Tag Archives: NREL

Financing solar energy: Georgia’s special problem

In most states, financing solar energy is largely a matter of learning all the local ropes. In Georgia, there’s a bigger problem.

Michael Mendelsohn wrote for RMI 5 December 2012, How Do We Lower Solar Installation Costs and Open the Market to Securitized Portfolios: Standardize and Harmonize,

Soft costs can be pretty tough. The cost of solar installations can be generally separated into “hard” costs — representing primary components such as modules, racking, inverters — and soft costs including legal, permitting, and financing. While the former group — particularly modules — have dropped dramatically over the last several years, the latter have not. According to a recent NREL analysis, these costs represent roughly 30% of both residential and utility installations (slightly less for commercial-host systems). See Figure 1.

In fact, soft costs are so critical to the overall success of solar adoption, their reduction is a primary focus of the Department of Energy’s SunShot Initiative to make solar energy cost-competitive. In order to reduce the cost of financing, NREL recently completed and continues to work on various efforts to tap public capital markets and enable other vehicles that securitize project portfolios.

We’ll come back to tapping public capital markets and the like, because that’s the key to what Georgia Solar Utilities (GaSU) is trying to do. But there’s a special problem in Georgia, buried in the next paragraph:

Continue reading →

Farm bill would reauthorize USDA REAP grants

Sen. Richard Lugar (R-Ind.) and Rep. Marlin Stutzman (R-Ind.) wrote for The Hill 5 March 2012, REFRESH Act: Strengthen rural communities and U.S. energy security
Reauthorize and reform the popular REAP program to demonstrate opportunities for economically viable energy investments and encourage loans rather than grants.
Rep. Sanford Bishop (D-Ga.) has long been working with local farmers and USDA to help with agriculture and rural jobs.

The Indiana Congress members continued:

Real commitment to rural growth requires that we put money where our mouth — or authorization — is. We offer basic mandatory funding that is more than paid for through cutting waste.

Renewable energy production creates jobs. Rural communities see potential for real economic growth in the emerging biofuel sector. Advances in technologies and agricultural techniques could offer economic benefits from coast to coast. Using the REFRESH Act as the basis for the next Farm Bill would help galvanize private investment in the sector, bringing jobs to a ready economy.

Indeed it can.

Obviously I like REAP grants, since we got one for Okra Paradise Farms. That 25% REAP grant plus an 35% ARRA NREL plus 35% GEFA credits will add up to 90% covered by grants and tax credits, which is a pretty good deal.

Now that remaining 10% is still a significant amount; like the price of a small car. But in 7-15 years (how long it will take to pay off this system, depending on how you figure it), what would the value of a car be? Much less than when you bought it. Meanwhile, these solar panels will be generating almost as much power as they are now, and they will continue to generate for at least a decade more, probably much more.

The big missing piece is up-front financing. Local banks will do it, but only for collateral. By which they mean real estate. Nope, they won’t take the solar equipment as collateral, even though it would still be operational many years from now.

Local banks or credit unions could see this as an opportunity and start accepting solar equipment as collateral. Beyond that, with a few changes to Georgia law, to deal with the power utility territoriality clause, and maybe to ban boondoggle charges for more dangerous and less job-producing power sources, we could get a commodity market in solar power in this state. You could put up solar panels like this, or more, on your house or business roof, and sell your excess power to somebody in Atlanta with less roof space. That would produce widely distributed energy, reducing need for foreign oil or dirty coal, lowering your electric bills, maybe even producing you a profit, and generating local jobs right here in south Georgia.

Private investment is ready to come in for utility-scale solar projects.

And companies like SolarCity that already do everything from financing to installation could do that in Georgia. Or home-grown companies could do that. Or local banks could finance while local companies installed.

Anyway, we have here on our workshop roof a proof of concept, operational right now, purchased partly via a USDA REAP grant.

-jsq

Houston’s Renewable Energy

For those people around Lowndes County who are living in the past and still say solar doesn’t work, Jonathan Hiskes interviews the former mayor of Houston, Bill White, in Grist, 24 Sep 2010, and asks about solar energy and efficiency:
During White’s time as mayor of Houston, the nation’s fourth largest city, he ran a highly successful home-weatherization program and engineered a major purchase of 50 megawatts of clean energy, giving momentum to the state’s booming wind industry.
Hm, so VSU, for example, could buy wind energy from windmills off the Georgia Coast…

Read on about solar. Continue reading →

jsq VDT LTE pro Solar GA

The VDT printed my LTE today. It doesn’t seem to be online yet. Appended is what I submitted, annotated with some links and pictures. The last picture shows the solar panels on my farm workshop.

-jsq

Re: Forester R. Wayne Bell’s points of May 20, 2010. (Hi Wayne; I’ll get those dibbles back to you soon.)

Where does Georgia Power say Albany’s biomass plant will reduce carbon dioxide emissions by 95 percent? Biomass proponents usually say what Forester Bell says: trees are carbon neutral. That ignores the time gap between clearcutting and new growth. That gap from 15 to 100 years or more can produce a lot of CO2.

As a tree farmer myself, I know the pulpwood market is down in Georgia due to the recession and foreign competition. I’d like to be convinced that biomass is the new market we need, but the more I look into it, the more obfuscation I encounter.

Forester Bell seeks a study showing solar will work in Georgia. Georgia Power’s web pages (renewable energy -> solar -> solar potential)
http://www.georgiapower.com/spotlightsolar/solar_potential.asp
include a map of Georgia’s Solar Potential, Continue reading →

Solar Power and Georgia Power

As we’ve seen, the Center of Innovation – Energy defines solar as a southwestern energy source (see slide 9). That slide uses a version of this map:

I found that map on Georgia Power’s web pages. Meanwhile, here are Georgia Power Solar Projects. Hm, “a rooftop solar demonstration program”, “plans to install solar panels at schools in each of the company’s regions”, “showcase its technology”. Where’s the actual rapid deployment?

Meanwhile, Texas almost doubled its renewable energy generation between 2004 and 2006 and hasn’t stopped since. Continue reading →