New U.S. Large-Scale Solar Shines and Wind Capacity Soars

By Solar Industry Magazine Solar additions to U.S. large-scale generating capacity were up by near 70 percent in the first half of the year over the same period last year, according to data from the U.S. Energy Information Administration (EIA).

While large-scale capacity additions in the first half of the year were 40 percent less than the capacity additions in the same period last year, the EIA reports that renewables capacity has soared. In addition to the aforementioned solar additions, the EIA reports that wind capacity in the first half of the year was more than double the level in the first half of 2013. Natural gas additions were down by about half.

A total of 4.35 GW of new large-scale generating capacity has come online during the first six months of the year, the EIA says. Natural gas plants, almost all combined-cycle plants*, made up more than half the additions, while solar panels contributed more than a quarter and wind plants around one-sixth. Source: U.S. EIA

Solar additions amounted to 1,146 MW, the EIA says. About three-quarters of this solar capacity was located in California, including the Topaz and Desert Sunlight Phase 1 and 2 photovoltaic plants and the Genesis solar thermal plant. Arizona, Nevada and Massachusetts made up most of the rest.

The EIA utility-scale report does not include solar capacity additions below 1 MW that are typically used in distributed power applications at residential and commercial sites.

Wind additions in the first half of the year amounted to 675 MW as compared with 329 MW added over the same period last year. Most of the additional wind capacity was concentrated in California, Nebraska, Michigan and Minnesota. California’s 228 MW of capacity additions came from the Alta Wind X and Alta Wind XI phases of the Alta Wind Energy Center.

Of the states, Florida added the most capacity with 1,210 MW – all of which came from natural gas combined-cycle plants. California came in second with just under 1,100 added, of which about 77 percent was solar and 21 percent was wind, with the remaining additions from natural gas and other sources. Utah and Texas combined for about 1,100 MW, nearly all of it natural gas combined-cycle capacity with some added solar and wind capacity in Texas. Source: U.S. EIA

*A combined-cycle power plant uses both a gas and a steam turbine together to produce up to 50 percent more electricity from the same fuel than a traditional simple-cycle plant. The waste heat from the gas turbine is routed to the nearby steam turbine, which generates extra power.

Buoyed by Business Deals, Solar Dominates New U.S. Cleantech Jobs

By Solar Industry Magazine

A new report from the nonprofit business group Environmental Entrepreneurs (E2) shows that more than 12,500 clean energy and clean transportation jobs were announced in the second quarter of this year (Q2’14) – more than double the number of jobs announced in the first quarter. Solar power generation led all sectors in Q2’14 with more than 5,300 jobs announced. The wind industry posted more than 2,700 jobs, many stemming from projects that qualified for the recently expired production tax credit.

On the next-generation transportation side, electric car manufacturers Tesla and General Motors announced new jobs.

According to E2, the jump in jobs took place despite mixed agenda signals on clean energy policies from Congress, but amidst new confidence about future clean energy growth tied to the recently announced federal Clean Power Plan that’s designed to cut carbon pollution and increase clean energy and energy efficiency.

“Businesses depend on market certainty and clean energy businesses are no different,” says Jonathan Foster, chief financial officer of Nexant, an energy software services company, and a director of E2’s northern California chapter. “What good policies do – whether it’s AB.32 in California or the new federal Clean Power Plan – is help create market certainty.”

AB.32 requires California to reduce its greenhouse gas emissions to 1990 levels by 2020. Passed in 2006, the legislation is considered one of the pillars of energy policy in the U.S. that has led to the propagation of renewable portfolio standards in general and the rise of solar power as a significant source of power generation – and jobs – in particular.

Announced by the U.S. Environmental Protection Agency in June, the Clean Power Plan will cut carbon pollution from power plants by 30 percent by 2030. Along the way, the policy is expected to drive growth in energy efficiency and renewable energy, creating hundreds of thousands of jobs and saving American businesses and consumers an estimated $37 billion in energy costs. According to E2’s new report, five solar companies announced significant hiring in the residential sector, expanding their existing workforce in the prime solar markets of Arizona, California, New York and Massachusetts. Each of these states has strong net-metering policies, E2 notes.

Arizona recorded the greatest number of announced jobs in the report. Solar Wind Energy Inc. announced it expects to hire at least 350 permanent jobs for a new project in San Luis, Arizona. This will come as welcome news for the solar sector in the state, which, according to a report from The Solar Foundation, took a hit on jobs last year due to layoffs after the completion of the Solana concentrating solar power plant.

California ranks second in the E2 report, thanks to announcements from the utility-scale solar industry and from 500 new jobs announced by Tesla Motors. Michigan placed third, with GM expected to add as many as 1,400 jobs producing advanced battery technologies.

