Sunetric CEO Alex Tiller will be part of a panel discussion on financing renewable energy systems tomorrow, January 26th at the Ala Moana Hotel. Please see below for more information and click here to view the symposium brochure.

Hawaii Community Reinvestment Corporation Symposium
“Innovative Resources & Strategies for Business, Non-Profits, Developers and Community Builders”

Featured speakers: Roque Barros (Jacobs Family Foundation), Matt Bayles (Bank of Hawaii), David Bylund (Architects Hawaii), Donna Gambrell (CDFI Fund), Gordon Furutani (HUD), Jerry Hirata (SBA), Robin Hyerstay (Enterprise Community Investment, Inc.), Marc Click (DBEDT), Michelle Morlan (National Development Countil), Jody Mukaigawa (FHB), Alex Tiller (Sunetric), Terrance Ware (City & County of Honolulu)

Time: 8:00am to 4:00pm
Place: Ala Moana Hotel
Sponsored by: Bank of Hawaii, First Hawaiian Bank, Pacific Business News, American Savings Bank, Chun Yoshimoto LLP, Federal Reserve Bank of San Francisco, Finance Factors, Ltd.

General: $100.00 per person
Non-Profit/Government: $75 per person
(includes continental breakfast and lunch)

For more information on the HCRC website, click here.

Last month, President Obama signed into effect the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. While billed as a stimulus package of economic and tax relief measures, there is one section in particular which will spur growth in the solar industry in 2011.

Section 1603 of the act extended a 30% cash grant for commercial renewable energy projects started in 2011. So rather than wait for the the federal Investment Tax Credit, this is an up-front incentive for grant recipients to go solar now. To date, the Treasury Department reports over $5.7 billion in cash grants under Section 1603, a majority of them solar electricity projects.

In addition, an accelerated depreciation provision for new business equipment means that businesses may expense 100% of their investments in solar and other technologies, rather than relying on depreciation over time. Combined with generous state and federal tax credits, there has never been a better time to invest in solar power.

Besides the up-front savings for businesses, another benefit of the extension is the thousands of new jobs that will be created as consumers and businesses continue to move towards renewable energy sources and more efficient use of our natural resources.

While it was hoped that the extension would be for a two-year period, this initial one year extension is a step in the right direction. In the year ahead, we’ll be keeping an eye on bipartisan efforts to extend these measures even further.

Happy Happy New Year Sunetric community!!!  The team here at Sunetric hope your 2011 is off to a fantastic start.

Each year millions of people across the world make new year resolutions to get in shape, eat healthy, spend more time with the family, etc. yet more often than not this last only a few weeks.

It’s no secret that we, Hawaii, are the most fossil fuel dependent state in the nation which causes a very dangerous scenario for our future because of the finite nature of fossil fuel and the fact that our state is more and more vulnerable to fluctuations in oil prices and availability.

2030 is the year in which we hope to achieve 70% clean energy with 30% from efficiency measures, and 40% coming from locally generated renewable sources.

These goals are the most aggressive in the nation – and if we succeed, we will become a world leader in clean energy.

Like most new year resolutions, we get off to a great start but somewhere along those lines we lose sight and we lose focus.

The Blue Planet Foundation posted a blog that talked about how Blue Planet founder Henk Rogers passed out copies of a page from a 1977 Hawaii legislative report (below).  On this report was a graphic that showed exactly how Hawaii could become energy self-sufficient by 2010, excluding airline fuel.

The post when on to say, “The last generation, it seems, wanted to do the same for us as we want to do for the next.  The question remains not whether we can, but how do we get there.” 

We created a new year resolution back in 1977 to become energy self-sufficient by 2010 and somewhere along the way we lost sight and lost focus.  Now that that year has passed, we have yet another opportunity to get it right.

Fossil fuels are not infinite.  We will run out one day.  No one can predict when but we can’t afford to wait another 30 years and find out the hard way.

Each of us are going to play a crucial role in making this happen and you can do your part today, by going solar.

Going solar has never been more affordable and easier.
 
Let’s not look back in 2031, in an oil crisis, wishing we had done something sooner.

Let’s make 2011′s new year resolution the year Hawaii went solar!

