Skip to content

By Walter Borden

Its been well documented that solar network power generators held-up during hurricane Sandy in New York and New Jersey. This was true for PSG&E systems as well as those supplied by start-ups. As Walter Meyer of Power Rockaway Resilience pointed out:

“While gas generators sat idle without gasoline in Rockaway Beach, solar generators that David cobbled together have been producing power nonstop from the second they hit the ground. Like a renewable Hail Mary into the impact zone, these devices have already been clutch.” 

Microgrid Growth Across the US. Source: GTM Research

Microgrid Growth Across the US. Source: GTM Research

Now the state of New Jersey is taking steps to further assist the Solar and broader renewable energy industry to deploy in New Jersey. Renewable Energy reports:

“Increasing energy resilience, whether through the [ERB], the [state Board of Public Utilities (BPU)] approved resiliency improvement measures implemented by utility companies or NJ’s Clean Energy Program, will minimize the potential impacts of future widespread power outages due to major storms like Superstorm Sandy,” Dianne Solomon, president of the BPU, said in the statement.”

Noting that Sandy caused extensive damage to the state’s energy infrastructure, the BPU said that distributed energy resources, including combined heat and power, fuel cells and off-grid solar inverters with battery storage, allowed some critical facilities, including hospitals, to remain operational while the electric grid was down. Launching the ERB will allow more such facilities to remain operational during future outages.

Solar Microgrids continue to come online across the United States as well as across the world. Several factors drive their emergence: addressing carbon pollution, the need for uninterrupted power supply during severe weather and other crises, and the need for low-pollution, accesible power in remote areas. Diesel fuel after all must be shipped in.

Another popular feature in urban areas is the ability to sell spare power back to the grid. This is a feature consumers love but many utilities resist. And they are now on the march to charge distribution fees to consumers that generate power for the grid.

Nonetheless, many states are moving to scale back renewable energy support (curiously while leaving fossil fuel subsidy and policy support in place). So there is a long way to go for the U.S. to gain energy independence and ensure that our air and water supplies are safe for future generations.

 

By Walter Borden

Here at the midpoint of 2014, solar power technology continues its advance while its marketplace momentum builds. Economic policy and commercial efforts designed to induce commercial innovation must keep apace.  And there are pockets of progress in the political economics of deploying solar. Take for example this post from Clean Technica: “Solar Energy’s Quiet Invasion Into Professional Sports“. Or consider the Regional Greenhouse Gas Initiative (RGGI), a market-based regulatory program in the United States that reduces greenhouse gas emissions.

And in Germany, one of the world’s most important economies, phys.org reports, “The Fraunhofer ISE research institute has announced that Germany set a record high for solar use on June 9—on that day the country’s solar power output rose to 23.1 GW—50.6 percent of all electricity demand. The record occurred over a holiday, which meant less demand, but it still marks a major step forward for the world’s solar power leader.”

Key aspects of the report from our perspective:

  • Despite not having a generally sunny climate, Germany has been pushing solar energy, but not from the huge solar farms as seen in other countries. Other nations, like the United Kingdom, report the same.
  • The German government is on track to reduce greenhouse emissions from electric power generation from coal fired power plants while at the same time retiring its fleet of nuclear power plants (scheduled for closure by 2022).
  • The FRG aims for an energy mix of solar, wind and biomass; though solar has become the national leader according to most reports.

041514krugman1-blog480

Yet challenges remain, as phys.org also notes:

The move to solar has not been without its problems, of course. The government plans to lower or remove subsidies as soon as possible, and the demand for batteries to store all that home-grown electricity is outstripping supply causing a rise in prices. Also, it’s not clear what sort of role utilities will play going forward. Currently, many homeowners are reporting surplus energy production on sunny days which they sell to electric companies, which now find themselves having to store it for use during cloudy stretches.

There’s another problem though it’s not as obvious: the German government noted recently that almost seven million households in the country are living in energy poverty (defined as having to spend more than 10 percent of income on energy bills). The national energy program, Energiewende, has resulted in some transfer of wealth. Economists note that even with subsidies, it’s generally the wealthy and sometimes the middle class who can afford to put solar panels on top of their houses.  The poor continue to live off the grid paying taxes that provide the funds for the subsidies. There’s also some evidence that the country’s energy program is pushing energy costs higher overall, resulting in more electricity being produced by cheaper fossil fuels.

Energy poverty is also a problem in the US.  As states like Ohio abruptly suspend widely popular solar power policies, working poor, middle class families, and businesses see expenses rise. Manufacturers like Honda and Whirlpool joined consumers in opposing Ohio Governor Kasich’s executive order to freeze its program. Additional side-effects weigh on taxpayers.  As more coal is used public health suffers resulting in rising health care costs, and water treatment costs increase too which is also true of  fracking for natural gas. These costs are passed along disproportionately to small businesses hurting them as well as working families. continue reading…

We honor the sacrifice and dedication of the women and men of the United States Military. The Fund Balance team takes great reassurance from their collective recognition of the realities and risks for our shared peace, security, and prosperity posed by climate change. The US Military’s determination indicates the urgency for a steady, determined transition to green and renewable energy sources. Its organizational and technological expertise as comprised of active and former service members will play a singular and essential role in planetary deployment of renewable fuels.  Leadership in delivering renewable energy and power in the 21st century on mission-critical scales will help us all avoid economic, social, and ecologic entrapment by the carbon-intense fuels of the 20th. We urge our elected representatives to continue to support the United States Military in these efforts.

