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Harnessing Solar Energy in NW Indiana

Posted by Laura Arnold  /   September 09, 2015  /   Posted in Feed-in Tariffs (FiT), Northern Indiana Public Service Company (NIPSCO)  /   No Comments

HARNESSING SOLAR ENERGY

Posted on September 9, 2015 by NWIBQ.COM; Northwest Indiana Business Quarterly Magazine

Rooftop power generation is more affordable than ever before.

by Michael Puente

In the 1985 blockbuster movie “Back to the Future,” Doc Brown famously told Marty McFly near the end of the film and looking 25 years into the future, “Where we’re going, we don’t need roads!”

If the movie was released today, Doc Brown may have said, “Where we’re going, we don’t need to buy electricity for our homes!”

That’s because in the year 2040, it’s predicted that more than half of the world’s power-generating capacity will come from sources that emit no carbon dioxide, primarily solar energy.

That’s according to a report released in June from Bloomberg New Energy Finance, an energy analysis group.

It’s expected residential homes and businesses will make a good percentage of solar power users–and generators. In Indiana, there are about 600 customers of solar power who both buy and sell the energy they use.

Solarize Northwest Indiana hopes to increase those numbers this year.

“What we see with solar energy, it’s just helping Northern Indiana move toward energy independence,” says Carl Lisek, president of the Crown Point-based South Shore Clean Cities Inc. “We all want clean water. We all want clean air. And we’re all looking at ways at just being sustainable, and this is just another opportunity for residents and businesses to take advantage of that.”

Solarize NWI is actually being spearheaded by the Northwestern Indiana Regional Planning Commission (NIRPC).

Under the program, Northwest Indiana homeowners and businesses can sign up to install rooftop solar power that is touted as being “more affordable” than ever before.

In fact, the cost to install the equipment will significantly decrease depending on the number of homes and businesses that sign up by the end of July. There is also a 30 percent federal tax credit on installation costs.

“Solarize has been all over the country. It’s like a Groupon for solar. A lot of people say they would like to go solar but it’s too expensive. We have a group discount. The more people we sign up, the lower our vendor will reduce the prices. So, we’re trying to bring the cost down,” says Kathy Luther, director of environmental programs, for NIRPC.

Funding to support the Solarize campaign is provided by the U.S Department Of Energy SunShot Initiative Rooftop Solar Challenge.

TO THE FUTURE A growing number of Hoosier homes and businesses are buyers and generators of solar power.TO THE FUTURE A growing number of Hoosier homes and
businesses are buyers and generators of solar power.

“The goal of SunShot is to reduce the cost of solar energy and our project is focusing heavily on soft costs: regulator burden, red tape, lack of knowledge, those kinds of things that make it difficult to get the ball rolling. It’s kind of overwhelming for people,” Luther says. “Solarize is designed to get passed all those obstacles.”

Luther says there are typically two ways a resident can save money on their electrical costs with the use of a solar system.

One is called “net metering.” That’s where the electricity generated from solar panels is sent to an inverter, which sends the electricity to your home. When your home is not using the electricity, the energy produced is sent instead into the power grid.

“Your electrical meter is running backwards. Once it starts using electricity again, it runs forward,” Luther says. “Basically, it’s a credit back and forth. An average homeowner may save $600 to $800 a year. The utility never actually pays you cash, but at the end of the year, they may zero you out. You may be in the hole or you could end up ahead. They start your meter roll after a year.”

Another way to save money is through a system called “feed-in tariff.” This involves the utility purchasing the electricity directly from the customer. Luther says the customer will still pay their utility bill, but they will also receive a check for the amount of solar energy they produce.

FITS RIGHT IN Advances in solar panel technology make it possible to generate power in all kinds of places, including on top of building awnings and overhangs.FITS RIGHT IN Advances in solar panel technology make it possible to generate power in all kinds of places, including on top of building awnings and overhangs.

Currently, NIPSCO will enter into a 15-year contract with the customer. Right now, customers are making about 5 cents per kilowatt hour, even with a smaller solar energy system.

