Last
month, the passage of H.R.
1424 – aka “Emergency Economic
Stabilization Act of 2008,”, included
a
five-year extension of the portion of the Energy Policy Act of 2005 granting a
tax deduction of up to $1.80 per square foot to building owners for “greening”
new or existing commercial buildings. The act also extends solar investment tax
credits to 2016 to businesses and public utilities as well as residential solar
installations (the $2,000 cap has also been removed). Not only
could this influx of cash help wind and solar companies, many analysts believe
that a commitment of this size and duration will allow the US to position itself
as a major player in the international solar and wind markets.
The
American Institute of Architects (AIA) also points to these deductions are
important for new “green building” because not only can they can help owners
recover some of the startup costs, but the five year extension encourages the
initiation of large projects that may take more than one or two years to
complete.
Imagine
a future where big energy users rely on their onsite power sources for primary
power, and use the grid as back up. A school district with it’s own wind
turbine perhaps, or a water utility that can draw enough power from it’s solar
system to run all it’s pumps and in-house software systems during the day and
using the grid only for less intensive, overnight demands. In fact, in
many parts of the country that future is already here.
In
2007, the Erie Community Unit School District No. 1 in Illinois became one of
the first school districts in the state move beyond the one turbine–one building
ratio. With the help of Johnson Controls Inc., Erie Community Unit School
District No. 1 was able to use one large turbine to power all of the buildings
within its district. Using one turbine, the district’s wind power project
supplies power to all six of the district’s buildings. The project consists of a
single 1-MW turbine able to generate twice as much energy as the one installed
at Bureau Valley. The district anticipates substantial savings by reducing
its dependence on power supplied by electrical utilities. Once the turbine is up
and running, it will supply the district with 100% capacity at least 39% of the
time. At 100% of its capabilities, the turbine can generate up to 1.2 MW of
energy. Over the project’s 30-year life span, Ryan expects the district to save
approximately $9 million. Once the cost of the project is subtracted from that
amount, the district should end up with a net savings of approximately $4
million.
And
in November 2005, the Idyllwild Water district became the first water utility in
the United States able to run its entire facility with solar power. Relying on a
44.1-kW solar array provided by WorldWater & Power Corp., the district runs
a 57-horsepower pumping system, including a water filtration plant and six
primary wells. The solar power system installed at Idyllwild addresses many of
the challenges that have thwarted widespread use of solar energy in the past.
Cost and space are not the only obstacles to be overcome. Until the Idyllwild
project, solar power played only a supporting role at most large-scale
facilities because of its relatively low output potential. By switching to
solar power, the district anticipates operating a system able to reliably and
efficiently deliver water to its customers, despite outside forces like
disruptions in service or prohibitive costs. With the WorldWater solar power
system, the district can run while disconnected from Edison’s power
grid.
We
all know the grid isn’t going anywhere. But in the face of increasing
infrastructure improvements (and their associated costs) and rising oil prices,
doesn’t it make sense to overhaul traditional notions of energy supply to
include onsite, renewable energy sources?