Commercial Rooftop PV – A New Business Opportunity for the Roofing Professional Gary S. Thompson Firestone Building Products 250 W. 96th St., Indianapolis, IN 46260 Phone: 317-853-4610 • E-mail: thompsongary@firestonebp.com and John G. Schehl, RRC, CAE Roof Integrated Solar Energy 10255 W. Higgins Rd., Ste. 600, Rosemont, IL 60018 Phone: 847-493-7503 • Fax: 847-544-0837 • E-mail: jschehl@riseprofessional.org 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 T h o mps o n a n d S c h e h l • 2 0 1 Abstract Commercial rooftops can provide an ideal platform for PV system installations by offering clear horizons that reduce shading, streamline electrical system integration, increase security, and conserve real estate. As a result, roof-mounted PV installations are flourishing. However, integrating roof and PV systems can be very challenging. Building owners need and expect their roofs to be watertight and their warranties maintained. When PV system installers are unfamiliar with current roofing technologies or best practices, they increase the building owner’s risk for roof leaks, voiding of roof warranties, and unexpected expenses that threaten the anticipated return-on-investment for deployment of solar arrays. This session’s speakers will show why market trends favor the commercial rooftop as the site of choice for solar systems and why the roofing professional needs to be involved in every installation. It will review the landscape of informational resources available to roofing professionals interested in this new business opportunity. Speakers Gary S. Thompson – Firestone Building Products Gar y Thompson is general manager of innovative products and services with Firestone, where he leads a team that supports field sales, installation, and specification of new, complex roof-enhancement systems such as rooftop photovoltaics, garden roofing, and daylighting. Prior to his current role, Thompson was general manager of Firestone Energy Solutions, general manager of GenFlex Roofing Systems, and a regional business manager for Firestone’s North Central sales territory. He is a member of the Roof Integrated Solar Energy (RISE) Board of Directors and holds a BA from Indiana University. John G. Schehl, RRC, CAE – Roof Integrated Solar Energy John Schehl has been active in the roofing industry since 1972, including serving 14 years as education staff for the NRCA. He has been the executive director of RISE since 2010. Schehl is also president of RoofMax Consulting LLC and a partner with J2 Performance Group. He holds a master’s degree in human resource development and is a Certified Association Executive and Registered Roof Consultant. 2 0 2 • T h o mps o n a n d S c h e h l 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 INTRODUCTION Rooftop mounted solar power production is here to stay. If you have not yet encountered solar arrays on commercial roofs or clients wanting them, you will. Rooftop photovoltaic (PV) solar electricity generation is already a permanent part of the roofing landscape and will only grow as power generation from traditional sources becomes more expensive. This discussion will focus on the market for commercial rooftop PV solar installations and the issues created when these heavy, expensive, long-lived power plants utilize the roofing assembly as their substrate. Using the rooftop for this alternative purpose creates a need for roofing professionals to be involved in the design and installation of commercial rooftop PV power plants. THE PV MARKET Despite the recent recession in the United States, installation of PV solar power has accelerated dramatically over the past few years. As shown in Figure 1, total PV installations for 2012 in the United States generated 3,313 megawatts (1 MW = 1,000,000 watts), an impressive 76% yearover- year increase that rocketed the U.S. to a global market share of more than 11% of total worldwide PV power installed. The PV market is tracked in three segments: utility, nonresidential, and residential. The nonresidential segment accounted for 1,043 MW, over 31% of total new PV power generation built last year and, thus, is the focus of this paper. With installed costs in the range of $2.50-$4.00 per watt, the commercial rooftop PV market exceeded $1,000,000,000 in value in 2012. Within the United States, California continues to lead all states for PV deployment. However, PV projects are rapidly expanding into many other states (see Figure 2). WHAT MAKES A GOO D PV MARKET? Market vitality depends upon the intersection of three criteria: 1) good insolation Commercial Rooftop PV – A New Business Opportunity for the Roofing Professional 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 T h o mps o n a n d S c h e h l • 2 0 3 Figure 1 – Total U.S. PV installations for 2012. Figure 2 – U.S. solar PV market demand by state, third quarter 2012 through second quarter 2013. (solar radiation), 2) high electricity rates, and 3) incentives. Generally