“You can get a guaranteed income that way. It’s literally a payment for all the solar your home can generate,” Luther says.

The firm selected to conduct the installation is Midwest Wind and Solar LLC based in Griffith. Founded eight years ago, the firm has experience with electrical, automation and project planning for solar thermal and wind systems for both residential and commercial.

Company president Kevin Moore says the Midwest is behind such states as California and New Mexico when it comes to using solar energy.

But there’s a reason for that. “It all comes down to economics. The Midwest has relatively low electric cost. Typically, we pay about 12 cents per kilowatt hour. Out West, they are paying 17 cents to 20 cents per kilowatt hour. You can see why people out west would adopt solar much sooner than us in the Midwest,” says Moore.

With the cost of materials and installation dropping every year, solar energy is seen as more affordable nowadays. “The cost of solar has gone down so much, the economics really makes sense today,” Moore says.

Moore understands that it will take communities and residents to get accustomed to purchasing solar energy products. “It’s not like a refrigerator, washer or dryer. We know what those are and how they work. It really takes education on the part of the consumer to understand how it works, what it does and the cost involved.”

One of the biggest myths about solar is that there’s not enough sunlight in Northwest Indiana to make it a viable option. “That’s furthest from the truth,” Moore says. “Germany is the number one user of renewable energy in the world. They get about an hour less of sunshine than we do. It still works even when we have a cloudy day.”

Moore says each home has its own unique system. Some panels are installed on a rooftop, or even on land.

“Every home is really customized by us. It’s based on the amount of energy usage,” Moore says. “We asked to look at their last electric bill. We can determine if you put on 10 solar panels, it may cut your electric bill by 50 percent. Or, if you put on 20 solar panels, it may get rid of their electric bill 100 percent.”

Moore says it’s important to note that not every home is suitable for a solar panel system. An in-home consultation will determine that.

NIRPC’s Kathy Luther says part of her job is to make people feel comfortable with the whole idea of solar energy. “Some people think it’s kind of out there but in reality solar energy has been around for more than 30 years. Some think it’s too new, it’s unreliable, or may lower my property value,” Luther says. “There are studies that show that solar systems increase your property value.”

Luther adds that Midwest Wind and Solar will not just try to sell you the biggest system. A typical system can range from $12,000 to $15,000. Some systems can pay for themselves in eight years.

“There is also a 30 percent federal tax credit on your installation. That is expiring in 2016. So, right there, that is a big chunk,” Luther says. “With our system, you’ll just sign up, Midwest Wind and Solar, and they’ll come out and there’s no obligation. Midwest Wind and Solar can also look on Google to see if your house is even suitable for a solar system.”

Luther stresses that the assessment in finding out if a system is right for you is free and there is no obligation to purchase.

Midwest Wind and Solar will conduct an on-site solar assessment at your home, walk you through a proposed system design, provide you with a detailed financial proposal, and answer any questions you may have.

Right now, the cities of Valparaiso, Hobart, Gary and Dyer have signed up to be a part of the program. “We’ve had quite a bit of interest in Hobart and Gary,” Luther says. “Those are the people who have signed up to be pioneers.”

Overall, Luther says, the campaign by NIRPC is to make purchasing a solar system as easy as possible.

“It just makes it easier. You don’t have to find an installer. You don’t need to find quotes. We’ve done all that,” Luther says. “You just have to decide if this is what you want to do and if solar makes sense for your house.”

For Lisek, he says educating the public is the key in making the program a success. “There’s been a lot of confusion on the types of equipment can be used; where this equipment can be mounted; ordinances for communities and businesses,” Lisek says. “We’re hoping to ready our communities and businesses so that they are solar-ready.”

A surprising aspect has been the involvement of local school districts, he says.

“We’ve seen a lot of enthusiasm with many of our communities. The biggest contributor that we’ve seen has been our schools. Many school administrators are looking at ways of getting off the grid. Their campuses are becoming more sustainable,” Lisek says. “In the coming year, we’ll have numerous examples of organizations, businesses, schools and communities that have begun the process of moving toward solar.”

