Earlier this August, legendary Hawaii Senator Dan Inouye gave a speech at the Asia Pacific Clean Energy Summit in Honolulu. In it he put forth a clear call to action.

Sunetric CEO Alex Tiller and Business Development Manager Beth Cheberenchick at the Capitol with Senator Daniel Inouye

Referencing the 1970s oil embargo, during which time oil prices increased 400% in just six months, he explained that we have been here before. Our nation’s desire to build up sources of clean and renewable energy is not new, but as the Senator also made clear, in the 40 years since that crisis, we have not sufficiently changed our energy course.

Today we are in the midst of yet another drive towards creating more sustainable, domestic energy sources, but Senator Inouye cautioned that this time, we cannot stray from our course.

“Our nation has gone to war to stabilize the Middle East, and to safeguard democracy. We have gone to war over oil. Our sons and daughters have fought and died in the desert. The volatility in both the price and access to a barrel of oil demonstrates how insecure our nation is–oftentimes held hostage to forces beyond our control. Our renewed drive for energy independence began several years ago with billions being invested once again in alternative energy.

“This time, we cannot waiver. This time, we cannot blink. The spilt blood of our fallen U.S. warriors must not be in vain. We must stay the course. Our nation’s energy security requires it. The future of this planet, and the legacy we leave our children and grandchildren demand it.”

Hawaii’s reliance on imported fuel and imported goods in addition to our location as the most physically isolated islands in the world puts us in a particularly insecure position. In contrast to that, our year round sunshine and potential for wind, wave and geothermal energy as well as our location in the Asia-Pacific region place us in perfect position to become what Senator Inouye termed “an alternative energy bridge in the Asia-Pacific. We [Hawaii] are a testbed of increasing importance in the region.”

The future of world oil reserves is increasingly uncertain. Sunetric recently highlighted an article from the Economist which point out the skyrocketing consumption of oil in the Middle East, one of our main oil suppliers. Sustainable America also recently released research on this same phenomena in a report titled “The Coming Saudi Oil Storm”.

Hawaii’s clean energy goals come at a critical time for our state and our nation. To reach these goals we will need to develop and deploy renewable energy technologies when and where ever possible.

Sunetric is committed to providing its customers with state of the art PV technology so that more and more citizens and businesses can become sustainable in their energy consumption. As Senator Inouye explained, the time is now:

“Hawaii is second in the nation in installed photovoltaic panels per capita, as more families and businesses take their energy future into their own hands. As this momentum builds, it translates into real jobs–Hawaii currently ranks 3rd nationally in ‘clean energy’ job growth. We are on our way.”

Photovoltaik by Pink Dispatcher

In a recent post on Green Building Advisor entitled ‘Solar Thermal is Dead’, Martin Holladay asserts that photovoltaic systems are not only a better value than solar thermal, but they are better long-term investments as well. While the title is a bit hyperbolic, the message of the post is an important one, and in keeping with Sunetric’s own research into the subject.

In much of the U.S., solar thermal energy is inconsistent. Holladay summarizes how, compared to a PV system, a solar thermal system has several disadvantages:

• Unlike a PV system, most solar thermal systems have moving parts (pumps and solenoid valves).
• In freezing climates, solar thermal systems are sometimes subject to freeze damage.
• Solar thermal systems require regular maintenance, including antifreeze replacement.
• Unlike owners of a grid-connected PV system, who can be credited for their excess electricity production during the summer, owners of a solar thermal system can’t sell the excess summer production of their hot water systems.
• While a pole-mounted PV array can include a tracking mechanism to follow the sun’s path across the sky, it’s virtually impossible to install solar thermal collectors on a tracker.
• On average, PV systems probably last longer than solar thermal systems.

There are far more stories of troublesome solar thermal systems than there are stories of troublesome PV systems. Solar thermal systems sometimes develop air bubbles that interfere with the circulation of fluid, suffer from leaking pipes, or experience problems from summertime overheating. PV systems, which suffer none of these headaches, look attractive in comparison.

Holladay concedes that solar thermal systems still make sense in certain situations, like off-the-grid homes and homes in some sunny, warm climates. The fact remains, however, that with credits and incentives, photovoltaics are as affordable as solar water heaters, and in the long term they are even more cost-effective. They provide not just hot water, but power for all of a home’s electrical needs.

In the past six years, more reliable heat-pump water heaters have become widely available, and PV modules have become dramatically cheaper. Holladay adds that while it’s difficult to predict future price trends, he feels there are reasons to believe that the price of PV modules will continue to drop, while the price of the copper tubing used to make solar collectors will continue to rise. So in both the long and short term, photovoltaics are the best bet for value and longevity.

