Sunday, September 21, 2014

UN Climate Change week in NY City- Time to Act is Now!

As we watch the natural disasters around the world and scramble to help the victims, the question arises about what to do to avoid this in future? Are our leaders ready to act and show the path?
The first step obviously is for people to accept that it is happening and worse scenarios may occur if we do not act now.

The world leaders are gathering in N Y City to discuss this next week. Let us hope that common sense prevails and the investments to cut Greenhouse Gas emissions are adopted by all participants. The impact of solar PV power development should not be ignored. Get the word out that solar PV costs have drastically come down and now you can make electrical power for the same cost as you spend with non-renewable energy. Availability of low interest financing over 10 years can make it happen for everyone. This is where the Green Revolving Loan funds offered through local banks can change the economics. The dream of Net-Zero energy can be realized by those who invests in the Solar PV systems in New York State.

New York State is trying to lead the way. This week it is possible that the Governor may announce grant awards under NY State solar initiatives to install Large Scale solar power systems. It will be a good example to see for international politicians coming to New York City for the UN Summit.

GO SOLAR New York!

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Thursday, August 14, 2014

Small Communities need solar power to come out of economic difficulties and become energy independent

Who need to reduce cost of government operations most? These are small communities at their debt limit and are not in a position or permitted by State laws to borrow capital dollars to build solar PV systems.

They have the opportunity to make their own power and pay off the debt from energy savings.
Their challenge is to raise the construction loan to build the system and long term low interest financing to pay ti back. The State and Federal Govt. has significant amount of pension funds that could be used to create a green funding mechanism to help such communities.

The federal USDA rural utility program may be able to help. Only time will tell as we watch the policies for Green project support.  Private capital looks for higher rate of return and larger dollar value projects which does not match with small community needs.

If this can be achieved then these communities can control their energy future and make solar power for the same price as they pay now. After 20 years the systems could be all paid and only O&M costs will remain for next 20 years when the power cost would be less that 6 cents per kWh as compared to Utility cost of over 20 cents /kWh. Energy independence by making same amount of power as they consume they will not be affected by future cost of energy. Fortunately this is possible as Government policy empowers the consumer to become solar power producer.

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Wednesday, February 19, 2014

Strategy for Faster Implementation of Solar PV projects in Sustainable Green Communities

An Year has gone by as we tried to find a way to help our small communities to find Energy Independence with Power Purchase Agreement (PPA) with a Private Developer who would finance, build and operate the solar PV system. 

This is a great  idea but with no risk comes the delays and uncertainties. Some of the host communities found out that Developer was unable to complete the projects in time due to weak financial support where the investor just backed off from the deal. What should the community do to assure faster and more assured implementation?

We are now following a two step procurement approach that can save money and get better outcome for all parties. It all starts with community education to first build the buy in and desire to go green and make your own power at a suitable site. Study of all of the municipality owned facilities energy consumption is necessary to estimate the current energy use and size the Solar PV system and a site with adequate electrical service to be able to supply excess power to the grid.

The second step is to present the opportunity to financing Companies and get a commitment from them as Proforma PPA based on a projected capital cost of the system. Once the terms of the power purchase agreements are executed then we issue a Request for Proposal to design and build the system from local developer -solar installers. These proposals are evaluated to select the contractor to submit the bid proposal to NYSERDA and get the grant commitment.The final PPA is executed after modifications to take into account the actual capital cost and grant amount. This approach takes away the need for solar PV installers to search for financing partner since the Owner makes this choice at the beginning of the project.

This market needs fast track and simpler process to cut costs and get best value for the communities. 

Go Solar Now. The process is now better and many communities now realize that this is the right thing to do.


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Saturday, February 01, 2014

Taming the Increasing Cost of Energy with Solar PV by Sustainable Communities

Municipal leaders in Upstate NY face challenges of increasing cost of operations and reducing tax base. Fewer tax payers need to support these cost increases. Energy is one of the operational cost elements that can now be reduced by conservation efforts. However as the unit cost of power goes up from 12 cents to 24 cents in next 20 years, what can be done at the present?

Fortunately the cost of Solar PV has come down significantly and Federal and State tax credits or grants help reduce the capital cost to make it affordable. These cost factors have created an opportunity to work with third party developers who can finance the project based on a long term power purchase agreement with the Municipality.