speaking, the entire United States has good-to-adequate insolation for PV power production (see Figure 3). Two of the most successful PV markets in the world—Germany and Ontario, Canada— generally have lower insolation than the United States and yet have become world leaders in PV deployment due to aggressive incentive programs and relatively high electricity rates. Electricity rates vary widely. Hawaii, most of New England, California, and parts of the Intermountain West already have electricity rates in excess of $0.15/kilowatt hour (kWh) (see Figure 4). The authors forecast increasing infla- 2 0 4 • T h o mps o n a n d S c h e h l 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 Figure 3. Figure 4 – Electricity price distribution in U.S. tionary pressure on the cost of electricity as political and environmental forces push the United States away from relatively inexpensive (but dirty) coal-fired power production to cleaner energy production sources. Coal consumption for electricity production is at approximately 40% nationwide but already 12.5% off its historic high as new EPA regulations force older coal-burning power plants to be shuttered (see Figure 5). With no affordable technology available to meet strict standards for new power plant construction, it appears coal consumption for power production has entered a long period of decline, which will necessarily result in higher electricity rates as costs for these conversions are passed on to rate payers. Incentives for renewable energy in the United States begin with the federal 30% tax credit available through 2016, at which time it reduces to 10%. Many jurisdictions have additional incentives available through state, municipal, or utility programs. These programs are easy to identify through the excellent Database of State Incentives for Renewable Energy maintained by North Carolina State University at www.dsireusa.org. Meanwhile, the cost of solar installations has fallen dramatically since 2007. The average selling price for solar modules has collapsed from $3.50/watt to under $0.70/watt (see Figure 6). This convergence of increasing costs for carbon-based electricity, widely available incentives, and the decline in the installed cost of PV systems is creating a golden age for PV. “Grid parity,” the long-awaited cost neutrality of renewable and carbon energy, is rapidly becoming a reality in an increasing number of states. According to a recent report by Deutsche Bank Securities, at $3.00/watt installed, ten states are currently at grid parity utilizing only the current 30% federal tax incentive. When installed costs drop to $2.50/watt, the number of parity states jumps to 22. By 2016, Deutsche Bank Securities forecasts 47 states in parity. This foreshadows a widespread, rapid adoption of PV. DISTRIBUTED GENERATION Why will the commercial rooftop be the beneficiary of this explosive growth in the PV market? As noted earlier, 31% of PV power production in the United States was installed on commercial rooftops in 2012, while utility-scale applications accounted for nearly 54% of the total market. We believe that over time, these percentages will shift in favor of the commercial rooftop, primarily because it is “distributed generation” (DG), which simply means that the source of power production is closer to the end user. While large utility-scale solar farms have the potential to create a lot of power, they also require dedicated use of large tracts of land and major infrastructure investments to transport the energy to endusers. Utilities are coming under increasing pressure from the public to avoid disruption of natural habitats and permanent consumption of arable lands. Many of the easy-access land tracts have been used in this recent wave of utility-scale power plants, making each successive solar farm more difficult to justify and permit. Meanwhile, millions of acres of commercial rooftop in industrialized America go unused. Not only would these sites enjoy all the benefits of distributed generation, most rooftops have the built-in advantages of being elevated away from shading with relative security from theft and vandalism. The desirability of the commercial rooftop as a platform for construction of a solar power plant is complicated by one thing: the roof. Obviously, the commercial roofing system is there to perform a primary function of waterproofing the top of the building. The vast preponderance of in-place commercial roofing systems do a fine job of meeting this primary criterion, but they are not designed to perform a secondary function as the permanent platform for a heavy, expensive, long-lived PV array. It stands to reason that when we require a system to perform additional new functions, additional design requirements are also needed. So it is with the commercial roofing system that is forced to become an integral part of a rooftop solar array. 