Most people know the Middle East produces massive amounts of oil, but did you know that Middle East nations are also among oil’s biggest consumers? According to The Economist, Middle East oil consumption grew by 56% in the first decade of the century, four times the global growth rate and nearly double the rate in Asia (see map).

Map: The Economist

Saudi Arabia is a particularly good example. Over the last decade, oil consumption in Saudi Arabia has skyrocketed. A Wall Street Journal story about the nation’s rapid growth and shocking oil consumption reads:

With domestic electricity demand rising 10% per year in Saudi Arabia, the kingdom now devours more than a quarter of its oil production–nearly three million barrels per day. International Energy Agency figures show that Saudi Arabia now consumes more oil than Germany, an industrialized country with triple the population and an economy nearly five times as large.

Between air-conditioning units that soak up half of all power generated at peak consumption periods; Aramco, the Saudi state oil company, using nearly 10% of the country’s energy output to produce more oil; and 65% of Saudi Arabian electricity being generated by oil, Saudi Arabia is burning up their precious oil at an astonishing pace. The Economist notes that, “On current trends the kingdom would become a net importer of oil by 2038 (unlikely though that is).”

Saudi Arabia is trying to develop nuclear and solar energy to avoid that fate. They will come to grips with the need for alternative and renewable sources of energy sooner than later. In the meantime, the kingdom’s usual ability to buffer the volatility of the world oil market is being diminished by rapid consumption of their greatest natural resource.

Though many people may not realize it, the United States Military is a leader in renewable energy projects. At a recent Bioenergy conference, Sharon Burke, assistant secretary of defense for operational energy plans and programs at the Department of Defense, explained that,

“Energy security is about international stability and prosperity and that is fundamentally an issue of national security. We’re looking for fuels that are compatible with our existing equipment and storage infrastructure and a cost-competitive alternative fuels market.”

Now the military has big plans for some 16 million acres of lands which it will open up to renewable energy development. The hope is that a wide range of solar, wind and geothermal projects will provide reliable, clean and domestically sourced energy for military bases around the country. Defense Secretary Leon Panetta and Interior Secretary Ken Salazar signed a memorandum of understanding which opens public land previously restricted for military uses to projects that generate renewable energy.

“Solar Farm” by Michael Mees

The Solar Programmatic Environmental Impact Statement

This comes on the heels of a plan announced by Salazar last month which would speed up the development of solar power projects on some 285,000 acres of public land in six western states. While huge solar farms in public lands have been controversial because of size and environmental impact, the road map released identifies the areas that are the best match for this kind of development.

It’s called the Solar Programmatic Environmental Impact Statement and it also sets out the framework for environmental impact studies at each proposed site, all of which are managed by the Bureau of Land Management (BLM). With this map in hand the government hopes to speed up and improve the processing of solar power plant permits. The energy produced on those 285,000 acres would be enough to power approximately 7 million homes, according to BLM estimates.

Government support for renewable energy has enabled the construction of some of the largest solar and wind plants in the country. In Hawaii, the Department of Energy (DOE) Loan program funded Kahuku Wind Power LLC, which generates enough energy for some 6,000 homes annually.

Sunetric and US Military Solar Projects

Sunetric has been involved in some of the most innovative and large-scale military solar projects in the United States, adding up to more than 2.5 megawatts of solar. A list of our installations in Hawaii includes:

• Schofield Barracks (US Army Housing)
• Bougainville (US Coast Guard Housing)
• Enova & US Air Force (Hydrogen Fuel Cell Facility)
• Forest City & US Navy Halsey Community Centers
• US Coast Guard, Aliumanu Military Reservation
• US Air Force, Hickam Air Force Base
• Nawiliwili US Coast Guard
• Red Hill (US Coast Guard Housing)
• Plumeria (US Army Housing)
• Hickam Air Force Base Housing Neighborhood
• US Army Corps of Engineers, Pohakuloa Training Facility

Micro-grids

The military is also looking to develop micro-grids for its bases. A micro-grid is mostly self-sufficient, producing as well as storing energy for a small area or user base. The micro-grid can still be connected to the larger grid but will only pull power when its own sources are not enough to meet demand.

Hawaii & Military Solar Projects, a Perfect Fit

With 11 military bases covering some 20% of the island’s land mass, Hawaii has the potential to profit immensely from the military’s big renewable energy push. Our sunny skies, trade winds, and geothermal potential place the islands in a prime position to take advantage of the federal funds flowing towards clean and green energy sources like solar.

In the last two months, both Boston and New Jersey have pushed forward important legislation that will bolster solar in those states. Just last week, Boston’s Governor Deval Patrick signed into law the 2012 Energy Act. According to the SEIA (Solar Energy Industries Association) press release,

Most solar electric installations are connected to the grid and feed excess power produced to other utility customers; net metering rules gives customers credit for extra power they generate. Solar advocates applauded the new net metering law, which will keep Massachusetts’ impressive solar growth on track and clear the way for the state to meet its renewable energy goals.

