CHARLES BABINGTON | May 27, 2009 06:26 PM EST | AP

President Barack Obama on Wednesday hailed solar energy as a cost saver for a major Air Force base, one stop on a Western trip devoted to raising political money and promoting his economic policies.

Obama’s aides had mocked reporters for making a fuss over his first 100 days in office, but the president was eager to assess the first 100 days of his $787 billion economic stimulus package.

It has “saved or created nearly 150,000 jobs,” he said, including “jobs building solar panels and wind turbines; making homes and buildings more energy-efficient.”

The White House job claims are difficult to verify because they are based on estimates of how bad the economy might have been without the stimulus rather than actual employment data. The country has lost 1.3 million jobs since February, a figure the Obama administration says would have been far higher if not for the recovery effort.

Obama also announced more spending for renewable energy after touring a large field of solar panels at Nellis Air Force Base, near Las Vegas. The sun-powered cells provide a quarter of the base’s power needs, Obama said, speaking in a large hangar warmed by the desert heat.

“That’s the equivalent of powering about 13,200 homes during the day,” he said, and it will save the Air Force nearly $1 million a year.

Obama said more than $467 million in stimulus money will be used “to expand and accelerate the development, deployment and use of geothermal and solar energy throughout the United States.”

The president sandwiched the midday event between two political fundraisers: one on Tuesday night in Las Vegas for Senate Majority Leader Harry Reid, D-Nev., and one set for Wednesday night in Los Angeles for the Democratic National Committee.

At Nellis, Obama addressed 400 people, including Air Force personnel, civilian workers and families living on the base.

The base’s $100 million public-private solar power system covers 140 acres and generates more than 14 megawatts of electricity.

As he departed the hangar, Obama bypassed his limousine and walked a quarter-mile along the tarmac to examine fighter jets, chatting with Air Force personnel as he went.

Our perspective:

Solar is the new energy growth maket. For the first time, with Federal and State incentives, the investment is solar finally makes sense.

To find out more how you can make solar your solution email george@hbsadvantage.com  or call 856-857-1230. We will review your opportunity and discuss the financial options available.

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.

May 15, 2009, 8:15 am

SolarKirk J. Condyles for The New York Times Not all homeowners associations approve of this sort of thing.

John Wood, a homeowner in Woodbury, Minn., wanted to put solar panels on his roof. Last month, his homeowners association rejected his application.

“I felt extremely disappointed,” Mr. Wood said by telephone.

He added: “It made me think that homeowners associations are in place to do only one thing, and that is to maintain the status quo, and they have no interest in any sort of change whatsoever.”

Al Rudnickas, the president of the board of the Wedgewood Association, the homeowners’ group, said that the board was open to less obtrusive technologies like solar shingles. But in this case, “The feeling of the board was that what was proposed wasn’t aesthetically pleasing in keeping with the standards of the community,” he said.

Mr. Rudnickas said that the association invited Mr. Wood to submit a modified application, but Mr. Wood — who is the first homeowner in the association to apply for solar panels — said he was not sure whether he will do so.

Mr. Wood’s case, first reported in the Woodbury Bulletin, has echoes around the nation.

 

In Somerset County in New Jersey, a homeowner was ordered to take down 28 panels.

In California, another homeowner, Marc Weinberger, sued his homeowners association last year after his efforts to put solar panels on his roof were rejected.

Mr. Weinberger and his lawyer, Michael McQueen, have since told Green Inc. that their motion for summary judgment was granted, and Mr. Weinberger installed a system early this year.

In another California case, Marty Griffin, a homeowner in Santa Clarita, applied to put solar panels on a hillside on his property. The association said no, but he went ahead anyway and got sued.

The litigation has been under way for more than a year. Mr. Griffin says the association did not respond in a timely way to his application; a lawyer for the association, Ricardo Cestero, told Green Inc. that Mr. Griffin “did not follow correct procedures.”

Mr. Griffin details his saga, including legal documents, on his Web site.

For solar installers, the roadblocks can be frustrating. John Berger, the chief executive of Standard Renewable Energy, a Houston-based firm that designs and installs solar systems for homes, said that the homeowner associations’ prohibitions had already cost him more than $1 million in business.

“It is a big problem,” he said.

Lawmakers in Texas are considering a bill that would prevent homeowner associations from banning solar panels, and similar laws are already in place in a dozen or more states, according to the Database of State Initiatives for Renewable Energy — including Arizona, Colorado, Florida and California, among others.

Mr. Wood said he planned to contact his state legislators in the hopes of enacting this type of law in Minnesota.

The laws, however, are rarely comprehensive, as some of the California cases suggest.

Rusty Haynes, a project manager at the North Carolina Solar Center, which manages the D.S.I.R.E. database, said that some applied only to new construction, and others might be vague or limited in scope.