Down the pike, the E2 report points to a number of developments that are likely to keep the new solar jobs coming. More than 1,000 new jobs are expected as an outgrowth of SolarCity’s $200 million acquisition of solar manufacturer Silevo. As part of the acquisition, SolarCity will build a 1 GW annual production capacity manufacturing in Buffalo, N.Y. About 800 new construction jobs are tied to Tenaska’s recently closed deal to build the Imperial Solar Energy Center West Project in Imperial County, California.

The top 10 for announced clean energy and clean transportation jobs in Q2’14 are as follows:

1. Arizona
2. California
3. Michigan
4. Utah
5. Massachusetts
6. New York
7. Nevada
8. New Mexico
9. North Dakota
10. North Carolina

For the full E2 jobs report, click here.

Solar Cell Upgrades Drive Greater PV Performance

By Solar Industry Magazine

Manufacturers of solar photovoltaic cells are increasing research and development (R&D) efforts to push cell efficiencies to record levels. According to a report from NPD Solarbuzz, the power rating of standard 60-cell multicrystalline modules is forecast to reach 275 W within the next 12 months. “The solar PV industry previously operated without a clear technology roadmap, which is no longer an option in the rapidly growing solar PV industry,” says Final Colville, vice president of NPD Solarbuzz. “Legacy over-capacity within the industry, combined with uncertainty arising from trade disputes, is now forcing cell manufacturers to improve manufacturing processes to attain record efficiencies.”

Modules based on crystalline silicon cells continue to be the dominant technology used for solar PV installations. During the second quarter of this year, 92 percent of solar module production was silicon based, with the remainder coming from thin-film technologies by First Solar and other suppliers.

Technology development in silicon-based PV modules was curtailed by dramatic price reductions and low margins caused by market oversupply that has only bottomed out this year. During 2011, 4 GW to 6 GW of new silicon cell capacity were added every quarter, mostly surplus to market requirements, NPD Solarbuzz says.

Cell manufacturers focused on reducing costs in 2012. New factories were put on hold and resources were devoted to improved existing processes. Efficiency increases for solar cells were achieved primarily due to the use of high quality multicrystalline silicon wafers that allowed standard 60-cell modules to reach 265 W without requiring additional manufacturing steps.

However, with supply and demand achieving a balance, silicon PV module manufacturers are again allocating capital for R&D and factory expansion. “To move existing silicon-based cell capacity further forward now requires new technologies to be implemented, which has the potential to drive solar manufacturing into the first widespread technology buy cycle seen within the industry,” Colville says.

According to the report, a leading candidate for efficiency enhancement today is the introduction of new advanced process stages during rear-side fabrication of silicon solar cells. Capacity upgrades have resulted in strong demand for new equipment in rear-side cell processing capable of producing passivated emitter and rear cell (PERC) modules.

The PERC upgrade alone has the potential to add 10 W to 60-cell multicrystalline modules and 15 W to monocrystalline versions, Colville says. If successfully implemented, this upgrade would push multicrystalline modules toward 275 W.

Are Solar Shingles Coming to a Rooftop Near You?

By Mark Del Franco, Solar Industry Magazine

In 2005, solar shingle technology burst onto the solar scene with lofty intentions. Advocates noted the technology would not only revamp photovoltaic solar installation, but transform traditional construction and building methods.

Also referred to as building integrated PV, solar shingle technology combines the performance and protection of a conventional asphalt roof with an integrated PV system. Additionally, because solar is embedded into the structure’s outer membrane, owners could still get the benefits of PV without rooftop racking costs, an area of substantial savings.

However, after nearly a decade, the revolution has not moved much beyond its earlier hype.

“The technology is still very new and the market still has on its training wheels,” says Matt Feinstein, senior analyst who leads solar research at Boston-based consultancy Lux Research.

For starter, Feinstein notes, the biggest challenge confronting solar shingles has been its inability to compete with rooftop solar, which is cheaper and more reliable. And because they are part of the building’s physical infrastructure, solar shingle technology must meet strict building codes – an added hurdle.

“If aesthetics are the only thing the technology has going for it, it’s probably going to fail,” Feinstein says.

Complicating matters, he says, is that there is no clear-cut market leader, as thin-film and crystalline silicon are competing head-to-head, like they do in the broader solar market.

According to the Solar Energy Industries Association (SEIA), crystalline silicon panels have higher electricity output per square meter (m2), but greater costs and design constraints. Thin-film materials generate less electricity per m2, but are less expensive and may be integrated more easily onto more surfaces, the association says.

