Why solar is a bright idea for load displacement
Solar is getting cheaper and more efficient than ever
As we settle into dark, rainy days for the next six months, solar panels may not seem like they could make a big difference to displace your electrical energy demand or load. But solar photovoltaic (solar PV) costs have fallen by up to 90% in the last decade and are also around 40% more efficient than they were in 2010.
There’s a growing interest in B.C. for using solar to generate electricity on site and become more energy self-sufficient. Some customers are also starting to store any excess in a battery-based energy storage system.
We spoke to two customers from completely different organizations who both took advantage of our custom incentives for load displacement this summer and installed solar PV systems. Let’s find out all about their real-world experiences.
Canadian Bavarian
Canadian Bavarian Millwork and Lumber Ltd. (CanBav) has been specializing in high-end custom millwork, manufactured lumber and architectural products in Chemainus for over 40 years. CanBav has been committed to environmental and community values for decades: “20 years ago, we started moving to a greener way of powering our operation,” says owner and operator Georg Wörnle. “We added biomass boilers, completely moving away from natural gas. More recently, BC Hydro supported a large LED lighting retrofit which was followed by the electrification of our forklift fleet. And after that, the next step was solar. We want to be as renewable as possible.”
They partnered with Shift Energy Group, a B.C.-based design-build firm specializing in solar and energy storage projects. “Canadian Bavarian had been talking to us about adding solar for a few years,” says Shift founder and President, Colyn Strong. “For a long time, the high capital cost meant the payback for large rate consumers was too long. We were excited when BC Hydro reached out to see if we had any projects for piloting load displacement that they could support.”
“Every load displacement project requires a lot of planning because we're not allowed to supply power back into BC Hydro's grid,” says Colyn. “We need to consider what the facility is consuming, analyze their usage patterns, then design a solar solution to best match the demand on site. Every client is unique.”
Construction kicked off at the beginning of summer and things moved fast. “We had a very ambitious goal to complete the project by July 31,” says Georg. “Shift and BC Hydro were fantastic – with quick turnarounds and great communication. It only took about six weeks from start to finish which meant we could catch the last few months of sunny weather.”
The new solar PV panels are expected to produce more than 50% of Canadian Bavarian’s annual energy needs, displacing a lot of load. The next step is to add a battery under BC Hydro’s energy storage incentive, which will help save another 10 to 15%. Additionally, the energy storage system will reduce demand by almost 80%, says Colyn.
But lowering your energy costs and successfully managing your demand aren’t the only benefits of adding solar PV. Colyn and the Shift team also helped Canadian Bavarian identify significant tax savings too. “There's a clean technology Investment Tax Credit (ITC) that allows companies investing in renewable energy and energy storage projects to recoup 30% of their capital costs as a refundable tax credit,” says Colyn. “As well, the Accelerated Capital Cost Allowance (ACCA) allows investors an accelerated write-off on certain equipment used to produce energy from alternative renewable sources. This might mean up to 50% savings on the capital cost of commercial solar projects depending on the client's tax bracket.”
The SHED at UBC
Meanwhile, at UBC’s Vancouver campus, another solar project supported by BC Hydro is part of the SHED (Smart Hydrogen Energy District). SHED is a research project the size of a city block where clean energy developers can explore the performance of different technologies within an integrated energy system.
Samuel Arulnathan, Operations Manager for SHED, explains: “We’re mostly focused on clean energy hydrogen technologies, with a transportation test bed for industry and research to de-risk new technology. The hydrogen we produce is very clean. It's produced by water electrolysis with virtually no carbon footprint. The water electrolyzer is powered by the Thunderbird Parkade’s solar PV rooftop, supported by BC Hydro. We also have EV chargers and a micro grid system connecting all these different pieces together.”
The SHED team were looking for an intermittent renewable energy source to further add to their renewable technology testing. “We were also able to take advantage of some newer solar technologies,” says Samuel. “We have bi-facial solar panels so we can create energy from light on top and also from any reflection off the bottom.”
“We also have a 500 kWh battery that allows us to store any surplus solar energy, especially during the summer months, where we have enough to power our electrolyzer and the EVs – and we still have surplus. If we ever reach maximum storage, we can also distribute the surplus electricity back to our own UBC grid for use by the general campus facilities and operations.”
During the summer, SHED’s solar system generated a monthly average of around 100,000 kWh for June and July. “The system is projected to generate around 800,000 kWh annually,” says Shantanav Bhowmick, a conservation and energy management program manager with BC Hydro. “In the six months since it went live in May 2024, it’s generated 425,000 kWh.”
“BC Hydro have been really supportive,” says Samuel. “They were very collaborative with the requirements during our technical application review, and it was great to work with our Key Account Manger who was the single point of contact. I really appreciated that – it was a very positive experience.”
Solar PV is here to stay
“Installing solar panels in industrial facilities is going to get more and more important” says Kevin Wallace, senior program manager at BC Hydro. “There's going to be more interest in it. And we’re trying to find more ways to help you do it with our incentive programs.”
Shantanav agrees: “It’s a great time to start evaluating the benefits of generating solar and offsetting some of the load on-site for energy savings through load displacement.”
Could solar help your facility with load displacement?
To find out more about solar PV, contact your Key Account Manager or Regional Energy Manager, or call 604 522 4713 in the Lower Mainland or 1 866 522 4713 elsewhere in B.C.