solar growth
DOING BUSINESS IN THE SOLAR DECADE
Many factors point to continued expansion of solar technology — and for the companies, small and large, providing systems components.

Dave Block

If momentum continues at its current pace, the next ten years might be called the Solar Decade. Sales of solar components by U.S. manufacturers are at about $1.6 billion/year, with an annual growth rate of more than 20 percent over the last five years, according to Scott Sklar, executive director of the Solar Energy Industries Association (SEIA), a trade group representing manufacturers, suppliers and installers of solar equipment with state and regional chapters in 37 states. As of 1996, 200,000 homes in the U.S. were using some type of photovoltaic solar technology. According to SEIA, solar industries support over 150,000 jobs in varied areas such as glass and steel manufacturing, electrical and plumbing contracting, architecture and system design, and battery and electrical equipment.

Several reasons are behind the accelerated growth in solar energy systems. Some obvious factors are heightened awareness of the benefits of renewable energy, improved technology, and the maturation of the industry, which is making it feasible to go solar for more people and institutions. Equally evident is the concern about widespread failure of conventional utility grids when the Y2K bug hits on January 1. “Actually, I think more people will use solar energy for power reliability,” adds Sklar. “Utilities have invested less in distribution networks over the years. We have aged equipment and more intense weather patterns. I think people will be willing to pay a premium to avoid the inconvenience of power failure.” The role of government also has sped the solar trend along, both through deregulation and by supporting significant projects in national parks and many other locations.

MILLION SOLAR ROOFS

The most important government program to stimulate growth in solar energy use may be the Million Solar Roofs Initiative. Announced by President Clinton on June 26, 1997, the program seeks to secure installation of solar systems on one million rooftops by 2010. Federal grants are promoting solar energy sales and highlighting opportunities for energy savings, pollution reduction and other incentives for communities, businesses, state governments and utilities. Over 900,000 systems are planned already.

The initiative builds on Executive Order 12902, issued in 1994, which calls for the federal government to accelerate the purchase of solar energy power systems for its buildings. The government’s bully pulpit influences homebuilders, utilities and others, says Sklar. “The federal government is the largest owner of buildings in the world and the largest user of energy,” he notes. “It can set market trends through things like the President’s executive order in June that established milestones and report cards for both energy efficiency and renewables like solar energy. That kind of pressure will help expand the market. Once the federal government gets into it, then the state, county and city governments follow. And when you get those concentrations of technology, builders pick it up in the private sector.” He cites 5,000 solar homes planned in a Maryland project and 2,600 in Civano, a traditional neighborhood development in Tucson, Arizona. (See “Sustainable Development Meets New Urbanism,” July/August, 1998.)

Supplementary objectives of the Million Roofs program include benchmarks for reduction of carbon dioxide emissions by an amount equal to what is produced by 850,000 cars; Creation of 70,000 high-technology jobs as a result of new demand for photovoltaic solar water-heating, and solar space-heating technologies; and Maintaining a competitive solar industry in the U.S. by increasing the domestic market, boosting production and reducing the cost of solar energy systems.

ROOF PROJECT EXAMPLES

On Earth Day this year, 1,400 solar panels were installed on the roof of BJ’s Wholesale Club in Conshohocken, Pennsylvania to produce the largest solar generation facility in the state. Installed by Sun Power Energy and Green Mountain Energy (see “Building A Renewable Energy Company,” January/February, 1999), the system will produce approximately 50,000 kWh of clean electricity each year.

Another impressive project can be found at Fetzer Vineyards, one of the world’s largest growers of organic wine grapes. Fetzer had 360 PV modules manufactured by AstroPower, Inc. placed on the roof of its facility in Mendocino County, California for generation of enough electricity to bottle 1.2 million bottles/year of wine. Funding assistance came from the U.S. Department of Energy’s Utility PhotoVoltaic Group and the California Energy Commission’s Emerging Renewables Program. The 40-kW system went on line June 17. On sunny days, it generates excess electricity that is purchased by Pacific Gas & Electric to meet the high demand for summer cooling.

