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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.
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.
I’ve just returned from China, a country that is the solar thermal leader of the world, and yet, I personally found a lot less solar hot water in Shanghai than I thought I would.
Not only is China the world’s leading manufacturer of solar hot water systems, but it’s also a leading user of solar thermal systems. (In the U.S., we’re also leaders… but only in sales of solar pool systems… that are largely made in China.)
Despite China’s solar hot water leadership, solar hot water collectors were not as ubiquitous as I thought they’d be. Below is a photo outside my hotel room of several building roofs that would be ideal for solar hot water. While I don’t have other photos, this was all too common, given their reputation and perhaps my expectations. Of course, I was on a business trip and couldn’t inspect the roofs of all 22 million residents.
Lost solar thermal potential in Shanghai
When I did see solar hot water collectors, they were always evacuated tube systems. Almost all were installed on apartment buildings, but there were some commercial buildings too. (There are few single family homes in China –or private swimming pools.) Interestingly, there were very few collectors per building on many installations that I saw. At first, this didn’t make sense to me.
That is, instead of a row of 20 collectors or more on the apartment building roof, I would often see just one or two evacuated tube collectors ….right over selected penthouse apartments. Remember, these are 100 unit buildings or larger, so a few evacuated collectors would only serve a few units. Apparently, top floor condo owners or renters are able to use their roofs, legally or not, for their own solar hot water use.
Of course, a single city does not represent the entire country. In fact, I just found a video that met my high expectations for Chinese solar water heating dominance. You can use it on your own solar installer web site too.
Have you been to China and seen a lot of solar hot water systems installed? Please tell us about your experience in the comments section below. Thanks.
Photo: Flickr:/SteveCadman Solar Hot Water Apartment Building
Solar thermal systems have been around for over 100 years and remained a cost effective alternative to gas and electric bills around the world…. except the U.S. The bust and boom of solar incentives in the 1980′s decimated the U.S. solar hot water industry, but after 30 years, solar incentives are back…. at least for now.
Recently, a number of states have implemented solar hot water incentives for businesses, such as hotels, apartment buildings, restaurants, laundry mats, car washes, etc. Each state has its own policy and every business has different needs, so the net costs will vary. Use our solar thermal cost estimator to find out your costs, or check out a sample of commercial solar thermal rebates in these states, below.
Arizona: Commercial buildings are eligible for a 10% tax credit of up to $25,000 for one building, or an aggregate of $50,000 per customer in one year. The Phoenix based APS provides a performance based rebate, which can range between $0.051/kWh-equivalent and $0.07/kWh-equivalent, up to 50% of total system cost. Other utilities in Arizona have their solar water heating incentives, as well.
California: Natural gas heated commercial or multifamily buildings up to $500,000 towards the cost of a solar thermal system.
Hawaii: State rebates for commercial installations add up to $125 per deferred kW, plus $0.05/kWh for retrofits. In addition, businesses can receive a state tax credit of 35% of the actual cost or $250,000, whichever is less. Hawaii businesses also get a 100% real estate tax assessment exemption for the new solar hot water system. Your business may also qualify for specific utility rebates as well, such as Kaua’i Island Utility Cooperative (KIUC) which pays for 50% to 80% of equipment costs.
Florida: In Florida, commercial buildings and apartment buildings receive 15 per 1,000 BTU/day for solar hot water installations, up to $5,000. In addition, Florida has long exempt any sales tax for solar thermal systems.
Texas: Businesses get a 10% corporate tax deduction based on amortized cost. All Texan companies are also free of any property tax assessment from the new solar hot water equipment. In addition, each utility has their own rebate program.
Pennsylvania: Pennsylvania’s new Sunshine solar program provides businesses a rebate up to 25% of installed system cos, to a maximum rebate of $20,000.
Maryland: The Maryland Energy Administration (MEA) is giving mid-size commercial and industrial companies a solar hot water grant of 15% of installed cost up to $25,000. The solar thermal system must be at least 100 square feet in size. Businesses may also qualify for an additional state rebate of $2,000.
The Federal Government. Finally, in addition to all of the above, the U.S. government provides all businesses a 30% Federal Investment Tax Credit that is calculated before any state or local incentives, but subject to being taxed as income.
America is finally becoming serious about incentives for solar thermal systems for businesses. However, please keep in mind that these incentives are always subject to available funding. Sometimes utilities or states run out of rebate money due to high demand. Check with a local free hot water installer to find out what programs are currently available in your area.
