The California-based solar leasing firm Sungevity announced a deal on Monday with home improvement giant Lowe’s that could make obtaining a personalized estimate for installing solar panels a push-button affair at Lowe’s outlets.

The deal gives Lowe’s just under a 20 percent stake in Sungevity, according to a solar industry source, though neither company would discuss specific dollar figures.

Under the agreement, scheduled to launch in 30 Lowe’s stores in California in July, customers will be able to access kiosks equipped with Sugevity’s iQuote system, a Web-based application that allows homeowners to simply enter their address and receive a firm installation estimate within 24 hours, eliminating the expense of an on-site visit.

The system combines aerial and satellite image analysis with research by Sungevity engineers at the company’s Oakland headquarters to assess the geometry of a home’s rooftop, its disposition to the sun at different times of day and year and any potential occlusions presented by nearby vegetation or built objects.

In addition to an installation estimate, customers can also get a visual rendering of their home with solar panels installed. And if interested parties provide information on typical power usage, such as an account number or past electric bills, the iQuote system can estimate potential savings expected from using the equipment.

The iQuote system can already be used online, and the company’s founder, Danny Kennedy, estimated that roughly 25,000 users had taken it for a test drive, though only about 1,500 of those had been converted to sales.

The deal with Lowe’s, Kennedy said, could help Sungevity — a petite player in the solar leasing market compared to bigger players like SolarCity of San Mateo, Calif., or San Francisco-based SunRun, which raised $200 million in financing earlier this month — significantly expand its reach.

“This will help us to get in front of thousands more customers, in front of middle America,” Kennedy told The Huffington Post. “We’ll be taking it to the ‘burbs, as it were.”

Despite tough economic times and often uncertain economic incentives, a number of analyses predict a boom year for solar power in 2011.

A report published in December by IDC Energy Insights, a market research firm based in Framingham, Mass., estimated following a healthy 2010, the solar market in North America could well see two gigawatts of solar power installations this year.

Jay Holman, the report’s lead analyst, told The Huffington Post that those numbers had been revised somewhat, but that 2011 was still expected to bring in 1.6 gigawatts of new solar installations, roughly double the 2010 total.

Part of the reason for America’s interest in solar energy may be a decline in the robust incentives the once drew a deluge of equipment and installations to the European market, particularly countries like Germany, the Czech Republic and Italy, Holman said. Those countries have begun to scale back their subsidies, forcing companies to look to other markets.

Meanwhile, federal tax incentives, including a 30 percent tax cash grant extended through the end of 2011, have helped keep solar alive. Several states have healthy incentives in place as well, including the eight states where the Sungevity/Lowes deal will eventually be rolled out: Arizona, California, Colorado, Delaware, Maryland, Massachusetts, New Jersey and New York.

Holman also said solar leasing companies like Sungevity, SunRun and Solar City, which retain ownership of the equipment while reducing or, in many cases, eliminating the up-front installation costs, also help drive the expansion of solar power.

“Obviously, we’re obsessed with being customer-focused,” said Kennedy. “We hope that this deal will make going solar as easy as shopping for light bulbs.”

As reported in NJ BIZ

The Garden State’s status as a solar-energy leader will get a major boost Wednesday, when officials break ground on what will be the largest solar energy farm in the Northeast.

Con Edison Development, a subsidiary of Consolidated Edison Inc., and Texas-based Panda Power Funds plan to build a 20-megawatt solar farm on a 100-acre site in Pilesgrove. The installation, expected to go online in May 2011, will feature 71,400 solar panels and cost between $85 million and $90 million.

solar

A rendering of the solar farm, which will be the largest in the Northeast.

Con Edison Development and Panda announced their intent to partner on solar projects in April.

Steve Tessum, vice president of east region management at Panda and manager of the Pilesgrove project, said South Jersey was chosen as the site in part because of the state’s support of solar energy.

“We did look at other states,” Tessum said. “Quite frankly, the regulatory climate in New Jersey is friendly to somebody who wants to own and develop a solar-power utility.”

The farm will be connected directly to the electrical grid via the Atlantic City Electric distribution system, said Mark Noyes, vice president of Con Edison Development.

Noyes said the arrangement with Panda is a 50-50 partnership: Panda is taking the lead in development, Con Edison will take the lead in operations and energy management, and construction will be split.

“The reason it makes sense to partner with Panda is, much like our background, they’re developers and they know how to develop projects, whether natural gas and oil, wind, solar,” Noyes said. “The development expertise is really what drives the development.”

Noyes said the property had originally been slated for the development of 67 homes, each with its own septic tank.

