Forecast for local solar industry: sunny

Forecast for local solar industry: sunny Article date: Jul 31 2012 Given increases in both the number of solar energy systems and businesses installing them in Mesa County, the outlook for the industry appears as bright as the sun from which a growing amount of electricity is produced. Financial incentives and technological advances — not to mention all that sunshine — are expected to drive additional growth, said Lou Villaire, founder of the Grand Valley Solar Center and sales manager at Atlasta Solar Center in Grand Junction. Lou Villaire, sales manager at Atlasta Solar Center in Grand Junction, expects third-party financing and technological advances to continue to bolster growth in the solar energy industyr in Mesa County. (Business Times photo by Phil Castle) The trends bode well not only for solar energy companies, but also the overall economy, Villaire said. “It’s making a modest, but significant, impact on the local economy, and we’d like to see that continue.” Villaire detailed some of the results of a study conducted by the Grand Valley Solar Center, a market research entity, in conjunction with the Colorado Solar Energy Industries Association and Colorado Mesa University. The complete results of the study should be released within a month. Since 2006, more than 1,200 residential and commercial photovoltaic systems have been installed in Mesa County. The pace of installations has quickened to a total of between five and 10 residential and commercial systems a week, Villaire said. Ten to 15 companies are directly engaged in the solar energy industry in the county. Those companies collectively employ 40 to 50 people and indirectly account for another 25 to 30 jobs, he said. The numbers point to what’s estimated as an industry worth between $10 million and $15 million annually, Villaire said. Business similarly has increased at Atlasta Solar over the past five years, as has staffing, Villaire said. Mesa County constitutes something of a hot spot for solar energy in one of the top states for growth in the industry, Villaire said. Customers enjoy a sense of self-sufficiency from their solar systems as well as satisfaction from doing their part to generate electricity from a clean and renewable source, he said. But Villaire also attributes growth in the local solar industry in large part to financial incentives and technological advances that have made solar systems more widely available at a lower cost. A state law requiring utilities to generate an increasing proportion of power from renewable energy sources led to rebates for the installation of solar systems. Federal tax credits also are available, he said. At the same time, technological advances have made it possible to connect photovoltaic systems into the power grid and eliminate the need for battery storage. Mass production and imported solar energy panels have brought down prices, he added. One of the most significant developments of all has been the emergence of third-party arrangements in which companies and organizations pay for the purchase and installation of solar systems, then lease the electricity generated by those systems to home owners, businesses and other end users, Villaire said. The companies and organizations take advantage of the rebates and tax credits, while end users purchase solar power at what are usually lower rates and without any upfront costs. That makes solar energy available to to just about anyone with a home or building and good credit, he added. Although utility rebates have decreased and tax credits are scheduled to expire in 2016, Villaire expects the solar energy industry to continue to grow on the basis of cost. Even as the price of solar panels decreases, the price of electricity purchased from utilities increases, he said. Given the combination of recent growth and what’s expected to be continued growth, Villaire said the outlook for the solar industry appears, in a word, well … “sunny.”

Local solar energy market growing

GRAND JUNCTION, Colo (KKCO) The industry is not only booming on the Western Slope, but worldwide. A new study by Colorado Mesa University and the Colorado Solar Energy Industries Association show that solar energy is now the single fastest growing energy source in the world. Since 2006, the U.S. solar market has grown by 110% per year. Experts say more affordable options are leading to increased demand. Solar used to be too expensive for many people, but times have changed. "The availability of the solar lease," says Dr. Lou Villaire with the Grand Valley Solar Center. That's one of the reasons for the huge increase in solar sales. "Now, so many more people can get into solar for their home without outlaying any capital, and immediately begin to save money on their bills," explains Villaire, also a salesman at Atlasta Solar Center in Grand Juncton. Since 2006, more than 1,200 residential and commercial solar electric systems have been installed in the Grand Valley. "We've had no problems with the panels at all," says Ladonna Ishida. Ishida bought and installed solar panels on her Orchard Mesa home in 2009 for $26,000, but saved $17,000 in rebates and tax credits. "You see your meter going backwards, and you have a 9 or 10 dollar electric bill, and it's like I can live with that," adds Ishida, who plans to recoup the costs in no time. "We're really energy conscious so we don't have lights on all the time, and don't run computers needlessly, so I think we'll recoup it before 12 years." Mesa county now represents a 15 million dollar annual solar industry. "We started as a company in 2005 with two people, myself as one of them, and my husband; and we've grown to 20 employees," says Heidi Ihrke, owner of High Noon Solar in Grand Junction. Now, over a dozen residential and commercial solar systems are being installed in the Grand Valley every week. "All of this has been very much a collective effort in making a real positive impact on the local economy," says Villaire. There are currently over a dozen solar companies in the Grand Valley, employing nearly 100 people. Colorado is also among the top five states in solar energy growth. Installing solar panels also makes you eligible for rebates, and state and federal tax credits. However, officials say you'd better hurry, because as demand increases, rebates and tax incentives are decreasing.

Solar power spreads in valley

By Matthew Berger Thursday, July 26, 2012 Solar power installation is accelerating in Mesa County, according to an upcoming report from industry groups. Residential and commercial systems are being installed at a rate of 10 to 15 each week, they said, more than double the weekly rate last year. The pace means installations in 2012 are expected to roughly double the total from last year. That has brought the cumulative total of residential and commercial solar systems installed in Mesa County since 2006 to more than 1,200 and given rise to a local solar industry that supports around 80 jobs and does around $15 million in annual sales. Those installations are now also offsetting eight to 10 tons of carbon dioxide emissions per year, according to Lou Villaire of Grand Valley Solar Center and Atlasta Solar. Villaire spoke to the annual Western Slope stakeholders meeting of the Colorado Solar Energy Industries Association Wednesday afternoon at Colorado Mesa University. The report on the growth of solar in Mesa County is being produced by Grand Valley Solar Center, COSEIA and CMU’s Natural Resource Center and is expected to be released this fall. The report is an update of one released several years ago, Villaire said, and shows that since then growth of the solar industry on the Western Slope and Mesa County in particular has accelerated. One big driver of that trend is a leasing program through which residential customers can pay a monthly rate to lease the solar equipment rather than buy the expensive equipment all at once at the start, Villaire said. He called the program a game-changer, comparing it to the way in which cellphones were able to replace many landline phones. “You can now get the same amount of electricity (from solar) and pay less for it,” he said, noting that a lease agreement can typically involve paying nothing down and $60 to $75 a month to a third-party solar leasing company over a 20-year contract. Neil Lurie, executive director of COSEIA, said installing solar is already cost-effective and will only become more so if those costs go down a little bit more. “Today, it’s economically attractive. Tomorrow, it could be a no-brainer,” he said Wednesday. Speaking of the state as a whole, Lurie said Colorado is now the top state in the country in solar jobs per capita and that over the past four years the number of solar businesses in Colorado has jumped from 40 to 400. Solar in Colorado may get another boost in the coming years after the U.S. Department of the Interior announced Tuesday it had identified 17 tracts of public land across the southwestern U.S. on which utility-scale solar projects could be feasible. Four of those sites are in Colorado, all around the San Luis Valley area. The sites were chosen because solar development there would have fewer impacts on wildlife or other resources than elsewhere and the identification of these sites allows development of large solar projects there to be streamlined, the agency said.

New Report Shows Fast Growing Solar Market in Grand Junction and Colorado Solar Energy Industries Association (COSEIA) visits Western Slope for Annual Solar Industry Stakeholder Meeting.

FOR IMMEDIATE RELEASE: New Report Shows Fast Growing Solar Market in Grand Junction and Colorado Solar Energy Industries Association (COSEIA) visits Western Slope for Annual Solar Industry Stakeholder Meeting. Grand Junction, Mesa County, Wednesday 25 July 2012, 2-5 PM, Colorado Mesa University, University Center, West Ballroom, 2nd Floor. Solar Energy is now the single fastest growing energy source in the world. Since 2006, the U.S. solar market is growing by 110% percent per year. Colorado is among the top five (5) US states in solar growth. Colorado now has a growing solar energy market spurring nearly $1 billion in clean tech investment, deploying 200 megawatts of solar, and creating thousands of quality jobs at more than 400 Colorado solar companies. And according to a new report from the Grand Valley Solar Center and the Colorado Mesa University (CMU) Natural Resource Center, The Western Slope of Colorado, specifically Mesa County, is experiencing tremendous solar growth that has a large local economic impact. Since 2006, there have been over 1200 residential and commercial solar electric systems installed in the Grand Valley. In Mesa County, this now represents a $10-15 million annual industry. In the Grand Valley, there are 10-15 companies directly engaged in the solar industry. Initial estimates indicate that the industry in the Grand Valley now directly employs 40-50 people, and indirectly employs another 25-30. The pace of solar installations in Mesa County has increased so much in 2012, that 5-10 residential and commercial solar electric systems are now being installed in Mesa County every week! The full Report “Residential and Commercial Customer Sited Solar In Grand Junction, CO” will be released in the Fall of 2012 by the Grand Valley Solar Center and the CMU Natural Resource Center. CMU Business Department student interns contributed to the New GJ Solar Market Report in 2012. The New GJ Solar Market Report Press Conference, offering highlights of the upcoming report, will take place from 2-2:30PM, and then the COSEIA Western Slope Annual Stakeholder Meeting will take place from 3-5PM. Contacts: Dr. Lou Villaire, Grand Valley Solar Center, lvillaire@yahoo.com, 970.314.4413, http://grandvalleysolarcenter.blogspot.com/ Rebecca Cantwell, Colorado Solar Energy Industries Association, 1536 Wynkoop Suite 300, Denver CO 80202, 720-209-6000, rcantwell@coseia.org, www.coseia.org

