The First Facility Management Blog

Solar and wind power can supply the vast majority of North Carolina’s electricity needs, according to a report released last week by the Institute for Energy and Environmental Research (IEER). Combined with generation from hydroelectric and other renewable sources, such as landfill gas, only 6% of electricity would have to be purchased from outside the system or produced at conventional plants, states the report. It is titled, “Matching Utility Loads with Solar and Wind Power in North Carolina: Dealing with Intermittent Electricity Sources.”

“Even though the wind does not blow nor the sun shine all the time, careful management, readily available storage, and other renewable sources can produce nearly all the electricity North Carolinians consume,” said the study’s author, Dr. John Blackburn, who is Professor Emeritus of Economics and former Chancellor at Duke University.

“Critics of renewable power point out that solar and wind sources are intermittent,” Dr. Blackburn continued. “The truth is that solar and wind are complementary in North Carolina. Wind speeds are usually higher at night than in the daytime. They also blow faster in winter than summer. Solar generation, on the other hand, takes place in the daytime. Sunlight is only half as strong in winter as in summertime. Drawing wind power from different areas—the coast, mountains, the sounds or the ocean—reduces variations in generation. Using wind and solar in tandem is even more reliable. Together, they can generate three-fourths of the state’s electricity. When hydroelectric and other renewable sources are added, the gap to be filled is surprisingly small. Only six percent of North Carolina’s electricity would have to come from conventional power plants or from other systems.”

Dr. Arjun Makhijani, President of IEER, explained why his center published Dr. Blackburn’s report, “This is a landmark case study of how solar and wind generation can be combined to provide round the clock electric power throughout the year. North Carolina utilities and regulators and those in other states should take this template, refine it, and make a renewable electricity future a reality.” Dr. Makhijani is the author of the 2007 book, “Carbon-Free and Nuclear-Free: A Roadmap for U.S. Energy Policy.”

To request a PDF of the report, which contains an executive summary, send an e-mail to avazquez@groupc.com.

Borrego Solar Systems, Inc., a designer and installer of grid tied solar electric power systems, recently introduced a financing option for schools, companies, and government organizations that want to begin using solar energy to power their facilities. Borrego’s power purchase agreement (PPA) program provides organizations an avenue through which to finance a solar project without having to assume the up-front costs of the project or work with a third-party financier.

Veritable Vegetable, a distributor of certified organic produce, installed a 106-kW solar electric system on its refrigerated warehouse in San Francisco.

With $30 million backing from a PPA fund launched by Walsin Lihwa, a current investor, Borrego is positioned to develop and finance more than $100 million solar projects over the next 12 months. PPAs are programs by which a third-party company (in this case, Borrego) pays for the installation of the solar system, and then “sells” the power back to the customer. For organizations that want to incorporate solar energy but can’t secure funding from internal budgets or a bank, a PPA can offer a solution. Through its PPA service, Borrego is now offering financing in addition to its established design, engineering, and procurement services..

Based in San Diego, CA, with a New England headquarters in Lowell, MA, Borrego Solar offers its services in California, New England, New Jersey and New York.

“We continue to see significant demand for grid tied solar systems, but a common concern for many customers is the lack of financing available to design, install and maintain the system,” said Mike Hall, CEO of Borrego Solar. “And though the PPA is not a new concept, some customers don’t want the hassle of finding a third-party financing option or the restriction of having to deploy the technology chosen by the PPA provider. By choosing a Borrego PPA, customers deal with one company for system financing, design, construction, operation, and maintenance. As a result of this program Borrego is now able to offer our customers a ‘one stop shop’ for all solar energy services—all without the technology lock-in of other programs.”

A recent report from Lux Research, an independent research and advisory firm, concluded that lack of standardization, low production volumes, and formidable competition from building applied photovoltaics (BAPV) will hinder broader adoption of building integrated photovoltaics (BIPV) through 2013.

An example of BIPV, which is installed at an REI store in Boulder, CO. (Photo: Scott Dressel-Martin)

BIPV are PV components that replace the look and function of a primary building material, and are sold as a single unit. Compared with BIPV, BAPV encompass a broader class of building mounted photovoltaics and include some traditional roof mounted PV systems.

Entitled “Laying the Foundation for Building Integrated Photovoltaics,” Lux’s report sought to provide insights for building materials, chemical, and photovoltaics entities on: opportunities for entering the market; likely candidates for strategic partnerships; market developments and new technologies that will foster success; and how conventional and thin-film solar technologies will compete in specific applications

“The market may be too small to be a central interest to big players, but we see key opportunities for technology providers that can deliver BIPV components with an aesthetic differentiation—as opposed to a cost differentiation,” said Johanna Schmidtke, a Lux Research analyst and lead author of the report. “That also applies to architects and building envelope specialists who can distinguish their own businesses, while raising awareness of BIPV.”