If you asked the average person what the U.S. Treasury Department’s Section 1603 Program is, it’s doubtful that they would have any idea. But this program, with its unassuming and technical name, is actually one of the best government programs for developing solar technology and supporting the growth of the industry that’s available today.

Simply put, the Section 1603 program allows businesses to receive a cash grant instead of the 30% federal Investment Tax Credit for the installation of renewable energy systems, including solar. The program was to expire on December 31, 2010, but President Obama signed a one-year extension as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

For Hawaii, this is an incredible opportunity to take advantage of a unique program. To date, Section 1603 has distributed nearly $6 billion in grants for a variety of renewable installations, including solar electric and solar thermal projects. In fact, 1,200 of the 1,656 projects which have been funded by the program have been solar electric installations. This program gives the solar industry in Hawaii the opportunity to bring federal funds to the state to support a larger program of energy independence. The largest of the Section 1603 solar project awards—$19.5 million—went to eSolar Inc. of California.

For businesses, Section 1603 includes some provisions that make solar installation even more attractive. An “accelerated depreciation provision” is included for any new equipment purchased for a business under the program. Under previous tax laws, businesses were allowed to recoup the cost of their investments over time, according to a depreciation schedule, but this new provision allows that to occur in a single year. The President asked for the accelerated depreciation measure in the belief that it would encourage businesses to invest in alternative energy, creating a flurry of new “green collar” jobs.

While those provisions are great for business and corporate investment, there are also parts of Section 1603 that are targeted at residential installations. As part of the program, solar contractors can receive a cash grant for a residential installation if the contractor continues to own the solar property.

Rhone Resch, president of the Solar Energy Industries Association called the extension of the program, “a great day for America’s solar industry…the solar industry can continue its record growth, creating new career opportunities for Americans in all 50 states in 2011.”

It’s true that it’s great for the solar industry in general, but what’s good for solar power is good for Hawaii as we push for lower energy costs and energy independence. It’s an opportunity to bring federal funds to Hawaii and help to develop the solar generating infrastructure which is already growing rapidly.

While everyone in the solar industry would like to have seen a two-year extension of the program, the one-year extension provides an unexpected and welcome opportunity. It gives businesses and residents the chance to take advantage of government incentives and install solar generation capacity in homes and businesses throughout the state. As of the first of January, the clock is ticking. It would be a shame to miss an extraordinary chance to invest in solar through the provisions of Section 1603.

We hope you’re in the midst of a wonderful holiday season, spending time with family, eating good food, and enjoying our warm Hawaii sunshine!

2010 has been an exciting year for renewable energy in Hawaii and for us here at Sunetric. The solar outlook has never been brighter – state and federal governments continue to extend generous incentives for commercial and residential solar, and in October, Hawaii state regulators approved a revolutionary Feed-In Tariff. This new program allows companies generating up to 500 kilowatts of renewable energy to use a standard contract for pricing, terms and conditions when selling power to HECO’s utilities on Oahu, Maui and the Big Island – this should open incredible new horizons in energy independence for our state, and we’re elated to be at the forefront of this positive change for Hawaii.

As a company we were very proud to be voted Hawaii’s Best Solar Company by the Star-Advertiser and listed as the Top Solar Company in Hawaii Business Magazine’s Top 250. Additionally, our founder, Sean Mullen was highlighted on Pacific Business News prestigious Forty Under 40 list as a individual making a difference for Hawaii’s future. In our seventh year of business, we achieved a number of exciting milestones in 2010. We grew our professional management team, we moved in to a brand-new, state-of-the-art office space in Kailua, and just before the new year, we are set to cross the threshold of 100 employees, ALL IN HAWAII! We are also nearing completion on the largest rooftop solar installation on Oahu for Y Hata & Co., which when complete will add to our accomplishments of the largest rooftop- (Kona Commons) and ground-mounted (Wilcox Memorial Hospital) PV systems in the state.

Building off of the excitement and promise of the past year, we’re more enthused than ever about Hawaii’s energy future – 2011 stands to be a remarkable time for renewable energy; we look forward to sharing it with you, online, in the community, at events, and where-ever the sun shines!

Happy Holidays and all the best from Sunetric in 2011!

There was a great article in the December 2010 – January 2011 Building Management Hawaii magazine by Lance Luke that talked about what went into the Y. Hata solar system installation.