“The town opposed that type of taxing, from an environmental and economic standpoint,” Noyes said. “The construction of those homes never got through the planning board, so we were able to go in and acquire that land from the local player for this solar farm.”

Tessum said the solar farm doesn’t require any municipal infrastructure development, as the housing plot would have.

Con Edison Development said the installation is expected to generate enough electricity to power 5,100 homes.

E-mail Jared Kaltwasser at jkaltwasser@njbiz.com

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

As reported in Courier Post

DURANGO, COLO. — The sun had just crested the distant ridge of the Rocky Mountains, but already it was producing enough power for the electric meter on the side of the Smiley Building to spin backward.

For the Shaw brothers, who converted the downtown arts building and community center into a miniature solar power plant two years ago, each reverse rotation subtracts from their monthly electric bill. It also means the building at that moment is producing more electricity from the sun than it needs.

 “Backward is good,” said John Shaw, who now runs Shaw Solar and Energy Conservation, a local solar installation company.

 Good for whom? 

As La Plata County in southwestern Colorado looks to shift to cleaner sources of energy, solar is becoming the power source of choice even though it still produces only a small fraction of the region’s electricity. It’s being nudged along by tax credits and rebates, a growing concern about the gases heating up the planet, and the region’s plentiful sunshine.

 The natural gas industry, which produces more gas here than nearly every other county in Colorado, has been relegated to the shadows.

 Tougher state environmental regulations and lower natural gas prices have slowed many new drilling permits. As a result, production — and the jobs that come with it — have leveled off.

With the county and city drawing up plans to reduce the emissions blamed for global warming and Congress weighing the first mandatory limits, the industry once again finds itself on the losing side of the debate.

 A recent greenhouse-gas inventory of La Plata County found that the thousands of natural gas pumps and processing plants dotting the landscape are the single largest source of heat-trapping pollution locally.

 That has the industry bracing for a hit on two fronts if federal legislation passes.

 First, it will have to reduce emissions from its production equipment to meet pollution limits, which will drive up costs. Second, as the county’s largest consumer of electricity, gas companies probably will see energy bills rise as the local power cooperative is forced to cut gases released from its coal-fired power plants or purchase credits from other companies that reduce emissions.

“Being able to put solar systems on homes is great, you take something off the grid, it is as good as conserving,” said Christi Zeller, the executive director of the La Plata Energy Council, a trade group representing about two dozen companies that produce the methane gas trapped within coal buried underground.

“But the reality is we still need natural gas, so embrace our industry like you are embracing wind, solar and the renewables,” she said.

It’s a refrain echoed on the national level, where the industry, displeased with the climate bill passed by the House this summer, is trying to raise its profile as the Senate works on its version of the legislation.

In March, about two dozen of the largest independent gas producers started America’s Natural Gas Alliance. In ads in major publications in 32 states, the group has pressed the case that natural gas is a cleaner-burning alternative to coal and can help bridge the transition from fossil fuels to pollution-free sources such as wind and solar.

 “Every industry thinks every other industry is getting all the breaks. All of us are concerned that we are not getting any consideration at all from people claiming they are trying to reduce the carbon footprint,” said Bob Zahradnik, the operating director for the Southern Ute tribe’s business arm, which includes the tribes’ gas and oil production companies. None is in the alliance.

 Politicians from energy-diverse states such as Colorado are trying to avoid getting caught in the middle. They’re working to make sure that the final bill doesn’t favor some types of energy produced back home over others.

 At a town hall meeting in Durango in late August, Sen. Mark Udall, who described himself as one of the biggest proponents of renewable energy, assured the crowd that natural gas wouldn’t be forgotten.

“Renewables are our future — but we also need to continue to invest in natural gas,” said Udall, D-Colo.

 Much more than energy is at stake. Local and state governments across the country also depend on taxes paid by natural gas companies to fund schools, repair roads and pay other bills.

In La Plata County alone, the industry is responsible for hundreds of jobs and pays for more than half of the property taxes. In addition, about 6,000 residents who own the mineral rights beneath their property get a monthly royalty check from the companies harvesting oil and gas.

 “Solar cannot do that. Wind cannot do that,” said Zeller, whose mother is one of the royalty recipients. In July, she received a check for $458.92, far less than the $1,787.30 she was paid the same month last year, when natural gas prices were much higher.

 Solar, by contrast, costs money.

Earlier this year, the city of Durango scaled back the amount of green power it was purchasing from the local electric cooperative because of the price. The additional $65,000 it was paying for power helped the cooperative, which is largely reliant on coal, to invest in solar power and other renewables.

