Are the Green Gears Grinding to a Halt?

In some cases, yes; but refundable tax credits can get wind and solar power going again, write Cascadia Capital's Michael Butler and Jamie Boyd.

There are growing signs of rust on the once gleaming green energy machine, and the corrosion is threatening the wind and solar power industries.

Despite the uncertain and often illiquid economy, the overall forecast for sustainable industry financing is reasonably good; but the gears appear to be grinding to a halt when it comes to wind and solar because traditional methods of power project financing are threatened by the skittish capital markets.

Certainly, the broad credit market environment has negatively impacted project financing for solar and wind power projects and made it hard to raise debt funding; however, more specifically, critical tax equity take-out financing has dried up as traditional buyers of tax credits in the solar and wind market have all but disappeared with no sign of returning soon.  This combination of events has caused venture capitalists and other early-stage investors to pull back from technologies serving the renewable power industry, because, in large measure, they believe it will be extremely difficult to commercialize solar and wind technologies if there's no funding from tax equity investors.

Painful Metrics

The metrics show the pain currently being experienced by solar and wind power companies. Installations are down anywhere from 30 percent to 50 percent; prices of wind turbines and solar panels have dropped by at least 25 percent over the past six months; and equity valuations have declined, in some cases, by 50 percent or more from where they were 12 or 18 months ago.

New entrants like Microsoft and other large corporations are beginning to explore the solar and wind tax credit space, but no one is moving forward in a meaningful way, and no one is moving fast enough to fulfill current market demands. And, since appetite from investment banks, commercial banks and insurance companies for tax credit financings related to wind, solar and other renewable projects has dwindled in terms of participants from the high teens to the low single digits, it may not matter; supply of tax equity interest simply cannot keep up with demand under the current conditions.

Stability From the Public Sector

We believe that stabilizing the wind and solar industries in the United States is a job for the public sector right now, and that government must play a commanding leadership role in helping the private sector realize its true commercial potential.

Companies in these industries are crucial from an environmental point of view; but they are even more critical from an economic perspective.

In 2007 and 2008, more than 50 wind energy-manufacturing facilities were opened, expanded or announced in the United States, adding 14,000 new jobs. More than half of those jobs came on stream in 2008, as the U.S. economy was faltering.

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Comments [11]

  • Joe Taglieri 02/17/09 10:00 AM

    To All Those Involved with the Solar Tax Credits!Whoever came up with the new Solar Tax Credit was not thinking that there won’t be much of an incentive to invest in Solar Projects for residential consumers since nearly everyone can’t afford thier houses these days let alone Solar Energy.I believe I’m speaking for all of those, who,in 2008,have invested in residential Solar Systems.Why doesn’t Congress make the New Residential Solar Tax Credit retroactive for 2008,they passed the bill in 2008!Why punish the ones who are making the effort to become energy independent!I hope someone in Congress sees this message and proposes this issue. 

    Reply
  • Joe Taglieri 02/17/09 10:00 AM

    To All Those Involved with the Solar Tax Credits!Whoever came up with the new Solar Tax Credit was not thinking that there won’t be much of an incentive to invest in Solar Projects for residential consumers since nearly everyone can’t afford thier houses these days let alone Solar Energy.I believe I’m speaking for all of those, who,in 2008,have invested in residential Solar Systems.Why doesn’t Congress make the New Residential Solar Tax Credit retroactive for 2008,they passed the bill in 2008!Why punish the ones who are making the effort to become energy independent!I hope someone in Congress sees this message and proposes this issue. 

    Reply
  • Joe Taglieri 02/17/09 10:00 AM

    To All Those Involved with the Solar Tax Credits!Whoever came up with the new Solar Tax Credit was not thinking that there won’t be much of an incentive to invest in Solar Projects for residential consumers since nearly everyone can’t afford thier houses these days let alone Solar Energy.I believe I’m speaking for all of those, who,in 2008,have invested in residential Solar Systems.Why doesn’t Congress make the New Residential Solar Tax Credit retroactive for 2008,they passed the bill in 2008!Why punish the ones who are making the effort to become energy independent!I hope someone in Congress sees this message and proposes this issue. 

    Reply
  • Joe Taglieri 02/17/09 10:00 AM

    To All Those Involved with the Solar Tax Credits!Whoever came up with the new Solar Tax Credit was not thinking that there won’t be much of an incentive to invest in Solar Projects for residential consumers since nearly everyone can’t afford thier houses these days let alone Solar Energy.I believe I’m speaking for all of those, who,in 2008,have invested in residential Solar Systems.Why doesn’t Congress make the New Residential Solar Tax Credit retroactive for 2008,they passed the bill in 2008!Why punish the ones who are making the effort to become energy independent!I hope someone in Congress sees this message and proposes this issue. 

