Support U.S. Businesses Making Green Investments

Source: AJC



If there’s one thing Americans agree on in these divided times, it’s the urgent need to move toward cleaner energy. Polls as recently as November show a majority of Americans favoring comprehensive energy reform that limits pollution, develops domestic sources and stimulates renewable power.

We’re not likely to get comprehensive reform in the year ahead, but I still see strong paths toward a cleaner, more sustainable economy.

That’s because smart entrepreneurs are taking the lead. They see the “green” in green and don’t want to miss out on the next big industrial revolution transforming the global economy.

Corporate clean tech innovations were, in fact, the buzz at the recent international climate treaty talks in Cancun, Mexico. At a side meeting for business leaders, Dow Chemical CEO Andrew Liveris announced that his company is reaping $50 billion in annual revenues from the sale of its clean tech products. Solar shingles, coatings for energy-saving “cool” roofs, and sugarcane-based plastic, which emits far fewer greenhouse gases than petroleum-based plastic, are just some of Dow’s budding green technologies.

Green infrastructure giant Siemens’ portfolio likewise topped $37 billion in 2010. Nearly half of its 8,000-plus inventions last year involved technologies that improve energy efficiency and sustainability: innovations such as coatings for power plant turbine blades, ultra-efficient lighting systems, and electric car charging technologies.

Perhaps most impressive was Coca-Cola’s announcement that it has removed the potent global warming pollutant HFC from 200,000 of its refrigeration units, and that it hopes to make its entire supply chain of 10 million refrigeration units completely HFC-free by 2015.

Even better, Coca-Cola, Greenpeace and other stakeholders convinced a consortium of 400 global consumer goods manufacturers to join their effort, and the group has now pledged a “gigaton-scale commitment” to phase out HFC refrigerants by 2015. Getting their peers on board means that scaling up this new technology will happen more quickly and cheaply. A win-win for everyone.

Beyond corporate initiatives, emerging economies also give me hope for green progress in 2011. These rising tigers — some with the fastest-growing greenhouse gas emissions in the world — are taking concrete steps to reduce their contribution to global climate change.

India began levying a carbon tax on coal producers in July, just one month before the U.S. Senate abandoned its efforts to pass a comprehensive climate bill. India will use those revenues to finance clean energy development.

Brazil passed a national law requiring 32 emissions-reducing activities and adopted a voluntary goal of reducing its emissions by more than one-third by 2020.

And China is globally dominating the wind and solar power industries. Though it still relies heavily on coal, China has pledged to reduce its carbon dioxide emissions per unit of GDP by 40 to 45 percent by 2020.

While these actions foster hope, they also leave me wondering why the United States is still stuck on fossil fuels and continues to cede the green industrial revolution — and the jobs that come with it — to other nations. China already boasts more than a million renewable energy jobs, five times the U.S. total.

Without strong national policies to incentivize clean technologies, voluntary business initiatives can only go so far. As Dow’s Liveris put it, “We have the technologies for a global clean economy, but they will not deploy in significant numbers without greater public policy certainty and incentives.”

The United States instead continues to seek short-term fixes from dirtier and dirtier sources of energy.

Take the proposed 1,900-mile, $12 billion Keystone oil pipeline designed to bring up to 1.5 million barrels a day of crude from Canada’s oil sands to U.S. refineries as far south as the Gulf Coast.

While the prospect of buying oil from Canadians, rather than unstable regimes, may sound appealing, there’s a catch. Extracting crude from sticky oil sands emits far more greenhouse gases per barrel than conventional oil, and it is causing widespread environmental and health problems across vast stretches of Alberta, as outlined in a new report by the Royal Canadian Society.

Why seek out dirtier sources of oil when we could be innovating electric cars and clean fuels for jets and improving vehicle efficiency standards — all of which will help us regain our competitive footing in the global economy and put Americans back to work?

And here’s the real kicker: Many of these clean technologies already exist. We just need the right policies and priorities to scale them up.

Last month’s vote in Congress to extend renewable energy tax credits — which will create 20,000 new jobs next year in the wind industry alone — is a good example of what I mean. And there are other smart policies we can adopt in the coming months, whether to expand energy efficiency or strengthen truck mileage standards, which will move the U.S. toward a cleaner energy future.

Now that would really fuel my optimism.

Alternative Energy World Applauds Tax Breaks

From: AJC

Earlier this month, as Congress argued over tax cuts, Georgia’s energy industry quietly kept its fingers crossed.

