New Ways to Boost Solar Development

New Jersey is the number two U.S. state (after California) for solar power generation. In the hope that market efficiencies could help control costs over time, the state has turned not to a tariff-style guarantee, but to a complex approach that relies on a floating, market for tradable solar renewable energy credits (SRECs).

An oversimplified version: install a solar system on your roof or install a commercial system on a warehouse or in a field and each year you’ll earn SRECs based on how much power your system generates annually — one credit for each 1,000 kilowatt hours. You can then turn around and sell your credits back to companies that generate power for the state’s grid. The companies can use the SRECs to help them meet state renewable portfolio standards that steadily ramp up to a mandate requiring that 22.5 percent of their energy come from renewables by 2021.

The credits are actually sold by brokers on an electronic market, like stocks or bonds, at whatever price the market will bear. At the moment, the market is bearing a fabulous price. It takes a calculator to work through the complexities, but with SRECs currently selling for just under $700, and the federal tax credit as well as a reduced state rebate in play, a homeowner in the state can pay for a solar system in four years or less.

Read full article at WorldChanging.com.

What Can You Do?

The Maui Weekly, July 30, 2009
by Chris Mentzel

Kihei Energy Consultant Willy Bennett calls his photovoltaic (PV) system the best savings account he ever had. A PV system is a set of blue or black panels that make electricity. His system is 2.5 years old and has made him $3,500 in that time—a 12 percent yearly tax-free return.

Next to the panels on his roof are the two familiar solar hot water panels, which are a much more common sight on Maui. These give him an annual, 50 percent tax-free return. Using the power of the sun for heating water and making electricity are two separate technologies that make great sense for your pocketbook—and for the environment.

The cost for a typical residential PV system is $20,000 to 30,000; solar hot water systems run between $5,000 to 6,000. There are several support and loan programs that reduce the actual out-of-pocket cost to less to half of that—sometimes even to zero.

For businesses, the situation is ideal. Any business with a flat roof and available funding would be crazy not to install solar. For those businesses that lack the funds, there are options to partner with investors.

In the past, obscure tax laws have made it unnecessarily complicated to get the benefits that lawmakers intended. But this has changed. In Hawai‘i, we now have a law that makes the state tax credit refundable. Now it’s even possible for people who don’t have enough earnings to pay taxes to benefit from the state’s commitment to clean energy.

Federal tax incentives have been changed to grants. While some details are still being worked out, this change will reduce the cost of most solar energy systems by 30 percent. (Please consult your licensed tax consultant to evaluate your situation.)

We may never see a better time to make the switch to solar hot water and solar electricity. The financial crisis has helped reduce panel prices, and contractors have more time for these projects. As soon as the new tax laws become common knowledge, everyone will want a system, and prices will rise again.

Special thanks to Willy Bennett, who taught me a lot of this. He is available for consultations at 283-0404.

Chris Mentzel, CEO of Clean Energy Maui LLC, consults with county and state governments in Hawai‘i to secure a quick transition to a clean energy future. He is also the chairman of South Maui Sustainability’s renewable energy committee.

His goal is to end oil use on Maui by 2020. He can be reached through www.CleanEnergyMaui.com or at 214-7678

Solar Tour Review – Maui News

PRESENTATION CASTS SUNLIGHT ON ISLAND SOLAR POSSIBILITIES by Chris Hamilton, The Maui News, July 12, 2009

PUKALANI – With Hawaii’s combo of geographical isolation and plentiful supply of sunshine, wind, volcanic heat and waves, Gov. Linda Lingle and lawmakers have said it is a priority to turn the state into a national laboratory for alternative energy creation.

With that in mind, the Hawaii PV Coalition spent Saturday morning on Maui lobbying local politicians and media members to promote policies and laws that would make the use of widespread alternative energy – particularly solar – more reality than vision. The nonprofit trade group hosted its fourth annual House of the Sun tour (The “PV” stands for photovoltaic.) that featured businesses, residences and even a private wastewater treatment plant using solar panels.

“The popular misconception is that some new technology will come along and make my system obsolete, so I should wait,” said Brad Albert, president of the coalition and owner of Rising Sun Solar Electric in Haiku. “But here we have real people. Real buildings. Real technology. Real results. Nobody waited to buy a Prius.”

