Posted by Walter Rumpf on Wed, Jun 12, 2013 @ 10:00 AM
To follow up from last week’s blogpost, we are looking at Power Purchase Agreements, also known as PPA’s or “Energy Service Agreements”. Similar to the solar lease, this unique and innovative model has caught on very quickly because it requires little-to-no upfront payment and immediately provides homeowners with their electricity for less. Power Purchase agreements currently only work in selected markets but that number is quickly growing because of the tremendous boon to solar installers working in the states where such programs are allowed.
Power purchase agreements operate very similar to a solar lease, in both models customers agree to a lower monthly payment in exchange for having the solar system installed on their roof. There are some minor differences with PPA’s being more of an evolved form of the residential lease that was popularized by SolarCity. The solar PPA model was originally established for utility and commercial systems by investors and developers to install solar projects for businesses that wanted to go solar and save money. In 2011, the solar PPA model was scaled down to work on a residential level. Compared to the lease option that was available the PPA provided a much more comprehensive model for residential solar energy.
Pay for Solar Power not Solar Equipment
Where a solar lease differs from a PPA is what you are actually paying for with those monthly payments. In a solar lease agreement, the customer agrees to lease the equipment that is installed on their roof for one flat monthly payment, similar to a car lease, the payment doesn’t change throughout the year and often is escalated by a small percentage each year to keep pace with inflation. Under a power purchase agreement, you agree to buy the power from the solar similar to the way you buy the power from the utility in units of power (kWh), the rate that you pay for the solar power is lower than the current rate you pay the utility. This would be similar to going to the gas station and getting your gas for 10-20% less than it’s current price and locking in that price for as long as you owned that car.
The third party owner receives federal and state energy rebates, financial incentives, and tax write-offs instead of the homeowner but the homeowner gets a solar system on their home, the benefit of having a solar home if they have to sell, and a guaranteed electricity purchase price cheaper than they can buy energy from the local utility. Agreements are generally structured over a period of 20 years. Leases and power purchase agreement can be transferred to the new homeowner in the event the home is sold.
Power purchase agreements are not available in all states, but in markets where utilities and policies allow for third party ownership, the number of solar installations has risen dramatically during 2012 and is continuing in 2013. In some states, like Missouri, third party ownership of systems isn’t allowed through the utilities rebate program. It is likely we will see further expansion of third party system ownership because it eliminates the barrier of upfront installation costs.
What other factors contribute to making PPA’s viable in a given market? In areas where electricity is cheap, it is difficult to provide a model where the solar is competitive with the costs currently available to consumers through the utility. But recent decline in prices for solar combined with the need for utilities all over the country to upgrade their infrastructure (and passing those costs to consumers) suggests that this won’t be the case for long. Rebates and incentives also supplement those low electricity rates to make solar power more affordable. In markets like California and Hawaii, solar is already much cheaper than utility prices (many other markets are very close). It does also help to live in an area where there is adequate sunshine to maximize solar production, however studies have shown that this is not as big of a factor as many would think and countries like Germany have also clearly demonstrated that solar power works even with limited sunshine available.
Power Purchase Agreements are just one of many ways making cleaner electricity easier, more accessible and affordable for consumers. For the past decade, homeowners have had options for their other utilities such as their phone, cable and internet but it wasn’t always that way. For a long time, AT&T was the only option for your phone service and your local cable company was your only source for your television provider but now consumers have options. With a PPA you now have a choice where you get your electricity from and for many homeowners the choice for lower cost, cleaner electricity at a reliable fixed rate is an easy one.
So just like you would call up Directv for better television programming or switch to Verizon, give Syndicated Solar a call at 888.410.3883 and find out how we can set you up to start receiving your electricity for less.
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Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Wed, Jun 05, 2013 @ 09:00 AM
What is a solar PPA (Power Purchase Agreement)? How does leasing a solar system work?
One of the biggest factors contributing to the growth of residential solar over the past two years has been the increased adoption of third party systems primarily in what is known as a solar lease or PPA. Under these models a homeowner will have a solar system installed on their roof with little-to-no out-of-pocket investment and in exchange will agree to pay a monthly fee that is lower than what they were paying for their old electricity payments. The system is owned by a third party finance company that pays for the upfront costs of the system and is responsible for the operations and maintenence associated with the system.
