Friday, January 28, 2011

'Buy American' Law

Pentagon required to buy only American-made solar panels.

On January 9, 2011, the New York Times reported that new legislation signed into law by the president requires the Department of Defense to buy only American-made solar panels.

In essence, the new 'Buy American' provision within the military authorization legislation is the first step towards transitioning the Pentagon away from purchasing Chinese-made solar modules. As the wars in remote desert regions continue, the military is investing more and more in practical solutions to bringing electricity to the troops. The move towards U.S. made modules should have a distinct impact on the U.S. solar industry, though the numbers are not clear at this point. As the Times reported:

China has emerged as the world’s dominant producer of solar panels in the last two years. It accounted for at least half the world’s production last year, and its market share is rising rapidly. The United States accounts for $1.6 billion of the world’s $29 billion market for solar panels; market analyses typically have not broken out military sales separately.

Representative Maurice Hinchey, Democrat (NY), a staunch supporter of the 'Buy American 'provision included in the bill is quoted as saying:

“We’ve had a lot of money taken out of this country and invested in other places around the world, particularly China, and particularly in alternative energies. For them to be producing alternative energy, that’s great, but we need to do it ourselves, and as much of it as possible."

To read the original article, click here.

Monday, January 24, 2011

Community Solar

Ellensburg Community Solar Project
Ellensburg, Washington

In 2006, the City of Ellensburg municipal utility installed a 36 KW community Photovoltaic (PV) system, the first of its kind in the nation, in an effort to harness the 300 days of sunshine the region experiences to power their local homes and businesses.  As Gary Nystedt, Resource Manager for the City of Ellensburg and organizer of the Solar Community Project puts it, “Produce the power where you use the power.”  An important aspect of this story is that everyone in Ellensburg  has the opportunity to invest in this locally produced clean electricity.  The project uses an innovative and unique financing approach—families, individuals, and businesses in the community have been asked to partner with the city to help fund the project. 

In exchange for their financial support, the city gives the contributors a financial credit on their electric bill for the value of the electricity produced by the solar system. For instance, if a customer contributes 3% of the total funds contributed by local residents and businesses, that contributor will receive the dollar value of 3% of the power produced by the solar project.  The Ellensburg Community Solar Project began generating power in November of 2006, and has since produced more than 170,000 kilowatt-hours, averaging 58,000 kilowatt-hours, annually.

 In May 2009, Washington passed SB 6170, effective July 1, 2009. With the passage of this legislation, community solar projects will be able to receive the production incentive after an official rulemaking procedure in the fall. Community solar projects are defined as solar energy systems owned by local entities and placed on local government property or owned by utilities and funded voluntarily by utility ratepayers.

The base rate for community solar projects is $0.30/kWh and the multipliers are the same as those used for other renewable energy technologies. The actual production incentives range from $0.30/kWh to $1.08/kWh, as the incentive rate is higher for modules and inverters manufactured in Washington.  Each participant in the community solar project can apply to receive this incentive and may receive up to $5,000 per year. 

The Washington Department of Revenue (DOR) is responsible for submitting a report measuring the impacts of this legislation, including any change in the number of solar energy system manufacturing companies in Washington, and the effects on job creation, such as the number of jobs created for Washington residents.

Production Incentives

WA State Senate Bill 5101

 In order to assist in meeting the growing need for additional energy production, Washington State’s Senate Bill 5101, the Renewable Energy Production Incentive, was passed in 2005, and has been hailed as “the most important solar legislation ever introduced in any American state legislature,” by Denis Hayes, the founder of Earth Day, president of the Bullitt Foundation and chair of the American Solar Energy Society (ASES). 

Mike Nelson of Washington State University and The Northwest Solar Center, using the German incentive model, helped to pen this legislation, and explains: “Effectively, owners of solar systems become micro-utilities, producing a revenue stream from their investment in renewable resources.”

