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SLevy | May 20, 2013
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Master Limited Partnership Parity Act – What It’s All About

In the race to capture the economic benefits of the growing clean energy sector, the Master Limited Partnership Parity Act would provide an opportunity for U.S. businesses to mobilize private capital and better compete. It would provide the same tax treatment for investments in clean energy and fossil fuels . Sen. Chris Coons (D-DE) introduced the bipartisan bill today with original co-sponsors Jerry Moran (R-KS), Lisa Murkowski (R-AK), and Debbie Stabenow (D-MI). Congressmen Ted Poe (R-TX), Mike Thompson (D-CA), Peter Welch (D-VT), Chris Gibson (R-NY), and Cory Gardner (R-CO) co-sponsored companion legislation in the House.

“We applaud this bipartisan group of co-sponsors on the introduction of the Master Limited Partnership Parity Act,” says Phyllis Cuttino, director of Pew’s clean energy program. “Our research indicates that nations with consistent, transparent clean energy policies do better in attracting private investment.”

If approved by Congress, this tool could lower financing costs for clean energy projects, some by as much as 50 percent, according to Recycled Energy Development, a waste energy power producer. The market value of the master limited partnerships has grown to about $370 billion The bill is supported by clean energy businesses (PDF), labor and environmental groups, and policy organizations.
A master limited partnership is a business structure that has the tax advantages of a partnership but whose ownership equity can be traded as easily as public stock. Energy projects qualifying as a master limited partnership have access to low-cost capital and liquid investment opportunities as well as a relatively high rate of return for investors. Master limited partnerships have existed since 1981 and are available to investors in fossil-fuel extraction and pipeline projects.

By expanding the list of qualifying projects to include solar, wind, geothermal, and other clean energy and transmission technologies, renewable-power projects could access new financing markets, thereby increasing investment and deployment of these clean technologies.

original article

Category: Business / Economics, Call to Action, East Tennessee News, financing, Global, Grants and Incentives, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Tennessee, Training, West Tennessee News |
SLevy | May 17, 2013
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Returns on investing in solar has banks and investors funding distributed solar

SLevy: Distributed solar is disruptive to electric distributors, especially in regions with high power rates. Solar will accelerate installations, a fact that must be factored into the future business plans of our distributors here in the valley. To support this statement Edison Electric Institute recently published a report entitled “Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business.” TSEA offers distributors its services in understanding the impact and has suggestions towards solutions to avoid faced with unpleasant alternatives.

There were a record number of solar panels installed in the U.S. on rooftops and on ground-mounted systems in 2012. Now both traditional financing companies and new types of investors are starting to get in on the trend of providing the funds for the high upfront costs of installing solar panels, in exchange for making some money back several years down the road. But the potential to make money in this way has only just started.

Solar leases are a contract between the building owner and SolarCity, whereby SolarCity pays the upfront cost of installing the system, owns and maintains the panels, and the building owner pays for the monthly electricity for the power from the panels over around 20 years. As Ucilia noted on GigaOM Pro today, the residential solar leasing market alone is expected to grow from $1.3 billion in 2012 to $5.7 billion in 2016, according to GTM Research.

SunPower said earlier this month that demand for its residential solar leases is far greater than the money available to finance them.

It’s not just banks and corporate do-gooders that want the opportunity to make a decent return — some 10 to 12 percent in some cases. Crowd-funding is starting to appear as an interesting blip on the radar. Startup Solar Mosaic says that it’s now raised $1 million from its crowd-funders for its solar panel systems, which offer around a 4.5 percent annual yield.

original article

Category: Business / Economics, Call to Action, East Tennessee News, financing, Global, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Tennessee, Training, West Tennessee News |
SLevy | May 13, 2013
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Why is SunPower Doing So Well While Others Fail?