GE Suspends Solar Factory Plans

General Electric Co. (GE) has stopped construction of a solar-panel factory in Colorado in the latest sign of the U.S. solar manufacturing industry's decline. GE initially planned to make thin-film solar panels at a factory in Aurora, Colo., using a cadmium telluride technology developed by PrimeStar, which GE acquired in 2011. GE planned to use the panels in solar farms that it would develop, or sell them to other developers. GE now plans to continue its solar power-plant development business, but the company has put the solar-panel factory on hold, said Lindsay Theile, a GE spokeswoman. Ms. Theile cited steep price declines and a global oversupply of panels as factors in GE's change of plan. Plunging solar-panel prices amid an influx of cheap Chinese panels and a global oversupply of solar manufacturing capacity have driven smaller solar firms out of business, while larger companies have struggled against falling profits and stock prices. The difficulties prompted SolarWorld AG's (SWV.XE) U.S. unit and other U.S. firms to file a trade case against Chinese rivals. The competition and lower prices have benefited developers and investors in solar projects, which are eligible for federal tax credits and other incentives. The U.S. Department of Commerce has slapped preliminary antidumping duties of 31% to 250% on panels made with Chinese solar cells. While that case has been pending, U.S. solar-panel makers have continued to struggle. Solar-panel maker Abound Solar, of Colorado, filed for Chapter 7 bankruptcy protection last week after taking more than $68 million in federal loans to expand manufacturing. California solar-panel maker Solyndra LLC filed for bankruptcy last September after accepting more than $500 million in federal loans, triggering criticism of the Obama administration's clean-energy policies. Other companies have decided to curtail production or stop making solar panels. U.S. solar-power giant First Solar Inc. (FSLR) said earlier this year it would shut its German factory by the end of the year, cut 2,000 jobs and halt work on a new factory it had planned to open in Arizona. First Solar, which also builds solar farms, has seen its market capitalization fall by more than 85% to $1.26 billion. In June, Germany-based glass maker Schott Glas AG said it would stop making solar panels at its Albuquerque factory as part of a larger effort to end production of solar panels made with silicon. Developing and owning solar-power projects have been more lucrative than making the panels, thanks to federal subsidies and state renewable-energy requirements. The MidAmerican Energy Holdings unit of Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) started a renewable-energy company earlier this year after it bought a large California solar farm from First Solar. Other power companies, such as NextEra Energy Inc. (NEE) and NRG Energy Inc. (NRG) also own solar farms. In January, GE said it would provide the solar equipment for a 23-megawatt solar farm in Illinois being built by Invenergy. The solar panels are being supplied by Showa Shell Sekiyu's (5002.TO) Solar Frontier unit. GE also is supplying the inverters and racking equipment. Although GE is putting its Colorado solar-panel factory on hold for at least 18 months, company researchers will continue working to improve the company's thin-film technology, Ms. Theile said

Bankruptcy of Colorado's Abound Solar could cost taxpayers $60 million

The bankruptcy of Abound Solar, the solar panel maker with facilities in Longmont, Loveland and Fort Collins, will cost taxpayers $40 million to $60 million, according to the U.S. Department of Energy. The company will close its doors next week and file for liquidation, according to a company statement. The closing will affect about 125 workers. In July 2010, Abound received a $400 million loan guarantee from the DOE to build an Indiana factory and expand its Longmont plant. The company has used about $70 million of the loan guarantee, and after bankruptcy liquidation the loss to taxpayers is estimated to be $40 million to $60 million, Damien Lavera, a DOE spokesman, said in a statement. Abound has been struggling with the falling price of solar panels. The company's technology made a solar cell out of a piece of glass by applying a thin chemical film. It was supposed to be cheaper than traditional silicon panels, but since 2009 the price of those panels has dropped from $2.79 a watt to less than $1, according to industry consultant Solarbuzz. In February, Abound cut its workforce by about 70 percent, firing about 180 full-time workers and 100 part-time employees. It also put on hold plans to build the Indiana factory. California-based Solyndra, another thin-film solar panel maker, went bankrupt in 2011, leaving taxpayers responsible for a $535 million loan guarantee. After the Solyndra failure the DOE tightened its loan guarantee process and Abound appears to have gotten caught in the middle. "The firm awaited $10 million from the DOE and $10 million from its investors but had a bit of a chicken-and-egg problem," Eric Wesoff, a GreentechMedia analyst, wrote in his blog. "The DOE was waiting for the investors and the investors were waiting for the DOE," Wesoff wrote.

Solar energy investing increasing locally

GRAND JUNCTION, Colo. (KKCO) Industry officials say there are a lot of misconceptions about solar panels. Some may think they're too expensive, others think they're ugly. We found people that say they are neither, and could be the investment of the future. "It's great for us," says Ron Wilson, who leases panels from High Noon Solar on his Fruita home. "There was no down payment of any money required from us," he says. Wilson's electricity bill has gone down from $120 dollars to $41 dollars a month. "While they were doing the installation on it, one of our neighbors noticed it and came over and they got the pamphlet and contacted them, and they ended up putting them on their home," explains Wilson. The idea caught on. "We also have a close friend from church; they've installed them on their home." The idea caught on like wildfire. "Our other neighbor just to the left of us; they're considering putting them on their home and business," says Wilson. And the Wilsons were pleasantly surprised by the look. "It turned out great because we have quite a few people that don't even know that we have solar panels until we mention it to them," says Wilson. "Leasing has really become prevalent for people, because either they have a hesitation to put a big upfront investment in buying a system, or they just don't have the money available," says Heidi Ihrke, owner of High Noon Solar. Ihrke says if you buy solar panels, you'll recoup your money in ten years. "If they want to have an out-lie of cash at the beginning, and know that they have investment over the long term, and cash flow positive rather quickly," says Ihrke. Ihrke says after those ten years, you won't be paying an electric bill. "As solar gets more and more popular, manufacturing costs come down dramatically, and when manufacturing costs come down dramatically, for anything, it means that the product ends up being less expensive," she explains. Making it a win-win for consumers like the Wilson's. "Anybody that I come across, I truly want to let them know about the system, and take advantage of it," says Wilson. The Excel Energy compliance rebate plan for 2012-2013 opened Wednesday. The program was approved a week and a half ago. The rebate offers incentives for folks to get solar systems on their homes and businesses. They get rebates every month based on the production of the solar system, in addition to the electricity savings they're already getting from not having to buy that power from Excel. Limited megawatts are available under the rebate plan.

Nonprofit SEI reorganizes, cuts staff

CARBONDALE, Colorado — Financial and other pressures have forced Solar Energy International (SEI), a nonprofit, alternative-energy training center based here and in Paonia, into what is being called an organizational restructuring. “A long-term decline in income from our renewable energy training classes and grant revenue forced the board to act,” said SEI board chairman Ed Marston, of Paonia, in a statement issued late Wednesday afternoon. The decision to lay off several staff members, and to accept the resignation of former executive director Trési Houpt, came after a meeting of SEI's board of directors on June 1. At that meeting, the board voted 3-2 to move forward with the changes, which were recommended by the organization's management, according to SEI founder and current board member Johnny Weiss. “There's growing pains, and there's shrinking pains,” said Weiss. “These are shrinking pains.” He said he voted against the changes, but declined to elaborate about the board's discussion or how others voted. Marston noted that the organization underwent “a kind of a boom in 2009, when we couldn't teach enough classes. We ramped up our activities to deal with it, and when the boom ended we didn't cut expenses to match.” With the reorganization, he said, the board believes the organization is on firmer financial ground and will grow again. Officials with the organization were quick to say that the changes do not mean that SEI will immediately abandon Carbondale, the town where the organization was founded more than two decades ago. “We have no intention of deserting Carbondale,” Marston emphasized. The most immediate change so has been to terminate five positions, four of them in Carbondale, said SEI Interim Executive Director Kathy Swartz. The statement about SEI's changes also mentioned the possibility of sub-letting some of its office space, although Marston said a decision about the fate of the Third Street Center offices has been put off until the end of August. The organization has been renting a single space in the Third Street Center since before the school building was remodeled into a center for nonprofit organizations. But SEI recently expanded its quarters, spending approximately $150,000 to remodel two former classrooms into one space, and last month held its 20th anniversary party there. Marston said the board pays “about $3,000 a month” in rent on its 2,240 square feet of office space, which he termed “quite a lot, even for what had been a $2 million a year budget.” “It didn't help,” Swartz said of the move's effect on the organization's finances. As things stand now, she said, SEI has a full-time staff of 15 — six in Carbondale, nine in Paonia — and an annual budget that still is “close to $2 million.” She explained that roughly 90 percent of SEI's income comes from classes on photovoltaic installations held at the six-acre Paonia campus. According to Weiss, that campus was created about eight years ago in response to the rising costs of doing business in the Roaring Fork Valley. The Carbondale offices, Weiss explained, have focused on administrative functions and on the outreach programs. Those outreach programs offer low-cost, alternative-energy education to students locally and elsewhere in the U.S., including Native American communities, and around the world. The outreach programs, Weiss said, “don't really make us any money. They cost us money.” Those costs, he said, have been largely covered by grants and other sources of income, many of which have dried up in the national recession. Swartz and others said the goal is to find other grant income to replace what has been lost, with the hope of retaining the outreach programs.

