Archive for the ‘Solar’ Category
October 6th, 2008
Benefits of the Bailout Bill for Green Consumers
Stumble it!
So say what you like about the bailout bill that was passed last week in the House, but it includes some pretty excellent benefits for those of us Americans looking to embrace energy-saving and renewable energy. The bill makes it cheaper for us to go solar or to get a plug-in hybrid. Here’s a summary of the incentives included in the bill, courtesy of Green Wombat, The New York Times, and Speaker Pelosi’s website. To read the text of the legislation itself, click here.
+ The 30% solar investment tax credit has been extended to 2016, giving solar startups, utilities and financiers a major boost for bringing large-scale power plants and other projects online.
+ The $2,000 tax credit limit for residential solar systems has been lifted, meaning that homeowners can get a 30% tax credit on the solar panels they install after Dec. 31, 2008. That will save folks who want to install a system serious money — especially for those who live in states with generous state rebates. (If you buy a $24,000 3-kilowatt solar array in California — big enough to power the average home - you can claim a $7,200 federal tax credit. Add in the state solar rebate and the cost of the system is cut in half.)
+ The bill also includes tax credits of $3,000 or more toward the purchase of fuel-efficient, plug-in hybrid vehicles. To learn more about plug-in hybrids, click here.
+ There are also incentives for the production of homegrown renewable fuels, such as biodiesel and renewable diesel, and for the installation of E-85 pumps for consumers to fill up flex-fuel vehicles.
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October 3rd, 2008
Senate Bailout Plan Could Be Boon for Alternative Energies
Written by Joel Bittle, courtesy of GreenBuildingElements.com
Lost in the economic and political circus of the recent weeks was the failure of congress to extend tax credits for alternative energy companies and homeowners who install solar-power systems. Both the Senate and the House wrote similar bills extending the tax credits and lifting the cap for residential solar-power installation. Until the end of this year, homeowners can receive a federal tax credit of 30% of the cost of a solar-power system, capped at $2,000. With that cap lifted, tax credits to homeowners installing solar-power systems increase dramatically, potentially saving homeowners over $10,000 on home solar systems. In addition, companies that produce electricity from wind will get a one year extension on tax credits, companies that produce electricity from solar will get an eight year extension on tax credits, and companies that produce electricity from other types of alternative energy will get a two year extension on tax credits.
Unfortunately, the Senate and House could not agree on how the continuation of tax credits would be paid for. In the past, such cuts were paid for by eliminating tax breaks for hedge fund managers and from tax increases on oil profits. With no progress made by the end of the session, these tax credits would disappear at the beginning of 2009. A coalition of renewable energy industry representatives warned that billions in research and hundreds of thousands of alternative energy jobs would be lost if the tax credits were not renewed. As of last week, this seemed the likely outcome. The Wall Street meltdown and the failure of the House to pass a bailout bill have given the tax credits new life.
The sequence of events that could see the return of alternative energy tax credits is convoluted. The House previously passed a bill that included only the alternative energy tax credits, but the Senate included in their bill other tax breaks for businesses, as well as a one year fix to the Alternative Minimum Tax, which would lower income taxes for millions of Americans. Since the Senate bill did not include ways to pay for the new tax breaks, members of the House refused to support it until a compromise was reached. As time ran out without an extension, the alternative energy tax credits effectively died. Congress was to adjourn for the year.
The halls of Congress, which were supposed to be closed this week, were instead the center of the world economic crisis. The House surprised many in Washington by voting down the first proposed bailout bill. In an effort to appeal to a wider range of voters in the House and Senate, members of the Senate have attached to a new bailout proposal various additions, including the extension of alternative energy tax credits. Though the process is far from over, it seems that the once dead alternative energy tax credits have been given new life with the Senate bailout plan.
Of course the alternative energy tax credits are a tiny part of the new bill, which has the support of the White House and the presidential candidates but faces tough opposition by many in the House and Senate. In addition to their reluctance to bail out Wall Street, House members may not appreciate the Senate’s maneuver. Even if the bill passes the Senate, it will face a tough fight in the House.
What the finished bill could contain:
- Lifting of $2,000 cap for residential solar-power system.
- One year extension of tax credits for companies producing electricity from wind.
- Eight year extension of tax credits for companies producing electricity from solar.
- Two year extension of tax credits for companies producing electricity from other renewable resources.
- Extension of tax credits for purchasing plug-in electric vehicles
- Incentives for the use of biodiesel
It is also worth noting that while previous bills from the House and Senate included versions of the above incentives, they also included provisions supporting oil shale and coal-to-liquid fuels, two carbon-heavy processes that environmentalists are very much against.
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September 20th, 2008
Exciting News on Government Support for Home Solar
There were two pieces of very exciting news this week on the home solar power front. First, the City of Berkeley has voted to support home-owners by providing loans for installing solar power systems. Second, the Senate appears to have reached a deal that would extend the tax credits available for home renewable energy systems that were slated to expire this year. Here’s three green cheers to both of these developments–and a prayer for much more government support of residential renewable energy initiatives!