The first solar energy system installed in Indiana under the Million Solar Roofs Initiative was put in place by the International Brotherhood of Electrical Workers (IBEW) Local 668 in Lafayette. A 3.6-kW photovoltaic system on the roof of the IBEW building is part of a project that is providing solar training to 26,000 electricians across the U.S.

The inaugural project of the Million Solar Roofs program in Nevada featured a solar array at a Patagonia, Inc. facility in Reno. The Ventura, California company expects to save up to 20 percent on its energy bill and more money through providing excess electricity to local utility Sierra Pacific Power.

SCHOOL INSTALLATIONS

Many solar power initiatives, including ones not affiliated with the Million Solar Roofs, also are happening at noncommercial locations such as schools. Sara Ward, chief of the Ohio Department of Development’s Office of Energy Efficiency, notes that her office is helping schools interested in acquiring solar panel arrays. Systems have been provided and installed at a Worthington, Ohio elementary school by California-based BP Solar. A utility, American Electric Power of Columbus, Ohio, bore the lion’s share of the project cost. Nine more schools should have solar panel arrays by the end of the year.

“It’s an opportunity to involve the community in a project focusing on new technology that is environmentally friendly,” she explains. “Secondly, we’re working with science teachers to help them incorporate this into their teaching. There’s evidence to suggest that involving this with curriculum is helping kids in Ohio begin to show improvements in science proficiency tests. There’s significant focus on energy, so actually seeing the system working — and what causes it to not work as well during cloudy or dark times — helps kids get a direct feel for what solar energy is about.”

Public Service Company of Colorado and Altair Energy of Golden, Colorado are in the process of bringing over 30 PV systems to schools in that state. The two-kW installations are made possible through the Colorado Solar Schools Program, which gives a computer to participating locations so students can monitor performance.
Six Wisconsin schools have solar electric systems through the SolarWise for Schools program of the Wisconsin Public Service Corporation, notes Solar Today. A renewable energy curriculum compiled by a high school science teacher is now used by 1,300 students. And in and around Ohio, the Foundation for Environmental Education is working on its goal of installing 100 to 200 PV systems in schools. A website allows students to compare how much power the school’s system is generating with how much energy it is consuming. In addition, the system will be used in math and science curriculums.

NET METERING AND THE FUTURE

The popularity of solar power will no doubt continue as government agencies keep promoting it and more citizens warm up to the technology. Over one-third of the House of Representatives belongs to the House Renewable Energy Caucus. “Congress is considering several issues, including residential tax credits and other kinds of incentives,” notes Sklar, “and more states are passing utility deregulation.” Consumer interest in solar energy also is increasing as financial benefits become apparent. Twenty-eight states have passed legislation establishing net metering, whereby those generating more electricity than they use sell the excess energy to the local utility. Sklar expects net metering to spread throughout the states and be adopted in federal legislation as well. SEIA is working with homeowner groups to lift restrictions on solar PV units being placed on roofs when they meet certain aesthetic and consumer protection guidelines.

In addition to benefits gained by users, the solar energy field represents a significant opportunity for small businesses. “The larger businesses that manufacture panels are here because of economies of scale, but solar panels are only one part of the mix,” Sklar explains. “They have to be integrated into systems, and if you look at companies integrating for applications like highway signs, computers and refrigeration units, those are small companies. We’re seeing more entrepreneurial companies taking the market and running with it. There’s much more innovation on the small business side.”

Overall, the future has never looked brighter for solar power. “If you look at the way our society is moving, there are a lot of handheld technologies and other equipment based on batteries,” says Sklar. “Those batteries and products are becoming more efficient, and they all need charges or a power source. We’re living in an electronic society. There’s no business that can’t have a solar aspect.”