Colorado regulators tighten rooftop solar-energy incentives

The Colorado Public Utilities Commission on Thursday approved a new solar rewards program for Xcel Energy that does away with upfront cash incentives for solar panels that amount to thousands of dollars to homeowners. The commissioners also capped the number of solar installations eligible for subsidies in part to address a $32 million deficit in the fund that finances the program. The decision was one of "balancing competing views" from consumer and renewable-energy advocates, said PUC chairman Josh Epel. The plan will provide total financial subsidies for up to 36 megawatts a year of commercial, residential and "solar gardens" for 2012 and 2013. Under the present plan — in which 38 megawatts were added in 2011 — the upfront subsidy is $1 a watt. It also pays 9 cents for each kilowatt that a solar installation generates. The average solar installation for a Colorado home is about 5.5 kilowatts, and the upfront incentive is on average worth about $5,500. The plan approved Thursday provides a subsidy on a sliding scale for kilowatts generated, without the upfront payment. The first residential units approved this year will get a 15-cent per kilowatt payment. By the end of 2013, the payment for new systems will be down to 11 cents. "We don't know if residential customers are going to want to pay for systems without upfront subsidies," said Ron Davis, a commission staff adviser. The plan also dedicates six of the megawatts to "solar garden" community-based installations that several homes share. That leaves 30 megawatts to homes and business, industry executives say. Xcel had offered the commission three options: • A minimum plan: 16 megawatts. • A medium plan: 36 megawatts. • A high plan: 60 megawatts. The utility's preferred plan was for 36 megawatts, and a commission administrative law judge agreed. Since 2006, Xcel has provided $256 million in rebates and credits for about 10,500 commercial and residential solar arrays. The money has come from a 2 percent renewable-energy charge on customer bills — but that fund is now $32 million in the red. The state Office of Consumer Counsel and the PUC staff argued that the 16-megawatt plan be adopted to curb the costs of the program. "Less than 1 percent of Xcel customers benefited, but we have to think about all the ratepayers," said Bill Levis, director of the consumer counsel office. Xcel said in its filings that the deficit will be erased by 2017. The commission is expected to issue its written order the first week in June, at which time the plan will go into effect. Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com Read more: Colorado regulators tighten rooftop solar-energy incentives - The Denver Post http://www.denverpost.com/breakingnews/ci_20706345/colorado-regulators-tighten-rooftop-solar-energy-incentives#ixzz1wGykFqdC Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

Denver mayor touts world energy forum and renewable energy job growth in Colorado

The inaugural World Renewable Energy Forum will come to the Denver Convention Center in a week, bringing thousands of representatives from 66 countries. The event "will be the first time that solar energy powerhouses will come together under one roof to advance the use of solar energy, energy efficiency and other sustainable technologies worldwide," Denver Mayor Michael Hancock said today. "We are excited to host this inaugural event with global energy leaders to discuss how to meet the world's economic, environmental and security challenges through the advancement of renewable energy technologies," said the mayor. While touting the forum, Hancock also said that Denver "is a national leader in the energy industry" and the forum will "shine a bright spotlight on this booming sector." "Job growth is happening right here in Denver by renewable energy companies from around the nation and around the world, and by the city and county of Denver," said the mayor. Hancock said that since 2010, more than 100 jobs have been created through programs and initiatives managed by the city. And as recently as this week, he added, the city has launched a call center and hired three employees to assist Denver residents and businesses on their path to save energy as a part of the Denver Energy Challenge. The program is a free residential and commercial energy program provided by the city to help residents and businesses to cut energy waste, save money and increase indoor comfort and air quality, he said. "Now as we look ahead, Denver's green economy is a top for my administration," said the mayor. "It is our intention under that plan to recruit more businesses in the sector and retain the ones that already call Denver home." The mayor's office noted that in the past two years, more than 20 solar and wind companies have announced they would either expand or relocate to Denver and the region, leading to an overall 6.4 percent growth rate in the energy sector in 2011 . This growth is directly attributable to some of the world's largest energy industry leaders such as SMA Solar Technology, General Electric and Vestas expanding or relocating in the region, which has resulted in the creation of more than 21,000 jobs and Colorado leading the nation in solar jobs per capita, the mayor's office said. Dr. Chuck Kutscher, who is the program chair for the World Renewable Energy Forum, praised Denver. "Denver and the metro-area are widely recognized as leaders in innovative, sustainable energy technologies which is exactly why it is the perfect venue for the conference," said Kutscher. Read more: Denver mayor touts world energy forum and renewable energy job growth in Colorado - The Denver Post http://www.denverpost.com/breakingnews/ci_20540819/denver-mayor-touts-world-energy-forum-and-renewable#ixzz1trREFWRp Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

Colorado Governors Energy Office

The gas station near our neighborhood has raised the price of a gallon of gas by nearly 20 cents in just one week. It's the same everywhere. Gas is climbing to nearly $4 per gallon — essentially a job-killing tax on consumers just as we are beginning to see the economy improve. Like Yogi Berra said, "It's déj… vu all over again." We have seen this play before. In 1973, responding to our first energy crisis, Gov. John Love left Colorado to become the nation's first "energy czar." His charge in Washington, D.C, was to develop a plan that would help America become energy independent. Forty years and seven presidents later, our country is finally beginning to achieve domestic energy independence. But as Thomas Friedman said, "The biggest energy crisis we have in our country today is the energy to be serious — the energy to do big things, in a sustained, focused and intelligent way." It is why the Obama administration is calling for an "all of the above" energy policy that promotes development of a diverse mix of energy resources, including solar, wind, biofuels, natural gas, oil and coal. An "all of the above" energy strategy makes sense for the country. It also makes sense for Colorado, where we are already leading the way. Colorado is recognized as a leader in wind, solar and geothermal energy, and for what former Gov. Bill Ritter called the "new energy economy." Colorado is also home to abundant supplies of natural gas and low-sulfur coal. Colorado was the first state to pass a voter-approved renewable energy standard. We have an ambitious but achievable goal of using 30 percent renewable energy by 2020, giving Colorado one of the nation's strongest renewable energy standards. In 2010, a bipartisan group of legislators approved the Clean Air Clean Jobs Act, legislation that will improve Colorado's air quality by using clean-burning natural gas to generate electricity. Thanks to the collaborative efforts of industry and the environmental community, Colorado now has the country's strongest public disclosure rule on the process of fracking. We have partnered with Oklahoma to lead an effort aimed at creating a market for compressed natural gas vehicles, which run cleaner, cheaper and keep jobs and dollars in the U.S. rather than exporting them to foreign dictatorships. Eleven other states have joined in the effort to leverage the purchasing power of state fleets. Thanks to the bipartisan leadership of Democratic state Sen. Pat Steadman and Republican state Rep. Jon Becker, we have an opportunity in House Bill 1315 to expand the mission of the Governor's Energy Office and recast this agency as the Colorado Energy Office. The new Colorado Energy Office will promote all types of energy that protect the environment, lower consumer costs and increase energy security. The Steadman-Becker bill will extend funding for the Colorado Energy Office for five years and focus the office on long-term energy projects that have broad job creation potential. In short, this legislation creates an "all-of-the-above" Colorado Energy Office that builds upon our state's national brand as a leader in energy conservation and renewable clean energy. It will also enhance Colorado's reputation for energy innovation. The Steadman-Becker bill focuses the state's energy work on promoting innovative energy technology, no matter if the fuel source is wind, gas or coal, as long as that energy can benefit the environment and save consumers money. Tens of thousands of Coloradans are currently employed in the energy sector, and with sustained focus on promoting energy resources and technologies, the Colorado Energy Office can help grow this diverse industry. We need this bipartisan legislation to pass the General Assembly this year. The Steadman-Becker bill will help Colorado's economy create jobs and buttress Colorado as a national leader in developing an energy strategy that is both environmentally sensitive and economically sound. Democrat John Hickenlooper is the 42nd governor of Colorado.

Major Closures for First Solar, Sunpower

Major Closures for First Solar, Sunpower


First Solar closing a German plant and idling 4 production lines in Malyasia. SunPower also shutting down part of its overseas operations.
New Hampshire, USA -- Two American solar heavyweights built on overseas manufacturing are scaling back operations in an effort to keep up with a shifting landscape.
On Monday, San Jose, Calif.-based SunPower announced it was closing a 125-MW capacity manufacturing facility in the Philippines and pushing some of those operations to its 575-MW Fab 2 facility also in the Philippines. The company’s 600-MW plant in Malaysia remains its biggest operation.

Then on Tuesday, Arizona-based First Solar announced an even more drastic move to cut operating expenses. The world’s biggest thin-film manufacturer will close its facility in Germany and idle four of its 24 lines at its mammoth facility in Malaysia. The company will cut 2,000 jobs, or 30 percent of its workforce. The cuts and shutdowns are expected to reduce costs by $30 to 60 million this year and between $100 and 120 million annually after that.

First Solar said that through the layoffs, the company’s average manufacturing cost is expected to improve to $0.70-$0.72 per watt in 2012, below prior expectations of $0.74 per watt. In 2013 the company estimates average module manufacturing costs will range from $0.60 to $0.64 per watt.

