Why Conservatives Are Bad on Energy: It’s All About the Costs

By Tom Rooney, CEO, SPG Solar

Conservatives,  let’s talk about energy. And why so many conservatives are so
wrong — so liberal, even — on wind and solar energy.

Let’s start with a recent editorial from the home of ‘free markets and free people,”
the Wall Street Journal. Photovoltaic solar energy, quoth the mavens, is a “speculative
and immature technology that costs far more than ordinary power.”

So few words, so many misconceptions. It pains me to say that because, like many
business leaders, I grew up on the Wall Street Journal and still depend on it.

But I cannot figure out why people who call themselves “conservatives” would
say solar or wind power is “speculative.” Conservatives know that word is usually
reserved to criticize free-market activity that is not approved by well, you
know who.

Today, around the world, more than a million people work in the wind and solar
business. Many more receive their power from solar.

Solar is not a cause, it is a business with real benefits for its customers.

Just ask anyone who installed their solar systems five years ago. Today, many
of their systems are paid off and they are getting free energy. Better still,
ask the owners of one of the oldest and most respected companies in America who
recently announced plans to build one of the largest solar facilities in the
country.

That would be Dow Jones, owners of the Wall Street Journal.

Now we come to “immature.” Again, the meaning is fuzzy. But in Germany, a country
1/3 our size in area and population, they have more solar than the United States.
This year, Germans will build enough solar to equal the output of three nuclear
power plants.

What they call immaturity our clients call profit-making leadership.

But let’s get to the real boogie man: The one that “costs far more than ordinary
power.”

I’ve been working in energy infrastructure for 25 years and I have no idea what
the WSJ means by the words “ordinary power.” But, after spending some time with
Milton Friedman whom I met on many occasions while studying for an MBA at the
University of Chicago, I did learn about costs.

And here is what every freshman at the University of Chicago knows: There is
a difference between cost and price.

Solar relies on price supports from the government. Fair enough — though its
price is falling even faster than fossil fuels are rising.

But if Friedman were going to compare the costs of competing forms of energy,
he also would have wanted to know the cost of “ordinary energy.” Figured on the
same basis. This is something the self-proclaimed conservative opponents of solar
refuse to do.

But huge companies including Wall Mart, IBM, Target and Los Gatos Tomatoes figured
it out. And last year so did the National Academy of Sciences. It produced a
report on the Hidden Costs of Energy that documented how coal was making people
sick to the tune of $63 billion a year.

And that oil and natural gas had so many tax breaks and subsidies that were so
interwoven for so long, it was hard to say exactly how many tens of billions
these energy producers received courtesy of the U.S. Taxpayer.

Just a few weeks ago, the International Energy Agency said worldwide, fossil
fuels receive $550 billion in subsidies a year — 12 times what alternatives
such as wind and solar get.

Neither report factored in Global Warming or the cost of sending our best and
bravest into harm’s way to protect our energy supply lines.

Whatever that costs, you know it starts with a T.

All this without hockey stick graphs, purloined emails or junk science.

When you compare the real costs of solar with the fully loaded real costs of
coal and oil and natural gas and nuclear power, apples to apples, solar is cheaper.

That’s not conservative. Or liberal. That comes from an ideology older and more
reliable than both of those put together: Arithmetic.

Solar Market Set to Continue Expansion in 2011

El Segundo, Calif., August 3, 2010—Despite concerns that reductions in government incentives will halt growth in installations of solar Photovoltaic (PV) systems in 2011, iSuppli Corp. predicts the global PV market will continue to expand next year as falling prices make solar energy more attractive, according to iSuppli Corp.

Global PV system installations in 2011 will amount to 20.2 Gigawatts, up 42.7 percent from 14.2GW in 2010. While this represents a significant slowdown from 97.9 percent growth in 2009, it remains an impressive performance in light of expected rollbacks in subsidy programs from various governments.

