SAN DIEGO — The United States is poised to become the world’s largest user of solar power in the next decade, experts say, thanks in part to Silicon Valley innovation and the country’s vast land area and amount of sunshine.

And that title will bring an unexpected benefit: Manufacturing jobs arriving in the United States rather than being shipped overseas. Solar companies have determined that it makes economic sense to manufacture close to your market, because among other factors it reduces shipping costs.

October 20, 2008 (New Orleans, LA)  Today, executives with New Orleans-based South Coast Solar, Louisiana’s leading provider of solar electric panels, solar hot water heaters, and solar pool heating products, announced that the Federal Government has dramatically improved the tax credit for residential solar energy systems. On Friday, October 3, by a vote of 263 to 171, the U.S. House of Representatives passed historic legislation that extends the 30-percent Federal Investment Tax Credit for both residential and commercial solar installations for 8 years. This landmark legislation is part of H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis.  It is the most significant federal policy ever enacted for the solar industry.

“Coupled with the fact that on January 1st, 2008, the State of Louisiana initiated one of the most forward-thinking renewable energy rebate programs in the country, providing a 50% tax credit for each renewable energy system for homeowners and multi-family apartments, Louisiana residents now have an historic opportunity to affordably integrate renewable energy systems into their residences” said Troy Von Otnott, President of South Coast Solar.  “The removal of the $2,000 cap on the Federal Investment Tax Credit, in addition to Louisiana’s 50% Tax Credit for residents and multi-family apartment owners, provides Louisiana residents an additional $5,500 in tax credits on a typical $25,000, 3kW residential solar energy system, which produces over 4,000 kilowatt hours annually of clean energy.  Once the resident is reimbursed by federal and state tax credits on their annual tax returns, the final cost of a 3kW solar energy system is $5,000.  An 80% combined tax credit is going to create a great deal of clean and green renewable energy in Louisiana,” said Von Otnott.

“Additionally, with no end in sight for upwardly spiraling fuel costs, worldwide automakers are re-tooling their manufacturing plants to soon offer an extensive lineup of electric cars.  This presents a once-in-a-generation opportunity to have a dual impact on carbon emissions from both your home and vehicle with the same solar system.  These important clean energy subsidies help level the playing field for environmentally responsible homeowners who want to address climate change and simultaneously save money at home and, in the near future, on the road”, said Scott Oman, Chief Technology Officer of South Coast Solar.

The utilization of green solar power for homes, businesses and automobiles will enable Louisianans to live, commute, work and play in a more environmentally responsible manner using less utility-generated energy, which for owners will translate into significantly lower energy bills.  South Coast Solar was recently tapped by Brad Pitt’s Make It Right NOLA Foundation to design, install and permit solar electric systems for the six Make it Right houses that have been completed to date.

The Solar Investment Tax Credit (ITC) provisions will:
· Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations;

· Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective for property placed in service after December 31, 2008);

· Eliminate the prohibition on utilities from benefiting from the credit;

· Allow Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit;

· Authorizes $800 million for clean energy bonds for renewable energy generating facilities, including solar.

With a surface temperature of some 6000°C, the colossal fusion reactor that is our sun radiates truly prodigious amounts of energy. Indeed, so much power is emitted that, residing some 93 million miles away, the upper atmosphere of the Earth continuously receives an average of around 1.4 kW/m².

After passing through the atmosphere, the light reaching the surface of the Earth is mostly split between the visible and infrared spectrum, but of the energy which remains, the atmosphere, oceans and land masses absorb approximately 3850 ZJ (x1021) per annum. By way of perspective, total global energy consumption is currently estimated at around 500 EJ (x1018).

It is therefore somewhat surprising that use of direct solar radiation has not focused more closely on solar thermal technology. In terms of investment, significantly larger sums worldwide are ploughed into solar PV technology. This is partly due to the relative investment requirements necessary to initiate production. The comparatively simple technologies and materials required in solar thermal systems have allowed small and medium enterprises to dominate the sector. Conversely, the high investment costs associated with solar PV manufacturing have largely precluded smaller players from entering the market and left the field dominated by major industrial operations such as Sharp or BP.

Nonetheless, the relative levels of R&D and manufacturing investment between PV and solar thermal become even more surprising when considered in terms of their relative energy efficiencies. Experimental PV systems are currently yielding maximum efficiencies of over 30%, while the most efficient commercially available solar thermal technologies are yielding efficiencies of approximately 70% under optimum conditions for load, positioning, temperature and such like. It is no surprise that solar thermal is frequently referred to as ‘the sleeping giant of renewables’ by its proponents.

Solar thermal principals

A number of technologies exist for the extraction of thermal energy from light, but all rely on the same physical principals. The absorption characteristics of a material are of course determined by the frequency of light reaching the surface. An ideal solar absorption surface is one with minimal reflectance, with high solar absorption characteristics across a wide range of frequencies, and with a low thermal emittance.

Typically, solar absorbers are made from either copper or aluminium sheets or plates — materials with a good thermal conductivity — with an efficient absorber coating, such as a matt black paint, or more sophisticated ‘selective’ absorber coatings.

According to the US National Renewable Energy Laboratory (NREL), selective absorber surface coatings can be categorized into six distinct types: intrinsic; semiconductor-metal tandems; multilayer absorbers; multi-dielectric composite coatings; textured surfaces; and, selectively solar-transmitting coating on a blackbody-like absorber.