“These restructuring actions are difficult to make and take, given all the important stakeholders involved" said Mark Widmar, First Solar's CFO, in a conference call. "The solar market has changed and so must we,” he continued.

Widmar explained that the restructuring actions are to "align our business to a demand profile that is highly reliable and predictable, which largely is our captive pipeline.” He indicated that the market for First Solar in Europe is largely drying up. The German factory that the company is closing had primarily supplied modules to third-parties, he said. “Clearly, you should take away from the European reductions that we’re doing from an op-ex [operating expense] standpoint, largely is all third-party module business. We’re not doing much of any systems business in Europe.”

Rumors that First Solar was looking for a buyer were shot down immediately. “I would not say that these actions are at all any indication of window dressing to position the company for sale. It is not that at all. It is integrated into a long-range plan that we feel highly confident in,” said Widmar.

First Solar continues to eye new markets in unsubsidized emerging regions of the world. “Over the next couple of years, we also intend to make progress in sustainable markets,” he said. More details will be announced during the company’s first quarter earnings call, which is scheduled for early May.

The moves by SunPower and First Solar, two of the world's biggest solar manufacturers, underscore the shift already underway in the solar industry and across much of the clean energy industries. Shifting policy, overcapacity and falling pricing coming from China continue to threaten future operations for many international players. In the past month alone, Q-Cells and Solar Trust of America have filed for bankruptcy. Also this week, reports indicated that Danish wind energy pioneer Vestas may become the target of a possible takeover from Chinese competitors.

According to Sam Wilkinson, a senior analyst at IMS Research, the moves point to the mounting pressure to reduce costs, even for a company like First Solar, long billed as a cost leader. First Solar's move also has much to do with changing policy and the overall difficulty stemming from the European market.

Hickenlooper, Bennet tout Colorado's energy leadership

If the United States is to pursue an “all of the above” energy policy, Colorado will be the model for the nation, said Gov. John Hickenlooper, speaking Tuesday at the Global New Energy Summit at The Broadmoor.

Colorado is a leader in wind and solar energy both in manufacturing and in production potential, Hickenlooper said, and has some of the largest natural gas reserves in the country, along with oil and coal resources.

“It allows us to be that test tube case where all those energies and technologies can be implemented,” Hickenlooper said. “We’re open to anything.”

He said the nation’s first priority should be developing natural gas resources, where recent advances in drilling technology have led to a huge boost in production, but that it was smart to invest in renewable energy at the same time.

“We don’t think our house is going to burn down, but we spend a tenth of a percent or two of our home’s value for fire insurance,” Hickenlooper said. “Long term, if we’re convinced about climate change, we have to continue looking at solar and wind.”

However, he said, the country should be open to all energy sources, touting Colorado Springs’ Neumann Systems Group and its clean coal technology as an example.

“I wouldn’t rule out coal — there’s a company here in Colorado Springs, Neumann Systems, that has a scrubbing system to pull the carbon dioxide off of coal,” Hickenlooper said. “As long as it’s data-based and science-driven, I think we should be open to all of those.”

Sen. Michael Bennet, speaking on a panel with former Senate Majority Leader Tom Daschle of South Dakota and former Sen. Bob Bennett of Utah, also talked up Colorado’s potential as an energy leader, but bemoaned the inability of politicians to work together to advance national energy goals.

Bennet said government will never be the driving force behind energy trends and innovation, but that it could play an important role in boosting new technologies. Bennet said partisan bickering in Washington, D.C., is harming those efforts.

“I don’t think we’ll see a comprehensive energy policy soon,” he said.

He cited the inability to pass an extension of the wind energy production tax credit as an example of political dysfunction that is hurting Colorado businesses.

“Washington has become the land of flickering lights,” he said. “We create a two-month extension over here, a four-month extension over there. Part of what we need to provide is predictability over a period of time.”

Read more: http://www.gazette.com/articles/leadership-136631-pursue-bennet.html#ixzz1sG1HuXcz

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.

Study Shows Diversity in US Solar Market

In 2011, American renewable energy investment in solar and wind technologies dominated the global market, propelling the United States past China into the leadership position, according to Ernst & Young's latest quarterly, "Renewable Energy Country Attractiveness Index (CAI)," released today. Ernst & Young also issued a new forward-looking report—"United States Renewable Attractiveness Indices"—that benchmarks the US state investments that were the driving force behind this shift, offering insight into the nation's diverse renewable energy markets, energy infrastructures and their suitability for individual technologies. Most notably, the report highlights that, despite uncertain macroeconomic conditions, renewable energy—particularly in states like Massachusetts, Colorado, Texas and California—is positioned very favorably to benefit from future investments.

While California's dominance of the All Renewables Index was anticipated, the top five rankings of states like Colorado, Massachusetts and Texas demonstrate a commitment to growing energy infrastructures across the nation. For instance, New Mexico and Colorado came in second and third respectively in the All Renewable Index because of consistent growth and strong potential across all renewable energy technologies. Massachusetts and Texas tied for fifth with a strong draw for solar and wind investment respectively.

In addition to providing a baseline for future reports which will be released semiannually, the United States Renewable Attractiveness Indices looks at issues that will enhance or impair further development in the renewable energy markets, such as incentives like the Production Tax Credit, wind power's key incentive. The continuance of this tax credit would have a significant impact on what has become a thriving domestic manufacturing sector.

Previewing solar policy in 2012 and beyond

Policy, particularly at the state and even at the company level, has a large impact on solar and other renewables. It’s helped California, Colorado and New Jersey, among other states, increase the presence of renewables and has driven jobs growth.

But policy, either enacted by a legislature or by regulators, can also hinder the development and growth of the solar industry. During Solar Power Colorado, Colorado Solar Energy Industries Association’s (COSEIA) annual conference, a panel of policy experts discussed what legislation and policy, good and bad, is likely in the coming years.

One thing that’s definitely starting to change is how utilities work with distributed generation.

“One thing that’s happening is an increase in utilities wanting to get into the business of selling solar,” said Annie Carmichael, the Vote Solar Initiative’s solar policy director.

She cited Arizona’s APS, a utility which last year started selling solar systems to schools and public buildings. The utility offers a third-party ownership option, allowing the entities to install solar with no upfront costs, like residential solar leases.

“They don't lose revenue or a connection with their customers,” she said.

On the other side of things, utilities may try to push legislation that adds charges to homes and businesses bills for going solar, according to Carmichael.

“The other thing we're seeing, which is definitely coming to Colorado this year, is the proposal of network-use charges and standby charges for net-metered customers,” she said. “San Diego Gas and Electric introduced a standby charge of $10 to $40 for a solar installation.”

Ultimately Vote Solar and others were able to stop the utility from enacting the policy.

But other utilities are likely to push for similar policies and legislation in other states.

“The message [utilities are using] here is that net-metering is an unfair subsidy. That it's a cost shift, where low-income customers are subsidizing wealthy solar customers,” Carmichael said.

The bodies that regulate solar and energy, like Colorado’s Governor’s Energy Office (GEO), are also changing as the industry matures.

“We really are trying to understand where are the market failures and the market barriers that are preventing economic activity from occurring,” said GEO Director TJ Deora. That’s partly because the GEO is switching to a much tighter budget now that federal monies and its other funding streams are drying up.

The office is not working on doling out incentives as much as it is interested in creating an environment for job creation, energy security and lowered long-term consumer costs and providing environmental protection, according to Deora.

“We think there's plenty of opportunity within all those areas where we can keep ourselves busy,” he said. “GEO wants to bring societal Interest and profits together, really to do it through policy and through stakeholders who understand where these alignments might be.”

Colorado’s renewable portfolio standard requires investor-owned utilities, which supply about 60 percent of the state’s customers with electricity, to source 30 percent of their electricity from renewables by 2020. The state’s rural energy authorities (REAs) and municipal utilities are only required to source 10 percent of their electricity from renewables by that date.

That may change, said Pete Maysmith, executive director of Colorado Conservation Voters.

“REAs are becoming more interested in renewables as the price comes down,” he said. “That's great to hear. I think a lot of people believe we need to raise that standard up.”

Colorado may do more to drive renewable energy growth by designing legislation that designates solar-specific communities.

Legislatures may also look to California’s Million Solar Roofs initiative to create ways to increase solar in the state, Maysmith said

Solar Power Colorado 2012: The potential for solar thermal

Here at Solar Power Colorado, solar thermal was referred to as the sleeping giant of renewable energy. That’s probably because, while solar PV efficiency currently tops out at about 20%, commercially available solar thermal efficiencies can be up to 80% efficient.

Solar thermal is a loose term for any device that uses the sun’s heat, rather than converting its energy into electricity, which accounts for its improved efficiency over PV. Solar thermal most often comes in the form of panels with a liquid underneath them. That liquid can then be used to heat water, the air inside a home, a pool, or even provide electricity and cooling when hooked up to a sterling engine, like the systems provided by Cool Energy.

In 2008, 28GW of solar thermal were installed worldwide, with China making up 78% of that. By contrast, the US had less than 1% of the market. Solar thermal systems are installed on more than 60 million homes in China and 10 million in European. In the US, fewer than 1 million homes have solar thermal of any kind. According to Tony Montgomery, Energy Organizer for the Colorado Environmental Coalition and co-Founder of the Solar Thermal Alliance of Colorado, “China is going full bore about developing every energy source they can. Many countries only have policies for solar thermal, while we have everything but.”