There is no doubt that third party ownership of solar PV systems has played a significant role in rising residential solar PV installations. Ownership of PV systems by third parties has opened up the solar PV market to many homeowners who wouldn’t ordinarily be able to afford the upfront costs of owning their own system.
Third-party owned systems represent the fastest growing segment of the residential solar industry sector. In 2009, only 13% of residential systems in the US were owned by a third-party, by 2011 that number reached 41% and for 2012 the number is well over 50%. In Arizona and Colorado 90% of solar installations in 2012 were done through a third party model.
Many consider third-party ownership to be a win-win situation for the industry because third-party owners are able to maximize the benefits from the rebates, incentives and tax breaks and are provided with a low-risk high-return on their investment. Homeowners benefit from reductions to their electricity bills that range anywhere between 20-50% and having a "solar home" when it comes time to sell. The ability to transfer agreements or leases to new homeowners (in most cases) makes third party ownership a flexible and reasonable option. Everybody ends up happy.
The indirect benefit of third-party solar PV ownership is the boost that it has provided to the industry and the economy. With reduced barriers and increased popularity, solar installation companies (like Syndicated Solar) are seeing an increase in customers and the need to bring on more employees in order to accomodate the growth. Third-party owners are also responsible for maintenance on these systems, providing more long-term jobs. The economic benefits of third-party ownership cannot be overlooked or underestimated.
Third party ownership, whether through a lease or a PPA, has eliminated the initial cost obsticle that was once the biggest barriers for homeowners to add solar. Homeowners now have an alternative option for where they buy the power for their home. Solar installation companies are now able to brand themselves differently and get in front of more people who might have once seen cost as an issue. Utility companies who once had what some might consider a monopoly are now getting nervous over the encroaching competition. Similar to switching your home phone and internet provider, homeowners can now switch their home electricity provider and in many cases, get a lower-cost, cleaner and reliable solution for their home energy needs.
If you are interested in learning more about how you can start getting your electricity for less, please contact Syndicated Solar at 888.410.3883 or visit them online at http://syndicatedsolar.com
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Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Wed, May 29, 2013 @ 09:00 AM
Perhaps you saw something in the media about the recent fire at the Webster Grove High School in St. Louis, Missouri on May 18, 2013. The fire department chief said that it was “possible” the fire was sparked by one of the school’s solar panels. Other news and media outlets have directly credited the schools newly installed solar array (February 2013) for the cause of the blaze. Although this may be the case, the reality is that there is a very low risk of fire actually beginning in solar panels themselves and there tens of thousands of systems all over the United States that have never had an issue.
The likely cause for a fire from a solar installation lies within the wiring that connects the electrical system together. Like any electrical system, the National Electrical Code (NEC) governs solar arrays maintenance and inspection. These systems have breakers and fuses that prevent wire shortages and sparks from happening, however there is always a small chance that something like this can happen.
Here are the two primary maintenance related issues that can lead to fires beginning in any electrical system (not just solar panels)
- Corroded cables and connections resulting from exposure to natural elements can cause the system to completely fail or to start an electrical fire.
- Wiring between junction boxes can come loose or if wires are not properly protected it is possible for animals to gnaw through the housing and bite into the wires. These represent the greatest fire risk in solar panels but are extremely rare.
- Improper system grounding using lower quality materials and/or improper routing to ground can lead to ground faults that with older equipment can go undetected.
The most notable fire due to a solar installation was in 2008 at a Target store in Bakersfield, CA. To call it a fire isn’t really fair either because it was really one panel (out of 400+) that was “smoldering” on the roof. Detailed reports show that through a series of several highly unlikely occurrences related to the systems ground fault protection, what is known as an “arc” occurred within the electrical lines powering the system. There are several protection mechanisms and overrides throughout the system that prevent these types of hazards from happening. Since 2009 even more drastic improvements have been made in wiring, inverter and panel technology as well as stricter guidelines in building codes.
It is important that you alert your fire department to the fact you have solar panels so they know how to handle a fire at your home. For firefighters there is a risk of electrocution when assisting on homes that have solar panels installed. Having isolation switches to turn off power into the home from the solar system and isolate it make it safer for firefighters and better for your home. The reality is that with proper maintenance you should have no problem with fires beginning in a solar panel.