Moving toward solar, Lisek says, will have a trickle-down effect into other areas. “We believe that we all can be green. We can help with the brain-drain; we can create some new jobs with the different trades,” Lisek says. “We’ve seen some solar-panel manufactures coming into our area, which is a great opportunity. I think we’re just at the cusp of some wonderful things happening in our area.”

For more information visit SolarizeNWI.com or go to www.nirpc.org/environment/solarize-nwi.


Midwest Wind and Solar LLC President Kevin Moore is a member of IndianaDG.

Midwest Energy News: Q&A: Barry Goldwater, Jr.’s fight for solar power

Posted by Laura Arnold  /   September 08, 2015  /   Posted in solar, Uncategorized  /   No Comments

Barry Goldwater, Jr. speaking at the 2015 Arizona Young Americans for Liberty State Convention at Arizona State University in Tempe, Arizona.

Barry Goldwater, Jr. speaking at the 2015 Arizona Young Americans for Liberty State Convention at Arizona State University in Tempe, Arizona.

Q&A: Barry Goldwater, Jr.’s fight for solar power

Former Congressman Barry Goldwater, Jr.’s interest in renewable energy dates back to the mid-1970s when he was the ranking Republican on a subcommittee tasked with advancing energy research and promoting alternatives during the oil embargo.

At the time, “I didn’t even know how a light bulb worked,” Goldwater said in an interview last week with Midwest Energy News.

Over time, he became a champion of energy independence and utility customers’ rights to generate their own electricity.

As chairman of Tell Utilities Solar won’t be Killed (TUSK), Goldwater and his associates are pushing for net metering solar policies that are favorable to utility customers in 17 states across the country. In the Midwest, the group claims to be active in Michigan, Wisconsin, Indiana and Kansas.

Goldwater says “you could almost call it a conspiracy” the way utilities are trying to  recoup costs from customers who generate their own solar power, avoiding what utilities claim are subsidies by all other ratepayers to maintain the grid.

For example, a proposal in Michigan would eliminate net metering and replace it with a system that forces solar customers to buy electricity from the utility at retail rates, and be reimbursed at much lower wholesale prices. Utilities are pushing similar policies around the country.

But increasingly, Republicans and other conservatives are joining environmentalists and clean energy advocates in defending solar-friendly policies.

Goldwater sees a split within the Republican Party among libertarian-leaning lawmakers touting the benefits of solar versus those who support an outdated, monopoly utility model.

“The future is here and Republicans need to get in front and get their feet out of the dirt,” he says.

Midwest Energy News: When and why did you take up the issue of net metering and solar energy?

Goldwater: I was in Congress from 1969 to 1984 and was there during the oil embargo by the Middle East in ’74. Jimmy Carter was president and he stood up and declared war [promoting] energy independence and made it a national policy to wean ourselves from [fossil] fuel onto alternatives. I became a quick study on energy and especially alternatives, and I’ve been a student of the issue since 1975. I don’t claim to be an expert, but I appreciate the technology, which is replacing coal, oil and gas. I think it’s a worthy battle. Technology is kind of replacing the old order. There was a place for utilities and monopolies when they were first created, but the time has come for a change. Utilities are still working off an old business plan.

Is there anything unique in different regions of the country when it comes to the fight over net metering, or is this largely a uniform issue?

You could almost call it a conspiracy. Utilities got together and said they’re going to gang up on rooftop solar. Their attack is pretty much the same with fees and taxes, changes in regulations. It’s the same fight all across the country.

The group Citizens for Michigan’s Energy Future and legislators in Michigan who back the latest Senate proposal criticize you and others as out-of-state special interest groups without a vested interest in what happens here. What’s your response to that?

Energy is a national issue. It is influenced by the federal government. It is state-regulated in most cases, but it is a national issue. What happens in Arizona impacts what happens in Michigan and vice versa. You may call me an outsider, but I have an interest in what happens in Michigan because it has some influence on what will happen in Arizona. We’re all in this together, we’re not separate.

Proponents of the Michigan net metering proposal say it is about creating fairness among all ratepayers and ending subsidies from one group to another. What’s your response?

