How much upfront capital will my organization need to go solar?

You might think “How much do solar panels cost?” is the right question to ask, but it’s really not. Here’s why: The price of solar panels, as well as the amount of energy they produce, varies widely—and it depends on many variables. The more useful question for businesses is “How much upfront capital will my organization need to go solar?” The answer to that depends on how you decide to pay for your solar project. If you purchase the system outright, the amount of capital you’ll need may depend on how much you plan to finance and your lender’s requirements. But if you choose to lease a solar system or enter into a (PPA), you may be able to get solar with zero upfront. Ask about your options and explore them thoroughly with a solar financing expert to see which model is right for you.

Message us at Get A Quote - Reon Energy and we will give you further details.

How much money can my organization expect to save with a commercial solar power system?

The key to getting a useful answer to this question is to specify that you want a long-term cost savings estimate—such as how much you’re likely to save over 20 years’ time. This is important because solar is meant to last for decades, and one of its main advantages is that it can protect your business from volatile and generally rising fossil-fuel-based energy price changes. Discussing business incentives to go solar. If you purchase your solar system, it can take a few years to break even, but then you’ll really start to see the savings. If you lease a solar system or enter into a power purchase agreement (PPA), there’s usually no money required upfront, so you can start to see savings in your energy bills from day one.

Reon energy solutions is the only company in pakistan that is equipped to give you such answers with logical explanations. Post your questions at Get A Quote - Reon Energy and you will get the response.

When will electricity be free?

Inam ur Rahman
CEO, Dawood Hercules Co. Ltd.

Some amazing stuff has happened in the world of renewable energy. Almost a month ago, Dubai Electricity and Water Authority – DEWA – was able to secure a solar tariff of 2.99 Us Cents per Kilowatt hour of electricity from a private developer for a 800MW Solar project. This was not only unprecedented but remarkably came just a year after the earlier project at 5.85 cents was deemed unfeasible by most market players. In an interesting twist, all major players bid less than 5 cents in this phase – and all of this is unsubsidized. What is happening? Is everyone going crazy? This is the cheapest energy available anywhere in the world. Even DEWA has a Coal contract at a much higher price. The next step, I guess is that Electricity will become free.

And Solar is not the only technology with such compelling rates. Wind energy is almost at the same level in certain markets. What is even more interesting is that developed economies are now leading the way by actively replacing thermal plants with renewable energy. They are doing it because it just makes good business sense.

Portugal electricity consumption was fully covered by solar, wind and hydro power in an extraordinary 107-hour run that lasted from 6.45am on Saturday 7 May until 5.45pm the following Wednesday this year. Germany was almost completely (95%) on renewables on May 11 this year. Yes these guys have figured out a way to forecast winds and sunlight to the extent that they can manage impact of intermittent generation. Despite crashing oil prices, the maximum investment in the world in new generation in 2015 was in Renewables.

Sadly Pakistan is falling behind the times on both Wind and Solar. Especially solar is considered unreliable in a country where we have good quality sunlight more than 300 days a year. There is something seriously wrong. I refuse to believe that a nation which is ready to embrace the latest technology in mobile communications and satellite television would not take the leading position in renewables as well. We have everything going for us and the cheapest and most widely available energy source is being wasted on a daily basis.
Governments all over the world have put in regulations and facilities to integrate solar generation in to their national grids. Till our government takes a proactive approach, we will still be burning oil and coal whilst the rest of the world enjoys free electricity from the sun. Or better still – if the Pakistan government deregulates this sector, then the private sector and entrepreneurs will ensure that we are actually rid of load shedding by the time the next elections come around.

Why powering your Industry with solar energy will be best investment decision you can make?

Samir Ahmad
Manager- New Business Ventures

Pakistan’s total generation capacity in 2015 was between 23000 MW to 24000 MW, out of which 66 % was thermal based, 30% was hydroelectric based, 3% was nuclear based and nearly 1% was both wind and solar energy. On an average 3000 to 5000 MW of energy shortfall was experienced by Pakistan in 2015. According to 2014 statistics, a considerable proportion of this power generation was used in powering the commercial and industrial sector of Pakistan, which is our economy lifeline. As a nation, the extent to which our economy depends on fossil fuel based thermal generation marginalizes our energy security at a global level.

