The Colorado Public Utilities Commission will take public comment this month on plans by Xcel Energy to meet new emissions requirements.
The Clean Air-Clean Jobs Act, which passed the Legislature in April, requires Xcel to develop plans for several criteria, including a 70–80 percent reduction in nitrogen oxide levels by 2017.
Xcel Energy has proposed to eliminate 903 megawatts of coal generation by closing its Valmont plant by the end of 2017 and Cherokee plant by the end of 2022. Xcel then would run its Cherokee plant and one of its Arapahoe units on natural gas.
Xcel also plans to install emission-control equipment at its Pawnee and Hayden power plants.
The plan would cost about $1.3 billion to implement over the next 12 years. Xcel is proposing a new emission-reduction adjustment clause that would allow it to begin recovering those costs on Jan. 1, 2011.
The public comment hearing will be from 6 to 8 p.m. in the Mesa County Commissioners hearing room, 544 Rood Ave.6:00PM - 8:00PM Public Comment Hearing: 10M-245E PSCO Compliance with HB 10-1365 - Clean Air-Clean Jobs Act C3 (Mesa County Commissioners Public Hearing Room 544 Rood Ave,Grand Junction, CO 81502)
Sunday, August 29, 2010
Solar lease Vs. Solar Purchase
Welcome to our inaugural installment of “Solar Talk.” Astralux Solar is pleased to be partnering with Colorado Energy News in presenting this new venue to discuss the most relevant and pressing issues in the solar industry today, and how they may impact you. We hope you will join in the conversation.
By Osea Nelson, Astralux Solar
This first column addresses a topic that has dominated the solar scene this year — SHOULD I BUY OR LEASE MY SOLAR PV INSTALLATION? The decision can be boiled down to two questions. First, what is my investment time horizon? Second, what is my primary reason for going solar?
THE BUY DECISION
Purchasing a solar system enables you, the owner, to fix your power cost at 50% to 90% less than current utility rates today for the next 30+ years (with the savings increasing as electricity rates rise) and increase the equity value in the home or business.
This investment decision requires an outlay of cash upfront, or a commitment to a financing option of some type. It also fits better with an investment plan that includes you living in the house for at least four to five more years. The buy decision rewards the upfront investment of cash with ever increasing return as the rate of energy price increase accelerates and your energy cost drop to zero. Where as the returns on a lease are fixed, returns with the buy decision can continually increase.
As far as the minimal maintenance which would be required is concerned, purchasing a system brings with it the manufacturer’s warranty on the panel and inverters, just as with a lease approach. For the workmanship of the installation, the warranty will vary with each installer, but typically the company will offer coverage of future labor and maintenance costs. With a purchased system, you would be responsible for contacting the installer directly to schedule any repair work, and because it is part of your equity, the responsibility does fall more on the owner.
Specifics:
→ Initial investment or financing: 30-40% of total system cost
→ Investment return horizon: 7-10 years to breakeven for residential, 4-5 years for commercial
→ Future returns: 7-8% immediate ROI, continually increasing returns based on utility rates, increased home equity value ($1 saved = $20 in equity for the property), increased lease rate per square foot and lower vacancy rates (commercial property owner), PR and marketing benefits (business owner)
→ Maintenance: manufactured warranties, installer protection varies by installer; some additional commitment from the buyer
THE LEASE DECISION
With a solar lease agreement, you pay nothing for the system and enter into a contract with the leasing company to essentially fix your power bill at or slightly below current rates. Often the lease agreement may have a rate increase escalator (such as 3% per year), but it will be significantly lower than the typical utility rate increase, so your savings increase over time. The rate of that increase is not as fast as under the ownership scenario, hence the trade off. You do not own the system, nor can you claim its equity value for the home.
Obviously, the leasing decision frees you from the burden of an out-of-pocket cash hit in exchange for less savings down the road and not having ownership of the system. This decision can make sense if you do not have the financial resources to purchase the system outright or you are not as sure about the amount of time you plan on spending in your current property, as the lease can be transferred to the new owners.
Specifics:
→ Initial investment: 0-2% of total system cost
→ Investment return horizon: immediate with $0 down
→ Future returns: fixed electrical bill, protection from future larger increases, increased lease rate per square foot and lower vacancy rates (commercial property owner), PR and marketing benefits (business owner)
→ Maintenance: manufactured warranties, maintenance covered by third party, and since the leasing company is buying the solar production, the lease company and owner have aligned incentives to keep the system maintained; less responsibility for owner
So how to you decide which is right for you? Ask yourself the questions above once more:
Is having a minimal or zero upfront payment the most important for you? If so, the lease may be the way to go.
