Military Goes Solar

Energy Department Loan Guarantee Would Support Large-Scale Rooftop Solar Power for U.S. Military Housing

September 7, 2011

Washington D.C. – U.S. Energy Secretary Steven Chu today announced the offer of a conditional commitment for a partial guarantee of a $344 million loan that will support the SolarStrong Project, which is expected to be a record expansion of residential rooftop solar power in the United States.  Under the SolarStrong Project, SolarCity Corporation will install, own and operate up to 160,000 rooftop solar installations on as many as 124 U.S. military bases in up to 33 states.  SolarCity expects the project to fund approximately 750 construction jobs over five years and 28 full time operating jobs.  Many of the jobs are expected to be filled by U.S. veterans and military family members, who will be recruited, trained and employed to install, operate and maintain the photovoltaic (PV) systems.

“This is the largest domestic residential rooftop solar project in history,” said Secretary Chu.  “This groundbreaking project is expected to create hundreds of jobs for Americans and provide clean, renewable power to our military families. It can also be a model for other large-scale rooftop solar projects that help America regain its lead in the solar industry.”

The project, which could create up to 371 megawatts of new solar capacity, includes the installation of residential rooftop PV systems on existing privatized military family residences and other privatized buildings, such as community centers, administrative offices, maintenance buildings and storage warehouses.  The project will provide low-cost, renewable electricity to privatized military housing and is expected to avoid over 250,000 metric tons of carbon dioxide annually.  The SolarStrong Project will have the added benefit of helping the Department of Defense (DOD), the single-largest energy consumer in the U.S., secure its energy needs from domestic renewable sources that are independent from the utility grid, at no additional cost to taxpayers.  DOD has a stated goal that 25 percent of all energy consumed by 2025 shall be supplied from renewable sources.

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Reality of Community Solar

Can Community Solar Programs Bring Solar Ownership to the Masses?

Americans For Energy Leadership On 01.24.11, 

In Opinion, By McKenna Morrigan

Americans For Energy Leadership

http://leadenergy.org/

Community solar is a concept that has lots of cheerleaders. And what’s not to love? At it’s best, this market-based deployment strategy can expand access to clean energy, create jobs, spur local investment, and help drive down the cost of solar panels.
But while the concept of community solar has had strong support from policymakers and clean energy advocates for several years, actual community solar projects have been slow to materialize. Now, two statewide community solar programs and a host of other new state and local policies to encourage community solar may be catalyzing a wave of new projects. Will the reality of community solar live up to the ideal?

Community Solar Spreads the Benefits and Rewards of Clean Energy Investment
Community energy carries all the environmental, economic, and national security benefits of clean energy in any form, but with a distinct advantage. A review of research by Northwest SEED suggests that community energy projects deliver 2-5 times the economic benefits of projects built by out-of-state investors. And, in places that import electricity from outside the area, community energy can also keep utility dollars in the community, with multiplier benefits for the local economy. Community energy provides distributed generation, with associated benefits such as increased system reliability and resilience, lower peak power requirements, minimal transmission requirements and reduced line losses.


Examples of community energy began in rural areas of the Midwest, where farmers joined together to capture some of the benefits of the commercial wind development boom underway at the time. These projects blazed the “community energy” trail, developing novel legal structures and forms of financing, and proving that community energy could be a source of job creation and economic development.
But community wind has limited applicability, given the requirements of a strong wind resource, access to transmission capacity, and lots of open space to make a project financially viable. In contrast, solar photovoltaics (PVs) are well suited for modular applications of varying scales and can be placed on existing structures, making them a great fit for urban areas where retail electricity rates and demand loads are often highest.

Community solar is appealing in part because, despite broad interest among the public in solar energy, most people don’t have the ability to install solar PV on their own property. A 2008 study by the National Renewable Energy Laboratory found that only 22 to 27% of residential rooftop area is suitable for hosting an on-site PV system after adjusting for structural, shading, or ownership issues. And in places like New York City, where home ownership rates are especially low, only a small number of people have incentives to invest in solar PV.

Community solar projects address this barrier by decoupling solar PV investment from on-site generation. Owners of community solar contribute funds to pay for a portion of a project, and reap benefits proportional to their investment. Community solar projects can be installed on the property of one of the project owners, on a separate private site, or on a shared location, such as local or state government property. Owners can include renters, homeowners, local businesses, even utilities.

Early Projects Suggest Two Different Approaches
Only a handful of community solar projects are complete, with another handful in development, so no definitive model exists. But so far, projects fall into two approaches.
The first and more common is the utility-sponsored approach. These projects are legally owned by a utility, and individuals voluntarily contribute funds to help finance them, either up front or on a monthly basis. In exchange, contributors receive credit on their utility bill equal to the output of electricity from their portion of the investment. Early examples of this approach include the Sacramento Municipal Utility District (SMUD) SolarShares program and the Ellensburg, WA Community Solar Park. These public utilities have been very successful in using this approach to finance solar installation and the concept is spreading quickly.

Despite its popularity, the utility-sponsored approach has some significant limitations. According to an analysis by the New Rules Project at the Institute for Local Self-Reliance (ILSR), utility-sponsored projects can compare unfavorably to the economics of individual ownership. In some cases, contributors never even achieve full payback of their initial investment, making this approach much like other “green power” programs where utility customers simply pay a premium for clean energy. Only where there is a production incentive that generously rewards community projects (such as in Washington State) does this model seem cost-effective for contributors.

Still, for those who cannot invest in solar themselves, the utility-sponsored approach is often the only option. The second approach might be called a true community ownership model, where the risks and benefits of ownership are shared among individual participants, often through an ownership structure such as a cooperative or an LLC. This model is much stronger in concept, but it has proven very challenging to get off the ground, despite strong interest in many communities.

As David Brosch, lead developer of University Park Solar Community in Maryland, one of the first community solar projects in the country, said, “It took us over two years to develop our project structure and only two months to find our members.” The Clean Energy Collective’s Mid-Valley Solar Array in Colorado, a 77.7 kW community solar project, is another early and widely touted example of the ownership approach, which its founders hope to replicate around the country. Compared to the utility-developed approach, these projects have shown to be more attractive investments, with paybacks faster than would be possible through individual solar PV ownership.

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'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."

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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.