Apr 11
22
Green Tips for the Lazy
In this era of eco-friendliness, even the laziest among us feel some guilt when tossing a soda can into the trash. While you may never compost your coffee grinds, you no longer have to go out of your way to be better to the earth. Several companies make it convenient to go green by offering recycling bins near the front door. And while cans, plastic bags, battery and phone disposal boxes have become common, here are some items you may not realize local stores and businesses will accept:
Retire old drugs safely: Don’t dump unneeded medicine down the toilet because it could end up in our water supply. But if you missed your community’s “Take Back” day, Walgreens recently rolled out the Safe Medication Disposal Program. For $2.99, customers can put expired or unused prescription drugs or over-the-counter drugs in a sealed envelope, which are later incinerated. Other participating retailers are listed at the TakeAway site, run by Sharps Compliance Inc…
Read more: Green Tips for the Lazy
China’s leadership in the green technology sector represents “a wake-up call” for California companies but it also provides opportunities, a top state official said Wednesday.
In just a few years, China went from being “barely on the map” to the largest manufacturer of solar panels and the largest energy consumer in the world, said Margret Kim, a deputy director at the California Environmental Protection Agency and head of the agency’s China program.
Kim cited a recent study by the Pew Charitable Trusts that found that Chinese companies invested a record $54.4 billion in wind, solar and other green projects in 2010, exceeding No. 2 Germany and the United States, which invested $34 billion last year.
Everyone seems to know that California currently leads in the nation in installed solar capacity. Many, however, do not know that New Jersey is the second largest solar state in the U.S. with 137 megawatts of installed solar power in 2010 which was almost a 140% increase over the 57.3 megawatts installed in 2009 and 517% increase over the 22.5 megawatts of installed New Jersey solar in 2008. In addition, New Jersey became the second state (California) to install over 100 MW in a single year.
What is the reason for New Jersey solar success? Most states in the U.S. offer solar cash rebates based on the size of the solar system. Usually it is between $1 – $3 per watt of a solar system which amounts to between $4000 to $12,000 state rebate assuming a 4 kilowatt solar system. Combine this with a federal income tax credit of 30% of the cost of the solar system (after the state rebate is deducted), the initial cost of solar is dramatically reduced.
New Jersey, however, does not operate on such a state rebate system. They actually used to offering cash rebates up to 50% of the cost of a solar system, however, currently the cash rebate system is limited to wind and biomass renewable energy projects. Cash rebates for solar were exhausted in 2010.
New Jersey offers a very unique solar incentive system. First, the New Jersey Board of Public Utilities supervises a loan program called the Solar Loan II program which was opened in December 2009 with $143 million in available loans to support 51 megawatts of installed solar capacity throughout New Jersey. The Solar Loan II program offers loans which cover 40-60% of solar power system costs. These loans, which are funded by rate payers, offer residential solar systems 10 year loans at a 6.5% interest rate and non-residential systems a 15 year loan at an 11.3092% interest rate. The actual loan amount is based on how much energy the system is expected to generate in its’ lifetime. These loans are only available to systems smaller than 2 megawatts in installed capacity that are net metered and generate Solar Energy Renewable Credits (SRECs) (see below). While the interest rate on these loans is relatively high, it allows customers to repay the loan and interest with the SREC…the heart of New Jersey solar incentives.
So what is an SREC? An SREC represents 1 megawatt-hour of electricity generated from an eligible renewable system. Think of it like a stock certificate where its value is based on the amount of electricity your solar system produces. And just like stocks, SRECs are sold on an open market at varying prices correlated to demand.
Launched in 2004, New Jersey’s online SREC trading market was the first of its kind and has helped to dramatically increase the monetary value of SREC’s. Why? Easy…New Jersey law requires its utilities (in the aggregate) to produce 5,316 gigawatts of solar energy by 2026 (New Jersey currently uses over approximately 82,000 gigawatts of energy a year). In order to comply with this requirement, New Jersey utilities purchase SREC’s on the open market forcing the price per SREC to go up.
What is interesting about New Jersey’s SREC market is that it essentially has a price ceiling and a price floor, providing much needed stability in a relatively new market. When an electricity supplier does not purchase enough SRECs to fulfill the solar RPS, the supplier must pay a Solar Alternative Compliance Payment per missing megawatt. The payment for the 2010-2011 reporting year is $675 per missing megawatt. If the price of an SREC were to rise above the $675 compliance payment, a utility would have no incentive to purchase a SREC on the open market, therefore creating a price ceiling.
As far as a price floor, PSE&G buys SRECs at a minimum basement price of $420 and $380 per megawatt, for residential and small commercial systems. As a result, this creates a price floor. The price floors decline semi-annually depending on system size and sector. If the price per SREC is higher than the basement price (they usually are) customers will receive the market price and this will help reduce the principle amount on the loan for your solar power system. If the loan is repaid early, PSE&G retains the right to purchase the SRECs at 75% of the market price for the remaining loan term. After the loan term, customers will retain the rights to any generated SRECs, although according to state laws a solar system is only eligible to produce SRECs for the first 15 years of operation.
