are Ideal for Water Treatment Plant

SAN RAFAEL, CALIF. (July 20, 2004)— SPG Solar, Inc. (SPG) announced today the commissioning of the 566 kilowatt DC solar photovoltaic (PV) system for the South Feather Water & Power Agency, Oroville, California. The 2.2 acre solar system, mounted on unused land adjacent to the freshwater treatment plant, provides all the electrical power for plant operations, including pumps, controls and other equipment, during the day. The treatment plant, which runs 24/7, uses grid power at night and on rainy days.

SPG designed and built the solar PV system to perform at its highest potential. The ground-mount panels are tilted at the optimum angle to collect the most sunlight on summer afternoons. Water provided under pressure by South Feather both cools and cleans the solar panels to boost productivity. The total cost of the system was $4 million, of which $2 million was rebated by the California Public Utilities Commission.

The solar PV system produces surplus energy on sunny days, which is automatically sent to the grid for credit with PG&E in a state-mandated arrangement called net energy metering. The combination of solar energy and utility credits, which South Feather taps into for nighttime operations, will completely eliminate the agency’s net annual electric bill. South Feather will enjoy free energy after 2024, when the solar system will be paid off. The solar panels are warranted against degradation by the manufacturer for 25 years.

Energy costs are one of the largest expenses in running a water treatment facility. South Feather experienced spiking electric bills in the past five years, like all businesses and public works agencies in California. In 2003 South Feather’s electric bill, a significant component of the water agency’s annual budget, exceeded $160,000. The bill rose 17% annually over the previous five-year period.

“Going solar allows us to have more control over our rates,” said Michael Glaze, general manager of South Feather Water & Power. “As PG&E’s rates go up, our ratepayers’ water rates have to go up, too. I can’t imagine that a public agency would sit around and continue to pay an ever-increasing electric bill. When they can have the power for less money, doing nothing just does not make sense.”

Glaze assumed that PG&E, the local electric utility, would continue to raise rates, causing instability in South Feather’s annual budget. In recent years the agency has asked ratepayers to reduce water consumption between noon and 6:00 PM to save water and reduce energy use. The water agency switched to PG&E’s A-6 time-of-use rate schedule and installed more efficient pumps to reduce the treatment plant’s electricity demand and save money.

“By the time the solar project is paid for, our utility electric bills will be double what they are now, whereas with the solar system our payments are fixed over the next 20 years, and after that they’ll be free,” said Glaze. “Going solar was essentially the only choice.”

The 566 kW system, which generates the equivalent energy needed to supply 200 homes, removes South Feather’s demand on the public utility grid and adds energy to the grid during afternoon peak demand periods when California needs it the most. The state has a shortfall of energy on hot summer afternoons when air conditioning is in high use. This is also when solar produces the most energy.

The South Feather solar system replaces 603 tons of carbon dioxide that would otherwise be emitted into the atmosphere annually by a typical California natural gas-fired power plant. It takes 47 acres of trees to absorb this much CO2.

Designed for High Performance
The half-megawatt solar system, which was designed and installed by SPG’s engineers and crew, is composed of 3,060 Sharp 185-watt PV panels, two Xantrex PV225 inverters and one Xantrex PV45 inverter. The arrays, or groups of PV panels, are tilted at a 22.5-degree angle to collect the most sunlight during peak periods on summer afternoons at South Feather’s latitude.

PG&E’s time-of-use rate schedule is unique in the United States. During peak demand periods, from noon to 6:00 PM, May 1 through October 31, the utility charges 3.7 times the off-peak rate. Likewise, PG&E credits renewable energy producers 3.7 times the off-peak rate for energy that they send back to the grid during peak periods. South Feather’s solar system is oriented to earn these valuable peak-period credits, which the water agency taps into at night and on rainy days.

The active component of PV panels is silicon, and like silicon computer chips, PV panels perform most efficiently when cool. Heat causes electrical resistance in silicon, slowing computer chips and reducing energy production in solar panels.

Where computers have fans to keep the chips cool, SPG mounted the PV panels on open steel supports to allow air to flow across the top and bottom of the panels so they can shed heat. South Feather’s own crews graded the 2.2-acre PV system site and covered it with a weed barrier and crushed gravel to allow cool air from the nearby reservoir to flow unencumbered across the panels.

For very hot days, SPG integrated a water misting system with the steel supports for the PV panels. Water under pressure, readily available at the site, is supplied by South Feather. The misting system automatically switches on when the air temperature climbs over 90° F (32° C). A fine mist sprays into the space between the PV panels and the ground to move stagnant air and break up the convection effect. This lowers the temperature of the PV panels, boosting performance by up to 6%.

A separate water spray system installed by SPG rinses dust off the top surface of the panels during dry periods to keep them clean and productive. Airborne dust that settles on PV panels reflects sunlight, reducing their ability to generate electricity. The cleaned PV panels have up to a 4% value advantage.

The South Feather solar system is monitored in real time by SPG’s proprietary SunSpot® software and hardware system. Actual electrical production is posted live to an interactive kiosk in South Feather’s customer service center in downtown Oroville, and is also available on the Internet.

How Solar Works
Solar energy systems are composed of PV panels, inverters and a performance monitor. PV panels convert sunlight into DC (direct current) electricity. The inverters change the DC into safe, usable AC (alternating current), the same power supplied by electric utilities. The AC is distributed through a facility’s electrical service panels and flows to outlets, lights and switches. The performance monitor shows the amount of power the system is actually producing at any time. Solar is a clean and renewable form of electricity generation. PV systems generally have no moving parts (with the exception of solar tracking systems), is silent, and produces zero emissions - air, ground or water.

About SPG
SPG is the industry's most experienced developer, designer, and installer of solar photovoltaic (PV) systems for homes, businesses, and large-scale commercial and government facilities. SPG's commitment is to build the highest-performing solar PV systems with the highest return on investment. The result is clean, reliable electricity that reduces or eliminates customers' electric utility costs. SPG is headquartered in San Rafael, California, and has regional offices in Oroville and Carlsbad, CA. SPG is a bonded and insured General B, Solar C-46 and Electrical C-10 Contractor, California license #759086.