In Arizona a few years ago, a homeowner was challenged over the color of her panels (they were apparently too dark), despite a state law intended to smooth the process.

Has this happened in your community? Is this an issue for you? Feel free to comment below, or e-mail george@hbsadvantage.com

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

 

By Diane Mastrull

Pennsylvania will start issuing rebate checks in July to help homeowners offset the cost of installing solar-powered energy systems, but don’t expect an immediate stampede to plug into the sun.

Even with a state rebate of up to 35 percent, on top of maximum federal tax credits of 30 percent, going solar requires a sizable investment. The typical four-kilowatt residential system costs about $35,000.

In all but affluent households, that is an unthinkable expense, says David Blumenfeld – especially now, when “everybody is hurting, everybody is scared about losing their job.”

So he is offering another pathway to the sun.

By offering homeowners the option of leasing solar systems – a deal that would not involve the up-front costs typical of buying such equipment – Blumenfeld’s new company, Urban Eco Electric, hopes to raise a bumper crop of solar panels across Philadelphia’s rowhouse rooftops.

UEE, believed to be one of only a few such companies nationwide, also would guarantee 50 percent decreases in monthly electricity costs for the first two years of a 20-year agreement.

For the subsequent 18 years, customers would pay their current electric rates – as long as their electricity use did not exceed the amount on which that rate was based. The rates would remain frozen even in the likely event of substantial increases, which are expected when utilities start lifting rate caps in 2011.

“At the end of the day, the savings are substantial,” Blumenfeld said of solar leasing.

It is a relatively new green-economy concept, largely confined to California and Connecticut, but expected to “be very prevalent” soon, said Adam Stern, executive vice president of the Gemstone Group Inc., a renewable-energy investment-banking firm in Wayne.

“In fact, my organization is creating a solar-leasing business for Pennsylvania,” Stern said last week. “We are working on a late-summer or early-fall launch.”

After that, Gemstone plans to turn its attention to New Jersey, where grants and loan programs are the financial-assistance options available to homeowners for solar-powered systems.

Gemstone was the architect of Connecticut’s solar-leasing program, which debuted last summer, and is managing its leasing company.

UEE, formed in January, has a staff of three and expects to employ as many as 100 within 18 months as installers, systems monitors, and sales staff are added. The company has been marketing for about a month, canvassing neighborhoods, street fairs, and Earth Day events.

The goal is to get 100 signed contracts within 100 days, said Blumenfeld, 47, a lawyer and real estate broker who lives in Lower Merion. Once that target is reached, installation would begin.

As its name implies, UEE is confining its work to the city. Flat rowhouse roofs and their unobstructed access to the sun make them ideal properties for solar-heating systems, Blumenfeld said.

An added plus is that most city homes use gas for heating and cooking, making it that much more possible to serve 100 percent of a rowhouse’s electricity needs through solar, he said.

Blumenfeld grew up in the city and spent seven years with Grasso Holdings as a partner responsible for acquisitions and new development. With conditions in the development business “dreadful” over the last year, Blumenfeld said, he decided that “it was time to go out and do something new.”

He thought about the solar industry largely because the state legislature had passed in July Gov. Rendell’s $650 million Alternative Energy Funding Act, which allotted $100 million for the solar-rebate program for homes and small businesses.

The more Blumenfeld read about solar initiatives, the more convinced he grew “that everyone was focused on the wrong market – large power-purchase agreements. Going after the residential market seemed a huge opportunity.”

In typical solar-installation deals, customers are told to expect a return on their investments in five to seven years at best. Blumenfeld said that is merely guesswork – and completely irrelevant to those who cannot come up with the money for installation.

How UEE will get a return on its investments is a complex matter of depreciation, tax credits, and use of federal, state, and local incentives. For instance, using the solar electricity generated by its systems, UEE would have the ability to sell renewable-energy certificates to utilities to help them meet renewable-energy-portfolio standards.

Andrew Kleeman, managing partner at Center City-based Eos Energy Solutions, is a solar installer who contends the essentials are not in place to make leasing work “in the foreseeable future.” Still unclear in Pennsylvania, he said, is how solar-leasing companies would access state rebates that are available to homeowners buying solar systems.

Those subsidies are “essential to making the numbers work,” Kleeman said.In the three-story Queen Village rowhouse Peter and Rebecca Lazor live in with their 2-year-old son, $30,000 in green improvements already have been made. They have replaced all the windows, reinsulated the house, and replaced the appliances with energy-efficient models.

Installing a solar-power system “was the next logical move,” said Peter Lazor, 38, an architect. But an out-of-pocket expense of $25,000 to $40,000 “was cost-prohibitive” – they would have to stay in the house far longer than anticipated to derive enough energy savings to justify a loan for the system.