Syndicated Solar takes safety very seriously and ensure that all of our systems are installed to exceed the guidelines set forth by the National Electric and local building codes. It begins with our installation teams; through our Authorized Integrator program we select the most experienced people and further train them to be experts within their field. From the beginning of installation, a high level of detail is paid to our installation process to make sure that there are no loose wires or connections and that every wire is coated and sealed properly. After installation we closely monitor our systems to eliminate the likelihood of any potential problems. Finally we use the latest most state-of-the-art technology such as micro-inverters and arc-sensing disconnects with the industries highest safety ratings.
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Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Wed, May 22, 2013 @ 09:00 AM
The utility solar market grew more than any other sector in 2012 seeing a 134% growth from 2011. Like its name implies, utility scale PV solar refers to very large-scale solar systems that are implemented by electric utilities to generate large amounts of electricity for use on their grid. Utility scale solar is often defined as anything over 500kW in size, which is enough to power 100-150 average homes and is about 2000 solar panels. Many of the projects we are seeing come online today are 20-100 times larger between 10-50mW. The most defining characteristic of utility-scale solar is that the power generated is fed directly into the established electricity transmission grid. In commercial and residential solar the power feeds into the home or business to meet the building’s electrical needs before going back into the grid.
In most cases utilities have agreements similar to what solar companies like Syndicated Solar offer their customers, where they buy the power from the solar company at a set price. In the case of utilities they buy the power from a developer or a finance company. Some utilities, such as Duke Energy who provides power across the eastern United States, have opted to build or buy their own large solar plants in favor of offering rebates and incentives to customers. Price declines continue for utility solar which is able to capitalize on economies of scale; the average price for installations at the end of 2012 was $2.27/watt down almost 30% from the final quarter of 2011 ($3.20/watt). Utillities are favoring solar in order to meet the renewable energy mandates set forth on them to acheive a smaller environmental footprint. For the utilities, solar offers lower costs, less risky technology and large PV projects can be ramped up and brought online quickly.
Unlike residential solar and commercial solar which use flat-plate mono and poly-silicone panels, a utility scale solar project (aka farm or array) utilize solar collectors from a variety of technologies. Many utility-scale installations are concentrated solar arrays that use parabolic trough technology, concentrating lenses, and dual axis tracking to track the sunlight throughout the day to optimize the capacity and conversion efficiencies of sunlight to electricity. Some more recent utility scale developments have gone the other way using thin-film solar technologies which are not as efficient but are cost-effective. In some areas in the United States thin film power plants already offer electricity prices cheaper than building fossil fuel resources. Many of these very large utility scale solar projects and plants are located in the western and southwestern desert states including California, Nevada and Arizona. First Solar recently installed a thin-film solar plant in New Mexico, which costs the utility 30% less per unit of power than their current costs to produce energy using coal. With savings like this it is easy to justify using a couple more panels and using a little more area.
Utility scale solar is growing quickly thanks to several factors. Technology breakthroughs, renewable energy mandates enacted by several states, and the availability of federal and state grants, along with tax incentives have provided the impetus to develop more utility scale solar energy plants. Utilities are also realizing substantial benefits from having increased power supply in the middle of the day charged to them at a fixed cost when demand is at its peak and fossil fuel costs are highest, especially in the summer.
Eight of the ten largest PV projects operating in the US came online in 2012. Due to the size if the installations (one utility project equals 200-10,000 solar homes or businesses) the largest amount of solar coming online in 2012 was from utility scale developments with 1,781mW, almost half (874mW) came in Q4 showing promise for larger scale developments moving into 2013. There are more than 4,000mW of utility solar projects currently under construction and another 8,000mW of projects with Power Purchase Agreements that have not begun construction.
Solar power is no longer limited to rooftops. It is fast becoming a major source for electric utility transmission and generation. This can be seen as positive news, everyone would probably much rather see a 50mW solar project brought online instead of a 50mW coal power plant. Additionally if prices for power are already cheaper utility solar definitely seems like the most economical approach. From the consumer standpoint though, one of the biggest advantages solar power offers is the ability to break away from the current monopolies that many utilities operate under. Adding a solar system to a home or business provides consumers their own source of power at a predictable and reliable cost to them whether that is through system ownership or a third party agreement. If this benefit is available wh If utilities own all the solar on their grid there is a chance that those cost savings will not be passed down to the consumer and they may still be subject to rising utility rates. If you are interested in learning more about how you can benefit of solar for your home contact Syndicated Solar at 888.410.3883 or visit our website.