Installations of solar panels on Maui increased exponentially from 7 in 2002 to 413 today, as the state and federal governments provided tax credits that covered about 50 percent of the price, Albert said.

The average residential system produces 9.75 kilowatt hours a day and costs about $30,000 without the tax credits. A system takes about nine years to pay for itself, according to coalition information, although more people are folding the costs into their 30-year mortgages.

Realtors Association of Maui Chief Staff Executive Terry Tolman said the association installed a solar system atop its Kahului building last year. In June 2008, it paid $2,000 for electricity without solar. Last month, thanks to solar, the association’s electrical bill was $200, Tolman said.

“It’s good for the environment, sets an example for the community and is a very helpful teaching tool for our Realtors,” Tolman said.

However, the solar systems have limitations. For instance, a homeowner would need separate systems to power electricity and to heat water, Albert said. Some buildings aren’t constructed with solar panels in mind, either, making installation difficult to impossible.

And without a slew of heavy-duty batteries, the solar systems cannot store energy, so they don’t work at night. Homes or businesses must remain connected to the utility power grid and draw electricity after dark, which creates monthly electrical bills as well. This setup is called a “net metered solar electric system.”

Unlike some other states, Hawaii regulations do not permit individual solar system owners to sell back unused electricity to the utility companies at prices above retail. Instead, Hawaii solar electrical system owners can return unused power to the utility’s electrical grid and receive a credit toward their electrical bill, Albert said.

Albert said the utilities complain that irregular amounts of electricity returning to the power grid makes it unstable. But Albert called the claim unfounded. He stated that Maui Electric Co. and other utilities see individual solar systems as competitors cutting into their market share.

He also said his coalition opposes the practice of selling electrical energy back to the utilities at inflated rates. The reason, Albert said, is because people who do so tend to buy larger or duplicate systems – much more than they need – and never learn to effectively conserve electricity. “I don’t want to encourage people to get into the energy business,” he said.

It appears as though, despite the state budget deficit, politicians have given themselves reasons in the recent past to support the Hawaii PV Coalition’s platform.

The Hawaii Clean Energy Initiative was instituted with a goal to capture 70 percent of the state’s energy from clean sources by 2030. Currently, 90 percent of Hawaii’s electricity comes by burning oil or coal, he noted.

The state has mandated that 20 percent of electricity come from renewable sources by 2020.

During the tour, Albert called on Reps. Mele Carroll and Gil Keith-Agaran as well as a Maui County Council Member Sol Kaho’ohalahala staffer to push for more financial incentives for customers to buy solar.

He added that solar installation also contributes to the local economy since it provides jobs and attracts federal stimulus dollars. In fact, on Friday the U.S. Department of Energy gave Hawaii $10 million to “expand the deployment of renewable energy technologies” as well as further develop its energy efficiency programs.

Carroll said the government has a tendency to support centralized, grand-scale alternative energy projects to achieve its goals. One such project is First Wind’s Kaheawa wind farm above Maalaea; the company has a much larger proposal for Molokai. Castle & Cooke also developed a photovoltaic farm on Lanai, and an Australian company wants to build a 2.7-megawatt wave energy generator off Maui’s coast, to name just a few ideas for Maui County in the works.

“The source is here,” Carroll said looking up to the sky. “Everyone should have solar panels on their homes. Why wait if we can start with ourselves.”

The coalition of builders and installers also wants to increase or eliminate the cap on the number of individuals allowed to power their buildings with photovoltaic technology, Albert said.

The state Public Utilities Commission allows only 3 percent of electrical production to come from individual solar units on Maui. The industry is already halfway to that percentage, Albert said.

Using his phone and his Twitter account while still on the tour Saturday, Keith-Agaran wrote that he is considering legislation that would increase the cap to 15 percent of electrical production.

Haste may make waste

The Maui News, Editorial, July 2, 2009.

As part of the state’s Photovoltaic Energy Systems Project, a contract for the Kahului Airport went to an Oahu company when there was at least one Maui firm that could have done the job.