Then along came Blumenfeld with his leasing pitch, an idea Lazor found “really attractive.” Come summer, he hopes to have a rowhouse juiced by the sun.

Our Perspective:

PA has just started it’s solar initiative. A small step indeed but a much needed step.

Should you wanrt to know more about financial structures and other financial opportunities that take advantage of federal and stae incentives, contact:

Hutchinson Business Solutions

You may email us 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.

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.

HARRISBURG – Pennsylvania’s long-stalled solar-rebate program for homeowners and small businesses will soon have funding – an infusion of cash that could result in the creation of scores of “green” jobs.

The Commonwealth Financing Authority board voted unanimously yesterday to borrow $30 million to get the Pennsylvania Sunshine Program under way.

Enacted in July as part of Gov. Rendell’s $650 million Alternative Energy Funding Act, Sunshine is expected to provide rebates of 35 percent to help cover the cost of buying solar-power systems.

“Time is of the essence,” said George Cornelius, chairman of the seven-member authority board and the state’s acting secretary of community and economic development.

The DEPartment of Environmental Protection, which will administer the Sunshine Program, expects rebate applications to be available within two weeks.

“We think this is the front edge of a huge development of renewable energy in Pennsylvania,” said Dan Griffiths, deputy secretary at the DEP.

Those are inspiring words to Jeremy Klotz, 44, of South Philadelphia, who traveled to the state capital yesterday along with 30 other solar contractors to urge the authority to approve funding for Sunshine.

Klotz was laid off three weeks ago from a solar company that had hired him months ago in anticipation of Sunshine funds that never came.

Solar-contracting companies throughout the state had hundreds of thousands of dollars in installation jobs and planned hires on hold because homeowners and small businesses were reluctant to commit to solar projects without assurance that state help to offset the cost was, indeed, on the way. An average 5-kilowatt residential system costs $35,000 to $40,000.

“If this [funding] had passed, I might be working right now,” Klotz told the authority board prior to yesterday’s vote.

A quick polling of his colleagues in the audience revealed at least 350 installation projects on hold because of uncertainty over when – if ever – Sunshine funds would become available, Ron Celentano, a principal with Celentano Energy Services in Wyndmoor, told the authority board.

 

‘Dire need’

“We are in dire need of this money,” said Celentano, who is also vice president of the Mid-Atlantic Solar Energy Industries Association.

Rising from the back row, a soft-spoken Wes Checkeye, a 24-year-old part-time solar installer at Heat Shed Inc. near Quakertown, told the board he was “looking forward to a solar future – if that’s possible.”

In all, the legislature allotted $100 million for Sunshine. The Commonwealth Financing Authority, an independent agency established to administer Pennsylvania’s stimulus packages, anticipates issuing a number of bonds over the next few years to fund the Sunshine program entirely, as well as other alternative-energy programs the state intends to launch.

The authority intends to go to market to finance Sunshine’s first funding infusion the first week of May, said executive director Scott Dunkelberger.

 

‘All those green jobs’

That was a good-enough assurance for Kira Costanza of Collegeville-based Sunpower Builders, which has about 40 contracts with potential customers sitting in a drawer and about a half-dozen planned hires that have been in limbo.

“We’re thrilled,” Costanza said of yesterday’s funding vote. “This is going to create all of those green jobs everybody’s been talking about.”

Within a month, that will mean the rehiring of an administrative assistant, an electrician, and a plumber at Open Sky Energy Systems in Swarthmore, said Michael Matotek, chief operating officer.

The company was formed a month or two after the legislature approved the Sunshine program. With rebates still unavailable by January, Matotek said, “we had to let everybody go.”

After the vote, he told Klotz he’d like him to consider working at Open Sky.

Said an elated Klotz: “I’m going to go celebrate my daughter’s 13th birthday.”

Our perspective:

The long awaited door has been opened. Governor Rendell approved this measure in July 2008, from there it had to be defined.

This is a small but necessary steps. The bill is designed for residential and small businesses. It will not prove to be the be all…end all.

PA has to take significant steps if it wishes to jump start a program needed to address the growing demand for energy. We are faced with a dilemna. Demand is growing   1 1/2% a year. We are unable to meet this growing demand in the next 8 to 10 years with our existing facilities.

I do not believe that people will accept rolling brown outs as a possible solution to meeting this growing demand. Incentives are needed to open the gates to larger facilities / businesses. Providing a ROI that will not only make sense but also allow us to meet this demand.

Let us know your thoughts?

Should you be interested in knowing more of how to set up the proper financial structure needed to take advantage of Federal and State Incentives…email george@hbsadvantage.com 

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.