In 2010, there was about 5MW installed in the US. The Colorado Solar Thermal Alliance estimates that number could conservatively be 780MW by 2050. That means that it will be a $1 billion dollar industry, employing almost 25,000 people nationally by then. Of solar thermal costs, 2/3 are related to labor, meaning more money stays in the community where it is installed, a huge benefit for communities struggling in a tough economy.

Because solar thermal can run the gamut from simple, passive hot water heating to utility-scale concentrating solar power, one of the largest obstacles has been figuring out how solar thermal fits into existing renewable energy policy.

The EU, United Kingdom, and Canada are all making solar thermal an important part in their renewable energy plans for the future. The EU, for example, has the goal in place to generate 50% of heating requirements through solar thermal by 2050. That’s quite a lot for a continent with decidedly less sunshine than we get here.

Consistent policies and incentives are needed to allow us to catch up with the rest of the world. The problem becomes quantifying the energetic advantage of a solar thermal system. The renewable portfolio standard (RPS), arguably the most important policy driver for renewable energy, is based on electricity generation, so measures of electricity and fuel not used for heating are difficult to monetize. As a result, there is no impetus for utilities to encourage solar thermal because it reduces their business without contributing to their RPS requirements.

One approach would be to broaden demand-side management and efficiency incentives to include solar thermal. Another would be to create a second renewable portfolio standard, this one centered on Btu (British thermal units, the most common measure of heat), which could apply to biomass, geothermal, and solar thermal.

Currently, most homes are heated by natural gas, which has created an additional obstacle for solar thermal because it is so cheap and isn’t considered as dirty as other forms of carbon-based energy. Despite this, a solar thermal system can pay for itself in as little as 5 years because of its efficiency; a fact that hasn’t caught on with the public, yet. But, the members of the Solar Thermal Alliance of Colorado are confident that once policy catches up with technology and the public learns about its advantages, solar thermal is going to awaken and become a vital part of our energy portfolio.

Written by Sydney Kaufman, Contributing Editor, US, Solar Novus Today

COSEIA all set for 2012 Solar Power Colorado conference and expo

COSEIA all set for 2012 Solar Power Colorado conference and expo


Theo Romeo


Feb 02, 2012


On Feb. 09, Colorado’s solar industry puts all its chips on the table.

The 2012 Solar Power Colorado conference and expo, hosted by the Colorado Solar Energy Industries Association, gets underway next week at the Embassy Suites Conference Center in Loveland, Colo. And there are a few notable changes from last year’s event, which had sold out nearly a week before the doors opened.

First, CEO of Solar Energy Industries Association Rhone Resch will join three other industry heavy hitters—Paula Mints, Navigant's principal solar analyst; Travis Bradford, author of the book Solar Revolution; and national policy expert Adam Browning, executive director of the Vote Solar Initiative—for the “State of the Industry” panel, taking place from 8:30 a.m. to 10:30 a.m., Thursday, Feb. 09.

“We have a huge number of solar leaders who are flying in to go to this event,” said Neal Lurie, COSEIA’s executive director. “That’s a huge vote of confidence in the future of the Colorado solar market.”

Another notable difference will be that Colorado Governor John Hickenlooper will deliver the keynote address this year.

“Having Governor Hickenlooper participate in Solar Power Colorado reinforces his commitment to the state’s solar sector,” said Neal. “We have seen a huge amount of interest in collaborating with local governments to help streamline permit processes and reduce non-hardware costs of going solar.”

In fact, Hickenlooper signed a bill which limited solar permitting fees in the state last July.

The final and maybe most interesting changes to this year’s event are that COSEIA decided to shorten the conference and expo from three days down to two—oh, and there will be gambling.

That’s not a typo.

So why only two days?

“We regained out sanity,” joked Lurie. “Putting together a major conference requires a significant amount of coordination. We’d rather be able to pack in a huge number of fun activities over two days.”

And one of those activities is a casino/networking night.

If you’ve ever been to a trade conference, there is normally some type of networking event. You grab a few drinks, and look for people you know, talk to them, and stare at the strangers around you, who are staring right back.

“It can be hard for professionals to come into a room and meet,” said Lurie. “Playing blackjack or poker can really break the ice.”

In addition to Colorado solar installers, developers, financiers and energy leaders, there will be another group holding their cards close to their chests at the casino night.

“We’ve also seen a huge interest from outside organizations,” said Lurie. “A broad range of solar businesses who haven’t been involved in COSEIA in the past are participating—Trina Solar, Jinko—companies that weren’t here last year. There’s a continued interest in the Colorado marketplace.”

And there should be.

Per capita, Colorado has more solar jobs than any other state. It recently was awarded a DOE grant for solar projects. It’s the home of the National Renewable Energy Laboratory, and COSEIA has been working its butt off.

Last year, the organization set up an event that connected solar developers and financiers and completed the Solar Thermal Roadmap, which outlined how the state can be a leader in the emerging technology.

So what will 2012 bring to the Colorado solar market?

You’ll find out next week.

Solar Power Colorado is open to the public, and as of this writing, there is still room available. You can register at www.coseia.org.

GE CEO: Solar-Panel Sales to Exceed $1 Billion by 2020

GE CEO: Solar-Panel Sales to Exceed
$1 Billion by 2020

Posted By admin On November 4, 2011 @ 2:35 pm In ARCHIVES, Feature Articles | No Comments
General Electric Co. (GE) [1] expects sales of its solar power panels to exceed $1 billion annually by 2020, Chief Executive Officer Jeffrey Immelt said at Columbia University event in New York with Mayor Michael Bloomberg.

Staff-Updated

“I know that by 2020 this is going to be at least a $1 billion product line. We’re going to invest what it takes,” Immelt said. ”We did this with no government funding.”

If his optimistic projection becomes a reality, it will be good news for Colorado workers. The company recently selected Aurora [2]for the site of its new $300 million thin-film solar panel manufacturing plant.

The Fairfield, Connecticut-based company said the new facility will make enough panels using cadmium telluride annually for about 80,000 U.S. homes, or 400 megawatts. The panels be more efficient, lighter weight and larger than conventional thin film panels.

Colorado beat out 10 other states to land the investment, including New York, because of its strong workforce, proximity to one of GE’s existing “centers of excellence” and availability of needed infrastructure.

Victor Abate, head of GE’s renewable energy business said that the work the company has done with its Colorado-based solar team allowed them to “achieve efficiencies in our solar panels in record time.”

In addition, “The Colorado location will allow us to deliver our technology roadmap faster and commercialize industry-leading panel efficiencies sooner,” Abate said.

“We also look forward to continuing to build our relationships with Colorado’s local, state and federal officials who have been extremely helpful as we moved through the site selection process,” Abate added in the release.

Colorado's future in renewable energy dims after years of growth

Colorado's future in renewable energy dims after years of growth

The Denver Post

Jerry Marizza, new-new energy coordinator for United Power, stands at Colorado's first "solar farm" in Brighton last week. (Joe Amon, The Denver Post)
About 1,200 wind turbines are spinning on Colorado's Eastern Plains, hundreds of acres of solar arrays are tilted skyward in the San Luis Valley and the roofs of more than 10,000 homes and businesses sport solar panels.
Since voters in 2004 passed Amendment 37 — which set a state renewable-energy standard — Colorado has built or committed to about 2.5 gigawatts of renewable generation.
That's enough energy to power between 500,000 and 650,000 homes, based on estimates from the wind and solar industries.
The standard, however, is close to being met, and the future for renewable-energy incentives is uncertain. So, the question is: What is renewable energy's future in Colorado?
"Are we going to see the billion dollars in renewable investment that was made in the last five years repeated in the next few years?" asked TJ Deora, director of the Governor's Energy Office.
United Power has started operating a plant in Erie that uses methane gas from landfills to generate electricity. (Joe Amon, The Denver Post)to see the billion dollars in renewable investment that was made in the last five years repeated in the next few years?" asked TJ Deora, director of the Governor's Energy Office.
"We aren't going to see a lot of local growth," Deora said.
The last seven years have seen the creation of more than 11,000 renewable- energy-related jobs in the state, according to industry trade groups that warn the growth might stall or reverse.
To be sure, some utilities are pushing ahead with renewable-energy projects, and leasing companies are making it possible for homeowners to install solar panels on their roofs.
"Customers want renewable energy," said Jerry Marizza, new-energy coordinator for United Power, a Brighton-based electric cooperative serving 120,000 people.
United developed the state's first "solar farm" and last year started using landfill gas to make electricity.
Still, Colorado is at a renewable-energy "plateau," said James Newcombe, director of the electricity practice at the Rocky Mountain Institute, an energy-consulting group based in Snowmass. "The landscape will be more challenging for renewables."
Much of the push came from the state renewable-energy standard, which requires investor-owner utilities to generate 30 percent of their power from renewable sources, and municipal utilities and cooperatives to generate 10 percent by 2020.
Those goals are now close to being met.
After creating or contracting for 2.4 gigawatts of wind, solar and roof-top solar generation, Xcel Energy, the state's largest utility, said it will meet the standard ahead of schedule, and with small additions, it will be in compliance through 2028.
Black Hills Energy, which serves Pueblo and southeastern Colorado, also has to meet the 30 percent standard.
The Rapid City, S.D.-based utility is generating 12 percent of its power from renewable sources, said Chris Burke, vice president of Colorado operations.
Black Hills has announced a 29-megawatt wind project and will likely add another 125 to 150 megawatts of wind, Burke said.

