March-April 2011

From Possible to Probable

As the cost drops and the incentives rise, new renewable energy technologies are becoming a more feasible option for businesses interested in increasing efficiency and preserving their bottom line.

Tweet

Advances in renewable technologies are fueling an increasing number of projects that continue to dot the landscape of North America, delivering its end users increased energy efficiency and greater onsite power capabilities. And because of projects like large-scale solar farms and an ever-increasing international market for solar and wind, the costs associated with renewable energy are slowly starting to drop, making solar (and wind) an increasingly practical option for businesses and individuals focused on improving efficiency and getting a good return on their investment.

Progressive and Popular
In Cary, NC, SAS, a business analytics software and services company, in conjunction with groSolar and FLS Energy, recently completed its second solar farm on the company’s campus. groSolar distributes, installs, and integrates solar energy solutions for residential and commercial installations. FLS Energy is a solar energy generation company that provides engineering, technology, installation, and financing solutions.

The new solar farm—situated on approximately 7 acres adjacent to the first 5-acre farm—has a 1.2-MW capacity and will produce an estimated 1.9 million kWh each year. It comprises 5,236 ground-mounted photovoltaic (PV) panels. The system incorporates a Ray Tracker tracking system that rotates the assembly for maximum sun exposure, increasing energy capture by up to 25% over fixed systems and reducing acreage requirements.

SAS Solar Farm 1, operational since December 2008, produces 1.7 million kWh annually. The combined systems avoid more than 3,500 tons of carbon dioxide (CO₂) emissions from conventionally produced electricity. The electricity generated from the SAS solar farms is being purchased by Progress Energy.

“Projects like our solar farm demonstrate a fundamental shift in the value placed on energy efficiency, intelligent power sourcing, and end-user consumption,” says Jerry Williams, SAS environmental sustainability program manager.

“The development and implementation of alternative energy sources is important for our environment, a stimulus for our economy, and a step in the right direction to achieving energy independence,” he adds.

The solar farms are part of an overall sustainability program at the SAS Cary campus, which also includes solar thermal hot water systems, regenerative drive elevators, water and waste conservation projects, active employee engagement efforts, as well as two soon-to-be-completed buildings designed to attain Leadership in Energy and Environmental Design (LEED) certification.

Photo: SAS At SAS, sheep help keep the vegetation manicured and fertilized.

Photo: SAS An SAS solar farm comprising of 5,236 ground-mounted PV panels.

 

SAS is also using its own software solution, SAS for Sustainability Management, which was launched in 2008 and helps organizations accurately measure and manage their environmental impact. “groSolar applauds SAS and Progress Energy for recognizing that solar power is an economically viable energy source for America,” says groSolar CEO Jeff Wolfe. “We are proud to be helping SAS save money on energy costs while protecting our environment with solar power.”

Michael Shore, FLS Energy CEO, says the SAS project is “not only making SAS leaders in solar energy generation, but is also generating clean energy, creating jobs, and reducing pollution.”

The project did present some challenges.

“FLS Energy has developed enough solar projects that the methods are tried and true; the challenge is identifying the best technologies for the project,” says Shore. “This specific project had land that was sloped quite a bit. We had to design a racking system and support structure that was able to manage the difficulty of the site.”

Shore adds that there had been other creative approaches to making the project work. Case in point: Eight sheep inhabit the 12 acres to keep them manicured and fertilized. Grass is grown between all the panels to keep dust at bay.

“In the Southeast, we have a lot of vegetation that grows, so SAS’ use of sheep is a way of keeping maintenance costs down,” says Shore.

“The example that SAS has set by investing in two solar farms, as well as investing in solar on roofs on many of these buildings, is a demonstration that the solar age is dawning,” he says, adding that in five years he believes solar panels will become a common part of the rooftop landscape throughout the country.

The SAS solar installment helps North Carolina accomplish its renewable energy  objectives, says Scott Starr, director of Commercial and Utility Solar for groSolar.

“There are a lot of benefits to the community, to job creation, to economics, and to the advancement of renewable energy in North Carolina with this,” he says, adding that the total solar installation at SAS of 3.6 million kW most likely makes it the second largest PV installation in the state.

Starr echoes Shore’s observation that the biggest challenge was topography. “SAS had effectively used their available flat land for their first project and wanted to colocate the second solar farm, and that land had some different topography. We were able to be creative with our design and choice of suppliers to adapt the new solar array to the topography with minimal earth work.