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Wed, May 15, 2013 @ 09:00 AM
One of the reasons that many consumers decide not to go solar is they feel the technology is too primitive and still needs to be developed further before they will consider. Like any technology, progress is made steadily but slowly. Think about TV’s, cell-phones, computers, all have seen significant progress over the past twenty years but it wasn’t without much research and testing being done with minor advancements at a time. Those products are now seen as a necessary item and now they are in almost every US home. As prices for electricity continue to rise, the need for home power generation will become more realized. So if you are waiting for that new technology, know that you are going to be missing out potential energy savings now and in the future. With that said, here is a look at what could be some of the recent breakthroughs and potential solar technologies of the future.
Pentacene Solar Cell Coatings Breaking Barriers
Up until now, a fundamental barrier referred to as the Shockley-Queisser limit has held that solar conversion of sunlight into energy cannot exceed an efficiency level of 33.7% but a team of MIT researchers has finally disproven that theory. The team was successfully able to demonstrate “singlet exciton fission” in which a solar cell coated with pentacene was able to make a photon knock two electrons loose instead of one electron in a typical solar cell currently being used. The ability to knock loose two electrons instead of one would reduce the amount of sunlight wasted as heat instead of being converted into electricity meaning greater efficiency levels.
According to early research this technique will allow solar cells to surpass the Shockley-Queisser limit. The pentacene is an organic compound capable of generating two electrons from a single photon. The pentacene covered solar cells double the number of electrons, and energy, that can be harvested.“We think it’s an exciting direction for solar to improve its efficiency” said Marc Baldo, engineer and co-author of the study.
The process of singlet fission has been around since the 1960’s when it was first discovered but the process has never before been harnessed in solar cells. The team at MIT confirmed that pentacene was in fact producing two electrons for every photon of light. In the next step they coated the top of a silicon cell to see if the cell could harness more energy and discovered that the test solar cell did exactly that. It increased the amount of energy harvested from the blue and green light spectrum. The pentacene coating only works on blue and green wavelengths of light though, not the entire visible spectrum.
Nonetheless, the study is the first to demonstrate that pentacene can be used in a solar cell to make more energy. It represents a step towards creating solar cells that could become significantly more efficient than current silicon solar cells.
Solar PV Cells Achieve New Levels of Efficiency Using Nanoscale Structures
At the Fraunhofer Institute for Solar Energy Systems, along with current research on nanotechnology in the science world, a new nanowire configuration using indium and phosphorous was able to deliver as much electricity as traditional indium phosphide thin film solar cells even though the nanowires covered only12% of the device.
Physicist Magnus Borgström of Lund University in Sweden led the research. When a solar cell employing nanowires was exposed to sunlight the cell was able to convert 14% of the incoming light to electricity, which is a new record. These results open up the possibility for cheaper and more effective solar power. Borgström believes these nanowire solar cells could be cheaper if the process can be industrialized.
The nanowire solar cells use a novel semiconductor that is a combination of indium and phosphorous. The semiconductor is capable of absorbing much of the light from the sun (the common term for this is band gap). Currently, it absorbs 71% of the light above the band gap and Borgström believes that can be further increased.
The possibility is strong that these nanowire cells could even be built into mutijunction solar cells which are compound devices that include several different types of semiconductor material that are arranged in layers so they can absorb as much of the sunlight’s energy as possible. Multijunction cells have converted up to 43% of the energy in sunlight into electricity making multijunction cells the most highly efficient photovoltaic devices in the world.
Multijunction solar cells are the most expensive type of photovoltaic devices but Borgström believes they can be made cheaper by combining with low-cost lenses to concentrate the sunlight onto smaller versions of the cells (nanowire cells).
It is an exciting development that holds great promise to increase solar cell efficiency at cheaper prices. Both of these breakthroughs are proof that innovation will continue within solar efficiency and technology. Syndicated Solar currently uses the latest in state of the art solar technology. We make sure to stay up to date and has tabs on all of the newest improvements that are in NEC testing and approval that will be available in the next five years. If you are interested in finding out more about upcoming technologies please visit us online or call us at 888.410.3883 and we will be happy to work with you.
