SunPath Solar Blog

For decades we have heard that the Earth is, “running out of oil,” and that our grandchildren’s generation will not have enough oil left to maintain a stable economy. There are many factors and statistics that point to the validity of this claim, but the reasons to wean this country off of fossil fuel-based energy have expanded into many other categories such as safety and environmental protection.

Renewable energy includes solar power, wind power, geothermal energy, and biomass. These sources are classified as being either completely renewable, sustainable, or both without causing significant harm to the environment.

While there is a very good chance that the world’s oil supply as we know it has a short life ahead of it, there are a few fossil fuel alternatives. Supplies such as tar sands in Canada are still available, but at three times the cost of oil from Saudi Arabia. This price increase is one of the first things to get Americans interested in finding alternative sources of energy, and with trends moving towards environmental sustainability, destroying our reliance on oil is a very popular idea.

Over the last few centuries there have been dozens of devastating fuel-related disasters, and recent oil spills have garnered much-needed attention for the renewable energy cause.

BP Oil Spill: In light of the recent massive oil spill in the Gulf of Mexico, the Obama Administration has begun encouraging Americans to kick the oil addiction, and with good reason. More severe and large-scale oil disasters such as the Exxon Valdez spill, as well as the dumping of oil by Iraq during the Gulf War have not been forgotten, but the BP spill happened to occur in a time when oil companies are already trying to clean their dirty reputations

Not only did eleven employees die in the blast, but the astronomical amount of oil that was pumped into the gulf each day has severely diminished the beaches, ecosystem, and fishing economy of the gulf.

West Virginia Coal Mine Disaster: In April of this year, another fuel-related catastrophe occurred, where 25 miners in West Virginia died at the explosion of a coal mine. This is the largest coal mine catastrophe to occur in the United States in many decades, and it has opened the eyes of many Americans to the dangerous ways we harvest our fuel.

And let’s not forget…

The 1986 Chernobyl nuclear plant fire and explosion killed 31 people, and forced over 135,000 people to evacuate the 30 km radius surrounding the accident. The long-term health effects have included numerous birth defects, increases in leukemia and thyroid cancers, radiation poisoning, genetic mutations and more. It is estimated by local governments that up to seven million people were affected by the accident.

While nuclear energy is considered an alternative, renewable energy source to some, the process is quite dangerous, and at times, extremely detrimental to surrounding areas. It has been reported that nearly 2/3 of all nuclear-related accidents have occurred in the United States, though none of them have resulted in fatalities. This is yet another reason why clean, renewable, sustainable energy should be the goal of energy harvesters across the globe. The United States is home to about 5% of the world’s entire population, and in 2000 it was reported that Americans consumed more than 25% of the world’s total oil consumption, and that number has only increased since then; we now consume about 19.4m barrels per day. President Barack Obama has called out to Americans to end the oil addiction for the sake of the environment, ecosystem, ozone layer, future generations, and the health of our home in general.

Whether we will run out of fossil fuels and oil is debatable, but the negative effects of oil consumption on the environment is not. The time to switch to clean, renewable energy is upon us, and we must all step up to the challenge.

Are you fed up with paying the utility company for overpriced energy? Alternatives exist and they have numerous benefits for you and your family. Integrating solar panels on your house will change the way you think about energy forever.

San Diego has been a leader in solar energy for quite some time, and California as a whole has been far ahead of the pack for all kinds of renewable energy. Perhaps it is the distance from the bustle of New York City and the drama of Washington D.C., but the west coast of America seems to be paving the way for renewable and sustainable energy, environmental awareness, and progressive control of climate change. From recyclable and organic products to sustainable agriculture, California’s impressive attitude towards environmental awareness is a game-changer.

7. Anyone thinking of installing solar systems in their homes or business properties can take advantage of a wide array of government and state-sponsored incentives that were designed to promote the use of renewable energy resources.

Making changes in your business can significantly reduce your carbon footprint, and encourage others to follow suit. Helping protect our planet is everyone’s responsibility, and using solar energy is a great way to make a difference.

The government, both on the state and federal level, is putting a considerable amount of effort into promoting energy efficiency in American homes and businesses. One of the ways they’re doing so is by offering incentives for individuals and companies to upgrade their properties with the installation of energy conservation systems, which includes solar-thermal and solar electric systems. Solar incentives vary from state to state, but regardless of where you live, there’s likely to be an incentive program that fits your needs.  Here are some of the basic solar incentives that are currently offered and how you can take advantage of them.