Intrinsic absorbers use a material having natural properties that result in the desired spectral selectivity. Semiconductor-metal tandems absorb short wavelength radiation and have low thermal emittance. Multilayer absorbers use multiple reflections between layers to absorb light and can be tailored. Metal-dielectric composites, or cermets, consist of fine metal particles in a dielectric or ceramic host material. Textured surfaces have a high solar absorbance by way of multiple reflections among needle-like, dendritic, or porous microstructure. Selectively solar-transmitting coatings, meanwhile, are typically used in low-temperature applications.

By exploiting these absorption characteristics, solar energy is collected by a working fluid — frequently water but also molten salts or air — and the heat is used in a wide variety of both direct and indirect applications.

Applications for solar heating and cooling

From the passive direct heating of swimming pools and domestic hot water, space heating and cooling, through district heating and industrial process steam, and on to multi-MW-scale power generation installations, the abundance of potential solar thermal energy is seemingly matched only by the variety of applications for which it is suitable.

Inevitably, larger systems are more appropriate for applications in which the working temperature is more than 80oC or when there is a large year-round thermal demand. Hotels, nursing homes and hospitals are typical high volume applications which can benefit from the use of larger thermal solar installations. Higher temperatures also enable the use of adsorption chillers and thus cooling applications.

However, although district and block heating applications for solar thermal have the major advantage of lower specific costs where district heating networks already exist and are not taken into consideration, the largest source of demand for the technology remains the domestic sector.

With the potential to provide an average northern hemisphere household with up to 70% of its domestic hot water needs, solar thermal systems can make a significant difference to domestic greenhouse gas (GHG) emissions. For example, households account for nearly 25% of UK GHG emissions, of which half is expended for space and water heating. In central and northern Europe it has become relatively common to install solar thermal systems that provide heat for both space and water.

Commercial and industrial buildings often use the same types of technologies that are seen in the residential sector, but may also employ technologies that, because of their size or performance characteristics, would prove impractical or too costly in a domestic setting. A good example comes from the solar air heating that requires the type of facade typically seen on a commercial building such as a distribution warehouse. However, process heating, and even cooling using absorption chillers, are also good examples of industrial and commercial applications of solar thermal technology.

Solar thermal company Paradigma, for instance, are marketing a commercial-scale vacuum tube type system in which pure water, rather than an antifreeze solution, is used. This approach allows the working fluid to be used directly in process applications without the complications associated with potential chemical interactions between the steam and process or heat exchanger systems. The technology was launched as the Aqua System — with more than 25,000 systems installed so far according to Paradigma — the new commercial-scale offering was launched in early 2007. The company has now installed something over 180 systems.

In each case, supplying space heating or cooling, process steam and such like through the use of solar thermal technology saves both expenditure and fossil-fuel alternatives.

Technology types

The simplest type of solar collectors are typically found on outdoor swimming pools and consist of a transparent or black plastic or rubber sheet through which the pool water is heated passively. The energy is stored in the pool water itself. More sophisticated systems circulate the pool water through the sheet for improved absorption characteristics.

Vacuum tube collectors have more than 95% market share in China, which is by far the largest solar thermal market, and therefore worldwide the most commonly found systems are vacuum or evacuated tube type.

Normally, an array of tubes are connected together to form a collector field and within each vacuum tube runs a central absorber surface attached to a pipe carrying the working fluid. On the inside, a reflector may also be found, maximizing radiation falling onto the absorber surface.

As with the domestic vacuum flask, the evacuated tube which surrounds the absorber surface minimizes thermal emissions — a tube also significantly reduces re-emission of energy. Indeed, with an internal temperature that may reach more than 200oC in an overheat or stagnation situation, the tube may be cool to the touch. Such systems are consequently more efficient than simpler designs and tend to operate at higher temperatures.

Due to the effectiveness of the insulating layer, evacuated tubes can also be more efficient in colder conditions, but they are also more expensive to manufacture and more fragile. Furthermore, product quality issues can arise.

An alternative is the flat-plate collector. In its most crude manifestation, the flat plate collector consists of an insulated box with an absorber surface, say black painted copper or aluminium. Behind this absorber sheet run copper tubes which carry the working fluid, typically either water or an antifreeze solution. These tubes are welded to the back of the absorber surface either ultrasonically — in the case of copper absorber and copper circulation tubes — or using laser welding technology where, say, an aluminium absorber is matched with copper circulation pipes. Often, a transparent glass cover over the absorber surface improves the thermal characteristics of the flat plate collector by creating a greenhouse effect that increases the temperature of the absorber surface well above ambient. This glass may ‘solar’ (or low-iron) glass which has a high transmissivity allowing more solar irradiation to pass through.

A novel hybrid design of both flat plate and evacuated tube has been developed by one manufacturer and recently launched by Genersys. Working with partners ThermoSolar, Genersys says its systems combine the aesthetic appeal of a flat plate, glazed, solar panel with the insulative qualities of vacuum collectors. In addition, when the vacuum is lost on the new evacuated flat plates, re-evacuation is easily achieved, the company says.

Another design of solar thermal system uses air as the working fluid. Sometimes known as unglazed transpired collectors (UTC), these systems can raise the air temperature by more than 20°C and deliver outlet temperatures of 45°-60°C.

Typically such systems use an absorber facade, likely to be nothing more sophisticated than galvanized steel sheeting painted a dark colour, and set — in the northern hemisphere - on the south-facing surface of a large building. As sunlight falls on the building, energy is absorbed, which is then transferred to ambient air drawn into the building through a matrix of small airholes in the absorber. An air gap between the perforated steel sheet and the structure of the building allows the heated air to be sucked in through the holes and out into the ventilation system.