The attached figure presents iSuppli’s forecast of annual global PV installations.

“Because of the cuts in Feed-in-Tariffs (FITS) in Germany and Italy next year, and the budget concerns in Greece, Italy and Spain, PV installations in 2011 will slow somewhat compared to the blistering pace of 2010,” said Stefan de Haan, senior analyst for iSuppli. “Furthermore, the weakening of the euro versus the Chinese yuan will artificially inflate prices for solar cells and other system components in Europe. But contrary to some observers’ fears, installations will continue to rise at a prodigious rate next year. Modestly falling pricing for solar cells and complete PV systems are expected to more than mitigate the negative impact of the falling FITs and rising yuan.”

Price triumphs

Assuming the U.S. dollar/euro exchange rate remains above $1.20/€, iSuppli predicts crystalline silicon solar cell prices will not increase in 2010 and instead will decline by 5 percent compared to 2010.

Prices for installations in 2011 will fall slightly more, decreasing by approximately 10 percent on average in Europe. Installation prices will decline to compensate for reduced subsidies in the largest markets of Germany, Italy and France.

Because of this decline, the average Return On Investment (ROI) for PV installation projects is expected to remain attractive and to continue to stimulate substantial demand. Even with Italy’s FIT cut of 10 to 27 percent split over the year, the ROI for solar installations completed in the country during 2011 will average 10 percent for major market segments. In Germany, assuming a 13 percent FIT cut, the projected ROI will be in the range of 8 to 10 percent.

Solar upside

With the ROI still positive, leading solar countries will still experience robust growth in PV installations in 2011, although at a slower rate than in 2010.

No. 1 solar energy country Germany will install 9.5GW worth of PV systems in 2011. This will represent a 43.9 percent increase from 6.6GW in 2010, down from 73.4 percent in 2010.

No. 2 solar generator Italy will install 2GW worth of PV systems in 2011, up 53.6 percent from 1.3GW in 2010.

The United States will install the third largest total of PV systems in 2011, at 1.9GW, up 79.3 percent from 1.1GW in 2010. This is down from 152.3 percent growth in 2010.

In fourth and fifth places, respectively, France and Japan will experience healthy expansion, with both countries crossing the 1GW threshold for new installations for the first time.

A notable drop-out during 2011 will be the Czech Republic as its installations plunge to 150MW to 250MW for the year, down from 1GW in 2010. The country’s precipitous decline will be driven by new FIT legislation reducing the current tariffs. Foreign investors drove the market in 2009 and 2010, creating a solar boom comparable to that in Spain in 2008. iSuppli expects that the Czech Republic’s government will take measures to drastically reduce the amount of new solar installations.

Solar event in 2012

Global PV installation growth is set to undergo a major deceleration in 2012, with a rise of only 2.8 percent to 20.8GW for the year.

“iSuppli believes 2012 will be the year when the PV industry weans itself from the generosity of German subsidies,” de Haan said. “The German market will cool off and expand by only 4 to 5GW per year for the next several years. We believe the government aims to keep an orderly progression in order to achieve an ultimate goal of around 80GW of installed PV capacity.”

To learn more, see iSuppli’s report entitled: Global PV Market to Double in 2010, Germany Leads the Way.

Southern California Edison Awards 36 Contracts for Utility-Scale Solar Rooftop Project

Southern California Edison (SCE) awarded 36 contracts to independent power producers for a total of nearly 60 megawatts from photovoltaic solar panels that will produce emission-free energy for SCE customers. The panels will be installed on 31 unused rooftops and five ground-mount sites in SCE’s service territory.

The solar rooftop project, approved by the California Public Utilities Commission in June 2009, calls for a total of 500 megawatts of  solar generating capacity, most of it on otherwise unused large warehouse rooftops. Half of the 500 megawatts will be from independent power producers who respond to SCE’s request for offers under competitive solicitations; the remaining 250 megawatts will be owned and operated by SCE. It is expected that this project will create about 1,200 jobs for Southern Californians.