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Fri, May 10, 2013 @ 10:13 AM
The solar outlook for 2013 is very promising. 2012 saw huge rises in solar installations across the country. So much so that solar energy is now the fastest growing source of electricity in the US-surpassing wind generation. During 2012, approximately 14 million solar panels (3,313 MW) were installed in the US, a 76% growth from 2011. 11 states added 50mw or more of solar capacity, representing a huge growth from 2010 when only 5 states added that amount of solar capacity. Specifically on the residential side over 82,000 homes installed solar further demonstrating US consumers belief that not only is solar here to stay but that it is a great investment for a homeowner to make.
Seven out of 10 Massachusetts residents surveyed earlier this year felt solar was the best investment a homeowner could make compared to renovating your home or buying a new car because it provides a better return on your investment. Their primary justifications for adding solar were reducing energy costs, environmental benefits, and the long term value added to your home. These results are in line with many other surveys that have been taken.
The typical return on investment for a residential solar system averages anywhere from 13-17% depending on your location, the cost of power, and available rebates and incentives. What makes the investment in solar much different is the extremely low risk that is associated with this number, unless the cost of electricity decreases or the sun stops shining you are guaranteed to see those types of returns.
To give a better idea of ROI, let's look at solar compared to a home improvement or purchasing an automobile, many consumers feel they are better off investing in a solar system for their home. Cars only depreciate in value and therefore you only lose money on them-you can’t earn a return on buying a car. Home renovations certainly can add value and provide a high return on the investment but unlike adding solar power they can’t compete when it comes to generating income. One often-overlooked benefit of solar panels on your home is the increased home value from having your own power producing plant on your roof. By adding solar panels, homeowners decrease the operating costs of their home, which is appealing to almost anyone today. Studies from California (the US state with by far the most installations to date) have shown that not only do homes with solar sell for more, they also sell much faster.
Resident Eric Fix had this to say “solar yields immediate, no-maintenance dividends and boosts the home’s value. Renovations can be hit or miss.”
The most cited reason for installing solar is saving energy with helping the planet and increasing national energy independence cited as the second and third choices for installing solar.
The federal tax credits available for installing renewable energy continue to be a primary driver for installing rooftop solar. Most residents concurred that owning their systems outright provided the quickest pay back making the system cheaper in the long run because all of the savings go back to the owner and not to a middleman like in a lease arrangement.
With the continuing decrease in solar module prices and federal tax incentives the ability for more homeowners to own their own system is increasing. The continued growth of the American solar market will continue to depend upon pro-solar and pro-renewable energy governmental policies and programs, innovative financing programs and tax friendly investment vehicles for solar. Finding ways to reduce start –up costs is crucial to increasing the number of solar installations. Solar leases and power purchase agreements help more enter the market but the real benefit for homeowners is in owning their solar systems.
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Mon, May 06, 2013 @ 05:13 PM
National Parks are looking for ways to help reduce energy costs and many are turning to solar energy as a way to provide energy cost protection in the coming years. With dropping solar PV prices, National Parks see solar energy as a way to save money and close the gaps left by decreasing park budgets.
Death Valley National Park’s Furnace Creek Resort in California is an example of the cost savings parks can achieve. The park’s 1MW solar PV array reduced the amount of energy the park resort had to purchase by 30% since it was installed in 2008. According to EPA estimates the system has offset 665,000 tons of carbon dioxide, nitrogen oxide and sulfur dioxide emissions, the equivalent to 690,000 driving miles. The 1 MW solar installation at Furnace Creek, is owned by Xanterra Parks & Resorts. The installation covers a 5-acre area and has resulted in a 60% reduction in electricity usage.
Likewise, Yosemite National Park is reducing energy bills by $50,000 a year with a solar array of 672KW. A smaller installation at Arches National Park Devils Garden campground has reduced electricity costs by $10,000 annually and reduced the time generators run, from 24 hours a day, down to less than 4 hours a day.
The benefits of installing solar power in national parks extend beyond saving energy costs. Many of these parks are located in remote areas and solar is not only less expensive to install than running power lines out, it is less intrusive to the environment than installing power lines, and cheaper to run than diesel generators. Environmental benefits are high on the list of national park concerns. Making the parks more climate friendly is a goal for the National Park Services. The goal is to reduce their carbon footprint back to 2008 levels by 2016. Solar power is contributing a big part of their green operations goal.
