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Posts Tagged ‘solar water heating for apartment buildings’
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 »
Solar’s 1603 Treasury Grant Program – Will It Survive?
Monday, October 31st, 2011 by Solar Fred
 Cross your fingers for Solar's 1603 TGP
The 1603 Treasury Grant Program (TGP) is set to expire at the end of 2011, although it is still uncertain whether Congress will renew the program for another year or longer. Cross your fingers.
For those unfamiliar with the 1603 program, it is a law that was passed at the end of 2008 as part of the original economic stimulus bill. The 1603 provision essentially allowed commercial companies to receive a cash grant of 30% of the cost of a commercial solar PV or solar thermal system instead of the 30% Federal Investment Tax Credit (ITC) – also part of that law.
This cash grant was a huge help to large scale solar developers, who would normally leverage the 30% ITC to finance their solar projects. Keep in mind that a tax credit is like an IRS gift card: It can be used to pay one’s taxes or a portion of taxes. Profitable banks, venture capitalists, and tax equity investors loved these credits to offset their very large tax bills. However, with the economy struggling, there were relatively few tax equity partners who could actually use the tax credits. Instead, banks and investors wanted to hold on to their cash on hand.
Enter the 1603 cash grant, which re-opened the doors to large scale solar financing. Now, investors and developers could immediately recoup their 30% incentive in cash, rather wait to use the 30% ITC to pay their taxes—if they owed taxes. If the company owed no taxes, the 30% ITC was not refundable; rather, the unused balance could be used towards paying corporate taxes for up to 5 years.
The other advantage of the 1603 was that financiers could use the grant to help fund solar PPA and solar lease projects, making it easier for businesses to go solar with little to no upfront payment.
As expected, the 1603 is widely credited for the large scale and solar boom in recent years. A recent report from SEIA projects that with another extension of 1603 in 2012:
- An additional 37,000 jobs would be supported by the solar energy industry in 2012, a 12% increase over baseline.
- 18,000 will be directly employed by solar companies or indirectly employed by firms that support the solar industry.
- An additional 19,000 jobs would be induced by the industry’s economic activity.
Remember that 1603 is not just for solar PV. Developers of commercial solar hot water applications are also eligible for the grant. That means apartment building owners, restaurants, hotels, hospitals, laundry facilities, condominiums, private colleges, and other industries can utilize the program…at least until the end of the year.
So, will Congress act to extend the program? At this point, nothing is certain in the halls of Congress, but sources at SEIA tell Free Hot Water that they are “optimistic” that there will eventually be an extension.
The tricky part is packaging the 1603 extension with some type of bill that must be passed by both houses of Congress, such as a military spending bill or a general government funding bill. These bills don’t come along often, but they do come.
So, keep those fingers crossed that the 1603 gets into one of those bills sooner than later. Couldn’t hurt.
Tags: solar 30% Tax credit, solar 30% Treasury Grant Program (TGP), solar hot water incentives, solar hot water rebates, Solar Thermal/Solar Hot Water, solar water heating for apartment buildings Posted in 30% Investment Tax Credit, Hotel Solar Hot Water, Restaurant Solar Hot Water, Solar 1603 Treasurty Grant Program (TGP), Solar Business Resources, Solar Hot Water for Apartment Buildings, Solar Hot Water News, Solar Thermal & Solar Hot Water News, Solar Thermal Economics | No Comments »
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 »
Don’t Let Anyone Tell You that Solar Hot Water Doesn’t Work in Northern States
Thursday, September 23rd, 2010 by Solar Fred
One of the myths of solar hot water systems is that you need to be living in super hot climates for them to work, especially for commercial systems that need large amounts of heated water.
The fact is that solar hot water systems work just fine in colder, northern states. Let’s take Wisconsin and Washington D.C. These two areas aren’t exactly sunbathing Beach Blanket-Bingo weather during the winter months, so people assume that solar hot water isn’t going to work there.
