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.

For its part, the solar industry employs more than 80,000 people in the United States and has created over 15,000 jobs during the past two years.  According to a report last year by Navigant Consulting, the solar energy sector alone will create 440,000 permanent jobs and spur $325 billion in private investment by 2016 with the right tax policies in place.

Even more importantly, the jobs created in the wind and solar industries drive U.S. productivity and enhance our global competitiveness.

Last year, the wind industry installed a record 8,300 megawatts of capacity in the U.S., bringing total wind capacity in the country to about 25,000 megawatts. As a result, for the first time, the United States now leads the world in installed wind power generating capacity. The U.S. solar industry is no slouch, either. Last year, for example, it nearly doubled the growth of solar photovoltaic installations.

Maintaining Growth and Leadership

So how can we keep this momentum going? How can we keep these two vibrant renewable energy fields from stalling?

Like many others in the solar and wind industries, we believe that a refundable tax credit is a viable solution that would have a significant and immediately positive impact here.

Why?

Because the refundable tax credit would go directly to the solar and wind developers and would be a financeable arrangement; and because it would simplify project financing, lessen industry volatility and attract much-needed early-stage technology investment.

Talking Dollars and Cents

The refundable tax credit also makes sense from a dollars-and-cents point of view.  Non-refundable tax credits can reduce a company's tax liability to zero – but not below. That means solar and wind startups, many of which take years to become profitable, may not have enough taxable income to take full advantage of the credits. Refundable tax credits, on the other hand, can drop a company's tax liability to less than zero. That means a wind or solar startup can count on a check from the government to help them get going. After that, it's all in the market's hands.

Before the economy fell apart, venture capitalists or Wall Street investment banks typically provided this early-stage funding to wind and solar developers, but now, given current market conditions, that is not likely to continue, so Washington DC has an opportunity to step in and play a very constructive role  with role with refundable tax credits as part of the economic stimulus plan.

Keeping the Eco Engine Running Smoothly

The hype and hope surrounding clean technology has been so overwhelming that you'd think the green energy machine was a Maserati. But even a Maserati needs an oil change and tune up now and then in order to deliver on its high-performance promise and potential.

And that's exactly where we are right now with the sustainable industry revolution.

So, in that vein, consider the refundable tax credit for solar and wind as a mere lubricant that will keep the eco engine running smoothly and profitably for generations to come.

Michael Butler is Chairman and CEO of Seattle-based Cascadia Capital, LLC, a national investment-banking firm that is helping sustainable industries finance the future; Jamie Boyd is a senior vice president at Cascadia.

The above opinion piece is from independent writers and is not connected with Greentech Media News. The views expressed here are those of the authors and are not endorsed by Greentech Media.

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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