In New Jersey, in June of this year, Governor Chris Christie signed legislation S1925/A2966. This addresses the current imbalance of Solar Renewable Energy Credits (SRECs), which created uncertainty in the market for project developers and end users. Rhone Resch, president and CEO of SEIA, explained:

“New Jersey is the second largest market in the U.S. for solar energy, however additional market growth was threatened. Thanks to the leadership of Governor Christie and our champions in the state legislature, in particular Senator Smith, Senate President Sweeney, and Assemblyman Chivukula, New Jersey’s solar industry will now continue to provide jobs, investment and energy security for years to come.”

Here in Hawaii, the solar industry has not been so favored by those in the legislature. Earlier this year Sunetric joined with other solar companies to oppose House Bill 2417 which would have limited the number renewable energy technology system tax credits that could be claimed. Sunetric CEO Alex Tiller explained,

“We are just now getting traction and becoming successful in reducing this state’s dependence on imported oil, and the result of being successful in our efforts to date has been explosive job growth and increased tax revenues to the state. This proposed legislation is contrary to two of the state’s most important goals.”

“Photovoltaik” by Bernd Sieker

Hawaii is poised to be a leader in the solar industry. With ample sunlight and an economy that is dangerously addicted to imported oil, a state supported push for solar energy would benefit everyone. Yet, elected officials have failed to create legislation that will bolster the islands’ solar industry.

Not only is solar a good choice for helping the state reach its clean energy goals, but it is also fiscally responsible. A Blue Planet Foundation report released this spring showed that renewable energy tax credit benefits the state budget in a time when budgets are lean and critical services are strapped for cash.

According to their research:

Every commercial PV tax credit dollar invested yields $13.37 that stays in Hawai‘i and $44.70 in additional sales, which generates $3.17 in new tax revenue. For a typical 118 kW commercial PV installation, the state gains 2.8 local jobs each year over the 30-year lifetime of the system.

And according to the Department of Business and Economic Development (DBEDT), solar accounts for 15% of all construction expenditures in the state.

Blue Planet’s director Jeff Mikiluna:

“Every solar installation not only reduces our dependency on oil but adds a lasting benefit to the state budget and economy that pays off year after year. Ultimately, the tax credit is a smart investment in a better, cleaner tomorrow, a future we value beyond dollars and cents.”

With elections on the horizon, it is our hope that those who are chosen will support solar and support Hawaii’s clean energy goals. Like Boston and New Jersey have shown, a state-supported push for clean energy is good for everyone.

The small pacific island of Tokelau is made up of three atolls. Each is a ring of land with a center lagoon where a long-extinct volcano once stood. This tiny island nation is a non-self-governing territory, with most of its aid coming from New Zealand. Like most Pacific Island nations, Tokelau has a lot of beauty and very little resources. As a result, it has been almost entirely dependent on fossil fuels to run diesel powered generators, another aspect that is very common among Pacific Island nations. Annual imports of fuel in 2003 totaled 162,000 liters of diesel, 181,000 liters of petrol and 57,000 liters of kerosene.

But that is all going to change this year. With the help of the New Zealand government and Powersmart Solar, Tokelau is installing 4,032 solar panels and 1,344 batteries. Together, these will supply 150% of their energy needs and will make Tokelau the only solar-powered country on earth today.

The Tokelau solar installations – Powersmart solar

The first of the atolls to have the panels installed is about halfway through the process and should be complete by the end of September. During periods of cloudcover or in cases of emergency, the islands’ 1,400 residents will rely on another local product–coconut oil. (Earthtechling)

With a national budget of only $2.7 million dollars and an annual cost for diesel of over $1 million a year, the savings from going solar will be significant. The total cost of the project is estimated at $7.5 million. After about seven years, the entire island-wide installation will be paid off, and the panels will still have about two decades of life before maintenance is needed. (Treehugger)

It’s clearly a step in the right direction, and hopefully one that other Pacific Island Nations will emulate. With limited natural resources but lots of sunlight, the Pacific is primed to turn serious focus towards solar energy. Hawaii, as one of the largest Pacific Islands, has the opportunity to be a leader in the Pacific’s push towards solar energy.

Flying Into The Sun, by Vinoth Chandar

In July India suffered the largest blackout in history, affecting roughly 10 percent of the world’s population. India’s growing urban middle-class has increased the demand on India’s power grid in recent years with a thirst for modern conveniences like air-conditioning and electric subway trains. But when a drought hit India this year during monsoon season, something had to give. The lack of rain meant a reduction in power from India’s hydroelectric dams, and a shortage of coal meant the northern half of India found itself with not enough electricity supply to meet demand. Scientific American notes:

Oddly enough, some of the formerly energy poor—rural villagers throughout the subcontinent—found themselves better off than their middle-class compatriots during the recent blackouts, thanks to village homes outfitted with photovoltaic panels. In fact, solar power helped keep some electric pumps supplying water for fields parched by an erratic monsoon this year.