 “It is a premium. It is an additional cost,” said Greg Caton, the assistant city manager.

Instead, the city decided to use the money to develop its own solar projects at its water treatment plant and public swimming pool. The effort will reduce the amount of power it gets from sources that contribute to global warming and make the city eligible for a $3,000 rebate from the La Plata Electric Association.

Yes, the power company will pay the city to use less of its power. That’s because the solar will count toward a state mandate to boost renewable energy production.

“In the typical business model, it doesn’t work,” said Greg Munro, the cooperative’s executive director. “Why would I give rebates to somebody buying someone else’s shoes?”

The same upfront costs have prevented homeowners from jumping on the solar bandwagon despite the tax credits, rebates and lower electricity bills.

 Most of Shaw’s customers can’t afford to install enough solar to cover 100 percent of their homes’ electricity needs, which is one reason why solar supplies just a fraction of the power the county needs.

 The higher fossil-fuel prices that could come with climate legislation would make it more competitive.

 “You can’t drive an industry on people doing the right thing. The best thing for this country is if gas were $10 a gallon,” said Shaw, as he watched two of his three full-time workers install the last solar panels on a barn outside town.

 The private residence, nestled in a remote canyon, probably will produce more power from the sun than it will use, causing its meter to spin in reverse like the Smiley Building’s. The cost, however, is steep: more than $500,000.

ESolar is here

August 10, 2009

idealab

Gina Ferazzi / Los Angeles Times
Idealab’s Bill Gross is reflected in a solar tracking mirror on the firm’s rooftop in Pasadena. His ESolar opens an innovative energy facility today in Lancaster.
Entrepreneur Bill Gross’ Pasadena firm has had its ups and downs. But it is energized since turning to clean tech, including ESolar, which is opening an innovative solar power facility in Lancaster.
By Alana Semuels  As reported in LA Times
August 5, 2009

The hundreds of glass mirrors break the dusty field in Lancaster, a sea of silver in a landscape of brown.

When switched on for the first time today at an opening gala with investors, local politicians and others, they’ll make up the first operational solar tower energy facility in the United States.

They reflect the sun into a tower in the middle of the field, boiling water into steam that travels through pipes to power a turbine and create electricity. The plant, created by Pasadena company ESolar Inc., will be able to power 4,000 homes.

The strength of the small field of mirrors is surprising, but what might be more surprising is the technology’s source. It was established by Pasadena incubator Idealab, a 1996 creation of entrepreneur Bill Gross. Gross, whom Time magazine once called the “man with a billion dollar brain,” generated some big hits with GoTo.com, Internet Brands Inc. and Cooking.com, along with such misses as Eve.com and EToys.

Idealab, which has counted director Steven Spielberg and actor Michael Douglas among its backers, has been spreading its reach to the green technology sector.

In the last three years, it has created RayTracker Inc., a solar tracking solution for photovoltaic systems; Distributed World Power, which designs solar systems for developing countries; Aptera Motors, which designs fuel-efficient cars; and ESolar.

It is jumping into the environmental market as venture capital is flowing more into clean-tech companies. Investment in such firms shot up 73% in the second quarter from the previous quarter, according to Ernst & Young, and is expected to continue growing.

The percentage of clean-tech investments to total investor funding has increased to double digits over the last three years, said Doug Regnier, an Ernst & Young partner leading its Pacific Southwest clean-tech consulting business.

Energy “is probably the biggest opportunity of the century,” Gross said. “The world’s energy needs and the demand to make that clean energy is going to be a challenge and an opportunity for smart entrepreneurs.”

Though focused on computer software for two decades, Gross said he returned to his passion for solar energy in 2000 as power shortages loomed. The Caltech graduate bought the restaurant next door to Idealab and turned it into a machine shop, eventually running solar experiments on the roof. Idealab’s first clean-tech firm, Energy Innovations, was created in 2001 to convert solar applications for commercial use. Idealab hired 50 people in the next three years to work on such ideas as a fuel-saving car and a portable solar device for developing countries.

The concept for ESolar came about as Idealab engineers started thinking about ways to provide cost-efficient solar energy for utilities and realized that most solar panels in commercial use were too big to be cost-efficient.

“We tried to figure out the angle we could exploit where we can zig where other people zag,” Gross said.

They came up with what Gross calls an unorthodox plan: “Go small.” Rather than make giant solar panels, they sized them at one square meter. That made the panels easier to install, putting them together like Legos rather than erecting a giant solar facility.