Pakistan is one of the most blessed countries when it comes to solar energy availability throughout the year. The solar energy potential ranges from 1500 to 2200 Kwh/m2/ year and varies based on geography, making it the 6th luckiest country in terms of solar potential. Generally speaking the solar energy availability increases from north to south, with the south western part exceeding well beyond the 2200 Kwh/m2/year mark. Germany on the other hand has a solar potential ranging from 1100 to 1300 Kwh/m2/day however already has 39 GWp of solar PV installed mainly due to attractive feed in tariffs.
Pakistan’s commercial & industrial sector (C&I) primarily depends on grid power with diesel generators available for standby power to maintain uninterrupted operations. The price of energy (Kwh) is one of the highest in the region coupled with low reliability makes energy cost for businesses in Pakistan one of the highest operational cost. With highly competitive local and global markets it is becoming more and more difficult for businesses to survive. Finding a solution to this is now imperative at many levels.

One promising way to address this challenge is to increase the adoption of cheap and sustainable forms of distributed generation (DG). Grid connected or hybrid type solar PV generators on rooftops or ground space is one of the best candidate to address this challenge in the C&I sector. The cost of solar PV per KW installed has come down by 80% since 2008. The cost of energy per unit (Kwh) is already much cheaper than current grid prices and makes a very attractive commercial case, however variables do vary from industry to industry. It is important to carry out a detailed technical and commercial feasibility by field experts before implementing solar PV power at your facility. By going solar PV as a captive generator at your facility you are not only locking your energy rates for the long term but also cushioning your business from highly volatile global oil and gas prices. This increases the businesses energy security and gives the business the much needed foresight to its operational cost.

Apart from the commercials there are a number of other advantages that solar PV bring in to the equation. Like reduced dependence on the national grid resulting in increase in national generation capacity, increased reliability of the distribution system on which you are connected, reduced industry internal line losses, internal transformer upgrades can be deferred, drop in cooling requirements in summer as roof is shaded with solar PV modules, significant boost in health, safety and environment of any industry. Most of these advantages also add to the commercial value of going solar while staying connected to the grid.
All of these reasons make solar PV one of the most preferred sources of generation globally. The C&I sector in Pakistan should collectively & aggressively look into promoting & adopting solar PV generation at their facilities by talking to field experts.

Renewable Energy – A Response to Climate Change

What is the significance of a one-degree Celsius rise or fall in temperature?

It is not a minor difference. It is the difference between ice and water; between a healthy body and a feverish one. The human body’s normal core temperature is 37-38°C; if it heats up to 39-40°C, muscles slow down and a fever burns. If a single-degree rise in temperature is this significant to a human body, consider the consequences to our planet Earth if the global temperature were to increase by four degrees by 2100, knowing that an average increase of one degree across its entire surface means huge changes in climatic extremes.

Resulting changes in weather patterns may result in heavy rainstorms and severe flooding or drought, disrupting living patterns, agriculture, and economies. Security experts and scientists such as UK Chief Scientific Advisor David King suggest that climate change poses a greater security threat than terrorism. It’s the hardest problem humanity has ever faced; the most difficult and dangerous problem humans have ever created. It is predicted that if greenhouse gases continue to be released into the atmosphere at the current rate, the average temperature around the world could rise by about 4 to 12°C by the end of this century. We have a planetary emergency. We must understand how to act quickly and decisively to preserve our planet and our lives.

The good news is that we have a way to control it through low-carbon technologies and renewable energy resources. Currently, 85% of all the energy in the world is produced with fossil fuels. However, we have enough wind potential to power the world forty times over; enough solar energy reaching Earth every hour to meet the energy needs of the world for a year. Promoting these and other sources of renewable energy is an important part of climate activism, especially in industrialized nations, which are large producers of greenhouse gases.