As a result of the SREC structure, consumers really benefit. For every megawatt of electricity your solar system produces, whether you use the electricity of not, you will receive an SREC. For the average family with a 5 kW system, an SREC is produced about every 2 months. SRECs have an average price of about $560, meaning, if you sell them on the market, you’ll have about $280 back in your pocket every month to help pay any costs associated with buying the solar system. Those payments should continue for up to 15 years from the date the solar system comes online. And as an alternative to cash payments from selling SREC’s on the market, customers may sign over their SRECs to PSE&G to repay any or loan payments on their solar power system, if any. All in all a win-win for New Jersey utilities and their residents and one of the main reasons why New Jersey solar is so popular.
Source: Solar New Jersey
The Arizona Court of Appeals recently upheld a lower court decision rejecting a challenge by The Goldwater Institute over the Arizona Corporation Commission requirement that Arizona utilities source 15% of their electricity from alternative sources, such as solar power and wind power, by 2025.
The Center’s main arguments were that (1) the ACC’s rules were an un-constitutional power grab as the ACC “has jurisdiction over the quality of service and rates charged by public service utilities” but that the ACC does not have the authority to set energy policy, which is the legislature’s role, and does not have the authority to require utilities to charge more and (2) as part of the mandate to convert to clean energy, the ACC required electricity companies to impose a surcharge on each of their customers where, the Center argued, consumers would have to pay millions of dollars in tariffs to help their power providers offset the costs of implementing solar and other renewables requirements.
The Court of Appeals’ opinion was that the elected commissioners do have the authority to make such rules because they relate to power rates. “In formulating the [renewable energy] rules, the commission considered the price fluctuations, transportation disruptions, and shortages associated with conventional fuel sources, noting that renewable resources are not subject to these same vagaries,” the judges wrote.
The Phoenix-based Goldwater Institute is an independent agency supported by people “who are committed to expanding free enterprise and liberty.” The Goldwater Institute was founded in 1988 with the blessing of five-time U.S. Senator and 1964 Presidential candidate Barry Goldwater (R-AZ). They are expected to appeal the decision to the Arizona Supreme Court by the May 9th deadline.
A San Diego Gas & Electric proposal to spend up to $600 million on a Montana wind farm has been pared back after consumer advocates complained it put too much customer money at risk. The Rim Rock wind farm will still be built, but at less than two-thirds the size, and requiring less than half as much money from SDG&E electric bills.
The utility agreed to fund a big part of the project after financing problems caused construction delays, which in turn hurt its ability to meet state green-energy goals. SDG&E President Michael Niggli said he’s happy with the deal, which also calls for the utility’s investors to put money into the farm.
Read more: SDG&E wind farm scaled back after protests
Solar industry executives expect the number of solar installations across the U.S. to surge over the next two years as the cost of solar comes down.
Bloomberg New Energy Finance recently estimated that photovoltaic projects will cost $1.45 a watt to build by 2020, half the current price. Electricity from coal costs about 7 cents a kilowatt hour compared with 6 cents for natural gas and 22.3 cents for solar photovoltaic energy in the final quarter of last year, according to New Energy Finance estimates. The London-based research company says solar is viable against fossil fuels on the electric grid in the most sunny regions such as the Middle East.
According to some solar experts, comparisons often overstate the costs of solar because they may take into account the prices paid by consumers and small businesses who install roof-top power systems, instead of the rates utilities charge each other.
According to New Energy Finance, Chinese companies such as JA Solar Holdings Ltd., Canadian Solar and Yingli Green Energy Holding Co. are making panels cheaper, fueled by better cell technology and more streamlined manufacturing processes which is making solar more economical as compared to coal based energy-generation.
According to Michael Liebreich, chief executive officer of New Energy Finance, “The most powerful driver in our industry is the relentless reduction of cost…[i]n a decade the cost of solar projects is going to halve again.”
New Energy Finance estimates that solar installation costs will almost double to 32.6 gigawatts by 2013 from 18.6 gigawatts last year. This is supported by the fact that manufacturing capacity worldwide has almost quadrupled since 2008 to 27.5 gigawatts, and 12 gigawatts of production will be added this year.
Apr 11
5
Reflections on Then and Now: Growing up in the Growing Solar Industry from East to West Coast
By Christopher Williams
I got my humble start in solar in the Northeast as a student in the early 2000’s interested in sustainability and self-sufficient living. My original goal was to learn about these topics enough so I could go back to the land, too, and continue my work as a renewable energy and sustainability advocate.
Instead, my fortune changed in a very unexpected way.
In the Beginning
I was a product of the tie-dye t-shirt and sandals days of solar; when what mattered was that you were a True Believer In The Cause. I spent a lot of time reading Home Power Magazine, volunteering at sustainability-related events, and bending the ears of the old guard environmentalists who were among the minuscule percentage of people to live off the grid with solar. In the late 1990’s in the Northeast: this was about as close as you could get to solar without going back to the land yourself.