Utilities' progress mixed
Two municipal utilities — in Colorado Springs and Fort Collins — have to meet the 10 percent target.
Colorado Springs Utilities is planning to add 50 megawatts of wind and already has 2 megawatts of rooftop solar through its own incentive program.
"Colorado Springs doesn't need any new resources until 2024," said Mark James, the manager overseeing renewable energy for the utility.
In Fort Collins, the City Council has called for a strategic energy plan focusing on local projects, said Steve Catanach, manager of Fort Collins Power & Light.
The city will need between 80 megawatts and 135 megawatts of generation to meet the standard, Catanach said.
Another area where renewable-energy growth has cooled off is the installation of home and business rooftop solar, which was fueled by incentive programs offered by the utilities.
Xcel trims incentivesSince 2006, Xcel has through its SolarRewards program provided nearly $250 million in rebates and credits — from a fund created by adding a 2 percent charge on customer bills.

About 9,600 solar arrays have been installed, but the fund is $51 million in the red, and Xcel has cut back on incentives and capped the program.
"We've shifted our focus to other states, and we've had to trim staff," said Jim Welch, chief executive of Bella Energy, a Boulder-based solar installer.
Bella's current projects include a solar-panel installation on the Salt Palace in Salt Lake City. The company is also working in New Jersey, Delaware and New England.
About 6,100 people in the state are employed in solar energy, according to a study by the nonprofit Solar Foundation.
"Colorado is a leader in renewable-energy jobs, but that's going to change if these issues aren't addressed," said Neil Lurie, executive director of the Colorado Solar Energy Industries Association.
Compounding the loss of state incentives is uncertainty about the future of key federal subsidies — production tax credits for wind and solar, and a program that offered cash grants for projects.
The wind-production tax credit — equal to $22 for each megawatt a wind farm produces — is set to expire in December. The solar tax credit expires next year.
Also set to lapse this year is a federal program, known as Section 1603, that enabled energy developers to get a cash grant instead of tax credits.
The program was started in 2009 when few investors were looking for tax credits.
"The 1603 program made projects easier to develop," said Blake Jones, chief executive of Namaste Solar, a Boulder-based solar installer that is also doing more of its work from Kansas to New York.
"It is just very difficult to plan for the Colorado solar market," Jones said.
Growth opportunitiesDespite the headwinds, renewable-energy advocates say there are still opportunities for renewable energy in the state.
Xcel may soon reach the 30 percent renewable-energy standard, but the state average in 2009 was just 6.5 percent, said John Nielsen, energy-program director for the environmental-policy group Western Resource Advocates.
One of the places for growth is in rural electric cooperatives, another is in solar gardens, in which residents can buy shares, Nielsen said.
Cooperatives must also meet the 10 percent renewable-energy standard, and there are already 25 cooperative projects adding up to 35 megawatts, including the two by United Power.

United Power's "solar farm," begun in 2009, enables customers to pay $1,050 for a 210-watt panel with a 25-year lease — about enough time to pay off the investment.
"We did this as a service and did it grow-as-you-go," said United's Marizza. The farm started out as 10 kilowatts and has now doubled in size as customers joined.
In 2011, the legislature passed a law promoting solar gardens, and industry executives say they hope this will be a growth area.
Some advocate raising the renewable-energy standard above 30 percent.
"In October, Xcel hit a record 55 percent of the electricity on the system coming from wind," said Ron Lehr, western representative for the American Wind Energy Association, a trade group. "Let's keep it going."
Prices get competitiveThe biggest boost for renewables, however, may come as they become cheaper and more competitive with other energy sources.
Solar-panel prices have dropped 40 percent this year to about $4 a watt, and the price for a solar installation is expected to continue to drop, Namaste's Jones said.
The cost that Xcel is paying for wind power has been cut almost in half in the past 10 years to $32 a megawatt-hour, said Deora of the Governor's Energy Office.
That price is close to being competitive with coal and natural gas, according to the federal Energy Information Administration.
"The long-term goal is for renewables to compete without subsidies as part of a balanced energy portfolio," Deora said.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com

New solar field under construction in West Windsor

New solar field under construction in West Windsor


The University has begun installation of the new solar photovoltaic panel field in West Windsor Township after clearing 27 acres of land and obtaining the necessary local, county and state permits and utility company approvals.
The 5.3-megawatt solar field will annually generate 8 million kilowatt-hours of energy and could eventually reduce the University’s carbon dioxide emissions by 3,090 metric tons every year, according to University estimates. This reduction will contribute to the University’s 2008 Sustainability Plan, which aims to bring its carbon dioxide emissions down to the 1990 levels by 2020.

The system was designed by SunPower Corporation, and will be funded and owned by Key Equipment Finance, a Colorado-based firm. Princeton University will host the field and lease the equipment from Key Equipment Finance for about eight years, after which the University will have the option to purchase it at fair market value.

Construction teams first mobilized on the site in early October. In December, they began removing trees, weeds and debris from the field’s soil, which was composed largely of sediment and waste that had been dredged from Lake Carnegie back in the 1970s. The natural matter collected from the site will be resold for composting and animal bedding. “The pleasing thing is, it’s all being reused, it’s not being land-filled or wasted,” said Ted Borer, the Princeton Energy Plant Manager.

Most recently, workers planted the first vertical support piers, which are the steel columns designed to hold up the photovoltaic array. Long beams called “torque tubes” will later be added to these piers, and some will be outfitted with bearings capable of rotation. Of the panels to be installed, 80 percent will be new “SunPower T0 Trackers,” which use a GPS device to follow the sun throughout the day and thus maximize energy absorption. The remaining 20 percent will be fixed in place. As of January 13, over 500 of the 4,000 piers had been installed.

The conduit that will carry power from the field to the campus has been placed under the Delaware & Raritan Canal and Lake Carnegie. A gravel pathway is being built around the site for maintenance vehicles. The University has also held a kick-off meeting with local utilities representatives.

Several dozen people from SunPower and specialty subcontractors are currently working on the site. The peak anticipated staff for the project will be between 80 and 90 people, Borer estimated. “All the labor is union labor,” he added.

The project’s completion has been scheduled for the summer of 2012. “They [SunPower] have a pretty ambitious schedule laid out in front of them, but so far we’re tracking it,” Borer said.

Though the prospect of using solar panels to generate energy for the University has long been on the minds on those in the facilities department, the project became financially possible in 2010 due to a federal grant and various incentives offered under the American Recovery and Reinvestment Act, as well as the revenue-generating potential of New Jersey’s Solar Renewable Energy Certificate Program.

The West Windsor solar panel field will become the third major solar energy-producing site on campus, following the installations of solar panels on the Frick Chemistry Laboratory and the roof of the Research Collections and Preservation Consortium building.

Former Xcel Energy CEO Dick Kelly is now Board Chairman At Solar Giant BrightSource

Former Xcel Energy Inc. (XEL) Chief Executive Richard Kelly has joined the board of California solar-power developer BrightSource Energy Inc. as chairman, succeeding John Bryson, the company said Wednesday.

Kelly retired last year from Minneapolis-based Xcel, which operates utilities in Minnesota, Colorado and other states.

Bryson was chairman of BrightSource's board before President Barack Obama tapped him last year to become Secretary of Commerce. Bryson was chairman and chief executive of Edison International (EIX) until 2008, when he retired.

Kelly said he was "extremely excited" to join BrightSource, adding that he sees the company as "uniquely positioned" to meet increasing global demand for clean energy.

BrightSource obtained a $1.6 billion govenment-loan guarantee last year to help finance construction of a 390-megawatt solar-thermal power plant in the California desert.

The privately held company plans to build additional solar-power plants to supply California utilities owned by Edison and PG&E Corp. (PCG).

BrightSource backers include VantagePoint Capital Partners, Morgan Stanley (MS), BP PLC (BP.LN, BP), Chevron Corp. (CVX) and Google Inc. (GOOG), among others.

2011 Record US Solar Growth

Domestic solar energy industry achieved a record for installations and growth in the third quarter of 2011, according to a new report

Released by GTM Research and the Solar Energy Industries Association (SEIA), the U.S. Solar Market Insight: 3rd Quarter 2011 report reveals that the US solar market installed more than 1,000 megawatts (MW) of solar capacity in the first three quarters of 2011, already surpassing the 2010 annual total of 887 MW.

In the third quarter, 449 MW was installed, a record for quarterly installations and more new solar electric capacity than was added in all of 2009. This also represents 140pc growth over the same quarter last year.

Looking forward, however, the outlook for continued strong growth is uncertain. The market impact of cheap Chinese solar panels and the potential expiration of the 1603 program weigh heavy on the industry. The SEIA report predicts that if there is no extension of the 1603 program, a tax equity bottleneck for projects will happen in 2012, leading to a possible slowdown in installations in late 2012 and into 2013.

“The US solar industry is on a roll, with unprecedented growth in 2011,” said Rhone Resch, president and CEO of SEIA. “Solar is now an economic force in dozens of states, creating jobs across America. But our industry needs stable policy on which to make business decisions, and unfortunately an underlying mechanism for financing solar projects is scheduled to expire on December 31.

“To keep the industry growing and creating jobs in the U.S. we need Congress to extend the 1603 program. The 1603 programme has done more to expand the use of renewable energy than any other policy in U.S. history.”