That is their classic argument. It doesn’t hold water. I spent a lot of money treating my house [with energy efficiency]. As a result, my electric bill went down. Consequently, those people who don’t do the same are subsidizing my electric bill. They are making the same claim for solar energy. It’s a phony issue and doesn’t hold water.

Do you see a legitimate split within the Republican Party on the issue of net metering and self-generating solar?

I think Republicans have got to come to their senses and realize that they can’t dig their heels in on an issue like the environment. Conservatives, liberals all want a clean earth and a clean environment. They take different approaches — conservatives would like to rely on the free market approach. Liberals want to dictate and influence that direction. I will not take a back seat to anybody for the air I breathe or the earth I live on. That is one of my rationales for rooftop solar.

I want to be a champion of the future, not a detriment.

The other problem you have with Republicans is they tend to be against subsidies, or government picking winners and losers. But there are big subsidies for oil and gas and coal. Republicans tend to be against that just in principle. I do understand that we’ve also used subsidies to encourage social behavior throughout the history of this country, such as giving preference to people who own electric cars.

When I was in Congress in the ‘70s, we created all kinds of incentives to encourage the utilization of renewable energy — subsidies, tax treatment, guaranteed purchases. Most of those have gone away but it did encourage the industry to sprout up. At some point it’s got to stand on its own two feet. It’s coming soon, but it is not now.

Do you envision so-called “green tea” lawmakers joining with Democrats on this issue or with partnering with other Republicans?

I think Republicans ought to take a step back and ask themselves: What’s good for Michigan? What’s good for the taxpayer? The answer to that is that they should adopt policies that reduce rates and increase choice and independence and not continue an obsolete monopoly utility system.

We need to get ahead of the curve, we need to be out in front. That’s what Republicans should be doing. If you look across America and around the world, all the research and development that’s gone into alternative energy is amazing. I want to be a champion of the future, not a detriment. I want to get away from the old and adopt the new. The future is here and Republicans need to get in front and get their feet out of the dirt.

On another point, because of this investment by the government, private sector and universities, these energy sources are maturing to the point where a whole new industry is blossoming across the country. Hundreds of thousands of jobs are being created. Republicans ought to count their blessings and support it.

UC Berkeley study says increasing California RPS will create jobs

Posted by Laura Arnold  /   September 07, 2015  /   Posted in solar  /   No Comments

Renewable energy requirement creates jobs, Berkeley study says

California law requires the state to get 33% of its electricity from renewable sources, such as solar and wind, by 2020. A bill by Sen. Kevin de León (D-Los Angeles) would increase that standard to 50% by 2030.

Because building renewable energy facilities is a temporary gig, the study uses measurements in "job years" to estimate how much work would be created. One "job year" equals enough work to employ somebody full time for a year.

From 2003 to 2014, renewable energy requirements created 52,000 "job years," the study said. Up to 429,000 additional "job years" would be created if lawmakers approved higher standards.

Betony Jones, one of the study's authors and the associate chair of the Don Vial Center on Employment in the Green Economy, said meeting the proposed renewable energy target means the state would "really have to ramp up."

"And if we do that in California, that would create quite a few jobs," she said.

The California Business Roundtable, which opposes the climate legislation, said the study is incomplete.

"It does not look at the rest of the economy -- how much this will cost, what other jobs will be lost as energy costs increase, and what jobs will be lost as consumers pay more for energy and housing and less for other purchases," said Rob Lapsley, the organization's president.
Claire Conlon, a spokeswoman for De León, said the business roundtable represents the "old energy economy" and said the Berkeley study shows the senator's legislation "will lay the groundwork for the workforce of tomorrow."

"Californians know we have to move forward with building a sustainable clean energy economy," Conlon said.

Follow @chrismegerian for more updates from Sacramento.

 

Michigan bipartisan critics call renewable energy bill SB 438 “monopoly control”

Posted by Laura Arnold  /   September 04, 2015  /   Posted in solar  /   No Comments

Rep. Jeff Irwin (D-Ann Arbor)

Click for hi-res photo for press purposes

Rep. Ed. McBroom( R-Vulcan)
 
Click for hi-res photo for press purposes
 
Rep. Gary Glenn (R-Midland)
 

Bipartisan critics call renewable energy bill “monopoly control”

There’s heated debate over the future of renewable energy policy in Michigan – and it’s not just Democrats versus Republicans.

