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Alternative Energy: Getting Cheaper All the Time

Monday, June 17, 2013

An article from the Economist discussed the interesting marketing strategy shift that alternative energy will soon encounter. Alternative energy will, in fact, no longer be ‘alternative’–the whole concept will need a rebranding as “renewable power will start to be seen as normal.”

Solar energy, currently only a quarter of a percent of the planet’s electricity supply, has grown 86% in the last year. This huge jump is very exciting and an obvious contributor to the idea of needing to re-think the concept and naming of ‘alternative energy.’ According to the article, this sector is where we will see the largest attitude shift, with sunlight having the potential to disrupt the electricity market completely.

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The underlying cause of this disruption is a phenomenon that solar’s supporters call Swanson’s law, the article says.

Swanson’s law is more or less an imitation of Moore’s law of transistor cost. Moore’s law suggests that the size of transistors (and also their cost) halves every 18 months or so. Swanson’s law, named after Richard Swanson, the founder of SunPower, a large American solar-cell manufacturer, suggests that the cost of the photovoltaic cells needed to generate solar power falls by 20% with each doubling of global manufacturing capacity. The upshot (see chart) is that the modules used to make solar-power plants now cost less than a dollar per watt of capacity. Power-station construction costs can add $4 to that, but these, too, are falling as builders work out how to do the job better. And running a solar power station is cheap because the fuel is free.

The article goes on to compare cost of wind and solar power with that of coal-and gas-fired plants.

Coal-fired plants cost about $3 a watt to build in the United States, and natural-gas plants cost $1. However, this is before the fuel to run them is bought. In sunny regions such as California, then, photovoltaic power could already compete without subsidy with the more expensive parts of the traditional power market, such as the natural-gas-fired “peaker” plants kept on stand-by to meet surges in demand. Moreover, technological developments that have been proved in the laboratory but have not yet moved into the factory mean Swanson’s law still has many years to run.

Of course, there is more to consider than just cost, like reliability of supply. We are dealing with nature, so the sun isn’t always shining, and the wind isn’t always blowing. However, the issue of reliability is the subject of intensive research by many academic and commercial organizations working on ways to store electricity when it’s in surplus so it can be used when it’s in short supply.

With all the excitement and progress comes one downside that the article presents–subsidies. Subsidies for wind and solar power have fallen over recent years, and will continue to fall. Though subsidies will not disappear entirely, the idea that they are ‘alternatives’ will soon dissipate and they will be seen as able to stand alone in a way that was not true in the past.

Regardless of the consequence of falling subsidies, we are thrilled to share that here we are in 2013 and alternative energy is slowly becoming more and more normal.

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What Are the Top Ten Solar States?

Wednesday, June 12, 2013

SolarReviews lists the Top 20 Solar States in their 2011 review (2012 review did not provide a top state list). We were disappointed to see that Hawaii didn’t make the cut! But why is that? Does this data accurately reflect ‘the top solar states’ as it suggests? After a closer look at the data collection process, The Solar Foundation ranks the states by the number of solar jobs in the state. This is of course going to be skewed by many contextual factors, but state size alone will make a significant difference. Other factors, such as the amount of sun the state typically gets and the development of the solar industry in the state would have been interesting to consider to fully understand the true ‘top solar’ states, but ranking simply by number of jobs doesn’t paint an accurate picture. Studies like this aimed at showing the growth and opportunity of the solar job sector are important, but infographics like this unfortunately provide no useful information without appropriate context.

Now let’s compare this to more recent data compiled by SEIA 2012 infographic. By putting the data into perspetive and context Hawaii ranks #3 for solar watts per capita and 7th overall. Now that’s more like it! The study even breaks down each state with shareable graphics, each with fun facts about each state users can tweet and share. Hawaii’s for example, gets a greater percentage of electricity from solar than any other state.

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According to this study, in 2012, the U.S. solar industry installed 3.3 GW of solar capacity, growing 76% over 2011′s total. We are excited to have been part of this immense growth in solar and proud of our Aloha State with it’s ranking in the Top 10!