This heated air may be used directly — employed for space heating or drying, or to provide pre-heating for air or process requirements for instance. It may also be used indirectly, for example heating water.

Such developments are ideally suited to new build projects. For example, Latvia will soon be home to the largest UTC systems in Europe with some 2100 m² of solar panels, delivering more than 1 MW of thermal energy to a new warehousing complex.

Developed by Conserval Engineering, the SolarWall installation will be used for heating and ventilation purposes when completed by the end of summer.

The short payback period of 3-12 years for such systems can also make them a cost-effective alternative to flat plate or vacuum tube technology.

Storage and control

In all types of solar thermal collector system, after the working fluid has passed through the absorber it is either used directly or transferred to some type of insulated storage medium or thermal reservoir. Under normal operations, if the absorber is found to be more than a few degrees warmer than the storage tank, circulating the working fluid will yield usable energy.

Unlike electrical energy, thermal energy is relatively easy to store and a range of solutions have been explored. These technologies use a secondary material or fluid, such as water, steam, concrete, graphite, molten salts, and phase change materials, which absorb the collected energy through a heat exchanger. Commercial-scale projects have advanced this technology sufficiently to be able to generate electricity throughout the hours of darkness.

In a typical domestic system, water from the collector is passed through a heat exchanger, often within the well insulated storage tank itself, to heat water which is stored until required.

For example, in domestic systems which use an antifreeze solution in the absorber circuit, usually by adding a small amount of glycol propylene, the water which is actually used does not enter the collector at all. This type of arrangement, so-called fully-filled, is typically found in northern Europe or the US where sub-zero temperatures could see the working fluid freeze — damaging the absorber. Fully-filled systems also usually have expansion vessels to absorb steam in an overheat scenario.

An alternative solution to the use of antifreeze and expansion tanks are so-called drain back systems. When a set temperature is reached, the pump turns itself off and the water in the system drains back into the tank. However, while this does stop the pipes from freezing, it also means that the collector cannot provide hot water in very cold conditions.

By far the most common solar water heating systems are passive circulation systems, so-called solar siphons or thermosiphons. Dominating the market in countries such as China, Israel, Turkey, Cyprus, and Greece, such systems rely on gravity and the process of convection to circulate the working fluid as it is heated.

An alternative is to actively circulate the working fluid with a electric pump, which uses a small amount (less than 10% of the total energy produced) of electricity.

Even so, despite the relative simplicity of many aspects of solar thermal technology, controls for such systems are generally more sophisticated than may be found on an equivalent conventional installation. The thermal protection systems seen in drain-back systems are one example. However, perhaps more significant is the differential thermostat that determines when the circulation pump will be activated in pump-circulated systems. In addition to the operational and safety function requirements of the solar thermal system, such controllers may also operate a back-up on-demand heating system that can be used when solar output is low.

Room for growth

There is no dispute that solar thermal has a vast potential to improve the renewable energy contribution of many nations, but this goal remains some distance away. Part of the issue is the widespread perception that solar thermal technologies are only suitable for those regions with high-intensity insolation. This is a misconception. For instance, as Kevin Brennan, head of sustainability for Velux, says: ‘Currently only 0.004% of the UK’s housing stock has solar water heating, yet over 76% of homes in this country could successfully make use of this technology.’ Brennan continues: ‘While installing solar thermal in all homes across the UK could prove a challenging task, a commitment from housebuilders to incorporate this technology into all of their new builds could still have a significant impact on reducing the UK’s carbon emissions. Within 30 years, the new homes being built today by housebuilders will be approximately 30% of the entire housing stock, so even small gains today will be significant gains in 30 years time.’

Even so, while it may not have achieved even close to the penetration level its efficiency, simplicity and cost-effectiveness may warrant, there is cause for optimism.

A major boost for the industry is the projected development of new, cheaper, materials. While rising prices in copper have seen a number of manufacturers switching to cheaper and lighter aluminium as an absorber surface, the use of alternatives such as polymers is also attracting a great deal of interest.

Although current generation plastics tend to become brittle under high levels of sun exposure and also tend to suffer in an overheat scenario, there has been progress and such developments are expected to dramatically reduce the cost of solar thermal systems in the next few years.

In addition, a number of large buildings material and equipment companies such as Vaillant, and Buderus, part of Bosch Thermotechnology Ltd, have introduced solar thermal packages of late. There is growing interest among developers too, with a number of recent acquisitions by larger renewables players, now ready to offer a full range of technologies. For example, Renewable Energy Systems Ltd (RES) announced the acquisition of solar thermal company Future Heating Ltd this year.

Policy drivers related to climate change are also having an impact, with the forthcoming EU Renewable Energy Directive raising the profile of solar thermal among commercial, industrial and commercial operations.

Perhaps most fundamental to the growth of solar thermal installation, the issues of energy security of supply and the spiralling costs of fossil fuels are certain to improve the economics of alternatives.

However, it should also be remembered that solar heating and cooling technology is nothing new. In the 1870s, French solar pioneer Auguste Mouchout demonstrated its potential by making ice using a solar steam engine attached to a refrigeration compressor. Despite this remarkable success, his project was abandoned shortly thereafter as falling coal prices rendered it uneconomic.

Times have certainly changed, and once again it seems that the conditions are right for solar thermal to come out from the shade.