Energy-related tax benefits were also in the tax deal that Congress eventually approved, said Stephen Smith, director of the Southern Alliance for Clean Energy.

“They got slipped into the grand tax deal,” he said. “Right below the surface were 10 or 15 really good tax programs for energy.”

The list included extended tax credits for buyers of energy efficient homes, and the revival of a Bush-era tax credit for makers of bio-fuel, which had expired at the end of last year.

More traditional energy players also got breaks. The tax deal extended tax credits for coal-to-liquid facilities and for corn ethanol.

The most surprising renewable energy measure was the extension of a temporary economic stimulus program that had replaced renewable energy tax credits with cash. The industry had been so sure that program was going to expire as planned that companies were scrambling to get projects started before New Year's Day.

The cash program was intended to fill a financing hole left by the recession. Historically, renewable energy companies had been able to leverage their federal tax credits to get financing by hooking up with highly profitable companies that have big tax liabilities.

“They would go into partnerships with companies like Goldman Sachs and trade off the tax benefit,” Smith said.

Then the recession hit.

“Everybody got hammered,” Smith said. “A lot of companies no longer had tax liabilities they needed to offset.”

The 2009 stimulus package addressed that by allowing renewable energy companies to get cash instead of the tax credits they couldn't trade anymore. The benefit was simplicity. The alternative energy companies no longer had to seek out investment bank partners.

Grant money helped them attract private investment, said Lee Peterson, a manager with the Reznick Group accounting firm, who works with renewable energy firms.

"It affects investors' ability to get comfortable with the investment," Peterson said.

Like most in the industry, Peterson expected the program to revert to a tax-credit system in 2011, now that profits and the need to offset tax liabilities have returned to big banks.

“It was a stimulus program,” he said. “Theoretically, it had no further reason to exist, not that the wind and solar folks see it that way.”

Energy Roofing Systems of Cumming, GA Brings First Commercial Solar Project To North Georgia

CUMMING, GA (December 21, 2010) – Energy Roofing Systems announced today that they will be developing a 20kW solar installation for an automotive warehouse located in Dawsonville, GA. The solar panel array will not only save JRF Energy, LLC money on electric bills and reduce their carbon footprint, but also will produce extra power and serve as an added source of revenue for the business. Local utility providers Georgia Power, Sawnee EMC, and Amicalola EMC all confirmed that this is the first commercial solar project in Dawsonville. The 20kW project will make the most of Georgia’s optimally tilted surface, which receives more sunlight on average than the entire state of California. The project will generate approximately 32,494 kWh in its first year, which is equivalent to offsetting 38,023 lbs. of CO², planting 663 trees, or offsetting 888 gallons of gasoline.

Energy Roofing Systems specializes in applying advanced alternative energy systems with the highest quality cool metal roof technology and installing them in the most cost effective manner. Designed to reduce utility bills, their cool metal roofing serves as the perfect foundation for solar. Unlike traditional shingle roofing which needs to be replaced periodically over time, cool metal roofing is designed for long term durability and will outlast solar technology. This translates to extra money saved. One recent study indicated that it can cost as much as 25% of the original cost to de-install and then reinstall solar panels when replacing a shingle roof. Energy Roofing Systems was founded by a former custom homebuilder with over 30 years of experience in the metro Atlanta area and an alternative energy entrepreneur from New England. They are taking a forward thinking and sustainable approach, encouraging both commercial and residential customers to “Rethink Your Roof.”

Alpharetta, GA based Solar Energy USA was chosen to install this particular project due to their friendly and knowledgeable staff as well as their proximity to the North Georgia area. Their installation team, a staff of technical experts, is lead by one of the most respected names in the photovoltaic industry with 10 crew members being NABCEP (North American Board of Certified Energy Practitioners) certified. The company has established itself as a premier provider of “Affordable Solar Solutions” for anyone interested in promoting renewable energy.

Energy Roofing Systems educated JRF Energy, LLC about federal, state, and local tax incentives that helped make this project possible. The Federal Clean Energy Grant is covering 30% of the total system cost while the Georgia Clean Energy Tax Credit picks up another 35%. Additionally, local utility provider Sawnee EMC is providing a $3,000 dollar incentive and a guarantee to purchase any excess energy this system generates.

