ALERT: California Solar Vote Upcoming

The much-anticipated vote on SB-1, the Million Solar Roofs Initiative, will likely take place in the California Assembly by Sept. 9.

Supported by Gov. Arnold Schwarzenegger, the initiative is an ambitious plan to install 3,000 Megawatts of solar electric power on roofs throughout California by 2016. This writer believes all solar power is good and that the opinions of others in the industry are valuable, even if it's a competitor...

"The primary benefit of the Million Solar Roofs Initiative is that it reduces California's power needs during hot summer weekday afternoons," said Barry Cinnamon, President of Akeena Solar. "Without this 3,000 Megawatts of solar capacity, utilities must construct this generation, distribution and transmission infrastructure -- as well as operate and fuel these plants. Ratepayers will ultimately pay for these costs. Solar power is a far better way to generate this capacity since the state also benefits with cleaner air and a better economy," said Cinnamon.

It seems the key to SB-1's future is in the hands of Fabian Nunez (D-Los Angeles), the Speaker of the Assembly. However, at this stage in the game the Speaker is focused on macro issues, and SB-1 is at risk of becoming a casualty in the battle with the Governor and unions.

Challenges to SB-1

There are currently two major challenges facing the adoption of SB-1. The first challenge is that certain unions want all of the solar work in the state to be done using "prevailing wages" - essentially union wages. "When we ran our model using these prevailing wage rates the costs to the state for the Million Solar Roofs Initiative were increased by $750 million," said Cinnamon. (SD Dave: I have nothing against unions, in fact I grew up in a union family. Ideally, union-trained electricians are quite able and they take pride in the quality of their workmanship. However, my experience with union installers is no better or worse than with non-union contractors.)

The second challenge is simply that SB-1 replaces conventionally utility power generation and distribution. It is understandable that utilities would like to continue generating and delivering this incremental power to customers. However, it is only by installing these systems on business and residential rooftops that costs for additional transmission and distribution systems can be avoided.

Assuming you're a California resident and pro-solar, take a stand for SB-1 and contact Assemblyman Fabian Nunez at Assemblymember.nunez@assembly.ca.gov.

While you're at it, express your support to your assembly member at:
http://www.assembly.ca.gov/acs/acsframeset7text.htm

Don't know your assemblyman? Go to: http://www.assembly.ca.gov/defaulttext.asp
Then click on "Find My District."

(Read Akeena Solar's White Paper "California To Save Over $6 Billion From Million Solar Roofs Initiative" in the Renewable Energy Updates link at right.)

Uni-Solar Self-Install Kits

Uni-Solar produces factory-direct kits for homeowners nationwide. They can either be installed by the customer himself or installation can be contracted out. Kit sizes are 1.8kW and 2.5kW and are not sold through any Uni-Solar dealers or distributors. Pricing can be obtained at dbrands@cox.net. Before writing, please try to estimate the size of system you would need. My postings "Sizing Your System" Parts I and II will help you do this.

J.J. Fenton, a San Diego home improvement contractor, decided to purchase a 5kW system (two 2.5kW kits) last winter and installed it with two members of his construction crew this summer. J.J. built his house himself which has a panoramic view of the University of San Diego and Mission Bay. With a combination flat and south-facing roof he knew he had good solar orientation--probably from the day we met by chance while having lunch at a popular Mexican eatery nearly two years ago.

J.J. chose a framed module system to sit on his composite shingle roof none of which is visible from the street. Most of the 80 US-64 watt panels went on the southeast pitched area and the remainder were slightly tilted southward on the flat area of the roof. He offers some sage advice for self-installers.

"The first attempt at any task takes time," says J.J.,"so follow the manual and take time laying out your array. Since the kits are intended to be grid-tied, it's a good idea to get a handle on the local electrical code by asking questions when getting permitted.

"The racking hardware [which hold the panels] is well designed and virtually leakproof. All-in-all, it's a pretty nifty system that gives you every chance to make it work," noted J.J. who has been impressed with Uni-Solar's output even during this mild summer with a rather unusual amount of overcast.

This 5.1kW system will produce an average 8643 kWHrs per year which is about 2/3 of his household demand. However, because he is on SDG&E's tiered system and his PV system always pays the top portion of his bill, he is saving 71% on normal charges with solar. At this writing J.J. is awaiting his rebate from the California Energy Commission and will take his 7.5% state income tax credit when he makes his 2005 tax filings next year.