We need global action and global mobilization to prevent our planet’s brewing fever. We all have to be incredibly active, and act together to solve this issue. We have to heighten our sense of urgency, and increase our sense of responsibility. Climate change is not just a political issue: it’s a moral and social issue, in which we are all accountable. Speak up and exercise your rights as a citizen to advocate for a better future, because a collective action complemented by national policies shall make real impacts. We must encourage our communities to act, and ask our political leaders to tackle climate change. It is important to change our laws and habits to preserve a healthy future for ourselves, and our generations.

Rehana Aziz
Lead-Planning and Costing Engineer
October 19, 2016

Climate change and its effect on Pakistan

Pakistan has been struggling for decades to manage crises from infrastructure issues to rooted corruption to rampant terrorism. While our department and authorities try to get a handle on the above mentioned issues a silent threat looms in the shadows, climate change! Pakistan contributes very little to the overall Greenhouse Gas (GHG) emissions, but remains at a growing threat of climate change disasters:

• Glacier melt in the Himalayas is projected to increase flooding will affect water resources within the next two to three decades. This will be followed by decreased river flows over time as glaciers recede.
• Freshwater availability is also projected to decrease which will lead to biodiversity loss and reduce availability of freshwater for the population.
• Coastal areas bordering the Arabian Sea in the south of Pakistan will be at greatest risk due to increased flooding from the sea and in some cases, the rivers.
• Being a predominantly agriculture economy, climate change is estimated to decrease crop yields in Pakistan which in turn will affect livelihoods and food production. Combining the decreased yields with the current rapid population growth and urbanization in the country, the risk of hunger and food security will remain high. 
• Endemic morbidity and mortality due to diseases primarily associated with floods and droughts are expected to rise. Increases in coastal water temperatures would exacerbate the abundance of cholera. 
• The impact of climate change will also aggravate the existing social inequalities of resource use and intensify social factors leading to instability, conflicts, displacement of people and changes in migration patterns.

The consequences of climate change are aggravated when combined with man-made modifications that have a drastic effect on the overall ecosystem. It not only upsets the balance of the environment, but also increases susceptibility to natural calamities like cyclones and tsunamis.Alarmingly, the area of Pakistan that is covered by mangrove forests has decreased from 400,000 hectares in 1945 to 70,000 hectares today due to land grabbing, rising sea levels, and the decreasing flow of fresh water into the sea. According to the World Wildlife Federation (WWF), the mangrove trees play a critical role in buffering the coastline from erosion caused by waves and storms.
Pakistan runs on an agrarian economy. From 1949 to 1950, Pakistan’s agriculture sector was responsible for 53 percent of the total GDP. From 1980 to 1981, this number had dropped to 31 percent; in recent years, it has fallen even further to 21.4 percent. Experts fault the drop on increased floods and droughts. The decrease in agricultural contributions to national GDP have subdued the economic growth of the country.

According to a report published by the U.S. Department of Defense, “climate change will aggravate global instability, posing an immediate threat to national security.” Among other factors, the report identified strained water supplies due to melting glaciers as a factor that could trigger instability. Pakistan ranks as the sixth-most populous country in the world, and is already unable to meet the growing water demand. The flooding and droughts destroy billions of dollars’ worth of crops every year, increasing the rates of inflation and unemployment. In addition to the water shortage, the long- term damage to fields and crops will lead to food scarcity. If this trend continues, Pakistan will be unable to meet the demands of its population, which is growing by nearly 2 percent each year. Currently, Pakistan has allocated 58.8 million rupees to combat climate change, a commitment that must be increased. Since Pakistan is not financially secure enough to afford climate change implementation programs on its own, it needs assistance from public, private and international donor organizations as well as climate change experts who can design comprehensive programs to slow down the climate change process.
The government of Pakistan, must follow strict guidelines and adopt more intense and frequent reporting of their progress to counter climate change.

