Posts Tagged ‘solar energy’

Thomas Kinrade

A Sixth YieldCo Goes Public as the Asset Class Has its First Anniversary

Today TerraForm Power Inc. (TERP), a spinoff from SunEdison (SUNE), had its IPO making it the sixth yield corporation or “yieldco” to go public since NRG Yield (NYLD) became the first yieldco one year ago.  High dividend yields and rising stock prices have encouraged a wealth of investment in these new companies. However, investors should be aware of the differences that exist between yieldcos and longer term risks associated with the application of this new corporate structure to the power generation industry.

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Alejandro Neira

Palo Alto Feed-in Tariff Stalled by Lucrative Rebate Program

The City of Palo Alto Utilities (CPAU) has established various programs in the last few years to encourage solar development in the city. Despite space constraints that limit most projects to roof mounts and carports, the administration promotes two distinct initiatives designed to meet the statewide Renewable Portfolio Standard of 33% by 2015:

Photo Credits: Richard Masoner

Solar Panels at the City of Palo Alto Municipal Service Center

-       Palo Alto CLEAN, a feed-in tariff program

-       PV Partners Program, a rebate program that supports net energy metered (NEM) systems

On March 2012, CPAU launched the Clean Local Energy Accessible Now (CLEAN) program, in hopes to expand the production of cost-effective, clean local energy. This was an important step towards greater energy self-reliance, and for the city’s goal of supplying 33% of its electricity with renewable energy by 2015. The feed-in tariff pilot program was initially capped at 4 megawatts and it was targeted to medium-sized commercial rooftops with a minimum size of 100 kWs per installation. After opening the program for applications in April 2012, no applications were received at the initial rate of $0.14/kWh.

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Anna Noucas

Maryland General Assembly Passes Solar RPS Acceleration Bill

In an effort to take a firmer commitment towards a clean energy future, the Maryland Senate passed legislation (37-9) that will accelerate the requirement of 2% solar energy generation in Maryland by two years. As mentioned in a previous blog by Sol systems, SB791/HB1187 were drafted to address potential SREC market volatility caused by the design of the former Renewable Portfolio Standard. Termed by supporters as the Solar Jobs Bill, Maryland can expect over $3 billion in investments to the state, as well as the creation of over 10,000 jobs- volumes significantly higher than those of the previous RPS.

Sol Systems currently offers three types of SREC agreements for Maryland solar systems (both photovoltaic and solar thermal): Sol Brokerage, Sol Upfront, and Sol Annuity. Please email info@solsystemscompany.com or contact your solar installer for more specific pricing.

About Sol Systems
Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit http://www.solsystemscompany.com.

Anna Noucas

Maryland General Assembly on Track to Pass Legislation to Accelerate the State’s Solar RPS Requirement

Due to sun-setting Federal incentive programs for solar energy and the current structure of Maryland’s Renewable Portfolio Standard (RPS), Del. Sally Jameson (D-28) and Sen. Rob Garagiola (D-15) proposed legislation that attempts to address this concern. House Bill 1187 will accelerate the solar carve-out expecting utilities in Maryland to achieve the 2% solar energy generation requirement by 2020, instead of the current requirement of 2% by 2022.  The belief is that the current standard will create a glut, or oversupply, of SRECs due to a higher annual increase in solar energy after 2016. This could distort supply and demand of SRECs, thus making the market volatile and less predictable.  HB 1187 aims to provide stability to a potentially volatile market by “smoothing” out the growth of solar in Maryland.

HB 1187 does not increase the overall solar requirement for Maryland; rather it accelerates the achievement of 2% solar by two years (see chart below for comparison). Moreover, although from 2013-2020 there will be yearly increases in demand, as compared to the current requirements, the end goal and requirements for solar will not be affected.

Energy Year Current Requirements Proposed Requirements
2012 0.10% 0.10%
2013 0.20% 0.25%
2014 0.30% 0.35%
2015 0.40% 0.50%
2016 0.50% 0.70%
2017 0.55% 0.95%
2018 0.90% 1.40%
2019 1.20% 1.75%
2020 1.50% 2.00%
2021 1.85% 2.00%
2022 2.00% 2.00%

The estimated benefits of this acceleration could not only create a more stable market with a steadier roadmap of SREC prices, but will also extend into the Maryland economy as a whole. Based upon industry information, HB 1187 could create over 10,000 jobs across the Maryland economy by 2018. Industry predictions state that the legislation could incentivize over $3 billion in investment and $144 million in revenue for the State as a result of job creation.