Update: Solar Incentives

If you already read my August 3 posting "Silver Lining to a Bad Energy Policy." here is some more amplification provided mostly by the Solar Energy Industries Association (SEIA) in Washington.

Specifically, Congress gave sizable tax breaks to the fossil-fuel fellows in the new energy act, signed by Bush on August 8. There's $1.6 billion in new tax credits for new coal technology; $1 billion for gas distribution lines, another $1 billion for oil and gas exploration costs, $400 million and so forth.

The total cost for solar tax breaks to the U.S. Treasury? It's less than $52 million out of a $14.5 billion energy package. That's beer money by comparison but it does show somewhat better support by Washington for solar power and it may encourage more states to initiate new or increase existing incentives. Click on "Solar Incentives by State" in the Links section of this blog for a list of solar incentives in your state.

The new federal incentives increase tax credits for commercial solar installations from 10% to 30% and offers homeowners a credit for the first time since 1985 which is 30% of equipment cost up to $2000. Both incentives are in effect two years beginning January 1, 2006 through December 31, 2007. The solar tax credit can be used for a photovoltaic (electric) system or solar hot water system. Heating systems must not be used for hot tubs or swimming pools. Finally, this IRS credit applies to the net system cost after any state incentives. Uni-Solar enthusiasts could order their kits now for installation after the first of the year and file for the credit by April 15!

The federal incentives are actual credits, not deductions. Homeowners who can take the whole $2000 cap will reduce their IRS tax liability by $2000. They could do this for, say, solar-powered electricity in 2006 and solar hot water in 2007 and get as much as $4000 in IRS credits for both years. The 30% tax credit for business has no limit.

Some states are already adding or increasing their solar energy incentives. These range from low-interest loans, sales tax exemptions, property tax exemptions, income tax exemptions and cash rebates. In Connecticut, for example, residents can get up to $25,000 back on a 5kW system ($5/watt). New York just past an increase in tax credits for solar effective January 1. The cap for New York's 25% credit will rise to $5000--up from $3750. This tax incentive coupled with various utility rebates means solar system costs are offset by 40% to 70%.

California's solar projects last year accounted for most of the 90 megawatts installed last year. When the state assembly returns Sept. 15, Gov. Schwarzenegger's Million Solar Roofs legislation will be high on the agenda. The goal is to add 3000 megawatts of solar energy by 2018, mostly from continuing a $2.80/watt rebate and possible extension of an existing state tax credit.

Meanwhile, the solar industry is lobbying for an extension of the two-year window of the federal tax credits. "We're not trying to be a subsidized industry forever," says Rhone Resch, president of SEIA, "but without long-term incentives that provide market stability, we won't see manufacturing grow substantially in the U.S."

For critics who say solar "must stand on its own" this writer must remind them of the huge favors the U.S. government has given oil and gas, coal and nuclear energy year after year after year...

Uni-Solar Going Outer Space

(While this blog concentrates on residential installations, I think most readers are interested in other applications of Uni-Solar at work. The following is one such example.)

AUBURN HILLS, MI, Aug. 11--United Solar OvonicCorp., a wholly owned subsidiary of Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER), announced today that the Air Force Research Laboratory (AFRL) in Kirtland AFB, New Mexico, has awarded United Solar Ovonic a $6.7 million, 18-month contract to continue the development of its ultra-lightweight, high-efficiency solar cell technology for use in space and airship vehicles addressing defense and homeland security applications.

Today's announcement builds upon the success of earlier contracts awarded by AFRL to United Solar Ovonic to develop its ultra-lightweight solar arrays to be used in space and airship vehicles. The Advanced Space Power Generation Group in the Space Vehicles Directorate of AFRL will administer the contract.

"Our performance goals for the next generation solar arrays include lighter, more stowable and lower cost than those currently available," said Dr. Donna Senft, Program Manager of the AFRL Advanced Power Generation Program at Kirtland AFB. "We are pleased with the performance of United Solar Ovonic's ultralight, high efficiency solar cell technology and the progress made to
date under AFRL contracts to address these goals."

