by Julie Dengler 05.MAR.10
It’s a bird, it’s a plane — it’s a solar panel?
Residents of many local towns may have recently noticed panels being installed about 15 feet up on residential utility and street-light poles. The panels are five feet by two and half feet, and weigh about 60 pounds. By the end of 2013, 200,000 panels will have been installed throughout New Jersey.

PSE&G sources say that their “investment is the largest pole-attached solar installation in the world … New Jersey has more installed solar capacity than any state except California.” New Jersey estimates its solar power capacity at 40 megawatts of “pole-mounted solar.” Karen Johnson, media spokesperson for the company, estimates one megawatt as enough energy to power approximately 800 homes.
The work is part of a renewable energy program approved for PSE&G by federal regulators last July. It is called Solar 4 All, and is estimated to be a $515 million investment on the part of PSE&G in New Jersey over the next three years. The goal of the program is to move the state closer to meeting an energy master plan requirement of 4.4% (or 80 megawatts) of solar energy use in the electric grid by 2020.
PSE&G says, “The installations will be paid for by PSE&G electric customers. The first year bill impact for the average residential customer will be roughly 10 cents a month.”
Currently, panels are being placed on pre-selected PSE&G-owned utility and street light poles only. Negotiations to share space with Verizon-owned poles are planned.
According to the PSE&G fact sheet on the installation (available at http://www.PSEG.com), poles that qualify for the panel meet several criteria, besides being owned by the utility company. PSE&G is selecting poles that can support the units, face in a southerly direction and have no more than one transformer already on the pole.
The Retrospect caught up with two contracted installers from Riggs Distler and Company, Inc. this week, while they installed a new panel on a pole on Haddon Avenue. Derwin Booker said that the project is keeping his union, and the contractor he works for, busy. While he has been working on installs in Collingswood and Haddon Township, he also worked on the recent installs along Kings Highway in Cherry Hill.
All of the panels are equipped with GPS (Global Positioning Satellite receivers), and each faces exactly 193 degrees south-southwest in order to maximize solar power collection, explained Booker. He said that specific poles were selected from the millions of utility and street poles throughout New Jersey. The panels are equipped with what he called an aggregator, which communicates the collection rates of 10 to 15 panels at a time, back to a main data collection site, so that the rate of energy per cluster of panels can be measured and tracked.
All of the solar energy collected by the panels flows back into the electronic grid as power. Booker commented that the additional energy generated can help in heavy electrical use periods – like summertime, when air conditioners are running — when service is at risk of brown-outs.
Additionally, PSE&G explains, “The installations will generate Solar Renewable Energy Certificates (SRECs). PSE&G will sell any SRECs it generates to offset program costs. PSE&G will sell the power into the PJM (Pennsylvania-Jersey-Maryland) wholesale grid and will receive federal tax credits – which will also be used to offset the cost to customers.”

– Copyright 2010 The Retrospect

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Says New Jersey leading the way

 

WASHINGTON, DC – Testifying before the Senate Committee on Environment and Public Works Committee in Washington today, Governor Jon S. Corzine told the panel the U.S. is on the verge of a “green revolution.” 

 “This revolution will require a new way of thinking about our energy supply, energy demand and our impacts on the global environment,” Governor Corzine said. “It will require the creation of new jobs across virtually every sector of our economy.  From financial institutions that are investing in the next innovation in solar energy technology, to the construction firms that will be modernizing our aging energy infrastructure, to the scientists at Rutgers University who are developing ways to convert algae into a renewable energy fuel. Skill and ingenuity of many kinds will be needed. “

 The Governor said serious challenges must met with serious solutions.  If not met, these challenges will compromise the reliability of the energy supply, burden homes and businesses with spiraling energy prices and threaten the global environment.

 “I am proud to say that New Jersey is at the forefront of leading this green revolution, and meeting the challenges that threaten our economic and environmental security,” added the Governor.  “Through efforts such as our Energy Master Plan, the Regional Greenhouse Gas Initiative, and our efforts under our Global Warming Response Act, we have fashioned responsible, comprehensive and aggressive strategies.”