The smaller mirrors also are able to be aimed more quickly at the boiler target, said Michael Liebelson, head of the low-carbon development group at NRG Energy Inc., which is building plants using ESolar technology. Idealab’s software expertise helped it devise a way to manipulate the mirrors for better precision, he said.

“ESolar has one of the most, if not the most, innovative solar thermal technologies out there,” Liebelson said.

The ESolar plant in Lancaster went up on the barren desert site in 18 months, said Lancaster Mayor R. Rex Parris. He’s trying to make his city a center for alternative energy. “For an alternative energy to go on the line in 18 months, it’s literally unheard of,” he said.

ESolar has lined up more than $130 million in investments from such firms as NRG, ACME Group, Google’s philanthropic arm and Oak Investment Partners.

For Gross, ESolar’s effort is a sign that the interest in solar is growing — and that Idealab still has its knack for building companies and persuading venture capitalists to invest, even in a tough economy.

And it helps Gross regain a foothold after mutual fund giant T. Rowe Price and others sued him in 2002, alleging self-dealing and fraud, and shareholders bailed him out in 2006 after he failed to repay a $50-million personal loan.

“The biggest factor is when you’ve demonstrated that you can take a company from revenue to profit to successful exit,” he said. “That makes an investor comfortable that you can do it again.”

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!!

Written by Rob Perks

Visit NRDCs Switchboard Blog


The clean energy economy is upon us — but will the U.S. heed the call?

That’s the gist of today’s Washington Post story with this stark headline: Asian Nations Could Outpace U.S. in Developing Clean Energy.

 

Excerpt:

President Obama has often described his push to fund “clean” energy technology as key to America’s drive for international competitiveness as well as a way to combat climate change.

“There’s no longer a question about whether the jobs and the industries of the 21st century will be centered around clean, renewable energy,” he said on June 25. “The only question is: Which country will create these jobs and these industries? And I want that answer to be the United States of America.”

But the leaders of India, South Korea, China and Japan may have different answers. Those Asian nations are pouring money into renewable energy industries, funding research and development and setting ambitious targets for renewable energy use. These plans could outpace the programs in Obama’s economic stimulus package or in the House climate bill sponsored by  Reps. Henry A. Waxman (D-Calif.) and  Edward J. Markey (D-Mass.).

In due time fossil fuels will be gone — no one can dispute that.  So why is it that so many people — including an alarmingly high number of those serving in Congress — would rather waste time and energy denying the clear and present danger of climate change and resisting the solutions promised by a clean energy future?

[UPDATE: This just in…A new Harvard study finds that wind energy potential is considerably higher than previous estimates by both wind industry groups and government agencies.]

In my mind I can see a television commercial with just an hour glass on screen and this narration:

“Oil is running out.”

“Coal is running out.”

“Whether we like it or not, fossil fuels are going the way of the dinosaurs.”

“But we know that the wind and the sun will never run out.  And we can generate power from these natural, safe and limitless sources.”

“It’s time to move beyond the dirty energy of the past and embrace reliable clean power for the 21st century.”

“As a nation, we need to do this…before time runs out.”

Let’s all remember that America is a nation built on the foundation of freedom, independence and self-sufficiency — and those values must be at the heart of our strategy for energy policy.  We shouldn’t be losing ground in the world economy, buidling up massive trade deficits to pay for foreign oil.  It’s time we commit ourselves as a nation to develop clean, safe energy from the sun, wind and other natural sources that will create millions of jobs and rebuild our manufacturing base.

It just so happens that the best way to bring jobs and prosperity back to this country is also the way to end our dangerous dependence on foreign oil and protect the Earth we leave our children.  Let’s get back to building things again, starting with wind turbines, solar panels, and energy-efficient products that say ‘Made in America.’  After all, we have led every technological revolution of the last two centuries — electricity, railroads, the telephone, automobiles, the television, computers — and there’s no reason we can’t lead this one.

I have to question the logic (and patriotism!) of those politicians who would do the bidding of polluting industries — Big Oil, Big Coal, Nukes — when those dirty and unsafe technologies offer only short-term energy generation benefits at an extremely high cost to our heath, air and water, and climate.  The sun, the wind, and the geothermal energy at the core of the Earth provide a limitless supply of clean energy — our scientists can harness them and our workers can build them.  Our leaders should harness — not hamper — the greatest source of power we have in this country: American ingenuity.

The fact is, we already have wind and solar technologies that can dramatically cut our reliance on dirty coal plants that create most of the pollution that is poisoning our lungs and damaging our atmosphere.  What we need now are leaders who can build on this progress by partnering with business to develop and deploy innovative energy technologies that will recharge our economy and create jobs. 