Is building equity in your home or business and generating a much larger return over a longer period of time the most important? Or, is putting some cash into the project upfront or financing the system ok with you? Then perhaps the buy decision is best for you. Ultimately, it is an investment decision, by leasing a PV installation, you have a greater ROI in the first couple of years, and owning the system delivers a greater ROI over the long-term.
SUMMING IT UP
In the final analysis, multiple factors go into virtually every investment decision, including this one. When you reduce it to the most basic denominator, however, it comes down to timing. The chart below shows the two investments side by side for a 4kw residential system. No matter the size of a system, from small residential to large commercial, the trends in the chart will be the same.
As you can see each investment has its advantages at certain time periods. In the first 1-2 years, the buy decision is going to be more expensive while you wait to realize the tax credits and start eliminating your bill. Over the middle life of these investments (years 2-10), the benefits of leasing and owning the system are relatively similar. As the system ages (years 10-30+) ownership is going to have zero payment, while the lease still has a monthly payment due.
From Colorado Energy News
By Osea Nelson, Astralux Solar
This first column addresses a topic that has dominated the solar scene this year — SHOULD I BUY OR LEASE MY SOLAR PV INSTALLATION? The decision can be boiled down to two questions. First, what is my investment time horizon? Second, what is my primary reason for going solar?
THE BUY DECISION
Purchasing a solar system enables you, the owner, to fix your power cost at 50% to 90% less than current utility rates today for the next 30+ years (with the savings increasing as electricity rates rise) and increase the equity value in the home or business.
This investment decision requires an outlay of cash upfront, or a commitment to a financing option of some type. It also fits better with an investment plan that includes you living in the house for at least four to five more years. The buy decision rewards the upfront investment of cash with ever increasing return as the rate of energy price increase accelerates and your energy cost drop to zero. Where as the returns on a lease are fixed, returns with the buy decision can continually increase.
As far as the minimal maintenance which would be required is concerned, purchasing a system brings with it the manufacturer’s warranty on the panel and inverters, just as with a lease approach. For the workmanship of the installation, the warranty will vary with each installer, but typically the company will offer coverage of future labor and maintenance costs. With a purchased system, you would be responsible for contacting the installer directly to schedule any repair work, and because it is part of your equity, the responsibility does fall more on the owner.
Specifics:
→ Initial investment or financing: 30-40% of total system cost
→ Investment return horizon: 7-10 years to breakeven for residential, 4-5 years for commercial
→ Future returns: 7-8% immediate ROI, continually increasing returns based on utility rates, increased home equity value ($1 saved = $20 in equity for the property), increased lease rate per square foot and lower vacancy rates (commercial property owner), PR and marketing benefits (business owner)
→ Maintenance: manufactured warranties, installer protection varies by installer; some additional commitment from the buyer
THE LEASE DECISION
With a solar lease agreement, you pay nothing for the system and enter into a contract with the leasing company to essentially fix your power bill at or slightly below current rates. Often the lease agreement may have a rate increase escalator (such as 3% per year), but it will be significantly lower than the typical utility rate increase, so your savings increase over time. The rate of that increase is not as fast as under the ownership scenario, hence the trade off. You do not own the system, nor can you claim its equity value for the home.
Obviously, the leasing decision frees you from the burden of an out-of-pocket cash hit in exchange for less savings down the road and not having ownership of the system. This decision can make sense if you do not have the financial resources to purchase the system outright or you are not as sure about the amount of time you plan on spending in your current property, as the lease can be transferred to the new owners.
Specifics:
→ Initial investment: 0-2% of total system cost
→ Investment return horizon: immediate with $0 down
→ Future returns: fixed electrical bill, protection from future larger increases, increased lease rate per square foot and lower vacancy rates (commercial property owner), PR and marketing benefits (business owner)
→ Maintenance: manufactured warranties, maintenance covered by third party, and since the leasing company is buying the solar production, the lease company and owner have aligned incentives to keep the system maintained; less responsibility for owner
So how to you decide which is right for you? Ask yourself the questions above once more:
Is having a minimal or zero upfront payment the most important for you? If so, the lease may be the way to go.
Is building equity in your home or business and generating a much larger return over a longer period of time the most important? Or, is putting some cash into the project upfront or financing the system ok with you? Then perhaps the buy decision is best for you. Ultimately, it is an investment decision, by leasing a PV installation, you have a greater ROI in the first couple of years, and owning the system delivers a greater ROI over the long-term.