Source: Renewablenergyworld.com

Posted By: Butler Ives

In 2007, DOE named New Orleans one of 13 Solar America Cities to help accelerate the adoption of solar technology at the local level. A large part of the New Orleans’ comprehensive plan for the expansion of solar technology is teaching the technology and training a solar energy workforce. The LTC Jefferson campus is the sole provider of NABCEP approved solar electric system training in the New Orleans area.

About the Solar Electric System Training Course

The training course is a combination of lecture; hands on training; on-the-job training; real world solar applications; solar installation contractor training; National Electrical Code (NEC) information; explanations of The State of Louisiana and Federal tax credit incentives; and Louisiana solar installation contractor requirements.

The classes are very interactive and include much class participation. The “on-the-job-training” includes the complete installation of a fully functional Solar Electric system, from installing the solar panels on the roof to the balance of systems which are completely wired and functioning.  There is a total of two days of hands-on installation training that includes all materials and tools to do the job right.

This course teaches the NABCEP Photovoltaic (PV) Entry Level Certificate of Knowledge learning objectives, and has been approved by NABCEP.  Students that complete the class will qualify to take the NABCEP Certificate of Knowledge test.   The LCTN certificate of training, which all course graduates receive, will satisfy one of the requirements needed to be a solar system installation contractor in Louisiana.

Anyone interested in learning about or working in the solar industry or starting a solar energy company may attend this class. No particular skills are needed.  A construction background and/or electrical experience are helpful.

To register for the class, or for more information about the class, please call Stephen Shelton, director of LCTN, at (504) 343-4638 or visit the website at www.lacleantech.net <http://www.lacleantech.net> .

Background: Tax Credits, Partnerships Accelerate Solar Technology in Louisiana
The LTC Region 1 solar electric system training course offering is part of a statewide effort of the Louisiana Community and Technical College System to help make it easier for Louisiana to go green. The system has formed a partnership with LCTN, a non-profit organization that works to promote the growth of clean technology businesses in Louisiana and to encourage environmentally responsible economic development. Together they are bringing solar technology installation training to Louisiana Technical College campuses.

These efforts come on the heels of 2007 legislation authored by Senator Nick Gautreaux. Senate Bill 90, which was signed into law as Act 371, provides a tax credit to homeowners and apartment owners who install or use certified solar energy systems. The tax credit has been called the best in the nation for those who use solar electricity systems in their homes. In order for more citizens to take advantage of this tax credit, more installers needed training but training in the state was not readily available.

The status of solar training availability in Louisiana gained momentum thanks to the U.S. Department of Energy (DOE) Solar America Initiative. In 2007, DOE named 13 U.S. cities as Solar America Cities. The partnership between DOE and these cities was created to help accelerate the adoption of solar technology at the local level, and New Orleans was one of the 13 cities chosen. A large part of the city’s comprehensive plan for the expansion of solar technology is teaching the technology and training a solar energy workforce.

DOE and LCTN looked to the LCTCS when searching for a place to conduct the training. The LTC Jefferson campus soon began offering the solar technology installation course, giving students hands-on experience in installing solar panels. The first Solar Installer Training course that began in June was a great success and produced 20 solar energy graduates in mid-July. At that time, there were only five individuals in the state that were certified solar installers. The second class in September produced 16 additional graduates.

The LTC Jefferson campus has become the sole provider of training in the New Orleans area, helping the city and DOE to achieve their vision by training installers that will work diligently to assist citizens in switching to renewable power sources.

WASHINGTON, DC, October 3, 2008 (ENS) - Renewable energy businesses are breathing a sigh of relief today as the extension of the production and investment tax credits that benefit their industries were approved by Congress as part of the $700 billion bail-out package for the financial industry.

The House of Representatives passed Emergency Economic Stabilization Act of 2008, this afternoon by a vote of 263 to 171, and less than two hours later, President George W. Bush signed it into law. The Senate passed it on Wednesday.

House Speaker Nancy Pelosi of California said that she is “pleased that the bill includes an extension of tax cuts for clean renewable energy that will create and save half a million good-paying paying jobs in America immediately.”

“This was a part of our energy bill last year; it did not survive the Senate. It now has become a part of this legislation. And it is paid for. We fought hard to include these critical tax cuts … because they are central to job creation,” Pelosi said.

The tax credit package will extend the renewable energy production tax credit for one year and the investment tax credit for eight years. The extensions will be partly paid for by a change in the tax code for the oil and gas industry.

Greg Wetstone, senior director of governmental and public affairs at the American Wind Energy Association, said in a statement, “We salute Members of Congress in both parties who fought under difficult conditions to keep the renewable energy production tax credit and small turbine investment tax credit on the agenda until the very end, and then pushed them across the finish line.”

Wind turbine and flag at the Maple Ridge Wind Farm in Lewis County, New York (Photo PPM Energy)

“These tax credits are essential to the continued growth of wind energy, to the economic and energy security of the United States, and to a successful beginning in the fight against global warming,” said Wetstone.

“We look forward to working next year with a new Congress and administration to fashion a serious long-term clean energy policy that increases domestic energy, increases our reliance on clean renewable energy, and creates jobs for Americans,” he said.

The one year production tax credit extension also applies to other energy sources such as geothermal; closed-loop biomass; hydropower; landfill gas; and trash combustion facilities.

It also creates a tax credit for a new energy production category – marine renewable - which is energy derived from waves, tides, and currents.

The bill creates a new limitation on the amount of credits that can be claimed with respect to property placed in service after 2009.

The measure increases the tax credit limitation for fuel cells from $500 to $1,500 per half kilowatt of capacity.