“That resulted into what is a beautiful-looking PV array that ties in with the landscape while still utilizing the single-access tracking technology that SAS wanted in order to increase the amount of production from the solar plant,” he adds.

Photo: SAS

Williams says that the SAS project, and other sustainability efforts, are embraced with enthusiasm by employees. “The excitement translates to a level of stewardship, innovation, and efficiency that they bring back to their day-to-day jobs. Why wouldn’t your employer want you to do things more efficiently?”

The solar installation also makes good business sense from the perspective of the bottom line, Williams adds. “The same incentives that are available to SAS are also available to individuals and businesses. Investment in solar actually has a decent return on investment and payback.”

Those incentives include 30% federal and 35% state tax credits, accelerated depreciation benefits, and a viable market for the sale of clean, renewable energy and associated Renewable Energy Certificates. Another benefit involves the satisfaction felt by customers and employees that a large source of the company’s power comes from renewable energy sources; primarily because of the additional employment opportunities and progression towards energy independence, both of which many in the community attribute the addition of solar energy to the project’s overall energy plan.

For Williams, efficiency and distributed generation are two reasons the solar energy model is so attractive for a company like SAS. “Solar energy is also a great option for a more efficient energy model where power can be produced and used at the source of generation. A distributed grid model could save the enormous amounts of energy lost in the power transmission infrastructure associated with conventional large-scale production and distribution.”

Williams concedes that despite all of its benefits, the widespread adoption of solar power as a primary energy option still has a long way to go before it’s affordable for everyone. The monkey wrench for many businesses has been the recession. The financial environment of the last two years had made it difficult for companies to qualify for loans or leverage available incentives. And while the financial backing may be available, many businesses are reluctant to take advantage of available tax incentives.

“It’s great if you have a 35% state tax credit, but if you don’t have the revenue and associated tax base to take full advantage of it, your ROI [return on investment] is greatly diminished,” says Williams.

Photo: FLS Energy The new solar farm has a 1.2-MW capacity and will produce an estimated 1.9 million kWh each year.

Photo: FLS Energy

LEED-ing Wind
In early 2010, Adobe Systems Inc. added to its ongoing green efforts its first renewable energy effort through the installation of 20 Windspire wind turbines at its San Jose, CA, headquarters. It augments existing efforts, which has earned the US Green Building Council’s highest accolade for green practices. Adobe is the first commercial office building to receive the LEED for Existing Buildings (LEED-EB) Platinum certification for its headquarters.

It’s also the world’s first commercial enterprise to achieve a total of four LEED Platinum certifications.

The new Windspires are located on Adobe’s sixth-floor patio, which serves as a rooftop garden and recreational area above an office parking garage. The patio is situated between Adobe’s three office towers, creating a wind tunnel effect from sustained winds off the Pacific Ocean.

Each Windspire stands 30-feet high, 4-feet wide, and weighs 650 pounds. The propeller-free, vertical-axis wind turbine is designed to harness wind power in urban, suburban, and rural locations.

“With the installation of the Windspires, we’re adding renewable energy to a long list of green measures Adobe has taken to lessen our environmental impact,” says Randall H. Knox, III, senior director, Global Workplace Solutions, Adobe. “We’ll continue to seek innovative green technology solutions to reduce our energy dependence and inspire others to go green.”

In the past decade, Adobe has reportedly saved approximately $6.7 million as a result of its energy and sustainability efforts, including energy-efficient lighting, real-time water meters for landscaping, and an intelligent control system to help monitor building efficiencies.

Turnkey Solar in Golden State
The largest school solar power installation to date in California began construction in the end of the summer 2010 when PsomasFMG partnered with the Antelope Valley Union High School District to begin constructing a $52-million, 9.6-MW PV design-build project.

The solar system is being constructed for the 10-campus school district without any capital expenditure, but rather is being funded through private investor financing arranged through PsomasFMG. PsomasFMG provides turnkey solar solutions to public agencies and commercial entities requiring solar systems of 1 or more MW. It is a joint venture of Psomas Renewables, a subsidiary of the engineering services firm Psomas, and First Management Group, a partnership of veteran CEOs who have managed numerous ventures through complete business life cycles. The public-private partnership will help cut the school district’s energy costs and provide shade in the parking lot with no upfront costs, says Jeffrey Foster, the district’s deputy superintendent.