Section 136

Section 136 of the U.S. Code says that “energy conservation subsidies provided by public utilities” are non-taxable. The term “energy conservation measure” is used throughout many of the laws pertaining to solar incentives offered by the federal and state government. It is a term that included solar incentives and also any modification designed to reduce the consumption of electricity or natural gas. Buildings covered under this section include apartments, houses, condominiums, mobile homes and similar residential businesses.

Energy Efficient Mortgages (EEMs)

If you’re a homeowner, you can take advantage of energy efficient mortgages (EEMs) to finance the installation of a brand new solar energy system in your house. The federal government is providing these special loans to the public via the Federal Housing Authority (FHA) and the Veterans Affairs (VA) loan programs. An EEM basically credits the energy efficient upgrade in the home’s mortgage itself, stretching the loan’s debt-to-income ratio, thus allowing borrowers to qualify for larger loans and giving them a cost-effective way to make their homes more energy efficient.

There is also an incentive for lenders here. Those who show that they know how to write EEM loans and give out a certain amount of them per year can use the federal Energy Star brand to advertise themselves as Energy Star partners who can provide clients with EEMs.

Tax Deduction for Commercial Buildings

The Energy-Efficient Commercial Buildings Tax Deduction is part of the Energy Policy Act of 2005, and it provides an incentive for companies to upgrade their commercial buildings with new energy efficient systems including solar energy upgrades. The incentive was extended through 2013, and it lets companies receive a tax deduction of $1.80 per square foot on new or old properties by installing energy efficient upgrades that decrease the building’s net energy consumption costs by 50% or more. Now, if a building does not meet the 50% mark, it can still qualify for a partial tax deduction. If, for example, a building installs solar panels that reduce energy costs by at least 16.66%, it can still qualify for a deduction of $0.60 per square foot. 

Solar Incentives in the Federal Stimulus Package

The American Recovery and Reinvestment Act of 2009, more commonly known as “the stimulus package”, allows for the modification or extension of existing renewable energy incentives. In terms of solar incentives, the ARRA extends the duration of 30% tax credits for solar energy by eight years.

Assembly Bill 811

The provisions of Assembly Bill 811 (AB 811) are part of the measures taken by the state of California to meet the goals set by the Global Warming Solutions Act of 2006. Other states have takes different measures to try to live up to the Act; California’s AB 811 is presented here as one example among many of the way states are using financing methods that reward homeowners who invest in cleaner energy for their homes.

AB 811 essentially authorizes cities and counties in California to designate areas where home owners who want to install energy saving systems in their homes can enter into a special financing program. To be eligible, homeowners must install energy saving upgrades that are permanently attached to the property (upgrades such as solar panels, for example). The financing program gives homeowners access to low-interest loans, which can be repaid as an item that appears on their property tax bill. In this way, the program lets borrowers avoid having to take on the weight of the upgrade’s initial investment cots. Furthermore, the loan is attached to the upgrade, which means the payments get passed on to the new owners if the property gets sold and responsibility for the loan gets transferred at escrow. Right now, interest rates for AB 811 loans are at 7% amortized over 20 years.

Resources:

http://www.dsireusa.org/incentives/index.cfm?State=US&ee=1&re=1

http://www.energy.gov/taxbreaks.htm

Solar research as we know it today began in the early 1950s at Bell Laboratories (now AT&T labs) however it did not receive serious attention until the 1970s during the oil embargo which caused oil prices to peak. Today solar power is all around us, from calculators to heating nearby buildings to satellites in space. As an abundant and relatively untapped electrical resource utilizing the sun’s natural energy is an appealing concept both for the environment and financially. Although the goal of a solar cell is clear, to convert sunlight into electricity, few truly understand how solar power works. Before delving into the mechanics of solar power, it is important to understand more fully its main component: solar cells.

What are solar cells?

Solar cells or photovoltaic cells are generally made up of silicon crystals.  Silicon crystals are critical to the structure of a solar cell because of its unique anatomic construction. A silicon atom has 14 electrons on 3 different shells. The most exterior shell is incomplete, having 4 of the necessary 5 electrons. To fill the remaining 4 electron spots, a silicon atom will bond (also can be thought of as sharing) with neighboring silicon atoms until it fills its exterior shell. This bonding is how silicon crystals are formed.