BLM to hold Colorado hearing on western solar plan

SUMMIT COUNTY —Colorado residents will get one more chance to offer input on a plan that could potentially open more than 111,000 acres of public lands in Colorado for industrial solar development.In response to strong public outcry, the Bureau of Land Management recently reversed its decision not to hold a Colorado public hearing on a supplemental environmental study to the Draft Solar Programatic Environmental Impact Statement in Colorado. The meeting is set for Jan. 11, 2012 at the Inn of the Rio Grande in Alamosa (7 p.m.)
In November and December, 2011, BLM held public hearings in Las Vegas, El Centro, CA, and Palm Desert but no Colorado hearing was scheduled.

Numerous citizens appealed to the BLM on the grounds that Colorado was not being treated fairly under the National Environmental Policy Act.

Nearly all the Colorado lands eyed for solar development are in the rural, high-altitude San Luis Valley, including over 16,000 acres in 4 Solar Energy Zones. The San Luis Valley is home to Department of Interior Secretary Ken Salazar who oversees the BLM’s increasingly controversial solar development proposal on public lands.

The supplemental study addresses impacts for large-scale industrial solar development that will have significant impacts on a broad range of individuals, communities and environments. The plan will affect areas in the San Luis Valley subject to industrial solar development.

Critics say the proposal also impacts ratepayers and taxpayers who could be deprived of the benefits of locally produced solar energy development as a result of the disproportionate allocation of scarce public resources for remote, centralized solar power plants on public lands.

“We are pleased that BLM listened to that people and reversed its position”, said Ceal Smith, founder of the grassroots, San Luis Valley Renewable Communities Alliance. “Interest in the San Luis Valley is very high and now Coloradans will have the same chance as citizens in California, Nevada and Arizona to express their concerns about the proposed large-scale privatization of public lands for industrial energy development,” Smith said.

“A lot more is known now about impacts and less destructive and costly point of use alternatives for solar development. It’s important that the BLM give full consideration to this new information,” she added.

More than 100 citizens attended the March 7th, 2011 public scoping hearing on the Draft PEIS in Alamosa, CO. Participants included adjacent landowners, ranchers and farmers, local government officials, student and community environmental groups, solar installers and business representatives, global climate change and clean energy advocates and professionals, including 24 individuals who came prepared to speak.

The Alamosa meeting drew more attendance than any of the other public hearings held throughout the country, with the possible exception of the Feb. 8th Indian Wells hearing in California.

The Supplement to the PEIS and other related documents can be downloaded here: http://solareis.anl.gov/documents/supp/index.cfm

The deadline for public comment on the Supplement to the Draft Solar PEIS is January 23, 2012.

Colorado Solar Industry Faces Challenges

Colorado's San Luis Valley, an alpine desert, is rapidly becoming a leading producer of solar energy in the United States. The sun shines more than 340 days a year in the San Luis Valley. So the solar industry is booming here.

Several solar facilities in the region generate electricity on an industrial scale and others are under construction. Under Colorado law, 30 percent of power used in the state must be generated from renewable sources by 2020. But given the demand for electricity, Alamosa County's year-round sunshine still won't be enough.

Nick Thiel, plant manager of San Luis Solar Ranch, said, “We are sitting on 220 acres [89 hectares] with roughly 110,000 panels, equivalent to a 30-megawatt site,” said Thiel.

The company says that's enough to supply power to more than 7,500 homes.

“In the mornings, when the sun rises over those mountains, their sensors attract the sun, so they move in concordance with the sun. In the morning they face the east, and as the day falls, it will follow all the way to the west until it sets,” said Thiel.

In this valley, solar farms are expanding rapidly, making Colorado the third-largest solar energy producing state in the US, after California and New Jersey.

But the sun is not enough.

Alamosa County, one of the largest in the region, has six solar farms. County Commissioner Darius Allen said 650 hectares have been allocated for solar power and more could be dedicated, if the infrastructure were better.

“Right now, the transmission lines we have in here is pretty much maxed out,” said Allen.

But that's not the only problem. San Luis Valley is an agricultural area producing potatoes, grain, alfalfa and pasture for cattle. Farmers are concerned about land going to the solar industry.

Steve Vandiver is General Manager of the Rio Grande Water Conservation District. He said, “If agriculture goes away here, we have nothing left."

Agriculture in this valley is under another threat. The land, rivers and aquifers under the Valley are drying out. That also affects solar power.

“Some of the bigger plants - the solar thermo plants - take a significant amount of water. You have to dry up a lot of farm land in order to create a water supply that is large enough to support those types of plants,” said Vandiver.

Solar panels also need to be washed because dust accumulates on them.

The water shortage has forced authorities to draw up plans that will close hundreds of wells and retire agricultural land.

“Valley wide we are probably looking at 60 to 80,000 acres [24,000 to 32,000 hectares] that will have to come out of production in the long term,” said Vandiver.

Farmers are concerned. George Whitten is his family's third generation on this organic ranch.

Recently, he and his wife Julie Sullivan, an environmental activist and educator, recruited neighbors in a bid to fight the construction of an 800-hectare solar farm adjacent to their land. They won their case, and the project failed.

“I never thought I would be fighting solar energy, and so it was very bizarre,” said Sullivan.

“It’s giant parabolic mirrors. They are the size of a drive-in theater, and there were going to be 9,000 of those right along that power line,” said Whitten.

The Whittens say industrial sites - even solar ones - should not replace agriculture.

They say instead of saving energy, Americans are trying to figure out how to use more.

Colorado industry group gets $491,000 grant to cut red tape and costs for solar installations

Colorado industry group gets $491,000 grant to cut red tape and costs for solar installations

The Denver Post

A Colorado Solar Energy Industries Association team today received a $491,000 federal grant to develop a system that will cut red tape and cost for solar panel installations.

"Every municipality has been going about trying to set standards in a piecemeal fashion and that has added to cost," said Neal Lurie, executive director of the Colorado solar association.

Non-hardware costs, such as permitting, installation, design and maintenance account for up to 40 percent of the total cost of installed rooftop system, according to the US Department of Energy​, which awarded the grant.

In a report released earlier this year, San Francisco-based SunRun, a company that leases solar panels, estimated local permitting and inspection added $2,500 to the average residential installation nation-wide.

The average residential solar installation is now between $12,000 and $18,000 and half the costs are now for permitting, regulatory, interconnection, customer acquisition, installation, and other similar charges, Lurie said.

The COSEIA team will work with municipalities to develop consistent lists of best practices, on-line tools and other standards, with the goal of cutting application costs by 25 percent, Lurie said.

"The Energy Department​ is investing in this Colorado project to unleash the community's solar potential by making it faster, easier, and cheaper to finance and deploy solar power," Energy Secretary Steven Chu said in a statement.

The Colorado Solar Energy Industries Association team also includes: the Rocky Mountain Institute, Denver, Boulder County, Fort Collins, Golden, and the American Solar Energy Society.

Reduce your utility bill and receive a tax credit

Reduce your utility bill and receive a tax credit


The “clean energy economy” is here and growing day by day; thanks in part to the Investment Tax Credit for renewable energy that has stimulated job creation, while encouraging home and business owners to install and create clean power by using solar.

Established by the Energy Policy Act of 2005 and extended by The Energy Improvement and Extension Act of 2008, many federal incentives apply to renewable technologies. The federal tax credits have currently been extended to 2016.

In order to qualify for the following systems and receive the federal tax credit in 2011, the system must be installed by Dec. 31, 2011.

• Solar Thermal (Hot Water) Systems receive a 30% tax credit which applies to solar thermal system expenditures with no cap. Products must be certified by Solar Rating and Certification Corporation.

• Residential Solar Photovoltaic (PV) Systems receive a 30% tax credit which applies to PV system expenditures with no cap. Systems must be installed by a licensed contractor.

• Commercial Solar PV Systems receive a 30% Treasury grant instead of a tax credit for new installations. Business owners may receive a grant from the U.S. Treasury Department instead of taking the Production Tax Credit. Receive a grant of 30% of the cost of the system in approximately 60 days as a direct deposit. This grant can only be taken for systems where construction begins before Dec. 31.

• Commercial Solar PV Systems Bonus Depreciation 2008-2012 plus Modified Accelerated Cost Recovery System (MACRS) receive 100% bonus depreciation in 2011, 50% in 2012. MACRS businesses may recover investment in certain property through depreciation schedule; renewable energy technologies are classified as a five-year property.

What is the difference between a tax deduction and a tax credit? A tax deduction is subtracted from income before total tax liability is computed. Tax credit is subtracted directly from the total tax liability. The tax credit is more advantageous to the taxpayer. Example: Tax credit of $1,000 for someone in the 28% tax bracket is equivalent to a tax deduction of about $3,500. Consult your tax advisor for details.

Solar jobs have been created in part because the incentives available to you have increased the demand for solar electricity products and services. According to a recent study by Brookings Institution the clean energy economy employs some 2.7 million workers across the industry in sectors such as solar energy and green construction. Solar photovoltaic installations have grown at a compounded annual growth rate of 61% between 2006 and 2009.

Are you ready to earn your 2011 federal tax credit? Call Atlasta Solar Center and talk with a professional about the incentives and rebates available until the end of this year. Happy holidays!