The incentives apply to power generated as of July 1, 2005, and remain in effect through June 30, 2020.  The producer can be a home or a business. The incentive amount paid to the producer starts at a base rate of $0.15 per kilowatt-hour (kWh), capped at $5,000 per year, and is adjusted by multiplying the incentive by the following factors:

Factor 1:  Electricity produced using solar modules manufactured in Washington State, such as Efficient Life Technology’s Starborn Module:
Multiply by 2.4
($0.15 x 2.4 = $0.36/kWh)

Factor 2:  Electricity produced using a solar system equipped with an inverter manufactured in Washington state:
Multiply by 1.2
($0.15 x 1.2 = $0.18/kWh)

Factor 3:  Electricity produced using solar modules manufactured in Washington state & an inverter manufactured in Washington state:
Multiply by 3.6
($0.15 x 3.6 = $0.54/kWh)

Net Metering Overview

Taking advantage of Washington’s Renewable Energy Production Incentives does not reduce or impact savings achieved through net metering.  Net metering is an electricity policy for consumers who own (generally small) renewable energy facilities, such as wind, solar power or home fuel cells. “Net”, in this context, is used in the sense of meaning “what remains after deductions” — in this case, the deduction of any energy outflows from metered energy inflows.  So, in addition to the production incentive payments, which are based on the total amount of power that their system has produced (no matter how much of that power they themselves consume), with net metering programs, individual producers are granted credit on their power bill for all of the energy they have produced but did not consume, that power which passes through the utility-installed meter and back into the grid.

Washington’s net-metering law applies to systems up to 100 kilowatts (kW) in capacity that generate electricity using solar, wind, hydro, biogas from animal waste, or combined heat and power technologies (including fuel cells). All customer classes are eligible, and all utilities – including municipal utilities and electric cooperatives – must offer net metering. 

Net metering is available on a first-come, first-served basis until the cumulative generating capacity of net-metered systems equals 0.25% of a utility’s peak demand. This limit will increase to 0.5% on January 1, 2014. At least one-half of the utility’s available aggregate net metering capacity is reserved for systems generating electricity using renewables.

As you can see from the following chart, the net metering program has grown substantially since it’s inception in 1999, growing from only 2 new customers in 1999 to 243 in 2008.

Of those involved in PSE’s net metering program thus far, a vast majority of the customers utilize solar PV systems to generate their grid-tied energy.  Of the projects in operation as of April 17, 2008, 243 were solar arrays, 4 were a combination of both solar and wind, 4 were powered by micro-hydro, and 3 were wind turbines.

In addition to state and national rebates and incentives, many local utility companies also offer rebate and loan programs to promote the installation of solar PV systems and other renewable energy systems such as wind power, as well as offering credits for the use of installing energy efficient windows, insulation, heat pumps, lighting, refrigerators, washers and dryers.

Private investors and communities are also getting involved in the expansion of renewable energy usage by creating large-scale solar projects, essentially creating their own, localized power production plants.  Like the home/business model, these large-scale or community power production facilities also receive incentives, in fact in excess of the substantial incentives being paid to individual net metering customers. Examples of these larger sites are the proposed Teanaway Solar Reserve and the Ellensburg Community Solar Project.

25 by 25

Renewables in Rural Washington

Another force in the move towards more solar and renewable energy in the State of Washington is the “25x25” project, the goal of which is to produce 25 percent of our country’s energy from renewable resources like wind, solar, and biofuels by the year 2025.

A group of volunteer farm leaders first envisioned the goal of 25x25, and it quickly gained the support of a broad cross-section of the agriculture and forestry communities. Now leaders from business, labor, conservation and religious groups are joining this alliance as well. 25x25 is supported financially by the Energy Future Coalition, a non-partisan public policy initiative funded by foundations, and is endorsed by Washington politicians Sen. Cantwell, Rep. Inslee, and Rep. McMorris-Rodgers. The vision includes:

    * Bring new technologies to market and save consumers money.   
    * Reduce our dependence on oil from the Middle East.  
    * Create good new jobs in rural America.  
    * Clean up the air and help reduce urban smog and greenhouse gas emissions.

A national study undertaken by the University of Tennessee Department of Agricultural Economics (December 15, 2008) shows that if America’s farms, ranches and forestlands are empowered with the policies and incentives needed to meet 25 percent of the nation’s energy needs with renewable resources – biofuels, biomass, wind energy, solar power, geothermal energy and hydropower – an estimated $700 billion in new, annual economic activity would be generated, and 4 million to 5 million new jobs would be created.

The USDA, with their REAP (Rural Energy for America Program) Grants, is offering direct funding for energy efficient and renewable power projects, feasibility studies, and loan guarantees.  The BIA (Bureau of Indian Affairs) also has grants and loan programs in place specifically to develop renewable power on Native reservations throughout Washington and the rest of the U.S.