The report taps Lux Research’s database of solar PV technology providers and installations for details about the 81 companies engaged in BIPV work. It includes intelligence gathered through 29 additional interviews with PV technology providers, module/system developers, PV installers, building suppliers, and architects to offer a comprehensive view of the BIPV market. Findings included:

High price points and a lack of standardization are slowing adoption. Highly customized products and low production volumes are putting a drag on BIPV’s claim that it lowers costs by streamlining installation of building product and PV technology. High price points will limit growth to $5.7 billion over 694 MW in 2013, signifying just 3.7% by volume of the overall solar market.

Improved regulation, building services, and materials could all boost demand. BIPV-specific subsidies and aesthetics have driven growth more than economic viability. But standardized regulations covering BIPV’s dual role as building component and PV technology could control customization issues, and reduce the technology’s prohibitive price points.

BAPV will dominate for the foreseeable future. BIPV currently wields aesthetic and subsidy-based advantages over BAPV retrofits. But PV module manufacturers are shoring up the aesthetic gap, which will further pressure BIPV players to decrease the price premium they exact.

“BIPV is nearing a crossroads,” said Schmidtke. “It will either continue to grow slowly as a highly specialized, aesthetic niche market, or bridge the gap between the PV and building industries. The latter path will require industry standards, as well as innovation and investment. But it also offers genuine growth opportunities for well positioned parties.”

Growth Of Solar Energy Industry Overall

Meanwhile, solar energy deployment increased at a record pace in the United States and throughout the world in 2008, according to another industry report. On March 19, the Solar Energy Industries Association (SEIA) released its “2008 U.S. Solar Industry Year in Review,” which

The SEIA report found U.S. solar energy capacity increased by 17% last year.

reaching the equivalent of 8,775 megawatts (MW). The SEIA report tallies all types of solar energy, and last year the United States installed 342 MW of solar photovoltaic (PV) electric power, 139 thermal megawatts (MWTh) of solar water heating, 762 MWTh of pool heating, and 21 MWTh of solar space heating and cooling.

The growth rate was highest for grid connected PV electric systems, which increased by 58% to a total of 792 MW. California dominated this category, installing 178.6 MW of grid-tied PV, but the largest PV system, at 10 MW, was built in Boulder City, NV. Meanwhile, domestic PV manufacturing capacity increased by 65%, and preliminary estimates peg the total U.S. PV manufacturing capacity at 685 MW per year as of the end of 2008.

SEIA estimates that 342 MW of PV were installed throughout the United States in 2008, and although Solarbuzz LLC reached a higher number of 360 MW for its annual PV industry report, that growth rate is still dwarfed by the world’s fastest growing PV markets, namely, Spain and Germany. According to Solarbuzz, Spain added 2,460 MW of solar PV power in 2008, while Germany added 1,860 MW of PV power, leaving the United States in a distant third place. Solarbuzz estimates the global market growth at 5,950 MW in 2008. World PV production reached 6,850 MW per year in 2008, a significant jump up from the capacity of 3,440 MW per year for 2007. Contributing to that rapid growth, the production of thin-film solar modules more than doubled, reaching 890 MW per year by the end of 2008.

SunPower Corp., a manufacturer of high-efficiency, solar cells, solar panels, and solar systems, has completed construction on a 305-kilowatt SunPower solar power system atop the roof of the Crowne Plaza Hotel in Alice Springs, Northern Territory. Invest North Pty Ltd. is the owner of the project, which is the largest roof-mounted solar power system in Australia.

“We are proud that Invest North chose SunPower’s high-efficiency solar panels to help power its flagship hotel in Australia,” said Bob Blakiston, managing director of SunPower Australia. “This installation is a testament to the growing adoption of solar energy on commercial and public buildings. The Crowne Plaza Hotel’s solar electric system is expected to provide between 40 and 80 percent of the hotel’s power requirements, depending on the time of year.”

The Department of the Environment, Water, Heritage, and Arts (DEWHA) provided financial backing for this project as part of Australia’s AUD $94 million Solar Cities Program.

“Through the support of the Rudd Labor government, projects such as this set a clear standard for what is expected of Australian companies when reducing their environmental impact,” added Blakiston.

SunPower entered the emerging Australian solar market in 2008, with the acquisition of Solar Sales Pty Ltd. Solar Sales had partnered with SunPower for several years prior as a leading systems integrator and product distribution organization.