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Solar Industry: Then & Now – AMECO Solar CEO Patrick Redgate

AMECO Solar CEO Patrick Redgate discusses his nearly 40 years
in the Solar Energy Industry: Then & Now

How did you get started in the solar industry?

I got into solar because I was working for an engineering firm in Saudi Arabia in the 70’s. When I came back from Saudi Arabia, I said this is not sustainable. That’s probably not the word I used, but that’s a really popular word now and it’s really an important one because when I came back to America I realized this isn’t a business that I wanted to do. I wanted to get in the business of saving the planet. Now however, solar has been a rocky road and in the meantime we have learned that solar is really just a part of the mix. There are many other energy generating technologies that are important for us.

How has the hardware changed? What improvements have you seen?

The kind of hardware we used to install commonly was generating heat and that would be heat for people’s homes and hot water for businesses, swimming pools. In fact that technology has really ripened and is mature now. But what we’ve seen now is that photovoltaics have come down in cost and photovoltaic is the science of generating electricity. Electricity is so expensive to get in any other way because of not only the economic costs, but the environmental costs. Photovoltaics are now something I never thought I would see in my lifetime available for everybody for any application that they want.

What were some of the challenges facing you when you were starting out and what are some of the challenges now?

The biggest challenge when we started out was first of all locating products that made sense. And without any track record or understanding it was our job really to discover what was out there. Sometimes I think we were just lucky. We picked the right products and those products did us well. But we are pretty conservative in how we choose what we represent and what we install. We don’t manufacture, however in the 70’s we actually did manufacture because the offerings were so limited. By the mid 80’s there were over 280 domestic manufacturers of Solar Products available to pick from. So we had a big job, to understand what was good, what was bad, what worked, what didn’t. We had to work our way through all the claims and figure out and understand if this was a good fit for our customer base.

Now in today’s world the market has changed to the point where there are only a few domestic manufacturers of solar in the United States and a lot of the competition in the photovoltaic field and electric field is coming from China simply because they have a government directing their programs. They understand the benefit of solar and they have a vision, but we have a laissez-faire economy. And so the nice thing to see is that solar is doing quite well even in a laissez faire economy, but manufacturing costs are very high and we still have a lot more foreign manufacturers to pick from than we have domestic manufacturers.

Net Metering is the term given to the act of selling energy back to the energy companies. What are your thoughts on their future use?

Well actually, electric generation for home owners and businesses would not really be technically or economically feasible for the great number of our customers without Net Metering. Net Metering was passed by the California legislature I think it was in 1996 and it was done as an incentive to…it was done as a…you can deregulate the utilities, the utilities can deregulate themselves, as long as they provide Net Metering. Net Metering is simply the way that people sell energy back to their utility. They generate power during the day, the utility buys it back from them at the same price they bought it – they bought the energy the last time. So it is not a good business model for the utilities. They can’t generate power and buy it back at the same price they sell it, but it really makes the economics here work.

As far as Net Metering’s future is concerned, I think that it’s already been written that only 5% of the customer base can go Net Metered and if that doesn’t change then the solar/electrical applications will really be left for people that want to power their electric vehicles or they want to sell their electricity at a wholesale price. And if they sell their electricity at a wholesale price, it may be feasible because the price for solar has dropped where that may be a good deal for everybody.

What’s your viewpoint on incentives and rebates? How do they impact the solar industry?

It’s hard to say the word sustainable and then ask for incentives. When we have a sustainable technology it should be able to offer the benefits that people would expect without having an incentive applied. But this is an industry that will not come into its own at this point without some kind of support from the government. And what we have seen for instance, the solar industry go to the point now where over 100,000 people are employed in the state of California where as 10 years ago it wasn’t – this couldn’t have happened without some kind of incentive and support. And also what we have seen happen is because of that support, prices have come down and we are at the point now where we really may not need incentives much longer.

When the current incentives end for solar, we’ll be faced with a market that is very well developed. People accept solar as an alternative. Will the pricing be good enough? We don’t know. But if the incentives are gone, the tax credits are currently in place until the year 2015 – that’s a huge break for the buyer. The California rebates are almost all gone and they were scheduled not to be gone until 2016 also, but it’s been so popular in California that the rebates have disappeared almost. They started out at $4.50 a watt and now they are down to .20 a watt now. So we are really at a small percentage – its almost ridiculous the size of the rebates compared to what it used to be.