After a Marine company began using solar panels while deployed abroad, they reported that their diesel fuel usage dropped by a whopping 90 percent. Source: http://solar.calfinder.com/blog/solar-contractors/solar-power-saves-lives-taxpayer-dollars-on-the-battleground

After a Marine company began using solar panels while deployed abroad, they reported that their diesel fuel usage dropped by a whopping 90 percent. Source: http://solar.calfinder.com/blog/solar-contractors/solar-power-saves-lives-taxpayer-dollars-on-the-battleground

Screen Shot 2014-05-14 at 12.19.47 PM

By Walter Borden

There is a canon among many policy makers and their financial backers holding that essentially all regulations diminish prosperity. Yet, evidentiary support for it is sparse. For example, a recent study Aggregate Demand and State Level Employment published by the Federal Reserve Bank of San Francisco finds:

What explains the sharp decline in U.S. employment from 2007 to 2009? Why has employment remained stubbornly low? Survey data from the National Federation of Independent Businesses show that the decline in state-level employment is strongly correlated with the increase in the percentage of businesses complaining about lack of demand. While business concerns about government regulation and taxes also rose steadily from 2008 to 2011, there is no evidence that job losses were larger in states where businesses were more worried about these factors.

Why is it important to make note of failures to link regulatory action and weakened job markets? And, why so for a sustainable economics blog? Firstly, widespread adoption of this view has been  annointed with the great advantage of conventionality: policy makers can’t be evaluated per se as acting irresponsibly in terms of managing labor market health, or so-called job creation, when they have the same extreme hands-off bias towards regulation (particularly in the environmental category) as the industries they are meant to oversee. Hence real concerns of lack of oversight. continue reading…

By Walter Borden

Light Emitting Diode (LED) demand continued in the first Quarter of 2014. LED fab utilisation rates have improved to high levels and LED adoption is happening faster than many had expected. LED customers are also reporting increased market demand for LED backlighting products. Many leading customers are placing orders for capacity expansions. Across the industry Q1 was a significant improvement over the last quarter of 2013 with higher revenues, better margins, and falling operating costs. Our work with privately held early stage start-up firms echoes what we hear from publicly trading firms and their coverage by leading analysts.

  • We believe that higher LED consumer usage combined with new and lower cost products, cost reductions, and higher factory utilization will help increase LED usage in residential and commercial real estate.
  • Unfortunately, stock prices in the sector generally have increased much more rapidly than earnings so investors may want to wait for a dip before entering the public market for LED stocks.

A look at Phillips N.V. is instructive. The Dutch conglomerate has reported flat earnings and generally lackluster revenue growth in the Q1 of 2014 with one exception. At Lighting, while sales were flat on a comparable basis, LED-based sales climbed 37 percent, and now represent 33 percent of total Lighting sales for the Dutch conglomerate.

Notably, then,  Phillips had a flat quarter while its LED unit continued to outperform rising 37% in the first Quarter of 2014.

Screen Shot 2014-05-13 at 11.39.34 AM

Source: http://www.usa.lighting.philips.com/

Meanwhile LED and Solar Panel Manufacturer Veeco saw healthy increases in revenue, gross profit, operating and net income in Q1 2014. continue reading…

By Walter Borden

Solar power stocks have shone over the past year. After four years of decline the industry experienced vigorous growth in 2013. The first growth spurt in the early 2010′s was propelled in large part by European incentives which induced component and material shortage in 2007-2008. This pushed solar stocks to record  highs and to a subsequent bust the next year. The main driver for the market-wide collapse was significant state-level investments in China that led to a large surplus from output from some 500 Chinese companies that produce modules, wafers, and cells. The Chinese investments fostered an overcapacity in production, which hit the the majority of manufacturers in the space. Most non-Chinese manufacturers were then quickly eliminated from the industry. Weaker Chinese companies also fell to price pressures while other participants wanted out of the business. All the while, start-up manufacturers flooded the market with an ever lower priced inventory predictably spurring the aforementioned bust.

Solar Module Costs Q1 2014

Yet now the solar power industry is poised for another solid year in 2014. Many doubtful observers look to the expiration for tax credits in 2016 as the next great shake out for the solar industry. As the National Geographic Energy Blog explains:

Farther down the timeline but perhaps more ominous is the scheduled expiration of the federal investment tax credit (ITC) that solar enjoys. Implemented in 2006, the ITC can be worth as much as 30 percent of the cost of a project, large or small, and it’s due to expire at the end of 2016. The Obama administration’s 2015 fiscal year budget would replace the investment tax credit with a production tax credit at the end of 2016, meaning that a solar project would benefit only after it is built and producing power.  The production tax credit  “simply can’t address the upfront costs of fuel-free solar projects,” said the SEIA in a statement, “and we believe the Administration’s sudden, 180-degree shift in tax policy could have devastating consequences on the future development of solar energy in America.” continue reading…