Early entrants, such as the partnership of Solexel and Owens Corning, came into the space but succumbed to the challenges often encountered by start-ups. For example, a particular challenge was configuring existing solar balance-of-system technologies developed for mounted solar panels for shingle applications. Photo: tai viinikka/flickr

Currently, there are a few providers in the space, such as CertainTeed, SunPower and Dow Solar, a subsidiary of Midland, Mich.-based Dow Chemical.

In 2009, Dow developed the Powerhouse solar shingle, a photovoltaic solar panel in the form of a solar roofing shingle that can be integrated into rooftops with standard asphalt shingle materials. However, to ensure reliability, the company spent two years testing and certifying the product. By Oct. 2011, the product was available for the U.S. market.

The product is certified by UL and recognized by the International Code Council as an approved building material, says spokesperson Josh Wimble, adding that the solar shingles meet building code requirements for weather-durable roofing material.

“It’s commonly believed that solar shingles are only available in really limited regions, as they were when launched a few years ago, but we’ve expanded to 19 states and all Canadian provinces,” Wimble says.

He notes that pricing has also improved – although each roofer and builder sets the price for their purchasers, improvements in rates pass on to homeowners – while options like financing make the return on investment much more immediately tangible.

“The saving homeowners are generating through utility off-set will quickly begin to outweigh their financing payments,” Wimble says.

Like any emerging technology, providers of solar shingle technology will need to continue to improve the product if it is to truly compete with rooftop solar. Photo: Ben West/flickr

Still, Don Rodriguez, president of New Mexico-based developer Sparq Residential Solar, envisions brighter says for solar shingles.

“New construction would be the best bet for solar shingles to proliferate,” Rodriguez says.

Architects, builders, installers and the financial community will have to work together to make it happen, he says. The financial community and builders would have to accept the higher-cost shingles as viable roofing alternative. Banks would have to regard the shingles as an acceptable roof material. The constructions guys would have to be certified in some way for proper installation.

A tall order. Yet …

“Who knows,” Rodriguez says, considering. “There might be an application or opportunity out there no one has thought of that might make all the difference. “

States Dangle Property Tax Abatements to Draw New Solar Customers

By Mark Del Franco, Solar Industry Magazine

Several states are using property tax abatement programs to sweeten the deal for businesses and homeowners installing solar projects. In fact, 38 states currently offer some type of program aimed at property tax exemption for renewable energy.

According to the Solar Energy Industries Association (SEIA), an exemption typically excludes the added value created by the solar system to property valuations. In fact, the exemption makes it economically feasible for many. Homeowners, as an example, would not choose to install solar if faced with a property tax reassessment necessitated by the installation, notes the association.

“Markets are created when there are strong policies in place that encourage the use of solar energy, such as property tax exemptions,” says Ken Johnson, SEIA spokesperson. “When people choose to go solar, property tax exemptions prevent homeowners from being penalized with increased taxes.”

Such tax abatement programs come in many forms. For example, New Jersey exempts solar systems from local property taxes if the system is used to meet on-site electricity, heating, cooling or general energy needs. One tax exemption in Nevada allows businesses to apply for a property tax abatement of up to 55 percent – for up to 20 years – if solar power is generated on the property.

Given how the tax abatement programs can catalyze installations, some states, such as California, have extended existing programs. For example, in June, Gov. Jerry Brown signed legislation to extend the Solar Property Tax Exclusion until Jan. 1, 2025. As noted by SEIA, the extension of the exclusion does not take funs away from any jurisdictions where taxes are currently being collected, nor does it have an impact on California’s general fund. Further, the exclusion reduces wholesale solar electricity costs for utility customers while, at the same time, reducing barriers to accessing solar for customer-sited projects. That same month, the New York legislature approved a measure to extend a state property tax abatement program for renewable energy systems, including solar, wind and other energy systems until Jan. 1, 2025. The bill carries a 15-year property tax exemption for homeowners and residences installing qualified renewable energy systems. However, local governments are permitted to disallow the exemption in their jurisdictions.

The legislation comes at a time when New York’s solar industry is thriving, explains Samuel Scroggins, an associate at the law firm Foley & Lardner. In fact, the state installed nearly 69 MW of solar capacity in 2013 – ranking ninth among U.S. states.

If signed by Gov. Andrew Cuomo, D-N.Y., the bill will have a positive effect on New York’s residential solar market, explains Scroggins.

“Specifically, the bill will help mitigate the costs of installing solar electric generating systems on residential property,” he says. “Further, by strengthening the existing incentive program, New York will continue to make strides and bolster its reputation as one of the national leaders in the solar energy market.”

The bill is expected to reach Cuomo’s desk by the end of the year.