When one looks at the enormous support that renewables such as solar power have gained over the years in Washington State, from individual homeowners to government agencies and policy makers, along with the immense increase in the overall solar PV market in the U.S. and around the world, one can see that the climate is right for Efficient Life Technologies, llc. to join an industry where in Washington, like the world, the demand continues to grow.

WA Solar Energy Future

The Future of Solar Energy in Washington State

Years ago, Washington State was poised to be a world leader in the development and manufacturing of solar PV technology.  Unfortunately, that vision did not come to fruition at that time. Perhaps the idea of leading the world in solar technology from a location famous for its cloudy winters made it even more difficult to gain support. The result was Germany taking the lead, and becoming one of the superpowers of solar production and manufacturing.

Through their innovative incentive programs, Germany opened the door not only for the use of solar photovoltaics as a viable source of energy production, but also for the development of the photovoltaic industry, encouraging economic growth in a fast-growing industry. It is this economic development, and not the idealism of the “go green” movement, that eventually proved to the world that the incentive programs worked. The solar industry is now the country's fastest growing industry, quickly placing Germany among the world leaders in solar photovoltaic production. Ironically, Germany experiences more cloudy days per year than Western Washington.

Now, years later, the Washington State Legislature, influenced by Washington State University and The Northwest Solar Center, have mirrored many aspects of the successful German legislation. The first of these is Washington State’s Renewable Electricity Standard, Revised Code of Washington (RCW) Title 19, which mandates that the state’s largest utilities derive at least 15% of their retail electric load with renewable energy by 2020.

This is not only to encourage “green” energy, it is also a response to the increased demand placed on Washington State’s energy providers to meet the needs of current and future customers. This is a serious challenge, and a direct link to the growth of the renewable energy industry.

A Brief History of Solar PV

All the energy stored in the Earth’s reserves of coal, oil, and natural gas is matched by the energy from just 20 days of sunshine. How we capture this energy is by the use of photovoltaics (PV). Of course, the challenge is capturing this energy. Outside Earth’s atmosphere, the sun’s energy contains about 1,300 watts per square meter. About one-third of this light is reflected back into space, and some is absorbed by the atmosphere (in part causing winds to blow).

The term “photovoltaic” comes from the Greek φῶς (phōs) meaning “light”, and “voltaic”, meaning electric, from the name of the Italian physicist Volta, after whom a unit of electro-motive force, the volt, is named.

The photovoltaic effect was first recognized in 1839 by French physicist A. E. Becquerel, who discovered that certain materials would give off a spark of electricity when struck with sunlight. This photoelectric effect was used by Charles Fritts in 1883, who coated the semiconductor selenium with an extremely thin layer of gold to form the junctions, creating the world’s first solar cells. The device was around 1% efficient, meaning that it transformed approximately 1% of the sunlight that engaged the cell into electricity.

Albert Einstein explained the photoelectric effect in 1905, for which he received the Nobel prize in Physics in 1921. The basic explanation of the photovoltaic effect is this: When sunlight enters the PV cell, it’s energy knocks electrons loose in the two layers. Because of the opposite charges of the layers, the electrons want to flow from the N-type (-) layer to the P-type (+) layer, but the electric field at the P-N junction prevents this from happening.

The presence of an external circuit, however, provides the necessary path for electrons in the N-type layer to travel to the P-type layer. Extremely thin wires running along the top of the N-type layer provide this external circuit, and the electrons flowing through this circuit provide the cell’s owner with a supply of electricity.

Twenty-five years later, in 1946, Russell Ohl patented the modern junction semiconductor solar cell, which was discovered while working on the series of advances that would lead to the transistor. In the 1950s, scientists at Bell Laboratories revisited this technology and, using silicon, produced solar cells that could convert four percent of the energy in sunlight directly to electricity. Due to the extremely high cost of production, the only useful application of the technology at the time was in space exploration.  The US satellite Vanguard 1, launched in March 1958, was the first to be powered by solar PV cells.

50 years later, the manufacturing price for PV modules has decreased from $40,000 per watt to under $5 per watt, and cell efficiency has surpassed 18%, making the dream of harnessing the virtually unlimited power of the sun a reality, with groups as wide-ranging as off-grid survivalists, local school districts, world governments, militaries, families, and international corporations discovering and re-discovering the value of solar energy for sustainability and profit.