  New Jersey has set aggressive targets by:

  • reducing greenhouse gas emissions to 1990 levels by 2020
  • reducing energy consumption 20% by 2020.
  • reducing peak demand for electricity by 5,700 megawatts by 2020.
  • having 30% of  the state’s electricity supply come from renewable energy by 2020

 New Jersey has one of the most aggressive Renewable Portfolio Standards in the country that requires electricity suppliers to purchase a specified percentage of their electricity from renewable energy each year.  In addition, New Jersey participates in the Regional Greenhouse Gas Initiative, which is the first mandatory carbon cap and trade program in the nation. 

 Additionally, the State has set aggressive targets for both solar energy and offshore wind development.  In fact, New Jersey is home to more solar energy installations than every other state in the country, except California. New Jersey also is on its way to sitting the first offshore windmills off the Atlantic Coast. 

 “Aggressive actions that states like New Jersey are taking are only the beginning,” the Governor said. “However, if we do not have technology innovation, we will not be able to meet the environmental challenges of the future.”

Our Perspective:

New Jersey is definitely at the forefront of this movement. They are 2nd, only to California, on providing incentives to help underwrite the investment and reducing the ROI.

Would you like to know more? Call 856-857-1230 or email george@hbsadvantage.com.

We specialize in providing the financial structure that will make bring this investment online.

Come join the Green Revolution!  It all starts with you!!

Thursday July 16, 2009

In just a few short years, the Garden State has become the Sunshine State

BY JOE TYRRELL
NEWJERSEYNEWSROOM.COM

As Congress wrestles with national energy policies and gubernatorial candidates tout their plans here, New Jersey officials say the state deserves credit as a leader in promoting solar power.

In just a few years of coordinated efforts, New Jersey has gone from a non-factor to number two among the states in solar installations connected to the power grid. While far behind California, New Jersey currently generates about twice as many solar kilowatt hours as number three Colorado.

While applauding the gains, many in the industry also say the state, like the nation, has fallen well short of performance goals. New Jersey rose to the top of solar charts in a period when there was little competition from other states.

Now, as the federal government begins to pay attention to renewable energy, New Jersey is in the midst of a challenging transition away from an easy to understand program, which gave rebates to install solar power cells.

The new program shifts the focus away from consumers to utility companies and investors by creating a marketplace for renewable energy credits. The concept has its supporters, though many are more hopeful than confident.

Still, at a time when solar businesses believe the technology is on the verge of a belated boom in the United States, recent New Jersey statistics wowed some attendees at a recent industry conference in Philadelphia.

“Making this even more remarkable is that in 2001 New Jersey had only six” solar cell installations connected to the power grid, compared to more than 4,000 today, wrote Bob Haavind of Photovoltaics World.

His report can be viewed here.

During the session, the state’s top regulator, Board of Public Utilities President Jeanne Fox, proclaimed that when it comes to government policy, New Jersey is “the best place to do solar in the country.”

Around the country, many in solar trade groups and businesses credit New Jersey for showing what a small, partly cloudy state can do to grab its place in the sun.

“Obviously what they have been doing has worked,” said Monique Hanis, director of communications for the Solar Energy Industries Association in Washington, D.C.

“What makes New Jersey stand out is the specific language in the state’s energy master plan, calling for the generation of 2.1 percent of its electricity to be coming from solar in 2021,” said Neal Lurie, director of marketing and communications for the American Solar Energy Society of Boulder, Colo.

Closer to home, though, reactions are more muted.

The rebate program “came out of advocacy” by solar power proponents, “it was not a BPU idea,” said Delores Phillips, the society’s Mid-Atlantic executive director.

Even with improving technology and rising costs for fossil fuels, the cost of solar power remains higher than those dirtier energy sources. Solar advocates maintain other forms of energy benefit directly and indirectly from government subsidies, such as state funds to decommission nuclear facilities, or cleanups of coal ash landfills.

New Jersey’s small spurt of solar power materialized during a BPU rebate program that turned out to be too popular for the board’s limited financial commitment. The initial surge in applications eventually bogged down as the release of funds slowed.

So the board decided on an innovative approach, creating financial instruments, solar renewable energy credits, or SRECs. The idea is that investors buy credits from solar producers, each pegged to 1 megawatt of power. The investors help producers expand, while reaping benefits from energy sales to utilities.

“We’re all looking to see how it’s going to make out,” Hanis said.