Solar kept the villagers and farms running independently, while 10 percent of the world’s population endured a lengthy blackout.

India has plenty of political issues that contributed to the blackout as well, but events like this are a good reminder of the reliability and efficiency of solar. After the blackout of 2012, it’s likely many of India’s middle-class will be looking into solar power as well.

A message from Sunetric CEO Alex Tiller.

Whenever I travel, people who learn that I’m the CEO of a solar power company ask me about Solyndra, or about the Chevy Volt, or Evergreen Solar, or other ‘green’ energy companies or projects backed by the government that have either failed or are doing worse than expected. I run into a lot of anger about malfeasance and bad management, and a lot of that anger is justified.

The ‘No More Solyndras’ Act

Last Wednesday, July 25, 2012, a House of Representatives committee tasked with energy issues approved the ‘No More Solyndras Act’, a legislative package designed to drastically tighten, if not eliminate, the Department of Energy’s ability to issue loan guarantees to green energy projects and companies. Our industry’s trade group, the Solar Energy Industries Association, opposed the bill as being too restrictive, and was disappointed that the subcommittee approved provisions that ‘throw the baby out with the bath water.’

In the wake of the decision, the SEIA issued a statement noting their intent to continue working to improve the DOE loan program and noted its many successes, pointing to a more secure energy infrastructure and a solar industry that employs more than a hundred-thousand Americans:

The loan guarantee program has yielded notable successes. In solar alone, the program is providing crucial financing to support the construction of 11 utility-scale solar power plants in the Southwest that will produce 2,700 megawatts of safe, clean power—enough to power 630,000 homes. These are financially sound projects with guaranteed revenue streams.

1,484 Successful Companies

Of course, nobody wants to see government waste, but the net result of these restrictions is counterproductive—it will likely lead to more company failures, not less.

News stories that talk about the loan-recipient companies that have defaulted on their loans or gone bankrupt consistently lack a critical point of context: all of the companies that have received government assistance and have succeeeded. As mentioned in the SEIA statement above, the last round of DOE loan assistance funded 11 large-scale solar plants, plants which are running great and have added 2.7 gigawatts of clean, renewable solar power to the national grid.

At last count, sixteen companies that receive or have received government financial assistance have gone bankrupt or had similar problems. The exact total of lost funds is hard to draw a line around, but is typically estimated at around a billion dollars.

Sixteen firms, a billion dollars—nothing trivial. But in context, the impact is lower than you might expect. The truth is that 1500 companies received funding from the government, and only 16 of them failed—that’s a 1% failure rate, and 1% of the total funds. A one-percent failure rate is extremely low when it comes to investment.

Nobody is laughing off a billion dollars, and nobody is happy about whatever politicized process may have given some firms money they ought not to have gotten. But it’s important to look at the issue in perspective.

Solyndra and the Bigger Picture

Solyndra didn’t fail because government funding for green power is doomed. Solyndra failed because they focused on a proprietary technology that cost too much, was deployed too early, and launched against competition that had the upper hand. The Chevy Volt got off to a slow start not because government subsidies for electric cars are irrational, but because of a complex web of issues—customer perception of electric vehicles in general, quality issues with the vehicle, or a lack of true commitment to the sector by the manufacturer.

The green power industry in this country is much bigger than these troubled firms—a lot bigger. Solar power alone has more than 100,000 employees at more than 5,600 companies, in all 50 states. Some of those firms are doing poorly, and a few may even be broke. But the overwhelming majority of them are doing OK or better. Government funding or support for them may or may not be a good idea—it depends on the company, on the program, on the idea. But we let a handful of high-visibility foul-ups poison our perception of a profitable and growing industry at our own peril.

It is completely understandable to be outraged when we see or read about a government program that’s gone wrong. We shouldn’t disregard the failure of Solyndra or companies like it, nor the miscalculations on the part of the Department of Energy that led them to give money to these loser operations. Money was wasted and actions should be taken to ensure it doesn’t happen again. But inefficiency and error are intrinsic to human affairs, government included.

Government Investment in Alternative Energy Must Continue

The bottom line is that overall, these programs have been well-managed, have gotten money into the hands of companies that have used it well and wisely, and are helping to build a more secure energy future for our country.

Punitive, reactionary, and shortsighted regulations will serve only to slow our progress towards a better and more sustainable energy industry in America. Let’s take a close look at the mistakes we’ve made, correct the procedural defects that allowed them to happen, and continue to improve the work that our solar industry does with the government to secure a better future for us all.