“These contracts make significant strides toward distributed renewable generation for one of the most innovative solar programs in the country,” said Marc Ulrich, SCE vice president, Renewable and Alternative Power. “We’re working to help California meet its Million Solar Roofs goal and supply even more renewable energy to our customers where and when it’s most needed, without the added time and expense to construct major new transmission facilities.” The contracts awarded today are the first executed under the competitive solicitations for independent power producers.

SCE believes that its solar rooftop project will be a boon for the solar industry and consumers alike, with the resulting cost per unit significantly more cost effective than more common residential photovoltaic installations in California. Eventually, this could help drive down installation costs of photovoltaic generation for everyone. When complete, the solar panels will cover an area totaling 4 square miles on about 250 otherwise unused warehouse roofs. The total power production will rival a utility-scale power plant, enough electricity to serve 325,000 average homes at a point in time. SCE has already installed panels on three rooftop warehouses in California’s Inland Empire that are delivering – or are in line to deliver – electricity to the grid.

SCE is the nation’s leading utility for renewable energy. In 2009, SCE delivered 13.6 billion kilowatt hours of renewable power to its customers, about 17 percent of its total power portfolio.

One Block Off the Grid (1BOG) Launches New Solar Group Purchase Program in Denver

One Block Off the Grid (1BOG), the nation’s largest solar group purchase provider, today announced the launch of a new solar group purchase program in the Denver area. The program offers Denver homeowners a solution that reduces the cost and confusion traditionally associated with the solar buying process.

After an intensive selection process, 1BOG has selected REC Solar as partner to conduct the group’s solar system installations. Homeowners who join the 1BOG community are eligible for online and offline support, information and fixed discounted pricing. With zero down financing options, homeowners can install systems for free and save money from day one.[1]

After a month-long process of vetting local installers, 1BOG selected REC for their excellent group pricing, proven record of successful installations nationwide, premium products and long-term warranties.

“Colorado is one of the country’s leading solar states, so we are excited to bolster local solar adoption with a group program that makes going solar easy and affordable for homeowners,” said Dave Llorens, CEO of 1BOG. “Our 2009 Denver 1BOG campaign with REC Solar was a huge success. We are confident that this one will make a significant dent on the state’s goal of 100,000 solar rooftops by 2020.[2]”

“We are thrilled to have been selected as 1BOG’s partner for the upcoming Denver program,” said Cary Hayes, Senior Regional Manager at REC Solar. “We have worked with 1BOG in several markets around the country and have found the group model to be great for our business and our customers.”

The 1BOG Denver solar program is available now to local homeowners from Fort Collins to Colorado Springs including the cities surrounding the Denver area through October 14, 2010. For more information, details about pricing and products or to sign up, visit the 1BOG Denver homepage at www.SolarDenver.1BOG.org.

About One Block Off the Grid

One Block Off the Grid (1BOG) helps you buy solar panels for your home by researching local solar installers, negotiating group discounts and managing the entire solar buying process from beginning to end—at no cost. 1BOG membership is free and gives homeowners access to exclusive, pre-arranged group discounts, educational tools and advice from an experienced team of solar advisors. Homeowner members are confident that 1BOG’s installation partners have been carefully vetted on products, install practices, long-term stability as a company, as well as a great group discount rate. 1BOG was founded in 2008 in San Francisco, California and has active solar programs in 15 markets across the United States. For more information, visit www.SolarDenver.1BOG.org.

About REC Solar

REC Solar, Inc. specializes in grid-tied solar electric design and installation, offering affordable solar solutions for all residential, commercial, government and utility customers. With a local presence in all major solar markets in the USA and millions of watts installed, REC Solar is committed to lowering the cost of solar power through efficient processes, innovative products and outstanding customer service. REC Solar has installed more residential solar electric systems in the US than any other company. REC Solar is among the nation’s largest solar integrators and currently has over a dozen offices throughout five states (AZ, CA, CO, HI, and OR). For more information, visit www.RECsolar.com.