Compared to the rebates, grants or tax credits offered elsewhere, New Jersey’s approach is more ambitious but “still a little bit vague for some people,” she said.

“It’s not really tried and tested,” Phillips said, adding it requires two inter-related factors to success.

To be attractive to investors, SRECs need to be based on reliable values, meaning utilities must contract for long-term power purchases, she said. To serve those utilities, the investments must finance enough power to meet their requirements for more clean power, she said.

Judged on that basis, “New Jersey’s program is good, but only half as good as they said it was going to be,” said Edward O’Brien, a partner in McConnell Energy Solutions of Wilmington, De. Last year, instead of a projected 90 megawatts of solar power, the state was at 45, the result of continuing uncertainty over credit values, he said.

The theory is simple, O’Brien said. While not completely supplanting the mom-and-pop approach to solar panels, securitizing the solar marketplace should put it on the same funding as other major energy sources.

“Why are you out putting solar panels up on your house, which is hard to do, instead of buying five kilowatts worth of solar power from some producer?” O’Brien said.

In practice, though, the SREC system “has not been fully thought out,” he said.

Added to the current recession, investors are cautious because of America’s patchwork of energy policies and regulations, which vary from state to state, O’Brien said. States have not helped by altering programs, he said.

“Every state is different, and every state has a bait-and-switch,” O’Brien said.

Still, he is optimistic that New Jersey will regain its momentum, and others in the field view the problems as a hiccough in the growth of solar power.

In the short-run, “there could be a shake-out” during the transition from rebates, said Rick Brooke of Jersey Solar in Hopewell. But 25 years in the business and a number of false dawns, this opportunity looks golden.

As long as the state SREC market allows small systems to participate, people who installed solar panels on the roofs of their homes or businesses still have a chance to participate, Brooke said.

Moreover, people in the industry are expecting good things from the energy bill making its way through Congress. Nearby states have launched incentive programs, whether inspired by New Jersey or California, which has roughly two-thirds of the nation’s grid-connected solar systems, Brooke said.

“It’s a good time to be in the business,” he said. “The state is committed to it, they have goals. People are moving ahead with it. Before, the interest came and went, but now it’s here.”

Rebates and SRECs are not the only way to support the growth of solar power. This month, Gov. Jon Corzine and Republican challenger Chris Christie each highlighted their support for renewable energy.

Democrat Corzine was able to announce the availability $20 million in federal grants for projects at public institutions in the state. Christie promised to create a new agency to promote clean energy technology and jobs, and would remove those functions from the BPU.

The Republican’s approach seemingly echoes Phillips’ complaints about the board’s “antiquated” procedures and primary purpose to regulate rates. But she said members of her association “were very underwhelmed by Chris Christie’s plan,” because it looks at the big picture and avoids the nitty-gritty.

While the Corzine Administration has set laudable goals for increasing clean energy, Phillips said most of the growth in solar power can be traced to his predecessor, former Gov. Jim McGreevey. There’s been “some stagnation” in state efforts since then, she said.

“Everybody likes to talk about clean energy job creation, but nobody explains how they’re going to do it,” she said.

Whether the New Jersey approach catches on remains uncertain. Around the nation, some communities are coming up with their own answers. Many solar advocates are looking beyond America to more successful programs abroad.

For more information on state incentives for renewable energy, visit njcleanenergy.com.

Our Perspective:

NJ has made great strides to join the alternative energy evolution. Not to say it is perfect, but for the first time people can see an acceleraed return on their investment that makes sense.

Rebates for systems under 5okw and the REC program has allowed funding to help underwrite these investments. Add the Federal incentives of a 30% tax credit and accelerated depreciation and the market is positioned to take off.

Would you like to know more? Contact us 856-857-1230 or email george@hbsadvantage.com.

We can provide an overview of your return on investment and help to develop the opportunity and make it become a reality.

Visit us on the web www.hutchinsonbusinesssolutions.com

ANGELA CHARLTON | May 28, 2009 05:01 PM EST | AP

PARIS — The top U.S. environment official says it’s time for the United States to shed its energy-wasting image and lead the world race for cleaner power sources instead.

After several years with a relatively low profile under President George W. Bush, the U.S. Environmental Protection Agency “is back on the job,” EPA Administrator Lisa Jackson told The Associated Press on Thursday during a trip to Paris.