Over it’s expected 35-year life the 20kW system will generate approximately 1015 RECs (Renewable Energy Certificates) equivalent to offsetting 868 tons of CO², planting 20,712 trees, or offsetting 27,740 gallons of gasoline. JRF Energy, LLC will see utility savings on average of $614 dollars every month.

The Federal Clean Energy Grant (also known as the 1603 Treasury Grant Program) was extended last week as part of the tax legislation passed by the U.S. Congress. As a result, Energy Roofing Systems has plans to help many local businesses qualify for the grant in 2011 by adopting solar PV and solar hot water systems.

Interior Dept OKs Nevada Solar Project

Source: AJC

A solar energy project that will generate enough electricity for 75,000 homes in Nevada has been approved by the federal government. Interior Secretary Ken Salazar says the Crescent Dunes Solar Energy Project in Nye County is the ninth large-scale solar facility approved by the Obama administration in an effort to encourage renewable energy development on public lands in the West. Democratic Senate Majority Leader Harry Reid says construction of the 110-megawatt plant will create up to 500 jobs. Once finished, it will employ 50 in operations and management positions. The project 13 miles northwest of Tonopah was proposed by Solar Reserve's Tonopah Solar Energy of Santa Monica, California. It will encompass about 2,200 acres on land administered by the Bureau of Land Management.

This is a win for alternative energy proponents as well as the people of Nevada and the federal government.

Solar Grant Program May Have New Legs

Source: RoofInfo

As Greg Jenner reported yesterday, there may be hope for solar funding in one version of the tax bill currently before the Senate.

This version, a compromise between the Senate and the White House, was voted on Tuesday, Dec. 14, and includes a one-year extension of the Treasury Grant Program mandate (TGP; 1603) to Dec. 31, 2011. Unofficial “cloture” vote counts indicate the measure will pass handily.

For renewable energy firms, especially those planning utility-scale solar photovoltaic (PV), solar thermal and concentrating solar power (CSP; parabolic trough, Fresnel lens, Stirling engine and heliostats with a power tower), this means the rush to break ground or expend 5 percent of project costs now has a one-year breathing period.

Jenner, former Acting (and Deputy) Assistant Secretary of the U.S. Treasury for Tax Policy and currently a partner and tax adviser for a prestigious law firm, notes that this package is simply an extension, and does not reflect any compromise with the House.

As Jenner is quick to point out, the TGP remains on perilous ground, because the House is the author of the complete revision and may refuse to agree on any Senate version. In fact, it is not obligated by law or tradition to do so, so the Senate version – which includes the 100-percent deduction for the year the property goes online – may be nothing more than whistling up the wind.

This is particularly true of a Democratic House faced with losing its majority once new members are seated in January – a precarious power position that makes the word “compromise” seem like weakness.

We can only hope that elected Representatives see not a power base but a bigger picture, in which the new American economy and its renewable energy paradigm comes first. Because the TGP doesn’t just provide clean, renewable solar energy. It also provides jobs.

A Solar Installation Spree as the Deadline for Federal Grants Approaches

Source: NY Times

Owners of commercial buildings are rushing in such numbers to meet an end-of-the-year deadline for a federal Treasury grant program for solar energy installations that inventories of some equipment have dried up, solar energy experts said.

Incentives for owners to install solar panels on their warehouses, or even on excess land, have been growing in recent years, with one of the most important being a federal tax credit for 30 percent of the solar project’s cost. That credit was converted to a Treasury grant program in February 2009 as part of the American Recovery and Reinvestment Act. Instead of having to wait to take the credit against taxes owed, owners receive a check within 60 days of the project’s completion.

As an example, an owner installing a typical 500-kilowatt photovoltaic system on a 100,000-square-foot rooftop at a cost of about $2.2 million would receive $660,000. Depending on how the building is used, that 500-kilowatt system could generate all the building’s power or, for high-demand uses like data centers or refrigeration, as little as 2 percent.

According to a September study by the U.S. Partnership for Renewable Energy Finance, a group of renewable energy financiers, investment in solar systems nationwide doubled from 2008 to 2010 under the Treasury grant program, going from $3.4 billion to an estimated $6.7 billion by the end of 2010. By Oct. 26, 1,118 solar energy systems had been installed under the grant program, according to the Solar Energy Industries Association, a trade group.

But the federal grant program will expire on Dec. 31. If Congress does not renew it, it will revert to an investment tax credit valid through the end of 2016. Without an extension of the Treasury grant program, industry groups say they expect investment in solar systems to shrink drastically.