According to the article, “When food distributor Y. Hata was looking for a way to reduce its energy cost, four companies found the solution for them.  Locally-owned and operated roofing company Surface Shield Roofing, Pacific Industrial Coatings, Construction Management Inspection (CMI), and Sunetric partnered to provide a roofing and solar system that reduced energy cost and enhanced the integrity of the roofing system.”

The article went on to say, “The roof mounted photovoltaic (PV) solar system is one of Hawaii’s largest at 600kW and will include 2,616 230 watt solar modules on the roof.  Estimated energy savings through lower electrical cost from the PV system and cooler interior spaces due to the new roofing system is estimated to be around 25% or more.”  

To read the full article please click here.

Our friends over at Hawaii Energy came out with a really great article, Gifts that Keeps on Giving: Hawaii Energy’s Top 5 Energy-Saving Gift List.

Hawaii Energy is encouraging everyone to promote energy conservation and efficiency by purchasing gifts that save electricity and decrease the State’s oil consumption.  These are gifts that keep on giving with the additional benefit to the recipient of decreased electric bills.

Their top 5 picks were:

1. CFLs
2. Advanced power strips
3. Electricity usage monitor
4. ENERGY STAR refrigerator
5. And, a solar water heating system

These top 5 picks are all excellent and will greatly help to reduce your electricity bill.  However, why not replace number 5 (solar water heating system) with a photovoltaic system instead?

As we’ve mentioned before, solar water heating has proven to be a tremendously valuable technology in the past, but there are only a few uses for solar-heated hot water in your home – laundry, dishes and bathing. 

Conversely, solar electricity can power your TV, run your A/C, cook your dinner, wash and dry your clothes, charge your cell phone, power your computer, clean your house and more! As Photovoltaic technology has improved in efficiency and costs have come down, Sunetric believes that in nearly all cases, an investment in a photovoltaic system will provide better return than one in a solar water-heating system (Click here to view our white paper).

By adding a photovoltaic system to your house along with CFLs, advanced power strips, an electricity usage monitor and ENERGY STAR certified appliances, you’re creating an “eco-friendly” house, and what better gift for you and mother nature.

APRIL 2011 UPDATE: HECO offers a ‘one-time opportunity’ for residential customers to switch to FIT, but it might not be a good fit after all. Read more.

We’ve already written about the Feed-in Tariff (FIT) system being approved in Hawaii and how it has the potential to really change the renewable energy game on Oahu, Maui, and the Big Island. The basic concept is that it streamlines the process of selling renewable energy back to the utility company. The process used to be exceedingly difficult, with extensive negotiations—it was not something that an individual with a small solar installation was too thrilled to undertake. Now selling extra energy back to HECO is as simple as registering on the website and filling out an application.

The new initiative really is a game-changer, but how does the Feed-in Tariff specifically affect the people and our state as a whole?

First off, if you’re a residential owner, don’t get too excited about FIT. You are eligible for the program, but it is probably not the most economical option for you. FIT customers are locked in to a fixed rate, and a discounted rate at that. Anyone who generates less power than they use, on average, should instead pursue a net electricity metering (NEM) plan. Under NEM, during those times when your home or commercial building is generating more power than it’s using, you get paid at the retail electrical rate – which is usually going to be higher than the discounted FIT rate. FIT is instead a match for commercial properties that consistently generate MORE power from their rooftop than they draw for their own needs.

Maybe the most important big issue that the Feed-in Tariff addresses is that of energy independence—that is to say, energy independence for our state. The FIT legislation streamlines the process by which large commercial customers can contribute to the future of Hawaii’s energy portfolio, putting more clean, safe, renewable energy on the grid which can then be shared by the rest of the State.

Prior to the Feed-in tariff, it was more than a little difficult for these big operations to negotiate with the utility to provide excess energy to the utility, rendering it an unattractive option for many. But now that’s changed, and for Hawaii, that means a tremendous opportunity to contribute to the future of the state as a green energy haven.

By eliminating that burdensome negotiation process with HECO, FIT will also encourage the adoption of large-scale solar power across the state. In the long term, this kind of increase in interest in solar power will lead to a real opportunity for Hawaii to become energy independent, to end the reliance on fossil fuels from the mainland, and to create a state which is environmentally safe, clean, and one in which energy is finally affordable.