Read More: Reflections on Then and Now: Growing up in the Growing Solar Industry from East to West Coast
Secondary U.S. markets for solar power are continuing to grow, demonstrating overall health of the U.S. solar power market. According to a study by the Solar Energy Industries Association (SEIA) and GTM Research, the total amount of photovoltaic panels installed on roofs in the U.S. was approximately 878 megawatt which was double the 435 megawatts installed in 2009 around the U.S. California, as usual, lead the nation in installed solar power with 258.9 megawatts, however, this represented only a 22% increase in installed solar power from 2009 (212.1 megawatts). Other U.S. states, however, are beginning to cut in to California’s overall market share.
First, New Jersey is the second largest solar state in the U.S. with 137 megawatts of installed solar power in 2010 which was almost a 140% increase over the 57.3 megawatts installed in 2009 and 517% increase over the 22.5 megawatts of installed New Jersey solar in 2008. In addition, New Jersey became the second state (California) to install over 100 MW in a single year. Other states saw dramatic increases in solar capacity as well. Arizona installed 54 megawatts of solar and Colorado installed 53.6 megawatts of solar each of which was double the prior years output (21.1 megawatts Arizona solar and 23.4 megawatts of Colorado solar). In addition eastern states like Pennsylvania, Connecticut, Massachusetts are also seeing substantial growth in the solar markets despite the fact they are predominantly cold weather climates, mostly due to aggressive state solar rebate programs.
The diversification of U.S. market share is as pronounced as it is important. In 2004-2005, California comprised around 80% of the U.S. solar market, but by 2010 California’s market share fell to less than 30%. As the California Solar Initiative nears the tale end of its funding, the growth of secondary state markets becomes more crucial to overall U.S. market growth. According to the Executive Summary of SEIA’s 2010 review, “The fractured nature of the U.S. Pv market presents difficulties in achieving efficiency through economies of scale. However, the U.S. market benefits from a variety of incentives and market structures such that it is unlikely to experience a national boom/ bust cycle like those witnessed in European feed-in tariff markets. The more that secondary markets can prove their worth, the more stable the national market will become.”
California has led the country in solar policy and solar rooftop installations, but keeping its lead won’t be easy. It will take more public money, for one thing, and that could be a tough pitch to make in light of the state’s big budget shortfall. The president of the California Public Utilities Commission, Michael Peevey, laid out some of the challenges that California solar faces this year during a talk at a summit in Silicon Valley Tuesday.
1). RAM in limbo: Deploying the 1 GW Renewable Auction Mechanism (RAM) program, approved by the CPUC last December, has hit a snag as the CPUC deals with critics who filed protests against proposals from the three major utilities on how they would carry out the program. The CPUC issued a suspension order on Monday to half the program’s implementation for up to 150 days.
RAM aims to boost mid-size renewable energy projects by requiring utilities to hold auctions twice a year and offer standardized contracts to buy power from projects that are 20 MW or less. The program is California’s answer to calls by some solar energy advocates for a feed-in tariff policy, in which the government would require utilities to buy renewable electricity and pay government-set prices. Peevey said feed-in tariff’s have one major flaw, which is their dependence on the government to set prices. “RAM provides many of the same benefits of a feed-in tariff, such as standardized contract terms, but it will encourage competition.”
Peevey said the suspension shouldn’t seriously derail the program’s deployment and still believes the first auction will take place this year.
2). WWJD: What will Jerry do?: The state Assembly on Tuesday passed to get 33 percent of their electricity from renewable sources by 2020. The state already had the 33 percent goal, created by an executive order from former Gov. Arnold Schwarzenegger, but the bill will make it tougher to change the mandate. The bill now heads to Gov. Jerry Brown’s desk. The new governor styled himself as a renewable energy advocate while campaigning last year, though he hasn’t said publicly whether he would sign the bill.
“I’ll be surprised if he doesn’t sign the bill,” Peevey said.
3). CSI running out of money: The program has played a key role in turning the state into the largest solar electricity market in the country. The program, which provides rebates for solar installations or pays for solar energy generated from installations, has been so popular that it may run out of money sooner than expected. The state Legislature will likely consider whether to provide additional funding, Peevey said.
The CPUC launched the 10-year program in 2007 and aimed to add 1,940 MW of solar at homes, businesses, schools and government. By the end of 2010, the state already had reached 42 percent of the goal…
Read More: 5 Challenges for California Solar.
Now that renewable energy is once again back in focus due to the crisis in Japan, more scrutiny is being placed on the viability of this market in the U.S. The following report by Reuters highlights some of the challenges that the U.S. faces for broad-scale implementation of renewable energy across the nation. According to Reuters, not only does the renewable energy industry face headwinds in terms of public education and financial support but also faces direct challenges from oil and gas producers who are far more capitalized than wind and solar providers. Watch the report for more.