According to the New York Times, ”The Berkeley City Council moved late Tuesday to eliminate one of the biggest obstacles to making homes more energy-efficient: the upfront cost.
The Council unanimously approved a program to give city-backed loans to property owners who install rooftop solar-power systems. The loans, which are likely to total up to $22,000 apiece, would be paid off over 20 years as part of the owners’ property-tax bills.
While the more conventional approach of government rebates and tax breaks is being tried by the State of California and many other jurisdictions, this is the first time that a special property tax district has been created expressly to help retrofit homes and businesses to reduce electrical use. “ Read the rest of the article here.
And from Grist.org on Sept. 17, “The Senate appears to have reached a deal on a major tax package that includes the extension of tax credits for renewable energy that are set to expire at the end of this year.
Sens. Max Baucus (D-Mont.) and Charles Grassley (R-Iowa), chair and ranking member of the Senate Finance Committee, announced on Tuesday that they have come to agreement on a tax package that would provide $17 billion in renewable energy tax breaks. The bill would also adjust the alternative minimum tax, extend the child tax credit and several business tax cuts, and provide $7 billion in tax relief for those affected by the Midwestern floods and the Gulf Coast hurricanes.
The bill extends the investment tax credit for solar and wind for eight years. It extends the production tax credit (PTC) for wind for one year, and the PTC for solar, biomass, and hydropower for two years. The residential energy-efficient property credit is also extended through 2016, and the definition of the systems that qualify for that credit is expanded to include small wind investment and geothermal heat pumps. There is also a credit for plug-in electric vehicles, and $1.5 billion in tax credits for carbon capture and sequestration (CCS) demonstration projects. (Read a summary of the bill [PDF].)”
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September 5th, 2008
New Green Home Tech Products Coming Soon
There is so much activity in green tech these days that it can be hard to keep up with it, so here are a few concepts that might be coming to a green home near you. Some are still cost prohibitive, but their innovation serves to move us towards more market-ready solutions.
On the Roof
In power generation, solar continues to heat up. New materials and functionality coming down the pike raises hopes about improved energy production and cost effectiveness. One such invention: solar windowpanes. Created by Japanese manufacturer Nihon Telecommunication Systems, the panes integrate photovoltaic cells capable of powering your cell phone or computer. The panes convert about 8% of the sun’s rays to energy, which is then transferred to your device via USB cable. The panes will also reduce the amount of heat that comes through your house, reducing cooling costs. The catch? They cost $1900/square meter, so for now that’s a steep price to pay for calling your mom or emailing your BFF.
One new technology that may be closer to reality is concentrated photovoltaics. Sunrgi’s system uses a magnifying glass to concentrate the suns rays onto a solar cell, converting more than 37% of sunlight to energy. The panels take up much less space than traditional PV, and don’t rely on silicone. But the big sell here – in addition to efficiency – is cost: the company estimates a price of 5 cents per kilowatt hour, making the technology on par with coal and natural gas. If this turns out to be the case, it could really move solar to the next level of adoption.
Some new technologies are being designed for industrial use, but their concepts hold promise for residential application in the future. For example, a new cogeneration system from SolarWall aims to capture the heat lost by traditional photovoltaic systems and use it for heating. Generally, PV systems are only 8-15% efficient at capturing the sun’s energy – the rest is lost. SolarWall’s product combines PV with a solar thermal system that transfers heat into a building’s HVAC system in winter and away from it in summer. This also serves to shorten the payback period by reducing heating costs.
To keep all of that warm air in, new designs for insulation are hitting the market, like the soy-based and water-blown BioBased Insulation. Many homes are under insulated, but sealing them up tight may also mean reducing the quality of your indoor air. Choosing insulation made from non-toxic materials will help to reduce those chemicals in your home.
Around The House
Why mow your lawn, when the solar hybrid Husqvarna Automower can do it for you? Well, maybe because you don’t have $3,000 to spend on a lawnmower, no matter how cool it is. And this one’s cool. It’s automatic (think Roomba) so there’s no pushing involved. It charges initially via AC power, but then uses its solar power to keep on mowin’. Built in sensors keep it from plowing through your vegetable garden, and when the job is done or the battery gets low, it finds its way back to the garage to recharge. It even has an anti-theft alarm. Now that’s cool.
How would you like a washing machine that uses virtually no water? The British company Xeros is working to market a washing machine that does just that. The new technology tumbles thousands of tiny plastic granules with the clothes to clean them, using less than 2% of the water needed for traditional machines. Feeling skeptical? Tests conducted by the company show that everyday stains like coffee and lipstick were removed, and that clothes were as clean and fresh as those that went through a traditional washing. After “washing” the clothes were also quite dry, reducing the need for mechanical drying. Get me Ripley’s on the phone!
There’s another development in the world of washing machines – a Sanyo model that recycles water for use in future loads. Seems like a good idea, assuming that the water can be filtered enough to actually clean the next load. There’s also an Air Wash function that infuses your clothes with bacteria and odor-killing chemicals without the use of any water. Not so sure about that part…
Eco-friendly TVs are also coming down the pike, like Philips’ aptly named Eco TV. It uses less energy by sensing the amount of ambient lighting in the room, then adjusting its backlighting automatically: the darker the room, the less backlighting. Energy saved! It’s also made of lead-free components, with packaging and manuals made from recycled materials. Of course it’s HD, and has a 42” screen, so you’re not sacrificing viewing pleasure. Just don’t forget to plug it into a power strip, flipping the whole thing off when you hit the hay.