What does this mean for the ratepayer? The legislation was designed with a 1% price impact on the customer. HB 1187 anticipates a residential compliance cost of $0.19 per month and an average commercial electrical bill increase of 0.11%.  However, the proposed RPS will actually create savings for the ratepayer when compared to the costs incurred from the current RPS schedule.

HB 1187 passed the House with unanimous support on March 21, 2012 and is currently proceeding through the Senate. After having initially failed the Senate Finance committee, SB 791 managed to pass through the committee 8-2 upon reconsideration during a vote late March 29, 2012. After a final lobbying effort by stakeholders and advocacy groups, SB 791 passed upon second reading in the Senate on April 2nd and will undergo its third reading tonight, April 4th, when it is likely to become law. Sol Systems will post an update as soon as more information is released on the status of the bill.

Sol Systems currently offers three types of SREC agreements for Maryland solar systems (both photovoltaic and solar thermal): Sol Brokerage, Sol Upfront, and Sol Annuity. Please email info@solsystemscompany.com or contact your solar installer for more specific pricing.

About Sol Systems
Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit http://www.solsystemscompany.com.

Life After the 1603 Grant: the Road Ahead

The following is a mutli-part series on the Cash Grant and the Road Ahead. It is part of Sol Systems‘ continuing efforts to provide the industry with the information and ideas (where we can) that we believe it needs to continue to succeed. For additional resources on project development, we recommend you join the SolMarket community, which provides a number of informational resources and the SolSmart suite of legal documents.

In February of 2009, the federal government passed ARRA, and the 1603 Investment Tax Credit (ITC) Cash Grant program with it. The Program effectively transformed what was traditionally an investment tax credit into a cash grant, awarded by the treasury, within 60 days of commercial operation. It was perhaps the single most important piece of legislation for solar in recent history, spurring huge growth in the sector, recently estimated to be 69% year over year. In January of 2012 the 1603 ITC Cash Grant will expire, and with it the ability for developers and investors to secure the cash grant in lieu of a tax credit.

So what’s next?  Well, let’s take a look.

Part I: Looking Back

Under the Emergency Economic Stabilization Act of 2008, a 30% tax investment credit for qualifying renewable energy projects was extended through 2016, allowing owners of solar projects to offset 30% of a solar system’s cost through tax credits.  So long as a system owner had enough tax liability over the course of 5 years, he or she would be able to deduct 30% of the system’s gross cost from their federal taxes.

Because most solar project companies or developers working on commercial and utility-size PV projects do not generate enough taxable profit on their balance sheets to utilize the 30% tax investment credit (ITC), they had to seek a financial intermediary with the necessary tax liability to buy a stake in the project company and monetize these tax credits, what is commonly referred to as “tax equity investors”.  Tax equity investors are effectively companies with large balance sheets, traditionally banks and more recently larger corporations, which purchase tax credits to shelter otherwise taxable income, while also providing an essential financing tool for large renewable projects.

In 2007, the Solar Energy Industries Association (SEIA) estimated there were up to 28 tax equity investors, primarily financial institutions led Morgan Stanley, JP Morgan and others.  However, the collapse of Lehman Brothers and the financial crisis of 2008 effectively ended most of these companies participation in the tax equity market for renewables.   Several companies, such as AIG and Prudential, departed the tax equity market entirely because of bankruptcy or uncertainty about whether they would have sufficient taxable income.

II. The 1603 Program

In response, President Obama approved the Section 1603 Cash Grant Program (as part of the American Recovery and Reinvestment Act of 2009), to effectively stabilize renewable energy market by providing $1.9 billion of cash grants in lieu of tax credits.  Under the 1603 Program, owners of a renewable energy system could simply apply for a cash grant to cover 30% of the system’s cost, regardless of their tax liability.

The 1603 Program catalyzed the solar market, with approximately 80% of solar projects opting for the cash grant, driving growth of 104% between 2009 and 2010 in the United States. As of mid-August 2011, 87% (2,095) of the 2,410 cash grants awarded under the 1603 program were provided to solar energy projects (although only 27% of the nominal value if these grants). Since October of 2010, the federal government has invested over a billion dollars in solar projects through the 1603 Grant Program.

Unfortunately for the solar industry, the Section 1603 Program is set to expire at the end of this year, and it appears highly unlikely that it will be renewed again.   With the expiration, interested parties without the necessary tax liability will again have to rely on tax equity investors to fully monetize the ITC.   The problem is twofold: (i) the tax equity market has not yet fully recovered and there are only an estimated 10 to 15 investors looking for tax equity deals and (ii) integrating tax equity into deal structures will significantly increase transaction costs, raise the costs of development, and potentially limit smaller deal sizes.