SUMMING IT UP
In the final analysis, multiple factors go into virtually every investment decision, including this one. When you reduce it to the most basic denominator, however, it comes down to timing. The chart below shows the two investments side by side for a 4kw residential system. No matter the size of a system, from small residential to large commercial, the trends in the chart will be the same.
As you can see each investment has its advantages at certain time periods. In the first 1-2 years, the buy decision is going to be more expensive while you wait to realize the tax credits and start eliminating your bill. Over the middle life of these investments (years 2-10), the benefits of leasing and owning the system are relatively similar. As the system ages (years 10-30+) ownership is going to have zero payment, while the lease still has a monthly payment due.
From Colorado Energy News
Friday, August 27, 2010
Solar Payback
Unsurprisingly, one of the biggest questions on the mind of someone looking into solar-powering their home or business is: “What's the payback?”
It turns out this question has many positive answers!
For those who are motivated by environmental stewardship, payback can come in the form of the positive thought that a single solar (photovoltaic) panel, over its 40-plus year lifespan, will offset the need to burn 50,000 pounds of coal!
For someone looking for a more financially secure retirement, payback is the peace of mind that comes in knowing your budget won't be affected by ever increasing utility rates.
Speaking of “peace of mind,” there is a lot to be said of an investment with a guaranteed return (as long as the sun keeps coming up) as opposed to the anxiety of stocks or other similar investments these days.
For someone looking to add value to their home for resale, it's not hard to see that a solar system that will save tens if not hundreds of thousands of dollars in utility expenses over the next 40 years will make their home more inviting than, say, any of the others for sale in the neighborhood still powered by a huge, for-profit, utility company.
For those who are simply sick and tired of rate hikes, payback doesn't get any sweeter than the sight of a backwards spinning utility meter!
All of these benefits are really just an added bonus when we look at how the numbers add up. If you presently use 1,000 kiloWatt-hours of energy a month, your last electric bill was around $130 and your annual payments come to about $1,500. At the historical rate of electric bill inflation (6%) you will spend $80,000 over the next 25 years, just on electricity! There is no such thing as “payback” when it comes to electricity coming from utility companies…every dollar you spend is gone forever.
Now let's look at the situation for someone who installs a solar PV system designed to eliminate that electric bill: The panels have a 25-year warranty and have a practical lifespan of 35-40 years. If you are able to take advantage of the current rebates and tax credits, you will likely pay $10-15K for your PV system…so over the warranted life of the system you will see a 500-800% return on initial investment and that number doesn't include increased property value.
If you are installing a solar system on your business, the deal gets even better because in addition to rebates and tax credits, you can also apply depreciation to the solar equipment.
If you ask me, that all adds up to a pretty amazing “payback”!
Greg Schaefer
Energy consultant
High Noon Solar
569 S. Westgate Dr. #4
Grand Junction, CO 81505
Office: 241-0209
Website: highnoonsolar.com
It turns out this question has many positive answers!
For those who are motivated by environmental stewardship, payback can come in the form of the positive thought that a single solar (photovoltaic) panel, over its 40-plus year lifespan, will offset the need to burn 50,000 pounds of coal!
For someone looking for a more financially secure retirement, payback is the peace of mind that comes in knowing your budget won't be affected by ever increasing utility rates.
Speaking of “peace of mind,” there is a lot to be said of an investment with a guaranteed return (as long as the sun keeps coming up) as opposed to the anxiety of stocks or other similar investments these days.
For someone looking to add value to their home for resale, it's not hard to see that a solar system that will save tens if not hundreds of thousands of dollars in utility expenses over the next 40 years will make their home more inviting than, say, any of the others for sale in the neighborhood still powered by a huge, for-profit, utility company.
For those who are simply sick and tired of rate hikes, payback doesn't get any sweeter than the sight of a backwards spinning utility meter!
All of these benefits are really just an added bonus when we look at how the numbers add up. If you presently use 1,000 kiloWatt-hours of energy a month, your last electric bill was around $130 and your annual payments come to about $1,500. At the historical rate of electric bill inflation (6%) you will spend $80,000 over the next 25 years, just on electricity! There is no such thing as “payback” when it comes to electricity coming from utility companies…every dollar you spend is gone forever.
Now let's look at the situation for someone who installs a solar PV system designed to eliminate that electric bill: The panels have a 25-year warranty and have a practical lifespan of 35-40 years. If you are able to take advantage of the current rebates and tax credits, you will likely pay $10-15K for your PV system…so over the warranted life of the system you will see a 500-800% return on initial investment and that number doesn't include increased property value.