UNI-SOLAR(R) space photovoltaic products offer an ultralight, low-cost alternative to conventional space PV modules made of crystalline silicon or gallium arsenide. United Solar Ovonic's triple-junction modules, originally developed for terrestrial applications, are made of amorphous silicon-based thin-film alloys, which are deposited on a 5-mil flexible stainless steel substrate. By utilizing a polymeric substrate rather than stainless steel, new space cells will be developed that have a specific power density greater than 1,000 watts per kilogram (W/kg), which is significantly higher than what is currently available. A high specific power density is required for airship application. The radiation hardness and superior high-temperature performance of amorphous silicon make it an attractive material for space application.

"This award provides us with yet another opportunity to continue our successful collaboration with the Air Force to develop our ultralight solar cells. This is a valuable technology that will be very beneficial to AFRL and to our nation's security," said Subhendu Guha, President and COO of United Solar Ovonic.

"We are delighted to have been awarded this contract by AFRL. We are opening up a new era of air and space solar energy solutions that are so critical to our nation's future," said Stanford R. Ovshinsky, Chairman and CEO of United Solar Ovonic and President and CTO of ECD Ovonics. "We recently broke ground for a second 25-megawatt module manufacturing facility in Auburn
Hills, Michigan because of the growth in demand for our thin-film, triple junction solar products for terrestrial applications worldwide--an important step in United Solar Ovonic achieving its goal of becoming a leader in this field."

About United Solar Ovonic

United Solar Ovonic, building on technology invented and pioneered by ECD Ovonics, is the world leader in thin-film amorphous photovoltaics. Its existing 25-megawatt production equipment is the world's largest and most advanced machine for the manufacture of thin-film amorphous silicon alloy solar cells and related products used for a variety of applications ranging
from large solar farms for utility-scale applications to charging batteries for solar lanterns. UNI-SOLAR(R) solar cells are lightweight, rugged and flexible, and are ideal as building-integrated photovoltaic roofing systems for residential and industrial customers. ECD Ovonics and United Solar Ovonic hold the basic patents covering the continuous roll-to-roll manufacturing of thin-film amorphous silicon alloy multi-junction solar cells and related
products.

(From the PR Newswire-FirstCall)

Sizing Your System: Part II

By now you should have figured your average kilowatt hour usage over the past six to twelve months. As explained in Part I, if you're paying 8-9 cents per kWHr this is the average cost most Americans are now paying. You could still install a PV system but your motivation likely would be more altruistic than financial. Of course, it could make major financial sense longrange as conventional energy production gets more costly.

Uni-Solar sells two sizes of kits: 1.8kW/DC and 2.5kW/DC. (The former requires about 315 square feet of roof space and the latter, about 450. This general area applies to our framed modules, PV laminates for metal roofs and solar shingles.) After inversion from DC to AC watts the 1.8kW system produces up to 1.53kw/AC. If your house has a good south-facing area with a standard 4/12 roof pitch, figure 97% efficiency with Uni-Solar photovoltaics. So now we know AC production and solar orientation. Next, we need to figure average daily solar radiance.

Click on the PV Radiation Map of the U.S at left. Notice that San Diego is at the southwestern corner of California just above the Mexican border. The color code is light brown which correlates to 5.5-6 daily sunshine hours per day. Figuring conservatively, multiply 5.5 by 365 days and you get 2008 total average radiant hours per year. Now finish the equation:

1.53 (AC watts) X .97 (solar orientation) X 2008 (annual sun hours)= 2980 kWHrs annually or 248/month.

Let's try it with a 2.5kW system which produces 2218 AC watts:

2.218 X .97 X 2008= 4320 kWHrs/yr or about 360/month

If a San Diego household uses 800 kWHrs per month (fairly common) then a 5 Kw/DC system (two 2.5kW kits) will produce 720 kWHrs per month or 90% of demand.

Let's estimate a system size in Chicago. The map shows the Windy City in a bright yellow area at 4.5-5 daily average energy producing hours. The estimate for a 5kW system there is:

4.436 (two 2.5kw kits) x .97 x 1643= 7070 kWHrs/yr or about 589/month.

NOTE: If the ridge of your house is north/south your solar orientation is east/west which is 88% efficient.

These estimates are general but sufficient for sizing a typical home grid-tie system. Data utilized for estimating come from both the National Renewable Energy Labs and standard testing performed under authority of the California Energy Commission.

