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Posts Tagged ‘California Solar Iniaitive’
Commercial Solar Thermal Still Growing, According to SEIA 3Q Report
Wednesday, December 14th, 2011 by Solar Fred

It’s not much, but SEIA and its partner, GTM Research, have included some very general solar water heating market information in its 3rd quarter executive summary.
Free Hot Water has talked to GTM researchers before about the lack of solar water heating data in their reports. They explain that there are two problems:
First, not enough solar installers are willing or able to give them enough data to create a report. So, if you’re a solar water heating installer or financier or manufacturer who’d like participate, please contact me at solarfred@freehotwater.com, and I will connect you with the person who collects data.
The second problem is a little more challenging. That is, it costs money to produce these reports, and despite the number of installers and solar thermal distributors and manufacturers in the U.S., few want to shell out the money for the full report.
As our CEO Paul Burrowes commented a few months ago at Intersolar, there’s little need for solar thermal install data. Why? Because there is such huge untapped potential. Every roof is a market opportunity, and, sadly, there are plenty of empty roofs in the U.S. that are ripe for solar heating and cooling.
Nevertheless, there is a lot of press around these reports, and it would benefit the U.S. solar thermal side to be included in those releases. But without data, that’s not going to happen. So, we hope, with your participation, that the industry can receive and process more data for these quarterly reports.
So, what third quarter data was in the latest 2011 3rd quarter executive summary?
It was only about three paragraphs, one of which was summary of previous data. Here’s a link to get the full executive summary.
In any case, the main points:
- Solar Thermal PPAs are growing for commercial solar projects.
- Massachusetts has a pilot project that is allowing $30,000 construction grants for commercial solar thermal.
- European and Chinese solar thermal manufacturers are increasingly showing up at solar trade shows, increasing competition, and….
- “The main competitor to SWH, however, is the price of natural gas. For as long as the price of natural gas remains low, it is difficult for many to see the long-term value in installing a system.” (A recent Free Hot Water blog post mentioned this insight too.)
So nothing really new here, but we do believe that the increase in solar thermal PPA financing will indeed make commercial solar thermal competitive for apartment buildings, multifamily homes, hotels, hospitals, etc, and beat low natural gas prices.
And when that happens more often, we look forward to more in-depth coverage about solar water heating in these quarterly reports.
Tags: California Solar Iniaitive, solar hot water, solar hot water for apartments, solar market reports, solar policies, solar thermal, solar thermal news, Solar Trade Shows, solar water heating for apartment buildings Posted in Restaurant Solar Hot Water, Solar Hot Water, Solar Hot Water for Apartment Buildings, solar hot water resources, Solar Hot Water Value, Solar Thermal & Solar Hot Water News, Solar Trade Shows | No Comments »
The 3 Differences Between Solar PV and Solar Thermal Success: Financing, Subsidies, and Artificially Low Gas Prices
Wednesday, November 30th, 2011 by Solar Fred
 
There is no dispute that solar PV has grown faster than solar thermal in the United States. Why? I think there are three basic reasons.
1) More and better financing for PV than solar thermal
Banks and venture capitalists have loved solar PV for quite some time, and the reason is that solar PV projects are profitable with solar power purchase agreements (PPAs).
Solar PPA’s for solar PV are a win-win. They provide low-upfront costs to the customer while also reducing energy costs. At the same time, banks and financiers are able to recoup profits over time by capturing all of the available solar incentives, plus charging the customer a discounted rate for the power that they consume.
What’s odd is that solar thermal applications have not attracted the same win-win attention from banks and finance people. Just as with solar PV, it’s possible to meter and measure solar hot water production and reduce the gas utility bills of large commercial applications, such as hotels, condos, apartment buildings, hospitals, laundromats, nursing homes, and so much more.
The bottom line is that bankers and other financiers need to become better informed about solar thermal applications, economics, and to develop more ways to finance projects.
2) More and better subsidies for PV than solar thermal
Clean solar energy is clean solar energy, and yet governments seem to be more amenable to subsidizing solar electric clean energy than solar water heating applications. If you run down the list of all of the subsidies available on the DSIRE database, you’ll find many more—and richer—solar PV subsidies than for solar thermal.
Once again, I think the reason behind this tilt against solar thermal is the lack of awareness and understanding from legislators about the benefits of solar thermal applications. From hot water and heat, to air conditioning, solar thermal installations could be saving consumers, businesses, and government facilities thousands of dollars over the system’s lifetime. In large installations, hundreds of thousands of dollars.