If you are installing a solar system on your business, the deal gets even better because in addition to rebates and tax credits, you can also apply depreciation to the solar equipment.
If you ask me, that all adds up to a pretty amazing “payback”!
Greg Schaefer
Energy consultant
High Noon Solar
569 S. Westgate Dr. #4
Grand Junction, CO 81505
Office: 241-0209
Website: highnoonsolar.com
Friday, August 13, 2010
Palisade orchard goes solar thanks to USDA grant
Fifth-generation farmer Dennis Clark will soon be creating electricity via solar thanks in part to a Rural Development grant Clark secured from the United States Department of Agriculture.
The $44,725 grant will go toward 25 percent of the total project cost, said Scott Wegs of High Noon Solar the company that will install the system for the Clarks.
Clark Family Orchards, 3901 G 1/4 Road in Palisade, grows cherries, apples, peaches, pears and plums. Clark plans to put the solar panels on its packing shed warehouse — “which will help us as electricity costs are soaring,” Clark said.
“We use a huge amount of energy in our warehouse and coolers. We're anxious to have it installed and start generating renewable energy. It'll help offset our electricity costs.”
The solar system will offset roughly 55,000 kilowatt hours yearly, or — at current rates — save about $4,500, Wegs said. With Xcel's new structure the cost savings could be higher, closer to $7,000 a year, he added.
The renewable energy project will also save 116,278 pounds of carbon dioxide from entering the atmosphere annually, Wegs said.
The 2008 Farm Bill, the Rural Energy for America program, allows businesses in communities of less than 50,000, to apply for the USDA grants for energy-efficient upgrades, or renewable energy installation.
Written by Sharon Sullivan
GJ Free Press
The $44,725 grant will go toward 25 percent of the total project cost, said Scott Wegs of High Noon Solar the company that will install the system for the Clarks.
Clark Family Orchards, 3901 G 1/4 Road in Palisade, grows cherries, apples, peaches, pears and plums. Clark plans to put the solar panels on its packing shed warehouse — “which will help us as electricity costs are soaring,” Clark said.
“We use a huge amount of energy in our warehouse and coolers. We're anxious to have it installed and start generating renewable energy. It'll help offset our electricity costs.”
The solar system will offset roughly 55,000 kilowatt hours yearly, or — at current rates — save about $4,500, Wegs said. With Xcel's new structure the cost savings could be higher, closer to $7,000 a year, he added.
The renewable energy project will also save 116,278 pounds of carbon dioxide from entering the atmosphere annually, Wegs said.
The 2008 Farm Bill, the Rural Energy for America program, allows businesses in communities of less than 50,000, to apply for the USDA grants for energy-efficient upgrades, or renewable energy installation.
Written by Sharon Sullivan
GJ Free Press
Tuesday, August 10, 2010
Concentrated solar to get big Colorado spread
Concentrated solar to get big Colorado spread
by Candace Lombardi
Colorado could soon be home to the largest concentrated photovoltaic (CPV) solar farms in the world .
A 30-megawatt solar plant in the works would cover approximately 225 acres of the San Luis Valley in Colorado on land adjacent to transmission facilities owned by the electricity utility, Public Service Company of Colorado (PSCo).
Large-scale concentrated solar panels made by Amonix use Fresnel lenses to maximize the amount of electricity that can be garnered from the sun's rays.
(Credit: Amonix)
PSCo is a subsidiary of the electricity and natural gas giant Xcel Energy, which has signed a contract to have Congentrix, a wholly owned subsidiary of Goldman Sachs Group, to design and build the concentrated solar plant.
Congentrix has garnered all the necessary permits for the project, which is estimated to provide enough electricity to power 6,500 homes annually once completed, but said it has not yet finalized financing.
Assuming Congentrix secures financing shortly, the project will break ground in the first quarter of 2011 and be providing electricity to area residents by 2012, the company said in a statement.
CPV manufacturer Amonix, which will be providing the solar panels for the project, is also connected to the Goldman Sachs Group. It received $25 million in Series A funding from the investment giant, as well as $129 million in Series B funding from other investors including Kleiner Perkins.
CPV solar systems, unlike regular solar panel systems, use lenses or mirrors to maximize the amount of electricity that can be generated from sunlight. Amonix is known for using Fresnel lenses.
In conjunction with the deal's announcement, Xcel Energy has also affirmed that it has a preference for solar over wind when it comes to its renewable energy portfolio.