Solar developers discuss investment needs for Colorado’s solar market

On Nov. 4, a panel of Colorado-based solar executives met with executives from national and regional banks at the “Solar Finance Roundtable” hosted by the Colorado Bankers Association and the Colorado Solar Energy Industries Association (COSEIA).
The solar-financing roundtable, held at St. Julien’s hotel in Boulder, Colo., was a unique opportunity for the various players in both industries to discuss how to help move the solar industry forward.
“Solar-related financing is one of the top pain points in the solar industry today,” said COSIEA Executive Director Neil Lurie.
It’s one of the top challenges that is inhibiting faster growth in solar, according to Lurie.
“Based on the feedback we've heard from the industry and our members, we estimate that about 80 to 90 percent of solar businesses in Colorado lack the financing that they need to be able to broker business deals that helps support customer needs,” he said.
AC Solar, which has installed solar on about 600 homes, half on-grid, half off-grid, could benefit from financing, said Co-Owner JoElyn Newcomb.
“If I had an easy financing program, I would double my size tomorrow,” she said.
At this point she said the company has so much business and limited access to financing that Newcomb only looks at customers that can pay for a system outright.
Still, options are becoming more open for homeowners, said Justin Pentelute, CEO of Syndicated Solar, which focuses primarily on commercial and utility solar development.
“Residential solar is definitely starting to gain. I think right now there's a lot of financing options that make a tremendous amount of economic sense,” he said.
However, he sees a gap in financing available for projects in between residential and large-scale commercial or utility-scale projects.
“We're seeing issues getting anyone approved that's not investment grade,” he said. “That's the biggest issues that we're coming up against.”
Out of 15 solar project proposals generally only one secures financing. That’s despite companies having good balance sheets, according to Pentelute.
There’s also an issue with the products available to support solar financing.
“There are no loans designed for solar,” Pentelute said.
Most loans aren’t designed for periods longer than 10 years.
“It isn't really consistent with the life of a solar asset, which is 25 years,” said Pentelute.
This could be fixed to some tweaks to existing offerings, which sounds easy, but isn’t, he said.
Thus far the best options for commercial clients with a yen for tax equity are capital lease options. For those that don’t want tax equity financing, Syndicated Solar finds that third-party operating leases are a good way to go.
“The power-purchase agreements have been the most difficult to process because there is no standardized agreement. It's really difficult to negotiate when you have three parties going to war on what's acceptable,” Pentelute said.
The need for solar companies to better educate bankers on solar benefits was clear.
“There are plenty of bankers that have no clue what a solar system is,” said Mike Healy, a founder of solar thermal developer Skyline Innovations. “I can't tell you how many conversations started or ended with 'alright so it collects the heat, and then electricity comes from there, and that's how you heat the hot water.' There is clearly an education gap. We need to educate them.”
Such work will help bankers become more familiar with solar.

Solar power showing greater mainstream potential

NEW YORK — Solar energy may finally get its day in the sun.

The high costs that for years made it impractical as a mainstream source of energy are plummeting. Real estate companies are racing to install solar panels on office buildings. Utilities are erecting large solar panel “farms” near big cities and in desolate deserts. And creative financing plans are making solar more realistic than ever for homes.

Solar power installations doubled in the United States last year and are expected to double again this year. More solar energy is being planned than any other power source, including nuclear, coal, natural gas and wind.

“We are at the beginning of a turning point,” says Andrew Beebe, who runs global sales for Suntech Power, a manufacturer of solar panels.

Solar’s share of the power business remains tiny. But its promise is great. The sun splashes more clean energy on the planet in one hour than humans use in a year, and daytime is when power is needed most. And solar panels can be installed near where people use power, reducing or eliminating the costs of moving power through a grid.

Solar power has been held back by costs. It’s still about three times more expensive than electricity produced by natural gas, according to estimates by the Energy Information Administration.

But the financial barriers are falling fast. Solar panel prices have plunged by two-thirds since 2008, making it easier for installers to market solar’s financial benefits, and not simply its environmental ones. Homeowners who want to go solar can do so for free and pay the same or less for their power.

Last month two of the nation’s biggest utilities, Exelon and NextEra Energy, each acquired a large California solar power farm in the early stages of development. Another utility, NRG Energy, has announced a plan with Bank of America and the real estate firm Prologis to spend $1.4 billion to install solar systems on 750 commercial rooftops.

Nationwide, solar power installations grew by 102 percent from 2009 to 2010, by far the fastest rate in the past five years.

“Every manufacturer globally is looking around for the next major growth market, and the U.S. is the first one everyone points to,” says Shayle Kann, managing director for solar research at GTM Research.

Making solar affordable still requires large tax breaks and other subsidies from federal and state governments. The main federal subsidy pays for 30 percent of the cost of a residential system. When state and other subsidies are added, as much as 75 percent of the cost can be covered.

But prices of solar panels, the squares of crystalline silicon or thin layers of metal films that turn the sun’s rays into electricity, are falling so fast that its advocates now credibly claim that solar will be able to compete with fossil fuels even when the federal solar subsidy shrinks by two-thirds in 2016.

“Over the past 10 years the industry has made the case that we needed to increase scale so we could reduce prices,” says Arno Harris, CEO of solar developer Recurrent Energy, a subsidiary of Sharp Corp. “We’re seeing it happen.”

The falling prices have made it easier for solar installers to raise the money needed to grow. And they’ve made solar power systems so affordable they can appeal to homeowners who want to save on their electric bill, not just reduce their environmental impact.

Tim Johnson, a high school math teacher in Philadelphia, had wanted to put solar panels on his roof for years. Like many people concerned about the environment, the thought of powering his home without burning fossil fuels had a strong appeal. But with two kids in college, he couldn’t justify spending $15,000, after subsidies, to do it.

But since March, he has generated 50 percent to 75 percent of his electricity with a set of solar panels on his roof, saving 20 percent on his electricity bills. His upfront cost for the system: $0.

Instead of buying and installing the panels himself, he signed up with SunRun, one of a handful of companies that build, own and maintain solar systems on homes. These companies earn money by charging customers for the power the panels produce.

Johnson pays SunRun $52 a month, and he pays his traditional utility for whatever extra power he needs from the grid. In all, he pays $60 to $100 a month for power; he used to pay $90 to $120.

SunRun can charge Johnson a competitive rate because federal and state subsidies pay for a portion of the installation. Also, the arrangement allows SunRun to take advantage of one of solar’s big advantages. Because it is generated near where it is needed, it doesn’t have to pass through hundreds of miles of wires, transformers and other equipment. The power price SunRun has to beat in order to entice customers like Johnson is an expensive retail rate, bloated with transmission and distribution charges that home solar doesn’t incur.

It would be cheaper over the long run for a homeowner to buy and install a solar system because he would not have to pay a company like SunRun for financing, service and maintenance. But these plans have growing appeal because they don’t require homeowners to lay out thousands of dollars up front.

In California, which leads the nation in solar power installations, 51 percent of the residential solar systems installed through the first three quarters of this year were sold with these plans, up from 12 percent in 2009.

SunRun and competitors such as SolarCity and Sungevity are expanding into more states, including Arizona, Colorado, Delaware, Maryland, Massachusetts, New Jersey and Pennsylvania. Last month, Google announced it would create a fund that local installers in every state can tap so they too can offer no-money-down plans.

Some installers are teaming up with big hardware chains Home Depot and Lowe’s in an effort to expose solar to customers who might not otherwise consider it.

“Awareness is still one of our biggest problems,” says Lynn Jurich, co-founder and president of SunRun, which has a partnership with Home Depot.

Solar panel prices have been declining for years because of lower costs for polycrystalline silicon, the main raw material for most solar panels, and larger-scale manufacturing, especially in Asia. In the last six months, demand has dropped sharply in Germany, the world’s biggest solar market, in response to shrinking subsidies. This has created a global glut of solar panels and accelerated the decline in prices.

Solar panels, which are priced based on the amount of power they can produce during full sunshine, sold for $1.34 per watt in mid-September, according to data from Bloomberg New Energy Finance. That’s down from $1.90 at the beginning of 2010. In 2008, they sold for $4 a watt.

The glut has been gut-wrenching for companies that make solar panels. Many of them remain profitable and are growing. But three U.S. panel makers have filed for bankruptcy in two months, including Solyndra, a solar panel maker that received a $528 million federal loan.

Falling profit margins are scaring investors. The stock price of First Solar Inc. has fallen from $170 in April to $53.77. Suntech Power Holdings Co. Ltd. has fallen from $11 to $2.07 over the same period.

The Solyndra bankruptcy has sparked a political uproar. Republicans have accused the Obama administration of pushing for Solyndra’s loan for political reasons and have used the bankruptcy to question Obama’s plan to help boost the economy by subsidizing clean energy projects.

The market will not get any easier for small solar panel makers. General Electric Co., Samsung and other big companies are entering the market. This should increase supply and bring down costs even further. GE announced this month that it would build the largest panel factory in the U.S., near Denver.

But what has been treacherous for solar panel makers has been a boon for companies that market and install solar systems, for companies that make electronics and other parts for solar systems, and for solar customers.

To be sure, solar is growing from a very small base. All of the panels now installed across the nation produce enough electricity to power 600,000 homes, or about as much electricity as one large coal-fired power plant.

There are 30,000 megawatts’ worth of solar projects awaiting approval in the U.S., according to the American Public Power Association. Not all of them will be built, either because of regulatory or financial hurdles. But even if only half that is ultimately built, it would be five times what is already installed.

“We’re going in the direction the planet and the industry needs to go,” says Harris.

AP