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 T h o mps o n a n d S c h e h l • 2 0 5 Figure 5 – Electricity Net Generation: Total (All Sectors), 1949-2011. Figure 6 – PV module ASPs and demand in MWp, 2002-2012. THE PV ROO FING SYSTEM The design of the commercial roof intended as a substrate for a photovoltaic solar array should focus on creating concurrent— or equivalent—life cycles for both critical systems. Most PV modules are warranted for 25 years on an efficiency basis. At the end of its warranty period, a 25-yearold crystalline silicon PV panel is guaranteed to still be producing 75-80% of its original power output, meaning it will still have significant value. PV systems are generally sold on a financial basis, promising the owner a certain return on investment (ROI) based on the uninterrupted performance of the system. Most analyses only go out to the end of the panel warranty period. Every owner needs to understand that by extending this window of uninterrupted performance beyond the panel warranty period, the ROI will continue (increase) for each and every additional year. The roofing system installed as the support structure for the typical ballasted racking system must go the distance with the PV panels. Allowances are typically not made in ROI calculations for deconstruction expense or the loss of production that occurs when PV must be decommissioned, disassembled, and moved for roof maintenance or replacement. These costs will typically be borne by the building owner and subsequently destroy the very ROI upon which the owner decided to purchase the PV! Installation of rooftop PV should only be considered at the time of reroofing or very early in the life of a 25-year-plus roof design intended for PV support. The building owner should be educated to understand that at year 25 of a successful reroof and PV installation, the PV will still be generating free electricity. Therefore, the goal of his roofing system designer should be to extract every additional year of free electricity production possible by maximizing the life cycle of the roof, not only to year 25 but beyond. Design the roofing system around the longest warranty available from your favorite roofing manufacturer. Use heavy-duty components wherever possible. Use highdensity coverboards over thermal insulation to protect from traffic and heavy ballasted racking systems. Choose fully adhered systems over mechanically attached. Specify the thickest membranes available. Pay particular attention to the interface between racking system and roofing membrane. Check with your roofing manufacturers of choice for their latest technical recommendations and warranty requirements. The cost of these roofing system upgrades is relatively minor compared to the $25-$40/ SF spent on PV. INSTALLATION OF COMMERCIAL ROO FTOP PV Solar industry participants have frequently referred to installation practices as currently being in the era of the “wild west,” meaning that there has been a lot of trial and error with few standards. Many solar integrators or solar-only contractors are unlicensed, with little more than manufacturer guidelines to rely upon during installation. Those of us approaching rooftop PV from a roofing industry perspective understand how important it is to safeguard the condition of the roofing membrane during any construction activity after installation of the roofing system; this may be the single greatest rationale for a building owner to retain services from a roofing professional during the design and installation of any rooftop PV system. Fortunately, some order is emerging from the chaos as various groups attempt to develop guidelines and certifications for installation. ROO F SYSTEM UPGRADES AND BEST PRACTICE GUIDeLINES The National Roofing Contractors Association (NRCA) publishes a technical document titled Guidelines for Roof Systems With Rooftop Photovoltaic Components. This document provides industry best practices for low- and steep-slope PV system integration. It should be noted that roofing system manufacturers publish proprietary guidelines for integrating roof-mounted solar PV systems with their roofing system and should be consulted directly prior to PV system design for any specific rooftop PV project. RACKING AND ATTACHMENT GUIDELINES FOR LOW -SLOPE ROO F SYSTEMS The Center for Environmental Innovation in Roofing (CEIR) offers a series of best-practice guidelines for racking and attachment of solar PV systems for all low-slope roof system types. Just released at Intersolar NA 2013, PV Racking and Attachment Criteria for Effective Low-Slope Metal Panel Roof System Integration provides a guide to practitioners for the design, installation, and long-term maintenance of rooftop solar racking systems on metal panel roofs. The document is the second in a series of guidelines published by the PV Taskforce. First published in July 2012, “PV Racking and Attachment Criteria for Effective Low-Slope Roof System Integration” has been updated to provide a level of continuity for both documents. Copies