Photo: Psomas FMG PsomasFMG began constructing the largest school solar power installation to date in California—a $52-million, 9.6-MW PV design-build project.

Photo: Psomas FMG

Photo: Psomas FMG

Paul Mikos, PsomasFMG executive vice president, points out that for many entities, the financial gain must be there in order to pursue such a project. “Very few people will enter into a renewable energy project without first appreciating and getting a good financial return for doing it. The improvement to the environment is a secondary advantage, but the finances have to be addressed first.”

For the Antelope Valley Union High School District, the financial benefit is saving on the overall cost of electricity and also the ability to budget the cost over the length of the contract, Mikos points out.

“That speaks to the financial advantages,” he says. “You have all of the advantages of the environment improving through the reduction of greenhouse  gas CO₂ emissions. Some state laws also require entities to reduce their carbon footprint. It gives an area the ability to have a better environment besides the ability to save money.”

Mikos explains that because of the school’s no-capital expenditure situation—unlike most projects that cost money to get the services or reap the advantages—this is a situation “that reaps good financial rewards and should be investigated. School boards, city boards, and county boards really need to look at ways to deal with the shrinking of the budgets to do potential services that they’ve been appointed or elected to do,” he adds. “Investigating energy costs is absolutely a way to not add costs to the public entity, but really give them an opportunity to have a significant cost savings.”

The power installation is expected to promote the school district’s energy independence, substantially decrease its electrical costs, and reduce its greenhouse gas emissions by an estimated 250,000,000 tons over the next 20 years. It is engineered to produce clean, green energy for more than 80% of the school district’s electrical needs. The remaining energy requirements will be provided by Southern California Edison at a reduced rate.

The system includes the construction of steel-frame canopies to support solar panels and provide shaded parking for a total of 4,000 faculty and student vehicles. The 9.6-MW power generation will use approximately 41,000 PV panels. The solar systems are being installed in three phases, with the final systems scheduled to be commissioned in early 2011. The first five were online before the end of 2010. PsomasFMG will provide long-term asset management for the project, including the sale of electricity at a fixed rate through a power purchase agreement. The school district forecasts an 18% reduction in electrical expenses in the first year of the project with an overall savings of $40 million over the next two decades.

The Antelope Valley Union High School District project is a custom-designed solar solution that exemplifies future projects PsomasFMG will be installing for school districts, public agencies, and commercial entities throughout the Southwest, according to Mikos. Such projects promote energy independence and reduce greenhouse gas emissions at schools, with the potential for long-term savings costs to be redirected to fund essential education programs and services, he adds. In the meantime, the Palmdale School District recently awarded a $30.8-million contract to PsomasFMG for the construction of a 6.4-MW solar power installation at 19 sites. Design and engineering are currently underway.

21 Projects, One University
Also in California, California State University (CSU) has entered the third phase of a solar power agreement put together by California’s Department of General Services that significantly cuts the system’s dependence on non-renewable “dirty” power. Projects at 21 CSU campus locations and the office of Chancellor Charles B. Reed are being considered for the third phase. The projects would add nearly 13 MW of solar capacity for the university system, more than doubling the 12 MW already existing, in construction, or planned for 2011. Reed points out that as the nation’s largest public university, CSU is committed to setting an example of sustainability for others to follow.

New solar installations are being considered for the California Maritime Academy, Bakersfield, Channel Islands, East Bay, Fresno, Fullerton, Humboldt, Long Beach, Los Angeles, Northridge, Pomona, Sacramento, San Francisco, San José, San Luis Obispo, San Marcos, Sonoma, Stanislaus, CSUEB Concord, SDSU Imperial Valley, CSUSB Palm Desert, and CSUS Stockton campus locations.

Photo: Indian Wells Since Indian Hills sees more than 350 days of sunshine per year, using solar makes sense.

Photo: CSU Projects at CSU campuses are being considered for the third phase of a solar power agreement by California’s Department of General Services.

Photo: Indian Wells

The power-purchase agreement calls for 15 qualified private companies to compete to finance, build, operate, and maintain the solar panels for 20 years. CSU will be able to buy renewable power at or below current retail rates while avoiding the initial system installation cost.