The result will be a bottleneck in 2012-13, where a substantial number of solar developers and other interested parties look to construct or own commercial-sized solar system, but only a select few can secure the requisite tax equity financing. This will mean a number of projects will not be developed, and those projects that do secure tax equity will see increased yields. Some projects are likely to seek safe harbor under the 1603 Program by securing 5% of the total costs of the system, but this strategy brings with it its own challenges.

So now, as we look towards the horizon, what’s next? What will happen to this 80% of the industry opting for the cash grant? Companies like Sungevity, Sanyo and Vivent are quickly lining up tax equity for the upcoming year, and some believe market growth will slow by up to 50% in the second half of 2012. Might these challenges be mitigated by solar modules priced below $1.10/watt? What creative solutions will our industry implement to meet these financing challenges?

Please join us(and others) next week for Part II of this Series: “Life After the 1603 Grant: Looking Ahead”

After Solyndra: Renewable Energy Financing 3.0

Sol Systems CEO Yuri Horwitz and Associate Andrew Gilligan were featured in yet another article on AOL Energy!

Innovations in renewable energy finance have begun to address an additional obstacle to project development — linking project developers to potential investors.

Solar finance firm Sol Systems launched an online platform, SolMarket, on 31 August. SolMarket is designed to add a level of transparency to the solar financing market by easing communication between project developers and potential investors.

“The communication channels, the financing channels, the due diligence channels were all disrupted and fragmented,” Sol Systems CEO Yuri Horowitz told AOL Energy.

Participation in the platform appears to be growing. In the first two weeks of operations, SolMarket’s partnership funds — those that have agreed to use the platform for due diligence purposes — rose to $400 million from $350 million.

Much like a social networking site, each company and project has a searchable profile that it can make available to potential investors. This allows both sides to more efficiently identify partners or projects of interest.

“They’re not picking up the phone to call 50 developers or 50 investors,” Horowitz said. “That in and of itself is going to save the industry huge amounts of money.”

Resources for solar firms include standardized documents which, when developed by independent firms, can be costly and may not include the information that investors consider vital, as well as standardized analysis tools to evaluate a project’s performance under different financing scenarios or off-take prices.

The site also offers member discounts on solar modules, which may prove particularly valuable to “mid-tier” developers of projects in the 50kW-1MW size range.

“Group purchases are really focused on those small systems, providing them with pricing that they otherwise could not get,” Horowitz said. And they seek to offer the advantage of volume to SolMarket‘s partners on the manufacturing side.

“There’s a lot of room there to grow, but what’s really holding that market back are the transaction costs,” he said.

Read more about SolMarket and renewable energy financing.

Solar Decathlon Provides Opportunity for Students Hoping to Enter the Green Economy

This week marks the kick-off of the U.S. Department of Energy’s fifth Solar Decathlon challenge. The competition, meant to inspire college students to participate in the emerging clean energy economy, will bring twenty collegiate teams to Washington DC to display their innovative solar designs after two years of planning and design. The goal is for these solar-powered homes to be energy efficient, aesthetically appealing, and affordable.

Students from Middlebury College install solar panels from SunPower for the 2011 Solar Decathlon.

Students from Middlebury College install solar panels from SunPower for the 2011 Solar Decathlon.

Collegiate teams will travel from across the world to compete in this year’s challenge, with teams ranging from China to Florida, Belgium to Massachusetts. Though the decathlon teaches engineering, architectural, and design skills, students come from interdisciplinary academic backgrounds. Team Middlebury from Vermont is comprised of over 85 students from more than 25 different academic disciplines. The Middlebury team, or “Self-Reliance,” built their New England farmhouse from local materials with low life-cycle costs such as sustainably forested timber and Vermont slate. Solar design features include passive heating and cooling and a solar array consisting of two hot water collectors and 30 solar panels that will produce 7930 Kwh of energy annually.

Teams will be judged on affordability, architecture, market appeal, engineering, communications, comfort, and more. Team Massachusetts hopes that their 28-panel photovoltaic array of monocrystalline silicon cells will lead them to victory, while Hawaii’s wave-shaped design is sure to earn them creativity points with the judges.

These innovative solar designs will be displayed in West Potomac Park in Washington DC from September 23rd to October 2nd.  The event is open to the public free of charge. Visitors are encouraged to tour the houses to learn more about how they can incorporate these innovative solar ideas and energy efficiency practices to save money on their utility bills.