Few commercial owners could come up with the capital expenditure necessary without the help of the 30 percent Treasury grant, said Jamie Hahn, a managing director at Solis Partners, a solar developer based in Manasquan, N.J. He said that after Congress established the grant program, the market for solar installations on commercial buildings changed from one in which the installations were mostly owned by investors, who then sold power back to building owners, to one where the business owners themselves did the installations.

“Prior to the cash grant coming out, about 70 percent of large-scale commercial solar projects were owned by third-party investors,” he said. “The cash grant made it feasible for actual building owners and companies themselves to own the solar assets.”

Whoever owns the system gets the most benefit, Mr. Hahn said. With federal, state and local subsidies, he said, the investment in a solar system can be extremely attractive. It can even generate income for the business, while locking in or providing free electricity for the 25 years the systems are typically under warranty.

Owners of commercial buildings are lining up to install their solar systems before the grant program expires. Donnelly Mechanical Corporation, a mechanical contractor based in Queens, plans to install a 50-kilowatt system on a 25,000-square-foot building with warehouse and office space, said Robert Ragozine, the company’s president. That will reduce the company’s electricity bill by about 15 percent.

Mr. Ragozine said he expected to meet the Dec. 31 deadline. To qualify for the grant, either a large enough part of the construction of the solar installation must be completed or 5 percent of the cost must be incurred. But if Donnelly does not make the deadline, Mr. Ragozine said, it will continue with the project and receive the tax credit.

Donnelly’s project is intended to maximize incentives. The solar installation is small for the size of the rooftop, but anything larger would not qualify for a solar rebate program, worth $1.75 a watt, offered by the New York State Energy Research and Development Authority.

“We could fit more on the roof, but we’ll max it out at 50 kilowatts,” said Mr. Ragozine, whose solar installation will cost about $275,000. “That’s a maximum rebate of $87,500.”

Other perks include a federal tax benefit for depreciating the system over five years instead of 39, he said. Also, New York City allows building owners to deduct 8.75 percent of the solar installation costs over a four-year period from their property taxes, with a maximum of $62,500 in taxes offset, Mr. Ragozine said.

“With the solar installation that we’re looking at, we would probably be able to save $11,000 to $12,000 a year off our electric bill,” he said. “And with the incentives, we’re looking at a payback about Year 4.”

Incentives have greatly shortened the period of time that owners must wait to break even on their investment. LPS Industries, a packaging maker in Moonachie, N.J., worked with Solis Partners to install a system on its 165,000-square-foot rooftop last June at a cost of $5.7 million. Adding in federal and state incentives, LPS anticipates payback in about five years, said Madeleine Robinson, the company’s chief executive.

Ms. Robinson said she had been so pleased with the solar installation — for which she received her 30 percent Treasury grant about 20 days after installation — that she would like to install a solar farm on adjacent vacant land owned by LPS. The 704-kilowatt system on the roof at LPS now provides almost 25 percent of the company’s energy, saving about $10,000 to $20,000 monthly, she said.

Also, New Jersey, instead of offering rebates, has a thriving market for Solar Renewable Energy Certificates, which enable owners of solar installations to sell their clean energy credits to utilities looking to avoid penalties enacted by the state for generators of “dirtier” energy. Companies can sell these credits for 15 years after the system’s installation.

Other building owners have been scrambling to qualify for the Treasury grant. As a result, crucial equipment, like solar panels and inverters, are on back order, taking as long as eight to 12 weeks to arrive, Mr. Hahn said.

But owners still have time to sign a contract and start a paper trail demonstrating that they have paid for 5 percent of the project by Dec. 31, he said.

Owners who are considering a new roof could qualify for the credit by installing a system made by Solyndra, a solar manufacturer in Fremont, Calif., that uses photovoltaic cylinders that capture light not only from the sun, but also from a reflective white roof. Solyndra has determined that the re-roofing, if done before Dec. 31, can qualify for the Treasury grant — and the 30 percent grant will include the cost of re-roofing.

Mr. Hahn said the Solyndra system was optimal for owners facing weight constraints because it is light, and for those facing heavy winds because as air flows between the cylinders.

“You might get a roof laid in two weeks,” Mr. Hahn said, “and as long as the roof makes up over 5 percent of the project, that would qualify you for the Treasury grant.”