A bipartisan group of lawmakers is criticizing legislation that would put new limits on Michigan’s net metering program. That program allows people with solar panels to sell surplus energy back to the grid.

The group is now offering its own legislation which would expand the net metering program.

“Shouldn’t Michigan residents be able to generate their own energy and feed that back into the grid that we’ve all built?” asked state Rep. Jeff Irwin, D-Ann Arbor, during a conference call with reporters on Thursday.

“We’re missing out on a lot of opportunities here to explore renewables at the small-scale end of the spectrum, instead of just pushing them at the large, industrial, utility-based scale,” said state Rep. Ed. McBroom, R-Vulcan, who is sponsoring a bill in the package which deals specifically with net metering.

Utilities say the net metering program is unfair because they claim it shifts costs to maintain the grid to other customers.

But Irwin, McBroom, and other lawmakers like state Rep. Gary Glenn, R-Midland, say the bill to limit the program – Senate Bill 438 – is designed to benefit the utilities, not ratepayers.

“This is the first package of bills that are going to be in favor of more consumer choice and more consumer freedom and less monopoly control of Michigan’s energy future,” said Glenn.

Lawmakers are discussing proposals on a variety of issues as part of an effort to shape Michigan’s overall energy policies in the coming years.

Community solar investors could qualify for federal tax credits, IRS ruling indicates

Posted by Laura Arnold  /   September 03, 2015  /   Posted in solar  /   No Comments

Community solar investors could qualify for federal tax credits, IRS ruling indicates

By | September 3, 2015

Dive Brief:

  • The Internal Revenue Service has allowed a Vermont man to take a 30% credit on an investment made in a community solar project, the first indication that the credit can be applied when residents buy into larger, shared solar arrays, rather than just rooftop systems.
  • While the decision is specific to Roland Marx, who made a $8,700 investment in the Boardman Hill Solar Farm, advocates say it is an indication of how the IRS mght rule in the future on similar credit requests.
  • The community shared solar sector, designed to give those unable to place panels on their home access to cleaner energy, is booming across the country. But so far, the investment tax credit has not been applied to the programs.

Dive Insight:

The IRS last month issued a "Private Letter Ruling" determining that Marx can take a tax credit reducing his investment by about $2,700. While the decision cannot be used as precedent by other taxpayers, solar advocates hailed the decision as an indication of how the agency will rule on future, similar requests.

"Community-shared solar has led to remarkable growth in residential solar because it allows those without roof space or solar access to participate in the solar market," Rhone Resch, president and CEO of the Solar Energy Industries Association, said in a statement hailing the decision. "This ruling helps pave the way for even more growth under the widely successful federal investment tax credit."

Clean Energy States Alliance, along with attorneys from Boston-based Foley Hoag, helped Marx secure the ruling.

“It makes a big difference, a very big difference,” Marx told the Concord Monitor. He had filed for an extension of his 2014 taxes, but is now prepared to file.

“This letter ruling fills an important gap," Attorney Adam Wade said. "It adds a previously unavailable written resource to the growing body of authority which can be used by courts, IRS personnel, and practitioners in structuring community shared solar projects."

While the letter cannot be cited as precedent, Wade said that in generat letter rulings can be used by the IRS for its own internal interpretations. Several cases have also acknowledged that a private letter ruling can be used as "persuasive authority" or an "instructive tool," he said.

The potential extension of tax credits to community solar arrays could add fuel to a market that's already on fire. Earlier this summer, GTM Research estimated that community shared solar would grow 500% this year, adding about 115 MW, a huge increase on the 21 MW installed in 2014. The firm expects 1,800 MW will be added by 2020, but access to tax credits and growing utility enthusiasm for shared solar could boost that number even more.

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Concord Monitor: Group says IRS ruling could promote community solar projects

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