Pennsylvania’s two energy giants—natural gas and nuclear power industries—have been pitted against each other in the debate over the state’s proposed $500 million nuclear rescue package. Renewable energy advocates believe they hold the swing vote and are requesting a seat at the table to determine if this bill will pass. Let’s take a deeper look at the specifics of the plan and what it means for the energy industry moving forward.
Nuclear Rescue Plan in PA
The proposed $500 million Pennsylvania nuclear rescue plan will cost each state household about an additional $1.77 per month in increased electric rates. This new bill will require utility providers and other retail sellers of electricity to purchase half their power from zero-emission nuclear power plants. In addition, this proposed bill requires urgent action to avert closure of Exelon’s Three Mile Island Unit 1 Reactor.
Green Power Bills in PA
Philadelphia area legislators are set to introduce green energy bills that will increase the share of solar and wind power in the state. The green energy bills will help reduce carbon emissions by requiring renewable energy to make up 30 percent of all power sold in the state by 2030, up from the current law that sets a target of 8 percent by 2021.
“The time is now, while you’re talking about the nuclear bill, to start talking about where do we want to be by 2030 and 2050 in terms of solar and wind in Pennsylvania, because otherwise, we’re going to be left behind,” said State Rep. Steve McCarter, (D., Montgomery), who is sponsoring a house version of the legislation.
Environmentalists are Torn
Currently, Pennsylvania’s Alternative Energy Portfolio Standards require 18 percent of electricity be derived from renewable energy sources. Without this nuclear rescue package, some environmentalists fear that the closure of even one reactor will result in an immediate increase in gas-fired production, which would increase the state’s emission levels.
There are environmentalists who oppose this bill because it will not help increase renewable energy. “What we want is a climate bill that would put the state on track to decarbonize the power sector, not just a nuclear subsidy bill,” said Szybist, of the NRDC.
Interested in learning more about how renewable energy can help your business? As a Distributed Energy System developer, Intersect Energy has the expertise and servicesyou need to find solar power opportunities and capital.Contactus today! Don’t forget to stay up to date with all the latest news in the renewable energy industry by following us on LinkedIn.
According to the most recent Bloomberg New Energy Finance (BNEF) analysis, the levelized cost of electricity (LCOE) for lithium-ion batteries has dropped 35% since the first half of 2018. Even more shocking is its decrease since 2012—a whopping 76%—meaning renewable energy is going to start to give non-renewable power generation a run for its money. The renewable energy experts at Intersect Energy are here to further explain the most recent findings on renewable energy, and what it means for you and your wallet.
A Decrease in Price Means an Increase in Renewable Energy
Back in 2012, the cost of battery storage was a definite deterrent—at $800/MWh (megawatt-hour), it’s no surprise that renewable energy wasn’t the first choice back then. Now that prices have significantly dropped, all the way down to $187/MWh, it is safe to say that the electricity that is produced by renewables and integrated with batteries is a clean, affordable option, and will gain increasing popularity over fossil fuels.
Why There Has Been Such a Significant Decrease
The cost of lithium-ion batteries are not the only renewable energy input that has lower costs. In fact, according to Elena Giannakopoulou, head of energy economics at BNEF, the LCOE per MWh for onshore wind has decreased by 49%, solar by 84% and offshore wind by 56%. Giannakopoulou claims that this decline is occurring because of advances in technology, scale of economies, price competition and improved manufacturer experience.
How This Impacts You
Thanks to these recent findings and dramatic cost reductions across the renewable energy spectrum, it means that battery storage—combined with solar or wind projects—can now compete with coal and gas-fired generation. Even in markets without subsidies, this dynamic duo of battery storage and solar or wind will be capable of supplying enough dispatchable power. Plus, an Energy Innovation report recently stated that not only could wind and solar replace approximately 74% of the U.S. coal fleet, but that its customers will also enjoy immediate savings.
Ready to start reaping the many benefits of renewable energy? Contact the team at Intersect Energy today! Don’t forget to stay up to date with all the latest news in the renewable energy industry by following us on LinkedIn.
In a world that is becoming increasingly aware about climate change, the surge for renewable energy over the past two decades continues to increase. Just a few years ago, wind and solar technologies that were new and expensive are now the key to cost-competitive low carbon energy solutions. Finding cost-effective storage to keep up with the demands for renewable energy has become the next big challenge, and batteries have become the solution. Large battery installations are being built around the world, and they might end up in your neighborhood.