I think the challenge that we face and the challenge that anybody in the solar business faces is to keep costs low enough so people can buy the solar and justify rather than just being green and employing locally and going sustainable. They are not only doing the good thing, but they are doing the right thing economically. And if we can get to the point where the tax credits are on the verge of going away, there will be a huge rush of many people that will want to buy solar before its gone and then the market will collapse. In my opinion, we need to reduce the support slowly and incrementally and predictably as has the state of California with the rebates. When the Federal Government reduces its support on December 31, 2015, this industry will be in for a big, big shake down.

Who are your target markets and how has that changed over the years?

We have done commercial, and industrial and residential applications, but because this is a business that has been ephemeral and there have been booms and busts, we have mostly concentrated on the small business and residential market place.

Do the jobs get bigger the longer you are in business?

We have done large projects. In fact in Long Beach we did the smallest system and the largest system. The largest system up to that point in history was the California community pool and the smallest system was done for my daughter’s science fair project. But we haven’t gone for the big bang; we aren’t a big union shop. This is a family owned company and we believe that we can really provide better service by keeping the operations close at hand.

You have run a successful business for almost 40 years. What advice can you give to young entrepreneurs today who dream of a career in solar energy?

There are so many different levels, it is a business like anything else; there is engineering, there is marketing, there is product development, customer relations. And if anybody would want to get into solar back when I did, I had to spend two weeks in the library to read every book there was and then there was nobody to give me advice. But the advice really is, just as any other business, if you can find a school that has a program that teaches you, you can become an installer. If you want to go to a business school it’s the same business environment we all lived in and so you can get a job with a solar company if you have a business degree. If you want to become a marketing person, there’s nothing more unusual about marketing solar or selling solar than any other product that’s out there. Again, we have the internet is a huge resource and it’s not just a matter of tapping somebody on the shoulder and saying can you help me. You can help yourself. If you know how to Google, you can get there pretty quickly.

What makes your company different from all other solar energy installation companies?

My favorite topic. We have the experience, we have the know-how and we are dedicated. We want to make sure what we do works because we’ve discovered our best resource for future customers are the ones we are working with today.

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About AMECO Solar
Since 1974, AMECO Solar has been dedicated to the concept that solar energy is the solution to our energy future. Solar energy is unlimited, non-polluting and free. AMECO Solar is committed to providing cost-effective and reliable solar systems and strives to offer the best components available. AMECO Solar believes that using solar energy is simply the best investment available to homeowners or businesses today, since the alternative to solar is just a never-ending monthly expense. Extensive Solar information can be found on their website: SolarExpert.com. Call today for a quick quote: 888-846-9411.

KYOCERA to Supply 405 Kilowatts of Renewable Solar Energy to Remote Villages of Fiji

Kyocera Solar, Inc., a leading supplier of reliable solar modules and renewable energy, announced that its solar energy systems will power over 2000 homes in the Fiji Islands. The solar projects are in partnership with Fiji’s Department of Energy and the Fifth Pacific Islands Leaders Meeting project (Palm 5) with the goal to bring renewable energy to remote villages of the island nation. To date, 135 kilowatts have been installed and the remaining 270 kilowatts will be completed by the end of the year.

With these solar systems, rural villages are able to thrive without access to a traditional electric grid.  Each system will utilize Kyocera’s modules and the sun’s energy to provide basic lighting and other low-power needs on the islands.

Solar energy makes so much sense for island nations that often lack an electricity grid infrastructure but have an abundance of sunshine year-round,” said George Phani, sales manager for Kyocera Solar Australia. “With our Kyocera modules, many Fijians have been given light and other electricity into the night – maybe for the first time. We hope this program can serve as a template for other islands to follow.”

Kyocera has partnered with Powerlite Generators (Fiji) Limited to install 3,000 solar modules throughout Fiji. Each system includes at least one 135-watt Kyocera module, a regulator, maintenance-free batteries, and both indoor and outdoor lighting.

Kyocera Solar, Inc. is headquartered in Scottsdale, Arizona with regional sales affiliates in the Americas and Australia.