Sol Systems would like to wish all the collegiate teams the best of luck in the competition. With the global solar market projected to increase by 130% by 2020, we look forward to seeing your new skills put to use in the emerging clean energy economy.

Sol Systems featured on AOL Energy!

Sol Systems’ Andrew Gilligan was featured in AOL Energy! Check out the article below.

Hope Shines Through Bankruptcy Clouds for US Solar Sector

A spate of bankruptcies in US solar manufacturers is not a sign of imminent industry collapse, but the inevitable result of competition in a new and evolving market, according to industry representatives.
Solar manufacturer Solyndra announced its intention to file for bankruptcy on the final day of August, following bankruptcy filings by Evergreen Solar on August 15 and SpectraWatt on August 19. The three firms’ failures prompted a flurry of commentary about the challenges facing US solar manufacturing, and prospects for the sector’s survival.
But solar industry representatives suggest that this is just part of the inevitable weeding out of firms that are unable to compete as the market landscape changes. Solyndra’s bankruptcy was “an anomaly…That’s one of the gazillion technologies out there for solar. Some are going to make it, and some aren’t,” founder of American Council on Renewable Energy (ACORE) Mark Riedy told AOL Energy at the Georgetown University Energy and Cleantech conference on September 2, 2011.

All Eyes East

Competition has intensified for solar panel manufacturers as cheaper Chinese modules have become more widely available. Manufacturing costs are lower in China, due in large part to relatively cheap labor and low-cost loans from China’s state-dominated banking system.

“It’s not like they’re making huge profits either, but they can probably take on more”, said Andrew Gilligan, an associate with solar finance firm Sol Systems.

Another factor that has driven down costs is a reduction of feed-in tariffs in some European countries, according to Gilligan.

“The demand they thought was going to be there in Europe for solar has drastically been reduced in 2011,” he said.

Solar manufacturer and project developer SunPower‘s investments in Italy were hit when the government reduced feed-in tariffs in response to debt crisis, according to project development analyst Brian Bailey.

“SunPower basically lost a major market, and we’ve been moving modules to other markets and trying to fill the gap,” Bailey said at the conference.  Sol Systems' Andrew Gilligan was featured in AOL Energy! Check out the article below.

The Problem With Policy

SunPower’s experience in Italy also highlights the importance of policy risk in the solar industry, as firms are still working towards lower costs that would allow them to compete without government incentives.

Intensified cost competition has not driven every player out of the market. Integrated firms like SunPower and Q-Cells control solar power developments from manufacturing to project implementation, and are less sensitive to manufacturing margins.
The Money Still Flows

And SunPower and Q-Cells have both managed to attract capital, despite uncertain economic conditions.
 

Q-Cells is employing innovative means of raising project funds, such as going through a traditional project finance route but “wrapping” it in an insurance policy, according to director of new market development Nick Chaset. A wrap provides a guarantee against potential losses.

“We’ll provide a parental guarantee as a publicly traded company or we’ll go through a third party like [insurance company] Zurich,” Chaset said.

SunPower is continuing to fund projects using power purchase agreements, as well as lease financing, according to Bailey. The company’s creditworthiness benefits from French oil major Total‘s decision, announced in April, to buy 60% of the solar firm’s shares and provide $1 billion in credit support over five years.

“We have one of the strongest balance sheets in the world behind us”, Bailey said.

And the companies’ solid track records give them a leg up over less established firms.

“Big investment banks, financial institutions aren’t interested in taking risks on a new developer,” said Gilligan.

Two Certainties: Natural Gas And Taxes

But the US solar industry may face additional challenges in the coming years. One of the primary drivers behind a recent boom in solar projects is the option for solar developers to receive a 30% investment tax credit in the form of a cash grant, according to Gilligan. He does not expect the cash grant option to be renewed next year, which would force solar project developers to seek tax equity financing, which may not be as readily available.

And if the price of US natural gas fails to rise, it could act as a barrier to development of all renewable fuel generation sources.

“As long as this natural gas price stays around $4…it’s so cheap that it’s not going to be a good financial decision to build big wind and solar farms,” Gilligan said.

But Riedy argues that there are US solar manufacturers with the potential to survive the culling process by advancing solar technologies and achieving the necessary cost reductions.
“There’s a lot of guys that have really good stories to tell in the solar space and they’re up, they’ve got their projects going, they’re manufacturing panels, the panels are starting to compete with the Chinese,” Riedy said.
Ultimately, any firm that can keep its costs down and provide a reliable product may outlast its competitors.
“Cost is always the key driver,” said Booz Allen Hamilton energy associate David Brown.