The bill provides tax credits for advanced coal electricity projects with highest priority given to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions at a cost of $1.4 billion over 10 years.

“This bill is a major step in our long journey toward energy independence and ensures that solar energy will be a significant part of America’s energy future,” said Rhone Resch, president of the Solar Energy Industries Association, SEIA, which has lobbied long and hard for the tax credit extensions.

String ribbon solar cell technology combines attributes of conventional crystalline silicon and emerging thin films. (Photo courtesy Evergreen Solar)

He said 60,000 Americans are employed by the solar energy industry.

“This long-term extension of the solar tax credits will create a domestic solar industry with hundreds of thousands of jobs while providing clean, affordable, carbon-free energy to millions of American families, businesses, and communities,” said Resch.

The solar investment tax credit provisions will extend for eight years the 30 percent tax credit for both residential and commercial solar installations.

The $2,000 monetary cap for residential solar electric installations is eliminated and so is the prohibition on utilities from benefiting from the credit.

It also authorizes $800 million for clean energy bonds for renewable energy generating facilities, including solar.

The solar tax credits were originally enacted in the 2005 and have created unprecedented growth across the United States where the amount of solar electric capacity installed in 2007 was double that installed in 2006.

“By passing this bill, Congress has finally given the solar energy industry ‘policy certainty’ that will attract investment, expand manufacturing and lower the cost of solar energy to consumers,” said Roger Efird, SEIA chairman and president of Suntech America, a Chinese solar power manufacturing company. “This will allow companies like mine to move forward with expansion plans to serve the growing U.S. market.”

“This bill puts the Sun to work for every American,” added Resch. “And by 2016, we expect solar energy to be the least expensive source of electricity for consumers.”

Of the entire $700 billion bail-out package, Speaker Pelosi said that the need for this measure is “urgent” and that the version passed today is much improved over the version rejected by the House on Monday.

“To protect the taxpayers, we insisted on tough oversight and accountability,” Pelosi said, adding, “”We also reformed CEO compensation and [put] an end to golden parachutes.”

House Republican Whip Roy Blunt of Missouri said, “The action we were forced to take this week on the House floor was extraordinary, difficult, and necessary. And though not a perfect bill, I was proud to lend my hand to the process in a way to help ensure taxpayer protections were included, and unrelated special-interest give-aways were left out.”

Source:  Environment News Source

Posted by:  Butler Ives

Such solar tax credits, originally enacted in 2005, are generally recognized to be essential to help the younger industry compete against the (readily subsidized) coal, nuclear and oil industries, and to allow increased competition to drive solar products down the cost curve.

The industry has been thirsty for a show of government support for the many months during which the 30 percent tax credit was set to expire; the long, uncertain flirtation threatened the 60,000 people working in the solar industry, $230 billion in investments, and to reverse the doubling of solar electric capacity achieved between 2006 and 2007. Foot-dragging may even have artificially depressed US market demand during that time, sending big solar companies to nations like Germany, which has passed 20-year supports for sun energy. For those in the know, winning this extension–to last eight years, no less!–has been a hard slog. So when the bailout news broke, Wall Street may have been merely relieved–but Silicon Valley, incubator for some of the most exciting solar breakthroughs, was reportedly in full swoon.

Some executives hauled out Champagne. Solar power advocates in San Francisco threw an impromptu party at a downtown bar.

“It’s a fantastic day for the renewable-power industry,” said Julie Blunden, vice president for public policy at SunPower Corp. of San Jose, after picking up a bottle of bubbly. “This is one of those few times when you can tell you’re at a turning point.”

Though the bailout ended up with a less than desirable number of legislative hangers-on (cf. the arrow-factory earmark that 337 members of Congress felt was necessary), this was a crucially important addition, geared at stopping the number of new solar projects from plunging, Dow-style, over the next several years, and to keep the notion of green job creation viable as the country’s unemployment numbers tick up. A one year production tax credit also applies to other energy sources such as geothermal, biomass, hydropower, and wave energy–a new category. The only snag: Tax breaks for wind production were only extended for a single year. So although an encouraging amount of track has already been laid, we may be fighting this battle all over again in 2009.

Source:  The New Republic

Posted by: Butler Ives

WASHINGTON – Today, by a vote of 263 to 171, the U.S. House of Representatives passed historic legislation that extends the 30-percent federal investment tax credit for both residential and commercial solar installations for 8 years. This landmark legislation is part of H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis. It is the most significant federal policy ever enacted for the solar industry. President Bush has vowed to sign the bill into law. The Senate passed the bill on Wednesday night.

“This bill is a major step in our long journey toward energy independence and ensures that solar energy will be a significant part of America’s energy future,” said SEIA president Rhone Resch. “This long-term extension of the solar tax credits will create a domestic solar industry with hundreds of thousands of jobs while providing clean, affordable, carbon-free energy to millions of American families, businesses, and communities.”

“On behalf of the 60,000 Americans employed by the solar energy industry, we would like to thank Leaders Reid and McConnell and Senators Baucus, Grassley, Cantwell and Ensign for their dogged support of the solar tax credit extension. In the House we are thankful to Leaders Pelosi, Hoyer, Boehner, and Blunt, and Chairman Rangel, Ranking Republican McCrery and Rep. Camp among many others who have long worked to bring solar energy to the mainstream. These leaders have broken through partisan politics and have provided a bright future for solar energy in the United States,” said Resch.