SLevy: Every solar investor wants to maximize its return on investment. In my judgement the reason for Sun Power’s success is they provide a product with the greatest return on investment over the long term. What I mean by long term is tens of years and beyond. Their panels produce the highest output power per area of any other manufacturer. We know that the life of the premiere monocrystalline panels is beyond 40 years. Using 40 years in computing the Levelized Cost of Energy results in more realistic results in cost per kilowatt-hour.

PV energy provider (PVEP) SunPower has revealed that demand exceeded its ability to supply product and services in the first quarter of this year.

The PVEP reported that it had exceeded revenue, gross margin and earnings forecast for the first quarter of 2013, while generating significant free cash flow of US$216 million, including lease financing, which was sold out in the quarter.

SunPower noted that due to several massive PV power plant projects in full swing in the US, strong demand for lease financing rooftop business in the US and ongoing PV module partnership success in Japan that was set to continue throughout the year, it was sold out for the year.
Management noted that its project development business was on course to provide US$3.5 billion in revenue and approximately US$1 billion in gross margin from 2013 through 2016.
Importantly, SunPower said that during the first quarter, the company was awarded 65MW of rooftop projects in France during a recent tender process, which had been supported by majority company owner, Total.

With demand increasing, SunPower said that it increased cell production in the quarter to 208MW, up 36% from the previous quarter. SunPower recognised 172MW of sales, while it shipped 186MW. Total module production capacity remained at 1.2GW. Full capacity was expected to be reached in the second half of the year.

original article

Category: Business / Economics, financing, Global, jobs, National, Political, Renewable Energy, Solar, Solar Performanc, Technology |
SLevy | May 10, 2013
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REAP funding of $70 million annually through fiscal-year 2018

Solar PV for farming

note from SLevy: At this moment TVA is no longer accepting applications for its Green Partners program for this year. The alternative for installers is to:
1. look for work out of state
2. look for niche applications which could include: agriculture, highway signs, corrosion protection, outdoor displays, medical equipment support, mobile emergency power support, military installations and developers who want to sell solar assisted homes without TVA support.

U.S. Sens. Al Franken, D-Minn., and Tom Harkin, D-Iowa, introduced energy legislation on Monday to be included in the 2013 Farm Bill.

According to Franken, the Rural Energy Investment Act will help farmers, ranchers and rural communities by encouraging the growth of agricultural energy technologies, including biofuels and renewable energies.

The proposal includes the Rural Energy for America Program (REAP), which Franken included in the 2012 Farm Bill that passed the Senate. Franken says the program helps agriculture producers and businesses in rural areas invest in energy efficiency and renewable energy projects so they can cut electricity bills and earn additional income by selling the energy they produce.

original article

Category: Business / Economics, Call to Action, East Tennessee News, financing, Global, Grants and Incentives, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Technology, Tennessee |
SLevy | April 29, 2013
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Many types of professions install solar systems

There is the belief that solar installations are limited to a few companies that only deal in solar. That is not the case as illustrated by the following article that describes the various occupations involved in solar construction.

The primary industry begins with solar contractors, and then branches out to electrical contractors and plumbing contractors. General contractors and roofing contractors are also involved in solar installations. Because solar PV is electrical and solar hot water is plumbing-related, the industry sees a lot of participation from plumbing and electrical contractors.
Solar contractors operate independently or in conjunction with other contractors, such as roofers. Every project is different, so who is involved depends on the size and scope of a project. A typical solar contractor can handle a small residential system from start to finish. A large utility-scale project may involve coordinating with a roofing manufacturer or general contractor.
Companies in this sector employ many electricians, but also plumbers, roofers and general construction labor. Given that every project has unique characteristics, every project requires a slightly different skill set. For photovoltaic, the main skill set is electrical. For larger scale projects, a need for steel or concrete professionals or roofers may present itself.The first step to any installation project is engineering, followed by permitting and procurement and installation.

the original article

With so many occupations associated with solar installations the job market is wider in scope than most people realize. Tennessee has enough sunlight to warrant adopting solar both for large farms and distributed solar within our communities. With the price for large installations at prices competing with fossil-fueled power generation, with the advantages of no fuel cost and the environmental benefits – what is stopping our national leaders from promoting this technology? That is a question that only they can answer.