Now you can estimate any size system--residential or commercial--with fairly reliable results.

Sizing Your System: Part I

Sizing a photovoltaic system to meet all or a portion of your demand is quite easy actually. When considering such a system however, you need to ask yourself a few questions first.

Will a PV system make financial sense? Start by finding out what you're being charged by your utility per kilowatt hour. Take your total monthly charge and divide it by the total kilowatt hours used that month. The national average is 8-9 cents per kWHr. If this is in your range and your bills are small to moderate, installing solar will probably mean more out-of-pocket expense at this time. If you're a heavier user, start by cutting back on consumption if you haven't already. This means replacing old lightbulbs with fluorescent bulbs; getting Energy Star appliances; upgrading pool filters; installing better insulation and solar attic fans; and start switching off lights and computers when not in use.

In San Diego, the five-tiered billing system starts at 13.4 cents baseline and goes up to 20.1 cents per kWHr in the top tier. Such rates coupled with a rebate and tax credit for solar installations makes financial sense for many homeowners.

What incentives are there for solar installations? Go to the "Solar Incentives by State" link in this blog. A U.S. map will come up and then click on your state for a list of incentives for renewable energy. My previous blog (below) "Silver Lining to a Bad Energy Policy" details the upcoming federal incentives for solar.

Financial reasons aside, how does solar benefit the future of energy? One 2500-watt PV installation reduces greenhouse gas emissions by two tons per year by not using coal or natural gas-produced electricity. Contrary to what most people think, oil is used only in Hawaii for producing electricity but reducing use on fossil fuels is making sense both financially and environmentally. Solar-powered electricity also reduces the need for more nuclear power. Even as nuclear plants seem safer than ever, the problem remains on what to do with the waste.

Next week we'll actually size a system to meet your needs in your part of the country.

Silver Lining to a Bad Energy Policy

Last week both houses of Congress passed an energy bill that had been picked apart, hammered, pork filled, maligned and abused from its faint beginnings in the last years of the Clinton Administration. What resulted is comparable to the greed and avarice of the wicked oil barons of 100 years ago.

Renewable Energy Access reports that despite lawmakers' proclamations the bill could lower gas prices and reduce America's dependence on foriegn energy sources, the bill will do little to change either. In fact there are few, if any, tangible benefits for the regular U.S. citizen.

"If I was a homeowner and flipping through a newspaper story on the energy bill, I would get pretty depressed at the $14 billion of giveaways for industries that, frankly, are enjoying record profits," said Rhone Resch, executive director of Solar Energy Industries Association (SEIA). "But the one provision in the bill that all Americans can take advantage of right away is to install solar on their roofs."

Indeed, the solar section of the bill is the best national legislation that's happened to the solar industry in over 20 years. Once signed by Bush (probably after yet another vacation, of course), here are the solar benefits:

• The new act will increase the permanent 10% business energy credit for solar to 30% for two years beginning January 1, 2006. Eligible technologies include photovoltaics, solar water heaters, concentrating solar power, and solar hybrid lighting. Unless extended, the 10% tax credit goes back into effect on two years later.

• The law establishes a 30% residential energy credit for solar for two years, again beginning this January. This credit is capped at $2000 for residential systems.

For Californians the new energy act will help offset the state energy tax credit which ends December 31. This state credit is now 7.5% of the system cost after deducting the California Energy Commission rebate. On larger systems the 7.5% tax credit can be considerably more than the $2000 cap the feds will be giving. But it's definitely better than nothing.

As one who experienced the student anti-war activism of the early 70s and later as a GI in Germany, this writer has to take one last parting shot...

Just as our troops invaded Iraq in March 2003, I remember Bob Simon of CBS News report that if all American cars were made to get 40 miles per gallon of gas, the U.S. wouldn't need one drop of foriegn oil. The new energy act does nothing to increase gas efficiency--in fact certain loopholes have actually decreased gas mileage in this country since the 80s.

Think what could happen if we didn't need foriegn oil. The Arabs wouldn't have nearly the funds to threaten us financially or militarily. European prices for oil could come down while alternatives in hydrogen cells, solar, wind and geothermal could get more deeply established.

Obviously the best reason to mandate better gas mileage in American cars is that we wouldn't need to pay for oil with blood anymore.