Of all the types of energy embraced by the green community, “combined heat and power” probably has the clunkiest name. But proponents hope that C.H.P. systems, which can be installed in homes, will one day compete with better-known technologies like solar panels.
The idea is to capture two forms of energy at once, namely heat and electrical power (which is why the technology is sometimes called cogeneration). Large systems exist on college campuses like the University of Warwick in England and also at hospitals, chemical factories and even airports. These systems use the heat left over from generating electricity to produce either hot water, which circulates through pipes to nearby buildings to provide heat, or steam, which can be used for industrial purposes.
Because the process of making electricity wastes a lot of energy, combining heat and power generation leads to greater efficiencies, said Jürgen Weiss, head of the climate practice at the Brattle Group, a consulting firm based in Cambridge, Massachusetts.
“The idea of C.H.P. is to make electricity and not waste the heat that gets generated in the process, but rather to use it for something useful,” Mr. Weiss said. That means lower utility bills and fewer greenhouse gas emissions.
In recent years, engineers have started designing more residential-scale systems. These may be about the size of a refrigerator and can fit into a basement. In Britain, a system run by a Stirling engine may cost more than 6,000, or $9,500, including installation, and in Germany — where heating systems are generally more expensive — a C.H.P. system may run from 15,000 to 20,000, or $19,800 to $26,400, according to Delta Energy & Environment, a research company based in Edinburgh. Delta said it would often take homeowners 10 years to make back the cost, in the form of lower utility bills. Getting prices down will be critical, experts say.
The small systems work best in cold climates, where homes need plenty of heat. They are often fueled by natural gas and make a bit of noise, but the extra electricity they produce can be sold into the power grid. Big-name automakers like Honda Motor and Volkswagen have applied their technology to help develop small-scale systems, sometimes known as micro C.H.P.
Small systems are gaining traction in Japan after the nuclear disaster last year, which led officials to order that nearly all of the country’s reactors be taken offline. Orders have “increased dramatically” since that event and are likely to rise even more sharply in the future, according to a recent report by Pike Research, a research and consulting group in Boulder, Colorado. Honda has sold micro-C.H.P. systems in Japan since 2003 and said last year that about 108,000 households were using its units, called the Ecowill.
The home systems in Japan tend to be much smaller than those in Germany or the United States, according to Kerry-Ann Adamson, a research director for smart energy who is based in London for Pike.
Elsewhere in the world, the picture is mixed. In the United States, a basic obstacle is lack of knowledge, said Daniel Bullock, director of the Gulf Coast Clean Energy Application Center, a U.S. Department of Energy group based in a Houston suburb that promotes C.H.P. and related sources of energy.
“Most people don’t even know about C.H.P.,” Mr. Bullock said. As a result, he added, “People are willing to pay a lot more money for solar panels than what a C.H.P. system would cost.”
The low price of natural gas in the United States — a result of the plentiful supplies created by the hydraulic fracturing boom — may make the systems more appealing, Mr. Bullock said, though homeowners, lacking the negotiating power of large industrial users, may not reap the full benefit of the lower gas prices.
In Europe, Delta Energy & Environment forecasts that 40,000 to 70,000 units a year will be sold by 2015, but “an outcome with substantially lower sales is possible,” said Jon Slowe, a director for the company, adding that Britain and Germany are using incentives to push the hardest for micro-C.H.P. technology.
Germany has a target of getting 25 percent of its power from C.H.P. systems of all sizes by 2020. A draft proposal now under consideration would increase incentives for the systems, although Ulrich Fikar, a spokesman for the industry group Cogen Europe, said it was “not ambitious enough for micro-C.H.P.”
2012年4月4日星期三
2012年3月31日星期六
A Bright Future for Solar Panels
The future of solar panels is looking even brighter. New research by Cambridge University scientists has led to the development of a more efficient solar cell.