This concept of public private partnership offers a Win Win proposition where the cost of power can be fixed and depends on the level of risks taken by the investors. If the Municipality wishes to take zero risk then they would end up paying more for the cost of power sold to the Municipality.

Some communities can see the benefit of Solar Power and are willing to make some capital contribution as Advance payment toward future purchase of the system after the private party has taken all of the tax benefits including faster depreciation. At this time the system can be purchased at fair market value. Communities willing to invest about 20% of the capital cost at the beginning of the project are finding that they can bring the cost of electricity down to 6-8 cents now and expect to reduce it further to 5-6 cents per kwh after 10 years and lasting for another 25 years for the life of the solar PV system. This is a smart way to control the cost of power for a very long term with small investment at the beginning. Energy Independence is now possible and some leading communities are on their way to achieve it. This approach can make all of their public buildings achieve  Net-Zero electric energy goal.

Good financial planning and consideration of risks should be done as the communities develop a strategy for their energy future. What ever path you take, do start the process and join the fast growing solar power trend based on available incentives in New York.

Good Luck!

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Saturday, September 22, 2012

New York State planning 400% increase in Solar PV

A new chapter is about to begin in New York State as the Governor announced a new program of funding to help large energy consumers to install system of over 50,000 watts to net meter against their usage. Over 100 million will be available over next 12 months for those who are willing to make a commitment to pursue solar power for their communities or facilities.
On first review it looks too good to be true. Imagine a program where a third party can install Million of Dollars of equipment on your site under a power purchase agreement (PPA) and you pay same amount or less to them for 5-7 years. after this period, you own the system for $1.00 and keep free solar power for next 30 years. The facility becomes energy independent, ever one wins. Let us see how many people take advantage of this program.
We hope that Leaders of communities and large facilities will not miss the opportunity and bid their projects ( max. limit per project of $6,000,000 with min. 50% match).
Such programs help bring the cost of solar power down, and  make it possible to dream of energy independence for anyone that has land or roof area to install systems on their property. Sustainable green energy is the best long term solution for America.
Good Luck!

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Saturday, September 03, 2011

Message from my Grandson's Go Green photo

My son sent me a photo of our Grandson wearing a white shirt with " GO GREEN" message on the chest. It is a very cute photo with a very important message.
So what does it mean?
Is he telling us that in next 15- 20 years (as he grows) the world's environment would change significantly. Last two years events of extreme weather events are giving us some hints.
Is he asking us what have we done about dealing with Climate change? and what kind of world his Grandfathers generation is leaving for him?
The interpretation is really in our hands but demands action and not just talk. Hope that we will not disappoint him and his generation and leave for them a world full of possibilities and not despair.
The dream come true may include him living in " Net Zero" community, driving a Hydrogen car that exhausts water. Every home making power and recovering natural energy. Locally grown healthy food consumed that uses organic fertilizer made from food waste. Solar powered bikes that people use instead of cars for local commute.Harvested rain water reducing our water demand. Coal & Oil forgotten as fuel sources. Future generation may wonder how we got hooked to polluted fuels and sent Billion of Dollars outside the country rather than investing at home.
I can only pray that sanity prevails and politics allows common sense solutions to be implemented, as my Grandson grows to become an active participant of Green economy.
Good Luck!

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Thursday, September 30, 2010

Warmest ever 113 F in LA on September 28th?

I am not sure what non believers are saying when they hear about 113 F temperature in Los Angeles this week. Recently, in Pakistan land area of about 40% size was under flooded, Memphis was flooded last month. We have broken temperature records this year. What other proof do we need to recognize that Climate change or Global Warming is a serious threat to our lives. Future extreme weather events in many parts of the world are going to make more believers, but do we need disasters to convince us to take action?
Smart sustainable green communities should use the prevention approach and plan their water infrastructure to deal with excess rain. Educate people to harvest rain and build green roofs to deal with such events.

Loss of life and property damage caused by the mother natures water delivery system is significant and more likely than some terrorist threats. As the temperature and pressures change the clouds form with enormous quantities of moisture and transport it to a spot where it may be dumped in short period of time. It can happen anywhere and sometimes far away from those industrially developed lands which may be contributing toward creation of this problem.

It is time to recognize the connection between nature and man's actions, and take steps to correct the problem. Set goals for Energy Independence and design net zero buildings or retrofits. We can do it.

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