Sol Systems Issues Call for Solar Projects – New Project Finance Platform Now Has $400 Million in Available Funding

Sol Systems Issues Call for Solar Projects – New Project Finance Platform Now Has $400 Million in Available Funding

Washington, DC: September 14, 2011 – Less than two weeks after launch, Sol Systems is proud to announce that its new solar finance platform, SolMarket, has increased from $350 million in available investment dollars to $400 million.  In addition, reception by solar installers and developers across the country has been overwhelmingly positive.  SolMarket’s network now includes over 180 companies and 300 users.

SolMarket is a financing platform that will catalyze investment in solar energy projects nationwide by transforming how solar projects are financed.  SolMarket provides investors and developers with the tools they need to efficiently originate, evaluate, finance, and construct renewable energy projects.  It provides a standardized origination platform, a document library, modeling software, and a standardized document suite.  SolMarket will also offer developers group purchase discounts for solar modules and other equipment.  There are no costs for developers to participate in SolMarket.

“We talk to hundreds of solar developers about prospective commercial and utility-scale projects, and unfortunately, many of these solar projects are never built due to an inability to efficiently locate financing,” said Yuri Horwitz, CEO of Sol Systems.  “We have created SolMarket to help drive efficiencies into the solar market and connect investors and developers effectively.  SolMarket will reduce the cost of financing transactions and enhance the tempo of solar project development.”

SolMarket is currently seeking projects ranging from 50 kW to multi-megawatts in size.  Solar developers are encouraged to submit their projects prior to September 30th, when investors will get their first look at projects.  Projects entered prior to this date increase their visibility and the likelihood of getting included in the investors’ 2011 portfolios.

Sol Systems invites interested solar developers to attend a SolMarket webinar, hosted every Tuesday, Wednesday, and Thursday during the month of September at 2 pm EST.  For more information, please email info@solmarket.com or visit www.solmarket.com.

About Sol Systems

SolMarket is a wholly owned subsidiary of Sol SystemsSol Systems is a Washington D.C. based solar finance firm, and the largest solar renewable energy credit (SREC) aggregator in the nation, with over 2,300 customers and over 20 MW of solar capacity under management.  Through its SREC offerings, it has promoted the development of the solar market by providing long-term financing options for SRECs, facilitating over $100 million in solar development.

Contact:

Ms. Sudha Gollapudi, Director of Strategic Partnerships

info@solmarket.com

888-765-1115 x1

Sol Systems Issues Call for Solar Projects – Launches Project Finance Platform with $350 Million in Available Funding

Washington, DC: August 31, 2011 - Sol Systems today announced the launch of SolMarket, a new financing platform that will catalyze investment in solar energy projects nationwide by transforming how solar projects are financed.  SolMarket launches with over $350 million of committed partner funds, actively seeking solar projects in need of financing.

SolMarket provides investors and developers with the tools they need to efficiently originate, evaluate, finance, and construct renewable energy projects.  It provides a standardized origination platform, a document library, modeling software, and a standardized document suite.  SolMarket will also offer developers group purchase discounts for solar modules and other equipment.  There are no costs for developers to participate in SolMarket.

“We talk to hundreds of solar developers about prospective commercial and utility-scale projects, and unfortunately, many of these solar projects are never built due to an inability to efficiently locate financing,” said Yuri Horwitz, CEO of Sol Systems.  “We have created SolMarket to help drive efficiencies into the solar market and connect investors and developers effectively.  SolMarket will reduce the cost of financing transactions and enhance the tempo of solar project development.”

SolMarket has already attracted funding from a number of investors and is seeking projects ranging from 50 kW to multi-megawatts in size.  Solar developers are encouraged to submit their projects prior to September 30th because investors are quickly building out their portfolios for 2011.

Sol Systems invites interested solar developers to attend a SolMarket webinar on Thursday, September 1st, Friday, September 2nd, or Tuesday, September 6th at 11 am EST.  For more information, please email info@solmarket.com or visit www.solmarket.com.

About Sol Systems

SolMarket is a wholly owned subsidiary of Sol Systems.  Sol Systems is a Washington D.C. based solar finance firm, and the largest solar renewable energy credit (SREC) aggregator in the nation, with over 2,300 customers and over 20 MW of solar capacity under management.  Through its SREC offerings, it has promoted the development of the solar market by providing long-term financing options for SRECs, facilitating over $100 million in solar development.

Contact:

Ms. Sudha Gollapudi, Director of Strategic Partnerships

info@solmarket.com

888-765-1115 x1

Magic and Sunrays in the Air

In a neighborhood where painting your door a different color requires approval from a presidentially appointed commission, Georgetown Energy is aiming to permanently change the view of dozens of houses – from the sky.