Category: Business / Economics, Call to Action, East Tennessee News, financing, Global, Grants and Incentives, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Solar Thermal, Technology, Tennessee, Training, West Tennessee News |
SLevy | April 26, 2013
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Prices for Natural Gas are Going Up and New Drilling Goes Down

Electric Utilities May Be Disappointed with Gas Prices

Category: Business / Economics, Call to Action, financing, Global, National, Political, Tennessee |
SLevy | April 26, 2013
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More on Adding Renewables to the Master Limited Partnership Legislation: Will our Two Senators Support This Legislation?

Will Senators Alexander and Corker support adding renewables to federal legislation that will give solar the same tax benefits as oil, natural gas, pipelines? I ask all our readers to contact these two senators and advocate for the passage of this key piece of legislation.

The measure would let renewable-energy companies form master-limited partnerships (MLPs), giving them the ability to raise funds like a corporation and pay taxes as a partnership, according to a statement today from Senator Chris Coons, a Delaware Democrat. He introduced the bill with Michigan Senator Debbie Stabenow, a Democrat, and Republican Senators Lisa Murkowski of Alaska and Jerry Moran of Kansas.
MLPs have “helped the oil and natural gas industry deliver the abundant and affordable energy that powers our economy today,” Murkowski, the top Republican on the Senate Energy and Natural Resources Committee, said in the statement. “Through a small change in the tax code, this legislation will provide renewables with the same opportunity.”

The bill is similar to a prior version focused on renewable power generation and biofuels projects that was introduced last year and failed to pass. The re-introduced bill widens the scope of projects that would qualify to include energy-efficient buildings, waste heat-to-power systems, carbon capture and storage and biochemicals. The new bill was hailed by Rhone Resch, President and CEO of the Solar Energy Industries Association as “an important step toward leveling the playing field between clean, renewable energy and long-entrenched energy sources in America.”

The proposal is supported by at least one oil and gas group. Jack Gerard, president of the American Petroleum Institute, the industry’s main lobbying group, said MLPs would provide an incentive for private investors and help wean renewable energy producers from federal subsidies.

more
See Forbes article on this subject

Category: Business / Economics, Call to Action, East Tennessee News, financing, Grants and Incentives, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Technology, Tennessee, West Tennessee News |
SLevy | April 25, 2013
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Free Small Business Innovative Research Funding Workshop May 22, 2013

“Introduction to SBIR/STTR Funding” Workshop

Please see information below on SBIR workshops across Tennessee – May 20, 22, 23 2013. Registration links are provided. The workshops will be in Jackson, Knoxville and Johnson City.

Jackson Chamber May 20th from 8:30 am until 3:00 pm
197 Auditorium St
Jackson, TN 38301

Knoxville Entrepreneur Center May 22nd from 8:30 am til 3:30 pm
17 Market Square, Suite 101
Knoxville, TN 37902

ETSU Innovation Lab, Training Center May 23, 2013 from 8:30 am til 3:30 pm
2109 West Market Street
Johnson City, TN 37604

This workshop provides a thorough introduction to the SBIR/STTR programs and will highlight funding opportunities.

Mark Henry, founder of Grow Emerging Companies, LLC, will present this free workshop for local researchers & business partners interested in learning about SBIR/STTR funding opportunities. Registration is free & Lunch will be provided.

Seats Are Limited – Click Here To Register Today!