With the decreases in solar module costs and federal financial incentives and support, solar is able to make electricity more available to rural, remote locations. It also saves National Parks money in the process as well as reducing environmental impacts. It is a win-win situation for the Parks, the environment and for the solar industry.
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Thu, Apr 25, 2013 @ 05:12 PM
News and media coverage is often quick to jump on stories of big solar companies demise. In 2011, there was a lot of attention given to American panel manufacturer Solyndra defaulting on it’s $535 million government-backed loan. A year later in 2012, Colorado solar manufacturer Abound Solar declared bankruptcy, they had received $400 million in government-backed loans. Both of these companies had unique solar products that used different less efficient technologies and that was the biggest reason why they failed. In 2013 though we saw what was at one time the worlds largest solar manufacturer, Chinese based Suntech, default on a combination of Chinese and US loans and is now going through the Chinese equivalent of bankruptcy.
The list of solar companies who have not succeeded is long, Greentech Media recently put together a artilce titled, “Rest in Peace: The List of Deceased Solar Companies.” In the articled GTM Editor in Chief Eric Wesoff notes that “We listed the more than 200 VC-funded solar startups back in 2008. We knew that we'd be writing about most of them on their way up—as well as on their way down.” An IMS Research report in late 2012 predicted “As 2012 comes to a close, fewer than 150 companies will remain in the photovoltaic upstream value chain, down from more than 750 companies in 2010.” Looking forward into 2013 it predicts, “Most of the consolidation will involve companies going out of business entirely. Many integrated players, particularly those based in China, will fold up shop in 2013.” With many Chinese companies expected to be going out of business there will be a lot less solar panels being manufactured which could be seen as a potential problem with the growing worldwide solar market. But a strong case can be made that these companies are one of the root causes of a lot of the solar industries recent problems. We can thank these companies for helping to drive down prices but with their departure there will be more stability and less artificial pricing.
Simultaneous with companies failing, there are numerous other companies that are doing extremely well and show great promise for the future. Smart investors are also backing the solar industry in the right ways. Namely buying large solar farms that provide steady reliable income over a long period of time. So far 2013 shows a very positive outlook with many of these successful companies beginning to turn a profit. These remaining companies will benefit from their solid business practices and will benefit as the energy market begins to realize that adding 1mW of renewable energy, such as solar, is much more cost effective than building a new 1mW fossil fueled power plant.
When we look at solar, we need to compare it to other new technologies that we have seen emerge in the past. The automobile industry, the telecom industry, computers. In every case you see a lot of companies enter at the beginning competing to gain market share and over time some companies fail, some companies are bought out by larger companies and the best companies start to stand out from the pack. You will notice as well that none of the industries saw a sharp increase or decrease in their growth, they all have grown gradually over time and still continue to grow and consolidate to this day. So when you see a news story that another solar company has gone under, know that there are many other companies that are thriving and advancing the industry forward.
What it means for consumers
It’s hard to predict what companies are going to be in business and which are going to fail, just over two years ago Solyndra was being installed on roof’s all over America and at the same time Suntech panels were going in all over the world. There are many home and business owners with these panels that are now in an interesting position, in most cases such as Suntech, these companies often have separate entities set up to provide their warranties, or the company has an insurance policy in place to cover or the warranty is shifted to another company. In almost all cases these customers will be taken care of if something malfunctions in their system ten years from now. They will either receive replacement equipment or financial compensation.
If you are interested in adding solar to your home and have a little unease about solar companies going bankrupt make sure you are doing your research not just on the company that you are working with but also the products that they carry. Look at those companies and see how long they have been in business for, what are their other core competencies, what does their past financial record indicate. Syndicated Solar makes it a point to only work with the best and most solid performing companies in the industry for their solar equipment.