Currently, solar cells capture part of the sun's light. Much of the energy of the absorbed light is lost as heat, meaning a maximum of 34% of the sunlight is converted to electrical power. However, Cambridge scientists have made a breakthrough which could allow 44% of solar energy to be converted. More work needs to be done to realise the full benefits of the scientists' findings, but even using today's solar PV panels is providing huge savings for businesses and householders.
Boston Council in Lincolnshire recently installed solar panels on the roof of a leisure complex at a cost of GBP 105,167. The investment is expected to recover its costs within nine years and generate a profit of at least GBP 260,000 over the next 25 years. Boston Borough Council leader Peter Bedford said the energy-saving income generated may also be higher than anticipated - closer to 80 or 90 per cent rather than the 50 per cent allowed for, so the energy saving may be more.
He said: "Our investment in solar PV represents a good deal for the council, providing low-carbon clean energy and also making the facility less vulnerable to future energy price increases at a time of global insecurity."
Homeowners can make comparable savings by installing solar panels. Energy suppliers such as British Gas pay for any excess electricity generated as it's fed back to the National Grid. You can even earn money for every kilowatt hour of electricity you generate through the Government's Feed-in Tariff (also known as Clean Energy Cashback), even if you use it.
An average system is 3 kWp and will cost around GBP 10,000 (including VAT at 5%). Most domestic PV systems cost around GBP 3,000 to GBP 3,500 per kWp installed. A 3 kWp system can generate over 2,500 kilowatt hours of electricity a year. If your system is eligible for the Feed-In Tariff scheme it could generate savings and income of around GBP 670 per year.
Solar energy is going to become more efficient and even cheaper to install. According to Jenny Chase, an analyst at Bloomberg New Energy Finance, solar power is now cheaper than diesel 'anywhere as sunny as Spain'.(i) The economy of scale through increased global use will soon mean cheaper solar panels and electricity for everyone.
Currently, solar cells capture part of the sun's light. Much of the energy of the absorbed light is lost as heat, meaning a maximum of 34% of the sunlight is converted to electrical power. However, Cambridge scientists have made a breakthrough which could allow 44% of solar energy to be converted. More work needs to be done to realise the full benefits of the scientists' findings, but even using today's solar PV panels is providing huge savings for businesses and householders.
Boston Council in Lincolnshire recently installed solar panels on the roof of a leisure complex at a cost of GBP 105,167. The investment is expected to recover its costs within nine years and generate a profit of at least GBP 260,000 over the next 25 years. Boston Borough Council leader Peter Bedford said the energy-saving income generated may also be higher than anticipated - closer to 80 or 90 per cent rather than the 50 per cent allowed for, so the energy saving may be more.
He said: "Our investment in solar PV represents a good deal for the council, providing low-carbon clean energy and also making the facility less vulnerable to future energy price increases at a time of global insecurity."
Homeowners can make comparable savings by installing solar panels. Energy suppliers such as British Gas pay for any excess electricity generated as it's fed back to the National Grid. You can even earn money for every kilowatt hour of electricity you generate through the Government's Feed-in Tariff (also known as Clean Energy Cashback), even if you use it.
An average system is 3 kWp and will cost around GBP 10,000 (including VAT at 5%). Most domestic PV systems cost around GBP 3,000 to GBP 3,500 per kWp installed. A 3 kWp system can generate over 2,500 kilowatt hours of electricity a year. If your system is eligible for the Feed-In Tariff scheme it could generate savings and income of around GBP 670 per year.
Solar energy is going to become more efficient and even cheaper to install. According to Jenny Chase, an analyst at Bloomberg New Energy Finance, solar power is now cheaper than diesel 'anywhere as sunny as Spain'.(i) The economy of scale through increased global use will soon mean cheaper solar panels and electricity for everyone.
2012年3月30日星期五
Solar Energy Ideal Option for Many Jamaicans
With the increase in oil prices and ultimately electricity bills, for many Jamaicans, solar energy can prove to be an ideal source of power for homes and businesses.