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:54 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

    Reply
  • Richard King 03/9/09 5:59 AM

    First, remember the Renewable Energy issue eases Line Congestion; stress and strain on Generation (read Pollution), Transmission and Local Delivery all paid for by Ratepayers plus ?Regulated? Utility Profits…

    Second, after two states gave Solar a running start, it is correct to note the massive national slowdown in Commercial Solar construction activity. The problems are as varied as the individual States with inconsistent laws. Note especially New York; Pennsylvania and Arizona.  I do concede that thankfully some western Utilities are showing more interest.  A self-serving interest and at whose expense?

    In New York and Arizona, the Commercial or Residential owners of a Solar Array CANNOT own the S RECs.  In both states a quasi State Government Organization keeps the SRECs WHETHER OR NOT the owner accepts any state funding.

    In New York reports are circulating that two state courts were asked to look into NYSERDA?s Control of limited Funding and control of the S RECs.  No luck.  Neither high court would accept Jurisdiction. Should NYSERDA be declared void because it is outside of the law?  Is NYSERDA?s stranglehold so tight that even the Solar Industries association is afraid to speak up?  Further, New York?s crowing about a 21 percent Renewable Energy Goal is laughable because it is based the existing 19 percent Hydro Electric foundation which prior Federal Legislative efforts would rule not Federal RPS qualified!!

    While Ratepayers in Pennsylvania started receiving 31 + percent rate increase notices last fall (for Jan. 1, 2010) Pennsylvania Commercial and Residential projects have stalled out completely.  Funding a Solar Project requires predictable cash flow beyond 9 cents utility savings.  In Coal rich Pennsylvania, the tug of war between ?opposing? factions have left a Net Power exporting state with almost no Solar Renewable goals.

    At 700 kW, current Pa. Statewide S REC requirements are lower than the production from a single 700 kW NY NJ Port Authority supported project. While neighboring NJ program?s production goal reaches to 130 Megawatts in 2009. PA?s 2011 goal is estimated at 41 Megawatts. Any Commercial interest wanting to build a 2.0 Megawatt warehouse project will see the cash flow failure.

    Pa?s 200 percent penalty rule is just about 200 percent of nothing.  Worse, it is the major hindrance of Solar Project Funding because it is so low the few projects that could cover it leave Banker and Investor out in the S REC desert. Therefore, the Pa Solar Programs remains in collapse because Commercial builders fear lack of Utility S REC support. Watch to see if Utilities ride in on a white horse to build their own Solar Fields leaving the Bankers of User/ Owner projects totally without S REC income for their investments. Also, because the S RECs are not functional, the PEDA and total grants in Pa. have less than $11.0 Million in funding available, if and when they allow application s to be filed.  Remember ?Orderly Marketing from Business School?

    Governor Rendell (and Carnegie Mellon) made the case for Users Solar Investments at 5 percent of the 20 worst five hour peak demand periods to save ALL RATEPAYERS S250 Million a year in reduced Peak Demand Charges. PJM (and the Brattle Institute) made the same case two years ago in a five state study at three percent of the worst 20 five hour periods.
    In Arizona, again, whether or not you accept funding, owners cannot own the S RECs thanks to the Arizona Corporate Commission.  Where is the Maverick Senator John McCain when the Environment needs him?  Any wonder that Arizona has wasted years of Sun Power without a meaningful Commercial and Residential Solar Program?
    Who will study the lack of true RPS standards; wildly inconsistent Net Metering and S REC Standards; High Pollution levels;  or Utility commitments for more Ratepayer investments to pay for high cost Clean Air (such as $4.6 Billion in Ohio)? When these are studied,  the lack of a consistent US Solar Energy development policy will be clearer. 
    Note: only Delaware has even proposed a Renewable Energy Utility Board while Utilities dominate Public Utility Boards in nearly every other State.

    Hopefully our new congress and Administration will realize the Sun is bipartisan and rules for On ?site Solar should be strengthened and let Utilities keep borrowing on 30 YEAR NOTES FOR RATEPAYER FUNDED PROJECTS WITHOUT FEDERAL TAX CREDITS.  Heck, the Solar Panels come with a 25 year warranty. No Brainer? Yes. Federal Tax Credits for Utilities? No!  Level the playing field.

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