Pure silicon crystals are not good conductors of electricity. Electricity is created when electrons break off from their atoms leaving behind a hole and then float around until they find a new hole to fill. As a result of silicon bonding with its neighbor, very few electrons actually break free and create energy. It is for that reason that scientists add impurities to the silicon to make it a more viable conductor. This process of purposefully adding impurities is referred to as doping.

The goal of doping is to create more free carriers or electrons that will break off and create an electrical current. Two impurities are added, boron and phosphorous and can be considered complimentary additions. Boron is added to the bottom layer to create a positive charge (called p-level or p-type) while phosphorous is added to the top layer to cause a negative charge (n-level or n-type). Boron has 3 exterior electrons rather than the 4 found in pure silicon which causes the bottom layer to have an absence of electrons or free holes. Phosphorous has an extra electron which means it has one free unbounded electron or free carrier. The space between the two layers is where the electrical movement takes place and creates an electric field that restricts the travel of electrons from the positive layer to the negative layer. The electrical field causes all the free carriers from the negative layer want to fill all the holes on the positive layer. It is precisely at that movement when energy is produced.

What happens when solar cells are struck by sunlight?

When a solar cell absorbs sunlight, it affects the electrons which bind the silicon atoms. Although there are many types of sun rays, solar panels only absorb photons.  The photons create an influx in energy that releases the electron from its original location and therein creating a current. However, the electric field between the positive and negative currents prevents this current from going from the positive layer to the negative layer. To trap this current, an external circuit of wires along the top layer (the negative layer) will connect the two layers. The electric field between the two layers is what causes the voltage. This completed circuit creates a usable power source.  

How solar energy is used:

Solar panels are many solar cells or modules combined together to form a solar panel, generally 36 cells are connected. Several solar panels are needed to convert sunshine into a direct current (DC) of electricity. This current then enters an inverter which transforms the DC current into what is used by most home or office appliances: 120-volt AC. Once converted, the AC current is then sent to the building’s utility panel which disperses the electricity throughout the building. Excess electricity can be stored in batteries which allow power to be used when there is no sunshine available. The utility grid can be accessed at times when the batteries are empty and there is no sunshine to refill them. Likewise, if properly connected to the utility grid and the batteries are full, spare electricity can be sold to the utility grid. This push-pull system with the utility grid ensures that you pay only for actual energy used. For example, if you exported a large amount of energy back to the grid and then only accessed the utility grid for a small amount of electricity, you could have a net gain. A utility meter measures how much energy is used and how much is sent back to the utility grid. This back and forth is called “net-metering”.
 

When it comes down to it, solar energy is the ultimate power source, since everything on the earth owes its existence to the sun. As we reach the end of our oil reserves, deal with the problematic concerns of global warming and pollution, solar energy gains prominence. Once labeled as a pipe dream, solar energy is being touted by governments, industries and homeowners as a practical solution to our energy needs. Here are 10 benefits of solar energy.

1.  Environmental

Solar gets as green as you can get. Solar energy is sustainable and renewable; all you have to do is soak up the sun. It doesn’t contribute to global warming, nor does it contaminate the air with pollution and toxins such as carbon dioxide. Solar energy used by homes allows homeowners to buy back energy credit, turning back the energy dial to virtually zero.

2.  There’s money at stake

Besides being one of the most plentiful green energies there is, solar energy can also be a source of jobs and commerce. In a declining economy, there is money to be had by turning our energy resources over to the sun. Solar companies are creating jobs in areas where employment is otherwise difficult, creating opportunities for all.

3.  Economical

Although there are significant start up costs to the investment of the infrastructure, solar electricity is much cheaper than buying it from the electric company and the savings are continual. The start-up costs will eventually be absorbed. Costs are also coming down due to government tax incentives, improved technology and a renewed interest in solar energy.

4.  Reliability

There are no moving parts to solar panels. They just sit there and absorb light, so there are fewer maintenance costs. Most people can generate an easy 1000 hours with little or no maintenance.

5.  Silence

Solar panels make no noise when collecting energy. Sunlight isn’t loud. No other energy sources are completely silent.

6.  Live off the grid

Although it may take some energy conservation on your part, solar energy can allow you to live completely off the grid. Live self-sufficiently and never give the electric company another dime. Considering the increasing costs of electricity, this is a seriously appealing incentive.