If you would like to learn more about solar equipment and see if a system is right for you, contact Syndicated Solar at 888.410.3883 or visit us at syndicatedsolar.com
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Thu, Apr 04, 2013 @ 05:17 PM
The Solar Energy Industries Association (SEIA), in partnership with Green Tech Media (GTM) Research, released the 2012: The Solar Year in Review report in March. The report analyzes data of solar installations from the previous year to recap and report the SEIA annual findings. The report also analyzes the markets for 2013 to determine which areas will experience the most growth the following year and leading up to 2016. Solar power is quickly growing as a popular power source in the United States with the industry growing 76% over 2011 totals. This equal an additional 3.3 GW… enough energy to power 750,000 homes. SEIA predicts growth to continue in 2013 and is anticipating 4.3GW of additional capacity to come online.
The price to install solar continues to come down making solar more affordable, and easier for Americans to take advantage of this natural energy source. Combined with increased pricing for electricity rates in many states, solar is becoming more competitive price-wise when compared with conventional methods of receiving electricity in homes and businesses. In these markets, SEIA and GTM provide an in-depth look at the top states in 2012 and give some insight on what will be some key markets moving forward.
Record Highlights
With over $11.5 billion worth of solar system installations, 2012 was a big year for solar power. Many states saw record growth in their local solar industries from previous years. A large part of the increase is due to affordable solar that is available in many states. This is especially true for residential solar. The residential market grew 63% from 2011 with 48 mW coming online in 2012. A major driver for the increased solar capacity in the solar residential sector is the adoption of third-party ownership, which allows systems to be installed for little to no money down and provides customers with immediate savings on their monthly electricity costs.
During 2012 in Arizona, over 90% of the new systems that came online were through a third-party finance company. Colorado was second with close to 90% of new residential installations being done through a third-party PPA or Lease agreement. The smallest industry growth came in the non-residential sector with an 8% increase from 2011. The growth is primarily attributed to a slight increase in business installations. These included government and non-profit agencies, especially those that were able to realize a large cost savings. By far the largest growth for the entire industry came in utility-scale system installations with a 94% increase from 2011. Many of the large utility projects that have long been in planning and development finally came online in 2012.
The industry report also credits decreasing price as major factor contributing to the growth of solar. Prices have shifted from $11 per watt in 1998 to $8 per watt in 2006 and reached prices below $4 per watt in the last quarter of 2012. Surprisingly, the decrease in price shows an exponential relationship in price decrease relative to the actual capacity that is being added. Price declines have been predicated primarily on the falling price of photovoltaic (PV) panels in addition to other system equipment such as the inverters and racking. PV equipment and components manufactured in the US saw their costs decrease 30% from the beginning of 2012 showing that the solar manufacturing market is also very strong and competitive with the rest of the world. Prices for equipment and components began to stabilize more in the latter half of 2012 and it is expected that they will continue to stabilize further in 2013. Additionally, the market has seen a consolidation of smaller companies merging with bigger companies, which leads to direct competition between more-established companies and forces them to tighten up their prices to win more projects.
The Top States
California and Arizona top the charts for growth in solar power installations, mostly due to the stark drop in prices (with many dropping as much as 20 percent). Year-in and year-out California leads the country with solar installations. After so many years of being the number one market, California now has more cumulative solar installed than the next four largest markets combined (Arizona, Hawaii, New Jersey and Colorado).
This year, California again was the market leader was the first state to break the 1,000 MW barrier for capacity installed. Arizona had the second most installations in 2012 with more than 750 MW being installed. From there, New Jersey was 3rd installing over 400 MW installed and then Nevada came in at just under 200 MW installed.
Hawaii showed the largest growth in solar from 2011 with the addition of net metering and very high electricity rates. In some cases in Hawaii, certain grids receive more than 100% of their power from PV at certain times.
On the non-residential side, New Jersey was the leader in 2011. In 2012, California was the leading non-residential market much of which was driven by school programs and other municipal organizations looking to reduce their operating costs. Massachusetts showed the largest growth in 2012 but is expected to see a slow in non-residential installations similar to what New Jersey saw last year. It is expected that New York will also see a large growth in non-residential installations.
Growth in the solar market is expected to continue in 2013, thanks in part to the new mechanisms that are in the works to make solar even easier to obtain, as well as more cost efficient, for homes and businesses. Moving forward, it is forecasted that California will continue to remain the largest residential market even after the rebate offerings come to a close. Arizona will also continue to grow as electricity rates rise despite incentives being exhausted. Two states that are expected to become major players in 2013 moving forward are New York and Texas., New York announced its New York Solar Initiative and instituted net metering. Texas has a great resource and continues to provide streamlined operations to bring projects to fruition.
