We have written before about the importance of the federal section 1603 Treasury Grant Program as a means to spur further growth in solar. Well it is crunch time and if you agree with me that this is a program that needs to be continued, there are a couple of things you need to do, NOW.
The good news is that it is easy, thanks to the 1603 Coalition folks over at SEIA - here’s what you need to do:
We have railed in the past about the PR problems plaguing solar - well, here is a way for you to help counter some of that by making a little positive PR of your own. If everyone who supports solar were to take five minutes today to do these two things, we would be well on our way to getting the 1603 program extended for another year - and wouldn’t that be a swell way to ring in the New Year?
We are very pleased to report that one of the premier schools in Pasadena - or pretty much anywhere for that matter - the Westridge School for Girls has just selected Run on Sun to design and install a 54 kW solar power system on the Fran Norris Scoble Performing Arts Center.
It is very gratifying to have been chosen over some tough competition for this project, particularly given the School’s well-established commitment to sustainability. Indeed, just last year Westridge dedicated a new science building which has received the coveted, but very rare, LEED Platinum designation. Now as part of Westridge’s plan to “green” all of the campus, the 54 kW solar power system will be another dramatic step in that direction.
Even better, since the project will use Enphase micro-inverters, the students from grades 4-12 will be able to study the performance of the system right down to the individual panel level. We look forward to working with the Westridge faculty and administration as they teach their students about the difference that solar power can make in their lives.
At Run on Sun we have a special place in our hearts for working with non-profits and we would love to help your non-profit add solar too!
Next Tuesday, December 6th at 11:30 a.m., the LADWP Board of Commissioners will host a special meeting to discuss the LADWP’s Renewables Portfolio Standard (RPS) Policy and Enforcement. The meeting is open to the public and will be held at LADWP Headquarters in downtown LA (111 N Hill Street) in Room 1555-H.
Some in the renewable energy community are viewing this meeting as one of the last, best chances to modify the proposed LADWP Feed-in Tariff program that has been under consideration now for months. As Michelle Garakian of the LA Business Council put it in an email to FiT supporters, “This is another crucial opportunity to make sure we have a real meaningful Solar feed-in tariff here in Los Angeles.”
The meeting comes after LADWP received substantial criticism of its proposed FiT demonstration program as being too timid and inconsistent with the state’s legal mandates, as well as the release of a major study from UCLA and USC that found that a greatly expanded FiT would find a ready workforce in the area. State Senator Gloria McLeod (D-32SD), author of SB 32 which creates the statewide FiT mandate, has also been critical of the LADWP approach, noting that it “ignores the intent behind the legislation and diminishes its potential." (The lawyer in me cannot fail to note that when a legislator says an action “ignores the intent” of the law, they are effectively conceding that the proposed action is legal.)
We have noted previously that LADWP staff appears completely committed to pursuing its demonstration phase as proposed regardless of the pushback from the community. Armed with a legal opinion that says that their “price exploration process” is consistent with SB 32, it is hard to imagine them changing course at this point. It will be interesting to see if Tuesday’s meeting shows any softening in that position.
We will report back after the meeting. If you are attending, please take a moment to come up and say hello.
Everyone knows that the Los Angeles Basis is blessed with a near year-round abundance of sunshine. Everyone also knows that LA is a power-hungry region demanding between 4,000 to 5,000 megawatts peak power depending on the season (and anticipated to increase to 6,500 megawatts by 2020). Given that, the marriage of solar power to meet LA’s needs should be a no-brainer. So what’s the hold-up? Why are we so far behind?
A new joint study out from UCLA and USC titled “Empowering LA’s Solar Workforce” places the blame on a failure of policy leadership:
Unless civic leaders ramp up efforts to expand solar programs, the city and region face the prospect of being left behind, as other municipalities and other regions move forward on solar power and clean energy programs. In fact, while a recent study showed that one-quarter of all solar energy jobs in the nation are in California, there is a very real risk of those jobs (and others yet to be created) fleeing to other places. This report is, above all, a wake-up call to policymakers to make certain they are utilizing an important workforce segment – and creating policies that will put qualified people to work. In Los Angeles, the policy mandate is clear: the LA DWP must move forward swiftly on a comprehensive FiT [Feed-in Tariff] program.
By any measure, the region’s utilities are just not getting the job done. This table shows the status of statewide solar program targets and progress toward completion for the seven utilities in the area:
SCE and our own Pasadena Water & Power lead the way at 20% and 16% of SB1’s targets being achieved, with the rest falling far behind. But given its enormous size compared to all of the other munis, LADWP’s failure to lead at only 6% achieved is beyond disappointing.
