Effort advances to recast Colorado's "New Energy Economy" office

Former Gov. Bill Ritter often touted the "New Energy Economy," but a House committee Wednesday passed a bill recasting the mission of a state agency Ritter used to promote renewable energy — even airbrushing his catch phrase from the law.

House Bill 1315, sponsored by Rep. John Becker, R-Fort Morgan, but backed by Gov. John Hickenlooper, a Democrat, would change the mission — and the name — of the Governor's Energy Office. The agency, first created as the Office of Energy Management and Conservation in 1977, was reborn as the Governor's Energy Office under Ritter, a Democrat, in 2007 as the administration's spearpoint for promoting the "New Energy Economy."

Under Ritter, the office focused heavily on renewable energy sources, primarily wind and solar, but also concentrated on weatherization. Ritter touted successes like expansions of wind turbine factories and solar panel manufacturing, though Republicans often complained the agency ignored the state's substantial oil and gas industry.

Becker said that under the bill, the agency would be renamed the Colorado Energy Office and would be "a balanced energy office for the state of Colorado."

"Colorado is a true hub for all sources of energy," Becker said.

The bill specifically changes the agency's mission from promoting renewable energy sources and energy conservation to encouraging all sources of energy development. The bill specifically scrubs the term "New Energy Economy" from the law governing the agency, replacing it with language that says the state will promote energy solutions "that include traditional, clean and renewable energy sources in order to encourage a balanced energy portfolio."

A similar reorganization of the energy office backed by Hickenlooper failed last year.

Ritter, who now heads the recently created Center for the New Energy Economy at Colorado State University, declined comment on the bill.

The legislation also creates two separate pots of money in the office — one from severance tax on oil and gas production and for use to promote traditional energy sources, and the other from the state's general fund and for promotion of renewable sources.

Environmental groups had concerns about the fact that funding for renewable energy promotion would now be subject to an annual appropriation by the legislature rather than having a stable funding source. But supporters said severance tax money shouldn't subsidize renewable energy.

Rep. Matt Jones, D-Louisville, didn't like the bill.

"I'm really concerned that we're backing off of the thing that's made this office successful," Jones said, arguing the state would be "diminishing our brand" as a leader in the renewable energy industry.

Still, the House Agriculture, Livestock and Natural Resources Committee approved the bill on a 11-2 vote, with Jones and Rep. Su Ryden, D-Aurora, voting against. The bill, co-sponsored by Sen. Pat Steadman, D-Denver, now goes to the House Appropriations Committee before it can proceed to the full House.

Read more: Effort advances to recast Colorado's "New Energy Economy" office - The Denver Post http://www.denverpost.com/breakingnews/ci_20278479/effort-advances-recast-colorados-new-energy-economy-office#ixzz1qTpiL8Sy
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Banner Year for US Solar in 2011, Grows 109% in 2011

2011 was a banner year for solar installations in the US - the first year over a gigawatt (GW) was added in one year.

A record 1,855 megawatts (MW) of solar PV were added, double the previous record set in 2010, and representing a 109% growth rate.

As of year-end 2011, the US powers almost a million homes with solar, with 4,000 MW of solar PV and 500 MW of concentrating solar. It's the fourth largest solar market in the world after Germany, Italy, and China.

There are over 100,000 solar jobs across all 50 states in over 5000 companies.

"In 2011, the market demonstrated why the U.S. is becoming a center of attention for global solar," says Shayle Kann, Managing Director of GTM Research's solar practice. "It was the first year with meaningful volumes of large-scale PV installations; there were 28 individual PV projects over 10 megawatts in 2011, up from only two in 2009. Furthermore, the market continued to diversify nationally; eight states installed more than 50 megawatts of solar each last year, compared to just five in 2010. These are all indicators of a vibrant market."

10 concentrating solar PV projects came online and 1,000 MW are under construction, enough to power 200,000 homes. Some of that comes online this year, but the surge will be in 2013.

A 5 MW concentrating solar PV plant, the largest in the US, came online in New Mexico, the Hatch Solar Energy Center.

They expect another very strong year in 2012, with installations exceeding 2,800 MW, and forecast 30% annual growth through 2016.

"The solar industry is the fastest growing industry in the US for the second year in a row. Policies are opening new markets and removing barriers for solar," says Rhone Resch, president and CEO of SEIA. "The industry is poised for years of multi-gigawatt growth and the creation of tens of thousands of jobs, but a number of challenges could slow this growth. SEIA is coordinating the industry's federal and state policy initiatives to present a unified, cohesive voice for the solar industry."

GTM Research and the Solar Energy Industries Association (SEIA), who produced this latest U.S. Solar Market Insight report, estimate the U.S. solar market's total value surpassed $8.4 billion in 2011.

The commercial sector installed 800 MW, led by California and New Jersey. Utilities installed 758 MW, nearly triple that of 2010, mostly in the Southwest.

Homeowners installed 297 MW, led by California (114 MW), and followed by New Jersey, Arizona, Hawaii, Pennsylvania and Colorado.

College campuses now have 137 MW installed.

Over 61,000 solar PV systems were installed in 2011, bringing the total to about 214,000.