For more information, contact:
Michael Carroll, michael.carroll@knoxec.net | Katie Connell, katie.connell@knoxec.net
Jim Stefansic, jim@launchtn.org

For questions regarding registration, please contact Patty Wells at patricia.wells@tennessee.edu or (615) 253-6371

Category: Business / Economics, Call to Action, East Tennessee News, financing, Global, Grants and Incentives, jobs, National, Political, PV Tech Newscast, Renewable Energy, Solar, Technology, Tennessee, Training |
SLevy | April 24, 2013
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Robots Install Solar Panels Reduce Installation Costs

Automation Needed for Large Solar Farms


Companies such as PV Kraftwerker and Gehrlicher in Germany are developing mobile robots that can automatically install ground-mounted solar panels day and night, in all sorts of weather. PV Kraftwerker’s robot is designed to assemble power-plant-grade solar panels, which are four times the size of the ones you’d see on a home.

The main idea is to save money on labor, which accounts for a growing fraction of the cost of solar power as panels get cheaper. According to PV Kraftwerker, a construction firm specializing in solar parks, installations that used to require 35 workers can now be done with just three workers in an eighth the time.

For a 14-megawatt solar plant, the company estimates, it might cost about $2 million to install the panels manually. Using the robot could cut that cost by nearly half. The company says that the robot, which lists for $900,000, could pay for itself in less than a year of steady use.

PV Kraftwerker built its robot from off-the-shelf Japanese components. The machinery consists of a robotic arm mounted on an all-terrain vehicle with tanklike tracks. Suction cups grip the glass face of the solar panels and the arm swings them into place, guided by cameras that give the robot a three-dimensional view of the scene. See a video on an interview with PV Kraftwerker

So far, the PV Kraftwerker robot can only do one thing: lay panels on a metal frame that humans have already installed. Two people walking along beside the robot screw the panels to the frame and make electrical connections.

Yet robotic installation may become more common as other components get adapted to automation. PV Kraftwerker and other companies are also developing robots that, guided by GPS, can pound poles into the ground and then mount panels on them, eliminating the need for workers to install frames. Newer solar modules can be snapped or glued into position instead of being screwed in. Special plugs could even allow robots to make the electrical connections (see “New Solar Panel Designs Make Installation Cheaper”).

Original article

comment: The ‘sweet spot’ for solar PV today is large solar farms. Farms in the multi-megawatt size constructed on large ground based sites. Combined with pumped storage these power generators would be a dispatchable power source at a competitive cost with other non-polluting electric power generation. Automation is the key to reducing the overall cost. Robotic technology could really shrink the installation cost to a fraction of what it presently costs using existing installation methods.

Category: Business / Economics, Call to Action, East Tennessee News, Energy Storage, financing, Global, jobs, Middle Tennessee News, National, Political, Renewable Energy, Solar, Technology, Tennessee, Training, West Tennessee News |
SLevy | April 21, 2013
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Retail Electric Business Predicted to Loose Market Share

The Edison Electric Institute has issued a report predicting that there will be a change in the market share for retail electric business if the present trend towards distributed renewable energy continues at it’s rapidly changing mix of standard electric power production and the increasing percentage of renewable energy sources, particularly solar PV continues to evolve. The report dated January 2013 entitled “Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business” was authored by Peter Kind of Energy Infrastructure Advocates. The key premise is that the increasing inclusion of solar PV will reduce market share for the electric power industry which will lead to higher risk for investors. The result of a higher risk will be increased cost for borrowing money for the power industry. The report sites two similar industries that were drastically changed by market forces and regulatory changes: the airlines and the telephone (AT&T) industry. The report concludes that near term actions are to “institute a monthly customer service charge”, develop a tariff structure to reflect the cost of service and value provided to DER (solar PV) customers and to “analyze revision of net metering programs in all states so that self-generated DER (solar PV) sales to utilities are treated as supply-side purchases at a market-derived price.”

It is my suggestion that the industry adapt itself to incorporate solar PV in such a way as to improve its retail electric business position. My advice to the industry: constructively adapt renewables into your energy mix: it is not a curse but a blessing.

The full report is available on the web at: http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf

Category: Business / Economics, Call to Action, Energy Storage, financing, Global, Grants and Incentives, National, Political, Renewable Energy, Solar, Solar Performanc, Technology, Tennessee |
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