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Hawaii Bill Passes Announcing New Solar Financing Program Aimed at Democratizing Clean Energy

Thursday, May 30, 2013

Hawaii’s recent passing of State Legistlature Bill 1087 comes with much excitement to our team at Sunetric. This bill will focus on allowing lower-income populations access to low-cost financed bonds for clean energy projects. The state will create and issue a “Green Infrastructure Bond,” which will secure low-cost finanacing for a variety of clean energy installations, with proceeds funding an on-bill program that is currently underway.

To put it simply, as explained by one of the creators of the concept of Property Assessed Clean Energy–”For the first time, the type of low-cost bond financing that has been available for utilities to build power plants is being made available for homeowners to put solar on their roofs.” He went on further to say, “this just changes the whole ballgame” and “if it is successful in Hawaii, it will be model that other states will look to.”

With this program, lower-income residents and those who are unable to obtain bank loans will have access to low cost financing for solar PV. Additionally, renters of homes will be able to install solar PV panels with the approval of their landlords. This effort to democratize clean energy means, “everybody, regardless of economic means, can access these alternative energy devices,” as stated to ClimateWire by Lowell Kalapa, President of the Tax Foundation of Hawaii.

As we are quite familiar with here at Sunetric, Hawaii has some of the highest electricity rates in the country so serving populations that do not have access to other means of financing is especially important and notable. (notable may not be the best word, even noble or)

Our great state aims to have 70% clean energy by 2030; one of the highest in the country. Hawaii has set a clear example for other states to follow suit and adopt similar financing mechanisms. We at Sunetric are thrilled to see this bill in place, but just as eager to monitor how it progresses and the projects it will empower.

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Kalaeloa Solar Farm Now Generating Power

Thursday, May 23, 2013

Sunetric is proud to have been involved in the impressive and now operational five-megawatt Kalaeloa Solar Farm in West Oahu. The Solar Farm is the first of its kind on state land, located on 36 acres of land leased from the Department of Hawaiian Home Lands.

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Sunetric’s Role

Sunetric was the electrical sub-contractor for Lend Lease, who managed the 5.0 Megawatt solar farm project for SunPower, the world’s premiere solar panel manufacturer. Sunetric was responsible for managing an electrical team of local union electricians managed by our preferred electrical sub-contractor on utility scale projects, Dahl Electric.

Sunetric was also in charge of over a mile of trenching with our subcontractor Delta Construction’s humongous 450 excavators to bust through the hard-baked red earth of Kalaeloa. In addition to facilitating a 20-man electrical team that pulled over 10 miles of wire, Sunetric’s A-team of installers went the extra mile to install 18,192 SunPower SPR-327 PV panels at the busiest time of year for the solar industry—the always-hectic fourth quarter.

Record-Breaking Panel Installation Numbers

Sunetric’s install crews were pulling 70+ hour weeks over the holidays to completely smash mainland numbers for panels installed per day (let alone per week!) on similar systems. The record mainland pace of 450 panels/day was approached in week 6 as we picked up momentum and then absolutely obliterated in week 10 as we worked through Thanksgiving at a blistering 1000+ panels per day.

Fully Operational

Sunetric delivered SunPower a fully operational PV system one day ahead of our deadline, and final permits were all closed expeditiously through Sunetric’s diligence and the quality work of the Dahl/Sunetric team. Through the timely cooperation of the SunPower engineering, Lend Lease management, and Sunetric construction teams the largest solar farm on Oahu was operational on New Year’s Eve 2012.

SunPower Corp.,, who designed and built the project, was wonderful to work with, and our ongoing relationship is an enjoyable and powerful one.

