Ups and Downs in Maryland Solar Industry

Ups and Downs in Maryland Solar Industry

A great stepping stone for the Maryland solar industry would be to add solar energy systems to state buildings.  Well, on March 24th, 2010, just that happened.  The Maryland Department of General Services announced that they would be installing photovoltaic systems on 5 of their buildings.  Engaged in a 20-year power purchase agreement with SunEdison to install, finance, own and operate the five solar systems, Maryland taxpayers would not be responsible for the upfront cost of the projects.  Solar arrays would also be a great addition to the state's renewable energy portfolio.

Another good sign for the Maryland solar industry involves the Maryland Energy Administration updating a new incentive program for the installation of mid-sized solar electric systems.  In an attempt to make clean energy retrofits accessible to local businesses, the two year program would use a total of up to $1.45 million to help subsidize the cost of commercial r ooftop solar projects.  Maryland businesses would qualify for a rebate of $500 per kilowatt of solar electricity installed for systems between 20 and 100 kW, or a grant of up to $50,000.  The MEA incentive program would also cover up to 15% of a solar thermal system, or up to $25,000 per grant.  Business owners should be very attracted to this offer as the economy is prime for building your own solar business from the ground up.  The Maryland solar industry will undoubtedly see growth from this move.

But in the end, one blemish to the Maryland solar industry must be noted.  On March 26th, BP Solar regretfully laid off 320 of their 430 employees putting a halt to all production of solar panels in their Frederick, Maryland plant.

Unfortunately, because we are still in a recession, the Maryland solar industry along with other states' solar markets will still see setbacks like the one previously mentioned.  This might be another sad event that needs to occur for the entire green economy to move forward.  Some solar companies will have to fail before we see price drops and the huge boom the solar industry seems to be waiting impatiently for.

Rich Hessler Solar
Solar Financing and Solar Marketing 

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Maricopa ED-3 Board Brings Back Solar Rebates

Maricopa ED-3 Board Brings Back Solar Rebates

Arizona. With an average of 211 sunny days a year and one of the largest cities in the United States (Phoenix at number 5), Arizona seems like a prime candidate for photovoltaic solar systems. To help finance solar installations, Electrical District number 3 voted to continue with the solar rebate program. 

After starting the program in 2009, it quickly ran out of money. Already, the rebate program has caused the company to spend $300,000 more than originally set aside.

Electrical District 3 continued to fund the solar rebate program until it was no longer possible. At this point, 32 customers have installed solar systems and 14 more were on the waiting list.

The surge of solar customers appears to be valley-wide. 113 APS customers applied for solar rebates in 2009. The total number of solar installations in 2009 is greater than the past eight years combined.

Electrical District 3 is now continuing the solar rebate program, except the rebate has been reduced from $3 per watt to $2.15 per watt. The program is funded by charging electricity consumers 30 cents a month and commercial users $12/month.

Electrical District 3 is researching how much consumers are willing to contribute a month to renewable energy. Until this information is collected, Electrical District 3 will hold off on tariff increases.

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The US - Will It Take the Necessary Steps to be a Renewable Energy Leader

The US - Will It Take the Necessary Steps to Be a Renewable Energy Leader

The current oil spill off the coast of Louisiana is causing some Americans to question the longevity and environmental impact of oil. Renewable energy companies should take advantage of the situation and persuade Congress to make renewable energy a top priority.

Renewable energy, including photovoltaic, wind, and geothermal provide 15 percent of Germany and Denmark's energy requirements. In those counties, utility companies are required to purchase renewable energy at a set rate. The rate is set once and guaranteed for a pre-determined number of years.

This gives renewable energy viability. The current political and economic climate makes energy prices extremely unstable. With a set rate for renewable energy, companies can get financing to install renewable energy. This policy has led to an extreme increase in renewable energy infrastructure and the creation of many jobs.

America's energy policies are still controlled by lobbying and political pull of fossil fuel giants (BP, Chevron, Arco, Shell, and more). This money has successfully distorted public opinion about the economic, environmental, and social implementation of renewable energy. By distorting renewable energy, the fossil fuel giants have been able to make record profits and receive federal subsidies.