7.  You can sell it

Excess electricity that you produce but don’t use can be sold. Most homes or businesses use solar to supplement their electrical costs, selling hours to the electric company so there is virtually no bill.

8.  Tax credit

Most state governments as well as the federal government offer solar tax incentives to convert to solar energy. This drives the cost down and makes solar power a more viable opportunity. Thanks to Obama’s drive to rebuild a green America, there has never been a better time to invest in solar energy.

9.  Constant evolution

The science of solar energy is constantly improving, giving you more for your investment. On average, solar panels increase their efficiency by an amazing 50% every year.  The longer you have your solar panels, the more efficient they will become.

10.  Lowers our dependence on foreign oil resources

The more we use solar energy, the less oil we’ll use. This puts America’s energy reserves back at home so we can be more self-sustaining and efficient. As we utilize solar power and rely less on depleting oil reserves, we’ll be on our way to energy independence. Most oil reserves are in the Middle East where chaos is increasing exponentially. Oil prices will continue to rise, but the sun will always be there, providing energy that can be gathered and put to use in our everyday world.

In July, San Diego will roll out a new program that will allow the average home owner to add solar power to their house under California’s new AB 811 initiative. 

California’s AB 811 program, which was approved last July, was designed to allow property owners to finance the installation of renewable energy systems and have the financing incorporated into their property tax payment.  The Solar Roof Program is the pilot program for a large range of renewable energy programs to be adopted within San Diego.

Contact SunPath Today to Find Out More About AB 811

San Diego is one of the first large U.S. cities to put AB 811 into effect.  There have been other cities, such as Palm Desert, with their Palm Desert Energy Independence Program, to put AB 811 in place, but the San Diego solar market is eight times larger than Palm Desert which means that San Diego will be taking a large step which will hopefully inspire other large cities to follow.

Essentially, the Solar Roof Program allows owners to install solar power systems on their homes and add the payment to their property tax payment with one of the big incentives being that the payment will be transferred to a new owner in the event the home is sold.  Right now, if a home owner wants to purchase a solar power system for their house, they have a few different options.  They can take out a home equity loan or a line of credit, use existing credit cards, or utilize their personal savings.  With a solar power system running anywhere from $25,000 to $50,000+, these options may be less than ideal, and all of these options do not allow the home owner to transfer the cost of the unit once the house is sold which leaves them paying for a unit they no longer own and from which they no longer benefit.  Of course, a solar system does increase the value of a home, so in the event of a sale the owner may be able to recoup some of the system costs.

With the cost of the solar power unit incorporated into the property tax payment, the owner is able to spread out the cost of the unit over 10 to 20 years while receiving the benefit of a lower utility bill and then transfer that savings to the new owner in the event of a sale of the property.  If the owner stays in the home past 10 to 20 years, he will have paid for the system and then be able to continue to reap the benefits of a lower energy bill.

The Solar Roof Program, according to Erik Caldwell, policy advisor to Mayor Jerry Sanders, eases “barriers to entry to those renewable energy markets.”
                                       
There are many benefits for putting a solar power system on your home.  The most noticeable and obvious benefit is a lower utility bill, both current and future.  Electric rates have made a significant jump since previous years and experts say that the rates will continue to increase in the future.  Solar power is significantly cheaper than electricity power especially when the cost is spread over a long period of time. 

On top of the savings benefits, a more macro benefit for switching to solar power is the environmental impact solar energy has.  Going solar will reduce ones consumption of fossil fuels and decrease emissions of greenhouse gases.  In other words, going solar will reduce your carbon footprint.

San Diego will see an economic benefit from the implementation of the Solar Roof Program.  Ultimately, the program will create more demand for solar power installation which will in turn create more jobs in the solar industry.  Currently, when energy is purchased off the grid, the energy and the jobs associated with that energy could come from other cities which are oftentimes hundreds of miles away.  The jobs created with the installation of solar power systems would create and keep jobs here in San Diego.

As far as the government’s involvement in this program, the program will allow San Diego to take a back-seat approach which will benefit the purchaser because it will open the market for consumer competition.  It is up to the home owner to decide what type of system they will install and who they will get to install it.  With this back-seat approach, then, the marketplace, not the city, will dictate the price. 