Len Pettis, chief of Plant, Energy, & Utilities at the CSU Chancellor’s Office, calls the solar installation a fast, affordable way for CSU to meet its renewable energy goals and exemplary of a successful public/private partnership. While the primary benefits may focus on meeting overall sustainability goals, additional benefits are derived through providing university-wide educational opportunities for new and emerging technologies, Pettis says.

Those are not limited just to the science and engineering colleges, but there has also been interest from the behavioral, sociology, and general business colleges for analysis of a business model, he says. “As the Chancellor has indicated, we do want to make a stand that we’re serious about a long-term commitment towards sustainability.”

There have been some hurdles to cross in doing so.

“In the first couple of rounds, the industry in California was still coming into its own, so we did not have as many qualified bidders,” says Pettis. “We learned a lot of lessons in the implementation and the qualifications and the Request For Proposal.”

The lack of funds during the recession has been another challenge.

“There has been less of an appetite for this kind of investment and the venture capital investment, so that’s been one of the things we’ve been contending with,” he adds.

“However, we’re hoping we see a sweet spot in the market with the fact that we are a long-time public entity with long-term plans to continue to stay in business, and we hope that the investment community looks at us favorably,” says Pettis. “We’re also exploring a lease/ownership model and will be looking at both models going forward.”

The first phase of the solar power-purchase agreement in 2008 included 3.6 MW of solar installations. The second phase—adding up to 8 MW—is expected to be completed in 2011. The third phase—the largest in terms of number of projects and added solar power capacity—is expected to be completed in 2013.

While the three phases of the current power-purchase agreement comprise the majority of CSU solar power installations, some campuses have pursued other means of installing solar power through a lease/ownership model. The combined 25 MW of solar power on CSU campuses is estimated to reduce more than 13,000 metric tons of carbon emissions annually.

An Affordable—Energy Smart—Community
Elsewhere in California, the community of Indian Wells is nearing its goal of reducing energy consumption by 10% by the year 2012 through the recent installation of solar PV panels on a city-owned apartment building.

Late last year, the city completed a $3.2-million project—offset by $1.8 million in incentives from Southern California Edison (SCE)—at a 90-unit complex. The city received an additional $405,000 in funding and rebates from other participating partners, including Coachella Valley Water District and Southern California Gas.

The PV panel installation augments other initiatives, including cool roofs and air-conditioning systems, dual-flush toilets, tankless hot water heaters, lighting upgrades, and smart irrigation controllers. The project also includes a virtual monitoring system of the facility’s solar production. Residents are expected to benefit from lower electricity bills and a smaller carbon footprint.

Former Indian Wells Mayor Ed Monarch had observed that because the region sees more than 350 days of sunshine annually, “it makes sense to harness the power of the sun for clean energy development.”

Earlier in 2010, Indian Wells applied for a Multifamily Affordable Solar Housing incentive from SCE to supplement funding from the city’s Redevelopment Agency. SCE is the nation’s leading utility for renewables, delivering about 17% of its total power from renewable resources such as solar, wind, geothermal, biomass, and small hydro. SCE also buys nearly 80% of the nation’s solar generation for its customers.

Gene Rodrigues, SCE’s director of Energy Efficiency and Customer Solar, says he hopes that more cities and businesses take note of the solar and energy efficiency solutions the company offers, following the example set by Indian Wells.

The Indian Wells Villas “Energy Smart Community” fulfills the city’s mission to provide low-income residents with an opportunity to receive a reduction in their monthly utility bills by retrofitting the property with newer, energy-efficient technology. The project helps the city reduce its cost providing energy-dependent services to the community, notes Corrie Kates, community development director.

“Some of the common area lighting, irrigation, and water consumption costs are reduced so, thereby, we do not have to raise the rent as often to make sure we cover all of our costs,” he says.

It also helps reduce property maintenance costs.

“The residents get the benefit from that,” says Kates. “The other benefit for the residents is they get a reduced energy bill and, possibly, a reduced gas bill. We get the benefit of reducing water as well because there are no water meters anymore. We use all  tankless water heaters and on-demand gas usage. So gas production would hopefully be reduced.”

Indeed, energy costs for tenants are expected to decrease because of the desert environment.

“Cooling costs can be a little bit higher than in most areas,” says Kates. “The solar panels offset the cost of electricity that is used in order to cool down the unit, so the tenants can have a more enjoyable time by leaving their thermostats at a more comfortable temperature and also enjoy a reduced energy bill.”