Many countries laugh at our outdated energy policy. They are discouraged not only because Americans use 25% of the world's energy, but because the United States holds 4.5% of the world's population.

The United States should be adopting the energy policy of Germany and Spain. By installing renewable energy, the United States can create much-needed jobs, secure its energy for future growth, and make the world think differently.

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BP Solar closes Maryland plant due to market competition

BP Solar closes Maryland plant due to market competition

Though BP Solar is a big name in the renewable energy industry and maintains steady investment in wind energy technology, its efforts in solar development have endured a significant blow.  

On March 26th, 2010, BP Solar announced that it would be ceasing operations at their Frederick, Maryland manufacturing facility. BP Solar opened the facility just three and a half years ago.  With lower cost solar materials and equipment being imported from China and even India, BP Solar simply determined the move to be the most financially practical.

Out of 430 employees at the Frederick plant, 320 were laid off.  Production involved with silicon casting, wafering, and cell manufacturing was ceased and all workers associated with these departments lost their jobs.  BP Solar plans to shift all the remaining in-house manufacturing to other low-cost joint ventures to ultimately become more affordable to their market.  Sales and marketing , research and technology, project development and other business support functions will remain.

Reyad Fezzani, CEO of BP Solar, stated "Solar prices declined between 40 and 50 percent since the onset of the financial and economic crisis, compressing industry margins and driving solar power towards grid competitive pricing.  By shifting our supply to a high quality, low cost supply base to serve both distribution customers and large scale projects, we have strengthened our position as a provider of competitive solar solutions with our offer of the highest lifetime value."

Beginning in the first quarter of 2009, BP Solar also closed several other high-cost manufacturing locations and consequentially reducing their prices by 45%.  Most solar companies have found themselves drastically lowering their inventory values due to strong international competition and depressed silicon prices.  

Rich Hessler
Increase your Solar Company's Profits with Focused Solar Marketing 

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Lights Out on Maricopa Solar Incentive ED-3

In late 2009, Electrical District No. 3 (ED-3) started offering up to $15,000 rebates on professionally-installed photovoltaic solar systems. The was so much interest in the program that ED-3 looked at ways to reduce its popularity. Already, the response has exceded the funds set aside for the rebate.

The ED-3 solar rebate program is funded by a renewable energy fee it charges customers - 30 cents a month for residential users and $12 a month for commercial. These fees help the company raise $300,000 a year, some of which is used to continue funding renewable energy projects.

Unfortunately, these projects pale in comparison to major utility companies such as Arizona Power Service (APS) and Salt River Project. These companies charge its customers between $1.88 and $3.46 a month for renewable energy projects and incentives. This will provide APS with $86.7 million in tariffs in 2010.

Despite collecting a large amount of money to fund renewable energy, APS and SRP are planning to scale down their solar programs. The number of pv solar installations in 2009 is greater than the previous 8 years combined.

One way APS will accomplish this is through reducing it's maximum rebate to ~$13,000. If APS does not takes this action, the funds set aside for this year will run out by June.

Still, thanks to the generous rebates offered by the federal government and APS, a solar system costs $8,000 - $12,000 out of pocket (instead of $30,000 - $35,000). Imagine purchasing a solar system at $8,000 that will provide you with electricity for the rest of your life!

In addition, any excess energy produced by your solar system will run your meter backwards, giving homeowners a rebate on their electricity.

APS is also looking into raising fees to support these renewable energy programs. APS is discussing whether the renewable energy fees are something the residents of Phoenix would want to pay.

This brings up one important point - the residents of Phoenix are paying for the solar rebates. Why would anyone continue paying for other homeowners to install photovoltaics instead of taking advantage of this offer? Getting a solar system 60% off in a state with as much sunshine as Arizona seems like a no-brainer.

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Solar Uniting Neighborhoods (SUN) Act - Colorado Solar Industry

Senator Mark Udall from Colorado revealed the Solar Uniting Neighborhoods (SUN) Act yesterday (March 18, 2010). The SUN Act allows residents who invest in solar system projects for their communities to receive the same 30% tax credit as homeowners. This provides an excellent incentive for communities around Colorado to invest in renewable energy systems to power their communities.