According to Caldwell, “when you’re dealing with a municipal utility you’re going to have a lot of regulations and additional costs associated with government.  That is one of the reasons that we would like to operate our program outside of city government.  There are greater efficiencies in the private sector than can be found in government.” 

The Solar Roof Program is just the initial stage in the ways San Diego plans to take advantage of AB 811 in order to implement a number of energy efficient programs.  The first cycle of the Solar Roof Program will start with a goal of 150 to 300 homes obtaining San Diego solar energy systems by the fall of 2009.  After about a year, the plans are to expand into other renewable energy markets, such as solar hot water heating, wind power, and fuel cell energy.  In the future, a home owner will have the option to choose which renewable energy source they would like to take advantage of under AB 811. 

“If you guys pull this off, you would have trumped the cities who stand as the most progressive on green issues, like Santa Monica and Davis.  That is a very smart move” said Vincent Battaglia, co-owner of Renova Energy Corp. of Palm Desert.

With San Diego as a renewable energy model, hopefully, more cities will follow in its footsteps and adopt similar energy efficient programs under the AB 811 initiative.  It is solar power today which will hopefully lead to an energy independent tomorrow.

There are many benefits to investing in a solar energy system for your home or business. A solar energy system can save you a considerable amount of money over the years and is one of the most significant ways in which you, as an energy consumer, can make a positive impact on the environment. Switching to solar energy reduces carbon emissions and noise pollution. And there is also the long-term savings on repairs to consider. Photovoltaic power systems require very little maintenance and each lasts anywhere from 25 to 40 years.

From Abu Dhabi to California, engineers, entrepreneurs and scientists from all over the world are working on designing the eco-friendly city of the future, and all of their designs have one thing in common: solar energy as the primary source of power. The more you look into it, the more you start realizing that solar energy will play a central role in our efforts to end our dependence on oil and build towards a cleaner and more sustainable way of living.

Full blown energy-efficient, solar utopias are still a ways away, however. The switch to alternative energy starts with individual consumers. But if solar power is the way of the future, why aren’t more people jumping on the bandwagon?

There are many reasons, to be sure, but the considerable size of the initial monetary investment involved is certainly one of the main ones. For many people in America, and especially in these dire economic times, investing in a solar energy system is simply not on their list of priorities. With home foreclosures on the rise and the real estate and loans industries spiraling after the bubble burst, it comes as no surprise that many homeowners are cutting back on expenses.

But installing a solar energy system is actually one of the few home and property investments that’s actually guaranteed to add long-term value to your home. The problem is that people don’t tend to think in the long term. They think in the short term, and in the short term, money looks scarce and volatile.

To give consumers an added incentive to invest in solar energy, the state has been working on program initiatives that reward people who install solar power systems in their homes or commercial properties. In California, the California Public Utilities Commission started its California Solar Initiative program in 1998, and for 10 years it has been working to motivate people who choose to put their money in solar energy systems.

The program began by offering rebates to consumers who owned small energy systems. In 2001 it expanded its rebates to larger systems (those over 30 kW). Over the ensuing years, the California Solar Initiative continued to grow, getting a special PR boost in 2004 when governor Arnold Schwarzenegger announced the Million Solar Roofs program, designed to promote the installation of solar energy systems throughout the state. The program took off in 2006 and has significantly increased the amount solar power harvested and used in California.

In the first month of 2006, the CPUC sat down with the Energy Commission to determine the course of the California Solar Initiative Program through the year 2016. The money allotted for the program for 2007-2016 was $2,167 million.

We are now just getting into 2009, and some new solar incentives have come about in the past year for those property owners with enough capital to invest in a solar energy system. For consumers with solar energy systems that are smaller than 50kW, the California Solar Incentive Program offers an up-front, all-at-once incentive payment. The amount that consumers get depends on the expected performance of their particular solar unit.

This is called an Expected Performance-Based Buy-Down, or EPBB. The expected performance of a solar energy system is determined by examining the system’s equipment ratings as well as the manner of its installation. Things like a system’s geographic location, tilt, and shading are factors that can affect its efficiency. The better a system’s expected performance is, the more money the owners will receive from the incentive program.

Owners of systems bigger than 50kW get their incentive pay over a period of five years, in what is called a Performance Based Incentive program. After 2010, systems over 30kW will be made to take the PBI instead of the EPBB. More details about each of these programs can be found at www.gosolarcalifornia.org.