To this end, the Government has been encouraging Jamaicans to use renewable energy, such as solar energy, as a means of reducing electricity cost.
Senior Energy Engineer in the Ministry of Science, Technology, Energy and Mining (STEM), Gerald Lindo, tells JIS News that there are two ways in which to install a solar system in homes or businesses and still reap the benefits.
“You can put the solar panels on your roof, have them connected to some batteries that feed into your local needs at your house or your small business, or you can have a grid-type system to (show) that you are connected to your solar panel and you are connected to the electricity grid as well,” Mr. Lindo explains.
He explains that when the solar panels are active and the sun is shining, energy or electricity is being produced from the solar panels.
“When there is cloud cover or it’s night, you switch back in a dynamic way to the grid, so you are drawing either from the panels or from the grid. That way the grid acts as your back up. The grid style system is a lot cheaper for people to implement generally, because batteries are very expensive and they tend to wear out over time. It is usually more economical, even though you are never truly independent of the Jamaica Public Service (JPS),” Mr. Lindo states.
The Senior Engineer points out that since the user will be tied to the grid, the consumer will be feeding electricity back into the grid and hence a licence will be needed by the consumer.
“We want people to use this. We did develop a standard offer contract in September of 2011 that was headed up by the Office of Utilities Regulations (OUR), which sets out the regulatory terms by which a person can generate solar energy and really any renewable energy source, but solar is the one we think people will desire the most,” Mr. Lindo tells JIS News.
“It allows for people who are generating electricity through renewable means to connect to the grid. Not only can they use the grid as a back-up, but in times when they are generating more electricity than they need, they can sell power to JPS and get some remuneration, and that again will help to defray the cost of putting the system on their roof,” he adds.
Mr. Lindo notes that the Bureau of Standards Jamaica is currently working on standards for the interconnections.
In the meantime, he says there are a number of ways in which persons can acquire solar energy equipment without having to bear all the cost at once.
“One of them is a loan through the National Housing Trust (NHT). The NHT has offered solar loans since 2006 for solar water heaters and in 2008 for photovoltaic panels. We applaud the NHT for what they are doing (but) we think there are ways they can adjust the loan to further optimise it and make it available for people, because the uptake of the loan has perhaps not been as aggressive as one would hope, but we’re working on it to make the loan even more attractive,” Mr. Lindo says.
He points out that the NHT has the lowest rates and the best terms in the marketplace and “we want more people accessing that, so that they can put some solar panels on their roof."
“We have been engaging the NHT since late last year regarding that, and we continue to do so,” Mr. Lindo says.
The NHT provides financing to contributors for installation and retrofitting of solar heating systems. The loan is available to contributors who can provide a title for a residential property or who has at least enough funds in their Contribution Account at the NHT equal to the cost of the system, plus $20,000. The loan can be obtained at an interest rate of 3 per cent over a maximum period of 5 years with a 5 per cent service charge.
The Development Bank of Jamaica (DBJ) also has loans available which can assist in buying solar energy equipment. The funds that are available through the DBJ are provided by the World Bank.
“One of the flagship projects we have at the Ministry is the Energy Security and Efficiency Enhancement Project. It’s US$15 million and is devoted to improving the regulatory conditions for energy in the country and a good deal of that money was set aside for the DBJ to lend to businesses to do their energy projects,” Mr. Lindo says.
President of the Jamaica Solar Energy Association, Roger Chang, says with these institutions available to provide financing, more Jamaicans can invest in solar energy equipment for their commercial and residential use.
To this end, the Government has been encouraging Jamaicans to use renewable energy, such as solar energy, as a means of reducing electricity cost.
Senior Energy Engineer in the Ministry of Science, Technology, Energy and Mining (STEM), Gerald Lindo, tells JIS News that there are two ways in which to install a solar system in homes or businesses and still reap the benefits.