Solar Fred loves it when utilities realize that the future is solar hot water and solar photo voltaics for homes and businesses. That’s why I’m glad to read that Valley Electric Association (VEA), a utility that straddles California and Nevada, is selling domestic solar hot water systems at face value to its residents. Read More.
Developers are also starting to realize that the future is hear now with solar hot water. Down in Orlando, Florida, many homes heat their pools and home hot water tanks through very expensive electric water heaters. Not so for this new home, which is the model of energy efficiency, including a solar thermal system. Read More.
I also love it when very old, traditional, institutions like Appleton Farms, one of the oldest continuously operating farms in the country, is saying that they can still be modern and energy efficient. As a result, they’ve applied for and received a grant from stimulus funds. Appleton will be using some of the money to install solar thermal hot water systems on the old farmstead. Good for you, Appleton. Oh, and by the way, this installation is another example that breaks the myth that you can’t install solar thermal hot water systems in cold climates like New England. Read More.
If you have any questions about solar hot water or solar thermal systems for your home or business, please contact us. You’re also welcome to use our solar calculator to give you an idea of how much a solar thermal hot water system will save you.
Okay, I’m a solar geek. Come on, my nickname is “Solar Fred.” But I was seriously thinking the other day that solar power is not only a great technology, but also a great metaphor for life, money, and happiness. For example:
1) Clouds and darkness are temporary. The sun still rises in the morning.
Bad weather can ruin daily solar production, but it never lasts. Same thing in life. When faced with a bad day or some set back, I take a step back and realize it’s temporary and move forward. Like the sun, good times do return.
2) Thinking long term pays off in the end.
If you’re going to buy a solar hot water system, it’s going to be an investment. People and businesses are often scared of that upfront payment, but it does pay off in spades. (Check our calculator.) Short term thinkers would rather spend extra money on a Lexus—a depreciating asset—instead of a Honda. I used to think that way too, but now I look at a solar system and I think long term. Investing in my 401k and enjoying life. There’s just less bling and more balanced goals for the future.
3) Solar power is about embracing change.
The default energy source in the world for the last few hundred years has been fossil fuels like coal and gas. Solar hot water and solar PV (and other renewables) are going to change that this decade. Politicians who try to slow down solar policies are fighting the future instead of embracing it. Similarly in life, whether it’s a job or relationship, stuff happens. Instead of fighting change, we need to look forward and not hold onto things that may not only be gone, but may also be unhealthy.
4) Even on cloudy days, you can count on the back up systems.
There are cloudy days when your solar water heating system doesn’t produce enough solar hot water, but no worries. Solar hot water systems are almost always backed up by conventional power for the less productive times. So too in life. Family and friends have always been there for me, and they’re often as automatic as solar back up systems.
5) Solar is inspiring, but you don’t have to go solar to make a positive difference.
I know. Our restaurant and apartment building customers mainly go solar because it makes financial sense thanks to the subsidies. But money aside, given a choice between polluting fossil fuels and solar, wouldn’t everyone choose clean, renewable solar? Outside of solar, there are many things we can do that are also good—though  inconvenient at first. Like not using plastic water bottles, or taking reusable bags to the grocery store. Yes, it’s a pain, but personally, I feel great when I do it, and so it’s becoming a habit.
I hope all of the above solar-inspired thoughts and habits become habits for the world as well. If you want to learn more about solar hot water, please feel free to ask us or become a fan and post a question on our new Facebook page.
Guilford College in North Carolina is going all solar… for hot water. The college will install 188 solar thermal collector panels and create 9,000 gallons of heated water a day. Way to go solar and save the college both money and add to its green reputation for sustainability. Read more.
Similarly, in New England, Bowdoin College in Maine has been awarded a $50,000 grant from the Maine Public Utilities Commission toward the installation of a solar hot water project for its Thorne Hall. The project includes 24 glazed flat plate solar collectors, which will make up a 960-square-foot solar thermal array, and the piping to solar storage tanks. Read more.
Nantucket residents are starting to install solar electric and solar hot water systems on the resort island. In 2008, the Historic District Commission approved 10 applications for solar panels and wind energy conversion systems, and even more in 2009. Read more.
Green celebrity, Ed Begly, jr, is giving some great tips about solar hot water, solar elctric (solar PV), and geothermal energy for your home, and more. He really lives what he talks about. Check out his interview. Read more.
Have any questions about solar hot water for your home, college, hotel, or apartment complex? Give a call or send an email to one of our solar experts.
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