Batteries Just Got Cheaper
Batteries offer a viable solution for storing renewable energy, and fortunately—over the last year—the price of lithium-ion batteries has fallen by 35%. As the need for batteries increases, the cost of batteries continues to drop. This means it will be more cost efficient to store more solar and wind power. In addition, according to a new Bloomberg New Energy Finance report, the cost of wind in solar has dropped by approximately 10-24 percent since last year. This is a major win for renewable energy because it’s helping them compete with fossil fuel-generated power.
A Bright Future for Batteries
These new massive battery storage projects are already being built in places like Florida and California to replace natural gas, and many more are in the works. Florida Power & Light Company, a subsidiary of NextEra Energy, plans to build the world’s largest solar-powered battery. This new solar-powered battery will replace 1,638 megawatts (MW) of generating capacity of two aging natural gas power generating units with clean and renewable energy. This capacity will be equal to some 100 million iPhone batteries.
“This is a monumental milestone in realizing the full benefits of solar power and yet another example of how FPL is working hard to position Florida as the global gold standard for clean energy,” Eric Silagy, president and chief executive officer of FPL, said in a statement. This project is just one of the latest plans around the world for the development of these renewable generation systems.
The Increased Demand
The increased demand for battery storage is influenced by government policy. In states like California, Hawaii, Maryland, Massachusetts, Nevada, New Jersey and Oregon, they have adopted storage mandates and regulations. When businesses invest in these battery storage projects, federally a 30 percent Investment Tax Credit is available if it is associated with a renewable power generation project.
While the U.S. electric grid doesn’t necessarily need more storage now, with the increasing integration for wind, solar and other renewable energy resources, energy storage will become more important. If you’re looking to find solar power opportunities, Intersect Energy is here to help. Don’t forget to stay up to date with all the latest news in the renewable energy industry by following us on LinkedIn.
Nearly two years after Hurricane Maria’s devastation of Puerto Rico and being months without electricity, Puerto Rico has worked vigorously to move on from the disaster. As part of the rebuilding, Puerto Rico is striving to improve and strengthen their grid. Puerto Rico’s Senate has recently passed a bill to mandate that the islands electric system move towards 100% renewable energy by 2050. Before the bill is signed by Governor Rosselló, it is being sent to the House for reconciliation.
Throughout the creation of the bill, there was an open process that included several public hearings. Javier Rua-Jovet, Sunrun’s director of public policy in Puerto Rico, explains that there was a strong consensus to move forward with this bill following Hurricane Maria.
Once the bill is signed, changes will be implemented to the island’s utility grid. Puerto Rico Electric Power Authority (PREPA) has already prepared by issuing a draft plan to change the island’s main grid into smaller “mini-grids”, which will be largely powered by solar and storage. There will be eight “mini-grids” scattered throughout the island, and to operate they will require solar energy and solar storage projects.
Why the Change?
Puerto Rico has been devastated by a number of devastating storms. Hurricanes Irma and María forced PREPA to reconsider how it should operate in preparation for future events. Following a storm, these “mini-grids” are designed to operate in grid-isolated mode. This will help to protect the health and safety of people through the next hurricane.
The Move Towards 100% Renewable Goes Nationwide
Although this is just the beginning for Puerto Rico, governors from several U.S. states have also expressed their plans to move towards 100% renewable energy in the future. New Mexico has passed a bill mandating 100% zero-carbon electricity, and the bill is waiting to be signed by the governor. Puerto Rico and New Mexico are just two out of five states including Hawaii, California and Washington D.C., that have mandated a move towards 100% zero-carbon electricity and/or renewable energy by 2050.
Sunnova, the largest non-utility electricity supplier in Puerto Rico, supports this move towards 100% renewable energy. “Sunnova is thrilled that Puerto Rico is joining Hawaii, California, Washington D.C. and New Mexico in their commitment to 100% renewable energy,” stated Meghan Nutting, the executive VP of policy and communications for Sunnova. “Given the abundance of sun on the island, we believe that solar will be able to play a significant role in meeting the 100% goal.”