“By passing this bill, Congress has finally given the solar energy industry ‘policy certainty’ that will attract investment, expand manufacturing and lower the cost of solar energy to consumers,” said Roger Efird, SEIA chairman and president of Suntech America, a leading Chinese solar power manufacturing company. “This will allow companies like mine to move forward with expansion plans to serve the growing U.S. market.”

“This bill puts the sun to work for every American,” added Resch. “And by 2016, we expect solar energy to be the least expensive source of electricity for consumers.”

The solar investment tax credit (ITC) provisions will:

· Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations;

· Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective for property placed in service after December 31, 2008);

· Eliminate the prohibition on utilities from benefiting from the credit;

· Allow Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit;

· Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.

The solar tax credits were originally enacted in the 2005 and have created unprecedented growth in the U.S. The amount of solar electric capacity installed in 2007 was double that installed in 2006.

“Over the last 2 years, these tax credits have turned the solar industry from a small, cottage industry into an economic engine for America. Electricians, plumbers, roofers and construction workers can now get back to work. These jobs are the backbone of the American economy and the solar industry is creating them at a time when they are needed the most,” said Resch.

According to a new economic study by Navigant Consulting, Inc., the 8-year extension of the ITC will create 440,000 permanent jobs and unleash $325 billion in private investment in the solar industry. This study did not factor in elimination of $2,000 monetary cap on the residential credit, so the actual job creation and investment could be even greater.

“This is a big boost for the residential market in particular, allowing homeowners to contribute to our nation’s energy independence,” said Efird. “It also opens the floodgates for building large, utility-scale solar power projects that need longer timeframes to complete.”

To date, there are 27 such utility-scale solar power projects totaling 5,400 megawatts of power in various stages of development; most were on hold due to uncertainty surrounding the expiring tax credits.

Because solar energy components are manufactured near their markets, this extension will create manufacturing and installation jobs in all 50 states. The states that will enjoy the largest economic boost are California, Florida, Arizona, New Mexico, Nevada, New Jersey, Massachusetts, New York, Oregon, and Washington.

Similarly, the economies of Pennsylvania, Michigan, Ohio and the rest of the Great Lakes region will grow significantly as a result of the extension. This area of the country has suffered greatly from a huge decline in jobs in the automotive and traditional manufacturing industries.

According to the same study, more than 28 gigawatts of electricity will be produced from solar energy by 2016 – enough to power more than 7 million homes.

“Success has not come easy. It required a strategic campaign that included dedicated SEIA staff, a committed board, and active membership all focused on one goal. It took seven votes in the House and 10 votes in the Senate, but in the end, Congress came through. This effort has established SEIA as a major energy player on Capitol Hill,” said Resch. “We have a lot of opportunity in front of us and will be back next year to work on critical issues such as transmission infrastructure, renewable electricity standards, and combating global warming.”

Source:SEIA

“Essentially they all agree on the solar aspect of it,” Monique Hanis, a spokeswoman for the Solar Energy Industry Association, said before news of Friday’s action. “I think we have a good chance, but time’s running out.”House Ways and Means Committee Chairman Charles Rangel, D-N.Y., said Friday it was “shameful” that the Senate would give the House a take-it-or-leave-it ultimatum on the tax package. “They shouldn’t have the arrogance of saying they aren’t even going to look at it.”

Rep. Dave Camp, R-Mich., said Democrats should face the reality that their bill “will never actually deliver the tax relief it is promising . . . and it will never be enacted into law.”

U.S. Rep. Gabrielle Giffords, D-Ariz., introduced a bill earlier this year to extend the credit. That bill never passed, but Thursday she urged the House to pass the bill.”Solar power is clean, domestic and renewable. It is going to bring us closer to energy independence, and it will provide powerful economic benefits across our great nation,” Giffords said on the House floor.

The House voted 226-166 Friday morning to extend billions in tax credits for renewable energy. Without the credit, the price of a solar system is out of reach for many homeowners. The loss of such incentives would double the net cost of a solar water heater, a common entry-level system.

The benefits under the Senate bill would be dramatically better for high-end residential solar investors. For solar panel systems that often cost $30,000 or more, the credit would go from the current cap of $2,000 to more than $10,000.Under the $2,000 cap, the credit is not really a factor for those consumers, said Kevin Koch, owner of Technicians for Sustainability, a local solar equipment dealer.

“The extra $2,000 isn’t going to make or break that system,” Koch said.Mohyeddin Abdulaziz, 61, recently put solar panels and a solar water heater on his home near North Craycroft Road and East Pima Street. His systems cost about $38,000 combined, making the tax credits just under 10 percent of his cost.”The tax credit is not that great. The most important incentive is what TEP provides,” said Abdulaziz, director of information technology for the University of Arizona’s James E. Rogers College of Law. Tucson Electric Power’s rebate - $3 per kilowatt of power generation, or about 40 percent of the cost for most customers - wa$17,000, he said.

The (Arizona) state credit is 25 percent of the purchase price up to $1,000. That credit applies to any “direct use” of solar energy, including active and passive water heaters, photovoltaic cells and skylights, said Katharine Kent, owner of The Solar Store, another solar equipment dealer.The state credit is set to expire in 2012, but it has been extended numerous times since it began in the 1980s. Kent has never heard of any legislator opposing it.With the federal credit set to expire, business has picked up for Koch. His company is booked solid through the end of the year.
“Everybody’s rushing,” he said.  Businesses are also watching. Millions of dollars in investment are on hold, and many projects would likely be canceled if the business credit - 30 percent of the investment with no cap - were to expire.