What the EPA does domestically this year will be watched closely overseas. Nations worldwide are working toward a major meeting in Copenhagen in December aimed at producing a new global climate pact. The U.S. position on curbing its own pollution and helping poor countries adapt to global warming is seen as key to any new pact.

Jackson was in Paris for international talks on how rich governments can include global climate concerns in overall development aid.

She dismissed worries that economic downturn was cutting into aid commitments or investment in new energy resources. She said the United States should take the lead on clean energy technology, recession or no.

“We have to get in the race now _ and win it,” she said. “I don’t expect a moving backwards because of recession.”

At climate talks in Paris earlier this week, European environment ministers welcomed greater U.S. commitment to environmental issues under the Obama administration _ but said it still wasn’t aiming high enough in its targets for cutting U.S. emissions.

Jackson said a shift in the American mindset is only beginning.

Talking about energy efficiency and saying companies should pay to pollute _ “that’s a revolutionary message for our country,” she said.

For a long time, she said, “People didn’t even expect the EPA to show up” at events, much less set policies that could be seen as examples for the rest of the world.

“Now it seems like every day we’re rolling back or reconsidering a Bush era policy on clean air,” she said.

She said it was time for the United States to take a more active role in limiting chemical pollutants, after falling behind Europe in that domain.

The U.S. also has lessons to learn from countries such as the Netherlands, she said, after visiting its low-lying, flood-prone lands to study ways cities like her native New Orleans can better manage water.

Our Perspective:

It is good to hear the administration making positive comments about our energy’s future. Alternative energy is a growth business and the correct path for insuring our future energy indepenence.

Let us know your thoughts? You may leave a comment or email george@hbsadvantage.com

Would you like to know more about the financial opportunities that drive this investment. Feel free to contct us.

Monday, April 13, 2009

BY LISA CORYELL
Special to the Times

EWING — It may have been God who said “Let there be light,” but it was a couple of business- savvy local church leaders who found a way to turn that divine gift into a money-saving venture for their congregation.

Grace Cathedral Fellowship Ministries church on Calhoun Street has plugged into the sun with a $600,000 solar energy system expected to cut church energy costs in half.

“Parishioners are strained by the economy and churches have cut costs where they can,” said Ronald Cobbs, chairman deacon of the church. “God will do a lot for us, but we have to some things our selves. Churches have to have good business sense.”

Installed by Trinity Solar of Freehold, the 95.13 kilowatt system is expected to produce approximately 120,000 kilowatt hours per year for the church — the largest solar energy system on any church in Mercer County.

The system is expected to generate enough energy to reduce church utility costs by about $40,000 a year. Church leaders say they expect to reap another $70,000 each year by selling Renewable Energy Credits to electricity providers in the state.

“We believe within six years we’ll have this system paid for,” said Bishop Jerome Wilcox, church pastor.

The giant solar panels needed to harness the sun’s energy sit cheek-to-jowl on the rooftops of the sprawling church sanctuary and an adjacent fellowship hall. A massive “inverter” on the north- side of the sanctuary changes the energy from DC power to AC power.

“We use what we need and what we don’t need goes back to the grid for PSE&G to use,” Cobbs said.

While the financial savings are a blessing, the ecological impact is divine, Cobbs said.

“We see the significance of going green,” he said. “If we can take the energy from the sun its much better for the environment.”

Ewing Mayor Jack Ball congratulated Wilcox on the completion of the new system, which is expected to be up and running in the next few days.

“Bishop Wilcox has done some wonderful work in this community through the years and the installation of this clean, environmentally- friendly energy system demonstrates his ongoing commitment to his fellowship and the community at large,” Ball said….

Our perspective:

Bravo! We are currently speaking to 3 different churches regarding the possibility of installing solar.

Maybe God is leading the charge afterall!!!

Should you be intersted in learning more about your own solar solution or solar possibility, give us a call. 856-857-1230.

You mail also email  george@hbsadvantage.com 

We can show you how to structure your solar investment and take advantage of all the federal and state incentives.

As reported in Huffington Green

BEIJING (AFP) – China has more than tripled its target for wind power capacity to 100 gigawatts by 2020, likely making it the world’s fastest growing market for wind energy technology, state press said.