Praise from SunPower

Sunetric finished on time, on budget, and at an unprecedented level of execution, as validated by the senior quality control inspector for SunPower:

KS2 Quality Report from Patrick Sheehan, Sr. Field Quality Auditor of SunPower North America:
“Field Quality would like to recognize the efforts of the KS2 project team and more specifically the execution of the T0 product installation. The wire management under the arrays was challenging, but the Sunetric site team found a method that deserves recognition, which has resulted in arguably one of the best installations of the T0 product we have seen! Thank you Sunetric team for making KS2 a world class installation and one of the safest sites in the country!”

The SunPower Setup

At the 36-acre site, high-efficiency SunPower solar panels were installed on a SunPower® T0 Tracker system. The T0 Tracker system positions solar panels to follow the sun’s movement during the day, resulting in up to 25 percent more sunlight capture over conventional fixed-tilt systems.

“Solar power in Hawaii is cost-competitive with other electricity sources,” said SunPower CEO Tom Werner. “This project will generate power economically for Hawaiian Electric’s customers every year for the next 20 years. With more than one gigawatt of SunPower solar power plants operating worldwide, our high-efficiency, highly reliable Maxeon solar cell technology will ensure the guaranteed performance of the Kalaeloa Solar Farm.”

The Plan

In November 2012, The Kalaeloa Solar Farm was acquired by an affiliate of D. E. Shaw Renewable Investments, L.L.C. (DESRI) in partnership with Bright Plain Renewable Energy, L.L.C (BPRE).

According to CEO of BPRE David Buzby, “Solar is a valuable source of power and attractive investment opportunity, particularly in Hawaii, as it cleanly and reliably serves our growing energy demand without imported fossil fuels, while providing a predictable, low risk return to investors over a long period of time.” He continued to say, “We’re confident that, with SunPower’s leading solar power plant technology, this project will benefit the residents of Oahu for years to come.”

Governor Abercrombie and SunPower CEO Tom Werner celebrate the Kalaeloa Solar Farm.

Governor Abercrombie and SunPower CEO Tom Werner celebrate the Kalaeloa Solar Farm.

The five-megawatt Kalaeloa Solar Farm will produce enough renewable power to avoid almost 9,500 tons of carbon dioxide emissions per year, according to estimates from the U.S. Environmental Protection Agency. To put that in perspective, that’s equivalent to eliminating the consumption of approximately 400,000 barrels of oil over the 20-year term of the power purchase agreement.

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Sunetric’s investment in solar and commitment to renewable energy makes this project one in which we take great pride in having contributed to, and we are eager to watch its progress.

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Sunetric Celebrates Top-Rate Customer Satisfaction

Wednesday, May 22, 2013

At Sunetric, we have a tradition that every time our customer satisfaction numbers come in above 90%, the executive team rewards our hardworking team members with a special surprise. This month was a visit from Kona Shave Ice – an hour of unlimited/all you can eat shaved ice!

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Our numbers came in at 93.5% for the month of April and 91.4% for year to date. We are so thrilled to keep our customers satisfied and now it’s time we make sure our own employees are satisfied too!

Sunetric will continue to lead the solar industry in customer satisfaction because we know our customers come first.

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Sunetric a Finalist in Pacific Edge Business Achievement Awards

Monday, May 20, 2013

Sunetric is honored to be a finalist for the Corporate Social Responsibility Award at the third annual Pacific Edge Magazine Business Achievement Awards. We look forward to attending the gala for the second year in a row, ready to support our fellow innovative business leaders. Last year, Sunetric CEO Alex Tiller was the recipient of the 2012 Business Executive of the Year Award

The Pacific Edge Achievement Awards were initially developed in 2008 to recognize outstanding accomplishments, dedication and innovation of the local business community. The event has since become one of Hawaii’s most anticipated and celebrated events since its launch in 2011.

We are proud to be recognized amongst like-minded organizations that share our awareness in environmental corporate impact.

Pacific Edge Magazine defines nominated business for this award as:

Businesses that demonstrate deliberate inclusion of public interest into corporate decision-making practices. They embrace responsibility for the impact of their activities on the environment, consumers, employees, and the community by proactively encouraging growth and development, and voluntarily eliminating practices that harm the public sphere.