[1] Financing subject to credit approval
[2] http://www.colorado.gov/cs/Satellite/GovRitter/GOVR/1251575069016

Envision Solar Announces the LifeVillage, a ‘Solar City in a Box’

Envision Solar International, Inc. (OTCBB:EVSI), a leading solar planner, architect and inventor of clean energy systems, announces its newest solar innovation, the LifeVillage, which offers rapid and widespread deployment of safe, system-built, solar-integrated buildings that provide shelter and clean energy in times of crises.

Using the most cutting-edge and efficient solar photovoltaic (PV) panels, Envision Solar’s LifeVillage offers clean energy and durable steel-framed buildings where traditional electrical power generation and the associated transmission and distribution infrastructure cannot go. At 3,500 square feet of habitable area, the LifeVillage has the unique potential to provide a solar powered clinic and/or schoolhouse, residences, purified water, refrigeration and modern communications facilities.

The LifeVillage can also be tailored to an extensive array of applications, depending upon the situation and need. At up to 50kW of generation capacity, the LifeVillage can provide electricity to the surrounding community, offering power for such needs as charging cell phones, solar lanterns, and batteries for hundreds of families.

Integrated with large battery systems, the LifeVillage provides clean and reliable power at any hour of the day or night which is especially beneficial in times of crisis. These solar integrated buildings can be rapidly installed on site in just a few days by unskilled workers.

In an effort to build the best possible product that could be shipped to remote locations, Envision Solar partnered with Nuconsteel to frame each LifeVillage using light gauge steal. Envision Solar’s partnership with Nuconsteel includes access to the Mobile Framing Solution, roll former and light gauge steel technology, all of which offer a distinct and easily-deployable feature for the LifeVillage product.

By assembling the LifeVillage onsite, Envision Solar can cut down on the need for a manufacturing plant, costs, time, and labor significantly. Fabricating onsite also considerably reduces costs associated with shipping, and allows commoditized steel to be sourced in-country, if available.

“In light of the recent earthquake activity and rebuilding efforts in countries like Haiti, it is crucial for under-developed nations to have a quick, reliable energy solution, like the LifeVillage, in times of crises,” said Robert Noble, CEO of Envision Solar. “The LifeVillage is comprised of very simple, moderately-sized buildings that can do very big jobs – like provide purified water, refrigeration, medical facilities and transmission capabilities for cell phones, Internet, radio and television – in a time when recovering communities need help the most.”

For more information on the LifeVillage or other solar parking arrays created by Envision Solar, visit envisionsolar.com

Andes village runs on solar energy

A remote village in the Argentinian Andes mountains runs on solar energy. As a result, Misa Rumi is one of the first villages in the world to switch over to 100 percent sustainable energy.

Soda bottle solar water heater from Brazil

This self-built solar water heater is made of plastic bottles, black painted milk cartons and PVC pipes. It is popular in southern Brazil.

The water is heated passively by solar energy. As the hot water rises, it is naturally replaced by cold water, so no pump is needed.

For more information see eco-ideas.net

Win a $5,000 Credit in National Solar Sweepstakes

(San Francisco, CA) – What’s new for SolarDay 2010? How about a national Solar Sweepstakes.

It’s free to enter the $5,000 solar sweepstakes on the SolarDay website to win a chance at a $5,000 credit off a residential or commercial solar installation for homeowners in the U.S.

Really Reducing Your Monthly Energy Bills

Why enter? Energy prices are going up, again. People with solar installations on their homes and businesses can dramatically reduce their monthly energy bills. And, there are many incentive and rebate programs that can reduce the cost of a solar installation by nearly half. Plus, new programs allow you to pay off your solar installation through your property taxes and other methods. Some solar companies will install a solar installation at no cost – and simply charge you for the electricity you consume – at a guaranteed rate with no surprises.