China is aiming for an annual wind power growth rate of 20 percent for the foreseeable future, Feng Junshi, an official with the National Energy Administration, told a Beijing conference, according to the China Daily.

The new target for 2020 is up from a goal of 30 gigawatts announced by the government 18 months ago, the report said.

China currently has 12 gigawatts of installed wind power, but that is set to grow to 20 gigawatts by next year, the newspaper said.

“China is powering ahead with no visible signs of slow down,” the report quoted Steve Sawyer of the Brussels-based Global Wind Energy Council as saying.

“They intend to become the largest market in the world, very clearly, and they probably will unless things take off in the US again in the relatively near term.”

China is currently the fourth largest producer of wind power after the United States, Germany and Spain.

In addition to vast wind power facilities in its arid north and northwest regions, China is also actively building wind farms off its eastern and southern coasts.

The country is the world’s second largest energy producer, but is struggling to wean itself off its dependency on coal, which is highly polluting and blamed for emitting the greenhouse gases that cause global warming.

Our Perspective:

This is good news. China has been in an expansion mode. I have friends who go there for business and they say that construction is booming.

I am glad they are looking to alternative energy to help support this growth. Should they have relied on fossil energy solutions, they would have had 1 foot in the grave.

There is no one solution that will address our growing energy needs. There will be a combination of viable solutions, when coordinated together, will power America’s future.

Let us know your thoughts?

You may leave a comment or email george@hbsadvantage.com

 

Daniel C. Esty

Posted April 20, 2009 | 03:50 PM (EST)  As reported in Huffington Post Green

Talk has begun to turn to the new economy that will emerge from the present collapse. General Electric CEO Jeff Immelt has suggested that the current crisis is not just a recession but a fundamental “reset” of how business gets done. And Time magazine has taken up this theme with a reset cover story. But there has been little discussion of exactly what changes – in principles and practices — should be made so that we rebuild our economy on firmer foundations. As we celebrate Earth Day this week, it is a good time to commit to “sustainability” as a centerpiece of a revitalized regulatory system.

For the past three decades, debate has raged over whether and how to deregulate. But while markets offer the prospect of promoting innovation, growth, and prosperity, few now believe that capitalism is self-correcting or that the private sector needs only minimal supervision. From the demise of Lehman Brothers and AIG to the skullduggery of Bernie Madoff and Allan Stanford, the signs of inadequate regulation and market failure surround us.

Two particular forms of market failure underlie the meltdown of the past year and make sustainability the right touchstone for our regulatory reset efforts:

• Externalized costs and risks
• Incomplete information

Both of these problems require that we rethink our approach to regulation — and re-establish the fundamentals of our economy on a more sustainable basis. And note that this principle should apply broadly, not just in the financial arena.

We need regulations which ensure that companies cannot structure their operations so that any upside gains accrue to their owners (or worse yet their managers), while risks or costs get shifted onto society as a whole. In the banking sector, rules against over-leveraging are urgently required. The recently released Turner Report in the UK outlines the first steps in this direction that should be taken. More generally, financial reporting rules must be designed to expose hidden risks and externalized costs.

We should likewise insist that companies which send emissions up a smokestack or out an effluent pipe cease their pollution or pay for the harm inflicted on the community. In our “reset” world, economic success cannot come at the price of harms imposed on the public in the form of contaminated air and water or risk of climate change. Thus while we lay the foundation for a more sustainable economy, let’s similarly adopt rules that provide for a sustainable environmental future. This will require overhauling the traditional approach to environmental regulation which countenances way too much in the way of externalities by offering “permits” up to a certain level of harm.

President Obama’s call for a price on carbon dioxide emissions represents a good first step in the “no externalities” direction. But let’s broaden the push and make polluters pay for all the harm they cause. If companies — and each one of us in our personal lives — had to pay for our waste and pollution, behavior would change. Putting a price on harm-causing creates incentives for care and conservation — efficiency and resource productivity.

More importantly, these price signals will drive a market response. Companies that are positioned to help others reduce their waste or cut their emissions will find customers eager for their goods and services. And where no easy solutions are available, harm charges will motivate “cleantech” innovation as inventors and entrepreneurs recognize the prospect of making money by solving environmental problems.