Other notable work with Pacific Edge Magazine: Sunetric CEO Alex Tiller recently named ‘Pacific Edge’s 5 to Watch” as well as Mr. Tiller’s reflection interview on being named 2012 Business Executive of the Year

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You can register for the event coming up at the end of the month on May 30th and get a behind-the-scenes look at last years event.

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Join Us and Obama in Holding Climate Deniers Responsible

Friday, May 10, 2013

Believe it or not, in 2013 there are still people who deny the science around climate change. Believe it or not, some of those people are elected officials in our government. In fact, House Speaker Boehner and the chairman of the House Science Committee said they didn’t know if the science behind climate change was real.

A petition circulating from the Obama Administration aims to let these congresspeople know that the public will not accept climate change denial anymore. Sunetric supports the effort and we hope you will too. Climate change is real and we must all do what we can to slow the effects by supporting investment in a clean energy future.

Click here to view the petition and sign on.

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As Obama’s Climate Campaign Manager Ivan Frishberg explained, “We’re going to make them say it out loud—either double-down on their claims, or come to their senses. The National Academy of Sciences and more than 13,000 peer-reviewed scientific papers all confirm that the carbon pollution in our atmosphere today is causing dangerous climate change.”

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Hawaii Legislature Stalls on Solar Tax Credit Changes Bill

Monday, April 29, 2013

As Pacific Business News reports, a bill that would have altered the setup of solar tax credits in Hawaii failed to progress through the Senate.

A bill that would have changed the state tax credits for solar photovoltaic systems in Hawaii has failed to progress, leaving in place the administrative rules set by the state Department of Taxation that went into effect in November. Senate Bill 623 failed to move through a conference committee by a Friday afternoon deadline, leaving some PV contractors with more uncertainty.

Pacific Business News interviewed our own Aaron Kirk about the issue, who weighed on the unfortunate result of the bill’s standstill:

“The temporary rules will make it much more difficult for PV companies [because] it’s much more difficult to interpret,” said Aaron Kirk, chief operating officer of Sunetric, one of the state’s largest PV companies. “It’s baffling [that the new bill didn't pass] but it shouldn’t deter people from going solar.”

Indeed: while disappointing, this bill isn’t the end of the world.

Call Sunetric at 262-6600 ext. 233 to find out how this applies to you.

Just what did Bill 632 specify? Back in March, the Blue Planet Foundation explained the bill and its benefits.

Senate Bill 623 SD2—although largely devoid of specific amounts—does contain a number of elements which make it an attractive policy, for the state economy, the solar sector, and for achievement of Hawaii’s aggressive clean energy goals. First, the measure follows the framework and definitions of the federal tax credit law, making it easier for the state to administer. Second, the proposed policy ratchets down the state renewable energy tax credit for photovoltaic in a fair and predictable manner, reducing job-jeopardizing volatility in the solar sector. Finally, the measure establishes a production tax credit for certain projects to reduce the first year fiscal impact of the credit and to foster innovation and efficiency in renewable energy systems (the incentive is on the output, not the system cost).

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Solar’s Not Expensive—The Many Harmful Health Effects of Fossil Fuels

Thursday, April 18, 2013

It’s important to maintain perspective when we talk about energy and its costs, considering every angle of the issue and any proposed solutions or changes to existing institutions. Is the news stirring up a non-issue? Are legislators looking far enough ahead?

We talked about this with our post on the Solyndra controversy and our overview of solar tax credits in Hawaii.

Here’s another important thing to remember about perspective: what seems ‘cheaper’ at first blush might come with a handful of hidden costs. A peer-reviewed study titled, “Economic Value of U.S. Fossil Fuel Electricity Health Impacts,” was recently published in Environment International by Sarah Rizk and Ben Machol.

The report centers on a vitally important reality:

“Fossil fuel energy has several externalities not accounted for in the retail price, including associated adverse human health impacts, future costs from climate change, and other environmental damages.”