This mandate in Puerto Rico is a strive towards a renewable energy future. The renewable energy experts at Intersect Energy, are committed to finding and implementing new solutions to reduce our environmental impact and move towards a renewable energy future. Don’t forget to stay up to date with all the latest news in the renewable energy industry by following us on LinkedIn.
Solar is on the rise in the U.S and is becoming more appealing to corporations and consumers every day. Energy corporations around the country are looking to find a more efficient and cost-effective way to produce renewable energy. As the cost of solar has dropped, the appeal of adding it to wind installation projects has grown. A western Minnesota wind-solar hybrid project is among the first of its kind in the country.
What is a Wind-Solar Hybrid Project?
By paring wind and solar projects on the same site, it can cut equipment costs while ramping up output. Hybrid projects give an opportunity to increase capacity because wind turbines operate at 50-55% capacity, while solar sits at 15% capacity. When combining the projects on the same site, the hybrid reaches 60 to 70% capacity. Combining wind and solar projects on the same site will reduce equipment costs and cost less than most transmission and generation providers.
Hybrid Project in Minnesota
Juhl Energy, GE Renewable Energy and Bank of America are partnering to begin an integrated solar-wind hybrid power generation project. This project will have a 2-megawatt turbine and 500-kilowatt solar installation and will use GE’s Wind Integrated Solar Energy technology platform. Lake Region CEO Tim Thompson said the project lowers costs to ratepayers and “gives us a local renewable energy source with the wind and solar production that will tie into the local distribution grid we already own.”
The Future of Wind-Solar Hybrid
Wind solar hybrid projects are predicted to increase 4% in the U.S., becoming a $1.5 billion global market. The founder of Juhl Energy wants to see larger hybrids of 5 MW of wind and 1 MW of solar. “Distributed and utility-scale hybrids will become more common,” Soholt said. “Wind and solar pair well together because solar produces during the day and wind is more of a nighttime source. And with storage you have a great project to offer utilities.”
How Intersect Can Help
Interested in investing in a solar power project, but not sure how to find opportunities? As a Distributed Energy System developer, Intersect Energy has the expertise and servicesyou need to find solar power opportunities and capital. Contact us today so we can help you get started with your solar power investment and make sure you keep up with the latest news in the world of renewable energy by following us on LinkedIn!
Solar is proving to be one of America’s fastest growing low-cost energy sources. On Thursday February 21, 2019, Pennsylvania lawmakers introduced bipartisan community solar legislation. Currently, there is only a small percentage of people in the state who acquire solar energy, and this legislation will expand access to affordable, clean energy for residents.
What is Community Solar?
Community solar is a solar plant where electricity is shared by more multiple community subscribers. This allows homeowners, renters and businesses in the community to share the benefits of solar panels even if they don’t want to install them on their own home or business. With community solar, you can purchase or lease a share in a community solar project, and every month you will receive a credit on your electricity bill by the energy that has been produced by your share.
Community Solar is Helping Pennsylvanians
Once this legislation is put into motion, it will make it easier for Pennsylvanian’s to go solar and it opens access to clean energy to all residents. This legislation will not only help the environment, but these solar projects will create new jobs for Pennsylvanians in the state’s new energy economy. Vote Solar studied and analyzed the economic benefits that this legislation would bring to Pennsylvania. They estimate this would increase solar jobs by 26%, including 1,053 full-time jobs in the first five years. It will also create $706 million in local economic benefits.
“Between the plummeting costs of solar over the last decade and pent up customer demand for access to clean energy, now is the perfect time to enact community solar legislation in Pennsylvania” said Jeff Cramer, executive director for the Coalition for Community Solar Access. “If passed, HB531 would provide families and businesses the opportunity to access all of the financial and environmental benefits solar provides rural and urban communities alike.”
The Solar Movement in the U.S.
There has been a growing demand for community solar across the United States. Pennsylvania is one of the many states across the country that are introducing legislation designed to enable the development of community solar projects. Nineteen states and the District of Columbia allow community solar programs and encourage growth through policy and programs, which have created thousands of jobs.
Community solar is a great way for the community to save money on energy while also helping the environment. Intersect Energy provides analysis, financing, and structuring of alternative energy solutions for your site with a goal of reducing the sites environmental impact while maximizing savings for the site owner. Contact us today so we can help you get started with your solar power investment and make sure you keep up with the latest news in the world of renewable energy by following us on LinkedIn!