Georgia Companies Join Forces on One of State’s Largest Rooftop Solar Installations

ATLANTA, GA—June 19, 2012—Renusol America, headquartered in Atlanta, Georgia, has announced that its American-engineered and manufactured mounting system—the Renusol CS60—has been installed at the Aquafil Headquarters in Cartersville as part of one of the state of Georgia’s largest solar PV energy systems. The 400 kWh system will generate 525-thousand KWh of power annually.

The project includes 1,572 Renusol CS60 mounting units and 1,572 of Suniva’s Optimus 250 W panels. Suniva is headquartered in Norcross, Georgia. Radiance Solar, a Georgia owned and operated solar contracting company, installed the system, which is interconnected to the Cartersville Electric System.

Aquafil, a chemical and textile firm and leader in carpet fiber technology, is known for producing fibers made from 100-percent recycled materials. The company takes its commitment to sustainability one step further with the installation of this solar system on top of its 234,000-square-foot manufacturing facility in Cartersville.

The Renusol CS60 represents the latest in American technology and is the first-ever ‘one unit per one PV panel’ mounting system, which is changing how solar arrays are deployed on flat rooftops in America by eliminating the layout restrictions inherent to traditional, rigid aluminum racking rails. Manufactured in the Midwest, the Renusol CS60 offers several solutions developed specifically for the US solar market.

The Renusol CS60 innovation also incorporates the latest groundbreaking American-based wind tunnel study results showing how wind forces vary across a roof, making the flexible rooftop panel placement solution of the Renusol CS60 even more valuable.

“The Aquafil USA solar rooftop installation is emblematic of how the deployment of solar energy creating and keeping jobs right here in Georgia and across America , said Renusol America CEO Bart Leusink.

About Renusol America
Renusol America is a leading innovator in flat-roof and pitch-roofed mounting systems for Solar PV modules in the US solar industry. A U.S. company with systems installed in 18 states, Renusol America provides sales, service, and customer support from its headquarters in Atlanta , Georgia and operates full-scale warehouse and distribution facilities across the country. Building upon its heritage of excellence in German engineering with American innovation, in 2011 Renusol America introduced the groundbreaking, American-made Renusol CS60—the first one piece mounting system for PV panels. The company is part of the Centrosolar Group, a publicly traded company on the German stock exchange, and is a wholly owned subsidiary of Renusol GmbH, a market leader in Europe with more than 500MW of solar power mounted on Renusol systems. More information at www.renusolamerica.com

Step by Step Guide to Installing Solar Panels

In recent years there has been a significant rise in the numbers of solar panel installations across homes in the UK and the focus on environmental well-being means that there has never been a better time to install solar panels. Whether you have a large, country manor or a small townhouse, solar panels can be installed in many areas which consequently help to reduce your electricity bills as well as helping the environment. The relative ease of installing solar panels means that it is definitely something that is worth considering.

Solar panels can be quite expensive to install, so it is worth examining the environmental efficiency of your house before taking the step towards installing solar panels. If your house has characteristics such as double glazing, loft insulation and cavity wall insulation, then solar panels will be more effective at reducing bills because less energy will be wasted; they will be used at their optimum capacity.

Once you have checked these things, you can start to find good deals for solar panel installers. As noted, they can be expensive so shop around for them. There are many price comparison sites that can offer you a quote, so it is recommended that you compare the prices before you buy.

Furthermore, using these sites means that you can compare the service that you will get. You can choose different factors, such as your roof size, which will calculate the potential solar energy that can be gained from the roof and different solar panel operating systems that are available. The solar power installers will then be able to fit your solar panels quickly and efficiently.

If you do not want to pay for the solar panels yourself, there are certain schemes, which allow you to rent out your roof so companies can place their solar panels on it. This is a great idea if you plan on living in your home for a long time, and the solar panels are also usually free in these schemes. However, the solar panels will be on your roof for many years and the buyout fees – if you decide to relocate or if you no longer want them – are expensive.

In the UK, the Government has a scheme where they will buy back any extra energy that you produce through your solar panels. This is an excellent way of making revenue as well as paying back the money that you may have spent purchasing the solar panels. Although there are several steps to take in preparation of purchasing solar panels, they are definitely worth it to make sure you can get the best deal, as well as helping you to earn revenue through your solar panel venture.