Source Credits:
http://foreignpolicy.com/2016/03/04/pakistans-big- threat-isnt- terrorism-its- climate-change/
https://www.dawn.com/news/1322335

Can Solar produce energy in cloudy weather?

Solar panels work on optimum productivity on clear days with abundant sunshine. But, do solar panels work in cloudy weather? Yes… just not quite as well on a cloudy day, solar panels can produce 10-25% of their rated capacity. The exact amount varies depending on the density of the clouds, and may also vary by the type of solar panel; some kinds of panels are better at receiving diffuse light. REON Solar Panels, for example, have been designed to capture a broader range of the solar spectrum. By capturing more red and blue wavelengths, the solar panels can generate more electricity even when it’s cloudy.

Earth’s surface receives an abundance of Ultraviolet light during cloudy days (if you’ve ever been at the beach when it’s overcast and gotten a suntan, you’ve experienced this firsthand). Some solar panels are in development that can capture UV rays, although these are not out on the market yet. Even with a standard solar panel on a cloudy day, though, you will be able to generate some power when it’s daylight. The same thing is true in foggy weather. If you live in a city with frequent fog, like San Francisco, you’ll still be able to generate electricity when the fog rolls in.

Some of the places with the most installed solar, in fact, aren’t known for their sunshine. Germany gets only about as much sunshine as the state of Alaska, but Germans have successfully installed about 38 gigawatts of solar power– half of the entire world’s supply. Portland, Oregon is known for its rainy, dreary winters, but is another good location for solar power: over a full year, despite the winter weather, Portland gets as much sunshine as the average U.S. city. Cities like Portland also have slightly cooler weather than average, which is an advantage for solar panels. Because of the electronics inside, solar panels work most efficiently when they are cool. It’s more important to look at it from a long-term perspective. When you’re looking at how solar power can help you save money on your electric bill, you’ll be considering how much sunshine you get over an entire year, not any day. If you’re generating more power than you need, your electric company will look at what you’ve produced over a full year as they calculate how much to pay you. The good news is that even if you live in a city that isn’t known for its sunshine, you may likely still get enough bright light over a year that solar power can make sense for you.
If you have solar panels and keep a close watch on your power output, you may have noticed a strange phenomenon: on a partly cloudy day, it’s possible to exceed your solar system’s power rating and produce more power than you could on a sunny day. Known as the “edge of cloud” effect, this happens when the sun passes over the outer edge of a cloud, magnifying the sunlight. The intense light causes your solar system to boost power output temporarily, which can help balance out losses from full cloud cover.

So, bottom line – do solar panels work in cloudy weather? Yes, they do. But only 10-25% as well. However what matters is how much sun you get year-round. Cloudy days will come and go, but on the average, it’s not going to effect the return on investment of solar panels.

Winds blowing in right direction

Inam ur Rahman
CEO, Dawood Hercules Co. Ltd.

Yesterday, the electricity regulator NEPRA (National Electric Power Regulatory Authority) held its latest hearing for tariff determination for Wind IPPs in Pakistan. I was extremely enthused by the number of people who turned up for the hearing as well as the level of participation. It was another demonstration of the belief that investors have in Pakistan and in renewable energy. There was also a lot of passion shown by all stakeholders – even the ones representing other government departments.

For the record, NEPRA had called this hearing to obtain public views on their proposal to bring the tariff from wind projects down to about 8.2 cents per KwH. This is a significant reduction from 10.44 cents (around 20%) announced just a year ago. This is also important because now energy from Wind would be one of the cheapest sources for new projects in the country. Isn’t this fantastic!. Not only is it renewable – but it is cheap too. No more highly polluting conventional power plants are needed. We can now start to look towards a cleaner future for our children. At the same time we need to push the government to adopt these technologies quicker. It was mentioned that India has more than 24,000 MW of wind generation only. All of this has been put in the last few years. Pakistan has about 21,000MW of total capacity built in last 70 years and just 400 MW on Wind. We are being left far behind very rapidly.

