Solar Growth

Of my 30-plus years in the solar industry, the last few years have certainly been the most exciting. Driven by concerns about future energy prices, oil supplies and the environmental effects of fossil fuels, public interest in renewable energy has never been higher. But as the worldwide solar energy market has grown exponentially, the industry has also been faced with supply issues, fluctuating prices, incentive programs that come and go, and an influx of new manufacturers and integrators entering the market to capitalize on what’s widely perceived as “the next big thing.”

Like much of the economy, the last 12 months have been a rebound year for the solar industry. While interest in solar energy among home and business owners has remained high, the unprecedented financial crisis of late 2008 and early 2009—compounded by tight credit markets, reduced property values and an overall reluctance to invest in renewable energy—created a volatile economic situation.

A change for Sonoma County residents came in March 2009, as the Sonoma County Energy Independence Program (SCEIP) became a reality. As a result of this innovative program, property owners now have a simple way to finance improvements that conserve energy and water. Projects funded by the program are paid back through property tax assessments, at a low interest rate, with terms up to 20 years. In most cases, the cost of the energy saved by the solar (or other) improvements exceeds the amount of the loan payment, so the property owner is cash positive from day one.

The Sonoma County Board of Supervisors, Sonoma County Water Agency, Office of the Auditor/Controller, Solar Sonoma County and PG&E all deserve credit for getting this program funded and implemented. It’s considered one of the most innovative and significant programs in the country and exists as a model to other counties that wish to accomplish the goals of promoting renewable energy and water efficiency, improving property values, reducing greenhouse gas emissions and, most important, creating jobs.

These days, the solar technology people are most aware of is photovoltaics (PV), solar electric systems connected directly to a utility grid that offset onsite use. These systems are simple and reliable, have no moving parts, require little maintenance other than occasional cleaning and can be expected to last at least 30 years. Presently, due to the California Solar Initiative rebate program and a 30 percent federal tax credit (both in effect through 2016), as well as lower solar module prices, property owners who purchase a properly designed PV system can fully recoup their investment in as little as six years. This could be considered equal to a 16 percent rate of return on investment. A property owner who purchases a PV system is essentially locking in electricity costs for the next 30 years, at a per-kilowatt-hour cost well below current and predicted future utility rates.

Another initiative that will help grow adoption of solar power, create green jobs and reduce carbon emissions is a new California Solar Initiative thermal rebate program for solar domestic water heating systems. A result of the passage of AB1470, sponsored by local Assemblyman Jared Huffman, this program offers rebates of $800 to $1,200 for residential systems and much larger rebates for commercial solar water heating systems. Solar water heating was very popular in the 1970s and ’80s as a result of state and federal tax credits in place at the time, but the program suffered drawbacks because there weren’t stringent standards placed on the specific systems installed. While many solar water heaters installed under this program are still in service today, many others were poorly designed and installed and didn’t stand the test of time. Solar water heating systems installed under the new program must be certified by the Solar Rating and Certification Council (SRCC) and meet very high design and quality standards. Combined with the 30 percent federal tax credit, solar water heating is again a cost-effective way for property owners to harness renewable energy and reduce our dependence on fossil fuels by using free heat from the sun.

Currently, there aren’t any government rebates or tax credits for solar pool heating systems, but this technology remains one of most efficient and cost effective uses of solar energy. In the case of pools that are regularly heated using conventional energy (such as natural gas), the investment in a solar pool heater can pay for itself in three years or less. Some of SolarCraft’s recent commercial solar pool heating projects include the pools at Sonoma State University, the United States Coast Guard Training Center in Two Rock and the new Hamilton Pool facility in Novato. For residential pool owners who don’t normally heat their pools with a gas heater because of high costs, investment in a solar heater will greatly extend their swim season and pool use.

At SolarCraft, we consider ourselves extremely fortunate to be in this particular business in the North Bay. In addition to being one of the best places in the world to live and work, the environmental awareness and economy of the region make it among the leading areas of the world in terms of adoption and use of renewable energy.