Georgetown Energy, a student consultancy devoted to helping residents convert to solar electricity, is heading a monumental solar project that involves turning 43 quintessential student townhouse residences to solar electricity in the midst of Washington DC’s historic Georgetown district. Although it is a long-term project to be enjoyed by the generations after many of the current members of the group have graduated, Georgetown Energy students believe that the rewards of such an innovative project are well worth the effort.

What magic surrounding solar coaxed students to become involved so profoundly?  First, there is a substantial payback for the investment. In a solar lease contract signed between Georgetown University, which owns the student townhouses, and Solar City, a leading national solar installation company, adding 96.6 kW of solar capacity to 43 townhouses will require an initial investment of about $164,000, much less than if the University were to purchase the solar panels. Although Georgetown Energy has partnered with SolarCity for this project and used its solar lease scheme as a model, the project will be offered to various installers at its final stages. In the innovative solar lease scheme, the University will “lease” the roof of each townhouse to the installer, which will design, own, and operate a solar photovoltaic system on each townhouse.  The installer will then sell the electricity produced from each solar project to the residents of the townhouse at a lower price than the traditional competing utility. Savings increase every year and over the 20 years duration of the solar lease contract, students would save a total of $458,856 in their electricity cost. After the contract is over, the student body can decide whether to buy the panels at a low price.

Indeed, another charming aspect of the proposal is that everything is student-owned. Originating from the need to allocate a 3.4 million dollar defunct student endowment, the solar investment will take up only a portion of the available fund and coexist with other student proposals as well as generate profit. Ideally, Georgetown Energy sees the proceeds creating a fund for related projects to further environmental awareness and energy studies on campus.

Is there anything else in it for the university, the students, and the DC area? Sol Systems, a strong force in the fight for better solar incentives in DC, believes so. Not only is being involved in such a movement ideal preparation for a career in renewable energy (two recent graduates and former members of Georgetown Energy actually work at Sol Systems), but there is much potential for the greater DC area too. Of course, cleaner air for the district tops the list. It may even attract more students interested in environmental and energy issues and demonstrate the feasibility of clean energy investments, creating a virtuous cycle of environmental awareness and action in the university community. Perhaps the project may even set an example of a successful clean energy investment that some students may follow individually in the future. Lastly, it is a modern display of service to the community, the crux of the founding Jesuit ideals of Georgetown University.

What stage is the project at right now? In April 2011, a student commission voted in support of the proposal. Now Georgetown Energy students are working with University officials on the details. These include contractual issues, billing mechanisms, pricing, and structural and electrical issues with the houses. The Georgetown Energy students are learning some concrete skills needed for evaluating any type of construction investment. The work done from June-August 2011 will culminate in a final recommendation to be handed to the University on September 1st after which Georgetown Energy students will have to persuade the rest of the student body off their feet for a concluding student referendum and choose from final proposals from competing vendors and permitting.  If all goes well, the battle will be won one year from today. The panels will be constructed in Fall 2012 and convert ordinary sunrays to a unique opportunity for revenue and intellectual growth – truly magic!

Sol Systems is hiring a Marketing Associate

Sol Systems is hiring a Marketing Associate!

The ideal candidate will be: resourceful, detail-oriented, and passionate about the development of renewable energy, and will possess the following skills and attributes:

  1. Creative
  2. Outgoing
  3. Excellent writing skills
  4. Willingness to do whatever it takes to “get the job done”
  5. Intermediate to advanced use of Microsoft Office products
  6. The ability to understand a complex and evolving market
  7. Enthusiastic, with a demonstrated interest in solar energy, renewable energy, energy finance, marketing, sales, entrepreneurship, and renewable energy legislation

A successful Marketing Associate will become an integral part of a dynamic company that is a leader in the nascent SREC industry. The Marketing Associate will also be critical to the launch of a new product in the solar financing space. This Marketing Associate will participate in the following initiatives:

  • Blogging
  • Collateral creation and updates
  • Customer Service
  • Industry Association involvement
  • Events & Presentation Planning
  • Product Launch
  • Website content management
  • And much more

Through this position, the Marketing Associate will gain familiarity with solar legislation, solar finance mechanisms, industry news, and industry language, as well as new product development in a fast paced, start-up environment.

Location: The Marketing Associate will be expected to work out of our centrally located office in Chinatown, Washington DC

Commitment & Compensation: The position is a full-time paid position that will entail a 90 day review period. Compensation will be commensurate with experience.  Successful candidates will be eligible for a full time position.