This will increase the demand for solar in Colorado, bringing solar jobs when they are needed most. In addition, Senator Udall hopes that it will push Colorado to set the solar standard for the country.

Just like the 30% solar tax credit for homeowners, the SUN Act has no limit and expires in 2016. With the implementation of solar credits, state and federal governments are hoping to decrease the cost of photovoltaic solar systems (so the tax credit is no longer needed). This will usher in a new era of abundant, renewable energy to power a renewable economy.

This should be the break that communities are waiting for. Why would you wait for energy prices to go up when you can get 30% off a solar system? It provides a steady flow of electricity, protects communities from blackouts, protects from rising energy prices, and provides a stable return on investment. Where else can you find an investment that is as secure as the sun rising in the morning?

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Typical Online PV Solar Classes

The development of the new, lucrative solar industry excites the minds of entrepreneurs. In order to thrust their ideas forward, entrepreneurs need an educated workforce. Many organizations have stepped up to the challenge by providing quality solar installation classes, but few solar classes provide practical sales experience required for the solar industry.

A typical solar class covers:

• Art and understanding of energy independence through
  • Solar
  • Wind
  • Hydro
• Solar fundamentals
  • What electricity is
  • How solar panels produce electricity
• Solar equipment
  • Solar panels
  • Inverters
  • Wiring
• Solar system design
  • Shading
  • Arrangement of panels
  • Wiring
  • azimuth
• Solar system installation
• Solar system monitoring
  • Locating electricity-production errors
  • Finding a defective panel
  • When to replace an inverter
• Solar system repairs

Why is it important to provide quality solar sales classes? Many solar sales professionals do not fully understand what they need to sell solar: reading an electric bill, determining the amount of electricity a solar system needs to produce, pricing a system, and factoring in rebates, determining return on investment.

Worst of all, many solar sales professionals cannot explain this information to a homeowner (which is vital to making a solar sale). This is why solar sales classes and training are vital. One company, Rich Hessler Solar, provides a course that emphasizes selling a system to solar prospects. The solar class teaches the fundamentals of solar, how to price a system with rebates (and includes a FREE Excel solar calculator), how to present solar (with a FREE customizable presentation), how to handle common objections in the presentation, and to close the deal.

When choosing a solar class, be certain to choose a class that provides both practical experience and background knowledge.

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Renewable Energy - Replenishable Energy of the Future

Renewable energy is created by natural resources that are regenerable or replenishable. This means that after energy is consumed, natural processes regenerate the source. These resources include sunlight, wind, rain, tides, geothermal, biofuels, and more.

Unlike fossil fuels, these resources will not run out and produce little waste. Here is an overview of how humans harness sunlight, wind, rain, tides, geothermal, and biofuels.

Sunlight:

• Photovoltaics - converting sunlight directly into electricity
• Solar Thermal - using sunlight to heat up water/oil. The hot water is used in homes and hot water/hot oil are used to spin a turbine to generate electricity.

Wind:

• Turbines - spinning turbines generate electricity

Rain:

• Dams - rain collects into rivers to return to the ocean. Dams harness the "downward" movement of water to spin turbines to generate electricity. Someday, water might be pump behind a dam during the day (and maximum photovoltaic electricity production) to be used to generate electricity at night.

Tides:

• The movement of tides can be harnessed to generate electricity. Since the tide is almost always moving in or out, electricity production is consistent.

Geothermal:

• Heating - water warmed by geothermal resources is circulated in floors and walls, providing home heating.
• Electricity Generation - hot water can be used to spin a turbine and generate electricity.

Biofuels:

• Algae - nutrients, algae, and sunlight are combined to produce different types of fuels. Unlike the fuels underneath the earth, fuel produced by algae is renewable and removed carbon dioxide from the atmosphere
• Corn - Corn is converted into ethanol, which is used to power cars and generate electricity.

We all know that renewable energy is the future of our civilization. Someday, fossil fuels will run out and force us to adopt renewable energy. Right now, renewable energy is supported (to a very small extend) by governments worldwide. With government rebates, it is economically feasible to switch to photovoltaic for electricity production. If you want to discover how photovoltaics are economically feasible, sign up for this free photovoltaic webinar.

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