This article was written by the team at Ecosphere Renewables. For more info please visit: TheEcosphere.co.uk.

US Antidumping Tariffs Could Suspend 45 Percent of Solar Module Shipments to North America

MICHAEL SHEPPARD, iSuppli.com

U.S. government antidumping penalties on imports of photovoltaic (PV) cells from China could suspend nearly half of solar module shipments to North America this year, impacting pricing, inventories and project timelines, according to an IHS iSuppli PV Perspectives report from information and analytics provider IHS (NYSE: IHS).

The U.S. Department of Commerce on May 17 announced a preliminary determination in its antidumping duty  investigation of imports of crystalline silicon photovoltaic cells from China. These cells are used in modules that form complete solar systems installed on houses, buildings or commercial PV-generation facilities.

Before this announcement was made, IHS estimated that 2 gigawatts (GW) worth of solar modules shipped into North America in 2012 would be imported from Chinese manufacturers. This would have represented as much as 60 percent of the market for North American use.

Given the high tariffs proposed by the Commerce Department, many Chinese players will suspend shipments to North America while business plans are modified to account for the tariff. This could represent the temporary removal of up to 1.5GW worth of stopped shipments to the region, accounting for 45 percent of the total market in 2012

“The Commerce Department action will have a major impact on the North American solar market, constraining supplies and driving up prices for modules and systems,” said Mike Sheppard, photovoltaics analyst with IHS. “Even when alternative supply lines are adopted, the penalties are likely to add as much as 12 percent to the cost of solar modules, lowering the average return on investment (ROI) for solar systems in the region by as much as 2.5 percent.”

Solar Flare Up
The Commerce Department preliminarily determined that Chinese producers/exporters sold solar cells in the United States at dumping margins ranging from 31.14 percent to 249.96 percent.

The Commerce Department’s mandatory respondents were Suntech-Power and Trina Solar, and these two companies were subject to unique tariff rates of 31.22 and 31.14 percent, respectively. All other companies singled out in the investigation received an average duty of 31.2 percent. However, Chinese companies not singled out in the investigation will receive an even larger 250 percent duty.

The reasoning the Commerce Department gave for the large tariff on these players is to deter Chinese companies from forming new joint-venture companies with existing firms that are not on the list of penalized entities.

The duties to be imposed are preliminary in nature and will need to be finalized by both the Commerce Department and International Trade Commission (ITC) through final determinations on October 9 and November 23 of this year. However, these duties will be enacted retroactively 90 days prior to the date ofthe preliminary decision in February 2012 if they are imposed.

The Outsourcing Option
Interestingly, the Commerce Department included this statement in its announcement:

“Modules, laminates, and panels produced in a third country from cells produced in the PRC are covered by this investigation; however, modules, laminates, and panels produced in the PRC from cells produced in a third country are not covered by this investigation.”

For the Chinese module suppliers, this represents an opportunity to sidestep the tariffs.

“The Commerce Department statement means that many Chinese cell manufacturers will be incentivized to outsource to third-party companies in other countries in order to get around the duties,” Sheppard said. “A popular option will be to utilize cell specialists operating in Taiwan. This will allow the Chinese players to avoid the high tariffs ranging from 34 to 250 percent. However, such a strategy also will add 10 to 12 percent additional cost for the modules, based on the margins required from the third-party contract manufacturers and from additional logistics charges.”

System-level Impact
The impact of the outsourcing to Taiwan will be somewhat more limited on solar system prices compared to module prices. System pricing behaves in a different manner from module pricing given the additional cost elements involved.

Accounting for a 10 percent increase in total module cost based on the cell outsourcing strategy mentioned above, the cost of installation for a ground solar system rises to $2.65 per watt, up from $2.56 per watt.

As a result, the ROI for solar installations is expected to only decline by 1.5 percent to 2.5 percent based on the cell outsourcing strategy.

“This reduced ROI means some investors may think twice when valuing other vehicles to put their money,” Sheppard said. “However, most investors will not be deterred.”