"Photovoltaic and solar generation have a better match to our peak load than does other intermittent renewables like wind," Tom Imbler, Xcel Energy vice president of commercial operations, said in a statement.
by Candace Lombardi
Colorado could soon be home to the largest concentrated photovoltaic (CPV) solar farms in the world .
A 30-megawatt solar plant in the works would cover approximately 225 acres of the San Luis Valley in Colorado on land adjacent to transmission facilities owned by the electricity utility, Public Service Company of Colorado (PSCo).
Large-scale concentrated solar panels made by Amonix use Fresnel lenses to maximize the amount of electricity that can be garnered from the sun's rays.
(Credit: Amonix)
PSCo is a subsidiary of the electricity and natural gas giant Xcel Energy, which has signed a contract to have Congentrix, a wholly owned subsidiary of Goldman Sachs Group, to design and build the concentrated solar plant.
Congentrix has garnered all the necessary permits for the project, which is estimated to provide enough electricity to power 6,500 homes annually once completed, but said it has not yet finalized financing.
Assuming Congentrix secures financing shortly, the project will break ground in the first quarter of 2011 and be providing electricity to area residents by 2012, the company said in a statement.
CPV manufacturer Amonix, which will be providing the solar panels for the project, is also connected to the Goldman Sachs Group. It received $25 million in Series A funding from the investment giant, as well as $129 million in Series B funding from other investors including Kleiner Perkins.
CPV solar systems, unlike regular solar panel systems, use lenses or mirrors to maximize the amount of electricity that can be generated from sunlight. Amonix is known for using Fresnel lenses.
In conjunction with the deal's announcement, Xcel Energy has also affirmed that it has a preference for solar over wind when it comes to its renewable energy portfolio.
"Photovoltaic and solar generation have a better match to our peak load than does other intermittent renewables like wind," Tom Imbler, Xcel Energy vice president of commercial operations, said in a statement.
Saturday, August 7, 2010
Colo. Guard's solar array generating electricity
GRAND JUNCTION, Colo.—A solar power array is now generating electricity at the Colorado Army National Guard's readiness center in Grand Junction.
The 172-kilowatt system was installed by Bella Energy. The guard says it provides enough power to offset 450,000 pounds of carbon emissions.
Bella is based in Louisville, Colo.
The Associated Press
The 172-kilowatt system was installed by Bella Energy. The guard says it provides enough power to offset 450,000 pounds of carbon emissions.
Bella is based in Louisville, Colo.
The Associated Press
Sunday, August 1, 2010
Invest In Mesa County
INVEST in Mesa County is a broad-based community initiative being placed on the November ballot to stimulate the economy of Mesa County. This initiative would allow you to voluntarily install a myriad of energy improvements on your residence, business or nonprofit facility.
Among the potential options are improving insulation, a variety of space heating and cooling improvements, high efficiency boilers, ground-source heat pumps, high efficiency furnaces, new lighting, water heating, new windows, reflective roofing, crawl-space mitigation, and wood/pellet stoves. In addition, solar electric, solar thermal and small wind installations would be funded.
The key to this initiative is it is a completely voluntary funding mechanism for retrofitting existing homes and businesses with energy improvements. The payments for the financing would be made through a special improvement district run by Mesa County.
This economic stimulus mechanism has been approved in more than 26 states as a way to get Americans working again. If you work in one of the above industries or believe this is an important way to reinvigorate the Mesa County economy, you should call your local Mesa County Commissioner and tell them that they need to support this issue and get it on the ballot.
For more information or to find out how you can get involved, contact 314-2679. You can also find information on the web at http://www.pacenow.org/
Among the potential options are improving insulation, a variety of space heating and cooling improvements, high efficiency boilers, ground-source heat pumps, high efficiency furnaces, new lighting, water heating, new windows, reflective roofing, crawl-space mitigation, and wood/pellet stoves. In addition, solar electric, solar thermal and small wind installations would be funded.
The key to this initiative is it is a completely voluntary funding mechanism for retrofitting existing homes and businesses with energy improvements. The payments for the financing would be made through a special improvement district run by Mesa County.
This economic stimulus mechanism has been approved in more than 26 states as a way to get Americans working again. If you work in one of the above industries or believe this is an important way to reinvigorate the Mesa County economy, you should call your local Mesa County Commissioner and tell them that they need to support this issue and get it on the ballot.
For more information or to find out how you can get involved, contact 314-2679. You can also find information on the web at http://www.pacenow.org/
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