To Apply: Please submit a resume and cover letter (no more than one page each) to jobs@solsystemscompany.com.  Qualified candidates will be subsequently asked for a writing sample and three references.

Arlington, Virginia Commercial Scale Solar Development RFP

Notice to developers in the Washington DC metropolitan area: we want to share with you an RFP for commercial scale solar developments.

Arlington County has issued a Request for Proposals to pre-qualify multiple firms for installation of solar thermal and solar photovoltaic systems on County government buildings over the next 3 years. Pre-qualified firms will receive the Invitation(s) to Bid for solar installations. We anticipate these will range from 5 kW to 50+ kW in size.

As always, Sol Systems wants to remind our partners that we have SREC financing solutions to help you reduce the cost of your solar installations and win bids like these.

Maryland Clean Energy Summit 2010

Maryland’s Clean Energy Summit – October 4th, 2010 – Hilton Inner Harbor

George Ashton, Vice President and CFO of Sol Systems, the largest SREC aggregator and a leader in solar finance, will be speaking at this year’s Clean Energy Summit in Baltimore, MD. The summit will bring federal and state policy leaders together in a public forum to discuss the future of renewable energy in Maryland and the effects local policies will have on the proliferation of residential and commercial renewable energy systems.

Mr. Ashton will speak as a member of a panel discussing the future of renewable generation. One of the most critical components to solar energy projects are the monetization and sale of solar renewable energy credits (SRECs). In fact, the income secured by solar system owners from the sale of SRECs is usually greater than the actual electricity savings. Mr. Ashton will discuss the future of regional SREC markets and their ability to support growth within the state of Maryland and in the region as a whole.

Other panels include: “Discovery Drives Change”, “Forecasting the Climate for Finance”, “Transportation”, “Renewable Generation”, “Alternative Fuels & Biomass”, and “Energy Management & Built Environment”.

Invited Guests include: Congressmen John Sarbanes, Governor Martin O’Malley, and Cathy Zoi, US Department of Energy Asst. Secretary for Energy Efficiency & Renewable Energy

For more information on the conference, please go to: http://www.mdcleanenergysummit.org/

SRECs and Sustainability

Schools and universities across the U.S. are taking sustainability very seriously. A number of schools have established policies so that all new construction buildings are designed to have a reduced impact on the environment by meeting LEED certification standards. Many universities have also set targeted goals. Almost 700 universities have signed on to the President’s Climate Commitment thus far, voluntarily pledging to go carbon neutral. One way to go green is to install a solar photovoltaic (PV) system. Solar PV systems offer a host of benefits including electricity for the life of the system (typically 40+ years), a hedge against rising electricity prices, reduced grid dependence, and a transition to a cleaner, more sustainable economy. However, because the solar renewable energy credits (SRECs) generated from the project represent the environmental attributes of the generated solar electricity, many schools and universities are reluctant to sell them as doing so may be seen as contradictory to meeting their environmental goals. Many entities have contacted Sol Systems on whether there is a way to reconcile this. And the answer is yes. SRECs can be a powerful tool to not only help finance the cost of a solar PV system, but to also help achieve a smaller environmental footprint. Here’s how:

Because renewable energy credits (RECs) from solar projects are high in value (prices can range from $150-$675 depending on the project location and length of SREC contract), the income associated with selling SRECs can be used in a number of ways to further a school or university’s environmental goals. For example, SREC income from one solar project can be used to finance another solar project on campus or finance another type of environmental project such as implementing energy efficiency or water conservation measures. SREC income can also be utilized to purchase less expensive RECs from other renewable energy sources such as wind. Should a school or university opt to replace their SRECs with wind RECs, Sol Systems can design a seamless transaction to assist with this. Rather than engaging in two separate purchase and sale agreements, Sol Systems can design one contract to meet a school or university’s unique needs.

As fall classes resume and school task forces reconvene, we hope that the topic of utilizing SRECs to meet sustainability goals is incorporated into the decision making process.

Sol Systems is a Washington D.C. based solar energy finance and development firm that was built on the principal that solar energy should be an economically viable energy solution. Sol Systems enables solar developers, homeowners, and businesses to fully realize the value of their solar energy systems by providing them with a range of options for selling their SRECs. Our primary goal is to leverage our expertise and resources to allow our customers to maximize the value of their SRECs. We have helped over 1000 customers across 13 states realize the value of their SRECs.

State by State Solar Licensing Database

Earlier this week, we came across a great resource we think our installer partners could use to expand and grow their businesses.  It’s called the ‘Solar Licensing Database’, and it was created by the Interstate Renewable Energy Council (IREC).