A study funded by an arm of the Solar Energy Industry Association found that extending the credits for businesses would create 440,000 jobs by 2016. Arizona would get 19,000 of those jobs, the study said.”No state has more to gain from passage of these tax credits than Arizona,” said Giffords spokesman C.J. Karamargin.Extending the credits would also spur $232 billion in investments, the study claimed.

Much of that money would be spent on major projects - some of which are on ice while investors wait to see what Congress will do, Hanis said.The Arizona Corporation Commission gave its approval Thursday for Arizona Public Service Corp.’s planned solar farm near Gila Bend. That project would evaporate without the tax credit, Karamargin said.Tax credits for homeowners and business owners have helped the solar energy industry grow in recent years. During 2007 alone, solar equipment manufacturing grew 74 percent in the United States, Hanis said.The Solar Store, which opened in 1999, has had a steady rise in the number of homeowners and builders using solar, Kent said.But the supply of solar panels has slowed to a trickle because manufacturers didn’t want to build stockpiles that would sit idle if the credit ends, Koch said.That slowing of supply while demand rose drove the price of the panels up in recent months, he said.The credits are vital because they help keep costs down, Abdulaziz said.”We all agree solar is good, but how do you make this available to the average person?” he asked.

Tax credits are an answer, he said.

Source: Tuscon Business Edge

Posted by:  Butler Ives

“The benefits of green homebuilding must be accessible, and affordable, for every American family,” said Michelle Moore, senior vice president, U.S. Green Building Council, which develops and administers the LEED Green Building Rating System for homes, offices, schools, hospitals and other buildings nationwide.

“Being able to afford your utility bill is as important as being able to pay your mortgage,” Moore added.  “Green homes are shining through as the bright spot in an otherwise gloomy housing market.”

The survey estimates that within the last three years more than 330,000 market rate homes with green features have beenbuilt in the United States, representing a $36 billion per year industry. An estimated 60,000 of those homes were third-
party certified through LEED or a local green building program.

“Fully committed to sustainability for the long-term, green home buyers and remodelers cut across all demographic lines, regardless of income, zip code or anything else.  Builders are seeing great interest in green across all income levels,”saidRobert Ivy, vice president and editorial director of McGraw-Hill Construction.

“We‟re crossing the tipping point for green home building,” added Harvey M. Bernstein, McGraw-Hill Constructionvice president of Industry Analytics, Alliances and Strategic Initiatives. “Concerns about energy costs, health and even resale value are adding up green for builders, buyers and renters. Green homes are here to stay.”

Source:  US Green Building Council

The results indicate a broader demand by property investors and tenants for buildings that have earned either LEED® certification or the Energy Star® label and strengthen the “business case” for green buildings, which proponents have increasingly cast as financially sound investments.

According to the study, LEED buildings command rent premiums of $11.24 per square foot over their non-LEED peers and have 3.8 percent higher occupancy. Rental rates in Energy Star buildings represent a $2.38 per square foot premium over comparable non-Energy Star buildings and have 3.6 percent higher occupancy.

And, in a trend that could signal greater attention from institutional investors, Energy Star buildings are selling for an average of $61 per square foot more than their peers, while LEED buildings command a remarkable $171 more per square foot.

Andrew Florance, president and CEO of CoStar, called the findings a “strong economic case for developing green buildings” at a seminar hosted by the District of Columbia Building Industry Association (DCBIA) where he presented results from the study this month.

“The information we’ve discovered is very compelling. Like all good science, we discovered it by accident,” Florance said. “Green buildings are clearly achieving higher rents and higher occupancy, they have lower operating costs, and they’re achieving higher sale prices.”

Florance conducted the study with Jay Spivey, CoStar’s director of analytics, and Dr. Norm Miller of the Burnham-Moores Center for Real Estate at the University of San Diego. The group analyzed more than 1,300 LEED and Energy Star buildings representing about 351 million square feet in CoStar’s commercial property database of roughly 44 billion square feet, and assessed those buildings against non-green properties with similar size, location, class, tenancy and year-built characteristics to generate the results.
“We wanted to take each and every one of these green buildings in our database and compare them to the buildings they directly compete with in the submarket,” Florance said at the seminar.

One factor for the “green” premiums would appear to be the constricted supply of green buildings, which account for just a fraction of the total U.S. building stock (less than 1 percent of space in CoStar’s database.) The study indicates that while the number of LEED-certified and Energy Star buildings continues to grow, the supply has not kept pace with demand.

CoStar began tagging green buildings in its database about two years ago with the help of the U.S. Green Building Council (USGBC), the nonprofit trade group that created the LEED certification system, and the U.S. Environmental Protection Agency (EPA), which administers the government-sanctioned Energy Star label.

Although often lumped together under the ‘green building’ moniker, LEED and Energy Star address distinct — if not related — goals.

LEED, which stands for Leadership in Energy and Environmental Design, indicates a property’s overall sustainability by awarding points for just about any sustainable feature imaginable, from bike racks and rainwater collection and reuse systems, to energy-efficient lighting and low-flow plumbing fixtures. It is comprised of specific programs tailored for new buildings, existing buildings and tenant build-outs, and awards different tiers of certification such as Silver, Gold or Platinum, the highest.

Over the past few years, LEED has emerged as the industry’s de facto sustainable property rating system and become nearly synonymous with the term ‘green building’. So much so, “There’s a bit of urgency now that the value of buildings could be affected if they are not LEED-certified,” says Mark Bennett, a senior attorney with law firm Miller Canfield who specializes in green building and climate change issues.