Check out the SolarDay 2010, Solar Sweepstakes at: www.solarday.com.

Somebody will win a $5,000 credit for a home or business solar installation. With existing government rebates, that credit can be worth close to $10,000 off the cost of your installation.

You Can’t Win if You Don’t Enter!

Constellation Energy Completes Solar and Wind Installation for University of Toledo

BALTIMORE, Mar. 29, 2010 – Constellation Energy (NYSE: CEG) today announced that its subsidiary, Constellation Energy’s Projects & Services Group, has completed installation of a 1.2 megawatt solar and wind power system at the University of Toledo’s Scott Park Campus of Energy and Innovation in Toledo, Ohio. The campus will utilize solar and wind power to generate electricity and the university’s commitment to sustainability also provides students with firsthand educational experiences with renewable technologies.

“Renewables have a twofold importance for colleges and universities that are looking to improve their sustainability and expose students to careers in alternative energy,” said Mark Huston, managing director of retail energy, Constellation Energy.  “We are proud to have developed this project with the University of Toledo and look forward to years of clean energy production as well as years of inspiration for a generation of students that will embark on green careers.”

“The creation and production of clean, renewable energy sources is vital to the way we power our world. That’s why The University of Toledo created the Scott Park Campus of Energy and Innovation,” UT President Dr. Lloyd Jacobs said. “Our relationship with Constellation Energy for the solar and wind electric generation systems on that campus will help students and researchers advance the technology that will power our future.”

The project utilizes thin-film-on-glass photovoltaic solar technology that was originally developed based on research at the University of Toledo.  Constellation Energy’s Projects & Services Group also installed a 132-foot wind turbine at the site.  Together, the solar and wind systems are expected annually to generate power equivalent to the amount of electricity used by 140 homes in a year.  Generating that same amount of electricity using non-renewable sources would result in the release of more than 1,000 metric tons of carbon dioxide, a greenhouse gas, and the equivalent of the emissions from 200 passenger vehicles annually.

Constellation Energy finances, designs, constructs and owns these solar installations and supplies power generated on-site to the customer over a period of 15 to 20 years. This creates an attractive and affordable model that requires no upfront capital from customers, such as The University of Toledo, and reduces customers’ use of power from the electrical grid and associated carbon emissions. Constellation Energy’s Projects & Services Group has developed a number of renewable energy projects for universities throughout the U.S., including a 17.1 megawatt system under development on the grounds of Mount St. Mary’s University in Emmitsburg, Md., that will be one of the largest solar installations in the U.S. when completed.

Constellation Energy currently has approximately 25 megawatts of on-site solar projects completed or under development throughout the U.S., and announced last month that it has set aside $90 million to fund the development of similar solar installations in 2010.  Qualifying projects of 500 kilowatts generally require at least 100,000 square feet of roof space or two acres of open ground. Colleges and universities and other commercial customers interested in developing solar projects can contact Constellation Energy at Sustainable-Solutions@constellation.com or 1-877-427-2005.

Constellation Energy’s Projects & Services Group utilized the design and build services of Advanced Distribution Generation (ADG) LLC of Northwest Ohio for the project.  Plug Smart Solutions consulted and managed the project for the University of Toledo.  Solar panels were supplied by First Solar, and photovoltaic inverters were supplied by PV Powered.   The wind turbine was manufactured by Wind Energy Solutions (WES) of Holland.

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About Constellation Energy
Constellation Energy (www.constellation.com) is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located in the United States and Canada, totaling approximately 7,100 megawatts of generating capacity, and is among the leaders pursuing the development of new nuclear plants in the United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $15.6 billion in 2009.?

The Truth About Solar Power

From Time.com

As the U.S. plots its energy strategy, what are the pros and cons? Solar energy is plentiful. But is it practical?