In parallel with a commitment to internalizing externalities, we must adopt transparency as a watchword. Market capitalism does not work without adequate information about economic actors. This reality has been understood in theory, but now needs to be advanced in practice. Government has a critical role to play in establishing the terms of disclosure about companies, markets, products, investment vehicles, and more. Public officials must also be empowered to ensure that disclosures are complete and accurate.

Well-designed reporting rules make it easier to spot externalized costs or risks and harder to hide malfeasance. Widely available metrics also facilitate benchmarking across companies, which offers a mechanism for assessing performance, highlighting leaders and laggards, and spurring competitive pressures that drive all toward better results. Studying the leaders offers an important way to identify best practices in everything from corporate strategy to pollution control. Likewise, outliers (such as those who make 10% returns year after year without fail) can be isolated for special review and scrutiny.

Such transparency would make it easier to refine our compensation systems to reward superior performance and real value creation. Carefully constructed disclosure rules could help, on the other hand, to unmask mere financial engineering, which should not be credited with outsized rewards.

There is a great deal of work to be done to re-establish prosperity across our country and the world. Smart regulation can channel corporate behavior and individual effort toward sustainable economic growth — that is durable because it rests on solid underpinnings not hidden risks or externalized costs.

Daniel C. Esty is the Hillhouse Professor at Yale University with appointments in both the Yale Law School and the Yale School of Forestry and Environmental Studies. He is the co-author (with Andrew Winston) of the prize-winning book, Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage (just released in a revised and updated edition published by John Wiley). A former Deputy Assistant Administrator at the US Environmental Protection Agency, Professor Esty advised the Obama Campaign on energy and environmental issues and served on the Obama Transition Team.

by Brian T. Murray/The Star-Ledger

Sunday April 05, 2009, 7:12 AM

The relicensing last week of the Oyster Creek Nuclear Generating Station, the nation’s oldest nuclear power plant, guarantees that nuclear energy is here to stay in New Jersey, for at least a few more decades, even as state officials continue to push alternative sources of energy.

The Garden State draws about 53 percent of its electricity from four nuclear plants — a reliance on nuclear energy far above the national average of about 20 percent, according to the U.S. Department of Energy. Along with Oyster Creek in Lacey Township, which was cleared by federal regulators for a new license on Thursday to operate another 20 years, the state’s electricity flows from the Hope Creek and the twin Salem Creek reactors in Salem County.

 

“Right now, one of every two households in New Jersey gets its electricity from nuclear energy. If you take nuclear energy off line, where will the energy come from?” said David Benson, a spokesman for Oyster Creek.

Gov. Jon Corzine has vowed to have 30 percent of the state’s electricity produced through wind and solar power by 2020 — an initiative that even his supporters call ambitious.

Renewable sources, including solar, wind and landfill gases, currently provide only 3 percent of New Jersey’s electrical energy. Coal-burning plants generate 20 percent, natural gas generates 21 percent and petroleum plants generate 16 percent.

Even critics acknowledge that New Jersey’s nukes are not about to be replaced.

“We know it will take at least 20 years, maybe longer, for us to generate enough power to replace them. We would like it to be quicker, but we know they are not going away anytime soon. … Our issue is, we need to find cleaner, safer, more reliable sources,” said Jeff Tittel of the New Jersey Sierra Club.

Sierra and the New Jersey Public Interest Research Group allege Oyster Creek is unsafe because of corrosion found in the late 1980s in the drywell liner or shell that encases the reactor. Federal regulators contend the problem has been repaired and the plant is safe.

Regardless, NJPIRG contends renewable power is safer — and that all four nuclear plants could be replaced by 2,139 windmills.

“That being said, efficiency improves every year in wind turbine technology, unlike nuclear generation, and over the next decade will increase dramatically, making it highly unlikely that we would need anywhere near that number,” said Jacob Koetsier of NJPIRG.

“In 2005, Congress passed a subsidy bill that included $5.7 billion in operating subsidies for the nuclear industry and $2 billion to insure companies for costs in delays in getting licenses for six new reactors. If that kind of money had been switched to renewable energy back then, we’d already be up and running,” he added.

