Solar energy currently generates .1% of the electricity used in the U.S. According to a study released today, this will change rapidly as the cost of electricity increases and the cost of solar energy drops.

The Utility Solar Assessment Study produced by Clean Edge and Co-op America finds that solar energy is already reaching cost parity with conventional sources in some areas of the U.S. where electric rates are highest. By 2015, this will be achieved in many more areas, including Boston, San Diego, and New York. By 2025, cost parity will be achieved throughout the U.S.

The implications of this are huge. The U.S. solar photovoltaic market now relies heavily on state incentives to lower the cost of solar energy. Many people utilize solar energy because it is “the right thing to do” or businesses like the positive publicity solar brings. (more…)

The planets may be aligned to finally make solar competitive with coal, according to an article in Bloomberg.com by Greg Chang. Rising natural gas prices, the extension of tax credits for solar investment, and the near-certainty that carbon emissions caps will be imposed by the next U.S. administration, will make it happen. A concentrated solar thermal plant in California’s Mojave Desert, run by FPL, Inc., uses 550,000 mirrors to concentrate solar power.

“At noon on a typical workday, technicians in a two-story control room monitor a dozen screens showing the heat generated by each array of mirrors. As temperatures creep past 700 degrees, icons blink to red from green, indicating the center is ready to feed electricity to the California grid.”

The resulting steam turns turbines that generate electricity — enough to power 112,55 L.A.-area homes. Concentrated solar thermal’s potential has not escaped the attention of forward-thinking investors with big money:

“Chevron, Goldman Sachs, FPL, PG&E and other companies have filed more than 50 applications with the Bureau of Land Management to lease government-owned desert property for solar power systems. Google’s philantropic division put $10 million into eSolar, a start-up in Pasadena, California.” –Greg Chang, Bloomberg.com

A May 16 article in the New York Times focused on the debate in Germany regarding whether generous subsidies for solar energy should be continued. Buried in the story was the remarkable fact that Germany has created 40,000 jobs in formerly blighted industrial areas by “turbo-charging” the growth of the solar industry there. Imagine if our government took a leadership role in jump-starting solar production in areas like Pittsburgh, Indiana, and Michigan, where much of the infrastructure and work force still remain from the declining steel and auto industries. Some facts:

• Germany has half the sunshine hours of San Diego.
• An American company, Signet Solar, chose to build its thin film plant in Germany, not the U.S.
• The engine that grew Germany’s solar industry is its feed-in tariff, which requires power companies to buy citizen-produced solar energy at an above-market rate for 20 years. Citizens have responded — by putting solar panels on nearly every available surface.
• Spain, France, Italy and Greece have copied Germany’s subsidy plan. California is using a version of it by requiring utilities to pay customers rebates for the amount of energy they would have bought if they didn’t have solar modules.
• Growing solar has helped other alternative energy production to grow as well: Germany gets 14.2 percent of its electricity from renewable sources, putting it ahead of the EU target of 12.5 percent from renewables by 2010.

Critics of the subsidies argue that they will eventually make solar energy too costly vs. other energy sources; defenders argue that the support for solar still doesn’t match subsidies to the dirty and declining coal industry, and that conventional energy costs will rise at a higher rate. Others charge that this is a classic attempt by large centralized power companies to weaken the role of distributed generation — citizen-generated, de-centralized power sources. Whether or not Germany decreases subsidies at a faster rate than planned, for now they are the world’s largest market for PV systems.

“To develop a technology, you’ve got to create an industry,” said Mr. Milner, the chief executive of Q-Cells, referring to the German success story. “You can wait and wait and wait for costs to come down, but it takes too long.” –Mark Landler, New York Times, 5/16/08

Oregon is once again taking the lead with renewable energy by installing the country’s first highway solar energy project. The project will consist of a 104 kW solar photovoltaic system that covers 8,000 square feet and produces 112,000 kWh each year. That’s 28% of the energy needed to power the project’s location, the Interstate 5 and Interstate 205 interchange in Tualatin.

Electricity for the interchange will be provided by PGE. The solar panels will come into play by producing electricity during the day, giving the power to the PGE grid, and getting the equivalent amount of power back at night from PGE to power lighting on the highway.
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July 3, 2008 - U.S. Senator Bernie Sanders (I-VT) has introduced a Bill to the Senate that would help homeowners to slash the cost of installing solar panels. The 10 Million Solar Roofs Act of 2008 will offer rebates for up to half the cost of installing solar photovoltaic systems, and run for ten years. A wide range of people and organizations, including homeowners, businesses, non-profit organizations, state and local governments will be eligible to apply.

The Bill will be formally introduced when the Senate reconvenes on Monday following the 4th July recess. Co-sponsors come from across the political spectrum, including Senators John Kerry (D-MA), Ben Cardon (D-MD), Arlen Specter (R-PA), John Warner (R-VA), and Robert Menendez (D-NJ). The proposal looks very similar to an initiative launched in San Francisco late last month that will provide rebates of $3,000 to $6,000 in the largest city-wide solar promotion scheme in the U.S.