True there are so called challenges in the widespread adoption of renewables in our country. Often disguised as ‘technical’ or ‘financial’, I find that these are mostly challenges of ignorance and vested interests. Its also not unusual for people to dismiss new ideas especially when these conflict with their own beliefs or their commercial interests. This has been happening for ages across all industries. Yet sooner rather than later, new and improved technologies prevail and companies that refuse to change die out quickly. Take Kodak for example. It did not take digital cameras seriously because these challenged their film business. They used to argue that digital cameras would never be as good as film. Guess what – the consumer did not care. The result – Kodak has now been almost completely wiped out. The same will happen to these polluting thermal plants that burn preciously dwindling natural resources. Its simply a matter of a few years.

What are the pitfalls to avoid when buying a solar system?

1. Looking for the most inexpensive solution
One of the most obvious mistakes we as solar customers can make. It is important to not go too far on your hunt for the best value system on the market. If the offer seems too good to be true, chances are that’s exactly what it is. Solar power is a significant investment that should be thought of as a renovation to your office, with a relatively higher return on investment.

2. Don’t just throw panels on the roof
Solar Power systems are designed for certain types of roofs. A good supplier will survey your roof, evaluate the solar potential, and suggest the proper panel based upon the results. Your roof and the solar system should work together to maximize the energy output. Systems which are not catered to your specific roof are less likely to function properly and more likely to require additional adjustments, repairs, or replacements.

3. Installing an enormous system that you don’t need
Your energy needs are one of the most important factors in your decision to move onto Solar. Knowing the required size of system to get for your business depends on a lot of factors. When it comes to solar panels, bigger is not necessarily better. If you have carried out adequate research, any reputable installers you happen to choose will be able to figure out what size of a system will be best for you. You need to weigh up the cost of the system with the financial returns it will deliver. A good solar solutions company shall evaluate and help you understand your needs before the final purchase.

4. Solar consumer and their rights
As a customer, it can be a formidable experience trying to find correct, unbiased information when purchasing a solar power system. It’s important to know exactly what you need, and even more so what you don’t need, when purchasing a solar power system. For example, opinion on necessary solar system maintenance and servicing periods vary widely. Likewise, know that the right warranty is extremely important when purchasing your system, as it’s a long term investment that needs a level of insurance and reliability down the track. Make sure you read the fine print of your warranty agreement.

5. Taking your first offer
Doing your research is the most important thing with any investment, and solar systems, particularly with the addition of storage, are no different. You mustn’t trust the first offer you get. Research, look around, ask and then finalize!

6. Off-grid system and going green
Going off the grid sounds appealing for many reasons. Before battery storage technology was on the market, many people were drawn by the off-grid systems so they could go ‘completely green’. At the end of the day, the economics will determine whether you can sustain such a decision, and although you’ll be able to feel great about your carbon footprint, it’ll mean nothing if you can’t afford to keep doing it. If you’re considering solar panels in an urban area, go with a grid connected system and make (economically) sustainable choices. If you install a basic on-grid solar system, make sure it’s easily set up to upgrade to battery storage, as this will be the greenest way to progress your solar investment!

7. Shaded roof doesn’t mean solar wouldn’t work
It’s really important to never make assumptions as to whether you’re eligible for solar power. Solar panels that are being developed are very efficient and the presence of a shade or the absence of sunlight on certain day might not affect the energy production as much as you think it would.

8. Supporting your solar system
Acquiring solar should not be the only way to reduce your energy consumption and carbon footprint. Simply switching to solar won’t make you as energy efficient as you can be. Small, low cost additions to your office like insulation, window shades and responsible electricity use can all lower your energy consumption and increase your solar savings.

9. The wait on new technology
It is understandable that when you first invest, as is the case with any technological spending, consumers tend to hang out for the latest and greatest high tech gadgets to be released. New technology is certainly a reality for the solar industry, and while many technologies are worth the wait – i.e. solar storage – you will be waiting around forever if you want the latest and greatest thing. The reality is, new technology is being released all the time, and you could miss the boat on incredible long term benefits if you wait for too long.