DIFFERENCE OF OPINION

But windmills require miles of space, and plans to begin erecting about 300 of them off the Jersey Shore have divided even environmental groups, with some organizations fearing a negative impact on marine life. The potential costs pose a greater obstacle.

“The Department of Energy’s own numbers estimate the cost of offshore wind will be more than twice that of coal, twice that of advanced nuclear, with or without government subsidies. There is reason you don’t have a lot of wind power — it is more expensive,” said Dan Kish, senior vice president for policy at the Institute for Energy Research, a Washington, D.C. research group that supports free-market models for energy production.

The statistics were cited as projected consumer costs in the Department of Energy’s Annual Energy Outlook for 2009. While market prices on energy may fluctuate, Kish said windmill power also faces the added financial complexities of bringing the new electrical power into the nation’s existing power grid — the national system by which power is delivered to households and businesses.

The problem is being realized in Texas, which is leading the nation in developing renewable energy sources, but must expand its grid to deliver it.

“To anybody who believes New Jersey is going to be 30 percent on solar panels and wind power by 2020, I’ve got a bridge to sell you. It’s just not going to happen,” Kish said.

Additionally, the wind does not always blow and the sun does not always shine. That raises concerns about what is known in the energy industry as “baseload” — the ability to constantly generate electrical energy, as do nuclear and coal plants.

“But that is more of an issue for land-based wind-turbines,” Tittel countered. “The further offshore you go, which New Jersey plans to do, the steadier the wind. The efficiency increases 60 percent offshore, as opposed to 30 percent on land.”

While building windmills may have obstacles, so does a future reliance on nuclear energy, experts say.

The nation’s 104 existing plants are operating at about 90 percent, and no new ones are being built largely because federal officials have not determined where to bury the radioactive waste and there is a 30-year-old federal prohibition against reusing it.

There also is the growing price-tag on building new reactors — $7.5 million for a 1,000 megawatt facility such as the ones in Hope Creek and Salem Creek, according to Federal Energy Regulatory Commission figures released last year.

Written by Seth Borenstein  AP

WASHINGTON — A new scientific study finds that the absolute worst of global warming can still be avoided if the entire world cuts emission of greenhouse gases the way President Barack Obama and Europe want.

A computer simulation by the National Center for Atmospheric Research in Boulder, Colo., looked at what would happen by the end of the century if greenhouse gas levels were cut by 70 percent. The result: The world would still be a warmer world but by about 2 degrees instead of 4 degrees. Arctic sea ice would shrink but not disappear, and sea level would rise less.

About half the temperature increases and changes in droughts and floods can be avoided compared to a scenario without emission cuts, according to the study, which will be published next week in the journal Geophysical Research Letters. Future heat waves would be 55 percent less intense. Thawing of permafrost in the far north would also be reduced.

The study is one of the first to use computer models to quantify how much of the effects global warming can be avoided, compared to a world if nothing is done about the problem.

While the study looked at what would happen with dramatic cuts in future pollution, history has shown that reductions are much easier to talk about than to make. The controversial 1997 Kyoto Protocol called for industrialized countries to cut emissions but since then levels worldwide have gone up 25 percent. In the U.S., where emissions are up 6 percent in the last decade, Congress is fiercely arguing over a plan to reduce pollution.

“If we follow on the path that Obama has outlined of cutting emissions by 70 or 80 percent and the rest of the world does it, then we can make a big difference on the climate by the end of the century,” climate scientist and study chief author Warren Washington told The Associated Press.

But if the United States and Europe cut back on carbon dioxide and China, India and other developing countries do not, then the world is heading toward a harsher hotter future, not the one the study shows, Washington said.

The study mapped areas that would benefit the most by emission cuts, comparing what would happen with less carbon dioxide pollution and what would happen if greenhouse gas continue to grow. The difference between the two scenarios is starkest for temperatures in Alaska and the mountain west, which would see temperatures rise a couple degrees less with emission cuts. Reduced carbon dioxide would also significantly lessen predicted future droughts on the Pacific coast and flooding in the Northeast.

Much of Europe, Russia, China and Australia would see the biggest temperature benefits from reductions in greenhouse gas pollution, while the Mediterranean, Caribbean and North Africa region would benefit the most in predicted changes in rainfall from less global warming.

