October 11, 2011

Solar@Work Offers Huge Discounts To Commercial Building Owners And Lease Holders

Posted by Steve Sacks under Building Operations, Energy, Finance, Free, Government, Green Economy, Incentives and Rebates, Make Money, Marketing Ideas, Photovoltaic, Save Money, Solar | Tags: , , , , , , , , , , , , |
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A new program in San Francisco, Solar@Work, offers discounts, and in some cases free installation, on solar arrays for commercial building owners and lease holders.  Almost any size business can qualify for the program that will lower energy costs for participants.  For businesses proactively addressing San Francisco’s required energy audits, this program requires a closer look. (For full analysis of San Francisco’s commercial building energy audit program, click here)

Solar@Work groups commercial building owners and/or lease holders together to reduce costs through economies of scale.  Participants generate the greatest savings on energy costs through the purchase of a solar array.  The cost of purchasing and installing a system can be prohibitive, so Solar@Work creates a discount on installation and financing through volume pricing.  A “traditional” solar lease is also available with no up front cost, but the savings on energy bills are markedly less significant.

The Collaborative Solar Procurement model created by the World Resources Institute allows the Solar@Work program to offer four financing options.  Owners can purchase systems at a discount, secure a solar lease, secure a capital loan, or finance through other options including power purchase agreements.

The goal is to collect enough businesses in the program to collectively generate 2 megawatts of power or more.  Applications are being accepted until October 31, 2011, and an informational conference call is scheduled for October 21, 2011.

The ideal applicants are owner/occupiers or long-term leasers whose available space on a roof or parking area is 5,000 square feet or more.

Solar City is the exclusive vendor for the program created by the World Resources Institute, the City and County of San Francisco’s Department of the Environment (SF Environment), in collaboration with the National Renewable Energy Laboratory (NREL), and Optony.

Solar City was selected through a competitive process to provide the installation services for the program.  The company anticipates hiring 400 new workers in the second half of 2011 including 100 in the Bay Area, partly due to Solar@Work.

Congratulations to WRI, San Francisco, and the other contributors to this program.  Solar@Work promises to be another great example of how sustainable development will lead a growth in the economy through reducing energy costs and increasing employment.

 

July 9, 2011

PACE Lawsuit Update

Posted by Steve Sacks under Energy, Finance, Finance / Mortgages, Government, Green Economy, Incentives and Rebates, Law, Legislation, and Policy, Solar | Tags: , , , , , , , , , , , , , , |
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As you will recall, the Property Assessed Clean Energy program allows residents to pay for solar installations through a tax assessment on their property.  Last year, the Federal Housing Finance Agency (FHFA) essentially stopped the program with a letter advising mortgage lenders that Fannie Mae and Freddie Mac would not purchase mortgages on homes that also have PACE financing.  California and eight other parties sued the FHFA to rescind its letter and change its policy.

The PACE lawsuit (Case Nos. 10-cv-03084 CW, 10-cv-03270, CW, 10-cv-03317 CW, 10-cv-04482 CW) continues with a possible end some time in the summer of 2012.  A trial date is set for April 30, 2012.  (click here for the Case Management Order).  Some of my previous coverage of the lawsuit can be found by clicking here. In the beginning of this year, the court asked the Attorney General of the United States to submit a Statement Of Interest offering its position regarding the PACE lawsuit.

Although the executive branch previously endorsed the PACE program, and the creative financing mechanism that is the cornerstone, the Statement of Interest evades the issue at hand (the subrogation of primary mortgages).  Instead, the DOJ argues simply that the the FHFA has authority to bring and defend its own lawsuits and the DOJ does not see a need or mandate to interfere with FHFA’s handling of the matter.  The DOJ then states its only area of concern is that the plaintiffs lack standing to bring the suit.  While plaintiffs may lack standing (I doubt it), the DOJ could have also offered analysis of the legitimacy of the program’s structure.

The parties are now heading to the discovery stage of litigation, but frankly there is nothing to discover.  As far as I can tell, there are really no material facts in dispute.  Either the FHFA is going to allow for PACE programs to move forward, follow the Department of Energy guidelines (Full Guidelines Here), and acknowledge the minimal risks involved.  Or, the FHFA will undermine one of the best modern approaches to nurturing mainstream adoption of sustainable development.

Unless Congress passes a law supporting PACE financing, the lawsuit will move forward, and frankly the prospects don’t look good for plaintiffs.  That means PACE programs will essentially become a great idea undermined by the inflexibility of bureaucracy.

 

December 14, 2010

FTW! Largest Municipal Solar Project In California Comes Online

Posted by Steve Sacks under Energy, Finance, Government, Green Economy, Law, Legislation, and Policy, Make Money, Photovoltaic, Risk Transfer, Save Money, Solar | Tags: , , , , , , , , , |
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Last week Mayor Gavin Newsom  and Recurrent Energy announced the completion of the Sunset Reservoir Solar Project.  We mentioned the story back when it started, and we’re glad to see it finished quickly! A year and a half is pretty good to install 24,000 solar panels (imagine 12 football fields) generating 5 megawatts of power (with some sources stating as high as 7 megawatts).  The energy generated can power 1,500 homes, but will be used instead by the city to power public transportation and city buildings.