of these documents may be downloaded at http://roofingcenter.org/ main/Initiatives/pv. BUILDING CODES, UL, AND FM Requirements for PV systems were mostly absent from the International Building Code (IBC) until the 2012 edition wherein (not surprisingly to the roofing industry) specific requirements are found in Chapter 15—“Roof Assemblies and Rooftop Structures.” It is important to realize that rack-mounted PV systems meet the definitions of rooftop structures, and buildingintegrated photovoltaic (BIPV) systems are considered roof coverings and thus part of a roof assembly. There are currently no specific requirements applicable to roof-mounted PV systems or components found in the 2012 International Residential Code (IRC). Requirements for roof-mounted PV systems are also found in the 2012 International Fire Code (IFC). Specifically, in Chapter 1—“Scope and Administration,” Section 105.7, are unique permit requirements; and in Chapter 6—“Building Services and Systems,” Section 605.11, are requirements that address markings, labeling, signage, locations of DC conductors, and rooftop access and pathways. The NFPA 1: Fire Code, 2012 Edition, contains similar requirements in Chapter 11—“Building Services”; Section 11.2, “Photovoltaic Systems”; and Section 11.12.2, “Building-mounted Photovoltaic Systems.” Requirements for electrical system design and integration of PV systems are found in the National Electric Code (NEC), Article 690, “Solar Photovoltaic Systems.” The authors recognize that PV system electrical design and integration should only be done by qualified and properly licensed professionals. Another reference PV system design professionals need to be aware of is a report published in 2012 by the Structural Engineers Association of California titled “Wind Loads on Low-Profile Solar Photovoltaic Systems on Flat Roofs” (SEAOC PV2). The design 2 0 6 • T h o mps o n a n d S c h e h l 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 wind loads for solar photovoltaic arrays on flat-roof, low-rise buildings are not covered by the prescriptive methods contained in ASCE 7, Minimum Design Loads for Buildings and Other Structures. This paper describes the wind flow characteristics on rooftop solar PV panels and the development of this information into a figure similar to that used in the prescriptive methods contained in ASCE 7 using the same design methodology. Underwriters Laboratories (UL) and FM Global are both heavily engaged in evaluation of safety and performance of photovoltaics on and off the rooftop. FM 4478, Approval Standard for Rigid Photovoltaic Modules, evaluates rigid PV modules for their performance in regard to fire from above the structural deck, simulated wind uplift, susceptibility to hailstorm damage, and seismic performance requirements. It applies to all rigid PV modules intended to be 1) mechanically fastened through or adhered to an FM-approved single-ply, polymer-modified bitumen sheet, built-up roof, liquid-applied roof cover, or steep-slope roof; 2) mechanically fastened or adhered to a metal roof cover assembly using clamps or other types of fasteners, adhesive, or welding; or 3) loose-laid and ballasted over an FM-approved, fully adhered single-ply, polymer-modified bitumen sheet or built-up roof cover assembly. This standard also applies to panels secured to racks and/or rack framing that is independently secured to the building structure, roof deck, or metal roof cover, or ballasted, and to the rack itself and its securement. FM 4476, Approval Standard for Flexible Photovoltaic Modules, evaluates flexible photovoltaic modules for their performance in regard to fire from above the structural deck; simulated wind uplift; susceptibility to hail storm damage; and heat-aging effects on the substrate when these products are adhered to or mechanically fastened through an FM-approved, single-ply, polymer- modified bitumen sheet, built-up roof, liquid-applied, or metal roof cover assembly. An issue that is at the forefront of the PV industry is fire resistance of in-place roof-mounted PV systems. Codes require roof assemblies to be fire-resistant, and they also recognize that roof-mounted PV systems are part of the roof assembly. Many roof systems are tested using ASTM E108, Standard Test Methods for Fire Tests of Roof Coverings, and then listed as Class A, B, or C. ANSI/UL 1703 covers the construction, performance, testing, rating, and marking of “Flat-Plate Photovoltaic Modules and Panels” and utilizes UL 790, Standard Test Methods for Fire Tests of Roof Coverings. PV modules and panels are then listed as “Class A,” “Class B,” “Class C,” or “Not Rated.” The issue arises when a PV system and a roof assembly are integrated. This roof assembly configuration, using various combinations of manufacturers’ products, has yet to meet the standards set forth in ANSI/UL 1703. Working committees of the Solar Energy Industries Association (SEIA) are working closely with UL on this