“You can put the solar panels on your roof, have them connected to some batteries that feed into your local needs at your house or your small business, or you can have a grid-type system to (show) that you are connected to your solar panel and you are connected to the electricity grid as well,” Mr. Lindo explains.
He explains that when the solar panels are active and the sun is shining, energy or electricity is being produced from the solar panels.
“When there is cloud cover or it’s night, you switch back in a dynamic way to the grid, so you are drawing either from the panels or from the grid. That way the grid acts as your back up. The grid style system is a lot cheaper for people to implement generally, because batteries are very expensive and they tend to wear out over time. It is usually more economical, even though you are never truly independent of the Jamaica Public Service (JPS),” Mr. Lindo states.
The Senior Engineer points out that since the user will be tied to the grid, the consumer will be feeding electricity back into the grid and hence a licence will be needed by the consumer.
“We want people to use this. We did develop a standard offer contract in September of 2011 that was headed up by the Office of Utilities Regulations (OUR), which sets out the regulatory terms by which a person can generate solar energy and really any renewable energy source, but solar is the one we think people will desire the most,” Mr. Lindo tells JIS News.
“It allows for people who are generating electricity through renewable means to connect to the grid. Not only can they use the grid as a back-up, but in times when they are generating more electricity than they need, they can sell power to JPS and get some remuneration, and that again will help to defray the cost of putting the system on their roof,” he adds.
Mr. Lindo notes that the Bureau of Standards Jamaica is currently working on standards for the interconnections.
In the meantime, he says there are a number of ways in which persons can acquire solar energy equipment without having to bear all the cost at once.
“One of them is a loan through the National Housing Trust (NHT). The NHT has offered solar loans since 2006 for solar water heaters and in 2008 for photovoltaic panels. We applaud the NHT for what they are doing (but) we think there are ways they can adjust the loan to further optimise it and make it available for people, because the uptake of the loan has perhaps not been as aggressive as one would hope, but we’re working on it to make the loan even more attractive,” Mr. Lindo says.
He points out that the NHT has the lowest rates and the best terms in the marketplace and “we want more people accessing that, so that they can put some solar panels on their roof."
“We have been engaging the NHT since late last year regarding that, and we continue to do so,” Mr. Lindo says.
The NHT provides financing to contributors for installation and retrofitting of solar heating systems. The loan is available to contributors who can provide a title for a residential property or who has at least enough funds in their Contribution Account at the NHT equal to the cost of the system, plus $20,000. The loan can be obtained at an interest rate of 3 per cent over a maximum period of 5 years with a 5 per cent service charge.
The Development Bank of Jamaica (DBJ) also has loans available which can assist in buying solar energy equipment. The funds that are available through the DBJ are provided by the World Bank.
“One of the flagship projects we have at the Ministry is the Energy Security and Efficiency Enhancement Project. It’s US$15 million and is devoted to improving the regulatory conditions for energy in the country and a good deal of that money was set aside for the DBJ to lend to businesses to do their energy projects,” Mr. Lindo says.
President of the Jamaica Solar Energy Association, Roger Chang, says with these institutions available to provide financing, more Jamaicans can invest in solar energy equipment for their commercial and residential use.
2012年3月29日星期四
Nalgonda village pioneers solar power revolution
At a time when the entire state has plunged into darkness due to unscheduled and prolonged power cuts, Nalgonda is gearing up to become a shining example of a power cut-free district. As a first step to achieve the distinction, Pagidipalli village in Bibinagar mandal in the district has successfully put behind power cut woes by installing solar panels.
Funded by the Bureau of Energy Efficiency (BEE), the pilot solar scheme was launched in Pagidipalli a year ago. As part of the initiative, 63 solar stand-alone streetlights and 360 8-watt light emitting diode (LED) bulbs have been installed in the village at a cost of Rs15 lakh.