It seems obvious, but at a time when renewables are still in many ways fledgling, it is an important fact to remember and powerful when quantified. As Sarah Rizk, one of the researchers behind the study, explained to Forbes.com, “There are a lot of reports out there that quantify the total health costs and the total health impact values from fossil fuel energy in the U.S., but there are fewer of them that put it into a dollar per kilowatt-hour metric, which is what you see on your utility bill. We wanted to present it in a way that was digestible to the average consumer of electricity.”

By quantifying and valuing the health impacts from emissions and pollutants associated with different forms of energy production, they were able to show in real dollars how much of the overall cost is being externalized. They estimate that the annual costs of health impacts from fossil fuels at between $361.7 to $886.5 billion annually, a figure which they consider to be a conservative underestimate. At this rate, the valuations for health impacts by fuel type were found to be 19 to 45 cents per kilowatt-hour for coal, 8 to 19 cents per kilowatt-hour for oil, and 1 to 2 cents per kilowatt-hour for natural gas.

As they explain in the report, “For coal and oil, these costs are larger than the typical retail price of electricity, demonstrating the magnitude of the externality.”

The point of all this, explain Rizk and Machol, is that “on average, U.S. consumers of electricity should be willing to pay $0.24–$0.45/kWh for alternatives such as energy efficiency investments or emission-free renewable sources that avoid fossil fuel combustion.” By exposing the true costs of fossil fuel generated energy, renewables would finally be on a more even playing field. It turns out that solar is not so expensive after all.

Of course, this is nothing new.

Which leaves us wondering, what will it take to finally turn the tide towards a clean energy future? The facts are glaringly clear. An International Monetary Fund report released on March 27 similarly pointed to the ‘mispricing’ of fossil fuels. Calling for an end to $1.9 trillion in annual global energy subsidies, the IMF report highlights the need for inclusive pricing so that polluters would finally be forced to pay the full environmental and health costs of burning fossil fuels. At Sunetric, we understand the challenges and opportunities that lie ahead as more people shift away from fossil fuels. We are deeply committed to creating a robust renewable energy future through providing the best quality product, service and technology to all our customers.

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Gabe Chong: The Tax Credits Are Working

Monday, April 8, 2013

Hawaii Solar Energy Association (HSEA) President and Sunetric Project Engineer Gabriel Chong spoke to the Star Advertiser at the Capitol Rotunda last month to support maintaining Hawaii’s solar tax credits. Chong was one of nearly 300 people who showed up at the Capitol in yellow t-shirts with the words “Power to the People” printed on them, creating a visual ray of ‘sunshine’ and explaining why the credits are so important to the future of Hawaii.

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As Gabriel told the Advertiser’s Nina Wu, “These tax credits are accomplishing what they were created to do–make clean energy more accessible and more affordable to more people.” We couldn’t agree more.

Gabe also pointed out that since the tax credits began in 2009, solar PV installations in Hawaii have quadrupled. Today there is enough solar energy being generated to power 18,000 homes. And with the incentives and rebates in place, residents of Hawaii have installed over 90,000 solar hot water systems, the highest rate per capita in the nation.

These tax credits support local businesses and create jobs in the clean energy economy while helping Hawaii reach the goals set by the Hawaii Clean Energy Initiative. It is important that the state of Hawaii continues to support the expansion of a clean energy economy into the future and keeping the tax credits in place is one sure way to do just that.

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Pacific Edge Magazine: Alex Tiller Reflects on Being Named 2012 Business Executive of the Year

Thursday, April 4, 2013

Pacific Edge MagazineHot on the heels of Pacific Edge Magazine naming Sunetric CEO Alex Tiller one of their 5 to Watch in their January–March issue, the Pacific Edge website has just published an interview with Alex following his being named Business Executive of the Year in 2012.

Alex takes the opportunity to reflect on his years at Sunetric and impart words of wisdom for those looking to succeed in business:

What is one piece of advice you would give young professionals?
I’ve never seen anyone achieve anything that qualifies as “great” without taking considerable risk. Don’t be afraid of failing. Failing is part of the process of success.