As Thomas Friedman wrote in his book “Hot, Flat and Crowded”:  “[T]he ability to develop clean power and energy efficient technologies is going to become the defining measure of a country’s economic standing, environmental health, energy security, and national security over the next 50 years.”

The story in the Washington Post today is yet another wake-up call.  We shouldn’t need countries in Asia or Europe or South America to show us how to compete in the emerging markets for efficient appliances and alternative fuels.  We need leaders with vision and courage who will invest in technological breakthroughs that will once and for all end our reliance on oil and spur manufacturing jobs that can’t be outsourced.  That way, America can start exporting clean energy instead of jobs.

As a nation, we have a choice to make.  Fortunately, we don’t have to choose between clean, new energy sources and economic prosperity.  The choice is between accepting the status quo by holding tight to the dirty energy of the past or boldy embarking on the path to safe, reliable clean energy — an investment which promises both immediate and long-term gains. 

At this important juncture in our history, what choice will our elected leaders make?  It’s up to each and every one of us to help them make the right decision.

This post originally appeared on NRDC’s Switchboard blog.

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

CHRIS KAHN | June 29, 2009 03:27 PM EST | AP

NEW YORK — The government will help companies build powerful solar farms in the desert Southwest by pre-qualifying huge swaths of federal land for development.

The Department of Interior said Monday it will designate 670,000 acres of federal land in Nevada, Arizona, California, Colorado, New Mexico and Utah as study areas for utility-scale solar projects.

The land will be divided into 24 tracts called Solar Energy Study areas.

Interior Secretary Ken Salazar said the department will work with states on environmental studies and permitting to speed solar development in those areas.

Our Perspective:

This is good news. Finally, the government is stepping forward and acknowledging the opportunities provided by alternative energy development.

I hope this is only the beginning!

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

PA Poised for Solar

June 17, 2009

By Jane M. Von Bergen

Inquirer Staff Writer

Gov. Rendell stood on the deck of a Roxborough home last month talking about how the $100 million in the Pennsylvania Sunshine rebate program would make it possible for homeowners to afford an energy-saving solar system.

In Malvern, the $800,000 solar system that Siemens Medical Solutions installed in 2006 is yielding $18,000 a year in savings. With a state grant reducing the cost to $400,000, building manager Kevin Matthews expects the system to pay for itself by 2013.

To the 80 or so electrical contractors, suppliers, and electricians’ union officials at a seminar hosted by the National Electrical Contractors Association’s Penn-Del Jersey chapter yesterday, these examples prove that the solar-energy market is ready to yield its financial promise.

That is why the contractors want everyone to understand that, fundamentally, it is electrical work and that their employees, members of the International Brotherhood of Electrical Workers, are already trained to handle the jobs.

“There is a green workforce prepared to install these sustainable-energy projects,” said Kenneth MacDougall, business-development director for the contractors’ association.

Regardless of whether power originates from the sun or a dam, it is electricity and it moves through wires, he said.

MacDougall works closely with IBEW Local 380 in Collegeville, which has added green-energy training to its five-year electrical-apprenticeship program. Its facilities include a solar structure that apprentices use to practice installing solar panels and connecting them to the structure’s electrical system.

Union and management work together to develop and fund the training.

Green-energy work “all seems so new and fascinating, but we’ve been doing it,” said David Schaaf, business manager of Local 380.

But there are hitches in the pitch. Pennsylvania’s Department of Energy, for example, wants solar contractors used in the Sunshine rebate program to be certified by the North American Board of Certified Energy Practitioners.

The national electrical contractors’ association and the union are close to convincing the board that its training meets board standards, a national apprentice-training director told the group.

But there is another problem. The board requires contractors to have a certified practitioner on staff when they bid for the work.

That is not an issue for Union Electrical Contracting Co., the Fort Washington company that handled the Siemens job. It employs 100 electricians, including a dozen who work on solar projects.

But smaller contractors bidding on residential projects probably will not have that kind of person on staff. Instead, they would call the union for a journeyman trained in solar. MacDougall said that his organization and union officials were trying to persuade the state to amend regulations to accommodate this common type of building-trade business model.

Our Perspective:

Pennsylvania is open for the solar business!

Rebates are available for under 50KW systems, which is mostly geared toward residential and small business.

Should you be a small business and intersted in how the state and federal incentives will accelerate  the payback on your solar investment, email george@hbsadvantage.com or call 856-857-1230