The 2008 photovoltaic project had a laudable goal – help cut Hawaii’s appetite for imported oil. The state’s request for proposal called for a contractor to install and maintain multiple units putting out a total of 34 megawatts. That would have entailed a capital investment of something like $50 million. Usually, a contractor installs a photovoltaic generator, sells it to investors to recover the initial outlay and then maintains the unit under contract.

The scope of the project put it out of reach of Maui’s solar companies. The winner ran into the credit crunch and pulled out. The state Department of Transportation scaled down its plans, received permission to issue a no-bid contract and someone picked Hoku Scientific of Honolulu.

Hoku is supplying less than 1 megawatt of capacity at state facilities on Maui, the Big Island and Kauai. Tim Whitcomb of Haleakala Solar said his 32-year-old Maui firm could have handled the smaller contract, if he’d known about it. Apparently there was a need for speed, prompting the no-bid approach.

That need for speed also led to the state locking itself into a 20-year contract that calls for spending 38 cents a kilowatt hour, a reasonable rate in the context of oil prices heading for the stratosphere. In the interim oil prices dropped to half what they were and Maui Electric Co. is charging medium to large customers between 16 and 21 cents a kilowatt hour.

Going photovoltaic is costing the state this year, but might not in the future. At any rate, it’s a reasonable initial investment. With MECO and its parent Hawaiian Electric Co. ready to charge higher rates to cover the cost of linking Maui, Lanai, Molokai and Oahu with an undersea cable, there is an open door for Maui County to become a major supplier of electricity to Oahu, lowering power costs on Lanai, Molokai and maybe Maui while creating a viable alternative energy industry in the county.

Maui’s Fourth Annual Solar Tour Brings Solar to Light

Haiku, HI—On Saturday July 11th, the nonprofit Hawaii PV Coalition will hold Maui’s Fourth Annual “House of the Sun Solar Tour,” inviting Maui residents to tour homes and businesses that save money—and oil—by using solar energy. This event is FREE and open to the public.

During the tour residents will learn how their neighbors are trimming their electric bills, increasing their energy independence and taking steps to address global warming. Tour hours are from 9 a.m. – 12 p.m., and 1 p.m. – 4 p.m., and will feature properties in North, West, South and Central Maui. Participants register to attend the tour at www.hawaiipvcoalition.org or by calling 808-579-8288.

The tour will feature property owners and experts who will discuss the environmental reasons for going solar as well as the financial savings, including huge state and federal tax credits that are now available. Featured properties include The Cottages at Kulamalu in Kula, Realtors Association of Maui in Kahului and Kihei Lutheran Church in Kihei.

“The State of Hawaii is more dependent on imported fossil fuel than any other state in the nation. It’s time we changed that by using the renewable options available to us,” said Brad Albert, founder of the Hawaii PV Coalition. “This tour gives Maui residents a first-hand look at solar technology — learning what it is, how it works, and how it decreases our dependence on oil.”

The Solar Tour is sponsored by Sharp Electronics, the largest solar panel manufacturer in the world. Other co-sponsors include Maui Electric Company Ltd. (MECO) and DR Horton, Schuler Division – Cottages at Kulamalu.

The Hawaii PV Coalition, a nonprofit organization composed of businesses and homeowners, was formed to actively promote solar electric energy across the Hawaiian Islands. For more information on the tour or to join the Coalition, visit www.hawaiipvcoalition.org.