If the world cuts back on fossil fuels, “it isn’t going to be as bad,” Washington said.

Last DSIRE Review: 02/19/2009  

Incentive Type: Federal Grant Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Solar Hybrid Lighting, Hydrokinetic, Tidal Energy, Wave Energy, Ocean Thermal, Microturbines
Applicable Sectors: Commercial, Industrial, Agricultural
Amount: 30% of property that is part of a qualified facility, qualified fuel cell property, solar property, or qualified small wind property
10% of all other property
Max. Limit: $1,500 per 0.5 kW for qualified fuel cell property
$200 per kW for qualified microturbine property
50 MW for CHP property, with limitations for large systems
Terms: Grant applications must be submitted by 10/1/2011. Payment of grant will be made within 60 days of the grant application date or the date property is placed in service, whichever is later.
Website: http://www.treas.gov/recovery/
Authority 1: H.R. 1: Div. B, Sec. 1104 & 1603 (The American Recovery and Reinvestment Act of 2009)
Date Enacted: 2/17/2009
Effective Date: 1/1/2009

 


Summary:

  Note: The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the federal business energy investment tax credit (ITC) to take this credit or to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The new law also allows taxpayers eligible for the renewable electricity production tax credit (PTC) to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. (It does not allow taxpayers eligible for the residential renewable energy tax credit to receive a grant instead of taking this credit.) Taxpayers may not use more than one of these incentives. If an entity receives a grant and has previously received the business ITC or the PTC, the credit will be recaptured through an increase in taxes during the year in which the grant is awarded by the amount of the credit taken in previous years. Receiving a credit in the past does not reduce the amount of the grant. The grant is not included in the gross income of the taxpayer.  
 
The American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009, created a renewable energy grant program that will be administered by the U.S. Department of Treasury. This cash grant may be taken in lieu of the federal business energy investment tax credit (ITC).  
 
Grants are available to eligible property* placed in service in 2009 or 2010, or placed in service by the specified credit termination date,** if construction began in 2009 or 2010:

  • Solar. The grant is equal to 30% of the basis of the property for solar energy. Eligible solar-energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Passive solar systems and solar pool-heating systems are not eligible. Hybrid solar-lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible.  
     
  • Fuel Cells. The grant is equal to 30% of the basis of the property for fuel cells. The grant for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) in capacity. Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher.  
     
  • Small Wind Turbines. The grant is equal to 30% of the basis of the property for small wind turbines. Eligible small wind property includes wind turbines up to 100 kW in capacity.  
     
  • Qualified Facilities. The grant is equal to 30% of the basis of the property for qualified facilities. Qualified facilities include wind energy facilities, closed-loop biomass facilities, open-loop biomass facilities, geothermal energy facilities, landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and hydrokinetic renewable energy facilities.  
     
  • Geothermal Heat Pumps. The grant is equal to 10% of the basis of the property for geothermal heat pumps.  
     
  • Microturbines. The grant is equal to 10% of the basis of the property for microturbines. The grant for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) in capacity that have an electricity-only generation efficiency of 26% or higher.  
     
  • Combined Heat and Power (CHP). The grant is equal to 10% of the basis of the property for CHP. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system’s energy source, but the grant may be reduced for less-efficient systems.

It is important to note that only tax-paying entities are eligible for this grant. Federal, state and local government bodies, non-profits, qualified energy tax credit bond lenders, and cooperative electric companies are not eligible to receive this grant. Partners or pass-thru entities for the organizations described above are also not eligible to receive this grant. Grant applications must be submitted by October 1, 2011. The U.S. Treasury Department will make payment of the grant within 60 days of the grant application date or the date the property is placed in service, whichever is later.  
 
The U.S. Department of Treasury has not yet released guidelines and is not accepting applications currently for this grant. It is expected that guidelines will be released in late Spring 2009.  
 
 
*Definitions of eligible property types and renewable technologies can be found in the U.S. Code, Title 26, § 45 and § 48.  
 
**Credit termination date of January 1, 2013 for wind; January 1, 2014 for closed-loop biomass, open-loop biomass, landfill gas, trash, qualified hydropower, marine and hydrokinetic; January 1, 2017 for fuel cells, small wind, solar, geothermal, microturbines, CHP and geothermal heat pumps.