Bennett recently chaired the National Green Building Finance and Investment Forum, a conference involving financial sector and property investment leaders in San Francisco, where he says LEED was a matter of discussion for many of the nation’s top institutional investors. “In large part, they were referring to LEED certification as a component in the definition of a Class A office building,” he said. “They basically said, ‘If you’re building today without LEED, you’re building in obsolescence.’ ”

Many would pitch the same argument for EPA’s Energy Star program, an energy-benchmarking tool and a flag for the nation’s most energy-efficient properties. The program bypasses the bells and whistles of LEED by targeting simpler strategies such as installing energy efficient windows, turning off computers at night and adding motion sensors to control lighting, to great effect: buildings that have earned the Energy Star label use an average of almost 40 percent less energy than average buildings, and emit 35 percent less carbon.

In fact, according to EPA, as many as 500 buildings out of the 4,100 or so total commercial buildings that have earned Energy Star use a full 50 percent less energy than average buildings. And many of those efficiency practices, such as upgrading light bulbs or office equipment, pay for themselves in energy cost savings.

On top of that, premiums that the market is willing to pay for Energy Star buildings, as indicated in the CoStar study, are a clear demonstration of the overall impact of energy efficiency on property value, says Stuart Brodsky, national program manager for the Commercial Properties division of Energy Star.

“The business case for energy efficiency is indisputable,” Brodsky told CoStar. “The business case is so strong that the financial results can be applied to asset value, through increased NOI [net operating income], or leveraged to pursue other aspects of green buildings that do not show as strong of a financial rate of return.”

But the benefit of Energy Star extends beyond asset value. Aside from the actual Energy Star designation, which owners may choose to pursue by demonstrating energy reductions, the program also serves as a stand-alone energy benchmarking tool: an energy report card, so to speak, and the type of environmental transparency in the industry Florance has routinely called for.

“For a lot of people, it’s where the rubber meets the road,” Brodsky says of the benchmarking aspect, which saw participation jump by more than 175 percent from 2006 to 2007. To date, almost 8 billion square feet of U.S. property has been benchmarked through Energy Star.

One sharp contrast between Energy Star and LEED is where the responsibility for implementation falls. With LEED, where three-fourths of all certified projects to date fall under the program’s flagship brand — LEED for New Construction (LEED-NC) — the burden for certification is largely on architects and engineers at the design stage.

But with Energy Star, which looks exclusively at energy consumption in existing assets, responsibility shifts to property managers. Demand for Energy Star buildings is a “quantifiable indicator of superior management practices across the property, which may otherwise be intangible,” Brodsky says.

Other contrasts are closer to the surface. Energy Star is often seen as just one piece of the sustainability puzzle, while LEED buildings, especially those certified under LEED-NC, don’t always correlate to high levels of energy efficiency (USGBC has, perhaps in response, re-tooled its building operations platform, LEED for Existing Buildings (LEED-EB)).

But in many ways, those differences have benefited both programs, allowing them to serve the same customers without becoming direct competitors. Several big commercial real estate service providers, including CB Richard Ellis and Transwestern, run Energy Star and LEED programs concurrently across their managed portfolios.

So does Kennedy Associates Real Estate Counsel LP, an Energy Star partner since 2005 and one of only a handful of U.S. institutional investment advisors recognized as an early adopter of green strategies.

“We think of Energy Star and LEED in concert with each other,” says Bob Ratliffe, an executive vice president of portfolio management with the Seattle-based firm, which also has broad development operations. “LEED and Energy Star come up in every investment we make, they come up in the investment committee, they come up in asset management committee meetings. Both are part of our fabric.”

Under its Responsible Property Investing (RPI) platform, which promotes energy conservation, sustainable development and responsible contracting across its portfolio of more than $9 billion in assets under management, Kennedy’s LEED and Energy Star activities are extensive. It has about $325 million in LEED-certified assets, as well as another pool of buildings valued at around $1.5 billion that are either pre-certified for LEED or planned for certification. In addition, the firm recently identified more than 45 office buildings for enrollment in the LEED-EB portfolio pilot program.

Its portfolio also includes 35 Energy Star-labeled buildings, a number that includes more than 60 percent of all Energy Star-labeled warehouse facilities to date. The firm’s benchmarking efforts currently include more than 160 buildings totaling 22 million square feet of office and industrial space.

Kennedy says it sees higher occupancy and rent rates, as well as quicker lease-up and better tenant retention, in its LEED and Energy Star buildings due to a number of factors, including market demand. “If we lease buildings faster and hang on to tenants longer, that adds to the economic equation,” says Preston Sargent, an executive vice president and principal with Kennedy who oversees the firm’s largest client, the Multi-Employer Property Trust (MEPT).

“And obviously, if you’re selling a building at a lower cap rate, that’s additional icing on the cake,” he said.

But the benefits extend beyond that, Ratliffe says. “Our investors recognize we are a national leader in [sustainability] and put a value on that. And as they assess their advisors, they see the leadership we’re taking in RPI and give us points, if you will, as they assess us amongst our competitors. And that’s good for business,” he said.

In large part, Kennedy is able to balance Energy Star and LEED because the programs fit well with each other. “They’re complementary,” says Christian Gunter, a LEED-Accredited Professional and assistant vice president of Kennedy’s RPI program, who points out that LEED-EB buildings must achieve a certain Energy Star score as a prerequisite for certification.

“In a recessionary environment there’s more than one way to cut costs,” Ratliffe says, referring to the energy and operational efficiencies emphasized under Energy Star and LEED-EB. “It’s not just cutting employees.”

Source:  US Green Building Council