The project is the result of a public-private partnership (P3) with Recurrent.  As a result, San Francisco owns the property, but leases the rights to operate the plant and sell the energy.  Under the current contract, Recurrent will sell energy to the city at $0.235 /kWh.  That price will allegedly save roughly $1 million per year in energy costs.  Through the P3 procurement method, San Francisco saves the up-front costs of implementing the system, and reaps the rewards of low cost sustainable energy.

And, let’s not forget.  The money paid to Recurrent stays right here in California.  The corporation was founded in California, pays taxes in California, and employs people in California.  71 general labor jobs – in a decimated construction industry – were created from this project.  30 percent of those jobs were for individuals from disadvantaged communities (Though they had to fight to keep those jobs).

This project looks like a win for proponents of sustainable energy, public-private partnerships, and green job promotion (The CGBB fits into that category).  It also looks to be a win for San Franciscans who will instantly see savings in energy costs to public services.

In the meantime, congratulations to Recurrent Energy and San Francisco.  The Sunset Reservoir Solar Project is currently the largest municipal solar installation in the state.  We hope more of these projects are built immediately all around California and the nation!

San Francisco Press Release Here

(For those of you wondering, “FTW” stands for “For The Win”)

 

March 1, 2010

Clean Tech Event – San Francisco March 17

Posted by Steve Sacks under Carbon, Conferences / Conventions / Events, Energy, Finance, Government, Green Economy, Innovators, Law, Legislation, and Policy, Make Money, Marketing Ideas, People, Research, Sustainable Community | Tags: , , , , , , , , , , , , , , |
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My friends over at the Kellogg Alumni Club are at it again with another great clean tech event. On Wednesday, March 17 the group will host a panel discussion on two emerging clean industries: transportation and energy – including nuclear power. Can that, too, be clean?

The event is open to the public, and it will be a great way to learn and network with leaders. Ideas will definitely be flowing. The top-shelf presenters and panelists include:

Rod Diridon - Clean Tech Rail Pioneer, Executive, Political Leader, and High-Speed Rail Authority Board Member
Bob Garzee - Clean Tech Automotive Transportation Pioneer and Entrepreneur
Jeff Hamel - Energy Researcher and Clean Tech Advocate

Networking, passed hors d’oeuvres and a cash bar start at 6pm, and the presentations and discussion will go from about 7 – 8:30 pm. You couldn’t ask for a better setting: the beautiful McCormick and Kuleto’s – right on the water. See you there!

Click Here For More Information And For Reservations.

Also, remember Kellogg’s San Jose clean tech event with different panelists, Thursday, April 1. Click here for more information on that!

 

July 9, 2009

Residential Solar Leases

Posted by kevinjeong under Building and Design, Energy, Finance, Green Economy, Lease | Tags: , , , |
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Solar power is on everyone’s mind these days.  We still remember the exorbitant oil prices of the summer of 2008, when oil reached it’s peak of over $150 a barrel.  However, for many, solar energy, much like hybrid cars, are a cost-prohibitive luxury.

SolarCity, a California solar provider, hopes to change all of that.

Instead of having consumers front the cost of the equipment and installation of solar systems, which can range anywhere from $50 – $75,000,  SolarCity , with financing from U.S. Bancorp,  will front the cost, and the consumer pays a set monthly lease.  In a way, this is similar to a power purchase agreement used by energy companies and local governments.

On average, a consumer is estimated to save about 10 – 15% of their current monthly energy bill.

Read the complete article here.

 

May 20, 2009

San Francisco Finally Signs 5 Megawatt Solar Power Purchase Agreement

Posted by kevinjeong under Energy, Government, Green Economy, Law, Legislation, and Policy | Tags: , , , , |
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A couple of months ago, I discussed the possibility of San Francisco entering into a solar power purchase agreement with a private solar power firm.  (Click here)

On May 15, Mayor Gavin Newsom signed an ordinance that would enable Recurrent Energy, a San Francisco distributed power firm, to install roughly 25,000 solar panels on top of the Sunset Resevoir.  The project was approved by the Board of Supervisors with a vote of 7-to-4 on May 12.

This plan will more than triple city’s solar energy output by adding about 5 MW of solar PV power.

Once completed, it will be among the largest municipal solar projects in the United States.

The 25-year contract between the city and Recurrent Energy allows the city to purchase the energy at a set rate, with the option to purchase the solar PV system when the contract expires.

Proponents of the partnership between the city and solar company state that a public-private partnership is the only way to complete such a project.  Opponents contend that the non-negotiable contract may be detrimental to the city should the cost of solar equipment and installation go down in the future.

(Click here for more information)

 

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