Inventory Story
Solar module inventory levels will quickly deplete in North America based on the lower shipments from Chinese players, increasing module prices as a result given that Chinese modules were also the most aggressively priced. These price increases will be passed onto the system level, negatively affecting ROI for projects installed this year.

Learn More >  IHS iSuppli PV Perspectives

New Jersey’s Largest Sawmill Looks to The Sun To Save On Energy Bills

Solis Partners, a leading provider of commercial solar power systems, has announced that it has completed the installation of a 243-kilowatt solar photovoltaic (PV) system at Riephoff Sawmill.  Located in Monmouth County in the borough of Upper Freehold, N.J., the Riephoff facility is New Jersey’s largest hardwood sawmill.

The system was designed, engineered and constructed by Manasquan, N.J.-based Solis Partners and comprises of two ground-mounted systems — a 165-kilowatt array that generates power for the sawmill and a 78-kilowatt array that generates power for additional facilities on the property, which include a barn for livestock and an aquafarm.

Located at 763 Route 524, the Riephoff Sawmill is a family-owned business that has been supplying the Northeast with high quality lumber products for the industrial, construction and manufacturing industries for more than 45 years. The two solar systems are housed within the company’s 7-acre yard that is used for scaling and storing logs.

“We are thrilled to announce the completion of this innovative project,” said Jamie Hahn, co-founder and managing director of Solis Partners. “This project allows Riephoff to lower its operating costs and acts as a hedge against the rising costs of electricity, which is especially important in a state that has some of the nation’s highest electricity rates. The ability to produce clean, renewable energy is also very important to Riephoff as an organization reliant on the natural environment for raw materials.”

The 15,000-square-foot mill, which includes a 56-inch circular saw and a 20-foot frick carriage, a device used to pass large pieces of lumber through the saw, as well as the pumps needed for aquafarming, requires a lot of electricity. The solar PV system offsets approximately 100 percent of Riephoff’s electricity consumption, which equates to approximately $36,000 in annual savings.

Built with 1,036 solar PV panels, the solar system will produce approximately 300,000 kilowatt-hours of electricity in the first year of operation. This equates to the reduction of more than 456,000 pounds of CO2 emissions, which is the equivalent of offsetting the power demand of 26 residential homes or removing 40 cars from the road each year.

“We care about the environment,” said John Falconio, principal at Riephoff. “Because our company relies on natural resources, we continuously implement projects and methods that are environmentally responsible. However, the decision to pursue a solar project was easy because there is a strong business case in addition to the environmental benefits.”

Riephoff, which produces products from fencing and posts to hardwood crane mats, which are used to support the weight of a crane, is very resourceful in its operations. Riephoff buys approximately 98 percent of its timber locally and harvests all its wood responsibly, using consultants — when necessary — and techniques that best ensure the rejuvenation of the trees.

“There’s a big misconception that when you cut timber it never grows back, but it’s quite the opposite, “ said Falconio. “We cut timber in a way that we can continue to do so for years to come. And whatever we cut, we use – the only thing we don’t sell is the  buzz and sawdust. Scrap pieces get recycled into landscape mulch, sawdust goes for horse bedding and anything that can’t be sold we use in our wood burning stove.  When managed appropriately, timber is truly a renewable resource.”

“In this business, to stay competitive, you have to be as efficient as possible,” said Falconio. “This solar system is an extension of the efficiency strategies we employ throughout the business, and with plans for expansion with our aquafarming business, the timing was perfect.”

About Solis Partners
Solis Partners is a leading turnkey provider of solar power systems for commercial, industrial, utility and nonprofit clients. Solis specializes in financing, constructing and operating distributed solar power plants that enable clients to meet their long-term energy needs while reducing operating costs and addressing their carbon liabilities. Solis is committed to providing its clients with the most efficient and cost effective path to solar. Solis Partners is headquartered in Manasquan, N.J. For more information, please call (732) 800-0052, or visit www.solispartners.com.

About Riephoff Sawmill

Family-owned since 1964, Riephoff Sawmill, based out of Upper Freehold, N.J., is New Jersey’s largest hardwood sawmill. Servicing clients throughout the northeast and Canada, Riephoff offers top quality lumber products for industrial, construction and manufacturing industries. For more information about Riephoff and its products, please visit www.riephoffsawmill.com.