Blue Planet Foundation-Legislative Advocacy

BLUE PLANET FOUNDATION: Legislative advocacy     Blue Planet works to create systemic change in Hawaii’s energy system to build a clean energy future by shaping state laws and policies. Their website offers political participation in Hawai’i policy making to everyone. You can be at the table when critical decisions are being made through Legislative Advocacy, a perfect method to affect lasting change.
Measures to reduce Hawaii’s dependence on imported oil are moving forward at the state legislature after passing a key floor vote yesterday. Bills to prohibit future fossil fuel-burning facilities, create funding for clean energy projects from a small per-barrel surcharge, provide incentives for electric vehicle infrastructure—among other clean energy measures—will now likely go to a legislative conference committee where the details of the bills will be finalized. Those details are critical because the current forms of some bills fail to achieve their intent in fostering Hawaii’s clean energy future. Significantly reducing Hawaii’s dependency on foreign oil will not happen this session unless legislators make significant amendments to measures before The policy choices before the legislature could not be clearer. They are either choosing to rapidly transition to local clean energy sources or they are choosing to continue our dependence on imported oil. BLUE PLANET 12 PRIORITY MEASURES • CLEAN ENERGY INVESTMENT FUND This measure provides for a surcharge on each barrel of oil imported into Hawaii to be used for energy security and other uses.  Blue Planet supports a $5 per barrel surcharge to provide significant funding for energy efficiency and clean energy investment. (HB 1271) • NO NEW FOSSIL PLANTS Prohibits the approval of any new or significantly expanded fossil fuel-fired powerplants in Hawaii. Fossil fuels are simply not part of Hawaii’s clean energy future.   (SB 1671; HB 1464) • ON-BILL FINANCING FOR ENERGY EFFICIENCY Requires the public utilities commission to approve a program to allow for on-bill financing of energy efficiency and clean energy investments. Such a program would overcome the biggest barrier to such investments—the upfront cost—by allowing the costs to be paid off through the energy savings over time. (SB 1173) • CLEAN ENERGY STANDARDS Increases the required percentage of clean energy-produced electricity sold by utilities in the state. Clarifies that the clean energy standards can be met with mostly clean, indigenous, and renewable sources of energy. Blue Planet supports standards of 20% of net electricity sales by 2015, •    30% by 2020, 40% by 2025, and 50% by 2030. (SB 1258; HB 1464) • STATEWIDE ENERGY EFFICIENCY STANDARDS This measure directs the public utilities commission (PUC) to establish energy efficiency portfolio standards equivalent to 30% of the anticipated statewide electricity demand in 2030. (SB 1173; HB 1464) • SOLAR ROOFS ACT AMENDMENTS These measures amend last year’s landmark Solar Roofs Act—which requires that most new homes in Hawaii come equipped with energy- and electricity-saving solar water heaters—by clarifying that the tax credit for existing home retrofits remains and making other housekeeping amendments.  (SB 390; HB 1464) • CLEAN ENERGY COST CAP Removes a potential barrier to investment in new clean energy sources by allowing the public utilities commission to approve the purchase of renewable electricity that may be more expensive than the cost of fossil fuel-produced electricity. With the highly volatile price of petroleum, the “avoided cost” of fossil-produced electricity is difficult to calculate and makes long term energy planning difficult. (SB 461; HB 1270) • ELECTRIC VEHICLE INCENTIVES This measure originally provided various tax credit and rebate incentives for the purchase of electric vehicles or electric vehicle charge spots. Electric vehicles (EV) will play a major role in Hawaii’s energy independence by making use of clean, indigenous sources of electricity and serving as energy storage devices when they are plugged into the grid. Incentives are needed to overcome the “chicken and the egg” problem of customer EV adoption; if residents know that infrastructure is coming, they will feel more comfortable about investing in a vehicle. (SB 1202) • RIGHT TO DRY Ensures that Hawai‘i homeowners have the choice to save money and save energy by using a clothesline to dry their clothes. Disallows homeowner association codes and covenants that prevent the use of a clothesline. (SB 1338; HB 1273) • OPENING UP THE GRID Earlier versions of this measure expanded the successful net energy metering law to allow more clean energy customers to plug in to the grid. Under net metering, customers can run their power meter backwards as they send clean power to the grid (up to the amount of power they purchase over a one year time period). (SB 1675) • INCREASING PRIVATE CLEAN ENERGY INVESTMENT This measure expands the class of investors who can use the renewable energy tax credit, thereby attracting much more investment capital to renewable energy in Hawai‘i. (SB 464) • CLOSING THE FOSSIL FUEL LOOPHOLE This measure closes a loophole in Hawaii’s existing Clean Air Act that allows large polluters to pay less per ton of air emissions they create as compared with smaller polluters. In establishing clean energy policies, one of the first places to fix is laws that provide a perverse incentive to do the wrong thing. (SB 1260)

Berkeley FIRST Financing Initiative for Renewable and Solar Technology

Berkeley FIRST is a solar financing program operating in the City of Berkeley. It provides property owners an opportunity to borrow money from the City’s Sustainable Energy Financing District to install solar photovoltaic electric systems and allow the cost to be repaid over 20 years through an annual special tax on their property tax bill. The tax will only be paid by Berkeley property owners who voluntarily participate in the Berkeley FIRST program.