And speaking of affordability….

It’s no secret that Hawaii suffer with some of the highest energy prices in the nation. This is partially because of the difficulty that we have in importing energy resources from the mainland. The cost of transportation is high and that cost is passed on by the utilities to the consumer. The new Feed-in Tariff will mean that Hawaiians have new and “greener” alternatives for our electricity needs, as large providers step up to profit from their solar generation investments.

For Hawaii, the Feed-in Tariff program will create a better model for companies to contribute, rather than drain, power from the grid.  In the long term, it will encourage environmental benefits and create lasting economic changes that will make Hawaii a more affordable place to live.

The Feed-in Tariff program has been a long time in coming, and now that we have it in place, it’s an opportunity that we should seize upon—for our financial security and for the future of Hawaii. 

In Hawaii, one organization regulates all of our utilities. The Hawaii Public Utilities Commission, or PUC, operates as a tribunal with semi-judicial powers and oversees public service companies which deal with energy, petroleum, telecommunications, transportation, and water.

According to the PUC’s website, which can be found at http://puc.hawaii.gov, the Commission regulates both franchised and certificated public service companies operating in Hawaii. The PUC can prescribe rates, tariffs, charges and fees, and determines the allowable rate of earnings in establishing rates. Additionally the PUC issues guidelines for the general management of utility companies and acts on requests for the acquisition, sale, disposition, or other exchange of utility properties—including mergers and acquisitions.

The Hawaii Public Utilities Commission has three commissioners. As of December 2010, these are Chairman Carlito P. Caliboso, John E. Cole, and Leslie H. Kondo. The commission employs 48 additional staff members. Currently PUC regulates Hawaiian Electric Company, Hawaiian Telcom, Kauai Island Utility Cooperative, Maui Electric Company, The Gas Company, and Hawaii Electric Light Company.

The PUC is funded as a public service through the Department of Budget and Finance (http://hawaii.gov/budget/).

This description might sound technical to some people, and certainly very sterile to most. Many might ask what the PUC really means for ordinary Hawaiians.

Well, one of the reasons that the Hawaii PUC and other Public Utilities Commissions throughout the United States exist is to provide some form of regulation for utilities in the absence of competition. That is to say, in sectors where natural monopolies arise—such as energy and telecommunication—the PUC provides a counterbalance to potential abuses. The PUC can regulate rates. This means that if a particular utility company is making a large profit margin because of increased rates, the PUC can act to somewhat control the rate hikes.

One of the PUC’s stated missions is also to “promote and encourage the use of alternative, renewable, and/or clean energy resources.” This is a particularly important mission for Hawaiians as we work our way toward energy independence. To that end, recently the PUC approved the “feed-in tariff.” This new rate system has been a goal of renewable energy activists for a long time, and with the action of the PUC, it’s become a reality. The new system sets price guarantees for electricity generated from solar and other renewables and requires HECO to pay market prices for renewable energy fed into the electric grid at locked-in rates set by the PUC. It is hoped that this will help to encourage development of renewable infrastructure in Hawaii.

The commissioners on the Hawaii Public Utility Commission see the body as working on behalf of the people. In a recent interview, Public Utilities Commissioner John Cole says that the purpose of the PUC is to “protect the public interest and promote good energy policy…to try to make things affordable for consumers and move things forward like we need to do for the future.” 

Pacific Business News (PBN) wrote an article the other week on how condominiums are slow to join Hawaii’s move to solar.

The state Legislature passed two laws (one of which we recently wrote about) this year making it easier for condos to go solar.  The first bars an association from making the homeowner responsible for damages and putting a lien on the property pending restitution.  The second makes it possible for condo boards to agree to solar energy for common areas of building without requiring the consent of every condo owner.

These legislations have helped, especially one owner of a condominium in the Mokuleia Beach Colony on Oahu’s North Shore, who wanted to install a solar hot-water heater in her unit and got into a two-year dispute with the complex’s management company.

After the laws passed, she resubmitted her request and now has solar hot-water and is thinking about installing photovoltaic panels as well.