Environmentally, solar thermal can not only reduce our dependence on fossil fuels, but also decrease the currently trend in hydrofracking, a process that may not only damage the environment, but also contaminate drinking water.
The solar industry needs better solar thermal lobbyists. Lobbyists are a dirty word, I know, and yet, they are effective getting in front of legislators and explaining the benefits of solar.
3) Subsidized low gas prices
Subsidizing the exploration of natural gas and other fossil fuels are not helping any consumer or business to consider purchasing renewable solar PV or solar thermal.
It’s hypocritical for the Federal government to say that it wants to move the nation towards clean, renewable, non-polluting energy while encouraging the development of natural gas, enabling natural gas prices to remain artificially low. Meanwhile, utilities are raising their coal-fired electric rates between 3% and 5% a year, making solar PV increasingly competitive.
I’m not saying that gas won’t play a role in our nations near-term energy portfolio, but the sooner our legislators encourage more renewable solar alternatives by leveling the playing field and eliminating gas subsidies, the more solar jobs will be created, and of course, the more energy independent our country will be.
Once again, the solution is better solar thermal lobbying. Solar PV and wind companies all have policy people who are constantly talking to legislators. Solar thermal needs that same face-to-face representation.
Tags: California Solar Iniaitive, solar 30% Treasury Grant Program (TGP), solar hot water for apartments, solar hot water for laundromats, Solar Hot Water Monitoring, solar policies, solar politics, solar thermal, Solar Thermal/Solar Hot Water Posted in 30% Investment Tax Credit, Hotel Solar Hot Water, Residential Solar Hot Water, Restaurant Solar Hot Water, Solar 1603 Treasurty Grant Program (TGP), Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Hot Water Monitoring, Solar Thermal & Solar Hot Water News | 1 Comment »
New SEIA Poll: Nearly 75% Americans Say Solar Hot Water Good for Jobs and Growth
Sunday, October 23rd, 2011 by Solar Fred

Good news. Despite solar hot water getting less attention in the U.S., a new poll released by the Solar Energy Industry Association (SEIA) shows strong public support for solar water heating and agree that solar water heating helps the economy and create jobs.
The independent poll conducted by Gotham Research Group shows that 74% of Americans agree with the statement, “The growth of the solar water heating industry will produce jobs and help the American economy.”
Breaking down the support by region, 80% of Northeastern residents, 78% of Midwestern residents, 69% of Southern residents, and 73% of Western residents agree with the above statement.
It’s ironic that the South, which has abundant sun hours and heat, agreed less with the statement than those in the North East. The solution is more solar customer education, advocacy, and marketing throughout the U.S., but especially in the South.
The survey also revealed that the public has generally positive perceptions of solar water heating systems, with 48% having a positive response and 4% having a negative. The remaining 52% didn’t have enough information to have an opinion one way or the another.
Once again, this 52% figure indicates that the solar water heating industry must increase customer education and marketing if the industry is to grow as fast as solar PV.
Another indication of the education gap is the finding that 63% of respondents believe solar energy can be used to heat water, heat buildings, cool buildings, heat swimming pools, and produce electricity. It’s wonderful that there’s a majority that knows about solar thermal applications, but if this were a school exam, it would be a failing grade. We need to strive to get those figures to at least a “C” (75%) by the same time next year. The more customers are aware of solar benefits and economics, the more sales will increase for these applications.
As for support for overall solar subsidies, including solar PV, 29% of respondents agreed that the type of energy most deserving of U.S. government support was solar. In second place, 20% chose wind, and 18% chose natural gas. Oil came in at 16% and nuclear came in with only 8%. Finally, coal scraped the bottom of the subsidy opinion barrel with 5%.
While solar is at the top of this broad heap, once again, we need to increase that support through showing customers and policy makers how solar is now more cost effective than ever. Eventually, solar subsidies will have to go away, but for now, subsidies for fossil fuels need to be reduced or eliminated to level the playing field.
What about customer decision dynamics? Survey respondents said that they would either be “extremely likely” (6%), “very likely” (9%), or “somewhat likely” (31%) to consider installing a solar water heating system in their own home. That’s less than half of respondents who might consider solar hot water.
The reason? As usual, it comes down to cost. “The cost of purchasing the system” (72%) and “the cost of maintaining the system” (56%) are the top two concerns for residents in all regions and across key demographic/partisan groups.
In conclusion, there’s a majority of support for solar hot water in the U.S., but as an industry, we must do more to build awareness for solar hot water benefits for homes and large-scale commercial applications, such as laundry facilities, hotels, hospitals, nursing homes, apartment buildings, and restaurants.