Pagidipalli has 230 households with a population of 1,500, majority of whom are either farmers or those who work in the surrounding factories.
This automatic system can provide light for 12 hours in the night. BEE distributed LED lamps to the households at 50% subsidy. "We don't have much problem in using them. If we face any problem with solar panels, Nedcap which has supported the initiative helps us," Ch Chandrasekhar, a villager, told TOI. He says that there is 70% decrease in their electricity bill after they started relying on solar power and LED lamps.The village panchayat played an active role in convincing the people to use solar bulbs when there was some resistance to the proposal. "Not just villagers but the village panchayat has also benefited from this. We are saving Rs 1 lakh per year ever since we switched over to this programme," V Venkatesh, former sarpanch, told TOI. Buoyed by the success, officials are planning to implement a similar project in Miryalaguda at a cost of Rs 5 crore.
The municipality is willing to allocate Rs 2.5 crore. Officials are mulling offering subsidy for those who are willing to take solar power connections. "We will hold discussions with the stakeholders including the residents of the town before implementing the project," Neelakantham, in-charge joint collector, said.
Funded by the Bureau of Energy Efficiency (BEE), the pilot solar scheme was launched in Pagidipalli a year ago. As part of the initiative, 63 solar stand-alone streetlights and 360 8-watt light emitting diode (LED) bulbs have been installed in the village at a cost of Rs15 lakh.
Pagidipalli has 230 households with a population of 1,500, majority of whom are either farmers or those who work in the surrounding factories.
This automatic system can provide light for 12 hours in the night. BEE distributed LED lamps to the households at 50% subsidy. "We don't have much problem in using them. If we face any problem with solar panels, Nedcap which has supported the initiative helps us," Ch Chandrasekhar, a villager, told TOI. He says that there is 70% decrease in their electricity bill after they started relying on solar power and LED lamps.The village panchayat played an active role in convincing the people to use solar bulbs when there was some resistance to the proposal. "Not just villagers but the village panchayat has also benefited from this. We are saving Rs 1 lakh per year ever since we switched over to this programme," V Venkatesh, former sarpanch, told TOI. Buoyed by the success, officials are planning to implement a similar project in Miryalaguda at a cost of Rs 5 crore.
The municipality is willing to allocate Rs 2.5 crore. Officials are mulling offering subsidy for those who are willing to take solar power connections. "We will hold discussions with the stakeholders including the residents of the town before implementing the project," Neelakantham, in-charge joint collector, said.
2012年3月28日星期三
Solar panels will keep lights twirling
Ames-based PowerFilm has a new partnership with a company that makes lighting bars and other gear for emergency vehicles.
The agreement will allow Streamlight Inc. to add PowerFilm’s 14-watt flexible solar panels as an option for emergency responders and others looking for an auxiliary source of power for the lights, computers, radios and other electrical components that are now built into vehicles.
The Streamlight deal is the second vehicle partnership announced by PowerFilm. In January, the company said it would join with Textron Co. to make solar power an option for E-Z-GO golf cars and other electric vehicles.
In a statement announcing the Streamlight venture, PowerFilm President Tim Neugent said the company’s new solar panels provide enough supplemental power to the battery of an emergency vehicle “to ensure that the vehicle will start when needed and reduce the need to idle the vehicle, saving fuel and reducing emissions.”
Streamlight President Ray Sharrah said in an email that most solar panel makers “are targeting large commercial or residential installations using thousands of square feet of panel. PowerFilm’s focus on smaller products met our needs for vehicular mobile applications and their design proved itself in a year of field trials.” He said the Iowa company’s “solar technology is unequaled and provides us with amazing versatility.”
Streamlight will begin shipping PowerFilm products next month, Sharrah said.
The potential market is substantial, he said: “In the U.S. alone there are 18,000 law enforcement agencies. There are 25,000 vehicles in service in just state police and highway patrols. American auto manufacturers sell more than 50,000 new police cars a year. When we add this to industrial and utility vehicles and look internationally, it presents a considerable market need.”