Corporations have been adamant that they want renewable energy. Last year, corporations and government agencies broke records by signing contracts to buy 13.4 gigawatts of power, with 1 gigawatt being equivalent to 1 billion watts. To put this in perspective, this is similar to Nevada’s total generating capacity. Despite the wave of federal policies that had the potential to lower the demand for clean power, the U.S. made up 63 percent of global corporate renewable deals last year. The growth over the past year shows tremendous progress for renewable energy. Let’s take a deeper look at what is behind the boom.
Tech Giants are Going Green
Tech giants like Apple, AT&T, Google and Facebook are standing out as leaders in the field. They are paving the way for other corporations to ultimately pledge to achieve 100 percent of their power from renewables. When you hear a company like Google say, “We’re 100% renewable energy,” it usually means that they are buying as much clean, renewable energy as it is consuming unclean.
Facebook Inc. alone made deals on more than 2.6 gigawatts of clean energy just last year. This is three times that of the next highest corporate energy buyer, AT&T. Google announced early last year that they currently held contracts to purchase 3 gigawatts from renewable energy projects.
The Global Effort Towards Going Green
Communities, companies and nations have set clean-power targets in a global effort to stop climate change, which puts the need for renewable energy at an all-time high. Today the green boom is being driven by renewable energy. In most markets, wind and solar power is the cheapest source of electricity and renewable energy is increasingly competitive with fossil fuels. In fact, Exxon Mobil Corp. signed a clean-power deal last year for the Permian Basin, which is one of the fastest growing U.S. oil fields.
“It’s no longer a safe bet to assume that utilities are the biggest source of clean-energy demand,” Kyle Harrison, a New York-based analyst at BloombergNEF, said in an interview. “The sheer scale of renewable-energy purchases is unprecedented and only poised to grow.”
Make the Change
The world is turning towards renewable energy and corporations have made major progress in renewable energy growth. Now that big corporations are paving the way, it has and will continue to become more affordable for other corporations and small businesses.
If you are interested in joining the movement towards renewable energy, contact the team at Intersect Energy today! We provide analysis, financing, and structuring of alternative energy solutions for your site with a goal of reducing the site’s environmental impact while maximizing savings for you as the site owner. Contact us today to get started on your next renewable energy project. Make sure you keep up with the latest news in the world of renewable energy by following us on LinkedIn!
With solar on the rise in the U.S., corporations and institutions with huge energy bills have started to realize how much money they can save by switching to solar power. One area where we are seeing great growth is in schools.
In early December, the public schools in Arlington, Virginia decided to implement solar power into schools with a new solar-on-schools 25-year contract. The schools’ solar PV system will include 6,980 panels with a total capacity of 2.5 megawatts of power. Arlington Public Schools (APS) are leading the way for the solar movement and making it easier for neighboring school districts to follow the same path.
Implementing Solar in Schools
This is the largest solar contract in Northern Virginia. The solar power purchase agreement (PPA) will have no capital costs and will save the school district an estimated $4 million in operating costs over the 25-year contract. In addition to the savings, the solar PV arrays will be equipped with an Energy Dashboard, which will allow the students to learn about the impact of solar energy on the environment and in their community.
“This is an important step forward as part of APS’s long-term commitment to conserving energy and providing a cleaner environment for the future of our students,” said Dr. Patrick Murphy, Superintendent, APS. “In addition to substantial cost savings and environmental benefits at no upfront cost to APS, these solar projects provide incredible teaching and learning opportunities for our schools, allowing students to explore energy conservation in action.”
Growing Market for Solar Power
There is a growing market for solar power in the commercial sector due to the low prices and overall savings. Other school districts in the state may follow suit and shift to solar, as by doing this with other school districts they can increase their political influence.
At Intersect Energy, we have experience working with corporations, schools, non-profits, etc. Through our knowledge and expertise, we can provide you with turn-key energy solutions when it comes to your on-site alternative energy generation. Contact the experts at Intersect Energy today to request your consultation! Don’t forget to stay up-to-date with all the latest news in the renewable energy industry by following us on LinkedIn.
Although solar power is often thought of as a bespoke investment, recent trends are causing investors and sources of capital to fight for limited supplies of feasible solar power projects. What has led investors to battle for solar power? The Distributed Energy System experts at Intersect Energy have outlined the three reasons why so many are now fighting over solar power projects.