Overall, SEIA expects that residential solar will continue to grow steadily. It will be important to keep an eye on states where “retail rate” parity is reached. This is where the price that utilities charge for electricity is actually more expensive than what it would be to use solar…and this is already happening in states like California, Hawaii and some areas in Arizona. If you are interested in reading more about the information in this report you can download the executive summary for free here.
If you are interested in learning more about the solar market or have further questions about the information presented in this blog, please email marketing@syndicatedsolar.com. Syndicated Solar is a full service solar solution company providing customers with the opportunity to get their electricity for less. If you are interested in learning more about how you can join the solar revolution and lowering your electricity give us a call at 888.410.3883 or visit us online at www.syndicatedsolar.com
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Marketing, Sustainability and Solar PV Denver/Boulder, Colorado
Posted by Walter Rumpf on Mon, Mar 25, 2013 @ 10:01 AM
Guest Blog Post
By Chris Meehan, writer for SolarReviews
Last week GTM Research and the Solar Energy Industries Association (SEIA) released the U.S. Solar Market Insight: Year-in-Review 2012, an annual report that tracks growth in the solar industry. The report was largely positive, with the U.S. experiencing 76% growth over 2011 and fully 3.3 gigawatts of solar installed throughout the country. It also projected that more, 4.2 gigawatts of solar, will be installed in 2013. Both photovoltaics and concentrating solar power experienced record growth across the U.S. last year. But during a conference call discussing the report, SEIA CEO Rhone Resch highlighted some clouds that could slow the powerful movement towards more solar. As it’s become an increasingly popular energy source, its fossil fuel foes are fighting back by promoting legislation at the state level that would make solar more expensive and shrink markets for solar. Already such legislation was introduced in Ohio, North Carolina and Vermont.
"There are a lot of challenges that are occuring to RPS's (Renewable Portfolio Standards) and we're finding that most of these are occuring from frankly conservative think-tanks, like Goldwater in Arizona and the Heartland Institute. Obviously these are funded by fossil fuel interests; some in part by Koch brothers. And this very conservative approach is focused on these states and introducing legislation that frankly goes completely against what the voters want," Resch said.
An overwhelming majority of the public—over 90% of voters of all stripes want more solar, according to Resch. They also want more wind and geothermal energy. And in more states, solar energy is becoming a more significant part of states‘ economies. This includes states like Arizona, California, Colorado, New Jersey, North Carolina and Ohio, for instance. “We are now starting to become a significant part of the new energy generation in these states and they’re recognizing us as a threat,” he said. “So you have a huge funding source coming from the fossil fuel industry trying to roll these back because we are now starting to gain hold … So their technique that they're going to use is to dump millions of dollars into trying to roll back RPS's across a large number of states.”
Resch cited actions in Ohio and North Carolina. “Those states have made huge economic strides in the solar industry. In Ohio both with manufacturing as well as in development. And in North Carolina there's a pipeline of over 400 megawatts of projects to be developed this next year,” he said.
Legislation introduced in North Carolina last week, House Bill 298, "The Affordable and Reliable Energy Act," would eliminate the state’s RPS, which has been responsible for much of the renewable energy growth in the state, including biomass, solar and wind energy generation. The legislation was proposed by a group of Republican Representative: Representatives: Mike Hager, Jeff Collins, Marilyn Avila, George Cleveland and Justin Burr and would give monopolistic utilities in the more control, according the North Carolina Sustainable Energy Association (NCSEA). “This monopoly control of our utilities limits innovation and market competition; however, the Renewable Energy and Energy Efficiency Portfolio Standard, the portion of Senate Bill 3 that House Bill 298 attempts to eliminate, was the first real opportunity for clean energy companies to compete with the utilities and offer consumers a choice,” said NCSEA’s Director of Government Affairs Betsy McCorkle. Since introduction the legislation was sent for discussion in four committees, which should slow it down—if not kill it entirely.
If you have any questions about this piece or would like to get involved to combat these recent actions, Syndicated Solar recommends writing your local representative. Many Solar Energy Associations, such as NCSEA have petitions and ways to take action listed on their website.
About the Author
Marketing, Sustainability and Solar PV Denver/Boulder, Colorado