Clearly the failing here is not for a lack of available human resources. The report correctly notes that Los Angeles has a substantial population of workers who have been trained - thanks to innovative programs from organizations like Homeboy Industries, LA IBEW11/NECA and community colleges - but not fully employed in the solar industry due to a lack of proper policies to spur the growth of local solar installations. While LADWP has focused on utility scale installations in remote areas, it has lagged behind on installations that could be done right now in communities all across the city. A greatly expanded FiT would allow solar developers to match up high solar potential project areas with high employment need areas.
Here’s another way to gauge progress - how much solar power per customer has each utility installed? Again, LADWP is lagging far behind:
Again, SCE leads the way with 119 Watts per customer installed. PWP is in the middle of the pack at 36.8 whereas LADWP has less than half that much (and not even a sixth of SCE’s total) at a measly 18.25 Watts per customer.
Faced with such dismal statistics, this is no time for short-sighted measures, but the timid, 6 MW demonstration program being presently contemplated by LADWP is far too meager to make a dent in this need. To the contrary, the report argues that a 600 MW FiT program should be implemented over the next ten years. According to the report, such a FiT must: “1) have a fixed price; 2) offer the program to participants on a first come, first serve basis; 3) have a simple application process; and 4) incur minimal administrative costs." Such a program would create good-paying local jobs and help the region meet its energy needs while protecting the environment.
We couldn’t agree more.
We previously wrote about how Congress could help grow the economy by extending the section 1603 Treasury Grant Program. Now there is a Coalition being formed to help get solar companies to sign on to a letter to Congress. Run on Sun is a signatory and we encourage our fellow solar participants to do so as well.
First some background. The section 1603 Treasury Grant program allows commercial solar power system owners to receive the 30% federal investment tax credit in the form of a grant. This has two grant advantages: first, not every commercial operation has a “tax appetite” that is big enough to fully utilize a tax credit of that size. The grant solves that by not being tied to the particular tax position of the receiving commercial owner. (Sadly, the grant program is not open to non-profit or government owners.) Second, because the grant is issued by the Treasury upon completion of the project, the 30% payment is received sooner than would the corresponding tax credit.
Unfortunately, the 1603 grant program is scheduled to expire at the end of this year - which is where the Coalition comes in. Organized by the folks at SEIA, the Coalition has a short letter that will be sent to members of Congress (the text of the letter is reproduced below and a pdf version is attached).
We urge all solar companies and organizations related to this field to join Run on Sun in signing on to the letter.
You can do so by following this link to the SEIA site.
The deadline to participate is November 23.
Here is the letter in full:
TEXT OF THE COALITION LETTER:
The undersigned companies, small businesses and organizations are writing to ask that you extend the highly effective Section 1603 Treasury Program before it expires on December 31, 2011. Extension of this program will create jobs, spur economic growth and promote private sector development of energy technologies.
The Internal Revenue Code provides a host of tax incentives designed to spur the development and use of domestic energy sources and technologies. Project developers commonly monetize these tax incentives by partnering with tax equity investors who have the liquidity and tax liability to utilize the credits.
The 2008 economic crisis and the economy’s subsequent downturn drastically reduced the availability of tax equity, severely limiting the financing available for energy projects. The Section 1603 Treasury Program, which was enacted in 2009 and extended in 2010, allows energy developers to receive a federal grant in lieu of taking an existing energy tax incentive they are otherwise entitled to claim. This is simply a change to the timing of when an energy incentive can be claimed. This change in timing, however, provides the liquidity needed for the further development of domestic energy projects.
The 1603 Treasury Program has been a resounding success. Since its enactment, the program has leveraged over $21.5 billion in private sector investment to support over 22,000 projects utilizing a wide range of energy technologies in all 50 states. This has resulted in thousands of new American jobs. The 1603 Treasury Program is an efficient finance mechanism that allows taxpayers and small businesses to maximize the return and value of existing energy tax incentives, and is technology neutral so it encourages the development of a wide variety of domestic energy technologies.
Lastly, there remains a need for the 1603 Treasury Program. The tax equity market modestly improved in 2010, but still has not recovered to pre-recession activity. A July 2011 survey of the major tax equity investors by the U.S. Partnership for Renewable Energy Finance estimates expiration of the program would shrink the total financing available for energy projects by 52 percent in 2012. This would stifle job creation and severely restrict the market’s ability to leverage private sector capital to finance new domestic energy projects.
Thank you in advance for your consideration. We look forward to working constructively with you to meet the nation’s economic and energy policy goals.
[Companies and organizations in alphabetical order]
«climate change» «commercial solar» cpuc «enphase energy» «feed-in tariff» fit gwp «jim jenal» ladwp «net metering» pg&e pwp «run on sun» sce seia «solar power» «solar rebates» solarcity usc «westridge school for girls»