The project ran smoothly because of the team of partners working together toward its execution, Kates says.

“It’s about putting together the team, which includes the utility provider, to put a positive program together to find solutions.”

A CHP First
A biomass combined heat and power (CHP) system will be the first installation of its kind in North America, following a signed multi-million dollar agreement between Canada’s Nexterra Systems, a supplier of biomass gasification systems, and the University of British Columbia at its Vancouver campus. The installation follows three years of collaboration between Nexterra and GE’s Jenbacher gas engine division.

The new CHP system will convert urban wood waste into clean burning, combustible synthetic gas—also known as syngas—using Nexterra’s proprietary gasification and syngas conditioning technologies. The syngas will be directly fired into a GE internal combustion engine to produce 2 MW of electricity. Waste heat will be recovered from the engine to produce 9,000 pounds per hour of low-pressure steam. Emissions from the system will be well below local air emissions limits and the system will have a conversion efficiency of more than 65%.

Photo: groSolar Solar power is scalable—able to power anything from a small home to a multi-dwelling complex.

Photo: groSolar

Electricity generated by the new system will be distributed throughout the campus to meet part of UBC’s electricity demand. The steam produced will offset about 15% of the natural gas currently used by UBC for district heating.

UBC’s greenhouse gas emissions will be lowered by 4,000 tons annually. The city of Vancouver will supply wood fuel and local companies will supply tree trimmings and other urban wood waste, diverting such waste from the landfill. The project is scheduled for commissioning in the fourth quarter of 2011.

Pierre Ouillet, UBC’s vice president of Finance, Resources and Operations, calls Nexterra’s technology “a great fit with our clean energy and climate action goals.”

He credited the support from all project partners, including the Province of British Columbia, the federal government, City of Vancouver, FPInnovations, BC Bioenergy Network, and Sustainable Development Technology Canada.

“We are very pleased to see the commercialization of a new generation of biomass power systems happening in British Columbia,” says Harvie Campbell, chairman of the Clean Power Association of BC and executive vice president of Pristine Power. “With a 50% increase in fuel efficiency compared to conventional biomass power plants that use steam turbine technology, the Nexterra CHP system has the potential to become the new industry standard for biomass heat and power and has replication potential across BC, North America, and in export markets.”

Solar by the Sea
Seaside Market, an independent market in Cardiff by the Sea, CA, has installed a 3.8-kW solar system on its front awning to help offset its electricity consumption. Stellar Solar, a San Diego County-based residential and commercial solar PV design and installation company, put the system in. The system was funded in part by a grant from Cardiff 101 Main Street, which provides funds for improving storefront facades.

The solar installation is the first step in the market’s long-range goals for a rooftop installation expected to generate significantly more power. Market managers favor the installation for its visual appeal as well as its educational component, which is augmented by an interactive kiosk inviting visitors to learn more about solar power.

Seaside Market owner John Najjar says he is not only pleased to be taking a step toward reducing the market’s electricity consumption, but also to increase awareness about solar energy in the local community.

Princeton Properties Management and ING Clarion Partners installed a second-phase solar energy system on its apartment community in Salem, MA. The Princeton Properties apartment community in Salem is one of the largest single-site solar projects in the state’s history.

Two additional solar projects have been installed by groSolar, including a 200-kW solar installation at Boston Road, a multi-family housing community in Billerica, MA. The second is an 82-kW solar installation at Princeton Commons, a multi-family housing community in Chelmsford, MA.

Wolfe, CEO of groSolar, cites the projects as an example of how solar is scalable, able to power anything from a small home to a multi-dwelling complex.

After being satisfied that the company would be able to develop environmentally sustainable housing while supporting the bottom line, Princeton Properties managers decided to give the project the green light. groSolar has estimated that the use of solar energy at the two newest installation properties would save $53,000 annually in electricity costs.

Chris Stewart, vice president at real estate investment firm ING Clarion Partners, says the installation will not only enable the company to significantly reduce electricity expenses at its properties, but also minimize its carbon footprint.

The project will receive incentives and credits from the federal government and state-funded Commonwealth Solar, created by the Massachusetts Department of Energy & Resources and the Massachusetts Renewable Energy Trust to accelerate the use of solar electric projects in Massachusetts.

Author's Bio: Carol Brzozowski specializes in topics related to waste management and technology.