The Solar Licensing Database inventories, on a state by state basis, the licensing requirements to become a solar thermal and photovoltaic installer for each state.  This Database also provides useful links to the relevant state authorities who facilitate the licensing.

We think the Database could provide some valuable insights to installers who are  considering branching out into new markets.

The End of Renewables As a Political Issue

The International Energy Agency (IEA) recently noted that solar electricity could represent up to 20% to 25% of total global electricity production by 2050 based on their Solar Photovoltaic (PV) Roadmap and Concentrating Solar Power (CSP) Roadmap, which are meant to assist governments, industry and financial partners accelerate energy technology development and uptake. The report concluded that PV technology will become competitive globally by 2030 on the utility-scale in some of the areas with the best insolation given the right climatic factors. Further, the report indicates that PV has the potential to provide more than eleven percent of all electricity worldwide.

This analysis is good news for those of us in the solar energy space; however, the stated assumption is that governments, like the United States, will implement more concerted policies to facilitate solar energy. Even as some argue that solar energy will soon pass cost parity with nuclear energy, solar energy will likely remain at a competitive disadvantage to traditional fossil fuels unless governments implement policies that recognize the numerous positive externalities of solar energy.

One may wonder: is this political support likely in a country that has failed to pass a comprehensive energy bill? Are the key political drivers that change how our government engages and incentivizes the development of solar and other renewables changing? Will they in the future?

Answer: Almost certainly so. The political and economic interests that have prevented a significant comprehensive approach to solar energy and other renewable energies are changing, and will continue to change dramatically.
Perhaps the single largest driver for political change is the economic change that has taken place in this country in the last two decades. As detailed in a fascinating article in the Washington Post by David Callahan, the United States has moved from a country where thirty-seven percent (37%) of the wealth for the country’s top 400 individuals came from oil and manufacturing in 1982 to merely seventeen percent (17%) in 2006. An overwhelming number of the richest individuals (and the largest political contributors) now represent industries such as finance and technology.

The political implications of these changes are enormous. Currently, according to Open Secrets, an estimated 17.4 percent of all state and national campaign dollars come from the top 100 donors, a hugely disproportionate share. As the political clout of traditional energy wanes, the clout of other industries has grown.

As Callahan points out, although John McCain far outraised Obama among employees of energy and natural resources companies in 2008, pulling in $4 million from this group, Obama simply went elsewhere, and raised $25.5 million from the finance and technology sector. Similarly, he oil and gas industry has been a traditional source of GOP cash and was consistently among the top 10 sources of money for federal candidates for decades, according to the Center for Responsive Politics. In 2008, it moved down to 16th. The entire energy and natural resources sector gave $77 million in campaign donations while lawyers gave $234 million, more than three times as much.

Moreover, many of the individuals in the financial and technology sector are committed to renewable energy. Last year, for example, George Soros pledged to make $1 billion in renewable-energy investments and other billionaires, including Warren Buffett, Bill Gates, John Doerr and Vinod Khosla, are also investing in the sector. Companies are doing the same. Google recently became an independent power producer with the creation of its affiliate, Google Energy LLC, so that it could purchase renewable energy for its large data centers and also purchase energy futures to hedge against an increase in electricity prices.

To make things more interestingly, Google’s most recent purchase of wind energy was from NextEra Energy Resources. NextEra is none other than large utility Florida Power and Light, which changed its name in January of 2009 to better market its commitment to renewable energy. Other utilities, including Duke, First Energy, Pepco Holdings Inc. and others have all made similar commitments to developing renewable energy resources either through direct development, or by helping to finance other projects. Exelon Energy, for example, recently developed a 10 MW solar project called City Solar that will provide energy to over a thousand homes.

In sum, the economic constituency is shifting towards solar energy and other renewables, and so too will the political constituency. The new economy is producing a powerful group of companies and individuals that are committed to fundamentally changing the politics and economics of renewable energy; politicians, both Republicans and Democrats alike, will not be able to ignore this constituency.

The result is an emerging political consensus, among both Democrats and Republicans, traditional energy businesses and financial ones, that renewable energy resources like solar must be supported. This may be through a carbon cap and trade legislation, but more likely the proliferation of solar energy systems will occur through a more incremental approach such as a national renewable portfolio standard and economic incentives like solar renewable energy credits (SRECs). In either case, renewable energy will emerge in the next five years as a non-political issue, and our guess is that the required market incentives to ensure the success of solar energy and other technologies will be implemented.