But as the article points out, “the legislation seems to have had a negligible effect on the overall condo solar market, which comprises about one-fourth of housing units on Oahu and statewide.”  One of the issues is cost.  

Federal and state tax credits can reduce the cost of a system by 65 percent.  But individual condo units do not qualify for the federal tax incentives.

The article goes on to say that “Condo boards can decide to put a solar system in the common areas, but such space is generally minimal.  And, because most boards are non-profits, they also cannot qualify for state or federal tax credits.”

There is a small glimmer of hope as the recently passed feed-in tariff (FIT) will allow condo owners to sell excess energy back to the utility company at a fixed price for 20 years…

Still, the feed-in tariff alone is not enough for solar to reach a tipping point with condominiums.

We want to ask you: What do you think needs to be done to help condominium owners join Hawaii’s move to solar?

Please join the conversation on our Facebook page and leave us a comment.  We’d love to hear what you have to say.

http://www.facebook.com/sunetricsolar

APRIL 2011 UPDATE: HECO offers a ‘one-time opportunity’ for residential customers to switch to FIT, but it might not be a good fit after all. Read more.

Back in October, we announced that State regulators approved a transformative initiative called, “feed-in tariff,” which will enable parties generating up to 500 kW of renewable electricity to sell back to HECO’s utilities on Oahu, Maui and the Big Island.

Instead of requiring renewable energy developers to go through extensive negotiations with HECO to be able to sell electricity to the utility, the feed-in tariff (FIT), will use a standard contract for pricing, terms and conditions during the process.

HECO, MECO, and HELCO have begun accepting applications for Hawaii’s feed-in tariff since November 24, 2010.

Interested parties with small-scale renewable energy systems that qualify as Tier 1 and Tier 2 projects can apply online at www.hecofitio.com.

Tier 1 projects include systems on all islands that produce between 0 and 20 kW of power. 



Tier 2 projects include:

• solar PV systems greater than 20 kW and up to 500 kW on Oahu, up to 250 kW on Maui and Big Island, and up to 100 kW on Lanai and Molokai
• concentrated solar power systems greater than 20 kW and up to 500 kW on Oahu, Maui and Big Island or up to 100 kW on Lanai and Molokai
• inline hydro-power systems up to 100 kW on all islands
• onshore wind systems up to 100kW on all islands

Please note that there is a difference between the feed-in tariff and net metering, whose approval in Hawaii we wrote about in October. While net metering allows customers primarily to offset their load with power they generate on their own, the feed-in tariff system allows customers to literally feed in to the grid and sell the power they produce.

The feed-in tariff encourages the development of clean energy in Hawaii, and will help to create new jobs and reduce Hawaii’s dependence on foreign oil.

For more information please click here.

Here’s a short video highlight of the event.

Give a man a fish, feed him for a day; teach him to fish, feed him for a lifetime. With the simple wisdom of this Chinese proverb, Sunetric offered incredible learning opportunities when it installed a PPA at Hawaii’s famous Hongwanji Mission School (HMS). Sunetric knew it had a treasure before it — a captive audience of tomorrow’s leaders. These youngsters were eager to learn how the schools’ new PV panels would save over $200,000 and prevent 13,500 barrels of oil from being shipped to Hawaii.

Sunetric teamed with Hawaii’s top environmental nonprofit group, Blue Planet Foundation, to call for global change in a public ceremony on HMS’s campus. They sponsored a green fair and mobilized 16 other environmental groups — including Hawaii Conservation Alliance, Nature Center, NOAA Marine Debris Program, University of Hawaii’s Sustainability Initiative, and the Hawaii State Clean Energy Office — to staff educational booths on the grounds. The event was held on Sunday, October 10th (10/10/10) alongside hundreds of events worldwide aimed at raising environmental awareness.

Leading up to the Green Fair celebration, Sunetric energy consultants and Blue Planet Foundation staff taught energy awareness classes to the students for two weeks, engaging them on the importance of sustainability on our Islands and in our world.

Visit our 10/10/10 page and our blog post explaining the event.

In the end, Sunetric demonstrated to an entire community just how tangible the environmental and financial benefits of solar energy can be — and sent the K-8 students on their way knowing how to “fish” energy from the sky with clean, renewable solar energy.

View our slideshow of photos from the event:

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