The survey was conducted by phone from June 23rd through 26th, 2011 among a representative sample of 1,013 adults, 18+ living in private households in the continental United States. A detailed press release is available here.
Tags: California Solar Iniaitive, Solar Business Resources, Solar Hot Water News, solar marketing, Solar Rebates, solar water heating, solar water heating for apartment buildings Posted in Hotel Solar Hot Water, Residential Solar Hot Water, Restaurant Solar Hot Water, Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Tax Incentives, Solar Thermal & Solar Hot Water News | No Comments »
Solar Water Heating Is Hot in MA, HI, and AZ…. Not So Much in CA
Sunday, September 25th, 2011 by Solar Fred
The latest SEIA/GTM Research U.S. Solar Market Insight report is out, and it includes news about California, Massachusetts, Hawaii, Arizona, and Maryland. Here’s a summary of the report and a bit of our own perspective.
Arizona. Arizona’s solar hot water market remains quite strong, according to SEIA/GTM, with most utilities offering production incentives that can cover up to half of a system’s costs. Nice. SEIA’s report is projecting that Arizona will be a leading market by the end of 2011. We’re crossing our fingers for our Free Hot Water dealers in Arizona. Of course, if we can help with engineering or components, please let us know.
California. The up to $1,875 incentive for residential and $500,000 for commercial and multi-family structures are still available here in California, and that’s good and bad. It’s good because California solar hot water installers still have generous incentives to offer customers. On the negative side, the incentive availability also says that consumers and commercial customers are still hesitant about investing in solar hot water.
In our view, the CSI administrators and CALSEIA need to provide more consumer awareness and education for solar hot water. Free Hot Water is doing our best to get the word out, but we can’t do it alone.
Hawaii. The Hawaiian residential solar water heating market came back to life in Q1 2011 thanks to a residential solar thermal rebate of up to $1,500 per OG-300 system. And then… the rebate was subsequently reduced to $750 per system.  However, due to Hawaii being 100% dependent on imported fuel from the U.S. mainland, solar hot water still remains an attractive option for homeowners, so sales are still strong. Speaking of OG-300 systems, Free Hot Water has three new OG-300 lines with just-reduced prices, making solar hot water systems even more cost effective for Hawaiians and our partner installers there. He mea iki. (You’re welcome.)
Maryland. As Free Hot Water reported a few months ago, Maryland is now allowing solar water heating systems to generate SRECs (Solar Renewable Energy Certificates). However, only new systems installed after June 1, 2011 qualify. Second, only SRECs generated after January 1, 2012 are eligible.  SEIA’s analysts are saying that this policy won’t do a hell of a lot for Maryland’s solar water heating market, but they note that other Eastern states may follow Maryland’s lead, and that could grow the overall Eastern U.S. market significantly.
Massachusetts. In 2010, Massachusetts launched a pilot solar water heating rebate program with a generous $3,500 maximum rebate for a residential systems and up to $65,000 for commercial systems. Rebates are based on the number of collectors in the system and their SRCC ratings. (FYI, Free Hot Water’s SRCC ratings for our collectors are available in our online catalog.) We’re rooting for Massachusetts to continue and expand the program. The state has grown tremendously with solar PV installations, and we hope the state adds solar hot water to its aggressive cleantech growth.
That’s the latest update from SEIA/GTM Research. These updates come out quarterly and cover the entire solar industry. We’ll sum up the solar water heating side and add our own perspective as each report comes out. If you’d like to read the entire executive summary report, click SMI-Q2-2011-ES (pdf).
Tags: California Solar Iniaitive, maryland solar hot water, residential solar hot water, solar hot water rebates, solar market reports, solar water heating for homes, SRECS Posted in SRCC OG-300 solar systems | No Comments »
Free Hot Water’s Making News with Largest CSI Solar Thermal Install to Date
Thursday, May 19th, 2011 by Solar Fred
 A diagram of The Trade Winds Installation
Just wanted to share with our solar community about the news that Free Hot Water is about to start the largest solar water heating project under California’s new solar thermal rebate program. The Tradewinds, a lage condominium complex nestled in the heart of San Jose’s Blossom Valley, is a community of 320 residential units, approximately 80% of which are owner occupied.
How large is large? Well, the compound uses an average of 10,000 gallons of hot water per day for showers, laundry, dishwashers, and other residential hot water necessities. Heating water with solar energy rather than with natural gas will reduce the building’s water heating bills by as much as 60%.