Well, don’t tell that to the fire fighters in Madison, Wisconsin, who are using solar for heating water used for hot showers, laundry, and for washing down their gear after fires. In fact, this Wisconsin solar fire house is part of the greenest building in America as September 2010. You can read more about the building here.
And what about Washington D.C., home to last year’s record blizzards and snowfalls? Don’t forget that President Jimmy Carter installed solar panels on the White House (and then Reagan took them off for political reasons. )
But that was years ago. Surely, no one would think about putting solar hot water on a building there today, right? Wrong. Below is a very modern (2010) example of a small apartment building in Washington with our very own Free Hot Water 7000 series panels.
 Free Hot Water "Six-Pack" on Washington D.C. Apartment Building
Here’s the truth: Solar hot water/thermal systems work great in cold climates. It’s the same concept as when you leave your car in a sunny parking lot in January with the windows closed. The sun’s free energy bakes the air inside of the car. The same concept holds true for our solar hot water systems, only a solar collector works even better because of its design and the design of the installation.
Now, there is another truth, and that is that solar thermal systems do not work as well as those in warmer climates. That is, solar hot water works, but a D.C. installation is going to need more solar collectors to produce the same amount of annual hot water as an Arizona installation with the same hot water needs.
The other thing to be aware of is that regardless of the outside temperature or solar hot water production, modern solar systems are always connected to a conventional water heating system for back up. So, whether or not the sun is out or it’s raining on a particular day. you’ll never be without hot water,
So, if anyone in a cold climate tells you that solar hot water won’t work with their apartment building or fire house or hotel–or whatever–send them over to Free Hot Water. We’ll set them straight.
Tags: solar on the white house, Solar Thermal/Solar Hot Water, solar water heating for apartment buildings Posted in Solar Hot Water, Solar Hot Water for Apartment Buildings | 1 Comment »
Why are Apartment Buildings Missing Solar Hot Water Savings?
Sunday, June 20th, 2010 by Solar Fred
 Great view. But where's the solar?
If you look at a city skyline with all of the apartment buildings, you’ll see a lot of flat rooftops with nothing on them except a lot of sun, and that’s too bad.
It’s not a too bad that there’s a lot of sun, but that there are very few solar hot water panels collecting all of that sun and providing free hot water for all of those apartment units underneath that roof.
Let’s consider all of the hot water uses in an apartment building complex:
- Showers and bathtubs. Not only does each unit have a shower, but there’s often more than one person taking a shower or bath in each unit.
- Dishwashers and dish washing. If the apartment units have dishwashers, that’s another daily load, especially for apartment units that have couples and families. Even if there is no dishwasher, people will still often wash their dishes in hot water.
- Laundry machines. In some apartment complexes, there are community laundry rooms, while in other condominium apartments, each unit has a separate washer and dryer. Once again, apartments with families or couples are going to be heaviest hot water users.
- Pools and Jacuzzis. Many buildings have pools and Jacuzzis that are heated. That’s a lot of hot water in use, especially in warmer climates and/or in indoor pools, which may be in use all year round.
Every day, 365 days a year, condominium and apartment dwellers are using gas-fired or oil heated hot water for the above applications. These applications will never stop, nor will they get less expensive. Utility costs for gas and oil and electric hot water systems will only go up in the coming years, but there is good solar hot water news:
State incentives for solar are more generous than they’ve ever been before, especially in California. In addition, apartment building owners can take advantage of the 30% Federal Tax Credit and other tax benefits.
How much a solar hot water system costs for your condo building or apartment complex will depend on many factors, such as the number of residents and apartment units, not to mention the number of dish washers or other building hot water needs.
If you own or manage an apartment building in California or anywhere, don’t assume solar hot water is too expensive. Instead, contact us for a solar quote. It’s free, so the only thing you have to lose by getting an estimate is a bit of time.
At best, you’ll find out that you’re going to save a lot of money. At worst, you’ll have valuable cost information that you can use to benchmark yourself for the future.
Tags: solar water heating for apartment buildings Posted in Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Hot Water Value, Solar Tax Incentives | No Comments »
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