California hit a major milestone of 1 GW of solar PV on rooftops across the state - a threshold reached by just five countries.

What spurred this growth? It costs 20% less for an installed solar system because of lower component costs, greater installation efficiency, expanded financing options, and a shift toward larger systems nationwide.

Developers also rushed to commission projects before the end of the year, when the federal 1603 Treasury Program (cash instead of tax credits) expired.

Community Solar Gardens — Bright Spot in a Tough Year for Solar

It started with Xcel Energy’s announcement last spring that it was substantially reducing the Solar*Rewards rebate program, which directly impacted solar installers in Colorado, accelerating a shake-out that was already underway. Then, later in the year, the Solyndra debacle took center stage in the media, and only last week, Abound Solar announced a major workforce reduction, as it ‘abandons work on its first-generation module and switches to a next-generation module that will be much more efficient,’ according to a company release.

One bright spot,however, has been the interest and growth of solar gardens.

In the latest indicator, Poudre Valley Rural Electric Association (PVREA) announced is partnering with Carbondale-based Clean Energy Collective (CEC) to launch a community solar program with a development at PVREA’s headquarters site near Windsor. The facility will provide an opportunity for members of the electric cooperative to purchase solar panels to offset their electric use.

The project will encompass more than 400 solar panels generating 115,000 watts of electricity. CEC will fund construction of the project, slated for late spring, 2012. Once completed, PVREA consumers will be able to purchase panels for $618 per panel and will receive monthly bill credits for the power produced by their panels. Under the power purchase agreement, the project may beexpanded up to 2 megawatts as new members join.

“We are committed to economically incorporating renewable energy initiatives and seeking ways for our consumers to benefit from a more diverse energy portfolio,” said Poudre Valley REA CEO Brad Gaskill. “Clean Energy Collective provided a turn-key solution that we can easily integrate and will be attractive for our consumers.”

The solar garden concept allows all consumers to participate in renewable energy, including renters, those with poorly sighted properties and individuals of all income levels, without having to build a costly system of their own, and reap the benefits directly on their monthly electric bills through the utility.

“Poudre Valley is an ideal partner for community solar and we look forward to offering all of their consumers the opportunity to benefit from solar ownership,” said Paul Spencer, Clean Energy Collective founder and president.

Poudre Valley Rural Electric Association is a member-owned, not-for-profit electric distribution cooperative serving more than 35,000 consumers in Boulder, Larimer and Weld Counties in Northern Colorado. PVREA has 98 consumers with small renewable energy projects and over 650 PVREA consumers already participate in the utility’s Green Power program. In 2011 they purchased more than 24 million kilowatts of electricity from renewable sources.

Lease or buy solar? Either choice will save you money in the long run

Here is something that your utility neglected to tell you last time they sent you your big bill: It now costs less to make your own solar power than it does to pay the utility for that power.

So why buy the solar when you can lease it for less? This is a question that many people in Mesa County are now asking themselves. At first glance, the answer appears simple. Yet, as with most situations, there is a lot more to it than meets the eye.

Let me give you an introduction to the relative advantages and disadvantages of buying solar versus leasing solar for your home or business. The more you know the two options, the better decision you can make.

Whether you decide to buy the solar or lease it, either way you save money right now. The worst decision you can make is to do nothing. Why? Your utility bills increase 5-15% on a compounded basis every year! This means that your current $1,200 annual utility bill will be $1,800 inside 5 years — a 50% increase from what you pay now!

Purchase or lease solar now and you have guaranteed yourself a long-term lower rate for your electricity. The solar lease now makes solar available to a much larger segment of society. Over 50% of all of the residential solar electric systems installed in Mesa County are now leases. Now, let's look at leasing solar versus buying solar.

The main advantage of leasing solar is that you are saved the larger upfront costs of buying solar. A solar lease can be done for as little as $0 down. Although, the more that you can invest in the solar lease upfront, the greater will be your immediate savings from the solar. When you lease solar, the solar maintenance is the responsibility of the leasing company. And your leasing company may provide you with a solar performance guarantee. You get the financial, personal, and environmental benefits of solar without all the responsibility of a purchase. Solar leases typically last 20 years and the payer of the solar lease must have a minimum credit score of 700.

When you purchase solar, your all-around returns are much greater. When you purchase the solar, you collect the rebates, tax credits, and other environmental benefits rather than the leasing company. When you own the solar, the utility usually pays you much more for the power you produce. When you purchase the solar, you make money on the added value that solar has given your home or business. Homes with solar do have a higher resale value. And as the owner of the solar electric system, there is relatively little maintenance.

The principal trade-off to consider in buying or leasing the solar is the amount of the upfront expense versus the long-term savings. Purchasing solar offers the highest long-term return, but involves a large up-front cash expense. The solar lease offers reduced monthly lease payments, which gives you immediate and modest savings over your previous electricity bill. However, the lease results in less money saved over 20 years as compared to the solar purchase.

Whichever way you decide to do solar, do it now and start saving today. Remember what your utility forgot to tell you — solar power is now less in cost than the power that you purchase from your utility.