In the Garage
Sure, the Prius is great. But word on the street has it that it’s about to get better, as it’s been reported that Toyota will soon be adding solar panels to the roof, providing enough power to run the air conditioner. OK, so maybe that’s not as exciting as the fuel cell technology that we’ve been waiting for, but at least it will be here in the next year or so.
Another advancement for hybrids is the new plug in kits, like those available from A123 Systems. The kits work by adding an extra battery where the spare tire goes, supplementing the drive train for up to 40 miles (no word on where the spare tire goes now, but surely that’s a small detail). What’s not a detail is the price, upwards of $10,000 once it’s all said and done. Makes us wonder why the electric car hasn’t made more of a comeback?
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September 2nd, 2008
Power-purchase Agreements Reduce Cost of Solar
Written by Matt Nauman, reprinted courtesy of The Mercury News
Lynette Bunyard and Joe Pambianco wanted to add solar panels to the roof of their downtown San Jose home. But instead of shelling out $47,000 for the installation, they found a popular alternative financing method for those who want to go green but don’t want to go broke in the process.
The couple used a power-purchase agreement, or PPA in industry lingo, transacted through a San Francisco company called SunRun. The company works with a homeowner and a solar-installation company; it finances the deal; it owns and operates the solar system, and sells the homeowner the electricity being generated on the homeowner’s roof at a fixed rate (13.5 cents per kilowatt hour) for 18 years.
The result? With the PPA, Bunyard and Pambianco paid about $17,000 to SunRun — or $30,000 less than the original installation estimate from installer REC Solar. (State incentives and a federal tax credit would have reduced the $47,000 estimate to about $35,000.) Their monthly power bill from SunRun is just $80 to $100, while their PG&E bill is negligible — as low as $4 one month this spring. So the couple, who once paid between $200 and $300 a month for electricity before installing solar panels, are thrilled with their savings.
“I talk to people about what almost seems impossible when I look at the numbers,” Pambianco said. “I could pay less up front and less overall. That’s magic.”
Pambianco, a sales trainer with Cisco Systems, and Bunyard, a software programmer with VeriSign, spearheaded a community solar program in their downtown San Jose neighborhood earlier this year. They interviewed solar vendors, got bids, considered financing options, and even negotiated a discount for their group. Ultimately, 35 homeowners participated in the effort, and about 75 percent of those used PPAs to pay for their solar systems.
The concept of a PPA for solar power isn’t new. Major retailers such as Macy’s and Wal-Mart, and governmental entities use PPAs to pay to install solar arrays on their roofs. Now consumers are doing it, too. The take-away from Pambianco: “You don’t have to be independently wealthy to consider getting solar.”
Nat Kreamer, president and chief operating officer of SunRun, uses cell phones as an analogy to explain what his company does. Imagine, he said, if cellular companies tried to sell you parts of the infrastructure needed to make a phone call. Nobody wants that, he said, adding that people “just want to talk on the phone.”
The same is true of solar panels. People want to use the electricity they generate, but they don’t want to have to maintain or monitor the solar panel systems on their homes.
“We only get paid for the power we deliver to our customers,” Kreamer said. Typically, he said, homeowners who install solar panels and use a PPA to finance the deal save 30 percent or more each month on their electricity bill. For example, a family with a $240 monthly electricity bill before adding solar panels would have to make only an $80 payment to SunRun and $40 to their utility after adding solar panels. That’s a 50 percent savings — not typical, but frequently achieved, Kreamer said.
Barry Cinnamon, CEO of Akeena Solar, a solar-panel installation company with locations throughout California, said 20 to 25 percent of residential solar buyers in California now use PPAs. And he expects that number to grow. Also, Cinnamon noted, PPAs “definitely appeal to buyers more strapped for cash.” Only something that makes solar drastically cheaper, such as much higher government incentives or other policies, could derail PPAs, he said.
Dean McConkie, who lives in San Jose’s Santa Teresa area, became intrigued by solar panels after a neighbor had them installed, but was taken aback when he heard how much the system cost. Still, he wanted to reduce his huge electric bill, so he looked into PPAs.
In the end, he decided to use a SunRun PPA, then used a home equity loan to prepay his entire solar-panel lease. McConkie, a manufacturing engineer, questioned SunRun about how it could offer solar for a lower price; after all, it seemed too good to be true. He learned the company receives both federal and state rebates, and is eligible for tax credits and other incentives that homeowners can’t obtain.
SunRun, which does most of its deals in California, has few rivals. Helio Micro Utility, a Berkeley start-up, entered the residential solar PPA market this summer. Solar City, a solar-panel installer based in Foster City, offers a leasing program.
Before going solar, McConkie said he was paying about $258 a month for electricity. This summer, his bills have dropped to $20 or $30 a month. “We love it,” he said.
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