Our engineering department at Free Hot Water designed a system that willl use a total of 183 commercial grade FHW7000 series solar hot water collectors that will be mounted on five tar and gravel roofs of the two story buildings in the Tradewinds complex. Additionally, our COO, Paul Burrowes, calculated that The Tradewinds will produce over 5 million BTU’s daily and save over 250,000 pounds of CO2 on an annual basis.
The Tradewinds will benefit from long-term cost and environmental savings–and also from the new California Solar Initiative (CSI) Thermal Program. The initial calculations for The Tradewinds show a CSI-T rebate value of approximately $186,240. That’s a lot off the top, but as a non-profit home owners association (HOA), the project would have saved even more from the 30% federal investment tax credit and other tax incentives that can be applied to for-profit building owners.
Free Hot Water couldn’t have done the project without the help of TBI Energy, the project manager, and Comfort Energy, the system installer and contractor of record. Breene Kerr, TBI Energy Project Director stated in our joint press release, “TBI Energy is excited to be a part of the largest solar thermal system yet installed under the CSI thermal program. This is a complex installation with three independent solar thermal systems serving hundreds of residents in five different buildings.  TBI Energy’s extensive construction management experience along with Free Hot Water’s proven products and technology gives us the confidence that this project will be successful.  California needs more installations like this one. We look forward to  providing a highly visible example of why solar thermal systems should become as common in this country as the are throughout the rest of the world.”
Comfort Energy’s president, Harry Abbot adds in the release, “It’s successful incentive programs California’s CSI program that make these large projects possible and help create more clean energy jobs for California’s present and future.”
We’re about to start installation and will post some blogs and photos of our progress. If you’re one of our partner installers in California, please let us know how we can help you benefit from the new CSI program.
P.S. Here’s the link to a news item in Builder Magzine about the project.
Tags: California Solar Iniaitive, solar hot water for apartments, Solar Hot Water News, Solar Rebates, Solar Thermal Economics Posted in Solar Hot Water for Apartment Buildings, Solar Hot Water News, Solar Rebates, Solar Thermal Economics | No Comments »
Highlights of the new California CSI Thermal Rebate Program
Sunday, October 24th, 2010 by Solar Fred
 CSI Thermal Rebate Cash - Get it While You Can
Earlier this year, the California Solar Initiative (CSI) carved out a new solar hot water rebate program for commercial and residential solar thermal installations
Since passage of the bill, there have been a number of revisions to the CSI thermal Handbook, which gives customers and solar businesses guidelines for qualifying for rebate.
Here are some guideline highlights:
- To qualify, you must be a customer of Pacific Gas and Electric (PG&E), Â California Center for Sustainable Energy (SDG&E territory), Southern California Gas Company (SCGC), or Southern California Edison.
- Incentives are available retroactively for systems installed after 7/15/09.
- Single family homes with gas water heaters can receive a maximum of $1,875 state rebate. Single-family residential with electric water heaters receive a little less –$1,250. (The state is encouraging you to switch to solar hot water with a gas back up, because electric water heating is very costly and inefficient.)
- Home systems must be OG-300 certified. Check out Free Hot Water’s wide variety of quality OG-300 systems for home owners.
- Commercial and apartment building systems that use natural gas can receive of up to $500,000.
- Commercial and apartment buildings using electricity will receive up to $250,000. (Again, California wants to encourage you to switch to solar with natural gas.)
- Systems must use solar hot water collectors that are OG-100 certified. Free Hot Water now has pre-packaged OG-100 systems that are ideal for restaurants, Laundromats, and small apartment buildings.
- For both commercial and residential systems, you will also be eligible for the Federal 30% tax credit, however the tax credit is calculated differently for commercial and residential systems.
- Solar pool heating systems DO NOT qualify for any Federal or State incentives. However, solar pool heating is a no-brainer and pays for itself fairly quickly. See Free Hot Water’s easy to install pool heating kits here.
- Solar thermal space heating; i.e., solar radiant heated floors or solar thermal air conditioning systems are also NOT eligible for the rebate or Federal tax credit. However, our Free Hot Water engineering team can still design these systems.
Finally, it should be noted that this incentive amount is extremely generous to early adopters who RSVP first…and then the amount decreases (“steps down” in increments ) as the number of systems are installed. Therefore, we sincerely recommend at least getting a free quote as soon possible. Couldn’t hurt and could save you hundreds–or thousands–of dollars. Honest.
More details of the CSI program and the entire handbook are available on this page. We will continue to sum up key parts of the new program in future blog posts. Send an email to solarfred@freehotwater to receive a monthly summary of our blog posts and other solar hot water other information.
Tags: California Solar Iniaitive Posted in Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Rebates, Solar Tax Incentives | No Comments »
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