What is your favorite part of being Sunetric’s CEO? What drives you to do what you do?
I really enjoy getting to work with the outstanding staff at Sunetric. I am constantly blown away by their daily dedication to our customers, professionalism and desire to make Hawaii and the world a better place. I have never worked with a better group of people in my life. I am honored to even be associated with them—let alone lead them.

The full interview is available to read on the Pacific Edge website.

Posted in Blog, Press |

Sunetric CEO Alex Tiller: Pacific Edge’s ‘5 to Watch’!

Second from the left on the corner of the January–March issue of Pacific Edge Magazine, there’s Sunetric CEO Alex Tiller, one of 5 to Watch, a feature highlighting “Five community leaders sharing their successful business insights.” Inside the issue, a you’ll find a full-page profile of Alex Tiller, complete with an interview.

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Posted in Blog, Press |

Sunetric Among Solarworld’s Top 100 Solar Contractors

Thursday, March 28, 2013

Topping out numerous larger and older companies, Sunetric was ranked number 21 on Solarworld’s 2012 Top 100 Solar Contractors list. This comes on the heels of several other recent accolades including Inc Magazine’s top 5000 companies of 2012 where we ranked 60 in the energy category. Not bad for a solar company that’s been around under a decade!

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At Sunetric, we are committed to the highest quality in customer care, employee expertise and cutting-edge product. We’ve installed some of the largest photovoltaic systems in Hawaii and we have some of the most qualified employees on our team.

These achievements combined with our core commitments to quality, and our deep investment in a renewable energy future for America have helped us to stay at the forefront of an increasingly crowded industry. When you choose Sunetric, you can be sure that you are choosing the best in the business.

Posted in Blog |

Solar Jobs Are Good for America

Wednesday, March 27, 2013

Guide Me Solar just published this infographic summarizing the solar job situation in the US over the last three years, and there’s a lot we can learn from the information there.

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Jobs in the PV industry can be broken down into a few categories:

  • Installation: In 2011, there were less than fifty thousand solar installation jobs. The next year saw a 17% growth in jobs, and even more jobs are projected this year.
  • Manufacturing: Though manufacturing jobs dipped in 2012 (perhaps from the increase in Chinese PV manufacturing), they are expected to grow by 9% in 2012 as the American-made solar market rebounds.
  • Sales and Distribution: Highest growth rates of any solar industry expected this year.
  • Project Development, Finance, Legal, Research and Development: All on the rise.

The data (which comes from a Cornell University study published at TheSolarFoundation.org) suggests a total of 139,442 new solar jobs will be created in 2013.

What does this mean?

  • More Americans at work.
  • More dollars saved for homeowners that go solar.
  • A more robust American economy.
  • A more secure national energy infrastructure.

The solar industry’s growth benefits all Americans, and we are proud to be building a brighter energy future with all of you.

Oh, and that reminds us: Sunetric is hiring! If you know someone looking for work in the growing solar industry, let them know about career opportunities at Sunetric.

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Hawaii Ranks Seventh in the Nation for Solar

Monday, March 25, 2013

According to an infographic just published by the SEIA (the Solar Energy Industry Association), Hawaii is 7th in the Top Ten Solar States.

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In spite of Hawaii’s small population relative to the rest of the US (Hawaii ranks 40th out of 50 in terms of population size), 37,000 Hawaii homes are powered by solar, a considerable percentage of Hawaii’s homes.

More than 100 Megawatts of solar were installed in Hawaii in 2012, which is more than the amount of solar that existed in the state before 2012! According to the SEIA, Hawaii’s cumulative installed solar capacity is 191 Megawatts, ranking us ninth in the country.

It’s an honor to be one of the US states representing solar power so heavily and pushing the industry forward. With your help, we are saving our environment, making our energy infrastructure more secure, and saving homeowners money in the face of ever-rising gas prices.

See the entire infographic here!

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