The agreement will allow Streamlight Inc. to add PowerFilm’s 14-watt flexible solar panels as an option for emergency responders and others looking for an auxiliary source of power for the lights, computers, radios and other electrical components that are now built into vehicles.
The Streamlight deal is the second vehicle partnership announced by PowerFilm. In January, the company said it would join with Textron Co. to make solar power an option for E-Z-GO golf cars and other electric vehicles.
In a statement announcing the Streamlight venture, PowerFilm President Tim Neugent said the company’s new solar panels provide enough supplemental power to the battery of an emergency vehicle “to ensure that the vehicle will start when needed and reduce the need to idle the vehicle, saving fuel and reducing emissions.”
Streamlight President Ray Sharrah said in an email that most solar panel makers “are targeting large commercial or residential installations using thousands of square feet of panel. PowerFilm’s focus on smaller products met our needs for vehicular mobile applications and their design proved itself in a year of field trials.” He said the Iowa company’s “solar technology is unequaled and provides us with amazing versatility.”
Streamlight will begin shipping PowerFilm products next month, Sharrah said.
The potential market is substantial, he said: “In the U.S. alone there are 18,000 law enforcement agencies. There are 25,000 vehicles in service in just state police and highway patrols. American auto manufacturers sell more than 50,000 new police cars a year. When we add this to industrial and utility vehicles and look internationally, it presents a considerable market need.”
2012年3月27日星期二
Boonville hotel embracing solar panels
As the weather warms up, the Boonville area is getting a little greener. Flowers are blooming, trees are budding and it’s time to mow the grass again.
The Hotel Frederick, 501 High St., in Boonville, Mo., is getting a bit greener, too.
The downtown Boonville hotel has begun installation of solar panels designed to put less pressure on the environment and to take advantage of the bright Missouri sun.
Hotel Frederick owner Bill Haw, Jr. is also assisting in the development of the Telegram Building, a historic property located in Kansas City’s Stockyards District.
“This is our second project,” said Haw of the solar panel project at Hotel Frederick. “Our first project was in Kansas City, at the Telegram Building.”
The progress that has been made with the solar panels there inspired Haw to install them in Boonville, he said.
“Now’s a great time to do something that was good for the environment and worked for us financially,” said Haw.
The installers of the panels, Brightergy Energy Solutions, has been imperative in the process, he said.
“We had a fantastic experience on the first (installation),” said Haw. “Everything went very smooth.”
Brightergy, which is headquartered in Kansas City with offices in St. Louis and Boston, has been brightening up buildings all over, from the city of Florrissant, Mo. to Rockhurst High School in Kansas City.
But then there’s the other important “green” — the kind you find in your wallet. The project needed to be financially sound before installing the solar panels, said Haw.
According to Haw, in 2011, there was funding available from both federal sources and locally from Ameren, and dipping into those coffers made the plan work out for the hotel.
Local law firm Conway and Blanck took advantage of these credits when they installed solar panels atop their office in August 2011 at their 213 Main St. location, near the hotel. Previous Boonville Daily News reports notes a $150 per month savings from the panels.
The solar power generated on the roof of the Hotel Frederick will feed directly into the building’s power, said Haw, rather than being stored in a battery. That means if the hotel is using a lot of power on a sunny day, electrical costs will be lower.
Better yet, said Haw, “when you’re not consuming (power), it runs the meter backwards,” which pumps electricity back into the grid. That electricity can earn the customer full retail credit for this electricity on their bill, according to the Missouri Easy Connection Act, passed in 2007.
With those savings, the system should pay for itself in about five years, he said.
Haw said the project has generated a fantastic amount of praise on Facebook, and may be a draw for the hotel, citing its green amenities. In years past, the hotel has moved towards an environmentally friendly experience, including aluminum recycling, bulk soaps and water conservation.