Berkeley FIRST is intended to solve many of the financial hurdles facing property owners who want to install solar systems. To calculate the cost benefit of the Berkeley FIRST program for your household energy needs please see the UC Berkeley RAEL calculator on the UC Berkeley website. The advantages of the Berkeley FIRST program are:

* There is relatively little up-front cost to the property owner.
* The cost for the solar system is paid for through a special tax on the property, and is spread over 20 years.
* The financing costs are comparable to a traditional equity line or mortgage.
* Since the solar system stays with the property, so does the tax obligation—if the property is transferred or sold, the new owners will pay the remaining tax obligation. Read more.

HERE COMES THE SUN — Must See Video on Solar Energy!

Solar panel maker gets first ever alternative-energy Fed loan guarantee

The Department of Energy (DOE) this week made the first alternative-energy loan guarantee, announcing that Solyndra Inc., a solar energy company based in Fremont, Calif., will receive $535 million. The company – profiled recently by ScientificAmerican.com – plans to use the money to ramp up production of its cylindrical, thin-film solar panels that lie flat on rooftops.

The cash won’t flow until the loan receives some final legal and financial green lights, according to a DOE press release. The DOE is reviewing dozens of other projects, from nuclear to carbon capture and sequestration, and will likely be issuing more loan guarantees in the coming weeks, the New York Times reports.

Photo: Solyndra’s cylindrical solar cells on a rooftop in California. Image Credit: Solyndra Inc.
From Scientific American – 60-second Science

Build a Solar Power Generator for Under $300

From Rain.org

1. Buy yourself a small solar panel. For about $100 you should be able to get one rated at 12 volts or better (look for 16 volts) at an RV or marine supplies store or from Greenbatteries Store.
2. Buy yourself a battery. We recommend rechargeable batteries from these green companies: Greenbatteries Store and Batteries.com. Get any size deep cycle 12 volt lead/acid or gel battery. You need the deep cycle battery for continuous use. The kind in your car is a cranking battery—just for starting an engine. Look for bargains, the cheapest ones should cost about $50-60.
3. Get a battery box to put it in for $10. (This is good for covering up the exposed terminals in case there are children about If you going to install the system in a pump shed, cabin, or boat, skip this.) Buy a 12 volt DC meter. Radio Shack has them for about $25.
4. Buy a DC input. I like the triple inlet model which you can find at a car parts store in the cigarette lighter parts section for about $10. This is enough to power DC appliances, and there are many commercially available, like fans, one-pint water boilers, lights, hair dryers, baby bottle warmers, and vacuum cleaners. Many cassette players, answering machines, and other electrical appliances are DC already and with the right cable will run straight off the box.
5. But if you want to run AC appliances, you will have to invest in an inverter. This will convert the stored DC power in the battery into AC power for most of your household appliances. I bought a 115 volt 140 watt inverter made by Power-to-Go at Pep Boys for $50. Count up the number of watts you’ll be using (e.g., a small color television(=60 watts) with a VCR(=22 watts), you’ll need 82 watts). A variety of cheap inverters from 100 watts to 3000 watts can be had from Lane’s Professional Car Products. Type “inverters” into his search bar.
6. Use a drill to attach the meter and DC input to the top of the box.
7. Use insulated wire to attach the meter to the wingnut terminals on the battery. Connect the negative (-) pole first. Only handle one wire at a time. Connect the DC inlet to the battery in the same way. Connect the solar panel to the battery in the same way.
8. Close the lid (I use a bungee cord to keep it tight). Put the solar panel in the sun. It takes 5-8 hours to charge a dead battery; 1-3 hours to top off a weak one. It will run radios, fans, and small wattage lights all night, or give you about 5 hours of continuous use at 115 volt AC, or about an hour boiling water. This system may be added on to with larger panels, inverters, and batteries.

That’s quite a project that’ll kill an idle Sunday afternoon—and power a good deal of your electrical equipment. And save you a bunch of money. Happy solar building.

For more info on specifics, and how best to operate the system, head over to Rain.org.