Increases in Tax Equity Markets
Despite the many tax reforms that have recently occurred, the market for tax equity has significantly increased since 2016. In fact, Michelle Davis, a senior analyst at Wood Mackenzie Renewables & Power, stated that: “There’s 40% more tax equity investors since 2016, margins for debt are compressing, and residual value is making up 50%+ of utility solar required returns”. Because of this, the solar power investment landscape is evolving and tax equity investors, lenders and sponsors are being impacted.
More Competition Means More Willingness to Invest
As solar power becomes increasingly popular, investors are beginning to broaden the types of projects in which they are willing to invest. Although the heavy hitters are still only targeting projects that are $25 million or more, small projects that are significantly less than that number are now being considered by more and more investors. However, there is currently more demand for projects than there is projects available for purchase.
Solar Power Success is Leading to Evolving Deal Structures
The P50 and P90 ratings (the levels of generation forecasted to exceed 50% or 90%) are showing high confidence in the success of solar power construction. This has led to a change when it comes to solar power purchasing structures, as project sponsors have more capital available to distribute among development. Also, less cash is being required for a down payment, making the investment less of a risk for investors.
Interested in investing in a solar power project, but not sure how to find opportunities? As a Distributed Energy System developer, Intersect Energy has the expertise and services you need to find solar power opportunities and capital. Contact us today so we can help you get started with your solar power investment and make sure you keep up with the latest news in the world of renewable energy by following us on LinkedIn!
Xi and Trump have agreed to a 90 day ceasefire on future tariffs in order to discuss significant structural changes to the trading relationship between the US and China. Currently, there is a 30% tariff on any imported solar panels, which equates to approximately $0.09/watt of an installation. For utility scale solar, this would be approximately 10% of the total installation cost of a solar project. This will significantly impact the solar industry’s ability to grow and doesn’t make clear sense given the number of jobs created from solar development in the United States.
Solar Manufacturing Capacity by the Numbers
The solar industry has two primary parts in order to produce electricity from the sun. The first is the actual PV panels, or photovoltaic panels. These panels capture the sun’s energy and convert it into electricity. These panels are almost exclusively made in China, with only a small amount (about 4% market share) being made in the United States. This can be seen in the current manufacturing capacity by country, with China being the single largest producer by a large margin. There are economic reasons why this is the case, primarily a labor cost issue, that will continue to create this imbalance.
Figure 1: 2017 Solar Photovoltaic Manufacturing Capacity
The other part that makes solar panels produce power are the electrical inverters. These inverters take the direct current (DC) output from the solar and invert it to Alternating Current (AC) output to the Grid. These inverters are a significant cost to every solar project and they are also technically difficult to make. The largest factor here is that the inverters die faster than the panels and thus need to be replaced more often. Paying slightly more for inverters makes sense upfront when you can have a product that lasts longer. Due to the complexity of this equipment, the industry generally buys these inverters from either the United States or Germany. There is a large emphasis in the United States for this due to the technical difficulty and electrical architectures being developed and manufactured here. China has recently opened several inverter companies, but they have not had a lot of success breaking into the developed world’s market due to concerns over their equipment’s longevity.
So essentially today, the solar industry has a natural economic equilibrium where China sells the PV panels to the world due to their low cost of labor and the United States/Germany sell the inverters to the world due to the complexity and intellectual prowess required to manufacture. Because PV panels last about 20 years and Inverters last about 7 years, the $0.10/watt inverter price becomes $0.30/watt price over the lifetime of the project, which equals the PV panel cost per project. The solar industry needs China’s cheaper panels to continue to expand, whereas the solar industry needs the technically superior US inverters to continue to expand. It is a very simple quid pro quo situation that the existing tariffs are impacting dramatically. Higher tariffs will accelerate China opening up inverter manufacturers and beginning to gain the intellectual abilities needed to manufacture these difficult pieces of equipment. Without the tariffs, we believe the US will continue to be a major manufacture of inverters for the foreseeable future.
In conclusion, the best outcome for the United States (jobs, domestic energy, reduction of carbon emissions, etc.), as the Trump Administration and Congress work with China on trade negotiations, will be not to increase and actually remove existing tariffs on solar equipment.