“This is part of something bigger that’s going on,” said Haw. “We’re excited too.”
The Hotel Frederick, 501 High St., in Boonville, Mo., is getting a bit greener, too.
The downtown Boonville hotel has begun installation of solar panels designed to put less pressure on the environment and to take advantage of the bright Missouri sun.
Hotel Frederick owner Bill Haw, Jr. is also assisting in the development of the Telegram Building, a historic property located in Kansas City’s Stockyards District.
“This is our second project,” said Haw of the solar panel project at Hotel Frederick. “Our first project was in Kansas City, at the Telegram Building.”
The progress that has been made with the solar panels there inspired Haw to install them in Boonville, he said.
“Now’s a great time to do something that was good for the environment and worked for us financially,” said Haw.
The installers of the panels, Brightergy Energy Solutions, has been imperative in the process, he said.
“We had a fantastic experience on the first (installation),” said Haw. “Everything went very smooth.”
Brightergy, which is headquartered in Kansas City with offices in St. Louis and Boston, has been brightening up buildings all over, from the city of Florrissant, Mo. to Rockhurst High School in Kansas City.
But then there’s the other important “green” — the kind you find in your wallet. The project needed to be financially sound before installing the solar panels, said Haw.
According to Haw, in 2011, there was funding available from both federal sources and locally from Ameren, and dipping into those coffers made the plan work out for the hotel.
Local law firm Conway and Blanck took advantage of these credits when they installed solar panels atop their office in August 2011 at their 213 Main St. location, near the hotel. Previous Boonville Daily News reports notes a $150 per month savings from the panels.
The solar power generated on the roof of the Hotel Frederick will feed directly into the building’s power, said Haw, rather than being stored in a battery. That means if the hotel is using a lot of power on a sunny day, electrical costs will be lower.
Better yet, said Haw, “when you’re not consuming (power), it runs the meter backwards,” which pumps electricity back into the grid. That electricity can earn the customer full retail credit for this electricity on their bill, according to the Missouri Easy Connection Act, passed in 2007.
With those savings, the system should pay for itself in about five years, he said.
Haw said the project has generated a fantastic amount of praise on Facebook, and may be a draw for the hotel, citing its green amenities. In years past, the hotel has moved towards an environmentally friendly experience, including aluminum recycling, bulk soaps and water conservation.
“This is part of something bigger that’s going on,” said Haw. “We’re excited too.”
2012年3月26日星期一
Think solar power can't compete with big utilities? Think again
Most Americans think clean energy is futuristic — a good idea some day, but not practical now. But a new report from the Institute for Local Self Reliance suggests that within 10 years, 100 million Americans in the nation's largest cities could get cheaper electricity from rooftop solar — without subsidies — than that provided by their utility.
For example, one-quarter of San Diego residents could power their homes with cost-effective solar by next year. Even in Boston, solar could cost-effectively power one-third of homes by 2020.
The current electricity system is ill-equipped for this surge in local rooftop solar — or even for the 21st century. It's a relic of the last century, when utilities located dirty coal-powered plants far from population centers, connecting them via high-voltage transmission lines to customers hundreds or thousands of miles away.
An electricity system powered by local solar is fundamentally different. Wherever the sun shines, solar panels are right at the customer's location, on a rural farm or an urban rooftop. And because solar power is modular, it lends itself to construction at a local scale.
Solar also lends itself to local ownership instead of utility conglomerates. The National Renewable Energy Laboratory reports that locally owned renewable energy projects — like rooftop solar — can offer twice the jobs and more than three times the local economic impact of absentee-owned projects, because revenue from local projects stays in the local economy. Having an economic stake in energy ownership also gives citizens a sense of political ownership. Researchers in Germany found a 45 percentage-point increase in support for more local wind power when wind turbines were locally owned instead of absentee-owned.