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Solar energy promoters and marketers have been getting spun up in the blogosphere this past weekend based on a couple of stories that ran in the mainstream media on Friday, June 27, 2008. The frenzy of concern has been generated because the Bureau of Land Management (BLM), announced, via a press release issued on May 29 and updated on June 12 that it would be producing a Programmatic Environmental Impact Statement (PEIS) to evaluate the “environmental, social, and economic impacts associated with solar energy development on BLM-managed public land in six western States: Arizona, California, Colorado, Nevada, New Mexico, and Utah.”

As described by the press release, the BLM would require about 22 months to produce the necessary studies to complete the PEIS. During that time, the Bureau would seek public comment, focus on the impacts that would result from the development of 125 applications it has in hand already, defer any new applications, and create a framework for approaches that would best allow the Bureau to mitigate the effects of an expected continued flow of applications after that study period.

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[social_buttons]U.S. Representatives Jay Inslee (D-WA), Bill Delahunt (D-MA), Jim McDermott (D-WA), and Mike Honda (D-CA) introduced landmark legislation [PDF] on Thursday that will provide security for investments in the renewable-energy sector by guaranteeing rates for renewable-energy generation. This policy mechanism, also known as a national feed-in tariff, may be the single most effective tool to expand renewable energy development that we know of. Feed-in tariffs have been introduced in several U.S. states, but none have the bills have been passed into law.

The International Energy Agency, the European Commission and the United Kingdom’s Stern Review have determined that feed-in tariff policies in Germany, Spain, France and other European Union countries have achieved larger renewable energy deployment at lower costs, compared with policies in other European Union countries.

The legislation has two principle titles. The first would streamline interconnection standards and the patchwork of policies currently governing interconnection. The second title addresses the actual process of setting of renewable energy tariffs, and what would qualify. This bill would not only apply to the mom and pop backyard wind turbines, and rooftop solar - the tariff extends to projects as large as 20 megawatts! (more…)

California plan facing ‘NIABY’ foes (Not In Anyone’s Back Yard)

[UPDATE: I have added a list of the environmental groups that oppose Superlink below] A project being developed by San Diego Gas & Electric Co. and Stirling Energy is facing opposition from some environmentalists because the plan also calls for a 150-mile, high-voltage transmission line that would pass through 23 miles of Anza-Borrego Desert State Park, a spot known for its hiking trails, wildflowers, palm groves, cacti and spectacular mountain views.

The proposed Sunrise Powerlink would carry energy produced from several wind, solar, and geothermal installations from the California’s Imperial Valley to San Diego. The entire route would be about 150 miles long with 554 towers from end to end. (But with a cheery name like Sunrise Powerlink, how could anyone oppose it?)

While federal and state officials put the brakes on new coal-fired power plants and as investors back out of others, the demand for more renewable energy will only grow stronger. And as it turns out, the spots with the best renewable resources also have the harshest and often least habitable climates - dry, hot, windy, barren, etc. - so the electricity then needs to be transmitted to areas where people have settled (i.e. cities). And that is where some problems are surfacing. (more…)

Conservatives call into question highly successful feed-in tariff

There is a reason that Germany has half of the world’s installed solar generating capacity, and it is not the Northern European country’s boundless sunshine. Renewable energy capacity has achieved such tremendous growth because of the German government’s aggressive energy policy.

The policy vehicle responsible for the rapid acceleration of the country’s renewable energy capacity, known as a feed-in tariff (FIT), guarantees a fixed-rate of return for homeowners and farmers who install solar, wind, small hydro, biomass, and methane capturing systems and sell their surplus electricity back to the grid. Germany has Europe’s highest feed-in tariffs, allowing consumers to earn around 40 euro cents ($0.62) per kWh compared to paying retail rates of 18 euro cents per kWh after taxes and support fees.

Electricity generated through Germany’s feed-in law produces about 50 terawatt-hours (billion kilowatt-hours) of electricity per year, or nearly 15% of German electricity consumption (1). This adds an average of only 1.01 euros ($1.69) a month to a typical home electricity bill.

Bu, despite the law’s success, conservatives in the German Bundestag want to ratchet back the incentives that support renewable energy development. (more…)

Can you have state envy? I do. Colorado is one of those states really forging ahead with smart clean energy policies that will not only cut global warming pollution and promote local energy sources, but help build a cleantech business sector as well. In fact, it’s already begun.

Denmark-based Vestas Wind Systems, one of the largest wind turbine manufacturers in the world, recently opened a turbine-blade manufacturing plant there. Renewable Energy Systems America, a wind farm developer, just moved its headquarters from Austin, Texas to Broomfield, Colorado. It plans to expand and double the number of employees at HQ in the next year. ConocoPhillips will open a renewable energy research hub and corporate learning center in the state too.

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