issue. The authors are aware that the interests of the roofing industry around this issue are well represented in this SEIA committee. PROFESSION AL PV INSTALLER CERTIFICATION S There are currently two primary professional certification programs in the PV world for individuals who design, supervise, sell, and/or install PV systems. The Certified Solar Roofing Professional (CSRP) certification is designed specifically for roofing consultants, contractors, and other design professionals who are most qualified and knowledgeable about performance issues relating to the integration of roofing and solar PV systems. The CSRP credential is administrated by Roof Integrated Solar Energy (RISE), an organization founded jointly by NRCA and CEIR. Information about the CSRP professional credential may be found at www.riseprofessional. org. The NABCEP PV Installation Professional credential is designed for individuals who consider themselves installers, project managers, foremen/supervisors, and designers, and has a heavy focus on electrical systems and installation. This certification is administrated by the North American Board of Certified Energy Practitioners (NABCEP). More information may be found at www. nabcep.org/certification. When considering these two credentials, it is important to realize that a CSRP credential does not qualify a roofing contractor, consultant, or others to design PV electrical systems or perform work regulated by licensed electricians or contractors. Nor does the NABCEP credential qualify others to install, maintain, or repair roofing systems or issue roof system warranties. SUMMARY The advent of rooftop PV has created an entirely new industry utilizing the rooftop as a revenue-producing asset. Today’s building owner cannot afford to ignore the financial benefits available from this previously unused space. Roofing professionals have an opportunity to expand and diversify their businesses within their traditional workspace. The authors see roofing industry professionals as an important “value-add” in the process of designing and installing rooftop PV—one that will ultimately benefit the building owner by creating and protecting a superior integration of these two systems that results in a tangible increase in ROI. The confluence of falling installed costs and the step down of the federal tax credit at the end of 2016 will create a “gold rush” of rooftop PV projects over the next three years striving to capture these benefits before they are reduced. By 2017, the installed costs of rooftop PV may be low enough and the cost of carbon-based electricity high enough that a large majority of states will be at grid parity, even with the tax credit reduced to 10%. If the roofing industry ignores this business opportunity, we will see other trades gladly fill the vacuum. RESOU RCES 1. GTM Research/SEIA “U.S. Solar Market Insight Report, 2012 Year in Review” 2. NPD Solarbuzz, North America PV Markets Quarterly 3. National Renewable Energy Laboratory (NREL), Resource Assessment Program 4. U.S. Energy Information Administration 5. Database of State Incentives for Renewable Energy, www.dsireusa. org. 6. S. Vishal, J. Booream-Phelps, S. Min, “Distributed Generation to Herald New U.S. Growth Era,” Deutsche Bank Markets Research, September 2013 7. National Roofing Contractors Association, Guidelines for Roof Systems With Rooftop Photovoltaic Components 8. Center for Environmental Innovation in Roofing, PV Racking and Attachment Criteria for Effective Low-Slope Metal Panel Roof System Integration 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4 T h o mps o n a n d S c h e h l • 2 0 7 9. Center for Environmental Innovation in Roofing, PV Racking and Attachment Criteria for Effective Low- Slope Roof System Integration 10. Underwriters Laboratories, www. ul.com/global/eng/pages/offerings/ industries/energy/renewable/ photovoltaics 11. FM Global, “Understanding the Benefit of FM-Approved Photovoltaic Modules,” Nov. 2011, http://www. fmglobal.com/assets/pdf/P11203. pdf 12. International Building Code, 2012 edition 13. International Fire Code, 2012 14. NFPA 1: Fire Code, 2012 edition 15. National Electric Code (NEC), Article 690, “Solar Photovoltaic Systems” 16. Roof Integrated Solar Energy, Certified Solar Roofing Professional, www.riseprofessional.org/ 17. North American Board of Certified Electrical Practitioners (NABCEP), www.nabcep.org/certification 18. Structural Engineers Association of California (SEAOC PV2) http:// www.documents.dgs.ca.gov/dsa/ dsaab/csc04-12-12_agenda-Item- 5B_SEAOC-WindLoad.pdf 19. FM Global “Approval Standard for Flexible Photovoltaic Modules” http://www.fmglobal.com/assets/ pdf/fmapprovals/4476.pdf 20. FM Global “Approval Standard for Rigid Photovoltaic Modules” http:// www.fmglobal.com/assets/pdf/ fmapprovals/4478.pdf 2 0 8 • T h o mps o n a n d S c h e h l 2 9 t h RC I I n t e r n a t i o n a l C o n v e n t i o n a n d T r a d e S h ow • Ma rc h 2 0 – 2 5 , 2 0 1 4