The rooftop revolution doesn't need more subsidies, but it does need new rules.
Subsidies for solar must change before exponential growth creates exponential resistance to rising costs. This requires us to move away from fixed, one-size-fits-all incentives like the federal solar tax credit toward more flexible and transparent incentives that can phase out as solar becomes competitive in different regions.
The solar tax credit should also be replaced because it is inefficient. Indeed, as much as half of taxpayers' money goes not to solar power plants, but to the middle men who funnel it to large corporations and wealthy households.
The tax credit's inefficiency also undermines solar's greatest asset: local ownership of energy generation. Local ownership of solar could be best achieved through community institutions — cooperatives, schools or cities — but federal tax incentives are for taxable entities, not these organizations. Instead, community institutions must rely on complex partnerships with large corporations to use tax credits, with as much as half the credit used to reduce the tax liability of the private partner instead of the cost of local solar.
Policy makers could replace the inequities and inefficiencies of the tax credit with a feed-in tariff: an energy policy that allows anyone to get a long-term contract for generating electricity from solar, at a price sufficient to earn a modest return on investment (without using the tax code). Used by leading solar nations like Germany, the feed-in tariff can adjust to solar market conditions, as well as offering different contract prices in less sunny regions or places with lower grid electricity prices.
The new rules for the electricity system are needed now, because otherwise billions of dollars will be spent on the last century's power plants and power lines just as a local solar revolution supplants them.
For example, one-quarter of San Diego residents could power their homes with cost-effective solar by next year. Even in Boston, solar could cost-effectively power one-third of homes by 2020.
The current electricity system is ill-equipped for this surge in local rooftop solar — or even for the 21st century. It's a relic of the last century, when utilities located dirty coal-powered plants far from population centers, connecting them via high-voltage transmission lines to customers hundreds or thousands of miles away.
An electricity system powered by local solar is fundamentally different. Wherever the sun shines, solar panels are right at the customer's location, on a rural farm or an urban rooftop. And because solar power is modular, it lends itself to construction at a local scale.
Solar also lends itself to local ownership instead of utility conglomerates. The National Renewable Energy Laboratory reports that locally owned renewable energy projects — like rooftop solar — can offer twice the jobs and more than three times the local economic impact of absentee-owned projects, because revenue from local projects stays in the local economy. Having an economic stake in energy ownership also gives citizens a sense of political ownership. Researchers in Germany found a 45 percentage-point increase in support for more local wind power when wind turbines were locally owned instead of absentee-owned.
The rooftop revolution doesn't need more subsidies, but it does need new rules.
Subsidies for solar must change before exponential growth creates exponential resistance to rising costs. This requires us to move away from fixed, one-size-fits-all incentives like the federal solar tax credit toward more flexible and transparent incentives that can phase out as solar becomes competitive in different regions.
The solar tax credit should also be replaced because it is inefficient. Indeed, as much as half of taxpayers' money goes not to solar power plants, but to the middle men who funnel it to large corporations and wealthy households.
The tax credit's inefficiency also undermines solar's greatest asset: local ownership of energy generation. Local ownership of solar could be best achieved through community institutions — cooperatives, schools or cities — but federal tax incentives are for taxable entities, not these organizations. Instead, community institutions must rely on complex partnerships with large corporations to use tax credits, with as much as half the credit used to reduce the tax liability of the private partner instead of the cost of local solar.
Policy makers could replace the inequities and inefficiencies of the tax credit with a feed-in tariff: an energy policy that allows anyone to get a long-term contract for generating electricity from solar, at a price sufficient to earn a modest return on investment (without using the tax code). Used by leading solar nations like Germany, the feed-in tariff can adjust to solar market conditions, as well as offering different contract prices in less sunny regions or places with lower grid electricity prices.
The new rules for the electricity system are needed now, because otherwise billions of dollars will be spent on the last century's power plants and power lines just as a local solar revolution supplants them.
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